• By Donald Zuhn

    Washington - Capitol #6Last month, more than 90 national and state advocacy organizations sent a letter to the leadership of the House and Senate Judiciary Committees, urging Congress to enact legislative reforms that will maintain a strong and secure patent system that protects the rights of legitimate patent owners.  In the letter, which was addressed to Senator Chuck Grassley (R-IA), Chairman of the Senate Committee on the Judiciary, Representative Bob Goodlatte (R-VA), Chairman of the House Committee on the Judiciary, Senator Patrick Leahy (D-VT), Ranking Member of the Senate Committee on the Judiciary, and Representative John Conyers (D-MI), Ranking Member of the House Committee on the Judiciary, the organizations noted that they were "prepared to work with you to strengthen our current patent system to foster an environment ripe for innovation and investment."

    The signatories suggested that "that any legislative reforms should maintain a strong and secure patent system that recognizes the rights of legitimate patent owners and addresses the new forms of abuses that have emerged in both the courts and at the U.S. Patent & Trademark Office (PTO)."  While noting that "[p]atents are critical to the drug development process, and strong and reliable patents are the fundamental basis upon which investment in new therapies and treatment occurs," the letter contends that "[t]he PTO has implemented the system [of post-grant proceedings created under the America Invents Act] in such a way that it is now easier to invalidate patents than in district court."  The organizations express concern that the Office's implementation of post-grant proceedings "will cause the value of patents to diminish and as a result, investment in new treatments for patients could possibly suffer."  "[I]f a patent's value can be easily diminished or challenged on a broad range of grounds at any time during the long drug development process," the groups suggest that "it will be even more difficult to secure financing for therapeutic developments."  The signatories therefore request that "Congress address these issues in any comprehensive legislation to ensure the system is balanced."

    The national organization signatories include: Allergy & Asthma Network, Alpha-1 Foundation American, Autoimmune Related Diseases Association, American Kidney Fund, Bonnie J. Addario Lung Cancer Foundation, Bridge The Gap – SYNGAP Education and Research Foundation, CADASIL Together We Have Hope, Caregivers Action Network, Celiac Disease Foundation, Chris4Life Colon Cancer Foundation, COPD Foundation, Cure SMA, Epilepsy Foundation, EveryLife Foundation for Rare Diseases, Global Colon Cancer Association, Global Genes, Hannah's Hope Fund, HealthHIV, HealthyWomen, Immune Deficiency Foundation, International Cancer Advocacy Network, International Foundation for Autoimmune Arthritis, International Myeloma Foundation, Kidney Cancer Association, Leukemia & Lymphoma Society, Lupus and Allied Diseases Association, Inc., Lupus Foundation of America, Men's Health Network, Mended Hearts, Inc., MLD Foundation, National Adrenal Diseases Foundation, National Alliance on Mental Illness, National Coalition for Cancer Research (NCCR), National Council for Behavioral Health, National Grange, National MS Society, National Patient Advocate Foundation, National Psoriasis Foundation, Ovarian Cancer National Alliance, Parent Project Muscular Dystrophy, Parkinson's Action Network, Prostate Health Education Network, Inc., Rare and Undiagnosed Network (RUN), RetireSafe, Salud USA, St. Baldrick's Foundation, The AIDS Institute, The ALS Association, The Center for Health Care Services, The Desmoid Tumor Research Foundation, The National Hispanic Council on Aging, Transplant Recipients International Organization, Tuberous Sclerosis Alliance, US Pain Foundation, Veterans Health Council, Vietnam Veterans of America, and Vitiligo Support International.

    The state organization signatories include:  AIDS Delaware, Asthma and Allergy Foundation of America – New England Chapter, Colorado Gerontological Society, Community Health Charities of Florida, Community Health Charities of Kentucky, Delaware HIV Consortium, Easter Seals – Iowa, Elder Care Advocacy of Florida, Epilepsy Foundation of Kentucky, First Step House, Florida State Hispanic Chamber of Commerce, Hep C Connection, Hepatitis Education and Liver Support (H.E.A.L.S), Kentucky and Southern Indiana Stroke Association, Massachusetts Association for Mental Health, Mental Health America of Indiana, Mental Health Systems, National Alliance on Mental Illness – Alabama, National Alliance on Mental Illness – Indiana, National Alliance on Mental Illness – Oregon, National MS Society: Virginia – West Virginia Chapter, Neurofibromatosis, Inc. Mid-Atlantic, New England Community for Cancer Survivorship, Northeast Kidney Foundation, One in Four Chronic Health, Playing for Life Foundation, Rio Grande Valley Diabetes Association, Rocky Mountain Stroke Center, Rush to Live, Rx Partnership, SAGE Utah, Texas Nurse Practitioners, The New Jersey Association of Mental Health and Addiction Agencies, The Psychiatric Society of Virginia, Utah Pride Center, and Wellness & Education Community Action Health Network.

  • IPO #2The Intellectual Property Owners Association (IPO) will offer a one-hour webinar entitled "Privity and RPI at the PTAB, with Judge Michael Tierney" on June 4, 2015 from 2:00 to 3:00 pm (ET).  Matthew Berkowitz of Kenyon & Kenyon, Eliot Williams of Baker Botts, and Hon. Michael Tierney, Patent Trial and Appeal Board, U.S. Patent & Trademark Office will analyze the statutes and the case law, and discuss strategic considerations regarding privity and post-grant proceedings.

    The registration fee for the webinar is $130 (government and academic rates are available upon request).  Those interested in registering for the webinar can do so here.

  •         By Sherri Oslick

    Gavel About Court Report:  Each week we will report briefly on recently filed biotech and pharma cases.

    Tris Pharma Inc. v. Actavis Laboratories FL Inc. et al.
    1:15-cv-00393; filed May 15, 2015 in the District Court of Delaware

    • Plaintiff:  Tris Pharma Inc.
    • Defendants:  Actavis Laboratories FL Inc.; Andrx Corp.; Actavis Inc.; Actavis Pharma Inc.

    Tris Pharma, Inc. v. Actavis Laboratories FL, Inc. et al.
    2:15-cv-03399; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiff:  Tris Pharma, Inc.
    • Defendants:  Actavis Laboratories FL Inc.; Andrx Corp.; Actavis, Inc.; Actavis Pharma Inc.

    The complaints in these cases are substantially identical.  Infringement of U.S. Patent No. 8,956,649 ("Orally Effective Methylphenidate Extended Release Powder And Aqueous Suspension Product," issued February 17, 2015) following a Paragraph IV certification as part of Actavis' filing of an ANDA to manufacture a generic version of Tris' Quillivant XR® (methylphenidate hydrochloride oral suspension, used to treat attention deficit hyperactivity disorder, distributed by Pfizer).  View the Delaware complaint here.


    Acorda Therapeutics Inc. v. Sun Pharmaceutical Industries Limited et al.
    1:15-cv-00391; filed May 15, 2015 in the District Court of Delaware

    • Plaintiff:  Acorda Therapeutics Inc.
    • Defendants:  Sun Pharmaceutical Industries Ltd.; Sun Pharmaceutical Industries Inc.

