Facts

K-fee System GmbH (K-fee) and Krüger North America, Inc. are wholly-owned subsidiaries of Krüger GmbH & Co. KG. The company began as an instant tea company, but over the years, grew into a food and beverage company. After spending two years on research and development, Krüger created a single-serve, multi-beverage product that would allow at-home consumers to enjoy café-style coffees in their homes. The system used coffee-containing capsules printed with a barcode that instructs a specially designed machine on how to prepare the beverage, including specifications regarding pressure, water amount, and temperature. In an ideal scenario, the machine would read the barcode, follow the instructions, and produce a café-style coffee beverage at home. In 2010, Krüger launched its capsule system in Germany, Australia, Canada, and the United States, and in 2012, it created K-fee to handle the capsule business.

Nespresso USA, Inc. is a coffee company that offers single-serve coffee capsules and systems and introduced its patented Vertuo system in the United States in 2014. The Vertuo system uses a code on its capsules to instruct its machines on how to prepare a particular beverage. K-fee filed suit, alleging Nespresso's Vertuo system infringed upon its patents.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendants infringed upon its patented barcode system by selling a similar product in the United States; that defendants profited from their infringement; and that defendants willfully and deliberately infringed on the patents.

DEFENDANTS' CONTENTIONS: Defendants denied any wrongdoing and all of plaintiff's material allegations.

Result

Defendant's motion for summary judgment was granted.