Telectronics Pacing Systems, Inc. v. Ventritex, Inc.

982 F.2d 1520, 25 U.S.P.Q. 2d (BNA) 1196, 93 Daily Journal DAR 778, 1992 U.S. App. LEXIS 33297, 1992 WL 373970
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 21, 1992
Docket91-1289
StatusPublished
Cited by64 cases

This text of 982 F.2d 1520 (Telectronics Pacing Systems, Inc. v. Ventritex, 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
Telectronics Pacing Systems, Inc. v. Ventritex, Inc., 982 F.2d 1520, 25 U.S.P.Q. 2d (BNA) 1196, 93 Daily Journal DAR 778, 1992 U.S. App. LEXIS 33297, 1992 WL 373970 (Fed. Cir. 1992).

Opinion

PLAGER, Circuit Judge.

In this case, plaintiff Telectronics charged defendant Ventritex with patent infringement, alleging that Ventritex had engaged in activities that were not exempt under 35 U.S.C. § 271(e)(1) (1988) as activities “solely for uses reasonably related” to obtaining FDA approval of its implantable defibrillator. In addition, plaintiff sought a declaratory judgment that, upon FDA approval, sales of Ventritex’s device would infringe Telectronics’ patents. Defendant moved to dismiss the action. The United States District Court for the Northern District of California converted the motion to dismiss to a motion for summary judgment, and granted summary judgment to defendant Ventritex. Telectronics appealed the district court’s judgment pursuant to 28 U.S.C. § 1295(a) (1988). We affirm.

I. FACTUAL BACKGROUND

The basic facts are undisputed. Pursuant to an Investigational Device Exemption (IDE) from the Food and Drug Administration (FDA), Ventritex began conducting clinical trials of its implantable defibrillator in July of 1989. The IDE allowed Ventritex to sell its device, at cost, for implantation in patients in order to obtain data on the device’s clinical operation. See 21 C.F.R. part 812 (1989). This data is required by the FDA for securing pre-market approval of the device. Id. part 814.

Ventritex displayed its defibrillator at seven medical conferences, at which the device was demonstrated to physicians and to some non-physicians. Some of Ventritex’s clinical investigators also submitted an abstract to the American College of Cardiology and presented results of the clinical trial at the conference.

In his fund-raising efforts as President and CEO of Ventritex, Frank M. Fischer described the on-going clinical trial to investors, analysts and journalists. Specifically, Fischer compared Ventritex’s defibrillator to those of other companies, reported on the number of implants and the number of centers doing these implants, and distributed a handout which stated that “Early clinical results are quite promising.”

*1522 Ventritex also mailed a Private Placement Memorandum to potential investors along with a cover letter and a research note from an investment banking firm, both of which described the size and progress of the clinical trial. The funds raised were to be used, among other purposes, for continuing the clinical trials and for manufacturing equipment.

II.PROCEDURAL HISTORY

On October 4, 1989 plaintiff Telectronics filed a complaint seeking five counts of declaratory judgment that defendant Ventritex’s activities in making, using, or selling its implantable defibrillator would infringe plaintiff’s patents 1 upon expiration of the clinical testing exemption under 35 U.S.C. § 271(e)(1). On October 25, 1989 Ventritex moved to dismiss the complaint for failure to state a claim upon which relief could be granted, and because the complaint sought an advisory opinion.

Telectronics amended its complaint on November 14, 1989 to include five additional counts of patent infringement, alleging that defendant had engaged in activities that were not exempt under 35 U.S.C. § 271(e)(1) as activities solely for uses reasonably related to obtaining FDA approval of the device. Ventritex again moved to dismiss on December 11, 1989, on the grounds that the declaratory judgment counts sought an advisory opinion, and that all counts failed to state a claim upon which relief could be granted.

On December 20, 1990 the district court ordered that defendant’s motion to dismiss be converted to a motion for summary judgment. On February 4, 1991 the court entered a brief order granting the defendant’s motion for summary judgment. The judge stated that he was unpersuaded by plaintiff’s arguments and agreed with defendant that its activities were exempt under § 271(e)(1).

On appeal to us, Telectronics claims that the district court erred by (1) exempting under § 271(e)(1) acts which had nothing to do with the clinical trials; (2) sustaining a clinical trial exemption when the data gathered from the clinical trials were used for commercial purposes totally unrelated to FDA reporting; and (3) refusing to hear the declaratory judgment counts when there was an actual controversy. Telectronics further claims that the district court’s judgment must be vacated because it states no reasons for the decision on the declaratory judgment counts. Ventritex’s position is that the district court’s judgment was proper.

III.SCOPE OF REVIEW

Summary judgment is properly granted only where there is no genuine issue of material fact and the prevailing party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56. All evidence must be viewed in a light most favorable to the non-moving party, and all reasonable inferences must be drawn in favor of the non-moving party. Armco, Inc. v. Cyclops Corp., 791 F.2d 147, 149, 229 USPQ 721, 723 (Fed.Cir.1986). We review the grant of summary judgment de novo to determine whether the above standards for summary judgment have been met. Winner Int’l Corp. v. Wolo Mfg. Corp., 905 F.2d 375, 376, 15 USPQ2d 1076, 1077 (Fed.Cir.1990); Armco, 791 F.2d at 149, 229 USPQ at 723.

IV.DISCUSSION

The basic facts are undisputed. What remains to be determined is whether defendant Ventritex was entitled to judgment as a matter of law. The issues before us are: (1) were Ventritex’s activities exempt under 35 U.S.C. § 271(e)(1) from charges of infringement, and (2) did the district court judge abuse his discretion in refusing to hear the declaratory judgment counts regarding future infringement?

A.

Appellant Telectronics charges that Ventritex’s demonstrations of the defibrillator to non-physicians at medical conferences are non-exempt activities because these demonstrations were not solely for uses *1523 reasonably related to FDA approval. Appellee Ventritex responds that demonstrating the device at medical conferences was necessary to obtain clinical investigators for its trials.

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982 F.2d 1520, 25 U.S.P.Q. 2d (BNA) 1196, 93 Daily Journal DAR 778, 1992 U.S. App. LEXIS 33297, 1992 WL 373970, Counsel Stack Legal Research, https://law.counselstack.com/opinion/telectronics-pacing-systems-inc-v-ventritex-inc-cafc-1992.