Discovery and Fact Investigation: New Patent Office Procedures under America Invents Act

Similar documents
Inter Partes and Covered Business Method Reviews A Reality Check

PROCEDURES FOR INVALIDATING, CLARIFYING OR NARROWING A PATENT IN THE PATENT OFFICE UNDER THE AMERICA INVENTS ACT (AIA)

BACK TO THE FUTURE Discovery at the Patent Trial and Appeal Board (PTAB)

Inter Partes Review: At the Intersection of the USPTO and District Court

Presentation to SDIPLA

America Invents Act: The Practical Effects of the New USPTO Post-Grant Proceedings

USPTO Post Grant Trial Practice

America Invents Act (AIA) Post-Grant Proceedings. Jeffrey S. Bergman Kevin Kuelbs Laura Witbeck

Inter Partes Review: A New Tool for Challenging Patent Validity. Dorothy Whelan and Karl Renner

New Post Grant Proceedings: Basics by

POST GRANT REVIEW PROCEEDINGS IN THE PTO STEPHEN G. KUNIN PARTNER

Paper No Entered: June 10, 2015 UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE PATENT TRIAL AND APPEAL BOARD

United States Patent and Trademark Office. Patent Trial and Appeal Board

Post-Grant Patent Proceedings

Paper 11 Tel: Entered: October 20, 2015 UNITED STATES PATENT AND TRADEMARK OFFICE

Friend or Foe: the New Patent Challenge Procedures at the Patent Trial and Appeal Board

Post-Grant for Practitioners

Post-Grant Proceedings in the USPTO

T he landscape for patent disputes is changing rapidly.

Inter Partes Review vs. District Court Litigation

U.S. Patent and Trademark Office Issues Proposed Rules for Post-Issuance Patent Review under the America Invents Act

IPRs and CBMs : The Good, the Bad, and the Unknown. Seattle Intellectual Property Inn of Court A Presentation by Group 6 April 17, 2014

Intellectual Property: Efficiencies in Patent Post-Grant Proceedings

Sughrue Mion, PLLC Washington, Tokyo, San Diego, Silicon Valley 7/2/2012

Paper 23, IPR ; Paper 23, IPR Entered: February 20, 2015 UNITED STATES PATENT AND TRADEMARK OFFICE

America Invents Act Implementing Rules. September 2012

The New Post-AIA World

The Scope and Ramifications of the New Post-Grant and Inter Partes Review Proceedings at the USPTO

America Invents Act (AIA) Post-Grant Proceedings

Navigating the Limitations on Discovery in AIA Post-Grant Proceedings Buffalo Intellectual Property Law Journal Volume XI December 3, 2015

July 12, NPE Patent Litigation. The AIA s Impact on. Chris Marchese. Mike Amon

This Webcast Will Begin Shortly

AIA Post-Grant Proceedings: Evolution of the Rules. Rachel A. Kahler, Ph.D. Patent Agent General Mills, Inc.

What is Post Grant Review?

Amendments to the Rules of Practice for Trials Before the Patent Trial and Appeal Board

AIA Post-Grant Implementation Begins - Is Your Business Strategy Aligned? August 27, A Web conference hosted by Foley & Lardner LLP

Fenner Investments, Ltd. v. Cellco Partnership Impact on IPR Practice and District Court Practice

Paper Date: July 24, 2014 UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE PATENT TRIAL AND APPEAL BOARD

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION

America Invents Act (AIA) The Patent Reform Law of 2011 Initial Summary

Patent Practice in View Of PTAB AIA Proceedings

UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE PATENT TRIAL AND APPEAL BOARD. ACCO BRANDS CORPORATION, Petitioner. FELLOWES, INC., Patent Owner.

Newly Signed U.S. Patent Law Will Overhaul Patent Procurement, Enforcement and Defense

Are Patent Owners Given A Fair Fight? Investigating the AIA Trial Practices

Preemptive Use Of Post-Grant Review Vs. Inter Partes Review

NEW US PATENT CHALLENGE PROCEDURES PROMOTE GLOBAL HARMONISATION, BUT CASUALTIES RUN HIGH

A Practical Guide to Inter Partes Review. Strategic Considerations Relating To Termination

Trends From 2 Years Of AIA Post-Grant Proceedings

Factors Affecting Success of Stay Motions Pending Inter Partes & Covered Business Method Review

Intellectual Property& Technology Law Journal

How Post Grant Challenges Have Evolved from Proposed Rules to Practice. Prepared by W. Karl Renner Principal & Co Chair of Post Grant Practice

Intersection of Automotive, Aerospace, & Transportation: Practical Strategies for Resolving IP Conflicts in Multi-Supplier Sourcing

SPECIAL REPORT May 2018 SURPREME COURT FINDS USPTO S ADMINISTRATIVE PATENT TRIALS CONSTITUTIONAL AND SETS GROUND RULES FOR THEIR CONDUCT BY THE PTAB

Paper 11 Tel: Entered: September 24, 2015 UNITED STATES PATENT AND TRADEMARK OFFICE

18-MONTHS POST-AIA: HOW HAS PATENT LITIGATION. Rebecca Hanovice, Akarsh Belagodu, Lauren Bruzzone and Clay Holloway

America Invents Act of 2011 Part 1: Impact on Litigation Strategy Part 2: Strategic Considerations of the FTF Transition

Inter Partes Review Part I: Pretrial

TECHNOLOGY & BUSINESS LAW ADVISORS, LLC

PATENT PROSECUTION STRATEGIES IN AN AIA WORLD: SUCCEEDING WITH THE CHANGES

Is Inter Partes Review Set for Supreme Court Review?