    Infringement of U.S. Patent Nos. 8,007,826 ("Sustained Release Aminopyridine Composition," issued August 30, 2011), 8,354,437 ("Method of Using Sustained Release Aminopyridine Compositions," issued January 15, 2013), 8,440,703 (same title, issued May 14, 2013), and 8,663,685 ("Sustained Release Aminopyridine Composition," issued March 4, 2014) following a Paragraph IV certification as part of Sun's filing of an ANDA to manufacture a generic version of Acorda's Ampyra® (dalfampridine extended release, used to improve walking in patients with multiple sclerosis).  View the complaint here.


    Horizon Pharma Ireland Ltd. et al. v. Amneal Pharmaceuticals LLC
    1:15-cv-03367; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs:  Horizon Pharma Ireland Ltd.; HZNP Ltd.; Horizon Pharma USA, Inc.
    • Defendant:  Amneal Pharmaceuticals LLC

    Infringement of U.S. Patent Nos. 8,217,078 ("Treatment of Pain with Topical Diclofenac," issued July 10, 2012), 8,252,838 ("Diclofenac Topical Formulation," issued August 28, 2012), 8,546,450 ("Treatment of Pain with Topical Diclofenac," issued October 1, 2013), 8,563,613 ("Diclofenac Topical Formulation," issued October 22, 2013), 8,618,164 ("Treatment of Pain with Topical Diclofenac," issued December 31, 2013), and 8,871,809 ("Diclofenac Topical Formulation," issued October 28, 2014) following a Paragraph IV certification as part of Amneal's filing of an ANDA to manufacture a generic version of Horizon's Pennsaid® (diclofenac sodium topical solution, used for the treatment of signs and symptoms of osteoarthritis of the knee(s)).  View the complaint here.


    Takeda GmbH et al. v. Torrent Pharma Inc. et al.
    3:15-cv-03375; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs:  Takeda GmbH; AstraZeneca Pharmaceuticals LP; AstraZeneca UK Ltd.
    • Defendants:  Torrent Pharma Inc.; Torrent Pharmaceuticals Ltd.

    Takeda GmbH et al. v. Micro Labs USA, Inc. et al.
    3:15-cv-03376; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs: Takeda GmbH; AstraZeneca Pharmaceuticals LP; AstraZeneca UK Ltd.
    • Defendants: Micro Labs USA, Inc.; Micro Labs Ltd.

    Takeda GmbH et al. v. Zydus Pharmaceuticals (USA) Inc.
    3:15-cv-03377; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs: Takeda GmbH; AstraZeneca Pharmaceuticals LP; AstraZeneca UK Ltd.
    • Defendant: Zydus Pharmaceuticals (USA) Inc.

    Takeda GmbH et al. v. Strides Pharma, Inc. et al.
    3:15-cv-03378; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs: Takeda GmbH; AstraZeneca Pharmaceuticals LP; AstraZeneca UK Ltd.
    • Defendants: Strides Pharma, Inc.; Strides Pharma, Inc.

    Takeda GmbH et al. v. Apotex Corp. et al.
    3:15-cv-03379; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs: Takeda GmbH; AstraZeneca Pharmaceuticals LP; AstraZeneca UK Ltd.
    • Defendants: Apotex Corp.; Apotex Inc.

    Takeda GmbH et al. v. Citron Pharma LLC et al.
    3:15-cv-03383; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs: Takeda GmbH; AstraZeneca Pharmaceuticals LP; AstraZeneca UK Ltd.
    • Defendants: Citron Pharma LLC; MSN Laboratories Private Ltd.

    Takeda GmbH et al. v. Hetero USA Inc. et al.
    3:15-cv-03385; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs: Takeda GmbH; AstraZeneca Pharmaceuticals LP; AstraZeneca UK Ltd.
    • Defendants: Hetero USA Inc.; Hetero Labs Ltd. Unit-III; Hetero Labs Ltd.

    The complaints in these cases are substantially identical.  Infringement of U.S. Patent Nos. 8,536,206 ("Process for the Preparation of Roflumilast," issued September 17, 2013), 8,604,064 (same title, issued December 10, 2013), and 8,618,142 (same title, issued December 31, 2013) following a Paragraph IV certification as part of defendants' filing of an ANDA to manufacture a generic version of AstraZeneca's Daliresp® (roflumilast, used to reduce the risk of COPD exacerbation in patients with severe COPD associated with chronic bronchitis and a history of exacerbation).  View the Torrent complaint here.


    Takeda GmbH et al. v. Prinston Pharmaceutical Inc.
    3:15-cv-03380; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs:  Takeda GmbH; AstraZeneca Pharmaceuticals LP; AstraZeneca UK Ltd.
    • Defendant:  Prinston Pharmaceutical Inc.

    Takeda GmbH et al. v. Breckenridge Pharmaceutical Inc.
    3:15-cv-03382; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs: Takeda GmbH; AstraZeneca Pharmaceuticals LP; AstraZeneca UK Ltd.
    • Defendant: Breckenridge Pharmaceutical Inc.

    Takeda GmbH et al. v. Mylan Pharmaceuticals Inc.
    3:15-cv-03384; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs: Takeda GmbH; AstraZeneca Pharmaceuticals LP; AstraZeneca UK Ltd.
    • Defendant: Mylan Pharmaceuticals Inc.

    The complaints in these cases are substantially identical.  Infringement of U.S. Patent Nos. 5,712,298 ("Fluoroalkoxy-Substituted Benzamides And Their Use As Cyclic Nucleotide Phosphodiestrerase Inhibitors," issued January 27, 1998), 8,536,206 ("Process for the Preparation of Roflumilast," issued September 17, 2013), 8,604,064 (same title, issued December 10, 2013), and 8,618,142 (same title, issued December 31, 2013) following a Paragraph IV certification as part of defendants' filing of an ANDA to manufacture a generic version of AstraZeneca's Daliresp® (roflumilast, used to reduce the risk of COPD exacerbation in patients with severe COPD associated with chronic bronchitis and a history of exacerbation).  View the Prinston complaint here.

    Sanofi-Aventis U.S. LLC et al. v. Onco Therapies Ltd.
    3:15-cv-03392; filed May 15, 2015 in the District Court of New Jersey

    • Plaintiffs:  Sanofi-Aventis U.S. LLC; Aventis Pharma S.A.; Sanofi
    • Defendant:  Onco Therapies Ltd.

    Infringement of U.S. Patent No. 8,927,592 ("Antitumoral Use Of Cabazitaxel," issued January 6, 2015) following a Paragraph IV certification as part of Onco's filing of an ANDA to manufacture a generic version of Sanofi's Jevtana® (cabazitaxel injection, used in combination with prednisone for the treatment of patients with hormonerefractory metastatic prostate cancer previously treated with a docetaxel-containing treatment regimen).  View the complaint here.


    Vanda Pharmaceuticals Inc. v. Inventia Healthcare Pvt. Ltd.
    3:15-cv-00059; filed May 15, 2015 in the Northern District of West Virginia

    Infringement of U.S. Patent No. 8,586,610 ("Methods for the Administration of Iloperidone," issued November 19, 2013) following a Paragraph IV certification as part of  Inventia's filing of an ANDA to manufacture a generic version of Vanda's Fanapt® (iloperidone, used for the acute treatment of adults with schizophrenia).  View the complaint here.


    Merz Pharmaceuticals, LLC et al. v. Taro Pharmaceuticals U.S.A., Inc. et al.
    1:15-cv-03720; filed May 14, 2015 in the Southern District of New York

    • Plaintiffs:  Merz Pharmaceuticals, LLC; Merz North America, Inc.
    • Defendants:  Taro Pharmaceuticals U.S.A., Inc.; Taro Pharmaceutical Industries Ltd.

