Posts in District Courts

A recent decision out of the Eastern District of Texas granted the plaintiff patent owner summary judgment with respect to the defendants’ counterclaim that the plaintiff breached licensing related obligations owed to the Institute of Electrical and Electronics Engineers (IEEE) by not communicating with the defendants prior to suing for infringement…. While the result is reasonable, the explanations provided by the court raise several questions.

A Pulitzer Prize-winning author and a number of Tony, Grammy and Peabody award winners are the latest to sue OpenAI for copyright infringement based on the way it trains its popular chatbot, ChatGPT. In July, comedian Sarah Silverman and authors Christopher Golden and Richard Kadrey brought a similar suit against OpenAI.

The U.S. Court of Appeals for the Federal Circuit (CAFC) issued an order on Tuesday denying Charter Communications Inc.’s petition for a writ of mandamus seeking to direct the district court to dismiss Entropic Communications’ patent infringement suit against it for improper venue. Entropic sued Charter in the U.S. District Court for the Eastern District of Texas, alleging patent infringement, and Charter moved to dismiss for improper venue. The district court denied the motion, holding that Charter “committed acts of infringement and has a regular and established place of business” in the district.

HIP, Inc. recently filed a petition for writ of certiorari with the U.S. Supreme Court asking the Justices to review a May 2023 U.S. Court of Appeals for the Federal Circuit (CAFC) decision holding an inventor’s contribution to a patent for methods of pre-cooking bacon and meat pieces did not satisfy the joint inventorship test because the contribution was “insignificant in quality.”

Last week, the U.S. District Court for the Northern District of Illinois dismissed a copyright infringement lawsuit filed against the rapper and singer, Future. A Virigina-based rapper, Gutta, accused the rap star of copying his song “When U Think About It” when Future released “When I Think About It” on a 2018 mixtape. The district court judge ruled that none of the elements brought forward by Gutta were protectable under U.S. copyright law. The Virginia rapper argued that the two songs shared both subject matter and similar phrases.

On August 28, officials from the U.S. Chamber of Commerce held a video call to discuss the trade organization’s legal action against the U.S. Department of Health & Human Services (HHS), including a motion for preliminary injunction filed against the HHS last week in U.S. district court. The U.S. Chamber officials noted that the legal uncertainty looming over the HHS’ implementation of drug price control mechanisms under the Inflation Reduction Act (IRA) will cast a significant pall over the Biden Administration’s celebration of the program one year on.

On Friday, Judge Beryl Howell issued an opinion in Dr. Stephen Thaler’s challenge against the U.S. Copyright Office (USCO) over the denial of his application for a work generated entirely using generative artificial intelligence (AI) technology. The opinion supports the USCO’s refusal to register a work in which the claimant disclosed in the application that the image was the result of an AI system, called The Creativity Machine. The case is Stephen Thaler v. Shira Perlmutter and The United States Copyright Office (1:22-cv-01564) (June 2, 2022).

Texas has long been home to the busiest patent courts in the country. In the Eastern District, Judges Rodney Gilstrap and Roy Payne have for the last decade-plus seen more patent cases than any other judges in the country. Since taking the bench in 2018, Judge Alan Albright in the Western District has had the most active patent docket, taking 18% of all patent cases in 2022, for example. Much has been written about the judges’ perceived unwillingness to grant transfer motions in patent cases (and resulting challenges to the Federal Circuit) and disfavor of staying cases pending inter partes review. These factors suggest that a defendant in these courts have few options to stay or transfer their case.

The U.S. District Court for the Eastern District of New York, in a decision published Monday, denied the defendants’ motions to vacate asset freezes in a case brought by Gilead alleging a massive HIV drug counterfeiting ring that involves “hundreds of millions of dollars’ worth” of fake medications. In January 2022, the court unsealed documents in the suit against a slew of defendants who Gilead said sold, marketed, and distributed counterfeits of its HIV medications. Gilead’s complaint sought immediate monetary and injunctive relief, including seizure at certain of the defendants’ premises, as well as relief for trademark and trade dress infringement and trademark dilution, among other alleged violations.

You always remember your first jury trial. Mine happened almost 50 years ago, and I still vividly recall sitting with the partner to work on the “instructions” that the judge would be giving. He explained to me that the jury would be told what the statutes said (this was a contract case), and they would be responsible for deciding the facts that determined their verdict. As it turned out, we didn’t win, and that was the end of it. Although an appeal was possible, overturning a jury verdict is very hard to do. And that’s as it should be…. That’s why I was surprised to see the recent opinion in Syntel v. Trizetto.

The U.S. Court of Appeals for the Federal Circuit (CAFC) on Monday issued a precedential decision affirming a district court’s mixed ruling in a patent infringement case involving two patents owned by United Therapeutics on the pulmonary hypertension drug, Tyvaso.
U.S. Patent 10,716,793 and U.S. Patent 9,593,066 cover methods of treating pulmonary hypertension and pharmaceutical compositions comprising treprostinil—Tyvaso is an inhaled solution formulation of treprostinil. United Therapeutics also owns a new drug application (NDA) for Tyvaso, No. 022387.

On Friday, July 21, an Illinois district court ruled that a Pakistani employee of a medical device distribution company infringed on Ethicon’s trademark when he bought, marketed and sold counterfeit Ethicon devices. Ethicon is a subsidiary of Johnson & Johnson and won an $18 million default judgment. Ethicon first filed a complaint against the defendant Mudassar Shah in July 2020 and alleged federal and state trademark infringement of five different trademarks. The laundry list of accusations also included trademark dilution, false advertising, common law unjust enrichment, common law tortious interference with contract, and breach of settlement agreement.

Patent eligibility challenges under 35 U.S.C. § 101 have been effective tools at the pleading stage for parties defending allegations of patent infringement. Defendants often attempt to avoid the costs of litigation by filing a motion to dismiss under Federal Rule of Civil Procedure (“FRCP”) 12(b)(6), seeking to invalidate the asserted patent(s) on the grounds that the claims are directed to ineligible subject matter — such as an “abstract idea.” Previously, a key tactic for plaintiffs to overcome such “Section 101 motions” was by amending the complaint and annexing an expert declaration. Recently, however, this strategy has been called into question due to a recent decision in Marble VOIP Partners LLC v. Zoom Video Communications, Inc.,

The U.S. Court of Appeals for the Ninth Circuit yesterday upheld a district court ruling that embedding images from Instagram posts in third-party websites does not constitute copyright infringement. The case has to do with two photographers’ images that were embedded and posted with articles run by Buzzfeed News and Time from the photographers’ public Instagram accounts. The district court and the Ninth Circuit both cited Perfect 10 v. Amazon as precluding relief.

Novartis is currently involved in a multi-district patent litigation campaign to block generic entrants for Entresto®, which is Novartis’ blockbuster heart medication. In the fall of 2022, Novartis went to trial on the validity of one of the asserted patents, U.S. Patent No. 8,101,659 (“the ‘659 patent”). On July 7, 2023, the district court invalidated the patent for lack of written description despite rejecting an enablement defense based upon the same evidence. The district court’s decision highlights a clear tension between claim construction and enablement that, if left to stand, could permit pharmaceutical companies to block lower-cost generic medications with patents they did not actually invent.