Federal Circuit Finds Necking Machine Patents Invalid Under 102(b) On-Sale Bar

In Crown Packaging Technology, Inc. v. Belvac Production Machinery, Inc., No. 2022-2299 (Fed. Cir. December 10, 2024), the Federal Circuit reversed the district court’s summary judgment ruling and remanded for entry of judgment that the asserted patents are invalid under the pre-AIA § 102(b) on-sale bar. 

At summary judgment, Belvac argued that Crown’s necking machine patents were invalid under the on-sale bar because Crown sent a quotation for its machines to a third party more than a year before the priority date. The district court found the quotation did not qualify as an offer for sale and the patents were not invalid. A jury then found no infringement, and both parties appealed.

The Federal Circuit found that Crown’s “quotation” contained sufficiently definite terms to qualify as an offer for sale, including the specific product, pricing, purchase options, delivery conditions, and payment terms. The quote was also valid upon acceptance, as the third party was obligated to “commence performance” immediately upon acceptance by paying 50% of the purchase price. Finally, the Federal Circuit reiterated that the offer, although made by a foreign company, was directed to a United States corporation, rendering the on-sale bar applicable. 

Accordingly, the Federal Circuit held the asserted patents invalid and did not reach infringement.