Daiichi Sankyo Company, Limited v. Kappos

12 F. Supp. 3d 8, 2013 WL 6234571, 2013 U.S. Dist. LEXIS 169957
CourtDistrict Court, District of Columbia
DecidedDecember 3, 2013
DocketCivil Action No. 2010-0215
StatusPublished
Cited by11 cases

This text of 12 F. Supp. 3d 8 (Daiichi Sankyo Company, Limited v. Kappos) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daiichi Sankyo Company, Limited v. Kappos, 12 F. Supp. 3d 8, 2013 WL 6234571, 2013 U.S. Dist. LEXIS 169957 (D.D.C. 2013).

Opinion

MEMORANDUM OPINION

RICHARD W. ROBERTS Chief Judge

Plaintiff Daiichi Sankyo Company, Limited (“Daiichi”) brings suit under 35 U.S.C. § 154(b)(4)(A) and the Administrative Procedure Act, 5 U.S.C. § 501 et seq., against the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office (“USPTO”) 1 alleging that the USP-TO improperly calculated the patent term adjustments (“PTA”) for Daiichi’s United States Patent Nos. 7,365,205 (“’205 patent”), 7,342,014 (“’014 patent”), and 7,576,135 (“ '135 patent”). Daiichi and the USPTO cross-move for summary judgment. Because Daiichi did not timely file its challenge to the USPTO’s PTA determinations, the USPTO’s cross-motion for summary judgment will be granted and Daiichi’s cross-motion for summary judgment will be denied.

BACKGROUND

I. LEGAL BACKGROUND

In the United States, patents are granted “for a term beginning on the date on which the patent issues and ending 20 years from the date on which the application for the patent was filed in the United States.” 35 U.S.C. § 154(a)(2). “However, the prosecution of a patent application may take more than three years. In order to ensure that all patents have terms of at least seventeen years,” the Patent Act allows the Director of the USPTO to adjust the term of a patent to account for certain delays that may occur during patent prose *12 cution (i.e., to make a PTA determination). Janssen Pharmaceutica, N.V. v. Rea, 928 F.Supp.2d 102, 103 (D.D.C.2013); see also 35 U.S.C. § 154(b).

One category of delay that is excluded from the calculation of the patent term, known as “A delay,” “extend[s] the term of the patent one day for each day the PTO does not meet certain examination deadlines[J” Wyeth v. Kappos (Wyeth II), 591 F.3d 1364, 1367 (Fed.Cir.2010) (citing 35 U.S.C. § 154(b)(1)(A)). This delay is excluded because the Patent Act guarantees “prompt Patent and Trademark Office responses.” 35 U.S.C. § 154(b)(1)(A). “The PTO notifies the pat-entee of the amount of A Delay that has been awarded when it issues the Notice of Allowance. Because the Notice of Allowance is sent well before a patent is actually granted, the determination of A Delay is known as a Pre-Issuance Determination.” Novartis AG v. Kappos, 904 F.Supp.2d 58, 61 (D.D.C.2012).

A second category of excludable delay, known as “B delay,” “extends the term of the patent one day for each day issuance is delayed due to the PTO’s failure ‘to issue a patent within 3 years after the actual filing date of the application in the United States.’ ” Wyeth II, 591 F.3d at 1367 (quoting 35 U.S.C. § 154(b)(1)(B)). This delay is excluded because the Patent Act guarantees “no more than [a] 3-year application pendency.” 35 U.S.C. § 154(b)(1)(B). “Because B Delay accrues until the actual date of issuance, the PTO does not determine the proper amount of B Delay until the patent is granted.” Novartis, 904 F.Supp.2d at 61.

“After determining the proper amount of A and B Delay, the PTO must determine the extent of any overlap between the two types of delay.” Id. at 62. “To the extent that periods of [A delay and B delay] overlap, any [PTA] shall not exceed the actual number of days the issuance of the patent was delayed.” 35 U.S.C. § 154(b)(2)(A). “Because the overlap determination depends on the amount of B Delay, it is also done at the time the patent is granted.” Novartis, 904 F.Supp.2d at 62.

In 2004, the USPTO issued a regulation explaining its methodology to calculate A/B Overlap. See Revision of Patent Term Extension and Patent Term Adjustment Provisions, 69 Fed. Reg. 21706-01 (Apr. 22, 2004) (“2004 Notice”). On September 30, 2008, in Wyeth v. Dudas (Wyeth I), 580 F.Supp.2d 138, 141-42 (D.D.C.2008), the district court found that the USPTO’s A/B Overlap methodology, as described in the 2004 Notice, was contrary to the plain language of § 154(b). The USPTO appealed the decision, and the Federal Circuit affirmed the district court’s decision in Wyeth II. Wyeth II, 591 F.3d at 1369-70.

On February 1, 2010, the USPTO issued an Interim Procedure setting forth its procedure for recalculating PTAs using the correct A/B Overlap methodology. See Interim Procedure for Patentees to Request a Recalculation of the Patent Term Adjustment, 75 Fed.Reg. 5043-01 (Feb. 1, 2010). The Interim Procedure established that the USPTO would recalculate the PTA for any patent that had been issued in the 180 days before the announcement of the Interim Procedure&emdash;that is, any patent issued on or after August 5, 2009. Id. at 5044.

The final determination of PTA&emdash;which factors in A Delay, B Delay, and A/B Overlap&emdash;is done at the time the patent is granted. Novartis, 904 F.Supp.2d at 62. If the patent applicant disagrees with the PTA determination, the applicant may “request reconsideration of any patent term adjustment determination made by the Di *13 rector,” id. § 154(b)(3)(B)(ii), “within two months of the date the patent issued,” 37 C.F.R. § 1.705(d) (2012). “[0]n petition of the interested party,” (“Rule 183 petition”) the two-month limitation “may be suspended or waived by the Director or the Director’s designee” “[i]n an extraordinary situation, when justice requires.” 37 C.F.R. § 1.183 (2013).

II. FACTUAL BACKGROUND

Daiichi is the assignee of the ’205, ’014, and 135 patents.2d Am. Compl. ¶ 8. Patent Application Serial No. 10/481,262 issued as the ’205 patent on April 29, 2008. Id. ¶9. The patent issued with a notice that its term would be extended by 504 days under 35 U.S.C. § 154(b) (i.e., the final PTA determination is 504 days) subject to the patentee’s terminal disclaimer over the ’014 patent. 2 Id. ¶¶ 9, 31.

Patent Application Serial No.

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12 F. Supp. 3d 8, 2013 WL 6234571, 2013 U.S. Dist. LEXIS 169957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daiichi-sankyo-company-limited-v-kappos-dcd-2013.