Defense Side Amici Support for Tighter Reins on Damages Expert Testimony

by Dennis Crouch

Google’s pending en banc petition in EcoFactor v. Google has drawn significant  support from some tech giants, focusing on the application of Daubert standards to patent damages expert testimony. Five amicus briefs supporting Google’s position have been filed with the Federal Circuit, each arguing for stricter scrutiny of damages calculations and expert reliability in patent cases.  This post discusses the case and the issues presented by the amici army. (more…)

Policy Considerations: The On-Sale Bar for Secret Processes

by Dennis Crouch

In light of the Federal Circuit’s recent decision in Celanese v. ITC, it’s worth examining the policy implications of maintaining a strong on-sale bar that extends even to invalidate patents on secret processes when the resulting products have been commercialized. This rule is rooted in pre-AIA jurisprudence and is now affirmed under the AIA.

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Family Planning Patent Style: Allergan, Cellect, and the ODP Maze

by Dennis Crouch

Most U.S. utility patents are (or will eventually be) part of a patent family with at least one other U.S. patent. The recent rise in focus on obviousness type double patenting (ODP) has been unnerving to some, especially with the Cellect decision from 2023 that seemed to greatly expand the risk of family members colliding based upon differing expiration dates due to Patent Term Adjustment (PTA).

The Federal Circuit’s new ODP opinion in Allergan USA v. MSN Labs, 24-1061 (Fed. Cir. August 13, 2014), provides some major relief to patent portfolio holders, holding that “a first-filed, first-issued, later-expiring claim cannot be invalidated by a later-filed, later-issued, earlier-expiring reference claim having a common priority date.” This ruling provides a measure of protection for first-filed patents that receive substantial PTA, shielding them from ODP challenges based on their own continuations sharing the same priority date.

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No Sugar-Coating: Post-AIA Patent on Secret Process Barred by Pre-Filing Sale of Product

by Dennis Crouch

Although the result could have been guessed, the Federal Circuit has issued an important decision interpreting the scope of post-AIA 35 U.S.C. 102 — and the meaning of the “claimed invention.” Celanese Intl. Corp. v. Intl. Trade Comm’n,  22-01827 (Fed. Cir. August 12, 2024).   In particular, the court affirmed the precedent of D.L. Auld — i.e., the on-sale bar continues to block patenting of an otherwise secret process when the patentee makes pre-filing sales of product made using that process. The ITC had invalidated Celanese’ artificial sweetener manufacturing process patent based upon these pre-filing sales. That judgment was thus affirmed on appeal. (more…)

Zebra’s Stripes: Just So Stories about Patent Standing

by Dennis Crouch

The newest patent-focused petition for writ of certiorari to the Supreme Court was recently filed by Zebra Technologies, challenging the Federal Circuit’s determination that the a patentee had standing to sue for infringement even though  a third party separately held rights to assign, license, and enforce patent rights.

The case offers an increasingly common situation in patent litigation finance where the litigation funder is seeking legal assurances and collateral rights, but where those rights potentially risk stripping the patent owner from the exclusionary rights necessary to establish standing.  (more…)

Patently-O Updates for Friday, August 9, 2024

by Dennis Crouch

Welcome to August 2024.  This post offers a recap of some of the week’s events.

Democrat VP Nominee Gov. Tim Walz apparently owns no stocks. For those of us that do, this week experienced extremely high price volatility.  One of the biggest losers of the week (percentage wise) is Houston based FibroBiologics, Inc. (Nasdaq: FBLG) whose 3rd quarter Q-10 reported “substantial doubt about our ability to continue as a going concern.” The filing noted increased R&D costs, delay in clinical trials for their wound healing fibroblast treatments, and financing struggles.  The companies 150+ issued/pending patents (global) and are likely the company’s largest assets.   Currently pending APN 17/757,309 includes what seems to be a very broad claim of administering fibrobrasts to treat or prevent kidney disease:

1. A method of preventing or treating kidney disease in an individual having, or at risk of having, kidney disease comprising administering a prophylactically or therapeutically effective amount of fibroblasts, modified fibroblasts, and/or products derived from fibroblasts.

The examiner has not yet passed judgment on the claim.  Melissa Sistrunk at Norton Rose appears to be handling the prosecution. (more…)

Bleak House Revisited: Lemon Bay Cove and the Regulatory Takings Quagmire

by Dennis Crouch

A recently filed petition for writ of certiorari in Lemon Bay Cove, LLC v. United States highlights the longstanding difficulty in defining regulatory taking as well as determining when a regulatory takings claim becomes ripe for judicial review.  The brief was filed by the Pacific Legal Foundation, a public interest law firm that focuses largely on protecting private property against government intrusion and regulation.

