IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE
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1 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE SUNOVION PHARMACEUTICALS INC., Paintiff, V. : Civi Action No LPS DEY PHARMA., L.P., DEY, INC., MYLAN INC., and MYLAN PHARMACEUTICALS INC., Defendants. Thomas H. Beck, Esquire and Nea K. Dahiya, Esquire of SIDLEY AUSTIN LLP, New York, NY. Pau J. Zegger, Esquire of SIDLEY AUSTIN LLP, Washington, DC. Jack B. Bumenfed, Esquire and Karen Jacobs Louden, Esquire of MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Wimington, DE. Attorneys for Paintiff. Edgar H. Haug, Esquire and Sam V. Desai, Esquire of FROMMER LAWRENCE & HAUG LLP, New York, NY. Eizabeth A. Leff, Esquire of FROMMER LAWRENCE & HAUG LLP, Washington, DC. Richard L. Horwitz, Esquire and David E. Moore, Esquire of POTTER ANDERSON & CORROON LLP, Wimington, DE. Attorneys for Defendants. MEMORANDUM OPINION January 18, 2012 Wimington, Deaware. I
2 t~~,jt; STARK, U.S. District Judge: I. INTRODUCTION Presenty before the Court is the issue of incorporation by reference, which the parties have raised in connection with Defendants' affirmative defense and countercaim aeging that the patents-in-suit are invaid for anticipation. For the reasons set forth beow, the Court agrees with Defendants that the host document, British patent GB , incorporates by reference the practica utiity ofthe compounds described in the specification of British patent GB Accordingy, that materia wi be considered together as a singe reference for purposes of anticipation at tria, which is schedued to begin on January 30, II. BACKGROUND The present itigation is a Hatch-Waxman patent infringement suit brought by Paintiff Sunovion Pharmaceuticas Inc. ("Sunovion") in response to Defendants' appication for FDA approva to market generic evabutero. Defendants contend that the patents-in-suit are invaid for anticipation in view of a British patent, GB ("the GB '494 patent"), which they contend incorporates by reference additiona materia separatey described in another British patent, GB ("the GB '886 patent"). In 2009, the parties fied cross-motions for summary judgment on the issue of anticipation. Judge Farnan, then presiding over the case, issued an opinion and order denying Sunovion's motion and granting in part and denying in part Dey's motion. (D.I. 392; D.I. 393) Judge Farnan "reserve[ d) decision on the issue of whether and to what extent GB '494 incorporates by reference[] GB '886." (D.I. 392 at 15 n.3) The parties subsequenty re-briefed the issue of incorporation by reference pursuant to this Court's November23, 2011 Order. (D.I. 475; D.I. 477; D.I. 487; ) 1
3 III. LEGAL STANDARDS Anticipation requires that the four comers of a singe prior art document describe every eement of the caimed invention, either expressy or inherenty, such that a person of ordinary ski in the art coud practice the invention without undue experimentation. See Atas Powder Co. v. Ireco Inc., 190 F.3d 1342, 1347 (Fed. Cir. 1999). I I Materia not expicity contained in a singe prior art document may sti be considered for purposes of anticipation if that materia is incorporated by reference into the document. See Utradent Prods., Inc. v. Life-Like Cosmetics, Inc., 127 F.3d 1065, 1069 (Fed. Cir. 1997). Incorporation by reference provides a method for integrating materia from various documents into a host document by citing such materia in a manner making cear that the materia is effectivey part of the host document as if it were expicity contained therein. See Advanced DispaySys., Inc. v. Kent State Univ., 212 F.3d 1272, 1282 (Fed. Cir. 2000). To incorporate materia by reference, the host document must identify with detaied particuarity what specific materia it incorporates, and ceary indicate where that materia is found in the various documents. See id. 1 Whether and to what extent materia has been incorporated by reference into a host document is a question of aw. See Advanced Dispay, 212 F.3d at If an anticipation see aso Northrop Grumman Information Tech., Inc. v. US., 535 F.3d 1339, 1344 (Fed. Cir. 2008) (stating incorporation by reference in contract aw requires "anguage that is express and cear, so as to eave no ambiguity about the identity of the document being referenced, nor any reasonabe doubt about the fact that the referenced document is being incorporated into the contract"). Athough incorporation by reference is a concept common to both patent and contract aw, it is uncear whether or to what extent the Northrop Grumman standard appies in the patent context. Because the parties agree that the standard articuated in Advanced Dispay governs the present dispute (see D at 1-2; D at 4, 6; D at 6:12-14 and 18:16-19), the Court wi appy their agreed-upon standard. 2
