SSI Technologies v. DZEM: Federal Circuit Splits Ruling on Diesel Exhaust Fluid Sensor Patents
SSI Technologies alleged competitor DZEM infringed two automotive fluid sensor patents covering diesel exhaust fluid quality detection. The Federal Circuit affirmed summary judgment on US8733153, reversed claim construction on US9535038, and remanded — a split outcome across 508 days of litigation.
A split Federal Circuit ruling that reshapes the '038 patent's future
SSI Technologies, LLC filed this appeal at the Court of Appeals for the Federal Circuit on September 23, 2021, challenging a district court summary judgment entered in favour of DZEM (Dongguan Zhengyang Electronic Mechanical LTD) on infringement claims related to US8733153 and US9535038 — two patents covering ultrasonic sensing systems for detecting contamination in diesel exhaust fluid used in automotive emission-reduction systems.
The recorded basis of termination is 'Appeal Dismissed in Part.' The Federal Circuit's docket order states: 'AFFIRMED-IN-PART, REVERSED-IN-PART, VACATED-IN-PART, AND REMANDED.' Specifically, the court affirmed the district court's summary judgment of non-infringement regarding the '153 patent and affirmed dismissal of DZEM's tortious interference counterclaim, while reversing the district court's claim construction of the term 'filter' in the '038 patent and vacating summary judgment on that patent, with remand for further proceedings. The invalidity counterclaim as to the '038 patent was also vacated, while that counterclaim regarding the '153 patent was affirmed dismissed.
The split outcome — affirmed on one patent, reversed and remanded on the other — means the '153 patent dispute is conclusively resolved in DZEM's favour, while the '038 patent litigation is revived at the district level on corrected claim construction grounds. The Federal Circuit's express 'no costs' order suggests the appellate panel viewed neither party as a clear winner. The specific terms of any further district court proceedings on remand are not disclosed in the available record.
See Complete Case & Patent Analysis →Filing to Appeal Dismissed in Part in 508 days
508 days from filing to Federal Circuit disposition — longer than median patent appeals
US8733153 & US9535038 — Diesel Exhaust Fluid Ultrasonic Sensor Systems


Any company developing, sourcing, or selling ultrasonic diesel exhaust fluid sensors — particularly systems incorporating aeration suppression or fluid quality measurement by acoustic velocity — should treat both patents as active FTO concerns. US8733153 is affirmed non-infringed by DZEM's specific product, but the claim scope remains valid. US9535038 is on remand with an expanded 'filter' interpretation and represents an open enforcement risk.
Official order — verbatim text
The Federal Circuit issued a mixed disposition: affirming the district court's non-infringement grant on US8733153 in full, and affirming dismissal of DZEM's tortious interference counterclaim, while reversing the district court's construction of 'filter' in US9535038 — a legal question reviewed de novo at the appellate level. The vacatur of summary judgment on the '038 patent and its invalidity counterclaim means those issues return to the district court without any merits resolution at this stage. No costs were awarded, consistent with the split outcome.
Federal Circuit split: what the affirmed-in-part, reversed-in-part ruling means
What 'Affirmed-in-Part, Reversed-in-Part, Vacated-in-Part' means
At the appellate level, 'affirmed-in-part' means the Federal Circuit found no reversible error in the district court's ruling on those specific issues. 'Reversed-in-part' means the appellate court found the district court erred — here, on claim construction of 'filter' in the '038 patent. 'Vacated-in-part' nullifies those lower court rulings and sends them back for reconsideration on the corrected legal standard.
Split appellate dispositionSSI's '153 claim is closed; '038 gets a second chance
SSI Technologies loses conclusively on US8733153 — the Federal Circuit affirmed non-infringement with no further appellate path on that patent at this level. However, SSI secured a reversal of the district court's claim construction on US9535038, meaning the '038 patent infringement case is remanded with a broader or corrected interpretation of 'filter.' This keeps SSI's enforcement position on the '038 patent alive.
