Fuji Photo Film Co., Ltd. v. International Trade Commission

474 F.3d 1281 (2007)

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Fuji Photo Film Co., Ltd. v. International Trade Commission

United States Court of Appeals for the Federal Circuit
474 F.3d 1281 (2007)

JL

Facts

Fuji Photo Film Co., Ltd. (plaintiff) sold disposable one-time use cameras known as lens-fitted film packages (LFFPs). A consumer purchases the camera, takes photographs, and turns the camera in to a film processor. The consumer then receives only the photos that were developed. Fuji owned a number of United States patents covering the LFFPs. Jazz Photo Corp. (defendant) obtained empty shells of the LFFPs after the film had been developed, refurbished them by reloading film and resealing them, and resold them. Fuji filed an action under Section 337 to bar entry of imports of the LFFPs by Jazz. The case was heard by an administrative-law judge. Initially, a cease-and-desist order was entered, prohibiting further importing of the LFFPs and other infringing actions. After considering the evidence, the administrative-law judge determined that Fuji’s patent rights had been exhausted for 60 percent of the products imported and sold by Jazz. Those products had been sold in the United States, which meant that Fuji had received the full benefit of the patents in those particular products. Jazz’s importation of the other 40 percent of products infringed on Fuji’s patent rights. Additionally, out of the 60 percent of products sold in the United States, Jazz asserted the affirmative defense of repair. The administrative-law judge determined a small amount of those imports had been repaired, rather than reconstructed. The administrative-law judge also imposed civil penalties against Jazz and its directors for violating the cease-and-desist order. The parties appealed.

Rule of Law

Issue

Holding and Reasoning (Dyk, J.)

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