    Infringement of U.S. Patent No. 8,778,365 ("Topical Compositions and Methods for Making and Using Same," issued July 15, 2014) following a Paragraph IV certification as part of Taro's filing of an ANDA to manufacture a generic version of Merz's Naftin® (naftifine hydrochloride gel 2%, used for the treatment of interdigital tinea pedis caused by certain fungi).  View the complaint here.

  • CalendarJune 1-2, 2015 – Biosimilars*** (American Conference Institute) – New York, NY

    June 4, 2015 – "Navigating Section 112(a) Enablement and Written Description — Withstanding 112(a) Rejections and Attacks on Patent Validity and Patentability" (Strafford) – 1:00 to 2:30 pm (EDT)

    June 9, 2015 – "Claim Construction Caselaw Update: Mechanical & Chemical Arts" (American Intellectual Property Law Association) – 12:30 to 2:00 pm (Eastern)

    June 9, 2015 – Patent Quality Chat webinar series — Clarity of the Record – noon to 1:00 pm (EDT)

    June 9-10, 2015 – Due Diligence Summit for Life Sciences*** (ExL Events) – Boston, MA

    June 10, 2015 – "Past, Present, and Future of Post-Grant Proceedings at the PTAB" (American Intellectual Property Law Association) – 12:30 – 2:00 pm (Eastern)

    June 15-17, 2015 – Fundamentals of Patent Prosecution 2015: A Boot Camp for Claim Drafting & Amendment Writing (Practising Law Institute) – New York, NY

    June 15-18, 2015 – BIO International Convention (Biotechnology Industry Organization) – Philadelphia, PA

    June 18, 2015 – "Patent Infringement Letters: Considerations and Best Practices for Senders and Recipients — Patent Holder Strategies for Leveraging Letters and Avoiding DJ Actions; Defense and Response Strategies for Alleged Infringers" (Strafford) – 1:00 to 2:30 pm (EDT)

    June 23, 2015 – "Practical Patent Prosecution Strategies and Considerations" (American Bar Association (ABA) Center for Professional Development, Section of Intellectual Property Law, and Young Lawyers Division) – 1:00 to 2:30 pm (ET)

    July 8-10, 2015 – Fundamentals of Patent Prosecution 2015: A Boot Camp for Claim Drafting & Amendment Writing (Practising Law Institute) – San Francisco, CA

    July 14, 2015 – Patent Quality Chat webinar series – Face-to-face Examiner Interviews: A Demonstration of USPTO Tools – noon to 1:00 pm (EDT)

    August 11, 2015 – Patent Quality Chat webinar series – Measuring Patent Quality – noon to 1:00 pm (EDT)

    ***Patent Docs is a media partner of this conference or CLE

  • USPTO SealThe U.S. Patent and Trademark Office will be offering a Patent Quality Chat webinar series, with webinars to be held monthly for the remainder of the year.  The schedule of the webinar series for the next three months is as follows:

    June 9 — Clarity of the Record — to be presented by Deputy Commissioner for Patent Examination Policy Drew Hirshfeld, who will discuss various patent examiner training modules covering the topics of 35 U.S.C. § 112 and functional claiming, and review of the Clarity of Record Quality Initiative — noon to 1:00 pm (EDT)

    July 14 — Face-to-face Examiner Interviews: A Demonstration of USPTO Tools — to be presented by Director of Technology Center 2400 Timothy Callahan

    August 11 — Measuring Patent Quality — to be presented by Deputy Commissioner for Patent Quality Valencia Martin Wallace

    Future webinars will be held on September 8, October 13, and November 10, and are expected to address topics such as Office of Patent Quality Review (OPQA) Processes, Compact Prosecution, and Special Programs for Patent Prosecution.

    Additional information regarding the Patent Quality Chat webinar series can be found on the USPTO's Patent Quality Chat webpage.

  • AIPLA #1The American Intellectual Property Law Association (AIPLA) will be offering a webinar on "Past, Present, and Future of Post-Grant Proceedings at the PTAB" on June 10, 2015 from 12:30 – 2:00 pm (Eastern).  Hon. Rama Elluru, Patent Trial & Appeals Board, U.S. Patent & Trademark Office; Naveen Moodi of Paul Hastings; and Jim Sherwood of Google will focus on effective strategies, lessons learned, and a synopsis of some of the decisions issued by the PTAB, as well as discuss the latest developments announced by the USPTO, including the upcoming rule changes aimed at improving trial practice before the PTAB.

    The registration fee for the program is $145 (AIPLA member rate) or $175 (non-member rate).  Those interested in registering for the program, can do so here.

  • Strafford #1Strafford will be offering a webinar/teleconference entitled "Patent Infringement Letters: Considerations and Best Practices for Senders and Recipients — Patent Holder Strategies for Leveraging Letters and Avoiding DJ Actions; Defense and Response Strategies for Alleged Infringers" on June 18, 2015 from 1:00 to 2:30 pm (EDT).  Kirupa Pushparaj, Head IP Counsel, Square and Bobbie Wilson of Perkins Coie will provide guidance for patent counsel on the use of patent infringement letters, discuss considerations and strategies for both the sender and recipient, and offer best practices for determining whether and when to send a letter as well as responding to an infringement letter.  The webinar will review the following questions:

    • What factors should patent owners consider before sending an infringement letter?
    • How can the language of the letter minimize the likelihood of a DJ action?
    • What can be learned from the letter that will help evaluate the risk and create an appropriate response?
    • What steps should counsel take to minimize the risk of actual damages and/or injunctive relief?

    The registration fee for the webinar is $297 ($362 for registration and CLE processing).  Those interested in registering for the webinar, can do so here.

  • CoverIn 2009, the first edition of Dr. David Koepsell's book "Who Owns You: The Corporate Gold Rush to Patent Your Genes" was published.  With the second edition of his text about to be published, Dr. Koepsell allowed Patent Docs to post the Preface for his book as well as the Foreword, which was authored by Dr. Kevin Noonan.

    First, Dr. Noonan's Foreword:

    David and I have had a friendly disagreement about the subject (and even the title) of this book ever since it was first published, and I am happy that he asked me to write this Foreword to the Second Edition. The issues David raises in the pages to follow continue to be relevant to a discussion of philosophy and patent law, with events that have occurred since the first edition justifying (indeed, demanding) this update.

    Without getting into the deep waters of philosophy (David's métier, not mine), as we have discussed the issues in the book David contends that he takes a deontological approach and has characterized mine as a utilitarian one. Accepting that dichotomy I understand the difference to be that David is operating from "first principles" about the rules society should impose on human activity and specifically on what the law permits individuals to "own" with regard to genes and more broadly naturally occurring substances. I disagree with that approach on several levels, perhaps the most germane of which is that if we posit rules we need to impose a rule‐giver and the potential for improvident rules (if not outright abuse of the privilege) makes me wary; in some ways I subscribe to Lani Gruinier's suspicions about the effects of the "tyranny of the majority" in this regard.

