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 22, the U.S. Department of Health and Human Services (HHS) issued a notice and request for comments (RFC) regarding the United States’ negotiating position on a draft convention on pandemic preparedness being developed at the World Health Organization (WHO). The HHS’ RFC specifically targets certain portions of the draft convention that would impact intellectual property (IP) ownership, research & development, and technology transfer for pandemic-related technologies.

The U.S. Copyright Office issued a Notice of Proposed Rulemaking in the Federal Register today offering a new group registration option for frequently updated news websites. According to the Federal Register Notice (FRN), the option would allow online news sites to register “a group of updates to a news website as a collective work with a deposit composed of identifying material representing sufficient portions of the works, rather than the complete contents of the website.”

Recent debates about AI patentability have focused on whether the outputs of an AI system, such as a neural network, can be patented. Such debates have been spurred not only by recent general advances in the power of AI but also by Dr. Stephen Thaler’s “Artificial Inventor” project’s attempts to obtain patents on devices generated using his neural network-based DABUS software. If you thought that whether an AI-generated output can be patented is a cutting-edge question, then consider whether an input to an AI system, such as a prompt to a large language model (LLM), can be patented.

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.

On day one of the new year, we continue the IPWatchdog tradition of asking readers what they would like to see happen if their every IP wish could come true. Some commenters stuck with more realistic asks, such as for patent eligibility reform to move forward or that an extension of the waiver of IP rights under the Trade-Related Aspects of Intellectual Property Rights Agreement (TRIPS) will be opposed. Others went out on a limb by pulling for a new central patent court based in Hawaii or that congress will get its act together, for instance. Of course, the most popular dream articulated below is once again that patent eligibility certainty will be restored, either by the courts or congress.

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. 

Arbitration, including international arbitration, can be a beneficial tool for the enforcement of patent portfolios, license agreements and infringement disputes. When entering into agreements/licenses (including commercial supplier, distributor and partnership agreements), parties may deem it useful to include an arbitration provision to resolve any disputes arising from those agreements. As such, parties can take advantage of the numerous benefits of international arbitration in the event of a dispute relating to intellectual property, in contrast to relying on district court proceedings.

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.

Many IP attorneys have expressed concerns about complying with confidentiality duties while using large language models (LLMs). For example, in a recent panel at the U.S. Patent and Trademark Office (USPTO), multiple panelists expressed the opinion that attorneys should not perform LLM queries because LLM queries are stored remotely while Internet searches are not. The goal of this article is to explore, as examples, Google’s and OpenAI’s data retention policies and the intersection of those policies with attorneys’ confidentiality duties.

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.