Helfgott & Karas, P.C. v. Lehman

47 F. Supp. 2d 425, 1998 U.S. Dist. LEXIS 19898, 1998 WL 898146
CourtDistrict Court, S.D. New York
DecidedDecember 23, 1998
DocketNo. 98 Civ. 4014 SAS
StatusPublished
Cited by1 cases

This text of 47 F. Supp. 2d 425 (Helfgott & Karas, P.C. v. Lehman) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Helfgott & Karas, P.C. v. Lehman, 47 F. Supp. 2d 425, 1998 U.S. Dist. LEXIS 19898, 1998 WL 898146 (S.D.N.Y. 1998).

Opinion

OPINION AND ORDER

SCHEINDLIN, District Judge.

Presently before this Court are cross motions for summary judgment filed by plaintiff Helfgott & Karas, P.C., a law firm (“plaintiff’), and Bruce A. Lehman, Assistant Secretary of Commerce and Commissioner of Patents and Trademarks (the “Commissioner”). At issue is whether the Patent and Trademark Office (the “PTO”) acted arbitrarily and capriciously in denying plaintiffs petition to reinstate its application for an international patent under the Patent Cooperation Treaty (the “Treaty” or “PCT”). Because the scope of this Court’s review is narrow and deferential, and the Court cannot substitute its judgment for that of the PTO, summary judgment is granted to the Commissioner.

I. Standard of Review

Plaintiff brings this action under the Administrative Procedure Act, 5 U.S.C. §§ 702-06 (the “APA”), which provides for judicial review of final agency decisions. See, e.g., Ray v. Lehman, 55 F.3d 606, 608 (Fed.Cir.1995) (APA review of PTO’s rejection of late payment of patent fees).1

The PTO’s decision to reject plaintiffs Petition will be set aside only if it is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. § 706(2)(A); see Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 413-14, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971). “An agency rule may be deemed arbitrary, capricious or an abuse of discretion ‘if the agency has relied on factors which Congress has not intended it to consider, entirely failed to consider an important aspect of the problem, offered an explanation for its decision that runs counter to the evidence before the agency, or is so implausible that it could not be ascribed to a difference in view or the product of agency expertise.’ ” Henley v. Food and Drug Admin., 77 F.3d 616, 620 (2d Cir.1996) (citing Motor Vehicle Mfrs. Assoc., of the United States v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983)). “[T]he scope of judicial review under this standard is narrow and deferential” and a “reviewing court cannot ‘substitute its judgment for that of the agency.’ ” Id. (citing Citizens to Preserve Overton Park, 401 U.S. at 416, 91 S.Ct. 814). The agency must “examine the relevant data and articulate a satisfactory explanation for its action including a ‘rational connection between the facts found and the choice made.’” Motor Vehicle Mfrs. Ass’n, 463 U.S. at 43, 103 S.Ct. 2856 (citation omitted); accord Henley, 77 F.3d at 620.2

Moreover, courts defer to agency constructions of the statutes they administer. Linea Area Nacional de Chile S.A. v. Meissner, 65 F.3d 1034, 1039 (2d Cir.1995).

In the specialized field of patent law ... the Commissioner of Patent and Trademarks is primarily responsible for the application and enforcement of the various narrow and technical statutory and regulatory provisions. His interpretation of these provisions is entitled to considerable deference.

Rydeen v. Quigg, 748 F.Supp. 900, 904 (D.D.C.1990), aff'd mem., 937 F.2d 623 (Fed.Cir.1991); see also Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 843, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984) (“if the statute is [428]*428silent or ambiguous with respect to the specific issue, the question for the court is whether the agency’s answer is based on a permissible construction of the statute”).

II. Factual Background

The facts underlying this motion are not in dispute.

A. Patent Cooperation Treaty

Under the Treaty, inventors may obtain patents in multiple countries by submitting an “international application” to the prescribed “receiving office” in a nation who is a member of the Treaty. PCT, June 19, 1970, Articles (“art”) 3-4, 10. In the United States, the PTO is the receiving office for international applications. See 35 U.S.C. § 361. Upon receiving an international application, a receiving office “accord[s] as the international filing date the date of receipt of the international application.” Id., art. 11. If the applicant has already requested patent protection in a member nation, the applicant may “claim priority” over rival inventors back to the date of the earlier application. See id., art 8.

Following receipt of an international application, the patent authority in the receiving nation performs an international search for “relevant prior art” and generates an international search report on the results. See id., art. 15-16, 18. The applicant must then transmit the international application to individual nations where patents are sought within twenty months of the applicable priority date. See id., art 22. Alternatively, the applicant may demand preparation of an “international preliminary examination,” which offers “a preliminary and non-binding opinion on the questions” governing patentability. Id., art 31-33. If the applicant demands an international preliminary examination at any time before the expiration of the nineteenth month from the priority date, transmission of the international application to individual. nations for processing may be delayed an extra ten months, extending the time limitation within which to transmit patent applications to thirty months after the priority date. See id., art. 39.

B. Plaintiff’s International Applications

On March 22, 1996, plaintiff filed an international application seeking protection for an invention it titled “fluid actuated chuck” (the “’856 Application”). See Administrative Record of International Application Number PCT/US 96/03856 (the “ ’856 Record”) at 4-8. The PTO assigned international application number PCT/US 96/03856 to the ’856 Application. See id. at 4. The ’856 Application listed plaintiff as the applicant and also listed two further applicants and/or inventors: R.S.R. Adtec Ltd. and Dov Sheffer. See id. at 4-5. In the ’856 Application, plaintiff claimed a priority date of March 22, 1995 for the invention, based on an application submitted on that date in Israel. See id. at 8. In addition, in the box on the application that enables an applicant to provide its own (or its agent’s) “file reference” number “if desired,” plaintiff listed “COLB13401PGT.” See id. at 4.

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47 F. Supp. 2d 425, 1998 U.S. Dist. LEXIS 19898, 1998 WL 898146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/helfgott-karas-pc-v-lehman-nysd-1998.