    Part of that tyranny is also the tyranny of unintended or intentional ignorance. The issue here—"gene" patenting—is one at the intersection of molecular biology and modern genetics, on the one hand, and patent law (an area notorious for its arcane minutiae). I used to joke with my colleagues about the effect of trying to explain my position to a lay audience of any type and how I distrusted those who advocated that all that was needed was to "educate" the public, the press, and policy makers. The problem for proponents of gene patenting has been that opponents have gotten the better part of the debate, not by making a reasoned philosophical argument such as the one you will find in these pages but instead by making an emotional plea to individuals afraid that corporate America was trying to "steal" their genes, which has proven very effective. This process began with an Op‐Ed piece in The New York Times by Michael Crichton, wherein he posited a scenario where a patent holder knocks on your door one day and demands payment for the use of "her" patented gene that resides in your liver. (Not coincidentally, Dr. Crichton had just published a novel on the perils of genetic engineering and corporate ownership of human genes, complete with an essay as an addendum containing his arguments against the practice. And it should be noted that a constant theme in his novels was a mistrust of technology and particularly the ability of humans to use it without dire consequences). Academics like my friend Lori Andrews at Illinois Institute of Technology (IIT)‐Kent School of Law joined in this theme, which was picked up eventually by most popular press outlets and became, regrettably, the canonical narrative on gene patenting, culminating in the American Civil Liberties Union's (ACLU's) "Keep Your Hands Off My Genes" slogan and logo. I hope that this essay provides some antidote to this argument, which is founded on the literal fear that someone can "own" you. (David assures me that his title is allegorical and that he acknowledges that in all countries that have banned slavery no one can "own" another human being or a part of them. See the 13th Amendment. I assure you that the ACLU has no such illusions about the intended consequences of their ownership rhetoric).

    My philosophy is that the principle we should follow is the greatest good to the greatest number, while not infringing on individual rights without (at least) compensation. As regards patent law, this principle is translated into rules that foster the broadest disclosure of technology possible in return for exclusive patent rights and robust‐enough enforcement rights for patents that they provide sufficient certainty to promote investment so his technology is commercialized to benefit the greatest number. In my role as a biotechnology patent attorney, I have seen how risky investment in biotechnology can be (indeed, the evidence is overwhelming that for all its successes, biotech's history is littered with the remains of companies that have failed) and how important it is to have a sound patent system of predictable rights go support that investment.

    The evidence in support of "gene patenting" and more broadly natural products patenting is strong: the biotechnology industry has promoted innovation in the form of new drugs and diagnostics assays for a generation. This may continue despite the recent restrictions on patent protection for genes and natural products (including patent‐restricting decisions in Mayo Collaborative Labs. v. Prometheus Labs and Assoc. of Molecular Pathologists v. Myriad Genetics and recently promulgated U.S. Patent and Trademark Office Guidances on Subject Matter Eligibility). In fact, these very restrictions suggest that we would benefit from an appreciation of the facts surrounding the past thirty years of gene patenting to understand why these restrictions are not only wrongheaded but dangerous for future innovation.

    These include debunking several myths. First, the concern that patents on specific human genes in some way inhibit innovation in basic genetic research is entirely unfounded. One reason is that the genetic information itself is not patented; while isolated DNA is encompassed by gene patent claims and described in those claims by its sequence, the sequence itself is unpatented information that can be used freely for any purpose (e.g., interrogating genetic databases from other species or even human DNA, inter alia, to find related genes in those databases). Indeed, the innovative benefits to gene patenting are evident in at least two ways. First, scientific publication databases reveal that there have been more than 11 000 scientific papers published on the BRCA1 and BRCA2 genes since the patents claiming them were granted. This outcome refutes the prediction that gene patenting would create a "tragedy of the anticommons" where scientific research would be stifled by patenting (see, Heller & Eisenberg, 1998, "Can Patents Deter Innovation? The Anticommons in Biomedical Research," Science 280: 698–701)), a conclusion supported by the overwhelming majority of studies done on this subject (see, for example, Walsh et al. 2003, "Science and the Law: Working Through the Patent Problem," Science 299: 1020; Walsh et al. 2005, "Science and Law: View from the Bench: Patents and Material Transfers," Science 309: 2002–03).

    In addition, policies that the U.S. Patent and Trademark Office adopted in 2001 required applicants to disclose a practical utility for the product of a gene claimed in a patent. These requirements were imposed at a time when the standards for scientific journal publication were much less stringent, so that identifying a gene by the extent of genetic similarity between the "new" gene and previously discovered genes was enough for publication. But it was not enough for a patent, which has been held to be "not a hunting license. It is not a reward for the search, but compensation for its successful conclusion." Thus, genes encoding proteins having no known use or biological activity cannot be patented, because to do so would allow the gene to be within the exclusive patent right undeservedly; the public would not have received its quid pro quo of a useful invention in return for patent exclusivity. All such genes not having patent protection are in the public domain (from which they cannot be retrieved for future patenting), and for humans these constitute the vast majority of genes identified, inter alia, by the Human Genome Project.

    The role for patenting genes, and the related genetic diagnostic methods using this genetic information, in the successes of the biotechnology era are evident: The industry has produced hundreds of biologic drugs (at an ever-increasing rate) that have provided effective treatment for a variety of illnesses, and decoding the human genome has enabled researchers to identify genes, like the BRCA1 and BRCA2 genes, that can be used in predictive genetic diagnostic tests. Even the much‐maligned Myriad Genetics has played a positive role in the development and prevalence of genetic diagnostic testing. It must be remembered that in 1997 (when Myriad's BRCA gene patents were granted), genetic testing was in its infancy, and companies like Myriad were under the burden of convincing payers that the tests did the one thing that all insurers, public or private, require of such tests: save them money in the long run, by identifying patients with a high probability of becoming ill and costing the insurers much more for treatment than the costs of prophylaxis. Moreover, Myriad and like companies needed to convince doctors that the testing was worthwhile and to establish a network of genetic counselors who could explain to healthy women that they were at much greater risk of developing breast or ovarian cancer than normal, under circumstances that resulted in empowerment from the information and not abject fear. And in 1997, genetic sequencing technology was not as developed as it is now, and the mechanisms and techniques needed to minimize or eliminate the occurrence of false positives or negatives had not been conclusively established. All these burdens were ones borne by Myriad, and these activities produced the world we have today.

    It is possible, as some have argued, that BRCA tests may have been developed independently by individual researchers in the absence of patent protection. However, it is almost certain that such researchers would have been located in medical centers in urban environments. Under these circumstances, women living in or near cities such as New York, Boston, Philadelphia, Cleveland, Chicago, Houston, Denver, Los Angeles, San Francisco, Portland, and Seattle might have had access to these tests. But what of women in Appalachia, or the Four Corners region in the Southwest, or more generally in rural or other relatively remote locations? Would Yale University, for example, have had any incentive to provide access to the BRCA tests to these women in these far‐off locations? Or to provide genetic counseling where the women lived? Or to lobby state Medicare administrators or private insurance commissioners to cover the test? I think that unlikely. Myriad Genetics did all of this, as well as perform outreach to the obstetrics and gynecology doctors throughout the United States so that these primary care doctors were aware of the tests. Myriad did not ace from altruism but as part of their business plan in order to expand the number of patients who received the test and thus maximize the company's revenue. While it may be counterintuitive to some, these circumstances may have been the most effective way not only to promulgate the BRCA tests but also to facilitate acceptance of genetic diagnostic testing for other diseases, showing that in this instance Adam Smith rather than Karl Marx provided the most practical solution to the problem of establishing genetic diagnostic testing as a recognized component of a physician's diagnostic armamentarium.

