Posts in Courts

On January 5, the U.S. Court of Appeals for the Ninth Circuit published an amended opinion and order denying rehearing and rehearing en banc, thus upholding its August reversal of the Northern District of California’s dismissal of a qui tam whistleblower action under the False Claims Act (FCA). The FCA claim was brought by patent attorney Zachary Silbersher against Valeant Pharmaceuticals, predecessor to Canadian drugmaker Bausch Health. The appellate court’s decision turned on the application of the FCA’s public disclosure bar, finding that inter partes review (IPR) proceedings did not trigger the statutory bar to qui tam actions based on evidence previously disclosed during adversarial agency proceedings “in which the Government or its agent is a party.”

The U.S. Supreme Court today denied certiorari in Intel v. Vidal, a case that asked the Court to overturn a U.S. Court of Appeals for the Federal Circuit (CAFC) ruling concerning the Patent Trial and Appeal Board’s (PTAB’s) so-called Fintiv framework. The CAFC’s March 2023 decision said appellate review of whether the PTAB’s discretionary denial rules for inter partes review (IPR) are “arbitrary and capricious” was precluded by Section 314(d) of the patent statute.

On December 27, less than one week before the National Hockey League’s (NHL) Seattle Kraken defeated the Vegas Golden Knights in the 2024 Winter Classic, a lawsuit was filed in the Western District of Washington against the Kraken. The lawsuit alleges that Seattle’s NHL franchise wore an infringing jersey during the Winter Classic, and has sold infringing merchandise, after shutting out the legitimate business interests of a passionate Seattle-area fan who revived that city’s championship legacy more than 90 years after the previous franchise folded.

Looking back over the final few weeks of 2023, patent filings were typical at the Patent Trial and Appeal Board (PTAB) and slightly above average in district courts, with the last weeks of the year seeing 68 district court complaints filed and 25 new PTAB petitions [December 11-17]; followed by 57 district court complaints filed and 29 new PTAB petitions [December 18-24]; and wrapped up with 24 district court complaints filed and 13 new PTAB petitions [December 25-31].

The U.S. Court of Appeals for the Federal Circuit (CAFC) today issued a precedential ruling that affirmed a district court’s denial of preliminary injunction to DexCom, Inc., holding that the language of the governing contract’s forum selection clause expressly allowed for the filing of inter partes review (IPR) proceedings in certain circumstances. DexCom and Abbott Diabetes Care, Inc. entered into a settlement and license agreement in 2014, following years of patent litigation over their competing glucose monitoring system patents. The governing agreement included a Covenant Period and a forum selection clause that DexCom argued was breached by Abbott’s filing of eight IPR petitions following the expiration of the Covenant Period and 10 months after DexCom filed an infringement suit against Abbott in the Western District of Texas.

On December 27, the New York Times Company became the latest complainant to accuse OpenAI’s Large Language Model, ChatGPT, as well as Microsoft’s GPT-4-powered Bing Chat, of widespread copyright infringement. The Times alleges that Microsoft and OpenAI reproduce Times content verbatim and also often attribute false information to the Times. OpenAI has been sued by numerous creators and authors for training its chatbots on content found online, including non-public or copyright-protected content. For example, the Times included examples in its complaint in which prompts to ChatGPT asking it to reproduce paywalled content resulted in verbatim excerpts from the article in question.

On December 28, agricultural tech developer Inari filed an amicus brief  with the U.S. Court of Appeals for the Federal Circuit (CAFC) urging the appellate court to deny a petition for rehearing en banc of the court’s August ruling in In re Cellect. Inari’s brief highlights that the Federal Circuit’s application of the obviousness-type double patenting (ODP) doctrine to legislatively-prescribed patent term adjustments (PTA) is critical to the success of companies like Inari who build upon technologies once patent protections expire.

We are less than 24 hours out from 2024 and, after reflecting on what mattered in 2023 and other year-in-review recaps, it is now time once again to ponder what lies ahead. From exciting patent legislation to Supreme Court trademark and copyright cases that could have big implications, here is what the IPWatchdog community will be keeping on its radar in the new year. 

In Part I of this article, we recapped some of the most notable trade secret cases of the past year that dealt with issues such as proving secrecy and exercising reasonable efforts, as well as the publication of a key judicial resource for trade secret cases. Below, we continue with some of the top trade secret cases and subject matter the courts addressed in 2023.  

On December 26, the U.S. Court of Appeals for the Federal Circuit (CAFC) issued a precedential decision in K-fee System GmbH v. Nespresso USA, Inc., reversing a claim construction ruling and summary judgment of noninfringement issued by the Central District of California. In construing the claim term “barcode” de novo, the Federal Circuit found that the district court erred in finding that its definition expressly excluded “bit codes” in light of the patent owner’s representations during European patent opposition proceedings.

Yesterday, the U.S. Court of Appeals for the Federal Circuit (CAFC) stayed the International Trade Commission’s (ITC’s) October 26 Limited Exclusion Order (LEO) against certain Apple Watches that the ITC found infringed on two Masimo patents that covered technology related to reading blood-oxygen levels. The CAFC does not appear to have published the order on its public website but it is widely available online.

The most significant development in IP in Europe in 2023—indeed arguably the most significant in nearly 30 years—was the launch of the Unitary Patent and Unified Patent Court on June 1. The full implications of this are explored here. Beyond the UP and UPC, however, there were a number of. important developments in Europe affecting all the main IP rights.

Trade secrets in the United States have a fascinating history, during which courts shaped the common law tort as a way to enforce confidential relationships. Now the legal framework is statutory, with some version of the Uniform Trade Secrets Act (UTSA) in effect in every state except New York, and with uniformity in the federal system thanks to the Defend Trade Secrets Act of 2016 (DTSA). Nevertheless, the law continues to evolve much as it did a century ago—that is, through the opinions of judges deciding individual cases on their facts. What follows is a selection of those decisions, along with other resources, which have come out during the past year and which I believe provide helpful guideposts about important aspects of trade secret law and practice.

This year has seen a bonanza of significant trademark decisions, including several high- profile decisions from the Supreme Court. Courts ruled on issues ranging from First Amendment and parody considerations to the extraterritorial reach of U.S. trademark law, yet in most cases returned to basic principles of trademark law to resolve the open issues. Below is a selection of a few of those significant cases from the previous year.

The complex rules of copyright and trademark law are designed so that creators of popular expressive works and companies marketing authentic branded products are properly protected. This Christmas, we’re looking at a series of rulings from U.S. federal courts on intellectual property (IP) issues involving holiday ornaments, public displays with light sculptures, as well as one of the most popular Christmas songs ever. These cases don’t simply show that a Santa Claus can be designed with non-generic copyrightable elements; they also show members of the U.S. federal judiciary working diligently to properly dispense justice on IP questions between the adverse parties arguing before them.