Posts Tagged: "post grant proceedings"

NuVasive owns a patent relating to spinal fusion implants. Medtronic petitioned the Patent Trial and Appeal Board (the “Board”) to institute an inter partes review challenging the validity of NuVasive’s patent over several references. The Board instituted the IPR and found the challenged claims obvious over a combination of references.

One of the effects of this bill, were it enacted by Congress as currently written, would be to modify the enforcement activities of the U.S. Securities and Exchange Commission (SEC). Recent coverage of the bill by Bloomberg BNA notes that the proposed legislation would allow parties involved in a legal action to move the action out of SEC tribunal and into U.S. district court… As Bloomberg BNA’s coverage notes, SEC’s in-house tribunals have been criticized in recent months… While the Financial CHOICE Act itself doesn’t pose any direct impact to the U.S. patent system, it does highlight a similar issue playing out at the USPTO in recent years.

Overall, a significant number of the eleven judges present for argument hinted through their questioning that they thought the PTO’s rulemaking was problematic…. The PTO’s position is that the burden of proof allocated by § 316(e) is not applicable to motions to amend and therefore it may regulate the burden of proof on such motions based on the authority granted to it in § 316(a)(9). Judge Reyna jumped in almost immediately during the PTO’s argument to question the validity of the PTO’s rulemaking. In his view, there is no validly promulgated PTO regulation that places the burden of persuasion for motions to amend on the patent owner.

In a handful of IPRs, the Petitioner has relied on a video, and asserted that the video constitutes a printed publication… One factor raised in these cases is the mode by which the video was distributed. Two different modes can be identified: a first in which the video was actively distributed on a physical medium such as a CD; and a second in which the video was passively accessible as by availability on the internet.

On December 9, 2016, the en banc Federal Circuit will hear argument in In re Aqua Products, Inc. on an issue that has long been troubling patent owners involved in inter partes reviews (“IPR”)—the difficulty of amending patent claims before the Patent Trial and Appeal Board (“PTAB”)… The Federal Circuit granted a petition for rehearing en banc to consider whether the burden of persuasion allocated to the patentee by the PTAB for motions to amend is permissible under the statutory scheme.[5] Notably, the Federal Circuit’s rehearing order specifically identifies 35 U.S.C. § 316(e), which provides that in an IPR “the petitioner,” not the patent owner, “shall have the burden of proving a proposition of unpatentability by a preponderance of the evidence.” The Federal Circuit also will consider whether the PTAB can raise sua sponte challenges to patentability, much the way an examiner would, if the IPR petitioner fails to do so.

”It appears to me that en banc consideration [of Achates] is warranted,” Judge Taranto wrote. ”It is notable, to begin with, that the [Supreme] Court pointedly avoided embracing the simplest and most review-barring reading of § 314(d) – namely, that it prohibits judicial review of any determination to institute an IPR.”

Now that Trump has won, the discussion has narrowed to whether Trump will keep patents weak or make patents great again. From the outside perspective, it is a curious exercise to say the least… Why are we even asking these questions? Property is property, right? Can you remember an election where people were asking if their deed would keep squatters out of their living room depending on who won the presidency? I don’t. It seems a preposterous question. After all, the deed on your house is a property right and everybody knows the government will back it up and eject the squatters. So why then do we, or should we, have to ask whether a Trump Administration will be in favor of strong patent rights? It all seems bizarre to say the least.

The PTAB used the wrong standard to institute the CBM proceeding in the first place, which lead the Federal Circuit to vacate the PTAB decision and remand the case for further consideration by the PTAB – namely the application of the proper standard… As the Federal Circuit would point out later: “All patents, at some level, relate to potential sale of a good or service.” To allow this PTAB created standard that has no textual support in the statute to be applied would be to allow virtually any patent to be the subject of a CBM. That was clearly was not the intent of Congress and it would fly directly and unambiguously in the face of the explicit language of the statute. The PTAB is significantly limited in their power to institute a CBM.

Neste filed a petition for inter partes review of REG’s U.S. Patent No. 8,231,804 (‘804 patent) and the Patent Trial and Appeal Board ultimately found all of the challenged claims anticipated by either of two references. REG appealed, citing exhibits allegedly demonstrating a date of invention earlier than the prior art. Anticipation can be found where prior art discloses the claimed range in a different unit of measure that can be converted using reasonable and reliable methods. Prior invention is fact-intensive and must take into account all of the relevant evidence. Exhibits offered to show the fact of a communication, and not the truth of the communication’s contents, are not excludable as hearsay.