    Fortunately, the significance and impact of recent US court decisions (specifically, the Myriad case) is much less than it would have been ten to thirty years ago. Due to patent term rules, most patents (and applications) on isolated DNA filed in the heyday of the Human Genome Project (approximately 1998–2001) are near the end of their actual or potential term; indeed, a recent study shows that the number of granted patents having at least one claim reciting an isolate DNA comprising a gene peaked in 1999 and has been dropping since 2005 (Graff et al. 2013, "Not quite a myriad of gene patents," Nature Biotechnology 31: 404–410)). These recent decisions in the United States have not harmed the biotechnology industry because they retained patent eligibility for species of DNA that show evidence of the "hand of man" and do not occur in nature. These include enzymatically produced copies (cDNA) of cellular messenger RNA and should also encompass the tools of the recombinant geneticist (e.g., including recombinant vectors for cloning and expressing genes in heterologous cells). Most importantly, the U.S. Supreme Court did not overturn its Diamond v. Chakrabarty decision wherein recombinant cells were determined to be patent eligible.

    Thus, in many ways the question of patent eligibility for human genes is a philosophical one. However, that does not mean that how we think about patent eligibility for isolated DNA is irrelevant to important questions regarding the usefulness of patents for promoting progress and innovation. Indeed, the most pernicious effects of the current trend in the zeitgeist against patenting has been not that genes have become harder to patent but rather that the ability to patent other natural products has been called into question. It is the extension of these recent decisions on isolated DNA to all natural products that poses the greatest threat to innovation. This threat can be illustrated by a thought experiment: for which of these substances should patent protection be withheld?

    • A petrochemical with excellent lubrication qualities isolated in pure form and used as improved motor oil.
    • Vitamin B12 isolated from beef muscle, formulated into a medicament used to cure anemia in children.
    • The drug penicillin, isolated from a mixture of naturally produced chemicals made by a mold and formulated as a drug to cure syphilis (which is otherwise eventually fatal).
    • Human urinary erythropoietin, formulated to treat anemia in kidney dialysis patients.
    • The gene responsible for Gaucher's disease, a lipid storage disease, wherein the gene is used to make the missing protein that is administered to children and that cures an otherwise incurable and fatal disease.

    The current answer is that none of them are patent‐eligible per se (although there may be ways to claim them that could pass eligibility muster; that remains to be seen). Judge Sweet, the U.S. District Court judge who first ruled that isolated DNA was not patent‐eligible, did so using language carefully crafted to avoid encompassing all natural products into his decision. Specifically, Judge Sweet distinguished isolated DNA as the "physical embodiments of genetic information," a property limited to DNA and not shared by other natural products. (While an enzymatic protein could be characterized as the physical embodiment of catalysis of a particular chemical reaction, that formulation has much less appeal and inherent rationale than Judge Sweet's regarding DNA.) Instead of this careful formulation, the broader language employed by the Supreme Court, as well as the broader rationale the Court used in finding genomic DNA unpatentable, has made it easier to employ that fractured logic to render patent‐ineligible naturally occurring molecules other than DNA.

    I would be remiss not to mention the rather comical (but persistent) efforts of former Acting Solicitor General Neal Katyal, who included in the U.S. Government's amicus brief to the Federal Circuit the distinction engine he called a "magic microscope," embodying the concept that if you are able to visualize a natural product (like a genomic DNA molecule) using this mythical microscope then the natural product would not be patent‐eligible, whereas if you could not (e.g., a cDNA molecule) then the natural product could be eligible for patenting. Fortunately, the disdain with which the Federal Circuit greeted this fantasy (particularly from Judge Moore) prompted its quick abandonment as are argumentative distinction as the case moved forward. Nonetheless, both the courts and the U.S. Patent and Trademark Office have adopted this standard de facto even as it becomes the theory that dare not speak its name in legal circles. The philosophical point here is that these substances, and natural products generally, have been deemed patent‐ineligible categorically, which while consistent with (and perhaps even mandated by) the deontological approach imposes a distinction that cannot be flexibly applied to the individual circumstances. Without such flexibility, the law is constrained to use one criterion, that the substance can be found in some form in nature, to decide patent eligibility, instead of making the determination of whether permitting patenting exclusivity satisfies the criteria that the invention "promotes progress" as the U.S. Constitution requires and has a benefit to the public that outweighs any categorical disabilities.

    The potential that using this standard for determining patent eligibility will result in negative practical outcomes that no one in this debate desires is illustrated by a 2012 Report from the National Institutes of Health, Natural Product Branch, regarding statistics relating to the number of FDA approvals (a total of 1355) for new drugs falling into the following categories:

    Drug type/source                                  Number
    Biological (B)                                           203
    Natural product (N)                                   55
    Natural product (botanical) (NB)              149
    Derived from a natural product (ND)        298
    Totally synthetic (S)                                393
    Total synthesis/natural product (S*)         176
    Vaccine (S)                                               81

    These statistics illustrate the consequences of a general ban on patenting naturally derived products; of the 1355 drugs approved between 1981 and 2010,

    • Fifty percent of all small‐molecule drugs approved between 2000 and 2010 are natural products.
    • About 75% of antibacterial drugs are natural products or derived from natural products.
    • Almost 80% of small‐molecule anticancer drugs were natural products or derivatives.

    In addition, only 15% of drugs approved during this time frame were socalled biologic drugs, which are also putatively patent‐ineligible. This, the problems caused by the current interpretation of the law excluding natural product drugs from patent eligibility will be exacerbated in view of reports from every study showing that the percentage of drugs that are biologic drugs has been growing and will be the predominant type of drug developed in the 2011–2030 time period.

    Another "thought experiment" illustrating the practical illogic (David can provide his philosophical justifications in the body of the text) of broad natural products patent ineligibility is as follows. Suppose a researcher finds a molecule produced by the human body that causes blood pressure homeostasis, that is, lack of this molecule causes or contributes to the disease of high blood pressure. The logical consequence of the current natural product patent ineligibility standards would be that the closer a drug molecule is to the structure of the molecule as it occurs in the body the less patent‐eligible it would be. Practically speaking, there would be no incentive to modify the molecule to confer patent eligibility on the altered molecule because of the unpredictability of such changes on the molecule, such as its biological activity, half‐life, stability, antigenicity or other biological properties. And there would be even less incentive to develop the molecule as a drug because without patent protection the available regulatory exclusivities would not pass economic muster to sufficiently defray the large development costs (some of which prevent drugs neither safe nor efficacious from being sold and thus provide their own justification).

    There is one further pernicious outcome that can be predicted to arise from a ban on natural products patents (including patents on isolated DNA and genetic diagnostic methods based on such isolated DNA). Natural products are almost by nature complex, and an "active principle" isolated from nature is beneficial because it is isolated; Kodak ran an advertisement in the journal Nature in the 1970s showing a scientist in a lab coat holding a 250‐ml flask and standing next to several bushels of green peppers, wherein the content of the flask was the purified "essence of green pepper" equivalent to that substance contained in all the peppers in all the bushels and bushels that the scientist was standing beside. But this very complexity makes it possible for the "active principle" (either as a chemical compound or as a diagnostic genetic sequence) to be "hidden in plain sight" in ways that may be particularly refractory to reverse engineering.