Venue Differences. Claim Amendments During AIA Proceedings 4/16/2015. The Patent Trial and Appeal Board

BCLT Back to School: The New Patent Law Explained (Post-Grant Procedures) Stuart P. Meyer

How to Handle Complicated IPRs:

PTAB Trial Proceedings and Parallel Litigation: Impact, Strategy & Consequences

Considerations for the United States

Post Grant Review. Strategy. Nathan Frederick Director, IP Services

AIA Post-Grant Proceedings: Lessons Learned from PTAB and Federal Circuit Decisions

UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE PATENT TRIAL AND APPEAL BOARD. SQUARE, INC., Petitioner, REM HOLDINGS 3, LLC, Patent Owner.

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

USPTO Post Grant Proceedings

2012 Winston & Strawn LLP

Can I Challenge My Competitor s Patent?

INTER PARTES REVIEW PROCEEDINGS:

Presented by Karl Fink, Nikki Little, and Tim Maloney. AIPLA Corporate Practice Committee Breakfast Meeting May 18, 2016

Patent Resources Group. Chemical Patent Practice. Course Syllabus

Current Developments in Inter Partes Review

Case 2:15-cv JRG-RSP Document 41 Filed 10/19/15 Page 1 of 9 PageID #: 338

Part V: Derivation & Post Grant Review

POST GRANT PROCEEDINGS BEFORE THE PATENT TRIAL AND APPEAL BOARD. Oblon Spivak

Factors Favoring Early Settlement of Post-Grant Proceedings Landslide Vol. 8, No. 6 July/August 2016

How To ID Real Parties-In-Interest In Inter Partes Review

Strategic Use of Post-Grant Proceedings In Light of Patent Reform

Patent Reform State of Play

Webinar Series 2017 PTAB Year in Review

Session 1A: Preparing an IPR Petition Tips from a Petitioner Perspective

How To Fix The Amendment Fallacy

Post-Grant Trends: The PTAB Strikes Back

Kill Rate of the Patent Death Squad, and the Elusory Right to Amend in Post-Grant Reviews - Part I of II

Post-grant opposition system in Japan.

DISCLAIMER PETITIONS FILED SalishanPatent Law Conference

America Invents Act H.R (Became Law: September 16, 2011) Michael K. Mutter Birch, Stewart, Kolasch & Birch October 11-12, 2011

Paper No Entered: October 12, 2017 UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE PATENT TRIAL AND APPEAL BOARD

A Rebalancing Act: Early Patent Litigation Strategies in Light of Recent Federal Circuit Cases ACC Litigation Committee Meeting

Post-Grant Patent Practice: Review & Reexamination Course Syllabus

Coordinating Litigation

Chemical Patent Practice. Course Syllabus

Changes at the PTO. October 21, 2011 Claremont Hotel. Steven C. Carlson Fish & Richardson P.C. Bradley Baugh North Weber & Baugh LLP

Northern Ill.'s New Local Patent Rules

Post-Grant Proceedings at the Patent Office After Passage of the America Invents Act

Inter Partes Review (IPR): Lessons from the First Year Matthew I. Kreeger

Transcription:

2013 Korea-US IP Judicial Conference (IPJC) Seminar 1 Discovery and Fact Investigation: New Patent Office Procedures under America Invents Act Nicholas Groombridge

Discovery in District Court Litigations Federal Rule of Civil Procedure 26(b)(1) sets out scope of discovery: Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party's claim or defense.... For good cause, the court may order discovery of any matter relevant to the subject matter involved in the action. Relevant information need not be admissible at the trial if the discovery appears reasonably calculated to lead to the discovery of admissible evidence. Federal Rule of Civil Procedure 26(b)(2)(C) provides limits on discovery, including if judge determines that: the burden or expense of the proposed discovery outweighs its likely benefit, considering the needs of the case, the amount in controversy, the parties resources, the importance of the issues at stake in the action, and the importance of the discovery in resolving the issues. As a practical matter, discovery in district court litigations is very extensive. 2

Discovery in District Court Litigations Expense of discovery has risen along with exponential increase in electronic data, including for example, vast quantities of email. E-discovery recognized as driving unnecessary expense, creating issue that should be addressed. Chief Judge Rader of the Court of Appeals for the Federal Circuit at the Eastern District of Texas Judicial Conference in September 2011: State of patent litigation: NEEDS IMPROVEMENT! In the electronic age, discovery procedures designed for the 19 th and 20 th centuries just do not work for complex patent litigation. [L]ess than one document in ten thousand of those produced in patent litigations actually made their way onto the trial exhibit list[.] Introduced unofficial model e-discovery order developed with the Federal Circuit Advisory Council to control the cost and efficiency of electronic discovery. Several districts (including E.D. Tex. and D. Oregon) have adopted some variation of the model order, but discovery generally remains broad and expensive. 3

