October 2024

Free Post: En Banc Review in Allergan: Rehearing Petition Tackles ODP Safe Harbor and WD Essential Elements

by Dennis Crouch

This post focuses on the issues raised in the patent challenger Sun Pharma’s recent en banc petition in Allergan USA, Inc. v. MSN Laboratories Private Ltd and Sun Pharmaceutical Indus. Ltd., No. 2024-1061 (Fed. Cir. 2024).  The original panel majority opinion is controversial on two separate fronts. First, it created an obviousness-type double patenting (ODP) safe harbor for certain patents whose term had been extended via patent term adjustment (PTA); Second, the court OK’d the omission of what appeared to be an essential element (a glidant) from the claims, finding sufficient written description support despite the specification only describing formulations that included a glidant. This omission was particularly notable as it occurred after the patentee learned during litigation that the accused products did not include a glidant.

I’ve divided this post into two parts: Part I – ODP Safe Harbor and Part II – Written Description Essential Element. (more…)

Supreme Court denies Cert

by Dennis Crouch

The Supreme Court has denied certiorari in all of the patent cases it considered in its  first conference of the October 2024 term:

  • Denied: 23-1349 Provisur Technologies, Inc. v. Weber, Inc..  Does an on sale product constitute a printed publication that can be asserted in an IPR.
  • Denied: 23-1298 United Therapeutics Corporation v. Liquidia Technologies, Inc. Whether the IPR statute and SAS require the Federal Circuit to review de novo, or only for an abuse of discretion, the PTO's reliance on new grounds and new printed publications—not raised in the initial petition?
  • Denied: 23-1231 Cellect, LLC v. Vidal.  Whether a patent procured in good faith can be invalidated on the ground that statutory Patent Term Adjustment created an improper term extension under the judge-made doctrine of obviousness type double patenting.
  • Denied: 23-1217 Chestek PLLC v. Vidal. Whether the PTO is exempt from notice-and-comment requirements when exercising its rulemaking power under 35 U.S.C. § 2(b)(2).
  • Denied: 23-1184 Eolas Technologies v. Amazon.com, Inc. Whether the claims recite patent-eligible subject matter under 35 U.S.C. § 101 and Alice Corp.
  • Denied: 23-1142 Surti v. Fleet Engineers, Inc. Whether the Court erred in denying proper compensation.

Only a handful of cases are still pending before the court:


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Treading Carefully: Federal Circuit Expands “Absolute Litigation Privilege” and Affirms Trade Dress Invalidity in Toyo Tire v. Atturo Tire

by Dennis Crouch

In a recent decision, the Federal Circuit addressed several key issues in intellectual property litigation, including the scope of "absolute litigation privilege" under Illinois law, trade dress functionality, and the consequences of discovery sanctions. Toyo Tire Corp. v. Atturo Tire Corporation, No. 2022-1817, 2022-1892 (Fed. Cir. Oct. 4, 2024).

The decision here is non-precedential, likely because it does not include any patent-law issues and thus is entirely based upon regional circuit law (here, the Seventh Circuit). Still, the case includes a number of interesting and important holdings.  In this post, I focus on two particular issues: (1) the scope of privilege against being sued for defamation or other similar torts based upon statements made in a court proceeding; (2) the strong functionality doctrine that limits protection of trade dress on three-dimensional product design.


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Distinguishing Dastar: False Patent Marking Claims Get New Life Under the Lanham Act

by Dennis Crouch

In a significant ruling that breathes new life into false patent marking claims, the Federal Circuit has held that falsely advertising a product as "patented" can give rise to liability under the Lanham Act's prohibition on false advertising. In Crocs, Inc. v. Effervescent, Inc., the appellate panel reversed a Judge Brimmer (D.Colo) summary judgment ruling, thus allowing competitor Dawgs to pursue false advertising claims against Crocs for allegedly misrepresenting its "Croslite" material as patented and 'exclusive.'  One advertisement read to the appellate panel stated: The reason the shoes are so comfortable is that they are made of a patented closed-cell resin. The resin has many positive aspects ..."  But, the closed-cell resin was not patented and instead was commercially available for anyone to use.

This ruling opens up a new avenue for challenging false patent marking after the America Invents Act severely curtailed such claims under the Patent Act itself. The decision also clarifies the scope of false advertising claims under the Lanham Act in light of key Supreme Court and Federal Circuit precedents such as Dastar and Baden Sports.

Professor Rebecca Tushnet is a leading commentator on Dastar and its progeny. In an earlier post, she also argued that the district court decision was "wrong" for much the same reason expressed by the appellate panel:

The patented/proprietary/exclusive language here is not the same as claiming authorship; it’s claiming uniqueness as a reason for consumers to believe that Crocs possess superior product characteristics to those of competitors’ products. To the extent that the claims lead consumers to believe that Crocs are “made of a material ‘different than any other footwear,’” a difference made credible to consumers by reference to patents and/or proprietary knowledge, that is a claim about the physical nature of specific product components, not about authorship. When the Supreme Court left 43(a)(1)(B) claims open in Dastar, this is the kind of thing that fits well.

Tushnet (September 2021).  See also, my prior discussion of the case that includes links to the briefs.


