Rapid Litigation Management Ltd. v. CellzDirect, Inc.

827 F.3d 1042, 119 U.S.P.Q. 2d (BNA) 1370, 2016 U.S. App. LEXIS 12352, 2016 WL 3606624
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 5, 2016
Docket2015-1570
StatusPublished
Cited by136 cases

This text of 827 F.3d 1042 (Rapid Litigation Management Ltd. v. CellzDirect, Inc.) 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
Rapid Litigation Management Ltd. v. CellzDirect, Inc., 827 F.3d 1042, 119 U.S.P.Q. 2d (BNA) 1370, 2016 U.S. App. LEXIS 12352, 2016 WL 3606624 (Fed. Cir. 2016).

Opinion

PROST, Chief Judge.

Appellants seek review of the district court’s summary judgment determination that U.S. Patent No. 7,604,929 (“’929 patent”) is invalid under 35 U.S.C. § 101. The district court concluded that the ’929 patent is directed to a patent-ineligible law of nature — that hepatoeytes are capable of surviving multiple freeze-thaw cycles — and that the patented process lacks the requisite inventive concept. Celsis In Vitro, Inc. v. CellzDirect, Inc., 83 F.Supp.3d 774 (N.D. Ill. 2015), supplemented, 94 F.Supp.3d 940 (N.D. Ill. 2015). Because the ’929 patent claims are not directed to a patent-ineligible concept, we vacate and remand.

*1045 I

Hepatocytes are a type of liver cell that have a number of attributes useful for testing, diagnostic, and treatment purposes. For example, hepatocytes can be used to investigate how drugs under development may be metabolized by the liver or can be used to measure a drug’s toxicity or other effects on liver biology. Certain factors, however, limit their use: fresh hepa-tocytes can only be obtained from liver resections or non-transplantable livers of organ donors, and their lifespan is short. ’929 patent col. 2 11. 25-35. Supply is thus erratic, making availability limited and unpredictable. Id. at col. 2 11. 22-35.

Prior to the invention of the ’929 patent, scientists developed “cryopreservation” techniques to preserve hepatocytes for later use. Id. at col. 2 11. 36-40. These methods generally comprised freezing hepato-cytes at frigid temperatures; then, when needed, thawing them and recovering the viable cells using density gradient fractionation. Id. at col. 2 1. 36-col. 3 1. 4, col. 10 11. 30-60.

The prior art cryopreservation method had its problems, however. It was understood that the process could damage the hepatocytes, leading to poor recovery numbers of viable cells. Id. at col. 3 11. 5-32. Furthermore, these prior methods were unsuitable for preparing multi-donor hepa-tocyte pools. Id. at col. 3 11. 33-60. Because hepatocytes from different donors generally have different metabolic properties, researchers desired to pool hepatocytes from various source livers to create a hepato-cyte preparation approximating average liver cells. Id. at col. 1111. 5-27. Such pools are useful research tools to study a drug’s impact on a representative population. But because of the limited availability of donor livers and hepatocytes’ short lifespan, pooled samples from multiple donors could only be created by first accumulating and freezing enough hepatocytes from single donors, then thawing and combining them for immediate use. Id. at col. 3 11. 49-60. Given the understanding that cryopreser-vation could damage cells, prevailing wisdom was that hepatocytes could be frozen only once and then had to be either used or discarded. Celsis, 83 F.Supp.3d at 777-78. This severely limited the creation of pooled hepatocyte products. Id.

The inventors of the ’929 patent discovered that some fraction of hepatocytes are capable of surviving multiple freeze-thaw cycles. As inventor Dr. Hardy testified, “initially we just proved that you could twice freeze the cells and still have viable cells.... [T]he unexpected outcome was that cells twice frozen behaved like cells that were once frozen.” Id. at 778-79 (quoting J.A. 148-49).

Armed with this discovery, the inventors developed an improved process of preserving hepatocytes, claimed in the ’929 patent. In general, the improved process comprises: (A) subjecting previously frozen and thawed cells to density gradient fractionation to separate viable cells from non-viable ones; (B) recovering the viable cells; and (C) refreezing the viable cells. ’929 patent col. 19 1. 56-col. 20 1. 20. The claims specify that the resulting hepatocyte preparation can be thawed and used immediately, exhibiting 70% viability after the second thaw. Id.

The ’929 patented process has a number of advantages over the prior art. By separating out and refreezing only the viable cells, the preserved hepatocyte prepara-. tions can be thawed and used later without unacceptable loss of viability. Id. at col. 3 11. 64-67. Pooled hepatocyte preparations are also much more easily made: hepato-cyte samples from single donors can be pooled together to create a composite preparation that can be refrozen for later use. Id. at col. 3 1. 67-col. 4 1. 6, col. 111. 2- *1046 col. 12 1. 27. This was not possible with the prior art cryopreservation techniques. Appellant employs the improved process in its LiverPooi™ product, which comprises multi-eryopreserved, pooled hepatocyte preparations useful for a wide variety of research purposes.

Claim 1 is representative of the ’929 patent. It recites:

1. A method of producing a desired preparation of multi-cryopreserved hepatocytes, said hepatocytes being capable of being frozen and thawed at least two times, and in which greater than 70% of the hepatocytes of said preparation are viable after the final thaw, said method comprising:
(A) subjecting hepatocytes that have been frozen and thawed to density gradient fractionation to separate viable hepatocytes from nonviable hepa-tocytes,
(B) recovering the separated viable hepatocytes, and
(C) cryopreserving the recovered viable hepatocytes to thereby form said desired preparation of hepatocytes without requiring a density gradient step after thawing the hepatocytes for the second time, wherein the hepato-cytes are not plated between the first and second cryopreservations, and wherein greater than 70% of the hepa-tocytes of said preparation are riable after the final thaw.

Additional dependent claims are directed to the type of density gradient fractionation, the type of hepatocytes, viability, _ and pooling. For example, with respect to pooling, claim 5 recites:

5. The method of claim 1, wherein said preparation comprises a pooled preparation of hepatocytes of multiple sources.

IVT sued LTC for infringing the ’929 patent. 1 In response, LTC filed a motion for summary judgment of invalidity under 35 U.S.C. §§ 101 and 112. The district court granted the motion, finding the ’929 patent invalid under § 101 and dismissing the action with prejudice (without reaching the § 112 issues). Celsis, 83 F.Supp.3d at 785-86. In finding the patent invalid under § 101, the court applied the Supreme Court’s two-step framework for determining patent eligibility. See Alice Corp. v. CLS Bank Int’l, — U.S. -, 134 S.Ct. 2347, 2355, 189 L.Ed.2d 296 (2014) (citing Mayo Collaborative Servs. v. Prometheus Labs., Inc., — U.S. -, 132 S.Ct. 1289, 1294, 1296-98, 182 L.Ed.2d 321 (2012)).

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827 F.3d 1042, 119 U.S.P.Q. 2d (BNA) 1370, 2016 U.S. App. LEXIS 12352, 2016 WL 3606624, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rapid-litigation-management-ltd-v-cellzdirect-inc-cafc-2016.