'038 remanded; '153 affirmed for DZEMDZEM retains non-infringement win on '153 but faces renewed '038 risk
DZEM secured a final appellate affirmance of non-infringement on US8733153 and dismissal of its tortious interference counterclaim is affirmed. However, DZEM now faces remand proceedings on US9535038 under a corrected claim construction that the Federal Circuit found the district court had applied incorrectly. DZEM's invalidity counterclaim on the '038 patent was vacated, leaving that avenue also open on remand.
'038 exposure renewed on remandClaim construction on 'filter' is the pivotal risk term for the sector
For competitors and suppliers in the diesel exhaust fluid sensor market, the Federal Circuit's reversal of the 'filter' claim construction in US9535038 signals that the patent's scope may be broader than the district court concluded. Automotive sensor manufacturers should treat the '038 patent as an active enforcement risk until the remand resolves. The '153 patent is no longer an infringement threat following the affirmed non-infringement ruling.
'Filter' construction drives sector riskFull party and counsel information
| Role | Name | Type | Detail |
|---|---|---|---|
| Plaintiff | Plaintiff | Individual | Automotive fluid sensor manufacturer — holder of US8733153 and US9535038Search in Eureka ↗ |
| Defendant | Defendant | Individual | Dongguan Zhengyang Electronic Mechanical LTD — competing automotive sensor manufacturerSearch in Eureka ↗ |
| Presiding judge | Judge James D. Peterson | Judge | Court of Appeals for the Federal CircuitSearch in Eureka ↗ |
R&D signals in diesel exhaust fluid sensor and ultrasonic fluid sensing IP
Forward-looking patent intelligence for teams building or procuring automotive fluid quality sensors — drawn from the SSI Technologies v. DZEM Federal Circuit appeal.
SSI Technologies' filing activity in ultrasonic fluid sensing
SSI Technologies has demonstrated willingness to enforce its sensor IP through Federal Circuit appeal. Monitoring SSI's continuation and divisional filings from the US13/294866 and US14/868910 patent families can reveal whether the company is extending claim coverage into adjacent ultrasonic or DEF sensor architectures — a key risk signal for competitors designing next-generation systems.
SSI portfolio watchFiling trends in diesel exhaust fluid quality sensing
Diesel exhaust fluid sensor technology is attracting filings from automotive OEMs, tier-1 suppliers, and dedicated sensor companies as emissions regulations intensify globally. Tracking patent application density around acoustic velocity measurement, urea concentration detection, and aeration suppression helps R&D teams identify crowded claim space and emerging white-space opportunities.
DEF sensor filing trendsDZEM's patent position in automotive fluid sensing
Dongguan Zhengyang Electronic Mechanical LTD competed directly with SSI in the DEF sensor market and mounted invalidity counterclaims in this case — suggesting the company actively analyses the patent landscape. Mapping DZEM's own patent filings and any design-around activity in fluid sensing can inform competitive intelligence for market entrants and OEM procurement teams.
DZEM IP landscapeDesign-around opportunities near 'filter' and aeration suppression claims
The Federal Circuit's reversal on the meaning of 'filter' in US9535038 narrows the design-around space for aeration suppression in ultrasonic sensing chambers. R&D teams should probe alternative bubble-exclusion mechanisms — membrane-based, geometric baffling, or active degassing approaches — that may fall outside the corrected claim construction and represent defensible white-space innovation.
Aeration suppression white spaceSimilar Federal Circuit patent appeals in automotive sensor technology
Explore Federal Circuit appeal decisions involving automotive sensor patents, ultrasonic fluid sensing IP, and emission-system technology — the same domain as SSI v. DZEM.
Related patent case — similar technology
Comparable case in the same technology domain. Patent holder and defendant reached resolution after proceedings.
SettledRelated infringement action — same court
Comparable Reduction of aeration interference in an ultrasonic fluid sensing system-adjacent infringement action. Patent enforcement dynamics analysed in depth.
