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The CAFC overturned a lower court ruling on a patent infringement case between CloudofChange, LLC and NCR Corporation. CloudofChange alleged that NCR's point-of-sale system, NCR Silver, infringed on their patents. The lower court found direct infringement, attributing the merchants' use of the system to NCR. The appeals court reversed, determining that NCR's merchants, not NCR itself, controlled and benefitted from the system's use, thus no direct infringement occurred. The court clarified the difference between system and method claim infringement, rejecting the lower court's reliance on vicarious liability based on a single system element.
By SentinelThe CAFC overturned a lower court ruling on a patent infringement case between CloudofChange, LLC and NCR Corporation. CloudofChange alleged that NCR's point-of-sale system, NCR Silver, infringed on their patents. The lower court found direct infringement, attributing the merchants' use of the system to NCR. The appeals court reversed, determining that NCR's merchants, not NCR itself, controlled and benefitted from the system's use, thus no direct infringement occurred. The court clarified the difference between system and method claim infringement, rejecting the lower court's reliance on vicarious liability based on a single system element.