Other Barks & Bites for Friday, June 23: FTC Asks Appeals Court to Reconsider Pharma Antitrust Case; U.S. Ambassador Warns of China IP Theft; Patent Reform Bills Introduced

This week in Other Barks & Bites: the Federal Trade Commission (FTC) files an amicus brief asking an appeals court to reconsider an antitrust case against pharmaceutical companies who paid generic manufacturers to drop their patent disputes; the U.S. Court of Appeals for the Federal Circuit (CAFC) affirms a judgment that granted a win to Netflix in a patent dispute; and Senators Tillis and Coons introduce two bills that would reform the U.S. patent system.

Bites

SCOTUS Says District Courts Must Stay Proceedings Pending Interlocutory Appeal on Arbitrability

The U.S. Supreme Court ruled today in Coinbase, Inc. v. Bielski that a district court must stay its proceedings while an interlocutory appeal on the question of arbitrability is ongoing. The case involved a class action brought by Abraham Bielski on behalf of Coinbase users, alleging that Coinbase failed to replace funds fraudulently taken from the users’ accounts. Coinbase’s User Agreement provides for dispute resolution through binding arbitration, so Coinbase filed a motion to compel arbitration, which was denied by the district court. When Coinbase filed an interlocutory appeal to the Ninth Circuit, both the district court and Ninth Circuit refused to stay the proceedings pending resolution of the interlocutory appeal. The sole question before the High Court was “whether a district court must stay its proceedings while the interlocutory appeal on arbitrability is ongoing” and the Court said: “The answer is yes.”

CAFC Affirms PTAB Ruling Granting Win to Netflix in Patent Dispute

On Thursday, June 22, the CAFC issued a nonprecedential ruling that affirmed a Patent Trial and Appeal Board (PTAB) decision that found claims in a Broadcom patent unpatentable. Broadcom sued Netflix for patent infringement related to video-on-demand technology. Broadcom appealed the PTAB decision and disputed its ruling of the term “drive server.” However, the CAFC ruled that Broadcom’s arguments were unpersuasive and found the PTAB decision was supported by substantial evidence.

Senators Introduce Bills to Reform U.S. Patent System

On Thursday, June 22, Senators Chris Coons (D-DE) and Thom Tillis (R-NC) introduced the Patent Eligibility Restoration Act of 2023 and the PREVAIL Act, both of which the Senators argue would promote innovation and preserve U.S. competitiveness. The eligibility bill would remove all judicially-created exceptions to U.S. patent eligibility law, while the PREVAIL Act would significantly revamp the Patent Trial and Appeal Board (PTAB) to be more patent owner- friendly. “I have long said that clear, strong, and predictable patent rights are imperative to enable investments in the broad array of innovative technologies that are critical to the economic and global competitiveness of the United States, and to its national security,” said Tillis. For a full IPWatchdog breakdown of the bills, see here and here.

FTC Asks Appeals Court to Reconsider Antitrust Case Against Pharma Companies

On Tuesday, June 20, the FTC filed an amicus brief in the U.S. Court of Appeals for the Second Circuit asking the court to reverse a lower court ruling that dismissed a case alleging antitrust violations against seven pharmaceutical companies. The pharmaceutical companies struck deals with generic manufacturers using reverse-payment settlements that result in the generic companies dropping their patent challenges for a settlement fee. The FTC argued that legal precedent has determined these reverse-payment schemes amount to antitrust violations. “Unless corrected, the district court’s ruling threatens to impair the effective enforcement of antitrust laws in the pharmaceutical industry,” wrote the FTC.”

Barks

Google Willfully Infringed on Playlist Patents, Must Pay $15 Million in Damages

On Wednesday, June 21, a Delaware district court ruled that Google willfully infringed on two patents from Personal Audio LLC and owes $15 million in damages. The court found that the Google Play Music app infringed on playlist features covered in Personal Audio’s patent claims.

U.S. Ambassador Calls for Coalition of Countries to Compete with China on AI

On Wednesday, June 21, U.S. ambassador at large for Cyberspace and Digital Policy Nathaniel C. Fick warned of China IP theft for AI technologies. Fick told attendees of a Hudson Institute event, “we have to build the biggest coalition we can” in order to compete with China on emerging advanced technologies. Before serving as the first Digital Policy Ambassador, Fick was a U.S. Marine and later the CEO of a cybersecurity software company.

Skechers Sues Steve Madden in Shoe Trademark Squabble

On Tuesday, June 20, the shoe company Skechers sued fashion brand Steve Madden alleging its new line of shoes infringes on its “S” trademark. In the lawsuit, Skechers claims that Steve Madden’s new line of Kennie sneakers is likely to cause confusion among consumers. Steve Madden’s new shoes have an “S” in their design that Skechers argues is similar to its trademark. Skechers is asking the California district court to order that Steve Madden cease promoting and selling the new shoe line.

RIAA Subpoenas Discord Over Copyright Infringement in AI Group

On Wednesday, June 14, the music recording company RIAA sent a letter to the social network Discord with a subpoena demanding the Platform shut down a popular group that uses AI to model the voices of popular musicians. The group called AI Hub has 145,000 users, and the RIAA has argued that the group infringes on its users copyrighted video and sound recordings. The legal proceeding is one of a handful of high-profile copyright disputes between musical artists and streaming and social media companies.

Report Reveals Supreme Court Justice Samuel Alito Failed to Disclose Luxury Fishing Trip with GOP Billionaire

On Tuesday, June 20, ProPublica reported that Supreme Court Justice Samuel Alito failed to disclose a 2008 luxury fishing trip he took with GOP billionaire Paul Singer. Singer in part financed the trip including a chartered $100,000 private jet for Alito. The Supreme Court heard a case between Singer’s hedge fund and Argentina, which Alito did not recuse himself from. U.S. Senate Majority Whip Dick Durbin (D-IL), Chair of the Senate Judiciary Committee, said in a statement, “the Supreme Court is in an ethical crisis of its own making due to the acceptance of lavish gifts from parties with business before the Court that several Justices have not disclosed.  The reputation and credibility of the Court are at stake.”

This Week on Wall Street

Powell Emphasizes Plan for Interest Rate Hikes to Reduce Inflation

On Wednesday, June 21, Federal Reserve Chairman Jerome Powell delivered a semiannual monetary policy report to Congress and said that interest rates are likely to rise in the coming months. Powell reiterated the Federal Reserve’s commitment to reducing inflation to 2%, but he said they still have a long way to go. Powell, said, “nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year.”

Senate Labor Committee Launches Investigation into Amazon’s Labor Practices

On Tuesday, June 20, Senator Bernie Sanders (I-VT), Chairman of the Senate Committee on Health, Education, Labor, and Pensions (HELP), announced in a letter to Amazon CEO Andy Jassy that the committee is launching an investigation into working conditions in the e-commerce giant’s warehouses. s. “The company’s quest for profits at all costs has led to unsafe physical environments, intense pressure to work at unsustainable rates, and inadequate medical attention for tens of thousands of Amazon workers every year,” wrote Sanders. Amazon has long been dogged by accusations from former and current employees about the warehouse and delivery driver working conditions. The U.S. Department of Labor has issued citations to Amazon warehouses for unsafe working conditions multiple times.

Quarterly Earnings – The following firms identified among the IPO’s Top 300 Patent Recipients for 2022 are announcing quarterly earnings next week (2022 rank in parentheses):

• Monday: None
• Tuesday: None
• Wednesday: Micron Technology (17)
• Thursday: Nike (111)
• Friday: None

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Author: damedeeso