Document: 127 S. Ct. 1746 (2007) MICROSOFT CORPORATION, Petitioner, v. AT & T CORP. No. 05-1056. Supreme Court of United States. Argued February 21, 2007. Decided April 30, *1750 Theodore B. Olson, for petitioner. Daryl Joseffer, the States as amicus curiae, by special leave Court, supporting Seth P. Waxman, respondent. T. Andrew Culbert, Microsoft Corporation, Redmond, WA, Dale M. Heist, Woodcock Washburn LLP, Philadelphia, PA, Counsel Record, Miguel A. Estrada, Mark Perry, Matthew D. McGill, Amir C. Tayrani, Gibson, Dunn Crutcher Washington, D.C., Petitioner. Lawrence J. Lafaro, Thomas Restaino, AT&T Corp., Bedminster, NJ, William G. McElwain, Jonathan E. Nuechterlein, Fleming, Wilmer Cutler Pickering Hale and Dorr DC, Brief Respondent. Justice GINSBURG delivered opinion except to footnote 14. It is general rule under patent law that no infringement occurs when a patented product made sold in another country. There an exception. Section 271(f) Patent Act, adopted 1984, provides does occur one "supplies... from States," "combination" abroad, invention's "components." 35 U.S.C. ß 271(f)(1). This case concerns applicability computer software first sent foreign manufacturer on master disk, or electronic transmission, then copied recipient installation computers abroad. holds apparatus digitally encoding compressing recorded speech. Microsoft's Windows operating system, it conceded, has potential infringe T's patent, because incorporates code that, installed, enables process speech manner claimed patent. bears emphasis, however, uninstalled not any more than standing alone does; instead, infringed only loaded with thereby rendered capable performing processor. The question before us: Does liability extend country *1751 abroad disk transmission dispatched States? Our answer "No." sends never installed foreign-made question. Instead, copies are used installation. Because export actually "suppl[y] ... States" "components" relevant computers, therefore liable currently written. Plausible arguments can be against extending conduct charged this infringing Recognizing exception our apply extraterritorially, we resist giving language which Congress cast expansive interpretation. decision leaves Congress' informed judgment adjustment deems necessary proper. I some years ago Deepsouth Packing Co. Laitram 406 U.S. 518, 92 1700, 32 L. Ed. 2d 273 (1972), about shrimp deveining machine, led enact 271(f). In case, Laitram, holder time-and-expense-saving sued Deepsouth, deveiner. conceded Act barred making selling its machine States, but sought salvage portion business: Nothing law, urged, stopped parts deveiner, opposed itself, those buyers assembly use Id., at 522-524, 1700.[1] We agreed. Interpreting written, reiterated was "not make outside States." 527, 1700; see 271(a) (1970 ed.) ("[W]hoever without authority makes, uses sells invention, within during term therefor, infringes patent."). Deepsouth's did Laitram's held, they assembled machines concluded, could inducing contributing infringement. U.S., 526-527, 1700.[2] Nor held direct infringer, make, sell, inventionÄîthe fully machineÄîwithin were themselves patented, noted, hence parts, unassembled, rank *1752 527-529, 1700. had argued resistance extension privilege cover exported "derived too narrow technical interpretation [Patent Act]." 529, Rejecting argument, referred prior decisions holding "a combination protects operable whole manufacture parts." 528, codification said, signaled intention broaden scope privilege. 530, 1700 ("When, here, Constitution permissive, sign how far chosen go come Congress."). And again emphasized "[o]ur system makes claim extraterritorial effect; these acts do not, intended to, operate beyond limits States; correspondingly reject claims others such control over markets." 531, (quoting Brown Duchesne, 19 How. 183, 195, 15 595 (1857)). Absent clear congressional indication intent," stated, courts warrant stop sale inventions 532, Focusing attention enacted See Law Amendments 101, 98 Stat. 3383; Fisch Allen, Application Domestic Exported Software: 271(f), 25 U. Pa. Int'l Econ. 557, 565 (2004) ("Congress specifically response Court's Deepsouth").[3] provision expands definition include supplying components: "(1) Whoever supplies causes supplied all substantial components where uncombined part, actively induce would if occurred shall infringer. "(2) component invention especially adapted staple article commodity commerce suitable noninfringing use, knowing so intending will combined infringer." II designed, authored, tested headquarters. *1753 end users manufacturers, both domestic. Purchasing manufacturers install onto sell. each version Windows, either via encrypted transmission. generate copies. Those copies, Microsoft, manufacturer's computers. Once complete, App. Pet. Cert. 45a-46a.