Return Mail, Inc. v. U.S. Postal Serv.

587 U.S. 618, 139 S. Ct. 1853, 204 L. Ed. 2d 179, 2019 U.S. LEXIS 4028
Supreme Court of the United States·Decided June 10, 2019·No. 17-1594·Published·Cited by 60 cases

Opinion

Justice SOTOMAYOR delivered the opinion of the Court.

*1858 In the Leahy-Smith America Invents Act of 2011, 35 U.S.C. § 100 et seq. , Congress created the Patent Trial and Appeal Board and established three new types of *1859 administrative proceedings before the Board that allow a "person" other than the patent owner to challenge the validity of a patent post-issuance. The question presented in this case is whether a federal agency is a "person" able to seek such review under the statute. We conclude that it is not.

I

A

The Constitution empowers Congress "[t]o promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective ... Discoveries." Art. I, § 8, cl. 8. Pursuant to that authority, Congress established the United States Patent and Trademark Office (Patent Office) and tasked it with "the granting and issuing of patents." 35 U.S.C. §§ 1 , 2(a)(1).

To obtain a patent, an inventor submits an application describing the proposed patent claims to the Patent Office. See §§ 111(a)(1), 112. A patent examiner then reviews the application and prior art (the information available to the public at the time of the application) to determine whether the claims satisfy the statutory requirements for patentability, including that the claimed invention is useful, novel, nonobvious, and contains eligible subject matter. See §§ 101, 102, 103. If the Patent Office accepts the claim and issues a patent, the patent owner generally obtains exclusive rights to the patented invention throughout the United States for 20 years. §§ 154(a)(1), (2).

After a patent issues, there are several avenues by which its validity can be revisited. The first is through a defense in an infringement action. Generally, one who intrudes upon a patent without authorization "infringes the patent" and becomes subject to civil suit in the federal district courts, where the patent owner may demand a jury trial and seek monetary damages and injunctive relief. §§ 271(a), 281-284. If, however, the Federal Government is the alleged patent infringer, the patent owner must sue the Government in the United States Court of Federal Claims and may recover only "reasonable and entire compensation" for the unauthorized use. 28 U.S.C. § 1498 (a).

Once sued, an accused infringer can attempt to prove by clear and convincing evidence "that the patent never should have issued in the first place." Microsoft Corp. v. i4i L. P. , 564 U. S. 91 , 96-97, 131 S.Ct. 2238 , 180 L.Ed.2d 131 (2011) ; see 35 U.S.C. § 282 (b). If a defendant succeeds in showing that the claimed invention falls short of one or more patentability requirements, the court may deem the patent invalid and absolve the defendant of liability.

The Patent Office may also reconsider the validity of issued patents. Since 1980, the Patent Act has empowered the Patent Office "to reexamine-and perhaps cancel-a patent claim that it had previously allowed." Cuozzo Speed Technologies , LLC v. Lee , 579 U. S. ----, ----, 136 S.Ct. 2131 , 2137, 195 L.Ed.2d 423 (2016). This procedure is known as ex parte reexamination. "Any person at any time" may cite to the Patent Office certain prior art that may "bea[r] on the patentability of any claim of a particular patent"; and the person may additionally request that the Patent Office reexamine the claim on that basis. 35 U.S.C. §§ 301 (a), 302(a). If the Patent Office concludes that the prior art raises "a substantial new question of patentability," the agency may reexamine the patent and, if warranted, cancel the patent or some of its claims. §§ 303(a), 304-307. The Director of the Patent Office may also, *1860 on her "own initiative," initiate such a proceeding. § 303(a).

In 1999 and 2002, Congress added an "inter partes reexamination" procedure, which similarly invited "[a]ny person at any time" to seek reexamination of a patent on the basis of prior art and allowed the challenger to participate in the administrative proceedings and any subsequent appeal. See § 311(a) (2000 ed.); §§ 314(a), (b) (2006 ed.); Cuozzo Speed Technologies , 579 U. S. at ----, 136 S.Ct. at 2137 .

B

In 2011, Congress overhauled the patent system by enacting the America Invents Act (AIA), which created the Patent Trial and Appeal Board and phased out inter partes reexamination. See 35 U.S.C. § 6 ; H. R. Rep. No. 112-98, pt. 1, pp. 46-47. In its stead, the AIA tasked the Board with overseeing three new types of post-issuance review proceedings.

First, the "inter partes review" provision permits "a person" other than the patent owner to petition for the review and cancellation of a patent on the grounds that the invention lacks novelty or nonobviousness in light of "patents or printed publications" existing at the time of the patent application. § 311.

Second, the "post-grant review" provision permits "a person who is not the owner of a patent" to petition for review and cancellation of a patent on any ground of patentability. § 321; see §§ 282(b)(2), (b)(3).

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Return Mail, Inc. v. U.S. Postal Serv., 587 U.S. 618, 139 S. Ct. 1853, 204 L. Ed. 2d 179, 2019 U.S. LEXIS 4028 (2019).

587 U.S. 618 (Return Mail, Inc. v. U.S. Postal Serv.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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