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Fuji Photo Film Co. v. Jazz Photo Corp.

394 F.3d 1368 (2005)

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Fuji Photo Film Co. v. Jazz Photo Corp.

United States Court of Appeals for the Federal Circuit
394 F.3d 1368 (2005)

RW

Facts

Fuji Photo Film Company, Ltd. (Fuji) (plaintiff) patented its disposable camera in the United States (US). Fuji intended that a buyer would discard one of these cameras after a single use and then buy another Fuji camera. Jazz Photo Corporation (Jazz) (defendant) undercut this plan by buying and refurbishing millions of discarded Fuji cameras so that the cameras could be resold in the US and reused. Fuji filed a federal International Trade Commission (ITC) patent-infringement complaint against Jazz. The ITC found that Jazz’s refurbishment constituted impermissible reconstruction and rendered judgment for Fuji. Jazz appealed to the Federal Circuit, which ruled that, insofar as Jazz refurbished cameras that had first been sold in the US, Jazz was entitled to the repair exclusion of the patent-exhaustion doctrine. Meanwhile, Fuji had also sued Jazz in federal district court. The district court found that most of Jazz’s refurbished cameras were first sold abroad. The district court ruled that Jazz’s exhaustion defense did not apply to those foreign-sold cameras, and that as to those cameras, Jazz had infringed Fuji’s patent. Jazz challenged the district court’s interpretation of the exhaustion doctrine and once again appealed to the Federal Circuit.

Rule of Law

Issue

Holding and Reasoning (Rader, J.)

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