[4] ('580 patent) (as computer) parties agree, contains '580 2001, filed suit District Southern New York, charging domestic installations Windows. Neither (e.g., box shelf) nor (i.e., installed) Infringement computer, rendering stipulated installing own development process, directly patent.[5] further acknowledged licensing induced patent.[6]Id., 42a; Petitioner 3-4; Respondent 9, 19. denied, based disks transmissions thus joining issue By sending contended, "supplie[d]... processor; accordingly, supra, 1752-1753 (reproducing text 271(f)). responded unincorporated software, intangible information, cannot typed "component" event, foreign-generated "supplie[d] . responses, 71 U.S.P.Q. (BNA) 1118 (S.D.N.Y. 2004). On appeal, divided panel Appeals Federal Circuit affirmed. 414 F.3d 1366 (2005). granted certiorari, 549 ___, 467, 166 333 (2006), now reverse. III A poses two questions: First, when, what form, qualify 271(f)? Second, *1754 involved "supplie[d]" "from States"?[7] As question, litigation argues disagree, stage becomes component. Software, "set instructions, known code, directs perform specified functions operations," Fantasy Sports Properties, Inc. Sportsline.com, Inc., 287 1108, (C.A.Fed.2002), conceptualized (at least) ways. One speak abstract: instructions detached medium. (An analogy: notes Beethoven's Ninth Symphony.) alternatively envision tangible "copy" encoded medium CD-ROM. (Sheet music Ninth.) abstract, simply particular copy qualifies argue component.[8] significance diverse views apparent turn second question: Were States"? If persuasively components, though generated requires attach.[9] If, other hand, abstract 271(f)'s compass, matter working computers.[10] With explanation relationship between questions view, consider twin inquiries. *1755 B become construe terms "in accordance [their] ordinary natural meaning." FDIC Meyer, 510 471, 476, 114 996, 308 (1994). applies supply "components components." 271(f)(1) (emphasis added). "such components"[11] form "patented invention" issue. here speech-processing computer. Until expressed computer-readable "copy," e.g., CD-ROM, softwareÄîindeed activating mediumÄîremains uncombinable. inserted into CD-ROM drive downloaded Internet; executed Abstract idea physical embodiment, such, match categorization: amenable "combination." abstracted doubt informationÄîa detailed set instructionsÄîand might compared blueprint (or anything containing design schematic, template, prototype). may contain precise construction device, itself combinable device. amici suggest otherwise. Cf. Pellegrini Analog Devices, 375 1113, 1117-1119 (C.A.Fed.2004) (transmission production chips covered urges least machine-readable object distinguishable information presented blueprint. unlike blueprint, "modular"; stand-alone developed marketed "for many different types hardware conjunction software." 5; Tr. Oral Arg. 46. Software's modularity persists even after installation; updated removed (deleted) affecting installed. Ibid. also "dynamic." After device been built according blueprint's work done puts it, have "exhausted," ibid.). contrast, contained continuously performed 27-28; Eolas Technologies 399 1325, 1339 (C.A.Fed.2005) ("[S]oftware drives functional nucleus finished product." Imagexpo, L.L.C. 299 F. Supp. 550, 553 (E.D.Va.2003))). distinctions advanced persuade us characterize uncoupled medium, Blueprints too, matter, independently developed, bought, sold. point argument blueprints lining stores' shelves, same observation What retailers *1756 consumers buy, software. Likewise, deleted, actual, must means interfacing computer.[12] easy encode software's read intimates, extra step should play decisive role But renders usable, part computer; copy-producing essential. Moreover, tools easily inexpensively sprockets produce tens thousands hour. That devices incorporated, understanding "component." Congress, course, included example, "information, readily generated." not. sum, 271(f).[13] C next involved? Under conventional reading text, "No," places majority `components,' act copying subsumed `supplying.'" F.3d, 1370. observed, differs exact easily, inexpensively, swiftly master; "sending single intent replicated invokes th[e] copies." Ibid.; cf. post, 1762-1763 (STEVENS, J., dissenting) ("[A] equivalent warehouse expects incorporated foreign-manufactured computers."). Judge Rader, dissenting, noted "supplying" ordinarily understood mean activity separate distinct subsequent "copying, replicating, reproducingÄîin effect manufacturing." 