Posts Tagged: "reexamination"

The final decision in the ITC case brought by Kodak is expected by May 23, 2011, after deliberation of the full ITC Commission. As we wait for the full ITC Commission decision we are left to wonder. The patent at issue relates to a technology invented by Kodak for previewing images on a digital camera-enabled device and the claims of this particular Kodak patent were recently confirmed as valid by the U.S. Patent and Trademark Office (USPTO). So it would seem that the ITC may be poised to issue a ruling contrary to the determination of the Patent Office during reexamination proceedings.

I am really looking forward to these PLI programs in particular. I will be signed up to attend via webcast the programs I cannot make live, and I will be in in Chicago, IL in March for the Patent Bar Review Course and in New York City for the 5th Annual Patent Law Institute from February 17-18, 2011. If your firm is a privileged member you can attend these and all other PLI programs for free, with the exception of the Patent Bar Review Course.

Typically the Patent Office allows patent owners and third parties to sort out whether a reexamination is necessary. The thought process is that there is no need to waste precious examining resources to reexamine a patent that no one cares about or is enforcing. Thus, something out of the ordinary happened here, although what exactly is impossible to tell. Perhaps the Patent Office was taking some heat on Capitol Hill for these types of patents or perhaps someone just stumbled on something that made them scratch their heads and wonder. It is all just a matter of speculation.

At the end of December, we learned that Microsoft had petitioned the PTO Director to order reexamination of the ‘449, and this morning that petition has been released to the public. It shows that Microsoft’s chances at the Patent Office are not so long after all, that Microsoft’s argument for reexamination are stronger than many thought. The concerns about the “clear and convincing” standard being abandoned by the Supreme Court may not be justified – there is a real prospect that the Microsoft-i4i dispute could be resolved in the reexamination, without the need for the Supreme Court to reassess the burden of proof standard for accused infringers.

The Board’s analysis might interest patent prosecutors who routinely face rejections based on “applicant’s admissions,” not to mention the applicants who feel obliged to submit hundreds of litigation documents to comply with the duty of disclosure. Similarly surprised will be the litigators who ask whether admissions in pleadings are binding or can be withdrawn, not whether they are admissible. The Board’s refusal, because of lack of resources, to compare Smucker’s accused commercial squeeze bottle with the disclosure of the Seaquist reference is also open to question, especially since there does not appear to be any dispute regarding the structure of Smucker’s commercial nozzle. Reexamination practitioners take note.

Article One Partners announced yesterday that patents held by NTP Incorporated are the focus of three new requests for research, which Article One Partners refers to as Patent Studies. NTP was made famous for its litigation against BlackBerry maker Research-in-Motion (RIM) that resulted in a settlement north of $600 million. New litigation by NTP has expanded the assertion of patent infringement to other top players in the mobile and smartphone industry, which is prompting Article One Partners to engage their global community of researchers by challenging them to identify evidence predating the patents in question and which can be used to invalidate one or more of the patent claims owned by NTP.

Two months ago I wrote about one of my favorite patents — The Animal Toy — which is U.S. Patent No. 6,360,693. See Patent on a Stick: Learning from the Animal Toy Patent. Shortly after writing that article, which was not intended to poke fun at the Patent Office but to merely teach a point relative to claim drafting, I received an e-mail from Stephen Kunin, who is a partner at Oblon Spivak, LLP. Steve wrote to me indicating that this patent was reexamined by the Patent Office and none of the claims exited reexamination. This in and of itself may not be very odd, but something didn’t seem quite right.

Earlier today the United States Supreme Court granted certiorari in Microsoft Corporation v. i4i Limited Partnership, with Chief Justice John Roberts taking no part in the decision or petition. This comes only days after the United States Patent and Trademark Office refused to grant reexamination of the patent in question. Given Microsoft doesn’t even have strong enough prior art to provoke a reexamination by the USPTO it seems absurd to think they could have been victorious even if the district court reviewed the patent claims de novo and without any presumption.

