Consumer Watchdog v. Wisconsin Alumni Research Foundation

753 F.3d 1258, 111 U.S.P.Q. 2d (BNA) 1241, 2014 WL 2490491, 2013 U.S. App. LEXIS 26129
CourtCourt of Appeals for the Federal Circuit
DecidedJune 4, 2014
DocketNo. 2013-1377
StatusPublished
Cited by59 cases

This text of 753 F.3d 1258 (Consumer Watchdog v. Wisconsin Alumni Research Foundation) 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.

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Consumer Watchdog v. Wisconsin Alumni Research Foundation, 753 F.3d 1258, 111 U.S.P.Q. 2d (BNA) 1241, 2014 WL 2490491, 2013 U.S. App. LEXIS 26129 (Fed. Cir. 2014).

Opinion

RADER, Circuit Judge.

Consumer Watchdog appeals from the Patent Trial and Appeal Board’s decision affirming the patentability of claims 1-4 of U.S. Patent No. 7,029,913 ('913 patent). Because Consumer Watchdog has not established an injury in fact sufficient to confer Article III standing, however, this court dismisses the appeal.

I.

Consumer Watchdog is a self-described “not-for-profit public charity dedicated to providing a voice for taxpayers and consumers in special interest-dominated public discourse, government and politics.” Appellant’s Br. 1. In 2006, Consumer Watchdog requested inter partes reexamination of the '913 patent, which is owned by Appellee Wisconsin Alumni Research Foundation (WARF). J.A. 106. The '913 patent is generally directed to human embryonic stem cell cultures. E.g., '913 patent abst.

Consumer Watchdog has not alleged any involvement in research or commercial activities involving human embryonic stem cells. Nor has it alleged that it is an actual or prospective competitor of WARF or licensee of the '913 patent. Instead, Consumer Watchdog simply alleges that WARF’s “broad and aggressive assertion of the '913 patent has put a severe burden on taxpayer-funded research in the State of California where [Consumer Watchdog] is located.” Appellant’s Br. 2. Indeed, Consumer Watchdog states that it filed the reexamination request because it was concerned that the '913 patent allowed WARF to completely preempt all uses of human embryonic stem cells, particularly those for scientific and medical research. Id. Consumer Watchdog was ultimately unsuccessful in the reexamination, however, and filed the present appeal.

II.

Federal courts do not have authority to entertain every dispute. Relevant to this appeal, Article III only allows the federal courts to adjudicate “Cases” and “Controversies.” U.S. Const, art. Ill, § 2, cl. 1. Ostensibly, these broad terms could cover a wide range of disputes. Over the years, however, the federal courts have developed a variety of doctrines to clarify that Article III limits the federal courts’ jurisdiction to those disputes seeking to “redress or prevent actual or imminently threatened injury to persons caused by private or official violation of law.” Summers v. Earth Island Inst., 555 U.S. 488, 492-93, 129 S.Ct. 1142, 173 L.Ed.2d 1 (2009). These doctrines — including standing, ripeness, and mootness — distinguish justiciable disputes from those that are not. Frasco, LLC v. Medicis Pharm. Corp., 537 F.3d 1329, 1336 (Fed.Cir.2008). Collectively, these doctrines represent a fundamental limitation on the authority of the federal courts. Hollingsworth v. Perry, -U.S.-, 133 S.Ct. 2652, 2661, 186 L.Ed.2d 768 (2013).

The present appeal concerns Article III standing. To meet the constitutional minimum for standing, the party seeking to invoke federal jurisdiction must satisfy three requirements. Lujan v. Defenders of Wildlife, 504 U.S. 555, 560, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992). First, [1261]*1261the party must show that it has suffered an “injury in fact” that is both concrete and particularized, and actual or imminent (as opposed to conjectural or hypothetical). Id. at 560-61, 112 S.Ct. 2130. Second, it must show that the injury is fairly traceable to the challenged action. Id. at 560, 112 S.Ct. 2130. Third, the party must show that it is likely, rather than merely speculative, that a favorable judicial decision will redress the injury. Id. at 561, 112 S.Ct. 2130.

These constitutional requirements for standing apply on appeal, just as they do before district courts. Hollingsworth, 133 S.Ct. at 2661. Accordingly, these requirements apply with equal force to appeals from administrative agencies, such as the U.S. Patent and Trademark Office (PTO), to the federal courts. See Sierra Club v. E.P.A., 292 F.3d 895, 899 (D.C.Cir.2002). To be clear, although Article III standing is not necessarily a requirement to appear before an administrative agency, once a party seeks review in a federal court, “the constitutional requirement that it have standing kicks in.” Id.

That said, where Congress has accorded a procedural right to a litigant, such as the right to appeal an administrative decision, certain requirements of standing — namely immediacy and redress-ability, as well as prudential aspects that are not part of Article III — may be relaxed. See Massachusetts v. E.P.A., 549 U.S. 497, 517-18, 127 S.Ct. 1438, 167 L.Ed.2d 248 (2007). However, the “requirement of injury in fact is a hard floor of Article III jurisdiction that cannot be removed by statute.” Summers, 555 U.S. at 497, 129 S.Ct. 1142. That injury must be more than a general grievance, Hollingsworth, 133 S.Ct. at 2662, or abstract harm, City of Los Angeles v. Lyons, 461 U.S. 95, 101, 103 S.Ct. 1660, 75 L.Ed.2d 675 (1983).

Indeed, “a disagreement, however sharp and acrimonious it may be” will not suffice for the injury in fact requirement. Hollingsworth, 133 S.Ct. at 2661 (internal quotations and citation omitted). Rather, the party invoking federal jurisdiction must have “a personal stake in the outcome.” Lyons, 461 U.S. at 101, 103 S.Ct. 1660. The personal stake in the outcome — and injury in fact — generally will be easier to show where the party seeking to invoke the federal courts’ jurisdiction is the object of the complained of action (or inaction). Lujan, 504 U.S. at 561, 112 S.Ct. 2130. By contrast, where a party is alleging an injury arising from the government’s allegedly unlawful action or inaction pertaining to a third party, injury in fact is much more difficult to prove. Id. at 561-62, 112 S.Ct. 2130.

III.

With these principles in mind, this court turns to Consumer Watchdog’s appeal. Consumer Watchdog does not identify any alleged injury aside from the Board denying Consumer Watchdog the particular outcome it desired in the reexamination, i.e., canceling the claims of the '913 patent. Appellant’s Br. in Response to United States 3. Consumer Watchdog does not allege that it is engaged in any activity involving human embryonic stem cells that could form the basis for an infringement claim. It does not allege that it intends to engage in such activity. Nor does it allege that it is an actual or prospective licensee, or that it has any other connection to the '913 patent or the claimed subject matter. Instead, Consumer Watchdog relies on the Board’s denial of Consumer Watchdog’s requested administrative action — namely, the Board’s refusal to cancel claims 1-4 of the '913 patent. That denial, however, is insufficient to confer standing.

[1262]*1262To be sure, “Congress may enact statutes creating legal rights, the invasion of which creates standing, even though no injury would exist without the statute.” Linda R.S. v. Richard D., 410 U.S. 614, 617 n. 3, 93 S.Ct.

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753 F.3d 1258, 111 U.S.P.Q. 2d (BNA) 1241, 2014 WL 2490491, 2013 U.S. App. LEXIS 26129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consumer-watchdog-v-wisconsin-alumni-research-foundation-cafc-2014.