Medtronic, Inc. v. Lee

151 F. Supp. 3d 665, 118 U.S.P.Q. 2d (BNA) 1569, 2016 U.S. Dist. LEXIS 7737
CourtDistrict Court, E.D. Virginia
DecidedJanuary 21, 2016
DocketCase No. 1:1-15-cv-946
StatusPublished
Cited by1 cases

This text of 151 F. Supp. 3d 665 (Medtronic, Inc. v. Lee) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Medtronic, Inc. v. Lee, 151 F. Supp. 3d 665, 118 U.S.P.Q. 2d (BNA) 1569, 2016 U.S. Dist. LEXIS 7737 (E.D. Va. 2016).

Opinion

MEMORANDUM OPINION & ORDER

Gerald Bruce Lee, United States District Judge

THIS .MATTER is before the Court on Defendant Michelle Lee’s Motion to Dismiss for Lack of Subject-Matter Jurisdiction (Doc. 11) and Motion to Dismiss Count IV for Failure to State a Claim (Doc. 12). This case arises from the Patent and Trademark Board’s (“PTAB”) decision to terminate an inter partes review of United States Patent Numbers 7,769,-605 (“the ’605 patent”) and 7,870,249 (“the ’249 patent”).

Plaintiff brings this action to appeal the PTAB’s' decision, asserting that the Administrative Procedure Act (“APA”) grants this Court jurisdiction to review Plaintiffs appeal. Defendant, in response, brings this Motion to Dismiss for Lack of Subject-Matter Jurisdiction, asserting primarily that § 314(d) of the recently enacted America Invents Act (“AIA”), precludes judicial review of the PTAB’s decision. This case turns on the interpretation of the AIA and how it intersects with the APA.

'There are four issues before the Court. The first issue is whether Congress, through the AIA, precluded APA judicial review of PTAB determinations of “whether to institute” inter partes' review proceedings over previously issued patents. This Court holds that, through the express language and intricate scheme of the AIA, Congress has precluded judicial review of PTAB determinations of “whether to institute” inter partes review of previously Issued patents. •

The second issue is whether the PTAB’s decision to terminate an already-instituted inter partes review, constitutes a decision on “whether to institute” inter partes review, and is thus final and nonappealable¡ This Court holds that the PTAB’s decision to terminate a previously instituted review proceeding constitutes a decision of “whether to Institute” inter partes review because the decision to terminate nevertheless requires the PTAB make a determination of whether an inter partes review. Thus, when the PTAB makes a determination of whether to institute inter partes review — whether at the outset óf a request for inter partes review or after having previously instituted the inter partes review — this constitutes a decision on “whether to institute” inter partes review for the purposes of the AIA and therefore is final and nonappealable.

The third issue is whether Plaintiffs position, as statutorily precluded from appealing to the Federal Circuit and having no alternative remedy for judicial review of the PTAB’s decision to terminate inter partes review, is sufficient to confer jurisdiction on this Court under the APA. The Court holds that, though the APA confers a general cause of action to obtain judicial review of an ageney action when no other adequate remedy exists, this allocation applies only when a statutory provision does not explicitly preclude such judicial review. Here, because the AIA explicitly precludes judicial review of PTAB determinations of “whether to institute” inter partes review through express language, its revised statutory scheme, and recent case law, the APA does not grant this Court with jurisdiction to review Plaintiffs appeal of the PTAB’s decision.

Finally,' the fourth issue is whether Plaintiffs challenge to the PTAB’s standard for determining what constitutes a Real Party in Interest or the PTAB’s ap[669]*669plication of that standard, is different from a challenge of the- PTAB’s decision on whether to institute inter partes review, and therefore permits this Court jurisdiction to review Plaintiffs appeal. The Court holds that the-AIA’s preclusive language governing the PTAB’s' decision on whether to institute inter paries review applies to the decision as whole, including the PTAB standard and its application; again, precluding this Court from exercising jurisdiction over Plaintiffs claim.

