Teles Ag v. Kappos

846 F. Supp. 2d 102, 2012 WL 695610, 2012 U.S. Dist. LEXIS 29257
CourtDistrict Court, District of Columbia
DecidedMarch 5, 2012
DocketCivil Action No. 2011-0476
StatusPublished
Cited by3 cases

This text of 846 F. Supp. 2d 102 (Teles Ag v. Kappos) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Teles Ag v. Kappos, 846 F. Supp. 2d 102, 2012 WL 695610, 2012 U.S. Dist. LEXIS 29257 (D.D.C. 2012).

Opinion

MEMORANDUM OPINION

BERYL A. HOWELL, District Judge.

This suit, arising out of the United States Patent and Trademark Office’s (the “PTO”) rejection of claims 34-36 and 38 of U.S. Patent No. 6,954,453 B1, presents a question of statutory construction that has not yet been addressed by this or other Circuits. The plaintiffs are patent owners, TELES AG and Sigram Schindler Beteiligungsgesellschaft mbH (collectively, “Teles”), who brought suit under section 306 of the Patent Act, 35 U.S.C. § 306, against David J. Kappos, Under Secretary of Commerce for Intellectual Property and Director of the PTO, in his official capacity, to contest an adverse decision of the PTO’s Board of Patent Appeals and Interferences (the “BPAI”). The defendant has moved to dismiss the Complaint, arguing that this Court lacks subject matter jurisdiction, because, following amendments to the Patent Act in 1999, “patent owners” may appeal adverse ex parte reexamination decisions by the BPAI only to the United States Court of Appeals for the Federal Circuit and may not file a civil action in this Court. 1 For the reasons *104 explained below, the defendant’s Motion to Dismiss is granted and this case shall be transferred to the U.S. Court of Appeals for the Federal Circuit pursuant to 28 U.S.C. § 1631. 2

1. BACKGROUND

A. Statutory Framework

At issue in this case is the import of amendments made in 1999 to certain provisions of the Patent Act and how those amendments affect the right of a patent owner to seek judicial review following an ex parte reexamination proceeding. The plaintiffs claim the 1999 amendments are either irrelevant or merely “housekeeping” measures while the defendant claims these amendments were substantive and removed jurisdiction from this Court. Review of the statutory framework, including the chronology of amendments made to key provisions, helps to inform resolution of these divergent characterizations of the 1999 amendments.

In 1980, Congress created the reexamination system to allow patent owners or a third-party requester to confirm or challenge a patent. This newly created reexamination system “enabled the PTO to recover administrative jurisdiction over an issued patent in order to remedy any defects in the examination which that agency had initially conducted and which led to the grant of the patent,” and served “an important public purpose ... to revive United States industry’s competitive vitality by restoring confidence in the validity of patents issued by the PTO.” Patlex Corp. v. Mossinghoff, 758 F.2d 594, 601 (Fed.Cir. 1985). Among the anticipated benefits of the reexamination process were to “settle validity disputes more quickly and less expensively than the often protracted litigation involved in such cases;” “allow courts to refer patent validity questions to the expertise of the Patent Office;” and “reinforce investor confidence in the certainty of patent rights by affording the PTO a broader opportunity to review doubtful patents.” Id. at 602 (citations and quotation marks omitted). According to a report from the House of Representatives that accompanied the 1980 legislation: “Reexamination will permit efficient resolution of questions about the validity of issued patents without recourse to expensive and lengthy infringement litigation.” H.R. Rep. 96-1307(I), at 3-4 (1980), reprinted in 1980 U.S.C.C.A.N. 6460, 6462. In brief, “[t]he reexajnination statute permits the patent owner or any other person to (1) cite to the Office patents or printed publications as prior art pertaining to the validity of an issued patent, and (2) request that the Office reexamine any claim of that patent on the basis of the cited prior art.” H.R. Rep. No. 105-39, at 36 (1997).

The plaintiffs bring their claims under section 306 of the Patent Act, 35 U.S.C. § 306, the text of which remained the same from 1980, when the reexamination process was created, until recent amendments made in 2011. 3 Prior to the 2011 *105 amendments, section 306 stated, in its entirety:

The patent owner involved in a reexamination proceeding under this chapter may appeal under the provisions of section 134 of this title, and may seek court review under the provisions of sections 141 to 145 of this title, with respect to any decision adverse to the patentability of any original or proposed amended or new claim of the patent.

35 U.S.C. § 306 (2006); see Compl. ¶ 14.

The reexamination system was perceived to have “only limited success.” S.Rep. No. 105-42, at 57 (1997). Congress, therefore, responded with periodic amendments to make the reexamination process “a truly viable alternative for resolving questions of patent validity.” S.Rep. No. 110-259, at 19 (2008). In 1999, Congress enacted the American Inventors Protection Act (“AIPA”), Pub.L. No. 106-113, 113 Stat. 1501 (1999), as part of the Intellectual Property and Communications Omnibus Reform Act of 1999, which resulted in amendments to the Patent Act and created an inter partes reexamination system to supplement the existing reexamination process. 4 While the 1999 amendments did not explicitly alter section 306, the 1999 amendments resulted in changes to sections 134, 141, and 145, parts of the Patent Act referenced in section 306. 5 These three sections, all part of the 1952 Patent Act, had not been revised in any way at the time of the creation of the reexamination system in 1980 and, until 1999, only specifically referenced “patent applicants,” not “patent owners.” The changes made to these three sections 134, 141 and 145 are discussed in detail below.

Provisions for administrative appeal of an initial examination of a patent application or a reexamination are provided for in 35 U.S.C. § 134, which was subject only to a minor change in 1984 before it was amended in 1999. Before the 1999 amendments, section 134 read in full: “An applicant for a patent, any of whose claims has been twice rejected, may appeal from the decision of the primary examiner to the Board of Patent Appeals and Interferences, having once paid the fee for such appeal.” 35 U.S.C. § 134 (1994). That section was updated in the 1999 amendments to enumerate three separate categories of parties who may appeal to the BPAI and expressly referenced for the first time the reexamination process created in 1980 and the new

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Cite This Page — Counsel Stack

Bluebook (online)
846 F. Supp. 2d 102, 2012 WL 695610, 2012 U.S. Dist. LEXIS 29257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teles-ag-v-kappos-dcd-2012.