Background: Lemon Bay Cove, LLC owns about 6 acres of intercoastal property in Charlotte County, Florida, north of Ft. Myers. In 2012, Lemon Bay applied to the U.S. Army Corps of Engineers for a permit to fill about 2 acres around Sandpiper Key to construct a 12-unit townhome development. After a nearly four-year process, the Corps denied the application with prejudice in 2016.

Lemon Bay then filed suit in the Court of Federal Claims, alleging that the Corps’ denial effected a per se regulatory taking under Lucas v. South Carolina Coastal Council, 505 U.S. 1003 (1992), by depriving the property of all economically viable use. (more…)

Means-Plus-Function Claims in Patent Eligibility and Infringement Analyses

by Dennis Crouch

Means-plus-function claims have generally been disfavored because of the tendency of courts to  either (1) narrowly construe their scope when corresponding structure is detailed in the specification or (2) render them invalid as indefinite when the specification lacks sufficient corresponding structure. If Impact Engine’s petition is well received, there is a good chance that this historically popular claim style will see a revival. 

The Federal Circuit’s recent decision in Impact Engine v. Google has again raised the issue of over the proper treatment of MPF, this time regarding patent eligibility and infringement analyses. Appeal No. 22-2291  (Fed. Cir. July 3, 2024).  I had skipped a write-up of the non-precedential decision, but now Impact Engine has petitioned for en banc review, arguing that (more…)

Federal Circuit Narrows AIA Grace Period: Public Disclosure Must Make Invention ‘Reasonably Available’

by Dennis Crouch

The Federal Circuit’s new decision in Sanho v. Kaijet highlights the narrowness of the pre-filing grace period (safe harbor) provision under the America Invents Act (AIA) and serves as a reminder that there are a number of patents that would have been valid under the pre-AIA patent system may no longer be valid under the current law. Sanho Corp. v. Kaijet Technology International Limited, Inc., No. 2023-1336 (Fed. Cir. July 31, 2024).

The basic holding is that the 102(a)(2)/(b)(2) safe harbor triggered by an inventor’s pre-filing “public disclosure” of the invention requires that the invention be made “reasonably available to the public.” Neither public uses nor private sales satisfy this requirement. This is a long post, because the issues are both important and interesting. In the end, I suggest a panel rehearing in the case because I believe that the Federal Circuit unfairly found forfeiture of key arguments whose resolution would help clarify the law. (more…)

Federal Circuit Slices the Bologna Thin with IPR Rehearing Waiver Decision

by Dennis Crouch

Voice Tech Corp. v. Unified Patents, LLC, No. 2022-2163 (Fed. Cir. Aug. 1, 2024)

Unified Patents is paid by its members to fight against non-practicing entity (NPE) patent assertions — often by challenge patent validity via inter partes review.  In this case, Unified challenged Voice Tech’s U.S. Patent No. 10,491,679 which covers technology for controlling a computer via a mobile device using voice commands. At the conclusion of the IPR, the Patent Trial and Appeal Board (PTAB) sided with Unified – finding all challenged claims (1-8) of the ‘679 patent unpatentable as obvious over the combination of two prior art references, Wong and Beauregard.  The PTAB also denied Voice Tech’s request for rehearing. On appeal, the patentee won a minor battle on waiver, but ultimately lost on the merits.

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NO FAKES Act: Unpacking the New Bipartisan Bill on Digital Replicas

Senators aim to rein in digital replicas with the “NO FAKES” Act which proposes a limited federal right to control one’s likeness using some DMCA-like notice-and-takedown elements.

Guest post by Professor Justin Hughes

This week, Senators Blackburn, Coons, Klobuchar, and Tillis introduced the bipartisan “NO FAKES” Act in Congress, a bill that has been under discussion for months and is intended to provide centerpiece legislation addressing the problem of digital replicas.  The recording industry (RIAA) and the actors’ union (SAGAFTRA) have been the leading proponents of such a law.  Senate Judiciary staff led a process with those groups–and with the Motion Picture Association (MPA)–that went through a long series of drafts.  AI companies were also part of the drafting process.

