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

89 F.4th 915
Court of Appeals for the Federal Circuit·Decided December 26, 2023·No. 22-2042·Published·Cited by 1 cases

Opinion

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 represented 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 represented by YU-CHIEH ERNEST HSIN, San Francisco, CA; CHRISTINE RANNEY, Denver, CO.

Before TARANTO, CLEVENGER, and STOLL, Circuit Judges.

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

TARANTO, Circuit Judge.

K-fee System GmbH owns U.S. Patent Nos. 10,858,176, 10,858,177, and 10,870,531, which all descend , via division and continuation, from a single application and share a specification. K-fee filed suit against Nespresso USA in the Central District of California alleging 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. Nespresso 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 construction 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 judgment of non-infringement, we reverse that grant as well and remand for further proceedings.

I

A

The asserted patents describe and claim coffee-machine 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 machines . ʼ176 patent, col. 1, lines 11–34, 60–62. The displayed information may also specify capsule-specific

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 comprising :

providing an apparatus including a barcode reader; inserting a first portion capsule into the apparatus , 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 including . . . 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 barcode reader; controlling a second production process of a second coffee beverage based upon the reading of the second barcode, the second 4 K-FEE SYSTEM GMBH v. NESPRESSO USA, INC.

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 Construction 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 Office ] 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 European patent, EP 3 023 362. K-fee was seeking to distinguish 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 prosecution 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.

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 “barcode ” 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,” Nespresso 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 capsules did not meet the “barcode” limitations of the claims, J.A. 2922. The district court, granting the motion, reiterated that bit codes using only two symbols could not be barcodes , 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 constructed of bars having variable widths, and therefore contains 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 Nespresso ’s accused products used a code having only two symbols 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. We have jurisdiction under 28 U.S.C. § 1295(a)(1).

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

II

We first address the proper construction of “barcode.”

Free access — add to your briefcase to read the full text and ask questions with AI

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

89 F.4th 915 (K-Fee System Gmbh v. Nespresso USA, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Utto Inc. v. Metrotech Corp.
119 F.4th 984 (Federal Circuit, 2024)