Exela Pharma Sciences, LLC v. Lee

781 F.3d 1349, 114 U.S.P.Q. 2d (BNA) 1328, 2015 U.S. App. LEXIS 4895, 2015 WL 1344662
CourtCourt of Appeals for the Federal Circuit
DecidedMarch 26, 2015
Docket2013-1206
StatusPublished
Cited by9 cases

This text of 781 F.3d 1349 (Exela Pharma Sciences, LLC v. Lee) 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
Exela Pharma Sciences, LLC v. Lee, 781 F.3d 1349, 114 U.S.P.Q. 2d (BNA) 1328, 2015 U.S. App. LEXIS 4895, 2015 WL 1344662 (Fed. Cir. 2015).

Opinions

Concurring opinion filed by Circuit Judge NEWMAN.

Concurring opinion filed by Circuit Judge DYK.

PER CURIAM.

This appeal presents the question of whether a third party has the right to challenge, by way of the Administrative Procedure Act (APA), a ruling of the Patent and Trademark Office reviving a patent application that had become abandoned by failure to meet a filing schedule established by the Patent Cooperation Treaty and its implementing statute. The challengers are Exela Pharma Sciences, LLC; Exela Pharmsci, Inc.; and Exela Holdings, Inc. (collectively “Exela”). Exela petitioned the PTO to “reconsider and withdraw” its revival of the national stage application and to cancel the issued patent. The patent is United States Patent No. 6,992,218 (“the '218 patent”), assigned to SCR Pharmatop.

The PTO declined to consider Exela’s petition, stating that no law or regulation authorizes non-party challenge to a PTO ruling to accept a tardy filing. Exela then brought suit under the APA in the United States District Court for the Eastern District of Virginia, arguing that the PTO’s action was ultra vires and that Exela’s petition should have been considered and favorably decided. The PTO moved to dismiss Exela’s complaint on several grounds.

The district court initially held that Exe-la was entitled to challenge the PTO’s decision under the APA, but on reconsideration and in view of new Fourth Circuit precedent, the district court dismissed Ex-ela’s complaint for failing to meet the statute of limitations for claims filed against the United States, including APA claims.1

We affirm the dismissal, on the ground that PTO revival rulings are not subject to third party collateral challenge, thereby precluding review regardless of whether Exela’s claims were time-barred.

Background

Patentee SCR Pharmatop filed its initial patent application in France on June 6, 2000 and, in conformity with the Patent Cooperation Treaty (PCT), filed an international patent application identifying the United States, among others, as a designated state on June 6, 2001. The PCT implementing statute, 35 U.S.C. § 351 et seq., requires the applicant to fulfill certain United States documentary and fee requirements within 30 months after the filing of the foreign priority application, here by December 6, 2002. See 35 U.S.C. § 371(c), (d); PCT art. 22. SCR Pharma-top did not file the required materials by December 6, 2002, and consequently the United States application was deemed [1351]*1351abandoned. On January 2, 2003 SCR Pharmatop filed a petition to revive the application, stating that the delay was “unintentional,” using the form provided by the PTO for revival requests. The PTO granted the petition on April 25, 2003. The application was duly examined, and the '218 patent issued on January 31, 2006.

In August 2011 SCR Pharmatop and exclusive sublicensee Cadence Pharmaceuticals, Inc. (collectively “Pharmatop”) sued Exela in the United States District Court for the District of Delaware for infringement of the '218 patent. The suit was brought under the Hatch-Waxman Act, 35 U.S.C. § 271(e)(2), in response to Exela’s notice and filing of an Abbreviated New Drug Application and Paragraph IV Certification relating to Pharmatop’s injectable acetaminophen-based drug Ofirmev®.

On November 30, 2011 Exela filed the subject petition in the PTO, under the APA and 37 C.F.R. §§ 1.181, 1.182, and 1.183, challenging the PTO’s revival of the patent application that led to the '218 patent. Exela argued that “unintentional” delay was not an available ground for revival of a U.S. patent application claiming priority under the PCT-implementing statute as then in effect. Exela pointed out that 35 U.S.C. § 371(d) limited the revival of such national stage applications to those in which the non-compliance was “unavoidable”:

The requirements with respect to the national fee ..., the translation ..., and the oath or declaration ... shall be complied with by the date of the commencement of the national stage or by such later time as may be fixed by the Director. ... Failure to comply with these requirements shall be regarded as abandonment of the application by the parties thereof, unless it be shown to the satisfaction of the Director that such failure to comply was unavoidable.... 2

35 U.S.C. § 371(d) (2002). Exela argued that the PTO erred in applying its general revival regulation, 37 C.F.R. § 1.137, which provides:

Revival of abandoned application, terminated reexamination proceeding, or lapsed patent.
(a) Unavoidable. If the delay in reply by applicant or patent owner was unavoidable, a petition may be filed pursuant to this paragraph to revive an abandoned application, a reexamination proceeding ..., or a lapsed patent. A grantable petition pursuant to this paragraph must be accompanied by: ...
(b) Unintentional. If the delay in reply by applicant or patent owner was unintentional, a petition may be filed pursuant to this paragraph to revive an abandoned application, a reexamination proceeding ..., or a lapsed patent. A grantable petition pursuant to this paragraph must be accompanied by: ...

37 C.F.R. § 1.137 (2000). Exela asserted that a PTO regulation cannot override a statute, and therefore, the PTO lacked discretion to grant SCR Pharmatop’s revival petition for “unintentional” delay.

The PTO declined to consider Exela’s petition, stating that no statute or regulation authorizes third party challenge to a PTO ruling concerning revival of a patent application. See PTO letter to Exela’s counsel, February 17, 2012 (returning petition fee).

[1352]*1352Following the PTO’s rejection of its petition, Exela filed this district court action under the APA, asking the court to compel the PTO to vacate its revival decision. The PTO moved to dismiss Exela’s complaint under Federal Rules 12(b)(1) and (6) on several grounds, including that Exela lacks standing to challenge the PTO’s revival ruling, that Exela’s APA action is time-barred, and that a PTO revival ruling is not subject to judicial review at the request of a third party challenger.

The district court initially denied the PTO’s motion to dismiss on all grounds, but while its decision was pending, the Fourth Circuit issued its decision in Hire Order, Ltd. v. Marianos,

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781 F.3d 1349, 114 U.S.P.Q. 2d (BNA) 1328, 2015 U.S. App. LEXIS 4895, 2015 WL 1344662, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exela-pharma-sciences-llc-v-lee-cafc-2015.