Japanese Foundation for Cancer Research v. Lee

773 F.3d 1300, 113 U.S.P.Q. 2d (BNA) 1140, 2014 U.S. App. LEXIS 23109, 2014 WL 6888793
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 9, 2014
Docket2013-1678, 2014-1014
StatusPublished
Cited by10 cases

This text of 773 F.3d 1300 (Japanese Foundation for Cancer Research 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
Japanese Foundation for Cancer Research v. Lee, 773 F.3d 1300, 113 U.S.P.Q. 2d (BNA) 1140, 2014 U.S. App. LEXIS 23109, 2014 WL 6888793 (Fed. Cir. 2014).

Opinion

PROST, Chief Judge.

The United States Patent and Trademark Office (“PTO”) appeals from the decision of the United States District Court for the Eastern District of Virginia granting the Japanese Foundation for Cancer Research’s (“the Foundation”) cross-motion for summary judgment that the PTO acted arbitrarily and capriciously, and abused its discretion, when it refused to withdraw the terminal disclaimer on U.S. Patent No. 6,194,187 (“'187 patent”). For the reasons stated below, we reverse.

I

The '187 patent was issued and assigned to the Foundation on February 27, 2001. On October 11, 2011, the Foundation’s attorney of record responsible for the prosecution of the '187 patent filed a statutory disclaimer pursuant to 37 C.F.R. § 1.321(a) with the PTO, disclaiming “the entire term of all claims in U.S. Patent 6,194,187” and requesting that the disclaimer be “duly recorded.” J.A. 894. On December 13, 2011, the Foundation’s attorney of record filed a petition under 37 C.F.R. § 1.182 to withdraw the statutory disclaimer. The petition indicated that the disclaimer “was not filed in the context of any litigation or an assertion of double patenting,” and that the disclaimer had not yet been made public by either the Foundation or the PTO, as it had not yet been entered into the PTO’s electronic Patent Application Information . Retrieval (“PAIR”) database or the paper prosecution file. J.A. 900. The PTO issued a decision denying the Foundation’s petition on January 17, 2012.

, According to the PTO’s decision, the petition indicated that the Foundation’s filed disclaimer included all of the information as well as the fee required pursuant to 37 C.F.R. § 1.321(a). J.A. 928. The PTO also noted that “[t]here is no indication that the power of attorney was revoked or withdrawn,” and thus the attorney of record “appears to be a proper party to file the statutory disclaimer.” J.A. 928-29. The PTO explained that the statutory mechanisms available to correct a patent “are not available to withdraw or otherwise nullify the effect of a recorded terminal disclaimer,” and that the PTO’s established policy was to deny any “request to withdraw or amend a recorded terminal disclaimer in an issued patent on the grounds that the rules of practice and 35 U.S.C. § 253 do not include a mechanism for withdrawal or amendment of such a terminal disclaimer.” J.A. 929. The PTO concluded by noting that even though the disclaimer had not been “fully processed” the “patent owner freely dedicated to the public the entire term” of all the patent’s claims when the disclaimer was filed. Id.

The Foundation’s terminal disclaimer subsequently appeared in the '187 patent’s prosecution file on the electronic PAIR database. On February 27, the Foundation filed a petition under 37 C.F.R. §§ 1.182 and 1.183 asking the PTO to withhold publication of the terminal disclaimer in the Official Gazette, and indicating that it would file a request for reconsideration, which it filed on March 16. (The Foundation asked in the alternative for relief under 37 C.F.R. §§ 1.182 and 1.183 “to invoke the discretion of the director and suspend the rules.”). In August, the Foundation’s attorney of record met with the PTO and, following that meeting, filed a supplemental petition addressing its argument concerning whether the PTO had the inherent authority to grant the relief the Foundation requested.

*1303 The Foundation’s March petition de-scribed what the Foundation characterized as “newly revealed information” and “newly discovered evidence.” J.A. 976. This included signed declarations from a number of personnel associated with one of the '187 patent’s Japanese licensees, Kyowa Hakko Kirin, Inc. (“KHK”), and KHK’s Japanese patent counsel, Kyowa Law Group (“Kyowa Law”). 1 According to the declarations and the Foundation’s petition, the following series of events preceded the Foundation’s attorney of record’s filing of the statutory disclaimer.

First, on March 8, 2011, KHK’s in-house counsel contacted a paralegal at Kyowa Law to inquire as to whether a patent may be abandoned or disclaimed before it lapsed because of non-payment of the next maintenance fee. The paralegal’s declaration states that she contacted her “boss” and together they “conducted research which indicated that a disclaimer could be filed under U.S. statutory and regulatory provisions.” J.A. 963. Then, the next day, March 9, the paralegal declares that she sent a letter by fax to the Foundation’s attorney of record’s law firm, Foley & Lardner LLP (“Foley”), which reads, in relevant part, as follows (below the subject line “Re: U.S. Patent No. 6,194,187” and dated March 9):

Dear Sirs:
Our clients would like to abandon the captioned patent positively and invalidate this patent before the case lapses by non-payment of the next maintenance fees, which will be due on August 27, 2012.
Would you please let us have the necessary forms and/or information for the procedure of positive abandonment, preferably by March 15, 2011.
We would appreciate your immediate reply by return facsimile.

J.A. 967. The paralegal’s declaration further states that after the March 11 earthquake and subsequent tsunami in Japan, her work “reporting and following up the progress of the disclaimer was adversely affected by the long lasting irregular and abnormal situation after the Earthquake.” J.A. 964. She explained this was why she did not send a copy of the March 9 letter to KHK or otherwise inform KHK of its contents. Id. Then, on October 11, the Foundation’s attorney of record filed the terminal disclaimer at the PTO. The paralegal’s declaration goes on to state that she received a copy of the filed terminal disclaimer from the Foundation’s attorney of record on November 29, 2011, and then reported it to KHK. Id. The next day, she was informed by KHK instructing Kyowa Law to “urgently ask Foley to restore the patent.” Id. (The Foundation’s attorney of record subsequently filed the aforementioned December 2011 petition.)

The Foundation’s petition also included a declaration from the Executive Director of the Foundation stating inter alia, that the Foundation neither requested nor authorized the disclaimer. J.A. 969. The petition also included a declaration from the individual “in charge of patents regarding biotechnology at KHK” stating that KHK did not have the authority to disclaim the patent, and that the declarant did not instruct nor authorize any action leading to the '187 patent’s disclaimer. J.A. 970.

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773 F.3d 1300, 113 U.S.P.Q. 2d (BNA) 1140, 2014 U.S. App. LEXIS 23109, 2014 WL 6888793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/japanese-foundation-for-cancer-research-v-lee-cafc-2014.