Funai appealed the examiner’s rejection to the PTO Board which conducted oral argument on August 18th. The CAFC’s earlier decision in favor of Funai was mentioned in passing, but the Judges seemed largely indifferent to it. Counsel for Funia remarked that “at this point the Examiner has adopted our claim construction, which was also adopted by the [ITC], which I know is not [binding] on this Board, and affirmed by the Federal Circuit.” One of the Judges spoke up “…did you say it was affirmed by the Federal Circuit?” Yes, replied counsel, “[i]t should be in the record….” The Judges and counsel then proceeded to discuss the merits of the appeal without further mention of the earlier appellate decision.

On Monday, September 22, 2010, the United States Patent and Trademark Office announced via Federal Register Notice that the Office is considering pro-business strategies for incentivizing the development and widespread distribution of technologies that address humanitarian needs. One proposal being considered is a fast-track ex parte reexamination voucher pilot program to create incentives for technologies and licensing behavior that address humanitarian needs. Under the proposed pilot program, patent holders who make their technology available for humanitarian purposes would be eligible for a voucher entitling them to an accelerated re-examination of a patent. Given that patents under reexamination are often the most commercially significant patents, it is believed that a fast-track reexamination, which would allow patent owners to more readily and less expensively affirm the validity of their patents, could provide a valuable incentive for entities to pursue humanitarian technologies or licensing.

I am skeptical about the prospects for invalidating patents on drugs, particularly important or blockbuster drugs. I also question whether anti-patent do-gooders in the biotech and pharma space are really causing more harm than good through attempts to bust patents on blockbuster drugs. According to their own press release, PUBPAT acknowledges that the tablet is heat stable and does not need to be refrigerated like prior versions of the drug. They seemingly make the argument, although not directly, that because this makes it much more convenient for patients it is unfair to charge prices sufficient to recoup R&D and a premium to make the speculative R&D reasonably profitable for investors. Of course, the fact that the drug in question is extremely convenient for patients is not a reason to invalid the claims, and in fact is likely a compelling reason why in this instance the patent claims cover a truly novel and nonobvious innovation.

I don’t know why Microsoft didn’t present all the prior art in the Texas case sooner, and I can’t explain why they might have wanted to wait until after asking the Supreme Court to take the appeal before filing the most recent reexamination request. One thing is for certain though: Microsoft would be in a much better position at this point if it had filed the request a year ago. Had they filed the request sooner they might already be at advisory action stage now, which could have provided a stronger case for refusing to enjoin the defendant as was the case in Flexiteek Americas.

The sequence of events of In re Swanson is well known. Judge James Cohn of the Southern District of Florida has now taken the Swanson approach one step further – in Flexiteek Americas v. PlasTEAK (Case No. 08-60996-civ-Cohn/Seltzer) he has withdrawn a permanent injunction on basis of an advisory action in a reexamination, which found the patent-in-suit to be invalid.

I can’t tell you the reason why companies choose to be targets, but I think I have a compelling idea. Those companies that are the ones who complain about patent trolls are also the ones who continually are on Capitol Hill lobbying for patent reform, which in their mind is really only appropriate when it makes issued patents easy to challenge and much more difficult to get. These are the folks who built their corporate empires on patents, growing from small company to mega-giant company while building an enormous intellectual property portfolio heavily dominated with patents that gave them a competitive advantage. Now that they have their market dominant position they really don’t need the patents so much because they have their market power to insulate them from competition, so they want to make it harder for the next individual inventor, start-up tech business or small business to innovate, protect and grow up the corporate food chain.

Cumulative statistics released by the USPTO demonstrate steady growth in the number of requests for reexamination being filed generally (particularly inter partes) since the advent of third-party participation in 1999. Between January 1, 1999 and December 31, 2009 the USPTO Official Gazette noticed 5,594 requests for reexamination. Of these, 97 or 1.7% were requests for reexamination of design patents. Of these 97 reexaminations, 85 or 88% were ex parte and 12 or 12% were inter partes.