Ariad Pharmaceuticals, Inc. v. Eli Lilly and Co.

560 F.3d 1366, 90 U.S.P.Q. 2d (BNA) 1549, 2009 U.S. App. LEXIS 6915, 2009 WL 877642
CourtCourt of Appeals for the Federal Circuit
DecidedApril 3, 2009
Docket2008-1248
StatusPublished
Cited by17 cases

This text of 560 F.3d 1366 (Ariad Pharmaceuticals, Inc. v. Eli Lilly and Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ariad Pharmaceuticals, Inc. v. Eli Lilly and Co., 560 F.3d 1366, 90 U.S.P.Q. 2d (BNA) 1549, 2009 U.S. App. LEXIS 6915, 2009 WL 877642 (Fed. Cir. 2009).

Opinions

MOORE, Circuit Judge.

Plaintiffs-Appellees Ariad Pharmaceuticals, Inc., Massachusetts Institute of Technology, the Whitehead Institute for Biomedical Research, and the Presidents and Fellows of Harvard College (collectively, Ariad) sued Defendant-Appellant Eli Lilly and Company (Lilly) in the United States District Court for the District of Massachusetts for infringement of claims 80, 95,144, and 145 (the asserted claims) of U.S. Patent No. 6,410,516 (the '516 patent). A jury found infringement of claims 80 and 95 with respect to Lilly’s drug Evista, and claims 144 and 145 with respect to Lilly’s drug Xigris. The jury also concluded that the asserted claims were not invalid for anticipation, lack of enablement, or lack of written description.

' Both at the close of Ariad’s case-in-chief and again after the jury verdict, Lilly moved for judgment as a matter of law (JMOL) that the asserted claims were not infringed and were invalid for anticipation, lack of enablement, or lack of written description. Following a separate bench trial, the district court ruled that the asserted claims were directed to patentable subject matter and that the '516 patent was not unenforceable due to inequitable conduct or prosecution laches. Ariad Pharms., Inc. v. Eli Lilly & Co., 529 F.Supp.2d 106 (D.Mass.2007). Lilly appeals several rulings, including the court’s denial of its JMOL motion and the court’s ruling on inequitable conduct. For the reasons set forth below, we reverse-in-part and affirm-in-part.

BACKGROUND

The technology in this case involves gene regulation. Transcription factors are molecules found in cells that regulate the extent to which genes are expressed. There are hundreds of different transcription factors that perform in concert with other molecules in the cell to control cellular behavior. Unsurprisingly, this network of cellular signals is fertile ground for the development of therapeutic compounds. In the mid-1980s, the inventors of the '516 patent discovered an important transcription factor that they named NF-kB. NF-kB is akin to an all-purpose cellular paramedic. When the cell receives a harmful extracellular influence, such as li-popolysaccha rides produced by bacteria, NF-kB is activated. Once activated, NF-kB travels to the nucleus of the cell and fulfills its role as a transcription factor, inducing the expression of numerous genes and causing the cell to produce the corresponding proteins. These proteins, for example certain cytokines, help the cell survive the extracellular influence, but they can be harmful in excess — not unlike how a fever is thought to combat infection but can cause harm if left unchecked. Once the offending extracellular influence diminishes, for example, following the administration of antibiotics for a bacterial infec[1370]*1370tion, NF-kB activity decreases and the cell returns to its original state.

The inventors of the '516 patent further realized that if NF-kB activity could be reduced artificially, it could ameliorate the harmful symptoms of diseases that trigger NF-kB activation — not unlike how aspirin can reduce a fever without actually treating the underlying infection. The asserted claims, rewritten to include the claims from which they depend, are as follows:

80. [A method for modifying effects of external influences on a eukaryotic cell, which external influences induce NF-icB-mediated intracellular signaling, the method comprising altering NF-kB activity in the cells such that NF-kB-mediated effects of external influences are modified, wherein NF-kB activity in the cell is reduced] wherein reducing NF-kB activity comprises reducing binding of NF-kB to NF-kB recognition sites on genes which are transcriptionally regulated by NF-kB.
95. [A method for reducing, in euka-ryotic cells, the level of expression of genes which are activated by extracellular influences which induce NF-KB-mediated intracellular signaling, the method comprising reducing NF-kB activity in the cells such that expression of said genes is reduced], carried out on human cells.
144. [A method for reducing bacterial lipopolysaccharide-induced expression of cytokines in mammalian cells, which method comprises reducing NF-kB activity in the cells so as to reduce bacterial lipopolysaccharide-induced expression of said cytokines in the cells] wherein reducing NF-kB activity comprises reducing binding of NF-kB to NF-kB recognition sites on genes which are tran-scriptionally regulated by NF-kB.
144. [A method for reducing bacterial lipopolysaccharide-induced expression of cytokines in mammalian cells, which method comprises reducing NF-kB activity in the cells so as to reduce bacterial lipopolysaccharide-induced expression of said cytokines in the cells], carried out on human cells.

Importantly, the district court determined that “reducing NF-kB activity” means “decreasing the function of NF-kB to act as an intracellular messenger that regulates transcription of particular genes, in response to certain stimuli.” Ariad Pharms., Inc. v. Eli Lilly & Co., No. 02-cv-11280, 2004 WL 413262, at *1, 2004 U.S. Dist. LEXIS 3170, at *3 (D.Mass. Mar. 3, 2004). Neither party appealed the district court’s claim construction.

Aliad filed its complaint on the day the '516 patent issued, June 25, 2002. During the proceedings, the district court denied Lilly’s combined motion to dismiss and motion for summary judgment. Ariad Pharms., Inc. v. Eli Lilly & Co., No. 02-cv-11280, 2003 WL 21087115, 2003 U.S. Dist. LEXIS 8030 (D.Mass. May 12, 2003). On April 4, 2005, Lilly filed a request for reexamination of the '516 patent. The district court denied Lilly’s motion for a stay. Ariad Pharms., Inc. v. Eli Lilly & Co., No. 02-cv-11280, 2005 WL 1342721, 2005 U.S. Dist. LEXIS 10941 (D. Mass. June 6, 2005). The district court also denied Lilly’s renewed motion to stay made on January 17, 2006. There was a fourteen-day jury trial in April, 2006. At the close of Ariad’s case-in-chief, Lilly moved for JMOL that the asserted claims were not infringed and were invalid for anticipation, lack of enablement, or lack of written description. The district court denied the JMOL motion without opinion.

On April 28, 2006, the jury rendered a special verdict finding infringement of claims 80 and 95 with respect to Evista and claims 144 and 145 with respect to Xigris. The jury also found that the asserted claims were not invalid for anticipa[1371]*1371tion, lack of enablement, or lack of written description. The court denied Lilly’s renewed motion for JMOL or, in the alternative, a new trial, again without opinion. In August 2006, the court conducted a four-day bench trial on three further defenses offered by Lilly: unpatentable subject matter, inequitable conduct, and prosecution laches. The district court ruled in favor of Ariad on all three issues. Ariad Pharms., Inc., 529 F.Supp.2d 106.

Lilly timely appeals all of these rulings except the district court’s ruling that prosecution laches did not render the '516 patent unenforceable. We have jurisdiction pursuant to 28 U.S.C. § 1295(a)(1).

DISCUSSION

I.

We review the denial of Lilly’s motion for JMOL without deference. Cyto-Logix Carp. v. Ventana Med. Sys., Inc.,

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560 F.3d 1366, 90 U.S.P.Q. 2d (BNA) 1549, 2009 U.S. App. LEXIS 6915, 2009 WL 877642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ariad-pharmaceuticals-inc-v-eli-lilly-and-co-cafc-2009.