4 I determination impicates incorporation by reference, the court's roe is to determine what materia in addition to the host docwnent constitutes the singe reference. The factfmder's roe, in tum, is to determine whether that singe reference describes the caimed invention. See id. IV. DISCUSSION As noted, the parties' dispute concerns whether the GB '494 patent adequatey incorporates by reference the practica utiity of the racemic compounds separatey described in the GB '886 patent, such that the pertinent materia from both patents propery can be considered together as a "singe reference" for anticipation. Dey concedes that its soe anticipation defense is viabe ony if the Court finds in its favor on the issue of incorporation by reference. (D.I. 473 at 65:19-25) As reproduced beow, the GB '494 patent states in reevant part: This invention is concerned with a process for the preparation of optica enantiomers of certain 1-pheny-2-aminoethano derivatives which are described in particuar in our United Kingdom Specification No. 1,200,886. In our said United Kingdom Specification No. 1,200,886 there are described phenyaminoethano derivatives which may stimuate ~-adrenergic receptors... The practica utiity of such activity is more fuy described in said specification. The phenyaminoethano derivatives (I) may exist in two opticay isomeric forms and according to the invention we have discovered a new process for the preparation of such isomers; the advantage of this process is that it faciitates the production of pure isomers. This is of particuar importance in this case since the pharmacoogica activity of one isomer in standard tests for bronchodiator action is very much greater than that of the other. (GB '494 patent at 1:9-34) (emphasis added). Sunovion contends that this passage does not satisfy the ega standard for incorporation by reference because the GB '494 patent is directed to an entirey different invention that merey I refers to the GB '886 patent as background, and "not as part of the substantive description ofthe 3
5 invention." (D.I. 477 at 3) Sunovion further contends that the GB '494 patent fais to identify "with detaied particuarity what specific materia it incorporates" and ikewise does not "ceary indicate where that materia is found" in the GB '886 patent. (!d. at 5) Defendants respond that the GB '494 patent satisfies the requirements for incorporation by reference because it adequatey describes with detaied particuarity the specific materia I f t 1 incorporated (i.e., the practica utiity of the racemic compounds' pharmacoogica activity) and aso ceary indicates where that materia is found (in the specification of the GB '886 patent). (D.I. 475 at 4) Athough a cose question, on baance the Court agrees with Defendants that the GB '494 patent adequatey incorporates by reference the practica utiity of the compounds described in the GB '886 patent. The Federa Circuit has hed that anaogous statements containing simiar eves of detai were sufficienty specific for incorporation by reference. See Caaway Gof Co. v. Acushnet Co., 576 F.3d 1331, (Fed. Cir. 2009) ("Reference is made to... U.S. Pat. No. 4,274,637 which describes a number offoamabe compositions of a character which may be empoyed... for the gofbas of this invention."); In re Voss, 557 F.2d 812, (CCPA 1977) ("Reference is made to United States Patent No. 2,920, for a genera discussion of gass-ceramic materias and their production."); In re Hughes, 550 F.2d 1273, (CCPA 1977) ("Reference is made to appication Ser. No. 131,108 for compete descriptions of methods of preparing aqueous poymeric dispersions appicabe in the hereinafter described invention."); cf Commonweath Sci. & Indus. Research Org. v. Buffao Tech. (USA), Inc., 542 F.3d 1363, 1372 (Fed. Cir. 2008) (finding no incorporation by reference where host document merey cited 4
6 another document in footnote without any further expanation or discussion)? In view of this precedent, the Court finds that the GB '494 patent adequatey references the GB '886 patent with sufficienty "detaied particuarity" regarding the practica utiity of the compounds discosed in the GB '886 patent. The Court disagrees with Sunovion's assertion that the GB '494 patent refers to the compounds' practica utiity merey as "background" and "not as part of the substantive description of the invention." (D.I. 477 at 3) To the contrary, the GB '494 patent makes cear that the practica utiity of the compounds described in the GB '886 patent is an integra aspect of the invention caimed in the GB '494 patent. Specificay, the GB '494 patent notes that the racemic compounds of the GB '886 patent "stimuate ~-adrenergic receptors" and that "the practica utiity of such activity is more fuy described" in the specification of the GB '886 patent. (GB '494 patent at 1: 18-22) Immediatey thereafter, in the next paragraph, the inventor emphasized that the invention invoved the discovery of a new process for preparing the individua isomers of abutero, and that "the advantage of this process... is of particuar importance... since the pharmacoogica activity of one isomer in standard tests for