    For example, even using somewhat dated "gene chip" technology, genetically diagnostic markers could be encrypted onto a microchip comprising 10000 unique sequences, wherein a computer‐readable bar code would be used to identify the positions of diagnostically relevant sequences on the chip. This form of encryption, which can be random and confounded by the presence of positive and negative control sequences as well as variable numbers and lengths of sequences specific for the gene (or more likely genes) of interest, would be very difficult if not impossible to reverse‐engineer. Even if reverse engineering could be done, it would be difficult and expensive to undertake and thus make it more likely that the innovator would be able to avoid competition (i.e., it would provide unlimited exclusivity to its purveyor not constrained by patent term or burdened by the requirement that the invention be disclosed with the specificity required by the Patent Act). While the possibility that this type of chip could be made exists with or without patents, the absence of patent protection could tip the scales in favor of the extra effort needed and risk entailed in nondisclosure, if the reward of extended "monopoly" is great enough. But particularly for genetic diagnostic inventions the benefits of developing a proprietary database, for which a corporation could provide the economic and marketing wherewithal to expeditiously produce, would result in a "worst of both worlds" outcome: unlimited exclusivity based on undisclosed proprietary information that not only is difficult to replicate but whose existence would inhibit competition. After all, if a company had such a database, its outcome for any particular patient's test would be more accurate (and might identify disease risk–associated genetic variants not available elsewhere) and this would provide little incentive for a physician to choose an alternative provider to perform the test (and even more malevolently, could create a system where the wealthy could afford the best diagnostic testing while the less affluent would be restricted to the more limited assays offered by companies without access to the "innovator's" proprietary database information).

    The other aspect of foreclosing patents for certain substances or technology areas categorically is that it upsets a carefully crafted dynamic that has worked extremely well during the biotech era, between "true" innovators (typically university professors or small start‐up biotechnology companies) and more established companies capable of commercializing innovation. Pundits who worry that permitting patenting will harm innovation miss an important point: innovation will happen, particularly in universities, research institutes, and like places, because human nature demands it and regardless of whether patent protection is available. The intelligent ape in us wants to know, and the disparity between how university professors and patent lawyers are paid should establish how powerful the need to know can be. Patenting, and the impetus for patenting provided, for example, by the Bayh–Dole Act in the United States, prevents the fruits of these inventive efforts from mere predation by commercial concerns. The benefits that can be had from a system where private commercialization is encouraged are tempered by the types of corporate shenanigans that raise cogent criticisms of the system. But perhaps it is mere human nature that people (in the corporate as well as individual sense) will want to expropriate technology rather than pay for it, and patenting prohibits (or at least retards) this outcome (if not these tendencies). Thus, paradoxically, limiting patent rights does not free innovation but rather makes it more likely to be kept captive by the entities capable of using such innovation to make a commercial product, that is, not from the power of building a better mousetrap but by being able to outcompete smaller innovators merely by their greater economic prowess and resources. Conversely, patents provide a way for the innovators to protect their innovations and compel corporations to license their inventions, producing revenue that can be used to fund future research endeavors. This useful cycle has resulted in the successes of the biotechnology era and is something that we abandon at our peril.

    Thus, in my view patents are a useful tool for achieving these societally beneficial goals, promoting innovation and commercialization, and protecting and supporting individuals who use the patent system to protect the products of their labors from being expropriated by others. David provides a cogent and honest counterpoint to these thoughts. Enjoy reading them.

    Kevin E. Noonan
    Chicago, Illinois 2014

    And now Dr. Koepsell's Preface:

    A lot has happened in nearly every respect since I first decided to try to delve into philosophical issues of gene patenting nearly a decade ago. I have learned much, the world has changed, and I have changed. I would very much like to think I have played a role in that change, though chances are things would have changed in almost exactly the same way without my small contribution. When the first edition came out, patenting genes was still a regular part of biotech, and only months after the first edition appeared did a surprising and now‐landmark lawsuit alter that significantly. Little did I realize the nature of the forces that would be involved in what I had originally assumed was no more than an academic exercise, but which became a matter of weighty and heated public debate and finally judicial action.

    I first became interested in the subject of gene patents when I began reading up on the topic my future wife was researching: pharmacogenomics. To grasp what she did, I first needed to study the science, and in so doing, I also studied the history of that science. Along the way I read about the Human Genome Project and learned about the practice of gene patenting that it spawned. Having had some experience and interest in general issues of the philosophy of intellectual property (see my 1997 Ph.D. thesis turned 2000 book, The Ontology of Cyberspace), my ears perked up when I first read about the notion of patenting genes. So I dived into the research and thinking, in my ordinary style of philosophical work. Although I sometimes teach ethics, my primary field is ontology, and it is from an ontological approach that I start with everything in philosophy. Thus I began to try to get a grip on the nature of the existence of the underlying objects, some of which are "brute facts" (molecules exist, with or without social institutions or intentionality), and some of which are social objects (like laws, rights, and other parts of "social reality," existing only because of collective intentionality). The book was an attempt to lay all this out and to connect it together into a theory that is somehow connected to notions of "justice," which I argued bridges the worlds of brute facts and social objects.

    The conclusions I reached were, I thought, pretty neat. Specifically, I worked out an ontology of "the commons" that I had never heard expressed before, and one that connected nicely with the objects involved to show why artifacts and nature ought to be treated differently, and how to decide what constitutes an artifact and what constitutes nature, and a defense of the viewpoint that unmodified genes were clearly not artifacts. It seemed all the more relevant and interesting, even perhaps somewhat important in light of the then ongoing practice of gene patenting. I was much too focused on the ontological arguments and their seeming relevance to real‐world practices than I was to the scientific and legal terminology with which I was engaging, and this was an error. When the book was released, minor errors I made in using technical terminology from both the science and the law were latched onto by a couple critical reviewers from the Intellectual Property law and teaching worlds and urged as a basis to ignore my substantive arguments. They were right to call out the errors, and I have attempted to correct them in this edition. Regardless, the underlying arguments I had set forth would become, shortly, echoed nearly precisely in the lawsuit that the American Civil Liberties Union (ACLU) spearheaded against Myriad Corp. over the BRCA1&2 gene patents.

    For a brief period of time, partly due to lucky timing, I was thrust headlong into the public debates about gene patenting, with the Myriad case leading the headlines. Given numerous opportunities to engage publicly with the issues and ideas I had previously assumed were only academic musings unlikely to alter public policy, and given feedback and counterarguments in those same venues, the general arguments could be more finely honed. This edition attempts to coalesce them.

    Perhaps more importantly, in the intervening years since I began my musings about the nature of genes, artifacts, nature, and patents, I came to learn the very personal impact that gene patents have on people's lives. Because the ACLU chose to sue over the patents on BRCA1&2 genes, there was a ready‐made, large, and passionate community (mostly women) whose heredity put them at risk of breast and ovarian cancers but who were basically forced into paying monopolistic prices for the only test available for the gene, which was patented by Myriad Corp. Breast cancer and the threat of inherited tendencies for breast cancer are real. They are not legal sophistry, they are not philosophical musing. They kill people or alter their lives irrevocably.

