Inguran, LLC v. ABS Global, Inc., No. 22-1385 (Fed. Cir. 2023)Annotate this Case
Using a patent directed to a method for sorting sperm cells according to specific DNA characteristics to preselect the gender of a domestic animal’s offspring, STGenetics, provided bull semen-processing services to ABS, which sells semen drawn from its own bulls, packaged in small tubes for use in artificial insemination.
In 2014, ABS filed an antitrust lawsuit, alleging that ST was maintaining monopoly power for sexed semen processing. ST brought counterclaims for trade secret misappropriation, breach of contract, and patent infringement. ABS stipulated to direct infringement of three claims. A jury awarded ST $750,000 for past infringement and a royalty on future sales of sexed semen tubes sold by ABS. The Seventh Circuit affirmed the validity findings and issued a remand that did not concern the ongoing royalty.
ST filed another infringement suit, which was consolidated with the remand proceedings, then learned that ABS had begun selling and licensing ST’s system to third parties. ST filed a third suit, asserting induced infringement (35 U.S.C. 271(b)). The district court dismissed the action, citing claim preclusion.
The Federal Circuit reversed. An induced patent infringement claim brought at the time of the first trial would have been based on speculation; the parties stipulated to direct infringement and the question of inducement was not before the jury. The scope of ABS’s direct infringement allegations cannot reasonably be expanded to cover actions of third-party licensees using the technology to make their own tubes.