Chudik v. Hirshfeld

987 F.3d 1033
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 8, 2021
Docket20-1833
StatusPublished
Cited by6 cases

This text of 987 F.3d 1033 (Chudik v. Hirshfeld) 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
Chudik v. Hirshfeld, 987 F.3d 1033 (Fed. Cir. 2021).

Opinion

Case: 20-1833 Document: 31 Page: 1 Filed: 02/08/2021

United States Court of Appeals for the Federal Circuit ______________________

STEVEN C. CHUDIK, Plaintiff-Appellant

v.

ANDREW HIRSHFELD, PERFORMING THE FUNCTIONS AND DUTIES OF THE UNDER SECRETARY OF COMMERCE FOR INTELLECTUAL PROPERTY AND DIRECTOR OF THE UNITED STATES PATENT AND TRADEMARK OFFICE, Defendant-Appellee ______________________

2020-1833 ______________________

Appeal from the United States District Court for the Eastern District of Virginia in No. 1:19-cv-01163-AJT-JFA, Judge Anthony J. Trenga. ______________________

Decided: February 8, 2021 ______________________

ERIC RYAN WALTMIRE, Erickson Law Group, PC, Wheaton, IL, argued for plaintiff-appellant.

CATHERINE YANG, Office of the United States Attorney for the Eastern District of Virginia, United States Depart- ment of Justice, Alexandria, VA, argued for defendant-ap- pellee. Also represented by G. ZACHARY TERWILLIGER; Case: 20-1833 Document: 31 Page: 2 Filed: 02/08/2021

KAKOLI CAPRIHAN, DANIEL KAZHDAN, THOMAS W. KRAUSE, BRIAN RACILLA, FARHEENA YASMEEN RASHEED, Office of the Solicitor, United States Patent and Trademark Office, Al- exandria, VA. ______________________

Before TARANTO, BRYSON, and HUGHES, Circuit Judges. TARANTO, Circuit Judge. Dr. Steven Chudik applied to the Patent and Trade- mark Office (PTO) for a patent on his “Guide for Shoulder Surgery” on September 29, 2006. When the assigned PTO examiner issued a second rejection of all then-pending claims as unpatentable in 2010, Dr. Chudik took a step that would turn out to have consequences for the patent term adjustment awarded under 35 U.S.C. § 154(b) when his application ultimately issued as a patent. Rather than immediately taking an appeal to the Patent Trial and Ap- peal Board under 35 U.S.C. § 134(a), Dr. Chudik requested a continued examination under 35 U.S.C. § 132(b). In 2014, the examiner again rejected his claims, and Dr. Chudik then appealed to the Board. But instead of filing an answer, the examiner reopened prosecution, only to re- ject the claims as unpatentable on a different ground, in early 2015. That 2014–2015 process—notice of appeal filed, prosecution reopened before answer, new rejection on a new ground—occurred again in 2015. It occurred once more in 2016. Finally, in 2017, while Dr. Chudik’s fourth notice of appeal from an examiner rejection was pending, the examiner issued yet another new rejection, but this one led, in 2018, to a notice of allowance after Dr. Chudik al- tered some of his claims. Dr. Chudik’s U.S. Patent No. 9,968,459 issued on May 15, 2018, eleven and a half years after the application was filed. The PTO ultimately awarded Dr. Chudik a patent term adjustment of 2,066 days under 35 U.S.C. § 154(b), but it rejected Dr. Chudik’s argument that he was entitled to an Case: 20-1833 Document: 31 Page: 3 Filed: 02/08/2021

CHUDIK v. HIRSHFELD 3

additional 655 days, under 35 U.S.C. § 154(b)(1)(C)(iii) (C- delay), for the time his four notices of appeal were pending in the PTO. The C-delay provision covers delay due to “ap- pellate review by the Patent Trial and Appeal Board or by a Federal court in a case in which the patent was issued under a decision in the review reversing an adverse deter- mination of patentability.” 35 U.S.C. § 154(b)(1)(C)(iii). The PTO concluded that the provision does not apply here because, in light of the examiner’s reopening of prosecu- tion, (1) the Board’s jurisdiction over the appeals never at- tached and (2) there was no Board (or reviewing court) reversal. The United States District Court for the Eastern District of Virginia affirmed the PTO’s decision. Chudik v. Iancu, No. 1:19-cv-01163 (E.D. Va. March 25, 2020), ECF No. 33. We now affirm. The statutory language regarding C- delay for “appellate review” requires a “decision in the re- view reversing an adverse determination of patentability.” 35 U.S.C. § 154(b)(1)(C)(iii). That language, we conclude, is reasonably interpreted—indeed, is best interpreted—to require a reversal decision made by the Board or a review- ing court, thus excluding time spent on a path pursuing such a decision when, because of an examiner reopening of prosecution, no such decision is ever issued. I A In 1994, Congress changed the length of a patent term from 17 years (measured from the patent’s issue date) to 20 years (measured from the patent’s earliest effective non- provisional-filing date). See Mayo Found. for Med. Educ. & Research v. Iancu, 938 F.3d 1343, 1345 (Fed. Cir. 2019). Because time spent in the PTO could now eat up part of the patent term, Congress also provided a list of specific situa- tions in which the patent owner could seek an adjustment of the patent’s term to offset delays in the PTO. Id.; see Uruguay Round Agreements Act, Pub. L. No. 103-465, Case: 20-1833 Document: 31 Page: 4 Filed: 02/08/2021

§ 532, 108 Stat. 4809, 4983–85_(1994); 35 U.S.C. § 154(b) (1994 ed.). In 1999, Congress supplemented and modified the list and gave the provision its current structure. See American Inventors Protection Act of 1999, Pub. L. No. 106-113, § 4402, 113 Stat. 1501, 1501A-557 to -559 (codi- fied at 35 U.S.C. § 154(b)). The statute sets forth three broad categories of delay for which a patent may receive a patent term adjustment. See 35 U.S.C. § 154(b)(1)(A)–(C). First, patent owners may seek an adjustment where the PTO fails to meet certain prescribed deadlines for its actions during prosecution (A- delay). Id. § 154(b)(1)(A). Next, adjustment is generally authorized for each day that the patent application’s pen- dency extends beyond three years (B-delay), subject to cer- tain exclusions, such as—critically for Dr. Chudik—for “time consumed by continued examination of the applica- tion requested by the applicant under section 132(b).” Id. § 154(b)(1)(B). Finally, patent owners may seek an adjust- ment for “delays due to derivation proceedings, secrecy or- ders, and appeals,” including “appellate review by the [Board] . . . in a case in which the patent was issued under a decision in the review reversing an adverse determina- tion of patentability” (C-delay). Id. § 154(b)(1)(C). In the case of a C-delay, “the term of the patent shall be extended 1 day for each day of the pendency of the proceeding, order, or review.” Id. 1

1 The 1994 statute contained a provision for adjust- ment based on appellate review that required “a decision in the review reversing an adverse determination of pa- tentability” but differed in certain other ways from the 1999 provision. 35 U.S.C. § 154(b)(2) (1994 ed.). The 1994 provision and the PTO’s 1995 implementing regulations, see Changes To Implement 20-Year Patent Term and Pro- visional Applications, 60 Fed. Reg. 20,195, 20,196, 20,219, Case: 20-1833 Document: 31 Page: 5 Filed: 02/08/2021

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Bluebook (online)
987 F.3d 1033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chudik-v-hirshfeld-cafc-2021.