Category: Patent

Nautilus, Inc. v. Biosig Instruments, Inc. – Definiteness Now Requires Reasonable Certainty

On June 2, the Supreme Court in Nautilus, Inc. v. Biosig Instruments, Inc., No. 13-369, __ U.S. __ (June 2, 2014) (Ginsburg, J.) ruled that the prior tests for indefiniteness, insoluble ambiguity and amenable to construction, are no longer appropriate. The new test for definiteness requires reasonable certainty. Insoluble ambiguity has been the high hurdle defendants have attempted to jump for more than twelve years since the Federal Circuit introduced that phrase in Exxon Research and Engineering v. United States, 265 F. 3d 1371, 1375 (Fed. Cir. 2001). Combined with the requirement for clear and convincing evidence to invalidate a claim, indefiniteness was not often a successful defense to patent infringement allegations.

AIA Post-Issuance Proceedings – First Claim Amendment Motion Granted in Inter-Partes Review

Prior to April 22, 2014, and since the filing of the first petition for inter partes review on September 16, 2012, the Patent Trial and Appeal Board (PTAB) of the U.S. Patent and Trademark Office (USPTO) had not granted any patent owner’s motion to amend claims of patents under review. On April 22, 2014, this record changed as the PTAB issued its first decision in International Flavors & Fragrances, Inc. v. U.S. Department of Agriculture (IPR2013-00124) partially granting the patent owner’s motion for claim amendment.

AIA Post Issuance Proceedings – Additional Discovery Requested in Inter Partes Review Must Be “Surgically” Tailored

In comparison to discovery obtainable in federal district court proceedings, discovery obtainable in inter partes review (IPR) proceedings conducted by the Patent Trial and Appeal Board (PTAB) of the U.S. Patent and Trademark Office (USPTO) under the America Invents Act (AIA) is sharply limited. Aside from “mandatory initial disclosures” agreed to by the parties and “routine discovery” largely limited to the cross-examination of experts, additional discovery must be requested by motion to the PTAB, with a showing that such discovery is required “in the interests of justice.” If the request is denied, the moving party can request the motion to be reheard by the PTAB by identifying all matters the party believes the Board misapprehended or overlooked.

Patent 101 Continued

Section 101 challenges continue to be front and center at the district court level, including three recent decisions in the United States District Courts for the Northern District of California and Eastern District of Virginia which reflect holdings falling on opposite sides of 101 patentability. In France Telecom S.A. v. Marvell Semiconductor Inc., the court denied defendant’s summary judgment motion because it failed to meet the “high level of proof” needed to succeed on an eligibility challenge under section 101. There, the patent involved correcting errors in telecommunication and other signals (caused by noise or interference which distorts the data) known as turbo coding. After summarizing relevant jurisprudence, the court identified the abstract ideas relevant to the subject matter of the patent claims at issue as “error-correction coding” or “decoding digital data elements.” The court then analyzed whether the claims contained “additional substantive limitations that narrow, confine, or otherwise tie [them] down.” Specifically, the court found that they provide “unique and detailed [error-detection coding or decoding] methods . . . or inventive concepts that exceed the prior art, namely, coding in parallel and a novel method of iterative coding.” Thus, the claimed inventions “provide the necessary substantive claim limitations beyond the mere recitation” of abstract ideas. The court also gave the claims a passing grade in the machine-or-transformation test: “[c]laim 1 takes digital data elements and turns them into a distinct series of coded data elements, which Claim 10 in turn decodes.” The court further found relevant (similar to the court in TQP Development we previously discussed) that the purpose of the patent was “to disclose a method for more accurate and efficient data transmission.”

It Ain’t that Obvious to Try

In Sanofi-Aventis Deutschland GmbH v. Glenmark Pharms Inc., the Federal Circuit followed previous precedent in holding that the combination of compounds is not “obvious to try” if unexpected properties are supported by evidence. The patent-at-issue was directed to an antihypertension drug, Tarka®, which is the combination of an angiotension-converting enzyme inhibitor (such as trandolapril or quinapril, both double-ring compounds) and a calcium channel blocker. The jury found that the patent had not been proven invalid and defendant, on appeal, argued that “if a combination of classes of components is already known, all selections within such classes are obvious to try . . . .” The Federal Circuit found that there was substantial evidence supporting the jury’s verdict that obviousness had not been proved by clear and convincing evidence because of the unpredicted “longer-lasting effectiveness” achieved with the drug.

In the Limelight: Induced Infringement Issues Retakes Center Stage

On April 30, 2014, the Supreme Court heard oral arguments in Limelight Networks, Inc., v. Akamai Technologies, Inc., et al., No. 12-786. We previously reported on the Federal Circuit’s twin en banc opinions in Akamai Techs., Inc. v. Limelight Networks, Inc., and McKesson Techs. Inc. v. Epic Sys. Corp., 692 F.3d 1301 (Fed. Cir. 2012), finding inducement under 35 U.S.C. § 271(b) even when a single actor was not liable for direct infringement. Both Limelight and Epic petitioned the Supreme Court for review, but the Epic case subsequently settled.

Supreme Court Reestablishes Standard for Attorneys’ Fees Under §285

On Tuesday, April 29, 2014, the Supreme Court in Octane Fitness v. ICON Health and Fitness issued a ruling that reestablishes the previous standard for awarding attorneys’ fees in the event of an exceptional case under 35 U.S.C. §285. In its opinion, the Court held that a case should be considered “exceptional” when it “is simply one that stands out from others with respect to the substantive strength of a party’s litigating position … or the unreasonable manner in which the case was litigated.” The Court instructed that this determination should be made on a “case-by-case” basis “considering the totality of the circumstances.”

Upcoming Gibbons Institute Event – “USPTO Patent Post-Issuance Proceedings Under the America Invents Act” – May 6

On Tuesday, May 6, the Gibbons Institute of Law, Science & Technology will host, “USPTO Patent Post-Issuance Proceedings Under the America Invents Act: Considerations Impacting the Healthcare and Technology Sectors,” at 5:00 pm in the Metropolitan Room of the Newark Club. In-house patent counsel from Pfizer, Johnson & Johnson, IBM, and Alcatel-Lucent are among the featured panelists.

AIA Post-Issuance Procedures – Estoppel Provisions Raised by Patent Owner In Attempt to Defeat “Synchronized” Decisions

The America Invents Act (AIA) of 2011 introduced a number of new inter partes procedures for post-issuance challenges of patents, including inter partes review (IPR) and a transitional program for covered business method patents (CBM). According to U.S. Patent & Trademark Office (PTO) statistics, nearly 1,200 petitions for IPR and CBM been have filed since September 16, 2012.

Market Growth of Fuel Cell Products Follow Patent Growth of Fuel Cell Technologies

Recently, Wal-Mart placed an order for 1,738 fuel cell powered forklifts that move products in Wal-Mart’s warehouses. This highly publicized order spotlights the emerging commercial markets, the technologies and patents that have made the production of energy through fuel cells more cost effective. The commercial use of fuel cells is certainly not new, however. Advancements in the technology have decreased costs associated with the production of energy from fuel cells and consequently there has been a rise in the commercial use of fuel cells. The Clean Energy Patent Growth Index shows that for the last decade fuel cell related patents outpaced all other clean energy technology patents until 2013 when solar patents for the first time surpassed fuel cell patents.