Germany - Repair & Reproduction Distinction

 

 

According to Section 9 of the German Patent Act, no one is allowed without consent of the patent holder to produce, offer, bring into circulation or use a patented product.  However, if someone buys a patented product from the patent holder or another person licensed by the patent holder, the patent is exhausted.  This means the buyer is allowed to use this product without infringing the patent.  The question arises as to what is covered by this right to legally use the patented product.  In RG GRUR(1939) case it was contemplated that the normal legal use of a patented product covers replacing such parts of minor importance to the invention which are subject to wear and which usually are replaced within the normal life time of the patented product once or several times.  Against this background it is difficult to distinguish when the replacement of a wearing part of a patented product shall be considered to be a repair and when it shall be considered as a reproduction that was according to Section 9, an infringement of the patent.  In such a situation, the courts have pointed out that this distinction has to be made according to the common perception.  However, the Federal Supreme Court has continuously decided that a repair shall be deemed to be a reproduction if the repair is economically equal to a reproduction.

The aim of patent law is to balance the interest of the inventor to get a fair remuneration for his invention on the one hand and the interest of the public in free and unlimited use of the invention on the other hand.  The Federal Supreme Court held that the replacement of a wearing parts that are normally replaced several times during the lifetime of the patented product is usually an admissible use of the product.  However, exemptions can only be made if the technical and economic advantage of the invention with respect to the prior art appears explicitly in the replacement, then the replacement shall be regarded as a reproduction of the patented product that is not covered by patent exhaustion.  For example, an impeller to measure the consumption of , say water, was according to the patented invention designed in such a way that it was in the event of calcination easily possible to replace the inner part of the unit without cracking the wall.  The advantage of that invention reappeared every time the impeller was calcified and needed to be replaced.

Contributory infringement:  

Same principle applies to contributory infringement which is excluded for ordinary staple-ware unless the supplier encourages the purchaser to use it for the production, offer, sale or use of that patented product.  However, in cases where the replacement of a wearing part reflects the technical and economic advantage of the invention, the offer or supply of that wearing part shall be regarded as a contributory infringement according to Section 10 of the Patent Act.  Further, the Higher Regional Court of Dresden found in its judgment that contributory infringement can also be the case if the design of the wearing part incorporates the essential idea behind the patented invention.  For example, rail vehicle wheels.  These wear because of friction with the rail and therefore need to be renewed after certain periods.  The technical aim of the patent in that case was to provide a rail vehicle wheel that is more elastic in radial direction and has more stiffness in axial direction.

However, a legal appeal against the second instance decision is pending and it is expected that the Federal Supreme Court will reason its decision to give for future cases a more precise distinction between admissible repair and inadmissible reproduction of a patented product.

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