Celanese International Corporation v. Itc

111 F.4th 1338
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 12, 2024
Docket22-1827
StatusPublished
Cited by1 cases

This text of 111 F.4th 1338 (Celanese International Corporation v. Itc) 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
Celanese International Corporation v. Itc, 111 F.4th 1338 (Fed. Cir. 2024).

Opinion

Case: 22-1827 Document: 75 Page: 1 Filed: 08/12/2024

United States Court of Appeals for the Federal Circuit ______________________

CELANESE INTERNATIONAL CORPORATION, CELANESE (MALTA) COMPANY 2 LIMITED, CELANESE SALES U.S. LTD., Appellants

v.

INTERNATIONAL TRADE COMMISSION, Appellee

ANHUI JINHE INDUSTRIAL CO., LTD., JINHE USA LLC, Intervenors ______________________

2022-1827 ______________________

Appeal from the United States International Trade Commission in Investigation No. 337-TA-1264. ______________________

Decided: August 12, 2024 ______________________

DEANNE MAYNARD, Morrison & Foerster LLP, Wash- ington, DC, argued for appellants. Also represented by SETH W. LLOYD, BRIAN ROBERT MATSUI; AARON GABRIEL FOUNTAIN, Austin, TX.

BENJAMIN S. RICHARDS, Office of the General Counsel, United States International Trade Commission, Case: 22-1827 Document: 75 Page: 2 Filed: 08/12/2024

Washington, DC, argued for appellee. Also represented by DOMINIC L. BIANCHI, WAYNE W. HERRINGTON.

NICOLE A. SAHARSKY, Mayer Brown, LLP, Washington, DC, argued for intervenors. Also represented by CLARK BAKEWELL, GARY HNATH, BRYAN NESE, MINH NGUYEN- DANG; SCOTT MCMURRY, New York, NY.

BRIAN PANDYA, Duane Morris LLP, Washington, DC, for amicus curiae National Association of Manufacturers. ______________________

Before REYNA, MAYER, and CUNNINGHAM, Circuit Judges. REYNA, Circuit Judge. Celanese International Corporation, Celanese (Malta) Company 2 Limited, and Celanese Sales U.S. Ltd. appeal a decision of the United States International Trade Commis- sion. The International Trade Commission found Cela- nese’s asserted patent claims invalid under the on-sale bar, 35 U.S.C. § 102(a), because Celanese sold products made using the patented process more than one year before the effective filing dates of the asserted patents. We affirm. BACKGROUND Celanese International Corporation, Celanese (Malta) Company 2 Limited, and Celanese Sales U.S. Ltd. (collec- tively, “Celanese”) filed a petition before the United States International Trade Commission (the “Commission”), al- leging that Anhui Jinhe Industrial Co., Ltd., Jinhe USA LLC (collectively, “Jinhe”) and other entities violated 19 U.S.C. § 337. See In the Matter of Certain High-Potency Sweeteners, Processes for Making Same, & Prod. Contain- ing Same, Inv. No. 337-TA-1264, Order No. 29, 2022 WL 142328, at *1 (Jan. 11, 2022) (“ITC Decision”); J.A. 53. Celanese alleged that Jinhe and other entities were importing Ace-K (an artificial sweetener) made using a process that infringed Celanese’s patents. J.A. 63. Case: 22-1827 Document: 75 Page: 3 Filed: 08/12/2024