1372-1373 (internal quotation marks omitted); id., 1373 ("[C]opying *1757 consequencesÄîparticularly `supplying' D¸sseldorf Tokyo. logic, hundred ...."). He observed: "The true difference [of inventions] easier transport." 1374. nothing Rader maintained, ease relevant, less decisive, factor triggering ibid. agree. prohibits formulation, very thereof, trigger Here, repeatedly 1750-1751, 1752-1753, States.[14] Indeed, exist until third States.[15] Copying indeed inexpensive. said items: "Keys chemical biological substances created reproduction; paper products printing." Amicus Curiae 24. 1755-1756 (rejecting similarly construing "component"). instruction gauge duplication cheap enough deem fact nevertheless absence addressing statutory weighs judicial determination replication "supplies" intendment 271(f).[16] *1758 D Any falls compass resolved presumption extraterritoriality, already touched. 1752. governs domestically world force law. traditional "operate[s] d[oes] activities," 559, embedded confers exclusive rights 154(a)(1) (patentee's manufacture, "throughout importation "into States"). ("Our effect"; legislation "d[oes] [was] Brown, How., 595)). principle application, moreover, stated "assume legislators take account legitimate sovereign interests nations write American laws." Hoffmann-La Roche Ltd. Empagran A., 542 155, 164, 124 2359, 159 226 (2004); EEOC Arabian Oil Co., 499 244, 248, 111 1227, 113 274 (1991). Thus, accurately conveyed case: "Foreign [generally] domain law," area involved, particular, "may embody policy judgments relative inventors, competitors, public inventions." 28. Applied tugs strongly encompass render duplicates inapplicable reach certain explained, "the defeated... just [a statute] addresses [an] application," Smith 507 197, 204, 1178, 122 548 (1993); remains instructive determining extent Empagran, 161-162, 164-165, 2359; Smith, 1178. alternately contends sway given terms, conduct, i.e., reading, "converts *1759 springboard time subsequently [abroad] [abroad.]" 29; 1373, 1375 (Rader, dissenting). short, alone, countries. desires prevent countries, remedy today lies obtaining enforcing patents. 1700.[17] IV creates "loophole" makers. Liability avoided, practice shows, arranged circumvention: Instead small cost, generating them found plea compelling: "Were hold exportation versions reg; softwareÄî purpose replicationÄîavoids infringement, subverting remedial nature permitting avoidance statute ignoring advances field technologyÄîand associated industry practicesÄîthat enactment 271(f).... remain effective, interpreted appropriate technology issue." 1371. While majority's concern understandable, persuaded dynamic order. "loophole," judgment, properly left consider, close finds action warranted. dispute, note again, toolsÄîblueprints, schematics, templates, prototypesÄîall provide required construct combine overseas 1755-1756. license attribute unstated place category. gap revealed decision. 1752, n. 3. facts undeniably fore hopper. items kits physical, assemblable (not instructions), them) buyers. Having attended evident address arguable gaps: identify *1760 facilitates check "suppl[ying]... materials needed abroad.[18] Given home loophole describes, view expanded thrust entails, precedent leads court patent-protective seeks. Sony Corp. America Universal City Studios, 464 417, 431, 104 774, 78 574 (1984) ("In like this, plainly marked circumspect legislative contemplated calculus interests."). doubtless aware (and media) copied, untouched. 1998, addressed pirates distribute copyrightable digital form." Corley, 429, 435 (C.A.2 2001). resulting measure, Digital Millennium Copyright 17 1201 et seq., "backed legal sanctions efforts copyright owners protect their works piracy behind walls encryption codes password protections." 435. adjusted better "to realities distribution," 1370, alteration focused consideration, Judiciary forecasting likely disposition. * For reasons Reversed. THE CHIEF JUSTICE took consideration case. ALITO, whom THOMAS BREYER join, concurring agree "component[s]" separately conclusion through somewhat reasoning. Computer programmers typically programs "human readable" programming language. "`source code'" generally converted "machine readable code" language" binary format. 