Florida Prepaid Postsecondary Ed. Expense Bd. v. College Savings Bank, 527 U.S. 627, 5 (1999)

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Cite as: 527 U. S. 627 (1999)

Opinion of the Court

a patent for its financing methodology, designed to guarantee investors sufficient funds to cover the costs of tuition for colleges. Petitioner Florida Prepaid Postsecondary Education Expense Board (Florida Prepaid) is an entity created by the State of Florida that administers similar tuition prepayment contracts available to Florida residents and their children. See Fla. Stat. § 240.551(1) (Supp. 1998). College Savings claims that, in the course of administering its tuition pre-payment program, Florida Prepaid directly and indirectly infringed College Savings' patent.

College Savings brought an infringement action under 35 U. S. C. § 271(a) against Florida Prepaid in the United States District Court for the District of New Jersey in November 1994.1 By the time College Savings filed its suit, Congress had already passed the Patent and Plant Variety Protection Remedy Clarification Act (Patent Remedy Act), 35 U. S. C. §§ 271(h), 296(a). Before this legislation, the patent laws stated only that "whoever" without authority made, used, or sold a patented invention infringed the patent. 35 U. S. C. § 271(a) (1988 ed.).2 Applying this Court's decision in Atas-1 College Savings also filed a separate action alleging that Florida Pre-paid had made false claims about its own product in violation of the Trademark Act of 1946 (Lanham Act), 15 U. S. C. § 1125(a). The District Court dismissed the Lanham Act suit on Eleventh Amendment grounds, the Third Circuit affirmed, and we granted College Savings' petition in that case on the same day we granted the petition in this case. See 525 U. S. 1063 (1999). The Lanham Act suit is the subject of our opinion in College Savings Bank v. Florida Prepaid Postsecondary Ed. Expense Bd., post, p. 666.

2 Section 271 still provides in relevant part: "(a) Except as otherwise provided in this title, whoever without authority makes, uses, offers to sell, or sells any patented invention, within the United States or imports into the United States any patented invention during the term of the patent therefor, infringes the patent.

"(b) Whoever actively induces infringement of a patent shall be liable as an infringer.

"(c) Whoever offers to sell or sells within the United States or imports into the United States a component of a patented machine, manufacture,

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