Private Sale Not Necessarily Public Disclosure Under Section 102(b)(2)(B)

In Sanho Corp. v. Kaijet Technology International Limited, Inc, the Federal Circuit affirmed the PTAB's decision finding obvious all challenged claims of the '429 patent, which relates to a device that provides ports for connecting peripherals to a computer. The court's affirmation clarifies that a private sale does not necessarily publicly disclose subject matter under § 102(b)(2)(B).

The '429 patent was invalidated at IPR utilizing a patent application publication (Kuo) as prior art. The sole issue on appeal was whether Kuo was entitled to the prior art exception under 35 U.S.C. § 102(b)(2)(B), which states a disclosure shall not be considered prior art if "the subject matter disclosed [in the alleged prior art] had . . . been publicly disclosed by the inventor" before its effective filing date. Sanho argued the inventor of the '429 patent had "publicly disclosed" the subject matter of Kuo through the private sale of a product to a laptop accessory brand. Sanho