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SSI Technologies v. DZEM — Automotive Fluid Sensor Patent Appeal | PatSnap
Patent Litigation

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.

Resolution time
508days
508 days from filing to Federal Circuit disposition — longer than median patent appeals
Patents asserted
2
US8733153 and US9535038 — diesel exhaust fluid ultrasonic sensor systems
Outcome
Appeal Dismissed in Part
Recorded basis: Appeal Dismissed in Part; Federal Circuit issued affirmed-in-part, reversed-in-part, vacated-in-part, and remanded
Cost ruling
No costs
Federal Circuit expressly ordered no costs awarded to either party
Published by PatSnap Insights Team · Verified by PatSnap Eureka Data
Case overview

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.

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Case at a glance
Case no.21-2345
PlaintiffPlaintiff
DefendantDefendant
CourtCourt of Appeals for the Federal Circuit
JudgeJames D. Peterson
FiledSeptember 23, 2021
ClosedFebruary 13, 2023
Duration508 days
OutcomeAppeal Dismissed in Part
Verdict causeInfringement Action
BasisAppeal Dismissed in Part
Prior Art Intelligence
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Case data sourced from PACER / Court of Appeals for the Federal Circuit via PatSnap Eureka Litigation Intelligence Explore similar cases ↗
Case timeline

Filing to Appeal Dismissed in Part in 508 days

508 days from filing to Federal Circuit disposition — longer than median patent appeals

Case timeline: Appeal filed SEP 23 2021 — 508 days total Horizontal timeline showing the three key events in Plaintiff v Defendant from filing to resolution. Source: PACER, Court of Appeals for the Federal Circuit. SEP 23 2021 Appeal filed Pre-trial proceedings FEB 13 2023 Appeal Dismissed in Part 508 DAYS TOTAL
Patent at issue

US8733153 & US9535038 — Diesel Exhaust Fluid Ultrasonic Sensor Systems

Publication No.US9535038B2
Application No.US14/868910
Patent details
ProductReduction of aeration interference in an ultrasonic fluid sensing system
Cited in actionSeptember 23, 2021

Publication No.US8733153B2
Application No.US13/294866
Patent details
ProductSystems and methods of determining quality or depth of diesel exhaust fluid
Cited in actionSeptember 23, 2021
Technical brief · sourced from PatSnap patent database
US9535038B2Primary patent
Patent figurePatent figure
Technology summary
The integration of a mesh filter and chimney in fluid sensors prevents air bubbles from interfering with ultrasonic measurements, ensuring accurate fluid level and concentration sensing in vehicle applications, addressing the challenge of aerated fluids in systems like SCR systems.
Representative claim (1 of 2 independent)
1. A sensor operable to sense a characteristic of a fluid, the sensor comprising: a housing; a sensing area configured to contain the fluid; a filter integral with the housing and covering the sensing area, the filter configured to allow a liquid portion of the fluid to enter the sensing area, and substantially prohibit one or more gas bubbles of the fluid from entering the sensing area; and a transducer configured to output a pulse of sound through the liquid portion of the fluid contained within the sensing area, receive the reflected pulse of sound, and output a characteristic of the fluid based on the receive…
Technical background
CROSS-REFERENCE TO RELATED APPLICATIONS This application is a divisional application of U.S. patent application Ser. No. 14/044,444, filed on Oct. 2, 2013, the entire contents of which are incorporated herein by reference. BACKGROUND The present invention relates to systems for sensing a fluid. More particularly, embodiments of the invention relate to mechanisms and techniques for reducing interference in measurements caused by air bubbles (e.g., a gas trapped in a liquid) in fluid level and concentration sensors.…
Patent family
8 family members across 3 jurisdictions (WO, US, DE)
PatSnap Eureka · FTO Search Agent
Should you run an FTO against US9535038 and US8733153?

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.

