BASF Plant Science, LP v. Commonwealth Scientific and Industrial Research Organisation

District Court, E.D. Virginia·Decided September 3, 2020·No. 2:17-cv-00503·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FILED FOR THE EASTERN DISTRICT OF VIRGINIA Norfolk Division SEP -3 2020 BASF PLANT SCIENCE, LP, ) ) CLERK, US. DISTRICT COUR Plaintiff, ) NORFOLK, VA ) ) C.A. No, 2:17-cv-503 ) COMMONWEALTH SCIENTIFIC AND ) INDUSTRIAL RESEARCH ORGANIZATION, ) GRANIS RESEARCH AND DEVELOPMENT ) CORPORATION, AND NUSEED PTY LTD, ) ) Defendants. ) a) COMMONWEALTH SCIENTIFIC AND ) INDUSTRIAL RESEARCH ORGANISATION, ) GRAINS RESEARCH AND DEVELOPMENT CORP., ) AND NUSEED PTY LTD., ) ) Plaintiffs- Counterclaimants ) ) v. ) ) BASF PLANT SCIENCE, LP, ) AND CARGILL, INC., ) ) Defendants- Counterdefendants )

OPINION & ORDER These matters are before the Court pursuant to Commonwealth Scientific and Industrial Research Organisation’s (“CSIRO’s”), Grains Research and Development Corporation’s (“GRDC’s”), and Nuseed Proprietary Limited’s (“Nuseed Pty. Ltd.’s”) (collectively, “Proponents”) Motion for Judgment as a Matter of Law and a New Trial under Fed. R. Civ. P. 50(B) and 59(a), Doc. 852, and BASF Plant Science, L.P. and Cargill, Inc’s (collectively,

“Opponents”) Motion for Judgment as a Matter of Law under Fed, R. Civ. P. 50(b) or New Trial under Fed R. Civ. P. 59(a), Doc. 850. I]. INTRODUCTION AND OUTCOME OF THE TRIAL The Court held a jury trial which commenced on Wednesday, October 16, 2019, Due to the procedural complications of identifying the parties in this case to the jury, CSIRO, GRDC, and Nuseed were collectively referred to as the "Proponents," because they are the proponents of the patent claims, and BASF and Cargill were collectively referred to as the "Opponents," because they opposed the patent claims. The Court bifurcated the trial into a liability phase and a remedies phase. On November 1, 2019, the jury returned a verdict on liability. The jury found that claim 20 of the '541 patent is infringed; that each asserted patent is not obvious; that only claim | of the ‘084 patent is invalid for lack of written description; that BASF is a co-owner of only the '792 patent; and that CSIRO first conceived of the inventions claimed by the '357 and '880 patents in February of 2003. The jury further found that, subject to the two foregoing exceptions, claims | and 22 of the '357 patent, claim 5 of the '579 patent, claims 2 and 10 of the '880 patent, claim 4 of the '792 patent, and claim 5 of the '033 patent were valid and enforceable. Doc. 788. The parties stipulated that claim 5 of the '579 patent, claims 1 and 33 of the '357 patent, claim 5 of the '033 patent, claims 2 and 10 of the '880 patent, claim 4 of the '792 patent, and claim | of the '084 patent are infringed. Il. LEGAL STANDARD In a patent case, the grant or denial of judgment as a matter of law (“JMOL”) is a procedural issue that is decided under regional circuit law. See Wechsler v. Macke Int'l Trade, Inc., 486 F.3d 1286, 1291 (Fed. Cir. 2007) Therefore, in the Fourth Circuit, judgment at a matter

of law may be granted when the district court ‘“‘finds that a reasonable jury would not have a legally sufficient evidentiary basis to find for’ the non-moving party.” Dotson v. Pfizer, Inc., 558 F.3d 284, 292 (4th Cir. 2009) (quoting Fed. R. Civ. P. 50(a)(1)). The district court must conclude, “after consideration of the record as a whole in the light most favorable to the non- movant, that the evidence presented supports only one reasonable verdict, in favor of the moving party.” Id. The Court begins its analysis with the Proponents’ motion. Il]. PROPONENTS’ MOTION FOR JUDGMENT AS A MATTER OF LAW Proponents assert two grounds for which judgment as a matter of law should be granted. First, Proponents suggest that BASF can not own the ‘792 patent because CSIRO did not breach the Materials Transfer and Evaluation Agreement (“MTEA”). Second, they aver that claim 1 of the ‘084 patent has valid written description because the specification adequately demonstrates possession of the claimed subject matter. A. MTEA Proponents argue that the patent cannot be jointly owned by BASF because nothing in the ‘792 patent was new and jointly developed under the MTEA. Specifically, they point to the fact that CSIRO disclosed all but two of the enzymes claimed in the ‘792 patent in its 2004 and 2005 patent applications years before the signing of the MTEA. Additionally, Proponents note that the combinations of the claimed enzymes were free to use by CSIRO as information from the public domain. Doc. 853 at 9. Proponents primarily rely on Dr. Singh’s direct testimony as evidence that CSIRO never used any of the material from BASF to create the inventions. Doc. 853 at 10. Opponents respond that there was ample trial evidence that demonstrated that the ‘792 claims “subsisted in” materials subject to the MTEA. Doc. 870 at 3. Opponents cite to evidence presented at trial that the ‘792 patent contained two “BASF proprietary genes” that were used as

Joint Materials under the MTEA. Opponents cite to the admission made by Dr. Singh during cross-examination that 11 of 13 joint constructs in the MTEA contained the Thraustochytrium desaturase that was claimed in the ‘792 patent. Id. at 4. As additional support, they note the testimony of Dr. Bauer that BASF brought “genes, constructs, Brassica napus transformation techniques, Brassica napus plants, and related confidential knowhow in canola” to the collaboration with CSIRO under the MTEA. Id. at 5. Despite evidence presented on both sides of this issue, the jury in their verdict was permitted to make their own credibility determinations and credit the evidence in favor of the Opponents. There was ample evidence, such as the admission by Dr. Singh and the testimony of Dr. Bauer, for a reasonable juror to conclude that BASF co-owned the ‘792 patent. Accordingly. the Court FINDS that the jury had a legally sufficient evidentiary basis to conclude that BASF co-owns the ‘792 patent. B. Written Description 084’ Patent Next, Proponents aver they are entitled to JMOL that the claim 1 of the ‘084 patent is valid in spite of the juries finding that it lacked written description. The written description requirement requires the patent owner to “‘convey with reasonable clarity to those skilled in the art that, as of the filing date sought, he or she was in possession of the invention,’ and □ demonstrate that by disclosure in the specification of the patent.” Idenix Pharm. LLC v. Gilead Scis. Inc., 941 F.3d 1149. 1163 (Fed. Cir. 2019) (quoting Carnegie Mellon Univ. v. Hoffmann- La Roche Inc., 541 F.3d 1115, 1122 (Fed. Cir. 2008)); see Hynix Semiconductor Inc. v. Rambus Inc., 645 F.3d 1336, 1351 (Fed. Cir. 2011): Ariad Pharms., Inc. v. Eli Lilly and Co., 598 F.3d 1336, 1351 (Fed. Cir. 2010). The hallmark of the written description test is disclosure. Ariad. 598 F.3d at 1351. Therefore, the “test requires an objective inquiry into the four corners of the

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BASF Plant Science, LP v. Commonwealth Scientific and Industrial Research Organisation, (E.D. Va. 2020).

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