Juicy Whip, Inc. v Orange Bang, Inc.
185 F.3d 1364 (Fed. Cir. 1999)
Juicy Whip obtained a patent
on a drink dispenser that made it look like the customer was getting fresh
juice out of a appetizing-looking clear tank on the counter, but in
reality they were getting juice out of a second tank hidden below the
counter.
Juicy Whip claimed that this
made it easier to keep the juice free from bacteria and contaminants and
that improved public health.
Orange Bang began using a
similar dispense to attract customers. Juicy Whip sued for infringement.
Orange Bang argued that
Juicy Whip's patent was invalid because it did not meet the standard of utility under 35 U.S.C. §101.
Since the dispenser was
"intended to deceive the customer" it didn't meet the standard
for moral utility. (as opposed to
practical utility).
The Trial Court found for
Orange Bang and invalidated the patent. Juicy Whip appealed.
The Trial Court found that
the invention lacked utility
because its purpose was to increase sales by deception.
The Court found that the
invention only improved on the prior art by increasing sales. Therefore it confers no benefit to the
public and doesn't deserve patent protection.
The Appellate Court reversed.
The Appellate Court looked
to §101 and found that an
invention is useful if it is capable of providing some
identifiable benefit.
The Court found that there
are lots of 'useful' products that are imitations of other things (like
cubic zirconium). So the fact that the Juicy Whip invention imitates
fresh juice doesn't mean that it isn't useful.
The Court found that there
was no basis for holding that an invention was unpatentable for lack of utility simply because it has the capacity to fool
some members of the public.
The Court noted that Juicy
Whip's drink machine was perfectly legal, and if Congress didn't like
it, they were free to change the law. However, it was not the job of
the USPTO to displace the police powers of the States and promote the
health, order, peace, and welfare of the community.
The patent system is not a
regulatory body, it only gives you the right to exclude others. It is for
other agencies to determine if the invention can be legally marketed.
For example, even if you can
get a patent on a drug, you can't sell the drug until you get approval by
FDA.