As Predicted, Federal Circuit Rules Isolated DNA Patentable
|Written by Gene Quinn
Patent Attorney & Founder of IPWatchdog
Zies, Widerman & Malek
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Posted: Jul 29, 2011 @ 2:12 pm
On March 29, 2010, Judge Sweet of the United States Federal District Court for the Southern District of New York issued a 152 page opinion determining that isolated DNA molecules were not patent eligible subject matter, setting of 16 months of intense debate on the issue. This lead me to on March 31, 2010, write Hakuna Matada, the ACLU Gene Patent Victory Will Be Short Lived, which in fact has turned out to be the case, but this fight seems far from over, perhaps with additional appeals yet to come. Notwithstanding, upon closer scrutiny the ultimate holdings in the decision are by and large 3 – 0, with only Judge Bryson dissenting relative to the BRCA gene claims.
Judge Lourie was the linchpin vote regarding patent eligibility of all of the isolated DNA molecules and the diagnostic method claims, finding overlapping support with Judge Moore on most issues and also with Judge Bryson for the most part. Judge Moore agreeded with the majority regarding patent eligibility of the method claims and the cDNA claims, both for the same reasons announced in the majority opinion. However, Judge Moore only concurred in the outcome relative to the other sequences. Judge Bryson agreed with the majority opinion relating to patent eligibility of the method claims and the cDNA claims, but would have found the BRCA gene claims to constitute unpatentable subject matter. Finally, there was complete unanimity of the Judges on the standing issue.
1. Standing: 3 – 0
2. Method claims: 3 – 0
3. cDNA claims: 3 – 0
4. non-cDNA claims: 2 – 1
Nevertheless, with all of the hype surrounding this case, with three separate and lengthy opinions (by CAFC standards) and with the Federal Circuit showing interest in recent years to hear fundamentally important cases en banc, I suspect this case may be headed for en banc consideration by the entire Federal Circuit. I suspect Judges Lourie, Moore and Bryson do as well, or perhaps they are anticipating an appeal to the Supreme Court. Each of the decisions are written as if there is a broader audience in mind; namely others on the Federal Circuit or those 9 Justices located on the corner of First Street, NE and Maryland Avenue.
As for the ruling itself, in a nutshell, here is what the majority opinion held:
On the threshold issue of jurisdiction, we affirm the district court’s decision to exercise declaratory judgment jurisdiction because we conclude that at least one plaintiff, Dr. Harry Ostrer, has standing to challenge the validity of Myriad’s patents. On the merits, we reverse the district court’s decision that Myriad’s composition claims to “isolated” DNA molecules cover patent-ineligible products of nature under § 101 since the molecules as claimed do not exist in nature. We also reverse the district court’s decision that Myriad’s method claim to screening potential cancer therapeutics via changes in cell growth rates is directed to a patent-ineligible scientific principle. We, however, affirm the court’s decision that Myriad’s method claims directed to “comparing” or “analyzing” DNA sequences are patent ineligible; such claims include no transformative steps and cover only patent ineligible abstract, mental steps.
Given that Judge Moore’s opinion was the swing decision relative to the BRCA gene claims it deserves to be the focal point in any understanding of what this Federal Circuit decision really means. Let’s begin with Judge Moore’s opening in her opinion, characterized as concurring in part:
I join the majority opinion with respect to standing and the patentability of the method claims at issue. I believe, however, that claims directed to isolated DNA sequences present a different set of issues. I join the majority with respect to claims to isolated cDNA sequences, and concur in the judgment with respect to the remaining sequences.
At one point in her concurring opinion, Judge Moore would wrote: “If I were deciding this case on a blank canvas, I might conclude that an isolated DNA sequence that includes most or all of a gene is not patentable subject matter.” This sentence no doubt causes patent proponents to take a gasping deep breath. This, however, comes across far stronger than it should and is an overstatement of Judge Moore’s considered views.
Earlier in her opinion Judge Moore explained that “the cDNA claims present the easiest analysis.” Judge Moore wrote that “cDNA sequences do not exist in nature,” and they “have a distinctive name, character, and use, with markedly different chemical characteristics from either the naturally occurring RNA or any continuous DNA sequence found on the chromosome. The claimed isolated cDNA sequences are the creation of man…” Therefore, when Judge Moore writes of possibility of having decided the case differently had it been a matter of first impression, she is clearly referring to the BRCA claims, not all isolated DNA sequences.
Judge Moore then went on to write at length about settled expectations of the industry and the fact that Congress has long urged an expansive view of what ought to be considered patent eligible subject matter. She wrote:
This case, however, comes to us with a substantial historical background. Congress has, for centuries, authorized an expansive scope of patentable subject matter. Likewise, the United States Patent Office has allowed patents on isolated DNA sequences for decades, and, more generally, has allowed patents on purified natural products for centuries. There are now thousands of patents with claims to isolated DNA, and some unknown (but certainly large) number of patents to purified natural products or fragments thereof… I believe we must be particularly wary of expanding the judicial exception to patentable subject matter where both settled expectations and extensive property rights are involved. Combined with my belief that we should defer to Congress, these settled expectations tip the scale in favor of patentability.
In the end Judge Moore was simply unwilling to support a new judicially created exception to patentability in light of the history of the patent laws and expectations within the industry.
Next, in a nutshell, here is what Judge Bryson wrote in his opinion, which was concurring in part and dissenting in part:
I concur with the portions of this court’s judgment that are directed to standing, the patentability of the cDNA claims, and the patentability of the method claims. I respectfully dissent, however, from the court’s holding that Myriad’s BRCA gene claims and its claims to gene fragments are patent-eligible. In my view, those claims are not directed to patentable subject matter, and if sustained the court’s decision will likely have broad consequences, such as preempting methods for whole genome sequencing, even though Myriad’s contribution to the field is not remotely consonant with such effects.
As you can probably imagine, there is much left to be said about this case. Judge Lourie’s majority opinion was 54 pages, Judge Moore’s concurring opinion was 31 pages and Judge Bryson’s opinion concurring in part and dissenting in part was 19 pages. Having just come out this morning it is impossible to have a considered, nuanced view of the case only hours later. As many will do, I will study the case and cogitate. Rather than enjoying any summer reading on my flight to Chicago on Monday (where I will teach the PLI patent bar review course next week) I will be pouring over this decision. Many a discussion with John White will likely focus on the case, and I am looking forward to touching base with the Patent Docs, Kevin Noonan and Donald Zuhn, while in Chicago.
Check back in the coming weeks for additional analysis. In the meantime, Hakuna Matada! The Federal Circuit reached the correct decision!After much anticipation, the United States Court of Appeals for the Federal Circuit earlier today issued a
About the Author
Gene Quinn is a US Patent Attorney, law professor and the founder of IPWatchdog.com. He is also a principal lecturer in the top patent bar review course in the nation, which helps aspiring patent attorneys and patent agents prepare themselves to pass the patent bar exam. Gene started the widely popular intellectual property website IPWatchdog.com in 1999, and since that time the site has had many millions of unique visitors. Gene has been quoted in the Wall Street Journal, the New York Times, the LA Times, USA Today, CNN Money, NPR and various other newspapers and magazines worldwide. He represents individuals, small businesses and start-up corporations. As an electrical engineer with a computer engineering focus his specialty is electronic and computer devices, Internet applications, software and business methods.