Presumption of Validity Affirmed by Supreme Court

Today, the Supreme Court issued a unanimous decision in the closely watched case of Microsoft v. i4i . As discussed at length previously, Microsoft sought Supreme Court review of the following issue:

Whether the court of appeals erred in holding that Microsoft’s invalidity defense (which rested on prior art never considered by the USPTO) must be proved by clear and convincing evidence.

Today the Supreme Court affirmed the CAFC’s earlier decision upholding the clear and convincing standard, much to the relief of stakeholders everywhere. (save Microsoft of course)

The holding (here) explained that although 35 U.S.C. § 282 does not provide for a specific standard of proof, the statute’s use of the terminology “presumed valid” connotes such a meaning based on

Continue Reading i4i Defeats Microsoft Challenge to Clear & Convincing Standard

Meeting Materials & Webcast Replay Provided

As mentioned previously, the USPTO has today posted the presentations and papers from the speakers of last week’s meeting. The materials can be found (here) along with a replay of the webcast (to be up later in the week). Earlier this week, I provided an overview of

Important Decision Attempts to Address Plague of Inequitable Conduct Accusations in Patent Litigation

Today the CAFC decided Therasense Inc. v. Becton Dickinson and Co. In this landmark decision, the CAFC reconsidered the doctrine of inequitable conduct, deciding that:

While honesty at the PTO is essential, low standards for intent and materiality have inadvertently led to many unintended consequences, among them, increased adjudication cost and complexity, reduced likelihood of settlement, burdened courts, strained PTO resources, increased PTO backlog, and impaired patent quality. This court now tightens the standards for finding both intent and materiality in order to redirect a doctrine that has been overused to the detriment of the public. (Decision at 24) (full decision here)

As previously discussed, this decision will have an important impact on patent reexamination practice, as well as application prosecution in relation to the duty of disclosure, good faith, and candor. With the tightening of the materiality standard, (described below) monstrous IDS filings may now be a remnant of the past.

Interestingly, the CAFC has now adopted a “but for” standard of materiality, such as employed in a Walker Process claim (antitrust).

Continue Reading What Does the Therasense Decision Mean for Patent Reexamination?

Flawed Patent Reexamination Request A Matter of National Importance?The strange case of Lockwood v. Sheppard, Mullin, Richter & Hampton continues with a petition to the Supreme Court. In the petition, the plaintiff urges that the effective operation of the USPTO is protected by state law, and that the undermining of the system caused by sham reexamination requests is a matter of national importance. As a reminder, in this case the plaintiff accused the defendant law firm (Sheppard Mullin), and two of its attorneys, of malicious prosecution relating to an alleged “sham patent reexamination.”  The California court determined that the state law cause of action was preempted by federal law (i.e., the USPTO has jurisdiction over practitioner conduct); this holding was appealed to the CAFC. A week after oral arguments the lower court decision was affirmed per curiam. (See earlier posts here and here)Undeterred, the plaintiff is now seeking Supreme Court review of the dispute. (petition here). The petition presents the issue as follows:Whether under the implied preemption principles in Buckman, federal patent law bars an aggrieved patent owner-plaintiff from asserting a state law claim seeking relief for harm to patent property rights caused by a private party maliciously initiating a sham administrative patent reexamination proceeding before the U.S. Patent and Trademark Office, where “fraud on the agency” is not an element of the claim, and where the agency itself cannot remedy the harm addressed by state law.Although dressed in terms of a federal preemption issue, the petition is quite heavy on the facts of the Lockwood dispute. The odds of this petition being granted seem slim to say the least. The Plaintiff has previously urged that the USPTO does not discipline practitioners for such “sham” actions, and that the harm done to the plaintiff is beyond the reach of the agency. The plaintiff has offered little more than conclusory statements with regard to the alleged malicious prosecution and harm. Seems to me that even if the case were allowed to proceed the plaintiff would have some difficulty showing that the request was truly malicious; likewise, the harm is also quite speculative.As I have commented in previous posts, in addressing the “sham” merits of the patent reexamination, Lockwood chose not to filed a Patent Owner Statement disputing the order. Moreover, Lockwood could have petitioned to have the reexamination vacated as ultra vires, but did not. (based on request referencing  products, not the underlying publications). Very odd behavior for a defendant so wronged by a “sham” filing. Further, the reexamination was delayed more by Lockwood trying to add a method claim than anything else. The method claim was deemed broadening since the issued patent had none. Lockwood added 22 new claims, this certainly was not harmful.Strange that this dispute has been pursued this f

The strange case of Lockwood v. Sheppard, Mullin, Richter & Hampton continues with a petition to the Supreme Court. In the petition, the plaintiff urges that the effective operation of the USPTO is protected by state law, and that the undermining of the system caused by sham reexamination requests is a matter of national importance. 

As a reminder, in this case the plaintiff accused the defendant law firm (Sheppard Mullin), and two of its attorneys, of malicious prosecution relating to an alleged “sham patent reexamination.”  The California court determined that the state law cause of action was preempted by federal law (i.e., the USPTO has jurisdiction over practitioner conduct); this holding was appealed to the CAFC. A week after oral arguments the lower court decision was affirmed per curiam. (See earlier posts here and here)

Undeterred, the plaintiff is now seeking Supreme Court review of the dispute. (petition here). The petition presents the issue as follows:

Whether under the implied preemption principles in Buckman, federal patent law bars an aggrieved patent owner-plaintiff from asserting a state law claim seeking relief for harm to patent property rights caused by a private party maliciously initiating a sham administrative patent reexamination proceeding before the U.S. Patent and Trademark Office, where “fraud on the agency” is not an element of the claim, and where the agency itself cannot remedy the harm addressed by state law.

Although dressed in terms of a federal preemption issue, the petition is quite heavy on the facts of the Lockwood dispute. The odds of this petition being granted
Continue Reading Dispute Over Proper Use of Patent Reexamination Pursued to Supreme Court

USPTO Cuts Expenses to Account for $85-100 Million ShortfallIn an email today to all USPTO staff, Director Kappos explained that the agency will be unable to spend the $85-100 million in fees being collected in FY 2011. Thus, effective immediately, and likely beyond the end of FY 2011 (September 30, 2011) the following cost cutting