Source: https://www.robinskaplan.com/resources/articles/are-you-ready-for-patenting-pfaff-and-the-new-on-sale-bar-test
Timestamp: 2019-04-18 15:35:29+00:00

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The United States Supreme Court's recent decision in Pfaff v. Wells Elec., Inc.(1) has clarified what an alleged patent infringer must prove to challenge the validity of a patent under 35 U.S.C. section 102(b). The Court abolished the Federal Circuit Court of Appeals' ambiguous "substantially complete" standard for determining whether an invention was on-sale and replaced it with a "ready for patenting" test. In addition, the Court rejected petitioner Pfaff's argument that only reduction to practice should trigger the start of the on-sale bar period in order to provide certainty to inventors. Instead, drawings or other descriptions that are detailed enough to enable one skilled in the art to practice the invention -- even without reducing the invention to practice -- can invalidate a patent if the invention was offered for sale more than one year before application for a patent.
In recent decisions, the Federal Circuit had been wavering from its original 1987 pronouncement in UMC that it is not necessary to show a reduction to practice of the claimed invention to establish an on-sale bar under 35 U.S.C. § 102(b). Within the past few years, the Federal Circuit has applied no less than three different tests to determine when an invention is on sale. In Seal-Flex,(17) the Federal Circuit criticized the "substantially complete" test as "unworkable" and instead required proof that the invention was "complete." Nevertheless, the Federal Circuit in Micro Chem, Inc. v. Great Plains Chem. Co., Inc.(18) applied the "substantially complete" test. Finally in Pfaff v. Wells Elec., Inc.,(19) the Federal Circuit limited the "substantially complete" test by reviving UMC's holding that a reduction to practice was not required. Such inconsistency by the Federal Circuit called for the Supreme Court to step in and enunciate a single test.
Whether the "ready for patenting" test will prove more certain than the "substantially complete" test is debatable. Nevertheless, the new test will undoubtedly be frequently invoked by alleged infringers, since the Court explicitly rejected drawing a bright line in determining when there is an "invention" under § 102(b) based on a reduction to practice.(39) The Court acknowledged that such evidence is often determinative that there is an "invention" ready for patenting.(40) However, it is more likely that the battleground will move from determining whether the invention was "substantially complete" to determining when the inventor's drawings or descriptions of the inventions were ready to be patented by satisfying the enablement requirement.
By rejecting a reduction to practice bright line test, the Court emphasized the policy of preventing an inventor from commercially exploiting the invention more than one year before the inventor applies for a patent, and unfairly extending the period of protection, over an inventor's concern of knowing exactly when the on-sale bar is triggered. Inventors, patent attorneys and plaintiff's attorneys will have to evaluate thoroughly whether any description of the invention, such as drawings, lab notebooks, dictations, computer models, or even an oral presentation at a conference or trade show (whether or not it included handouts or slides), would enable one skilled in the art to practice the invention.
Implicit in the Court's holding is the contention that simpler inventions need not be reduced to practice if the descriptions enable one skilled in the art to reduce the invention to practice. Complex inventions that require testing to determine whether they will actually work for their intended purpose usually must be reduced to practice. In addition, inventions where durability is a requirement of the invention will likely have to be reduced to practice and tested. However, simple inventions that can be understood by those skilled in the art simply from a drawing or other description may be more susceptible to a section 102(b) challenge.
Finally, the Court's opinion leaves open the possibility of using other tests to determine whether there is a complete invention before the critical date.(41) Savvy defense attorneys will argue for other ways in which the "ready for patenting" test can be applied to show that there was a complete invention offered for sale. For example, an alleged patent infringer could argue that an oral presentation of an invention to colleagues at a trade show, particularly of a simple invention, was enough to enable those skilled in the art to practice the invention, thereby triggering the start of the on-sale bar. Other innovative arguments are sure to follow.
1. ___ U.S. ___, 119 S. Ct. 304 (1998).
2. 35 U.S.C. section 102(b).
3. 35 U.S.C. section 282.
4. See Mas-Hamilton Group v. LaGard, Inc., 156 F.3d 1206, 1216 (Fed. Cir. 1998).
5. See Ferag AG v. Quipp, Inc., 45 F.3d 1562, 1566 (Fed. Cir. 1995).
7. 523 F.2d 288, 302 (2d Cir. 1975).
9. 816 F.2d 647 (Fed. Cir. 1987).
11. Id at 657; See also Seal-Flex,Inc. v. Athletic Track and Court Constr., 98 F.3d 1318 (Fed. Cir. 1996). 12. Id.
13. See Kolmes v. World Fibers Corp., 107 F.3d 1534 (Fed. Cir. 1997).
14. See Manville Sales v. Paramount Sys., 917 F.2d 544 (Fed. Cir. 1990).
15. See Petrolite Corp. v. Baker Hughes Inc., 96 F.3d 1423, 1426-27 (Fed. Cir. 1996); Seal-Flex, 98 F.3d at 1323.
16. See, e.g., Seal-Flex, 98 F.3d at 1322-24 (testing of durability in all weather conditions required for inventor's all-season running track); Kolmes, 107 F.3d at 1534; Manville Sales, 917 F.2d at 551; City of Elizabeth v. American Nicholson Pavement Co., 97 U.S. 126 (1887).
17. 98 F.3d at 1322.
18. 103 F.3d 1538, 1545 (Fed. Cir. 1997).
19. 124 F.3d 1429, 1434-35 (Fed. Cir. 1997).
20. Pfaff, ___ U.S. ___, 119 S. Ct. at 307.
35. Id. at 311, n.11.
37. Id. at 312 (citing Judge Learned Hand's opinion in Metallizing Eng'g Co. v. Kenyon Bearing & Auto Parts Co., 153 F.2d 516, 520 (2d Cir. 1946) ("[I]t is a condition upon an inventor's right to a patent that he shall not exploit his discovery competitively after it is ready for patenting. . . .").
39. Pfaff, 119 S. Ct. at 309-10.

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