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Secret Springing Prior Art and Inter Partes Review

by Dennis Crouch

The Federal Circuit is set to decide an important issue regarding the scope of prior art that can be considered during inter partes review (IPR) proceedings in the pending appeal of Lynk Labs, Inc. v. Samsung Electronics Co., Ltd.  At issue is whether section 102(a)(2) prior art qualifies for use in an IPR proceeding because those applications were not yet publicly accessible until after the priority date of the challenged patent.  This case has very significant implications because 102(a)(2) prior art is extensively used - especially in crowded and rapidly moving areas of technology.  The question, is whether this type of 102(a)(2) prior art qualifies as a "patent or printed-publication" under the IPR limits of section 311(b).   Note that the same issue is raised in  another pending CAFC case VLSI Tech. LLC v. Patent Quality Assurance LLC, No. 23-2298 (Fed. Cir.).

The dispute stems from an IPR petition filed by Samsung challenging claims of Lynk Labs' U.S. Patent No. 10,687,400 ("the '400 patent") related to LED lighting systems. Samsung's petition relied upon a prior-filed patent application ("Martin") as a key prior art reference. (Application No. 10/417,735 subsequently published as U.S. Patent App. Pub. No. 2004/0206970).  This prior application is not prior art under 102(a)(1) - because it was not patented or published until after Lynk's effective filing date. However, the prior application is prior art under the "secret springing prior art" provision of 102(a)(2), since it was on file prior to Lynk and then subsequently published.  I refer to this as "secret springing prior art" because Martin was only secretly on file at the time Lynk filed its application - later, once Martin published it suddenly became prior art --back dated to the application filing date.

The PTAB instituted review and ultimately found the challenged claims unpatentable based in part on the Martin reference.


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Federal Circuit Slices Through Patent Infringement Verdict: A Damage Apportionment Preview

The Federal Circuit recently issued a decision in Provisur Technologies, Inc. v. Weber, Inc., No. 23-1438 (Fed. Cir. Oct. 2, 2024), partially reversing a $10.5 million jury verdict in a patent infringement case involving food processing machinery. This decision marks the latest chapter in an ongoing legal battle between the two food processing equipment manufacturers. The case has a complex procedural history, including parallel inter partes review (IPR) that is now on petition to the U.S. Supreme Court.

This October decision covers some of the ground that the court may address in the upcoming en banc rehearing of EcoFactor v. Google, offering some foreshadowing of likely outcomes. Here, the court strongly sided with the accused infringer in requiring particularized apportionment related evidence before allowing a patentee to use the entire market value of a product as the royalty base.  In EcoFactor, the court will similarly focus on the evidentiary standard required of expert testimony on damages apportionment. Provisur was authored by Chief Judge Moore, one of the most 'pro patentee' judges -- signaling that patent owners are unlikely to smile when they read the EcoFactor decision.


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Diamond in the Rough: Can a Composition of Matter Claim Be an Abstract Idea?

by Dennis Crouch

US Synthetic Corp. v. ITC, Docket No. 23-01217 (Fed. Cir., pending appeal)

The United States International Trade Commission (ITC) is often seen as a pro-patentee venue -- but not for US Synthetics and its attempts to enforce its patents covering drill bit diamond tips.

In its October 2022 decision, the ITC found the asserted claims of USS's US10508502 invalid under 35 U.S.C. § 101 even though the patent claims polycrystalline diamond compacts ("PDCs") used in drill bits and other applications. The ITC's decision is now on appeal to the Federal Circuit, with oral arguments set for October 8, 2024.  PhRMA provided amicus support for the patentee, arguing that the ITC's decision represents an unprecedented expansion of abstract idea analysis to invalidate composition of matter claims. PhRMA contends such claims should be deemed inherently non-abstract and tangible, unlike computer programs that may rightfully be seen as mental processes or mathematical concepts.

Professor Jeffrey Lefstin (UC SF Law) provided an earlier blog post on the original ITC decision that included a detailed historical perspective on this case. Lefstin traced the evolution of functional claim language in patent law, from its initial rejection in cases like General Electric v. Wabash Appliance (1938) to its acceptance in In re Swinehart (1971). He argued that the ITC's decision in the PDC case, following the Federal Circuit's reasoning in American Axle, represents a dramatic shift away from decades of established patent jurisprudence. His analysis underscores the potential far-reaching implications of applying the American Axle framework to composition claims, suggesting it could invalidate many biotechnology patents and upend well-established enablement doctrines.


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USPTO announces End of AFCP 2.0

by Dennis Crouch

Termination of AFCP 2.0 Program: The USPTO has announced that the After Final Consideration Pilot (AFCP) 2.0 program will expire on December 14, 2024. This decision comes after the Office proposed implementing a new fee for AFCP 2.0 requests earlier this year, which received significant pushback.

Take-Home Points for Patent Practitioners:

  1. AFCP 2.0 has been popular with over 60,000 requests filed annually for the past 8 years.
  2. Last day for AFCP 2.0 requests: December 14, 2024
  3. Reason for termination: Program is costly and applicants do not provide any direct fee recovery.
  4. Proposed fee ($500 for large entities) was met with significant push-back.

As the USPTO bids farewell to this popular program, patent practitioners are focusing on reshuffling their after-final strategies.


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