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Official verdict

Official order — verbatim text

Plaintiff SSI Technologies, LLC alleges that its competitor, defendant Dongguan Zhengyang Electronic Mechanical LTD (DZEM), infringes two SSI patents on automotive fluid sensors. DZEM denies infringement, contends that the patents are invalid, and accuses SSI of tortious interference with its business relationships. Both sides have moved for summary judgment on various issues. Dkt. 92 and Dkt. 98. Infringement turns on issues of claim construction, and the court concludes that DZEM does not infringe either patent. DZEM does not suggest that it faces any further threat of enforcement under the patents-in-suit, so the court need not consider the validity of the patents. The court will grant SSI’s motion for summary judgment on DZEM’s tortious interference counterclaim. The several pending motions involving evidentiary and discovery disputes are denied as moot. BACKGROUND The patents-in-suit involve fluid sensors, specifically sensors that check the purity of diesel exhaust fluid used in emission-reduction systems. Diesel exhaust fluid is a mixture of water and urea, injected as a mist into diesel exhaust. The diesel exhaust fluid reacts with Case: 21-2345 Document: 1-2 Page: 31 Filed: 09/23/2021 (35 of 58) 2 nitrous oxide in the exhaust, breaking it down into nitrogen, water, and carbon dioxide, thereby reducing the more harmful emission of nitrous oxide. If the diesel exhaust fluid is contaminated, the effectiveness of the nitrous oxide reduction system is reduced and contamination may damage the system. SSI and DZEM are competitors in the automotive-sensor market; they both make and sell sensors that detect contamination in diesel exhaust fluid. SSI contends that DZEM’s sensor infringes the two patents-in-suit. The first patent-in suit, U.S. Patent No. 8,733,153, discloses and claims a sensor system that measures the speed at which sound waves travel through a fluid to determine a quality of the fluid, such as whether a contaminant is present. The second patent-in-suit, U.S. Patent No. 9,535,038, improves the accuracy of such a sensor system by disclosing and claiming a sensor system with a filter that prevents gas bubbles from entering the sensing area.The clerk of court is directed to enter judgment in accordance with this opinion and close this case.IT IS ORDERED AND ADJUDGED that judgment is entered in favor of defendant Dongguan Zhengyang Electronic Mechanical LTD (“DZEM”) against plaintiff SSI Technologies, LLC (“SSI”) on SSI’s claims that DZEM infringed claims 1, 2, 4, 7 and 8 of U.S. Patent No. 8,733,153 and claims 9-13 and 18 of U.S. Patent No. 9,535,038. IT IS FURTHER ORDERED AND ADJUDGED that judgment is entered in favor of SSI against DZEM dismissing DZEM's sham-litigation, tortious-interference, and invalidity counterclaims. In summary, we reverse the district court’s construc tion of the term “filter” as used in the claims of the ’038 patent and vacate the district court’s grant of summary judgment with respect to the ’038 patent. We affirm the district court’s grant of summary judgment with respect to the ’153 patent and DZEM’s counterclaim for tortious in terference. We vacate the dismissal of the invalidity coun terclaim regarding the ’038 patent but affirm the dismissal of the invalidity counterclaim regarding the ’153 patent. No costs. AFFIRMED-IN-PART, REVERSED-IN-PART, VACATED-IN-PART, AND REMANDED
Source: PACER Docket, Case 21-2345, Court of Appeals for the Federal Circuit

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.

PACER case 21-2345 · Public docket record Explore in Eureka ↗
Court ruling

Federal Circuit split: what the affirmed-in-part, reversed-in-part ruling means

Legal mechanism

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 disposition
Patent holder outcome

SSI'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 DZEM
Challenger outcome

DZEM 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 remand
Commercial implications

Claim 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 risk
Legal analysis based on PACER docket records for case 21-2345 and PatSnap Eureka litigation intelligence Search PatSnap Eureka ↗
Parties and representation

Full party and counsel information

RoleNameTypeDetail
PlaintiffPlaintiffIndividualAutomotive fluid sensor manufacturer — holder of US8733153 and US9535038Search in Eureka ↗
DefendantDefendantIndividualDongguan Zhengyang Electronic Mechanical LTD — competing automotive sensor manufacturerSearch in Eureka ↗
Presiding judgeJudge James D. PetersonJudgeCourt of Appeals for the Federal CircuitSearch in Eureka ↗
R&D signals

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.

Patent portfolio

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 watch
Technology landscape

Filing 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 trends
Competitor IP posture

DZEM'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 landscape
White space opportunity

Design-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 space
Related litigation

Similar 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.

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Plaintiff patent enforcement history, Court of Appeals for the Federal Circuit case history, Plaintiff's full IP portfolio, and comparable case analysis
Ultrasonic sensor appealsDEF system patent casesClaim construction reversalsAutomotive IP Fed Circuit
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Strategic implications

What 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.

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Full strategic analysis in PatSnap Eureka
Unlock full strategic analysis of this Federal Circuit automotive sensor appeal, including portfolio risk signals and remand outcome scenarios.
SSI portfolio continuation risk'038 remand outcome trackerDEF sensor design-around map
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Frequently asked questions

Plaintiff v Defendant — key questions answered

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PatSnap Eureka

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.

Disclaimer

This page is compiled from public court dockets and third-party patent and litigation data via PatSnap Eureka, and is provided for general informational purposes only. The information shown — including party names, patent and application numbers, dates, case status, outcomes, and any analysis — may be incomplete, may not reflect the most recent filings or legal status, and may contain errors or omissions. Verify all details against official court records (for example, PACER) and the relevant patent office before relying on them.

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