5, 1 (citing R. White, How Computers Work 87, 94 (8th ed.2006)); Walters, Essential Guide Computing 204-205 (2001). During writing program exists magnetic tape fields computers' hard drives. *1761 144-145; 54-55. When finishes encodes CD-ROMs "`golden masters'" code. 31, ∂ 4. engraving specific way engravings, understand mean, drive. 4, 2. ships transmission) placed purposes program. 31-32, ∂∂ 5-8. No aspect CD-ROMÄîoriginal copyÄîis ever itself. Stenograph Bossard Assocs., 144 96, 100 (C.A.D.C.1998) (noting context "installation results `copying'"); 144-145, 172-173. intact discarded computer's implementation code.[*] violate present 42a, 5. whether deveiner personal something physical. Ante, 1754-1756. word "component," concerning most naturally Webster's Third International Dictionary 466 (1976) (component "constituent part: INGREDIENT"); Random House English Language 301 (1967) part; constituent"). Furthermore, "combined" meaning any. Webster's, 452 (combine join union"; one"; unite compound"); House, 293 bring union whole"). reasons, build template 1754-1755. inventor carries out constitute executes commandsÄîgiven codeÄîthat allow carry process. Such execute installation, because, original (such CD-ROM) *1762 originating eventually completed, engravings remained unchanged 2 Work, 172-173). record became occurrence contrary workings there violation Accordingly, irrelevant originated To sure, run inserting keeping drive, here. incarnation logically follows reason, opinion, STEVENS, dissenting. acknowledges, "[p]lausible patent." 1751. Strong considerations, buttressed application markets, support Corporation's position. am, affirmance Appeals' faithful reversal. Paragraph (1) sufficient overrule Deepsouth,[*] paragraph (2) best supports position provides: "Whoever *1763 271(f)(2). provision, specially designed knife 271(f)(2) inventory knives warehoused complete machine. item knife. Both think ante, 1755. inscribed find difficult why important ingredient componentsÄîcomponents Put differently: individual seems me indirect likewise disagree suggestion analogous regarded Whether attached satisfies dictionary word. 1755, 11 (observing "`[c]omponent' commonly defined `a constituent part,' `element,' `ingredient' "). merely instructs user something, occur. roller player piano sound sheet tells pianist do. surely use" contrary, sole use. affirm Appeals. NOTES [1] shipped equipment customers three boxes, 1æton machines, yet hour." 524, (1972). [2] 271(b) ("Whoever induces infringer."); 271(c) (rendering contributory infringer anyone who imports "knowing non-infringing use"). [3] also, S.Rep. 98-663, pp. 2-3 (describing 1972 final abroad"); Section-by-Section Analysis H.R. 6286, 130 Cong. Rec. 28069 ("This proposal responds need solution [the] law."). [4] distributes indirectly, authorized "replicator"; replicator manufacturers. 45a-46a. [5] uses, offers [6] infringer."). [7] unclear invokes. differences (f)(2), see, infra, 1760, 18, outcome determinative. 1757-1758, 16 (explaining paragraphs yield result). clarity's sake, focus analysis [8] stress count component, "object code." "Software written humans called `source code.' functional, `compiled') machine-usable version," sequence number 1; 1118, 1119, 2004 WL 406640 (S.D.N.Y.2004) (recounting description process). [9] serve basis liability, manufacturers' (encompassing "combin[ed] [10] relying court's 1325 (2005), unable determine, panels [11] "Component" part," "element," "ingredient." (1981). [12] dissent, embracing "unlike occur." Post, 1763 emphasized, "caus[e] occur"Äîi.e., function computerÄîonly copy. Abstracted usable copy, intangible, uncombinable head composer sound." [13] method instance, (a express opinion), well. us, thing. [14] footnote, suggests give rise 37, 11; 1761-1762 (ALITO, concurring). [15] dissent analogizes machine." 1761. underscored, masters involved. apt analogy, therefore, "warehoused Without stretching composed, entirely fit [16] analysis, while focusing 271(f)(1), equally applicable 1762 (asserting "paragraph here"). differ, among things, quantity attach, distinction affect analysis. (2), (1), covers 271(f)(2); 1754-1756 component). encompasses "[s]uppl[y] [a] component" "be 1756-1757 page unsurprising suggesting (2). [17] secured patents processor Canada, France, Germany, Great Britain, Japan, Sweden. 04-1285 (CA Fed.), p. 1477. relate protections remedies are, available regimes. 46 "foreign sometimes weaker counterparts" added)). [18] does, respect, past Deepsouth. "all of" components. "especially use." [*] sense, akin author living existence printing press, story his mind, wrote manuscript, scrivener, hand blank book.

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