The bill is substantively complex and structurally complicated, partly the result of so many cooks in the kitchen.  What follows here are only the bill’s basics – as well as some concerns. (more…)

Presumption of Injunction: How the RESTORE Act Aims to Re-Empower Patent Holders

by Dennis Crouch

For the vast majority of American history, a judgment of patent infringement (by a court sitting in equity) led almost directly to injunctive relief barring ongoing infringement.  This construct was flipped by the Supreme Court’s 2006 decision in eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388 (2006), a case which served as the first major step of weakening patentee rights over the past two decades.  Now, a new bipartisan bill aims to restore the pre-eBay status quo. The Realizing Engineering, Science, and Technology Opportunities by Restoring Exclusive (RESTORE) Patent Rights Act of 2024, introduced by Senators Coons (D-Del.) and Cotton (R-Ark.), with a House companion bill from Representatives Moran (R-Texas) and Dean (D-Pa.), seeks to reshape and repair the availability of injunctive relief for patent holders.  As you’ll see, one nice element of the Bill is that it simply adds 1 sentence – creating a rebuttable presumption (more…)

Federal Circuit Closes Book on TRUMP TOO SMALL Trademark Saga

by Dennis Crouch

In a brief order, the Federal Circuit has put what appears to be the final nail in the coffin of Steve Elster’s attempt to register “TRUMP TOO SMALL” as a trademark.

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Degrees of Disagreement: Google Petitions En Banc on Smart Thermostat Patent Damages

by Dennis Crouch

Google recently petitioned for en banc review a Federal Circuit split decision in EcoFactor v. Google. The case focuses on when a damages expert testimony satisfies Daubert.  The original opinion also highlights an interesting debate regarding the appeal of pre-trial eligibility rulings.

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Lovevery Argues that APEX Jurisdiction Holding Undermines Anti-Counterfeiting Efforts

by Dennis Crouch

This is my third post about SnapPower (SnapRays) v. Lighting Defense, and the Federal Circuit’s holding that patentee’s who use Amazon’s patent enforcement process (APEX) to block infringing product sales open themselves to personal jurisdiction in the home state of the accused infringer. SnapPower v. Lighting Def. Group, 100 F.4th 1371 (Fed. Cir. 2024). In my view, the Federal Circuit has gone too far with aggressive personal jurisdiction in this case, and the patentee Lighting Defense has petitioned for en banc rehearing on the issue.

Most recently, toy-maker Lovevery has filed an amicus brief supporting en banc review. (more…)

Deja Vu All Over Again: SCOTUS Asked Again to Revisit Patent Eligibility

by Dennis Crouch

Return Mail recently filed its petition for certiorari with the Supreme Court, seeking a broader scope of patent eligibility under 35 U.S.C. § 101. You may remember that Return Mail won its case before the Supreme Court a few years ago. Return Mail, Inc. v. United States Postal Service, 587 U.S. 618 (2019) (federal agencies are not “any person” under the AIA and therefore cannot challenge patents via IPR). (more…)

Obtaining vs. Maintaining: How SoftView v. Apple Reshapes Patentee Estoppel

by Dennis Crouch

This is our second discussion of collateral estoppel in as many days.  Yesterday I wrote about Koss v. Bose, a case where the Federal Circuit concluded that a district court’s final judgment of invalidity had a preclusive effect on USPTO IPR analysis — rendering the patentee Koss’s appeal moot.   Today’s focus is on SoftView v. Apple, and a focus on the USPTO’s estoppel regulations as they apply between an IPR and reexamination proceeding. Case No 23-1005 (Fed. Cir. July 26, 2024). (more…)

Clever Pleading Can’t Save Koss’s Patents from Issue Preclusion Invalidity

by Dennis Crouch

Koss Corporation v. Bose Corporation, 22-2090 (Fed. Cir. July 19, 2024)

In its final written decisions, the PTAB found a number of Koss patent claims invalid and Koss appealed to the Federal Circuit. In the end, though the appellate panel found the appeals moot because all the claims had been invalidated in parallel district court litigation. Although the prior litigation involved a different party (Plantronics), Bose was able to take advantage of that invalidation decision under the doctrine of non-mutual collateral estoppel established by the Supreme Court in Blonder-Tongue Lab’ys, Inc. v. Univ. of Ill. Found., 402 U.S. 313 (1971).

Koss attempted a clever pleading trick (more…)

Patent Puzzles after the Supreme Court’s 2024 Administrative Law Cases: Stare Decisis, Rulemaking, and Discretion

Guest post by Arti K. Rai, Elvin R. Latty Distinguished Professor of Law and Co-Director, Center for Innovation Policy at Duke Law

In a flurry of recent decisions, the Supreme Court has continued its skepticism of administrative agencies.  Although these decisions may not have as significant an impact in patent law as in other areas, they do pose interesting puzzles with respect to stare decisis as well as agency rulemaking and discretion that will provide many litigation opportunities going forward. (more…)