European Central Bank v. Document Security Systems Incorporated (USA)

[2008] EWCA 192 (Civ), Case No. A3/2007/0879 (2008)

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European Central Bank v. Document Security Systems Incorporated (USA)

England and Wales Court of Appeal
[2008] EWCA 192 (Civ), Case No. A3/2007/0879 (2008)

Facts

Document Security Systems Inc. (DSS) (defendant), a United States company, held a European patent on a method of making banknotes that could not be replicated by a copying device. The European Central Bank (ECB) challenged the validity of the patent in various European courts, including the England and Wales High Court of Justice. DSS brought its own claim against the ECB, alleging that Euro banknotes were made by a process that infringed the patent. However, because proceedings concerning validity and infringement were bifurcated, the High Court ruled only on the patent’s validity. Although ECB alleged obviousness and anticipation, the court invalidated the patent on the ground of added matter (i.e., added subject matter). More specifically, the court found that a significant component of the invention—the effect produced of laying a grid over the original image—was present in the specification of the issued patent but not in the specification as it appeared in the patent application. DSS appealed to the England and Wales Court of Appeal, arguing that the grid effect was implicitly disclosed in the original specification.

Rule of Law

Issue

Holding and Reasoning (Jacob, J.)

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