    I began researching and considering the effects of gene patents believing they were potentially a threat to the conduct of science, whose foundational objects I argued were part of a commons‐by‐necessity, but I realized after my book came out that real lives were being harmed by patents on genes. The Myriad case brought together the theoretical with the actual for me, and the dynamics of both the case and the loud and sometimes angry public debate raised my awareness not only about this particular subject but also the power and responsibility of academic research in the sphere of public policy. Suddenly, ideas seemed more important, had relevance outside the academy, and could perhaps make a difference in peoples' lives. I began to interact with the activists who were fighting to liberate genes, to stop companies like Myriad in the courts, and engage not just in the philosophical arguments but in those fights. I joined with authors of amicus (friend of the court) briefs, interviewed and interacted with BRCA1&2 mutation‐positive women who were actively pursuing an end to a practice that I had only previously considered to be an interesting metaphysical conundrum. I also debated Intellectual Property (IP) attorneys and others, primarily with backgrounds in biotech industries, and learning better the nature of their arguments. I came to understand that most of them, including Kevin Noonan who once called me a "liar" on his blog, but who has now drafted the foreword to this edition, that they too generally have the best intentions. Many, like Dr. Noonan, truly expect that without gene patents as they existed until recently, the sort of innovation we need in biomedical technologies would not occur as it should.

    Throughout the course of the litigation in Myriad, I remained engaged, continued to speak, to hone my arguments, adding to my list of criteria for something to be a creation (artifact) capable of patent "design" (as well as intention and being man‐made) and finally rejoicing when the decision of the Supreme Court came out as close to what I believed and argued was right as possible. I had seen an academic idea mature and bloom into public policy, real law, enforceable justice. While I realistically believe that the first edition of this book had only a very minor role in what finally happened, I am proud to have played some part, to have foreseen the issues, to argue them honestly from what I think is a rational and logical standpoint, and see that the world can be changed by ideas.

    There remain issues to discuss, and not everything about gene patents has been resolved by Myriad. Some still argue that cDNA ought not to be patent‐eligible (in fact I still think it should be under the criteria I have set forth, though there are also arguments to be made that it is not, somehow, "designed" by man). Moreover, we should expect patent attorneys to do their creative best to continue to pursue patents on as much of the genome as they can within the constraints of Myriad. Finally, Myriad Corp. has not given up. They are still suing potential competitors under theories of infringement of parts of their patents that might have survived the ACLU's case against them. We shall see how they are eventually resolved and what the future holds for companies like theirs who profited mightily from gene patents for decades. I describe as much of this recent legal history as possible in this edition.

    This book is meant to be a definitive version, sewing up the past five years since the first edition emerged, and so much changed in the world, summarizing that recent history and refining the arguments I originally made, correcting errors, and describing where we are, where we yet may be, and why gene patents as they once were ought never to be again.

    David Koepsell
    August 14, 2014
    Mexico City, Mexico

  • By Donald Zuhn

    Rare Genomics InstituteEarlier this month, Rare Genomics Institute, an international non-profit that makes cutting edge research technologies of genome sequencing, physicians and scientists around the world accessible to rare disease patients, announced the Amplify Hope Initiative, a new study aimed at determining how crowdfunding can promote scientific research to help rare disease patients.  Dr. Jimmy Lin, President of the Rare Genomics Institute, stated that he was "excited to see how crowdfunding will not only help raise much needed funds to uncover the cause of their child's illness, but also how it can educate an entire community about this latest revolution in medicine."

    According to an RGI press release on the initiative, the organization will assist patients in implementing different crowdfunding strategies and methods, and track the overall reach and scientific impact of such strategies and methods.  Participants and donors of these crowdfunding efforts will be asked to complete surveys to enable RGI to create additional resources, support, and education tailored to rare disease patients and caregivers.  The project, which aims to measure the effectiveness of different crowdfunding strategies, as well as the resulting scientific impact and community engagement in such strategies, is being supported by a grant from the Templeton Foundation.  RGI noted that scientific partners on the project include Ambry Genetics and Baylor Miraca Genetics Laboratories, and that crowdfunding partners include CrowdRise, Indiegogo Life, and YouCaring.

    Additional information regarding the initiative can be found here.

  • By Kevin E. Noonan

    Supreme Court Building #2The Supreme Court handed down its decision in Commil USA, LLC v. Cisco Systems, Inc. today and in doing so reprised several themes that have emerged over the past decade of the Court's activist approach to patent law.  The Court reversed the Federal Circuit (albeit technically that court's decision was vacated) and in the process chastised the Federal Circuit for misinterpreting both patent law and the Court's decision in Global-Tech Appliances, Inc. v. SEB S.A. (2014).  The Court also reiterated its belief that patent law is replete with dichotomies (here, between infringement and invalidity), consistent with its "Goldilocks" views regarding the effects of too much versus too little patent protection.  And, somewhat bizarrely the Court takes the time to venture into the policy issues surrounding abusive patent litigation seemingly unrelated to the issues before the Court.  (To be fair, the Court "sides" with the patentee in its decision, which runs contrary to the general trend but this may be considered the exception that probes the rule rather than any great epiphany by the Court.)

    To recap, the technology in this case relates to Commil's patents for implementing short-range wireless networks.  "The technical details of Commil's patent are not at issue," according to the Court (which must be a relief — there is something endearingly quaint about how the Court describes the technology:

    So it suffices to say, with much oversimplification, that the patent is for a method of implementing short-range wireless networks.  Suppose an extensive business headquarters or a resort or a college campus wants a single, central wireless system (sometimes called a Wi-Fi network).  In order to cover the large space, the system needs multiple base stations so a user can move around the area and still stay connected.  Commil's patent relates to a method of providing faster and more reliable communications between devices and base stations.

    And the opinion refers to the Federal Circuit opinion for a discussion of the claims.  The case comes to the Court after the Federal Circuit reversed the District Court for ruling that Cisco's evidence that it had a "good faith belief" that Commil's claims were invalid was inadmissible for rebutting liability for inducing infringement.  The  question before the Court, whether a good-faith belief in invalidity is a defense to induced infringement, was taken for consideration after five of the twelve Federal Circuit judges framed that issue in their dissent to the en banc court's decision not to consider the question itself.

    The Court's opinion was written by Justice Kennedy joined by all the Justices except the Chief Justice, who joined Justice Scalia's dissent, and Justice Breyer who did not participate in the decision.  In addition, Justice Thomas joined the majority only with regard to the Court's decision on the question presented (Section II-B) and its foray into abusive patent litigation policy (Part III).  The holding is simple:  "A defendant's belief regarding patent validity is not a defense to an induced infringement claim."  But of course the more interesting aspect of the decision is the Court's reasoning in arriving at its decision.

    From the outset, the Court states that this conclusion is not limited to inducing infringement under 35 U.S.C. § 271(b) but extends to literal infringement under § 271(a) (a strict liability tort) and contributory infringement under § 271(c) (like inducement, a tort that requires knowledge of the existence of the patent).  Before arriving at this question, however, the Court (in Part II-A) revisits its decision in Global Tech, motivated according to the opinion by Commil's argument, supported by the Department of Justice as amicus, that all that is required to satisfy the intent prong of the test for inducement is knowledge of the patent.  In particular, Commil and the government argued that intent does not require that the accused infringer knew she was infringing, and the Court rejects this interpretation of its Global Tech decision.  The opinion cites language in the Global Tech opinion to the effect that "liability for induced infringement can only attach if the defendant knew of the patent and knew as well that 'the induced acts constitute patent infringement.'"  The Court illustrates this with a hypothetical:  under the government's view, "even if the defendant reads the patent's claims differently from the plaintiff, and that reading is reasonable, he would still be liable because he knew the acts might infringe.  Global-Tech requires more.  It requires proof the defendant knew the acts were infringing" (emphasis added).

