Genentech, Inc. v. Regents of the University of California

143 F.3d 1446
CourtCourt of Appeals for the Federal Circuit
DecidedMay 4, 1998
DocketNos. 96-1361, 97-1099
StatusPublished
Cited by4 cases

This text of 143 F.3d 1446 (Genentech, Inc. v. Regents of the University of California) 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
Genentech, Inc. v. Regents of the University of California, 143 F.3d 1446 (Fed. Cir. 1998).

Opinion

PAULINE NEWMAN, Circuit Judge.

Genentech, Inc. appeals from the dismissal, on Eleventh Amendment grounds, of its declaratory action in the United States District Court for the Southern District of Indiana against the Regents of the University of California (“the University”) and Eli Lilly and Company (“Lilly”).1 The litigation relates to United States Patent No. 4,363,877 (“the ’877 patent”) owned by the University and exclusively licensed to Lilly. In Genentech,, Inc. v. Eli Lilly & Co., 998 F.2d 931, 27 USPQ2d 1241 (Fed.Cir.1993) (Genentech /) this court held that the Eleventh Amendment of the Constitution2 did not insulate the University from this suit, in view of the enactment in 1992 of Public Law 102-560, codified at 35 U.S.C. §§ 271(h) and 296, which abrogated the states’ Eleventh Amendment immunity from suit for any violation under Title 35.

The constitutionality of Public Law 102-560 was not challenged in Genentech I, for its enactment was consonant with the holding of Pennsylvania v. Union Gas Co., 491 U.S. 1, 109 S.Ct. 2273, 105 L.Ed.2d 1 (1989), that Article I of the Constitution empowers abrogation of state immunity when appropriate to the federal purposes of Article I. Thus the only issue requiring constitution-based interpretation in Genentech I was whether the abrogation in Public Law 102-560 included declaratory actions against the state for claims under Title 35 other than patent infringement by the state. Concluding that it did, the Federal Circuit observed that the statute was explicitly directed not only to infringement but also to “any other violation under this title.” Implementing this scope, the court stated: “There is no exception in Public Law 102-560 that preserves state immunity depending on the procedure by which issues are raised. Indeed, such an exception would contravene the legislative purpose of conferring equal status on states and nongovernmental entities under the patent law.” Genentech I, 998 F.2d at 943, 27 USPQ2d at 1249.

The litigation proceeded by way of multi-district consolidation of six cases involving the ’877 and several other patents, involving Genentech, Lilly, and the University. See In re Regents of the Univ. of Cal., 964 F.2d [1449]*14491128, 22 USPQ2d 1748 (Fed.Cir.1992) (holding that the Eleventh Amendment did not shield a state from multidistrict procedures under the Federal Rules when the state was otherwise properly before the federal courts). Four of these cases have been decided or settled, as have all issues between Genentech and Lilly. Remaining are this Indiana district court action and its later-filed “mirror-image” in the Northern District of California, where the University is plaintiff and Genentech is defendant but the issues are otherwise generally the same.

Upon completion of the multidistrict pro- • ceedings this Indiana action was resumed. Genentech seeks, inter alia, declaration of patent invalidity, unenforeeability, and non-infringement of the ’877 patent, and the University has counterclaimed for patent infringement and other relief. Both sides have pled violations of laws in addition to the patent law, including federal and state antitrust and other laws. The existence of a case of actual controversy, 28 U.S.C. § 2201 (Declaratory Judgment Act), is not disputed.

While this case was before the Indiana district court the Supreme Court decided Seminole Tribe of Florida v. Florida, 517 U.S. 44, 116 S.Ct. 1114, 134 L.Ed.2d 252 (1996), holding that Article I of the Constitution did not empower Congress to abrogate a state’sEleventh Amendment immunity-and expressly overruling the Court’s contrary decision in Pennsylvania v. Union Gas. The district court then held that Public Law 102-560 must now be deemed to be in violation of the Eleventh Amendment, at least as applied in Genentech I to encompass a declaratory action against the state when the state is the patent owner.3

For the reasons we shall discuss, we conclude that in light of Seminole Tribe this court’s ruling in Genentech I can not stand on the ground on which it was premised, whereby the unchallenged constitutionality of Public Law 102-560, as based on Article I and Pennsylvania v. Union Gas, was interpreted as embracing all actions under Title 35 including declaratory actions. The district court, observing that Article I is no longer an available constitutional empowerment for legislative abrogation of Eleventh Amendment immunity, expressed the view that the constitutionality of Public Law 102-560 was sustainable under section 5 of the Fourteenth Amendment if the statute were limited to situations wherein the state is charged with patent infringement. We conclude that it is not necessary here to decide 'whether Public Law 102-560 may be interpreted or applied so as to sustain its constitutional validity, for on the facts of this case we conclude that the University waived its Eleventh Amendment immunity and consented to this suit.

I

APPEAL NO. 97-1099

A

Legislative abrogation of the Eleventh Amendment immunity of states requires that two criteria be met. First, there must be an unequivocal expression of congressional intent to abrogate the immunity, in the form of a “clear legislative statement.” Seminole Tribe, 517 U.S. at 55, 116 S.Ct. at 1123; Blatchford v. Native Village of Noatak, 501 U.S. 775, 786, 111 S.Ct. 2578, 2584-85, 115 L.Ed.2d 686 (1991); Atascadero State Hosp. v. Scanlon, 473 U.S. 234, 246, 105 S.Ct. 3142, 3149, 87 L.Ed.2d 171 (1985). Public Law 102-560 was enacted in 1992 for the purpose of abrogating Eleventh Amendment immunity in patent cases, to close a “sovereign immunity loophole” of which states were said to be taking unfair advantage. 137 Cong. Rec. 53930-02 (daily ed. Mar. 21, 1991) (statement of Sen. DeConcini). The legislative statement is indeed unequivocally expressed, and is codified in Title 35 as follows:

35 U.S.C. § 271 Infringement of patent
(h) As used in this section, the term “whoever” includes any State, any instrumentality of a State, and any officer or employee of a State or instrumentality of a State [1450]*1450acting in his official capacity. Any State, and any such instrumentality, officer, or employee, shall be subject to the provisions of this title in the same manner and to the same extent as any nongovernmental entity.
35 U.S.C. § 296

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