Active · District CourtRelated invalidity challenge — appellate outcome
Combined invalidity and infringement action in the same technology space. Decided after substantive proceedings.
DecidedPlaintiff's broader IP enforcement history
Plaintiff's full litigation history covering prior enforcement, licensing activity, and inter partes review proceedings.
Portfolio viewWhat this case signals for the automotive sensor IP landscape
A split Federal Circuit ruling on diesel exhaust fluid sensors creates asymmetric risk: one patent closed, one revived with corrected claim scope.
US9535038's 'filter' claim scope is now the live enforcement variable
The Federal Circuit's reversal on claim construction means the district court applied too narrow a reading of 'filter.' Any competitor producing ultrasonic diesel exhaust fluid sensors with aeration-reduction components should reassess their freedom-to-operate position on the '038 patent before the remand concludes.
US8733153 is resolved — but monitor the '038 remand closely
The '153 patent no longer poses infringement risk after Federal Circuit affirmance. However, the '038 patent remand will produce a new district court ruling under corrected claim construction — that outcome will reset the enforceability landscape for ultrasonic fluid quality sensing in automotive applications.
SSI's portfolio filing activity in ultrasonic fluid sensing suggests further enforcement risk
Patent holders who have litigated to the Federal Circuit and secured even partial reversals typically continue filing continuations and divisionals in the same technology domain. SSI's broader portfolio around ultrasonic and quality-sensing technology warrants active monitoring for new grants that could extend enforcement beyond the two patents-in-suit.
Diesel exhaust fluid sensor patent density is rising — white space is narrowing
Emission-reduction sensor technology has attracted accelerating filings from automotive OEMs and tier-1 suppliers. With US9535038 back in active dispute and corrected claim scope on 'filter,' adjacent design-around strategies — particularly around gas bubble suppression mechanisms — carry heightened freedom-to-operate risk that requires updated analysis.
Plaintiff v Defendant — key questions answered
The Federal Circuit issued a split disposition: it affirmed the district court's summary judgment of non-infringement for DZEM on US8733153 and affirmed dismissal of DZEM's tortious interference counterclaim, while reversing the district court's claim construction of 'filter' in US9535038, vacating summary judgment on that patent and its invalidity counterclaim, and remanding for further proceedings. No costs were awarded.
Two patents were asserted: US8733153, which claims a sensor system measuring acoustic velocity through fluid to detect contamination in diesel exhaust fluid; and US9535038, which improves sensor accuracy by incorporating a filter to prevent gas bubbles from entering the sensing area. Both patents target the automotive diesel exhaust fluid quality-sensing market.
The Federal Circuit found that the district court applied an incorrect — likely overly narrow — construction of the term 'filter' in US9535038's claims. Because claim construction is reviewed de novo at the appellate level, the reversal means the case is remanded to the district court to reconsider infringement and invalidity of the '038 patent under the corrected, broader interpretation of 'filter.'
The Federal Circuit affirmed the district court's grant of summary judgment of non-infringement on US8733153 in favour of DZEM. This closes the infringement dispute between SSI and DZEM on that patent. However, the patent itself remains valid — the invalidity counterclaim regarding the '153 patent was affirmed dismissed — meaning it could potentially be asserted against different accused products or parties in future proceedings.
The recorded basis of termination is 'Appeal Dismissed in Part.' The Federal Circuit's docket order states the disposition as 'AFFIRMED-IN-PART, REVERSED-IN-PART, VACATED-IN-PART, AND REMANDED.' These two characterisations are as recorded; the specific procedural reason the case is also characterised as 'dismissed in part' is not further elaborated in the available record.
Track the US9535038 remand and protect your sensor IP position
With US9535038 returning to district court under corrected claim construction, now is the time to run an FTO and monitor SSI's portfolio. PatSnap Eureka surfaces live docket updates, family filings, and competitor patent activity in diesel exhaust fluid sensor technology.
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