Federal Circuit Clarifies Scope of Pre-America Invents Act On-Sale Bar in Crown Packaging Decision
Highlights
The Federal Circuit revisited the conditions under which prior commercial offers for sale can invalidate a patent
Application of the on-sale bar requires a fact-intensive inquiry into an alleged commercial offer for sale within a proposed transaction
The geographic limitation of the pre-AIA on-sale bar focuses on where the offer is directed, not where the product is intended to be used
On Dec. 10, 2024, the U.S. Court of Appeals for the Federal Circuit issued a precedential decision in Crown Packaging Technology, Inc. v. Belvac Production Machinery, Inc. reversing a district court’s ruling by finding that a pre-critical date agreement triggered pre-America Invents Act (AIA) U.S.C. Section 102(b)’s on-sale bar. Specifically, the court held that a “quotation” letter with all the hallmarks of a commercial offer to sell could trigger the on-sale bar and clarified that the pre-AIA Section 102(b)’s “in this country” limitation pertains to the location of the offer, not the product’s eventual destination.
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