CELANESE INTERNATIONAL CORPORATION v. ITC 3

Relevant to this appeal, Celanese asserted claims 11 and 27 of U.S. Patent No. 10,023,546, claims 7, 28, and 33 of U.S. Patent No. 10,208,004, and claims 1, 19, and 34 of U.S. Patent No. 10,590,095. 1 ITC Decision, 2022 WL 142328, at *1, *4. The asserted patents each have an effective filing date of September 21, 2016, and are thus governed by the America Invents Act (“AIA”). Id. at *1. It is undisputed that Celanese’s patented process was in secret use in Europe before the critical date of Septem- ber 21, 2015, i.e., one year before the effective filing date of the asserted patents. Id. at *3. It is also undisputed that Celanese had sold Ace-K made using the patented process in the United States before the critical date. Id. Jinhe moved for a summary determination of no viola- tion of 19 U.S.C. § 337 on the ground that the claims at issue were invalid under the on-sale bar provision, 35 U.S.C. § 102(a)(1). According to Jinhe, because Celanese sold Ace-K more than one year before it applied for the as- serted patents, those sales triggered the on-sale bar. Cela- nese did not dispute that under pre-AIA precedent, sales of products made using a secret process triggered the on-sale bar, precluding the patentability of that process. See ITC Decision, 2022 WL 142328, at *3–4. Rather, Celanese ar- gued that the AIA changed pre-AIA law such that its pre-2015 sales of Ace-K made using its secret process would not trigger the on-sale bar. See id. at *3. The presiding Administrative Law Judge (“ALJ”) re- jected Celanese’s argument, concluding that Celanese’s prior sales triggered the on-sale bar and that the AIA did not overturn settled pre-AIA precedent. In arriving at that conclusion, the ALJ found the Supreme Court’s decision in Helsinn instructive. Id. (citing Helsinn Healthcare S.A. v.

1 Celanese also asserted several other claims, the va- lidity of which is not at issue in this appeal. Case: 22-1827 Document: 75 Page: 4 Filed: 08/12/2024

Teva Pharms. USA, Inc., 586 U.S. 123 (2019)). Under well-settled pre-AIA precedent, the ALJ explained, a pa- tentee’s sale of products made using a secret process, as here, would trigger the on-sale bar to patentability. Id. at *3 (collecting relevant pre-AIA precedent). In Helsinn, the ALJ continued, the Supreme Court addressed whether Congress altered the on-sale bar when it enacted the AIA. See id. at *5. The Supreme Court held that Congress did not. Rather, as the ALJ noted, the Helsinn Court con- cluded that “when Congress reenacted the same language in the AIA, it adopted the earlier judicial construction of that phrase.” Id. (quoting Helsinn, 586 U.S. at 131). The ALJ found the Court’s reasoning applied equally to the facts here and supported that the AIA did not overturn long-established judicial precedent as applied to the facts here. Id. The ALJ considered Celanese’s contrary arguments and found them unpersuasive. Celanese relied on the AIA’s textual changes, primarily Section 102’s substitution of “claimed invention” for the pre-AIA reference of “inven- tion.” Id. at *6. This change, Celanese argued, meant that the AIA on-sale bar could only be triggered by sales of the claimed process itself, not by sales of products made using the claimed process. Id. The ALJ found Celanese’s posi- tion lacked merit. Id. Pre-AIA precedent, the ALJ ex- plained, recognized the distinction between a process and a product of a claimed process. Id. That precedent estab- lished that “a product could embody commercialization of a method invention sufficiently to trigger the on-sale bar.” Id. Following the reasoning in Helsinn, the ALJ concluded that the addition of the word “claimed” was insufficient to show the AIA overturned settled law as applied here. Id. The ALJ also rejected Celanese’s argument on the AIA’s removal of pre-AIA Section 102(g) and the expansion of prior-user rights under Section 273. Id. at *6–7. The ALJ reasoned that these changes were driven by distinct policy rationales, and those sections addressed issues Case: 22-1827 Document: 75 Page: 5 Filed: 08/12/2024

CELANESE INTERNATIONAL CORPORATION v. ITC 5

unrelated to patentees’ actions or the on-sale bar. Id. Lastly, the ALJ rejected Celanese’s argument on legislative history. Id. at *7–8. Evaluated in context, the ALJ rea- soned, the passages cited by Celanese did not show that Congress “thr[ew] out the [existing] understanding of the on-sale bar . . . , even if a few senators wished it were oth- erwise.” Id. at *8. The ALJ concluded that the AIA did not alter the pre-AIA rule that “a patentee’s sale of an unpatented prod- uct made according to a secret method triggers the on-sale bar to patentability.” Id.

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