bronchodiator action is very much greater than that of the other." (Id at 1 :25-34) The inventor thus ceary indicated that the caimed process for preparing isomers was advantageous and important precisey because the pharmacoogica activity- and, in turn, the practica utiitythat is more fuy described in the GB '886 patent was "very much greater" for one isomer! i I I 2 Athough the GB '494 patent does not specificay use the phrase "incorporate by reference," the cases cited above iustrate that those specific words are not required. Moreover, the Federa Circuit has indicated that "no particuar 'magic words' are required to incorporate a document by reference." Northrop Grumman, 535 F.3d at Instead, what is required is that the appicant "cit[e] such materia in a manner that makes cear that the materia is effectivey part of the host document as if it were expicity contained therein." Advanced Dispay, 212 F.3d at
7 compared to the other. By ceary inking in this manner the "advantage" and "importance" of the caimed invention of the GB '494 patent to the "practica utiity" ofthe pharmacoogica activity described in the GB '886 patent, the inventor "cit[ ed] such materia in a manner that makes cear that the materia is effectivey part of the host document," and thereby incorporated by reference the GB '886 patent's description of practica utiity. Advanced Dispay, 212 F.3d at The Court's concusion is further supported by additiona factors. The GB '886 patent is the ony prior art document referenced in the GB '494 patent. Additionay, the GB '886 patent is prominenty discussed right at the outset ofthe GB '494 patent (in connection with the inventor's view ofwhat "[t]his invention is concerned with"). (GB '494 patent at 1:1-35) Moreover, both the GB '494 patent and GB '886 patent are owned by the same entity, Aen & Hansbury's Limited. 3 Sunovion has raised various arguments asserting why, in its view, the GB '886 patent does not adequatey discose the practica utiity of evabutero as it specificay pertains to the caimed inventions of the patents-in-suit. (D.I. 487 at 1-2) The Court's roe, however, is imited to determining what materia in addition to the host document constitutes the singe reference for anticipation purposes; whether that singe reference actuay anticipates the asserted caims is a 3 These circumstances distinguish the present case from other cases finding no incorporation by reference. See, e.g., Commonweath Sci. & Indus. Research Org., 542 F.3d at 1372 (no incorporation by reference where document was cited ony in a footnote without discussion or expanation); Medtronic Vascuar Inc. v. Abbott Cardiovascuar Sys., Inc., 614 F. Supp. 2d 1006, 1020 (N.D. Ca. 2009) (no incorporation by reference where document was referenced in connection with ony one of severa drawings rather than the invention as a whoe); Tecordia Techs., Inc. v. Lucent Techs., Inc., 514 F. Supp. 2d 598,611 (D. De. 2007) (no incorporation by reference where host document distinguished the referenced materia rather than emphasizing its importance); SRI Int', Inc. v. Internet Sec. Sys., 456 F. Supp. 2d 623, 627 (D. De. 2006) (no incorporation by reference where host document cited a tota of twenty-four other documents). 6 j
8 determination for the factfinder to resove at tria. 4 V. CONCLUSION For the foregoing reasons, the Court concudes that the GB '494 patent incorporates by reference the practica utiity of the compounds described in the specification of the GB '886 patent, and that such materia wi be considered as a singe reference for purposes of anticipation at tria. An appropriate Order foows. 4 The parties have aso cited to testimony provided by an inventor and an author of the incorporating host reference. The subjective views of these individuas are not hepfu in resoving the dispute presenty before the Court, since it is the objective standard of "one reasonaby skied in the art [that] shoud be used to determine whether the host document describes the materia to be incorporated by reference." Advanced Dispay, 212 F.3d at Simiary, the expert testimony cited by Sunovion is argey directed not to the issue of incorporation by reference but, rather, to the merits of the utimate anticipation determination, and for this reason is generay unhepfu here. 7
9 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE SUNOVION PHARMACEUTICALS INC., Paintiff, v. Civi Action No LPS DEY PHARMA., L.P., DEY, INC., MYLAN INC., and MYLAN PHARMACEUTICALS INC., Defendants. ORDER At Wimington, this 18th day of January 2012, For the reasons set forth in the Memorandum Opinion issued this date, IT IS HEREBY ORDERED that: British patent GB incorporates by reference the practica utiity of the compounds described in the specification of British patent GB Defendants wi be permitted to present such materia at tria as a singe reference in support of their anticipation affirmative defense and countercaim. \ I
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