The way Lee talks about the PTAB makes me wonder whether she is referring to the same entity that I commonly refer to as the PTAB. Indeed, Lee’s remarks come across as if leprechauns are dancing across a magical rainbow in search of unicorns being ridden by fairies. It is a fiction that I am just not familiar with; a fiction that patent owners simply do not recognize to be true… To then say that innovation isn’t served if patents are only issued after many years of examination reeks of being hopelessly out of touch. In certain areas of the Patent Office it is not at all unusual for applicants to be awarded 10 years of additional patent term; term that is awarded as the result of Patent Office delay. Getting any patent takes years, getting a worthwhile patent in a commercially viable market segment takes many years, if not a decade or longer. NEWSFLASH: Innovation is already not being served because many innovators do not obtain a patent for extraordinary and unreasonable lengths of time. It is almost as if patent examiners fight a war of attrition against applicants, who are treated like the enemy.

The Federal Circuit denied appellant SAS’s petition for rehearing en banc from a decision by the Patent Trial and Appeal Board, without an explanatory opinion. Judge Newman dissented. Without discussing the facts of the case, she undertook to review the statutory provisions for inter partes review (“IPR”) proceedings under the America Invents Act (“AIA”). According to Newman, the Court should have granted the petition, in order to correct the Patent Office position that “the final order of the [Patent Trial and Appeal] Board need not address every claim raised in the petition for review.” According to Judge Newman, a review of the statutory provisions of the AIA makes it clear that, if the PTAB decides to institute review, it should do so for all of the challenged claims, not just some of the challenged claims.

The truth is simple. Certain patent owners are being harassed; their patents – sometimes the same patents – are challenged repeatedly. Yet, Director Lee has not exercised her authority to say “enough.” It seems abundantly clear what is going on. If you are one of several disfavored patent owners you are almost certainly not going to receive a fair procedural shake at the Patent Office. Every courtesy and benefit will be extended to the challenger, including serial challengers. The patent or patents that took you upwards of 10 years to obtain at a cost of $50,000 to $100,000 will be presumed invalid by the agency that issued them. If this does not call into question the integrity of the patent system what ever could?

In 2013, Cardiocom, LLC (“Cardiocom”), a subsidiary of Medtronic, Inc. (“Medtronic”), sought inter partes review of two patents owned by Robert Bosch Healthcare Systems, Inc. (“Bosch”). The Cardiocom petitions were denied in January 2014. Medtronic later sought another inter partes review of the same two patents, without naming Cardicom as an interested party… Section 314(d) bars review of questions regarding the application and interpretation of statutes “closely related” to the decision whether to institute an IPR, including reconsideration of the Board’s decision to institute.

Both petitioners’ and patent owners’ reliance on blog articles in the course of post grant proceedings has been approximately equal. However, the manner in which the blog articles were used did vary widely based on the litigator’s position during the proceeding. For petitioners, blog articles were most often cited to construe the claims (Apotex Inc. v. Amgen Inc., IPR2016-01542, Paper 2, p.69), were introduced as previous publications of an expert witness in order to help prove their qualifications (Samsung Electronics Co., v. Papst Licensing, IPR2016-01733, Ex. 1014, p. 99), or were used to bolster the credentials of one or more of the representing attorneys (Google, Inc. et al v. Smartflash, CBM2015-00132, Paper 17, p. 2). For patent owners, blog articles were most often referenced to provide support to summarize and clarify certain legal standards such as claim construction standards (Uniloc USA, Inc. et al v. Allscripts Healthcare Solutions, Inc., IPR2015-01615, Paper 12, p. 8), to clarify legislative history and identify Congressional intent (Coalition for Affordable Drugs VII v. Pozen, IPR2015-01241, Paper 13, p. 47), and to rebut the petitioner’s expert testimony by attacking the expert’s credibility (Coalition for Affordable Drugs VII v. Pharmacyclics, IPR2015-01076, Paper 20, p. 13).

As the above cases illustrate, PTAB decisions have affected district court cases in different ways. Determining whether the use of a PTAB decision is likely to be permitted or will have any effect requires a multifactorial analysis that considers at least the nature of the PTAB outcome (e.g., final or preliminary), factors contributing to that outcome (e.g., whether they were based on the merits of the case), and potential drawbacks attached to the requested use (e.g., jury confusion). Additional considerations might include, for example, the level of sophistication of the technology already being considered by the jury, which might factor into a court’s analysis of the likelihood of jury confusion. Parties seeking to rely on PTAB decisions in district court should consider these factors. The AIA has only been in place for five years and the law in this area will continue to develop over the next several years.