K-Fee System Gmbh v. Nespresso USA, Inc.

89 F.4th 915
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 26, 2023
Docket22-2042
StatusPublished
Cited by1 cases

This text of 89 F.4th 915 (K-Fee System Gmbh v. Nespresso USA, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
K-Fee System Gmbh v. Nespresso USA, Inc., 89 F.4th 915 (Fed. Cir. 2023).

Opinion

Case: 22-2042 Document: 61 Page: 1 Filed: 12/26/2023

United States Court of Appeals for the Federal Circuit ______________________

K-FEE SYSTEM GMBH, Plaintiff-Appellant

v.

NESPRESSO USA, INC., Defendant-Appellee ______________________

2022-2042 ______________________

Appeal from the United States District Court for the Central District of California in No. 2:21-cv-03402-GW- AGR, Judge George H. Wu. ______________________

Decided: December 26, 2023 ______________________

DOUGLAS H. CARSTEN, McDermott Will & Emery LLP, Irvine, CA, argued for plaintiff-appellant. Also repre- sented by KATHERINE M. PAPPAS; IAN BARNETT BROOKS, ADAM WILLIAM BURROWBRIDGE, Washington, DC.

WAYNE M. BARSKY, Gibson, Dunn & Crutcher LLP, Los Angeles, CA, argued for defendant-appellee. Also repre- sented by YU-CHIEH ERNEST HSIN, San Francisco, CA; CHRISTINE RANNEY, Denver, CO. ______________________

Before TARANTO, CLEVENGER, and STOLL, Circuit Judges. Case: 22-2042 Document: 61 Page: 2 Filed: 12/26/2023

TARANTO, Circuit Judge. K-fee System GmbH owns U.S. Patent Nos. 10,858,176, 10,858,177, and 10,870,531, which all de- scend, via division and continuation, from a single applica- tion and share a specification. K-fee filed suit against Nespresso USA in the Central District of California alleg- ing infringement of the three patents. The district court issued a claim-construction order in which it construed, among other terms, “barcode,” a term present in every claim of the asserted patents. K-fee Systems GmbH v. Nes- presso USA, Inc., No. 2:21-cv-03402, 2022 WL 2826443, at *5 (C.D. Cal. March 10, 2022) (Claim Construction Order). Nespresso then filed a motion for summary judgment of non-infringement, arguing that its products did not meet the “barcode” claim limitations under the court’s construc- tion and thus it did not infringe any asserted claims. The district court agreed and granted Nespresso’s motion for summary judgment. K-fee Systems GmbH v. Nespresso USA, Inc., No. 2:21-cv-03402, 2022 WL 2826441, at *1 (C.D. Cal. June 17, 2022) (Summary Judgment Opinion). After final judgment was entered, K-fee appealed. We agree with K-fee that the district court erred in construing “barcode,” and we reverse the district court’s construction. Because the erroneous construction of “barcode” was also the basis for the district court’s grant of summary judg- ment of non-infringement, we reverse that grant as well and remand for further proceedings. I A The asserted patents describe and claim coffee-ma- chine portion capsules that display information that, when read by a device associated with the coffee machine, can prevent the capsules from being used in incompatible ma- chines. ʼ176 patent, col. 1, lines 11–34, 60–62. The dis- played information may also specify capsule-specific Case: 22-2042 Document: 61 Page: 3 Filed: 12/26/2023

K-FEE SYSTEM GMBH v. NESPRESSO USA, INC. 3

brewing parameters, such as temperature and amount of water. ʼ176 patent, col. 3, lines 23–27. Critically for this appeal, the patents implement this concept by encoding the information in a “barcode.” ʼ176 patent, col. 8, line 54–55, col. 12, line 67, through col. 13, line 2. Claim 1 of the ʼ176 patent is representative for the purposes of this appeal and reads, in relevant part: 1. A method of making a coffee beverage compris- ing: providing an apparatus including a bar- code reader; inserting a first portion capsule into the ap- paratus, the first portion capsule including . . . an opposing bottom side with a first barcode located on the bottom side, . . . ; reading the first barcode with the barcode reader; controlling a production process of a first coffee beverage based upon the reading of the first barcode; ... inserting a second portion capsule into the apparatus, the second portion capsule in- cluding . . . an opposing bottom side with a second barcode located on the bottom side and being different from the first barcode, ...; reading the second barcode with the bar- code reader; controlling a second production process of a second coffee beverage based upon the reading of the second barcode, the second Case: 22-2042 Document: 61 Page: 4 Filed: 12/26/2023