    Turning to the question before the Court, the opinion asserts that "[t]he question the Court confronts today concerns whether a defendant's belief regarding patent validity is a defense to a claim of induced infringement.  It is not.  The scienter element for induced infringement concerns infringement; that is a different issue than validity."  Moreover, "because infringement and validity are separate issues under the Act, belief regarding validity cannot negate the scienter required under §271(b)."  The opinion cites Cardinal Chemical Co. v. Morton Int'l, Inc.:  "A party seeking a declaratory judgment of invalidity presents a claim independent of the patentee's charge of infringement."  508 U. S. 83, 96 (1993).  Invalidity doesn't make the acts non-infringing; it eliminates any liability for them according to the Court, and when infringement is the issue, the patent's validity is not the question to be confronted, the opinion citing Cardinal Chemical Co.  The Court perceives a dichotomy at play in these questions:  "in Deposit Guaranty Nat. Bank v. Roper, 445 U. S. 326 (1980), the Court explained that an accused infringer 'may prevail either by successfully attacking the validity of the patent or by successfully defending the charge of infringement'" and this choice (for this Court) makes questions of an accused infringer's subjective (albeit "good faith") belief in whether a patent claim is invalid irrelevant to the question of whether she intends to infringe.

    The Court finds evidence of Congress's intent to raise this dichotomy in the structure of the Patent Act:

    [T]he issues of infringement and validity appear in separate parts of the Patent Act.  Part III of the Act deals with "Patents and Protection of Patent Rights," including the right to be free from infringement.  §§251– 329.  Part II, entitled "Patentability of Inventions and Grants of Patents," defines what constitutes a valid patent.  §§100–212.

    And in this regard, the Court also notes that non-infringement and invalidity are "two separate defenses" governed by separate sections of the statute and that they can be asserted separately as further evidence of this statutory dichotomy.

    The Court then makes the strongest patent-affirming statement it has made in any case over the past decade, when the opinion voices concern with the presumption of validity, which is "a 'common core of thought and truth' reflected in this Court's precedents for a century," citing Radio Corp. of America v. Radio Engineering Laboratories, Inc., 293 U. S. 1, 8 (1934).  "[I]f belief in invalidity were a defense to induced infringement," according to the opinion, "the force of that presumption would be lessened to a drastic degree, for a defendant could prevail if he proved he reasonably believed the patent was invalid."  This would be a way to "circumvent the high bar Congress is presumed to have chosen:  the clear and convincing standard," citing Microsoft Corp. v. i4i Ltd. Partnership, (2011).

    In reference to Justice Scalia's arguments in dissent (without ever referencing that there is a dissent), the majority states that it does not dispute Scalia's logic that one cannot infringe an invalid patent, calling the rubric "a simple truth, both as a matter of logic and semantics."  But that isn't the issue as the majority sees it:

    [T]he questions courts must address when interpreting and implementing the statutory framework require a determination of the procedures and sequences that the parties must follow to prove the act of wrongful inducement and any related issues of patent validity.

    The Court then quotes Judge Newman from her dissent:  "[v]alidity and infringement are distinct issues, bearing different burdens, different presumptions, and different evidence."  720 F. 3d, at 1374 (opinion of Newman, J.).

    The opinion also states that the "orderly administration of the patent system" requires that infringement and invalidity be considered separately, and thus the District Court was correct in ruling evidence of Cisco's belief that Commil's claims were invalid was inadmissible.  The jurisprudential point:  "invalidity is not a defense to infringement, it is a defense to liability" and thus "a belief as to invalidity cannot negate the scienter required for induced infringement."

    The Court also considers the availability of other avenues to show invalidity — declaratory judgment actions, citing MedImmune, Inc. v. Genentech, Inc., 549 U. S. 118, 137 (2007), inter partes review under the AIA (§ 316) or ex parte reexamination (§ 302) (which is what Cisco actually did) as alternative ways for an accused infringer to raise challenges to invalidity, the majority agreeing that claims found to be invalid cannot be infringed (versus permitting mere good faith belief to be enough).

    The Court finds an analogy between tortious interference with contract and whether the contract is invalid, which is irrelevant as a defense, or perhaps more aptly, trespass on property without knowledge that the trespasser had no legal right to enter a property not being sufficient to eliminate liability for the trespass.

    Just when an opinion by this Court gives the impression that the Court has decided to cabin its role in patent law within its Constitutional boundaries of interpreting the Patent Act and deciding whether Congress has exceeded the limitations on its exercise of the patent power under Article I, along comes Part III of the opinion to shatter the illusion.  Here, the Court takes on the issue of "patent trolls," citing Justice Kennedy's concurring opinion in eBay Inc. v. MercExchange, L.L.C., 547 U. S. 388, 396 (2006) (which if memory serves was not the question the Court addressed in eBay).  Broaching this issue in this case shows the political nature of the Court's patenting opinions and its penchant for espousing policy. Here, this takes the guise of the castigating practice of pursuing "frivolous" lawsuits that "may assert vague claims of infringement, and may be designed to obtain payments that are based more on the costs of defending litigation than on the merit of the patent claims," citing testimony before Congress by the Federal Trade Commission.  These questions have nothing to do with the question before the Court, which the Court admits:

    No issue of frivolity has been raised by the parties in this case, nor does it arise on the facts presented to this Court.  Nonetheless, it is still necessary and proper to stress that district courts have the authority and responsibility to ensure frivolous cases are dissuaded.  If frivolous cases are filed in federal court, it is within the power of the court to sanction attorneys for bringing such suits.  Fed. Rule Civ. Proc. 11.

    And:

    It is also within the district court's discretion to award attorney's fees to prevailing parties in "exceptional cases."  35 U. S. C. §285; see also Octane Fitness, LLC v. ICON Health & Fitness, Inc., 572 U. S. ___, ___–___ (2014) (slip op., at 7–8).

    The justification is that:

    These safeguards, combined with the avenues that accused inducers have to obtain rulings on the validity of patents, militate in favor of maintaining the separation expressed throughout the Patent Act between infringement and validity.

    Which seems a thin reed to support this frolic and detour from the question before the Court.

    Justice Scalia dissents, in an opinion joined by Chief Justice Roberts (both of whom dissented in FTC v. Actavis on the question of the presumption of validity), making a very simple point:  "[o]nly valid patents confer [a] right to exclusivity — invalid patents do not," citing FTC v. Actavis, Inc. (2013).  Accordingly:

    Because only valid patents can be infringed, anyone with a good-faith belief in a patent's invalidity necessarily believes the patent cannot be infringed.  And it is impossible for anyone who believes that a patent cannot be infringed to induce actions that he knows will infringe it.  A good-faith belief that a patent is invalid is therefore a defense to induced infringement of that patent.


    Commil USA, LLC v. Cisco Systems, Inc.
    (2015)
    Opinion of the Court by Justice Kennedy, joined by Justice Ginsburg, Alito, Sotomayor, and Kagan, and joined as to Parts II-B and III by Justice Thomas; dissenting opinion by Justice Scalia, joined by Chief Justice Roberts; Justice Breyer took no part in consideration or decision of the case.