Posts Tagged: "PTAB"

Cisco challenged Cirrex’s patent via inter partes reexamination, asserting a lack of written description. The Board affirmed the Examiner’s findings, that the patent, as amended, contained both patentable and unpatentable claims. On appeal, the Federal Circuit affirmed in part and reversed in part, holding that all of the claims are unpatentable for lack of written description.

The Federal Circuit vacated and remanded the PTAB’s decision in an inter partes review proceeding, finding the Board did not set forth its reasoning for finding the asserted claims obvious in enough detail for the Court to determine whether it was supported by substantial evidence… The Board also did not set forth its reasoning in sufficient detail for the Court to determine whether its obviousness decision was procedurally proper. The Board must comply with certain procedural requirements in conducting an inter partes review under the Administrative Procedure Act (APA), including informing the patent owner of “the matters of fact and law asserted,” give the patent owner an opportunity to submit facts and arguments, and permit the patent owner to submit rebuttal evidence.

In the case of Aylus Networks, Inc. v. Apple Inc., the Federal Circuit affirmed the district court’s finding of summary judgment for Apple Inc. (“Apple”). The Court held that statements made by a patent owner during an inter partes review (“IPR”) proceeding, whether before or after an institution decision, can be relied upon to support a finding of prosecution disclaimer… To invoke prosecution disclaimer, the statements must constitute a clear and unmistakable surrender of claim scope. If a prosecution argument is subject to more than one reasonable interpretation, it cannot rise to the level of a clear and unmistakable disclaimer.

The U.S. Court of Appeals for the Federal Circuit issued a non-precedential decision in Intellectual Ventures II, LLC v. Ericsson, Inc. (2016-1739, 2016-1740, 2016-1741) directed to three related IPRs, denying that the patentee was denied due process when the Patent Trial and Appeal Board (the “Board”) employed a “surprise” claim construction in its opinion that had not been explicitly argued by either side to find the claims obvious. Because the Federal Circuit decided that the patentee had both notice and an opportunity to respond, it held that no due process violation occurred.

On Thursday, May 11, 2017, I submitted a Freedom of Information Act (FOIA) request (see bottom) to the United States Patent and Trademark Office (USPTO). My FOIA request seeks a copy of any and all rules of judicial conduct, ethical policies and/or codes of professional or judicial conduct that apply to Administrative Patent Judges (APJs) of the Patent Trial and Appeal Board (PTAB).

In a rare IPR affirming patentability, the Patent Trial and Appeal Board (the “Board”) found claims of US Patent No. 6,945,013 to be patentable that were directed to a “method for automatically aseptically bottling aseptically sterilized foodstuffs” in which bottles are “aseptically disinfected at a rate greater than 100 bottles per minute”. However, this unusual pro-patentee outcome was too much for the Federal Circuit. It ultimately vacated and remanded on claim construction grounds, thus highlighting the success of IPRs in achieving their goal of judicial economy.

Patlex, which dealt with reexamination of applications by an examiner — not by an Article I tribunal — could be considered a next step beyond McCormick. MCM, however, simply cannot be viewed as consistent with either Patlex or McCormick on any level. Indeed, the Supreme Court was abundantly clear in McCormick, which remains good law. The courts of the United States (i.e., Article III courts), not the department that issued the patent, is the only entity vested with the authority to set aside or annul a patent right. Since the PTAB is not a court of the United States, it has no authority to invalidate patent rights. It is just that simple.

Today, Judge Newman is the Federal Circuit’s most prolific dissenter, and her dissents are important. Former Chief Judge Paul Michel noted that “Judge Newman may hold the record for the most dissents. But her dissents have great force and often persuade other colleagues over time.” Judge Kimberly Moore concurred, saying “[w]hat people may not realize is that many of her dissents have later gone on to become the law—either the en banc law from our court or spoken on high from the Supremes.” She noted that “Merck v. Integra comes to mind. It’s a case where she wrote a very strong dissent. The Supreme Court took it and not only changed the state of the law to reflect what she had written, but they cited her outright in the opinion.”

“The results from the Patent Trial and Appeal Board reflect the procedures it applies, and in my judgment the procedures are wildly off base,” Judge Michel explained… “We’ve had PTAB final results… whatever the intentions were we don’t have to speculate… we have ample evidence of how it worked in practice. We know it doesn’t work satisfactorily.” *** “I don’t think things are really getting much better,” Kappos said. “We are in what I refer to as the leaky life raft.” When you are stranded and a leaky life raft comes along it looks great, but it doesn’t change the fact that it is still a leaky life raft. “The best you can say about 101 is that it has stabilized in a terrible space.”

Ruschke’s claim that only PTAB judges familiar with the technology involved are assigned in ex parte appeals seems false based on what we know has happened in at least one high-profile matter. As previously mentioned, in Ex parte Hiroyuki Itagaki the PTAB ruled a magnetic resonance imaging (MRI) machine to be patent ineligible because it is an abstract idea. See PTAB rules MRI machine an Abstract Idea. Judge Hubert Lorin, who authored the opinion in Itagaki, has a B.S. in Chemical Engineering and a B.S. in Chemistry according to his LinkedIn profile. Similarly, Judge Matthew Meyers, who was also on the panel, has a B.S. in Biology according to his LinkedIn profile. The third judge, Judge Bibhu Mohanty, does not list his technical expertise on his LinkedIn profile, but we have been told his expertise is also in the chemical area. Therefore, the PTAB does in at least some cases assign cases to judges who are not technically trained in the technology area of the invention

The blindfold appearing in the common depiction of Lady Justice is there for a reason. According to Wikipedia, Lady Justice has been depicted with a blindfold since at least the 16th century, with the blindfold representing impartiality. When impartiality of the system, or the judges who are charged with administering the system, is questioned it is a very big deal… We have found yet another example of a situation where an PTAB judge has issued a decision and is participating in post grant administrative proceedings as a judge in a case where a former client is the petitioner.

The relationship between PTAB proceedings and parallel district court litigation may be altered significantly. The arguments in Wi-Fi One vs. Broadcom this week may change a lot about PTAB. In fact, the U.S. Court of Appeals for the Federal Circuit has announced that it will hear the question of whether certain decisions of the PTAB that are entered at the beginning of America Invents Act (AIA) trials.

This data set shows that Oral Hearings are rarely conducted. (See Figure 1.) Across the 72,443 appeals, only 459 (0.63%) appeals had an Oral Hearing… As shown in Figure 4, Oral Hearings were associated with more full-rejection reversals (blue bars). Specifically, the full reversals accounted for 40.3% of the appeals with Oral Hearings, as compared to 32.5% of the appeals without Oral Hearings.

In prepared remarks Director Lee said the Office must significantly raise Patent Trial and Appeal Board (PTAB) fees in order for the PTAB to be self-sustaining on a going forward basis. On one hand the fact that Director Lee acknowledged that the PTAB is not self-funding is significant, but her comments dramatically under played what seems to be really happening at the PTAB. The reality appears to be that patent owners and patent applicants are subsidizing the PTAB… [I]t seems the PTAB has been operating at a substantial deficit for some time and even with significant fee increases the Office continues to plan to run PTAB trials at a deficit, which means patent owners and patent applicants will be subsidizing the PTAB and infringers challenging patents moving forward. To call this outrageous is an understatement.