Tagged: Patent Litigation

GAO Report Fails to Make it “Open Season” on Trolls

We have reported frequently in the past on IP law developments relating to so-called Nonpracticing Entities, or NPEs, including the Leahy-Smith America Invents Act’s mandate that the Government Accounting Office (“GAO”) conduct a study on the consequences of patent litigation by NPEs. On August 22, the GAO issued its 54-page Report, “Intellectual Property: Assessing Factors That Affect Patent Infringement Litigation Could Help Improve Patent Quality” (hereafter, “Report”). In view of the GAO’s mandate, some of the Report’s findings are surprising.

Cancellation of Claims by USPTO During Reexam is Binding in Pending District Court Infringement Litigation

Last month, the Federal Circuit addressed the question of “whether, under the reexamination statute, the cancellation of claims by the PTO is binding in pending district court infringement litigation.” Fresenius USA, Inc. v. Baxter Int’l, Inc., 2013 U.S. App. LEXIS 13484, at *13 (Fed. Cir. July 2, 2013). The Federal Circuit interpreted the reexamination statute to have a binding effect on concurrent litigation, and thus terminated a pending litigation where the same patent claims were cancelled during reexamination. Id. at *43. Accordingly here, the Federal Circuit held that the PTO’s invalidity decisions trump the prior district court ruling.

Resuscitating Therasense? CD Cal Court Finds Inequitable Conduct by Patentee

IP practitioners have witnessed the dearth of inequitable conduct findings in the wake of Therasense, Inc. v. Becton, Dickinson & Co., 649 F.3d 1276 (Fed. Cir. 2011). There, the Federal Circuit reiterated en banc that to establish unenforceability for inequitable conduct before the United States Patent and Trademark Office (“PTO”), a party must prove by clear and convincing evidence that (1) information material to patentability was withheld from the PTO, or material misinformation was provided to the PTO, and that such act was done (2) with the intent to deceive or mislead. A few months ago, we reported on a case that continued to signal the death knell of this formerly ubiquitous defense, and thus begging the present question: is inequitable conduct even alive anymore? Of course it is.

Third Circuit District Courts Take Aim at Non-Patent Eligible Patents Under § 101

In a pair of recent decisions issued just days apart, the District of Delaware and the District of New Jersey have found patents relating to online transaction guaranties and financial services to be non-patent eligible pursuant to 35 U.S.C. § 101. Practitioners may wish to take heed …. In buySafe, Inc. v. Google, Inc., C.A. No. 11-1282-LPS, Dkt. 69 (D. Del. July 29, 2013) (Stark, J.), buySafe asserted its online transaction guaranty patent, and Google moved for judgment on the pleadings pursuant to Rule 12(c). Ultimately, Judge Stark of the Delaware District Court granted defendant’s motion on the grounds that the patent-in-suit was invalid under 35 U.S.C. § 101 because it is directed to non-patent-eligible subject matter. In so ruling, the Court noted that on the face of the patent, it described that the entire inventive process could be performed by a human.

CAFC Council Rescinds Model Order ….

We previously reported that the Federal Circuit Advisory Council (“the CAFC Council”) recently approved a “Model Order Limiting Excess Patent Claims and Prior Art” that set default numerical limits on the number of asserted patent claims and prior art references. Prior to this, we reported in October 2011, that Chief Judge Randall Rader of the Federal Circuit had announced that the CAFC Council had adopted a Model Order to streamline and reduce e-discovery costs.

Federal Circuit Advisory Council Gives Nod to Limited Claims and Prior Art in Patent Suits

IP practitioners on both sides of the “v.” should take heed that the Federal Circuit Advisory Council (“the CAFC Council”) has unanimously approved a “Model Order Limiting Excess Patent Claims and Prior Art.” Citing a “[l]ack of discipline” by the asserting party, the CAFC Council recounted that the resulting “superfluous claims and prior art” have contributed to increasing the expense and burden of patent litigation. And rather than dealing with the number of claims and prior art references on an ad hoc basis, as is presently done, the aspirational Model Order sets default numerical limits on the number of asserted patent claims and prior art references.

The USPTO Launches the Global Patent Search Network

On July 8, Teresa Stanek Rea, Acting Director of the United States Patent and Trademark Office (“USPTO”), announced on her official blog the launch of the Global Patent Search Network (“GPSN”). The GPSN is the result of a cooperative effort between the USPTO and China’s State Intellectual Property Office (“SIPO”). Users of the GPSN will be able to search full text Chinese patent documents and English machine translations, thus enabling searches in both English and Chinese. The initial database of documents will include published applications, granted patents, and utility models dated from 2008 to 2011. The database will be periodically updated. In addition, the USPTO anticipates the network will expand to include patent documentation from other foreign intellectual property offices.

So, Too, a DJ Plaintiff May Be Entitled to Attorney Fees in Exceptional Cases

According to a recent Central District of California decision, a declaratory judgment plaintiff may be entitled to attorney fees if it prevails on non-infringement in a patent case. Homeland Housewares, LLC v. Sorensen Research and Dev. Trust, No. 11-03720, slip op. at 7-8 (C.D.C.A. Jun. 27, 2013). In Homeland, plaintiff filed a declaratory judgment of non-infringement, invalidity and unenforceability in response to a demand letter (and correspondence thereafter) asserting patent infringement. The asserted patent was directed to plastic injection molding, and the accused products were plastic cups. The Court granted plaintiff’s summary judgment of no infringement, but denied plaintiff’s motion for invalidity and in fact, granted defendant’s cross-motion for summary judgment of validity. Plaintiff then moved for attorneys’ fees under 35 U.S.C. § 285, which permits awards in “exceptional cases” to the “prevailing party,” but, who was the prevailing party?

High Court Seeks Government Input on Akamai v. Limelight

The Supreme Court asked the U.S. Solicitor General to weigh in on whether to hear an appeal from the Federal Circuit’s decision in Akamai Technologies Inc. et al v. Limelight Network, Inc. on induced infringement. This is a very closely watched case for the software industry, but may have far reaching implications in the pharmaceutical field as well.

The End of an Era for Gene Patents? Supreme Court Rules that Isolated DNA is Unpatentable

Over thirty years ago, the USPTO awarded the first gene patent (US 4,447,538) and the Supreme Court held that biological inventions were subject to patent protection. Since then, tens of thousands of U.S. “gene” or DNA related patents have issued. However, there has been much uncertainty over the patentability of such inventions as of late.