production process being different than the first production process; .... ʼ176 patent, col. 12, line 52 through col. 13, line 41. B In its claim-construction order, the district court noted that “the parties agree that plain and ordinary meaning applies, but dispute what that meaning is.” Claim Con- struction Order, at *5. The district court characterized the core of the dispute as “whether statements made by K-fee System GmbH . . . before the EPO [European Patent Of- fice] concerning the meaning of ‘barcode’ should influence the plain and ordinary meaning of that limitation in these proceedings.” Id., at *6. K-fee, through its patent attorney, made the statements in a motion asking the EPO to deny an opposition filed by Nespresso’s foreign affiliate, Nestec S.A., that challenged the validity of K-fee’s related Euro- pean patent, EP 3 023 362. K-fee was seeking to distin- guish a particular piece of prior art, WO 2011/141532 A1 (Jarisch, referred to in the EPO as D1). Id., at *7; see J.A. 1101–25. 1 The district court concluded that “the EPO pros- ecution records . . . were provided to the PTO” by K-fee when it was prosecuting what became its ’176 patent in the U.S. Patent and Trademark Office, and the district court therefore analyzed them as part of the intrinsic record. Claim Construction Order, at *6. The district court concluded that K-fee had “argued strenuously” before the EPO for a particular “plain and

1 Along with the legal submission, K-fee filed an expert

declaration by Ralf Jesse. J.A. 1156–61. The district court, in its rulings on appeal, did not rely on that declaration— which, we note, would not alter our conclusion about the proper claim construction. Case: 22-2042 Document: 61 Page: 5 Filed: 12/26/2023

K-FEE SYSTEM GMBH v. NESPRESSO USA, INC. 5

ordinary meaning,” which excluded “bit codes”—codes made up of two binary symbols. Id., at *8. Based on the EPO submission by K-fee, the district court construed “bar- code” to have its plain and ordinary meaning (i.e., a code having bars of variable width, which includes the lines and gaps), the scope of which is understood by the clear and unequivocal statements K-fee made to the EPO (i.e., the scope of barcode does not include the type of bit code disclosed in Jarisch/D1). Id. The district court did “not resort to extrinsic evidence to construe th[e] term.” Id. Based on that claim construction of “barcode,” Nes- presso moved for summary judgment of non-infringement of its accused products. Nespresso primarily argued that the capsules of its accused products operated identically to the Jarisch capsules that K-fee had distinguished before the EPO in that both used a machine-readable code having only two binary symbols, J.A. 2914, so that the accused cap- sules did not meet the “barcode” limitations of the claims, J.A. 2922. The district court, granting the motion, reiter- ated that bit codes using only two symbols could not be bar- codes, placing particular weight on K-fee’s statement to the EPO that Jarisch “discloses a ‘bit code,’ but not a barcode, because the barcode—as shown above—is always con- structed of bars having variable widths, and therefore con- tains more than only two binary symbols, such as ‘0’ and ‘1.’” J.A.1111, Summary Judgment Opinion, at *2, *7. The district court found that there was no dispute that Nes- presso’s accused products used a code having only two sym- bols and concluded that Nespresso therefore did not infringe. Summary Judgment Opinion, at *7, *9. The district court entered final judgment on June 28, 2022, dismissing K-fee’s invalidity counterclaims without prejudice. K-fee timely appealed on July 14, 2022.

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Bluebook (online)
89 F.4th 915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/k-fee-system-gmbh-v-nespresso-usa-inc-cafc-2023.