I. BACKGROUND

This case began as a patent infringement dispute between Cardiocom, LLC (“Cardiocom”) — Plaintiffs subsidiary — and Robert Bosch Healthcare Systems, ■ Inc. (“Bosch”) regarding the ’605 and ’249 patents. (Doc. 13, Mem. in Supp. of Def. Mtn. to Dismiss for Lack of Juris, at 8-9). On April 26, 2013, Bosch filed a complaint in the United States District Court for' the Eastern District of Texas against Cardio-com, asserting that Cardiocom had infringed six of Bosch’s patents, including the ’605 and ’249 patents. Id. at 9. While this action was pending, Cardiocom' sought to have the United States Patent and Trademark Office (“USPTO”) conduct an administrative review of the patents Bosch alleged Cardiocom had infringed. Id. In July 2013, Cardiocom filed its first, petitipn requesting that the USPTO institute inter partes review of the, ’605 and ’249 patents. Id. at 10. However, one month later in August 2013, Medtronic, Inc., the Plaintiff in this action, purchased Cardiocom, making Cardiocom its wholly-owned subsidiary. Id.

On December 30, 2013, while its inter partes review petitions were still pending, Cardiocom attempted to add Plaintiff Med-tronic as a Real Party in Interest (“RPI”) to its proceeding. (Doc. 13-1, Exhibit'A, Cardiocom’s Notice of Real Party in Interest). ■ However, on January 16, 2014, the Patent and Trademark Board (“PTAB”) determined not- to institute inter partes review of the ’605 and ’249 patents. (Doc. 13-1, Exhibit B, USPTO’s Decision Denying Institution of Inter Partes Review). In spite of this, in March and April 2014, Plaintiff, without its subsidiary Cardiocom, ■filed new petitions seeking institution of inter partes review of the very same patents. (Doc. 13-1, Exhibit C, Medtronic’s Petition, for - Inter Partes Review at 1). Plaintiff was listed as the only RPI in the new petitions. Id. In. response, Bosch opposed the institution of inter partes review and argued that Cardiocom was also an RPI and as such, should have been included in Plaintiffs petition. (Doc. 13-1, Exhibit D, Patent Owner’s Mtn. for Addt’l Discovery from Pet,. Medtronic, Inc. at 1).

Nevertheless, in - a decision issued on September 11,' 2014; the PTAB decided to institute inter partes review of the- ’605 and ’249 patents. (Doc. 13 at 10). With respect to the RPI issue, the PTAB concluded that B®sch had not provided a sufficient factual basis upon which to conclude, ' based on the current record, that Cardio-com was an RPI to Plaintiffs petition for inter partes reviews' of the ’605 and ’249 patents. Id. at 9. -• Thus, the inter partes review'proceedings continued. Id. at 10. In spite of this, Bosch filed a motion with the PTAB requesting the ability to obtain further discovery from Plaintiff regarding the RPI issue. (Doc. 13-1, Exhibit -D). The PTAB agreed, “in the interest of justice.” Id. at 4. After Plaintiff provided discovery, Bosch moved the PTAB to rescind its decision to institute inter partes proceedings and terminate the pending review proceedings. , (Doc,. 13-1, Exhibit F, Patent Owner’s Mtn. to Terminate).

■ Drawing on the proceedings' in the U.S. District Court for the Northern District of California, Bosch asserted that Cardiocom, [670]*670while arguing that the district court should stay the pending litigation, labeled itself as the RPI, by stating that it was the party that had requested inter partes review of the ’605 and '249 patents.. Memo in Supp. of Def. Mtn.

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Bluebook (online)
151 F. Supp. 3d 665, 118 U.S.P.Q. 2d (BNA) 1569, 2016 U.S. Dist. LEXIS 7737, Counsel Stack Legal Research, https://law.counselstack.com/opinion/medtronic-inc-v-lee-vaed-2016.