Merck & Co., Inc. v. U.S. International Trade Commission

774 F.2d 483, 7 I.T.R.D. (BNA) 1409, 227 U.S.P.Q. (BNA) 779, 1985 U.S. App. LEXIS 15295
CourtCourt of Appeals for the Federal Circuit
DecidedOctober 9, 1985
DocketAppeal 85-1277
StatusPublished
Cited by14 cases

This text of 774 F.2d 483 (Merck & Co., Inc. v. U.S. International Trade Commission) 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
Merck & Co., Inc. v. U.S. International Trade Commission, 774 F.2d 483, 7 I.T.R.D. (BNA) 1409, 227 U.S.P.Q. (BNA) 779, 1985 U.S. App. LEXIS 15295 (Fed. Cir. 1985).

Opinions

FRIEDMAN, Circuit Judge.

This is a petition by Merck & Co., Inc. (Merck), for review of a determination of the United States International Trade Commission (Commission) summarily terminating an investigation under section 337 of the Tariff Act of 1930, 19 U.S.C. § 1337 (1982). The investigation involved the importation into the United States of a product manufactured abroad by a process that allegedly violated Merck’s patent covering the process. We reverse the Commission’s determination and remand the case to the agency for further proceedings.

I

A. This case involves U.S. Patent No. 3,629,284 (’284 patent), which is directed to a method of producing Indomethacin, a pharmaceutical compound useful in the therapy of inflammatory diseases. The application that matured into the ’284 patent, Serial No. 838,037 (‘037 application), originally was assigned to Sumitomo Chemical Company, Limited (Sumitomo), a Japanese company. Sumitomo also had four other pending patent applications claiming related subject matter. The examiner agreed to allow the ’037 application in view of Sumi-tomo’s expressed intent “to insure the issuance of the patents [resulting from all five applications] on the same day” “so as to avoid any question of extension of monopoly as by double patenting____”

After the Patent and Trademark Office sent a Notice of Allowance of the ’037 application to Sumitomo, Sumitomo filed a terminal disclaimer which, in addition to disclaiming the portions of the terms of any of the five patents covering the period subsequent to the earliest expiration date of any of them, also stated:

[I]t is agreed (pursuant to the Commission’s notice appearing at 860 O.G. 661-2) that the patent issuing on [this] application ... shall expire immediately if it ceases to be commonly owned with the patents issuing on applications serial nos. 605,171, 695,332, 635,362, and 605,154 [the four other patents].

The ’284 patent was issued to Sumitomo on December 21, 1971. The four other patents also were issued to Sumitomo.

In 1967, Merck had obtained from Sumi-tomo a nonexclusive license under the patent application that preceded the ’037 application. Merck has been the sole licensee under the ’284 patent.

B. On July 21, 1983, Merck filed a complaint with the Commission seeking to bar the importation of Indomethacin allegedly made according to the method claimed in the ’284 patent. The Commission initially [485]*485rejected the complaint on the ground that Merck, as a nonexclusive licensee, did not have standing to file the complaint.

On December 27, 1983, Merck entered into an agreement with Sumitomo in which Sumitomo assigned to Merck for $50,000 its “entire right, title, and interest, in and to” the ‘284 and one other patent (which did not result from any of the four applications referred to in the terminal disclaimer).

On January 17, 1984, Merck filed with the Commission a new complaint, which reiterated the charges in its prior complaint. The complaint also stated that the patents of which Merck had been the licensee, including the ’284 patent, had been “assigned by Sumitomo to MERCK” in 1983. In response to this complaint, the Commission initiated an investigation.

On August 30, 1984, Mylan Pharmaceuticals, Inc. (Mylan), one of the respondents in the complaint proceeding, moved for a summary determination terminating the investigation. It argued that the December 27, 1983 assignment covered only the ’284 patent and not the other four related patents, and that the ’284 patent therefore had expired under the terminal disclaimer.

On September 4, 1984, Sumitomo assigned to Merck, effective December 27, 1983, and without any additional consideration, “the entire right, title and interest, in and to” the four other patents.

On September 11, 1984, the administrative law judge granted Mylan’s motion and issued an initial determination terminating the investigation. She found that there were “no genuine issues of material fact in issue for the purposes of [the] motion____” She ruled that under the terminal disclaimer, the ’284 patent expired when it was assigned to Merck on December 27, 1983, without the assignment of the four other patents; and that the September 4, 1984 retroactive assignment of the four patents could not revive the expired ’284 patent. She accordingly concluded that following the December 27, 1983 assignment, there no longer existed any rights in the ’284 patent upon which Merck could base a complaint.

The Commission declined to review the initial determination of the administrative law judge terminating the investigation, which thereby became final.

II

We agree with the administrative law judge that the ’284 patent expired on December 27, 1983, unless the four related patents were also transferred to Merck by that assignment. Further, we agree that if the ’284 patent expired, it could not be revived or reactivated by later assignments.

A. 1. If only the language of the assignment agreement itself were considered, there is no immediately apparent basis for rejecting the administrative law judge’s decision. On its face, the December 27, 1983 assignment covered only the '284 patent and did not explicitly convey any interest in any of the four other patents referred to in the terminal disclaimer. The relevant portion of the December 27 assignment states that Sumitomo

hereby assigns and transfers to MERCK & CO., INC. ... the entire right, title and interest, in and to the United States Letters Patent Number[ ] 3,629,284 ... and all the rights and privileges under said Letters Patent[ ] and reissues thereof for fifty thousand United States Dollars____
SUMITOMO undertakes that, when required, it will sign all papers and take all rightful oaths for vesting title thereto in MERCK....
SUMITOMO hereby confirms that the rights and property herein conveyed are, to the best of SUMITOMO’s knowledge and belief, free and clear of any incum-brance and that SUMITOMO has the full right to convey the same as herein expressed.

There is nothing in this language to indicate that Sumitomo thereby assigned to Merck the four other patents as well. In terms it covers only Sumitomo’s “entire right, title and interest in and to the United States Letters Patent Number[] 3,629,284 ... and all the rights and privileges under [486]*486said Letters Patent[]____” Moreover, since the assignment additionally and explicitly conveyed another of Sumitomo’s patents which is not involved in this case, it would seem that if the parties had intended the December 27 assignment to cover the four other patents, they would have so stated. Indeed, Merck admitted in its brief before us that it was unaware of the common ownership provision of the terminal disclaimer during its 1983 negotiations with Sumitomo.

Under this analysis, the effect of the December 27 assignment was that the ’284 patent “cease[d] to be commonly owned” with the four other patents and the ’284 patent “expire[d] immediately.” If the ’284 patent thus expired, it could not be revived or recreated by a retroactive assignment of the other four patents.

2.

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774 F.2d 483, 7 I.T.R.D. (BNA) 1409, 227 U.S.P.Q. (BNA) 779, 1985 U.S. App. LEXIS 15295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merck-co-inc-v-us-international-trade-commission-cafc-1985.