Posts Tagged: "substitute claims"

CAFC: PTAB Did Not Improperly Place Burden of Persuasion on Nike to Prove Unpatentability of Substitute Claims

On September 1, the U.S. Court of Appeals for the Federal Circuit (CAFC) affirmed a decision by the Patent Trial and Appeal Board (PTAB) finding that the PTAB did not improperly place the burden of persuasion for proving unpatentability of proposed substitute claims raised sua sponte by the Board on Nike and that substantial evidence supports the PTAB’s obviousness analysis. The decision comes after two prior rulings by the CAFC in related cases between Nike and Adidas. The present appeal concerned the PTAB’s determination that proposed substitute claim 49 of Nike’s U.S. Patent No. 7,347,011 (‘011 patent) was unpatentable as obvious.

What the PTAB’s Precedential Decisions on Live Testimony and Substitute Claims Mean for PTAB Litigation

On Monday, March 18, 2019, the Patent Trial and Appeal Board (PTAB) designated three decisions as precedential. Two of the three decisions—K40 Electronics LLC v. Escort Inc. (“K40 Electronics”),[AIA, live testimony at oral argument] and DePuy Synthes Products Inc. v. Medidea LLC (“DePuy Synthes Prods”) [AIA, live testimony at oral argument]—explained the limited circumstances in which live testimony may be allowed during PTAB proceedings. The third decision, Amazon.com Inc. v. Uniloc Luxembourg SA (“Amazon.com”) [AIA § 316(d), grounds that can be raised against substitute claims], affirmed that the PTAB has the authority to consider whether substitute claims are patentable on more grounds than just novelty and non-obviousness. The recent designations not only provide guidance to prospective litigants in PTAB proceedings, but develop the scope of PTAB litigation as a viable alternative to district court litigation.

Federal Circuit Vacates Board’s IPR Decision on Patentability of Substitute Claims

Finally, the Court held that the Board’s denial of Nike’s motion to amend for failure to show patentable distinction over “prior art not of record but known to the patent owner” was improper. The Court held that the Board’s finding that Nike’s “conclusory statement” was “factually inadequate” under its interpretation of the Idle Free decision was too rigid and was an improper ground to deny Nike’s motion. Accordingly the Court affirmed in part, vacated in part, and remanded the decision to the district court.