Discovery in International Trade Commission Investigations The wording of the ITC rules regarding the scope of discovery closely follow the Federal Rules. For example, Commission Rule 210.27(b) provides that: a party may obtain discovery regarding any matter, not privileged, that is relevant to... [t]he claim or defense of the party seeking discovery or to the claim or defense of any other party or that appears reasonably calculated to lead to the discovery of such evidence. The ITC is governed by its own Rules, however, and is not bound by interpretations of the Federal Rules. The Administrative Law Judges have often noted that the scope of discovery has been held to be broad. As a practical matter, for example, objections to discovery on relevance grounds are difficult to maintain, and will be ruled upon with an eye towards the public interest in ensuring a complete record in an investigation. (Unfair Competition and the ITC, 4:16) Typically compressed schedules also lead to broader discovery. 4

New Patent Office Procedures under the America Invents Act The America Invents Act of 2011 created new procedures in the USPTO, including: Post-grant review (PGR); Transitional post-grant review for covered business method patents (CBM); and Inter partes review (IPR). Provide new opportunities for third parties to challenge the validity of patents and designed to operate quickly (12-18 months). New procedures are designed to replace inter partes reexaminations in the USPTO. Heard by panels of three administrative patent judges from the Patent Trial and Appeals Board (PTAB), which replaces the BPAI Consistent with past USPTO procedure in inter partes reexaminations, discovery is limited in scope, especially when compared with discovery available in district court or the ITC. Limited discovery presents both risks and benefits to a potential patent challenger that must be considered. 5

Post-Grant Review Availability of Post-Grant Review: Patents with an effective filing date of March 16, 2013 or later Petitioner must file within first nine months after the issue date Can be based on any grounds of invalidity (except best mode), including novelty, nonobviousness, written description, and patentable subject matter eligibility. Real party in interest must be identified. Creates estoppel in subsequent district court litigation for any ground that was raised or reasonably could have been raised during the PGR. The transitional post-grant review program for covered business method patents is similar in procedure, including as to discovery limits, to post-grant review. Significant difference is that CBMs can be brought against any business method patent by any party that is sued or charged with infringement of that patent. 6

Inter Partes Review Availability of Inter Partes Review: Any patent that issued at least nine months before the request is filed Must be filed within one year of any complaint against the petitioner alleging infringement of that patent Invalidity can only be based on patents and printed publications. Creates estoppel in subsequent district court litigation for any ground that was raised or reasonably could have been raised during the IPR. 7

History of Discovery in the USPTO USPTO Rules of Practice regarding contested cases have been consistent prior to the AIA allowing only limited discovery. Rationale because the other party was typically in possession of any evidence on which it intended to rely in the proceeding and would serve such evidence on the patent applicant as part of its initial discovery obligations. (As opposed to district court litigation, where a case would typically be fully developed after it was filed, not before.) Two types of additional discovery were allowed: Discovery of documents and things learned of during cross-examination of an opposing party s witnesses or during that party s own period for rebuttal testimony. Discovery that was determined by the BPAI to be in the interest of justice in light of the facts of a given case. The BPAI would not order additional discovery unless the request was properly limited and contained an explanation of how the discovery sought was related to issues in the proceeding. 8

Discovery under AIA Procedures Discovery under the new procedures created by the AIA are similarly still quite limited, especially as compared to the other venues in which a patent may be challenged. General requirement is for specific requests narrowly tailored to obtain information actually relevant to the proceeding. Although the new procedures have not been around for long, there are already several decisions laying out the groundwork for discovery limits. Consistent with the statutory provisions and legislative intent of the AIA, there is a strong public policy to limit discovery in administrative trial proceedings, as opposed to the practice in district court patent litigations that have broad discovery. Bloomberg Inc. v. Markets-Alert Pty Ltd., CBM2013-00005, Paper No. 32 at 2 (PTAB, May 29, 2013) 9

Differences in Discovery between Post Grant and Inter Partes Reviews Discovery between the new procedures are closely related, but there are some key differences driven by the differences in scope. Standards: Inter partes reviews continue to use an interest of justice standard. Post grant reviews, by statute, use the slightly lower good cause standard. Good cause requires a showing of a specific factual reason to justify the discovery. Under the interest of justice standard, the PTAB may also look at other factors, including whether the moving party was fully diligent in seeking discovery and whether there would be undue prejudice to the non-moving party. Limits: In post grant reviews, limited to evidence directly related to factual assertions advanced by either party in the proceeding. In inter partes reviews, limited to depositions of witnesses submitting affidavits or declarations and what is otherwise necessary in the interests of justice. 10

Important Case Regarding Discovery under AIA Garmin International v. Cuozzo Speed Technologies Garmin Int l Inc. v. Cuozzo Speed Techs. LLC, IPR2012-00001, Paper No. 26 at 6-7 (PTAB, Mar. 5, 2013) represents a clear statement of the PTAB s analysis in determining when to grant additional discovery in an IPR. Five factors to consider (abridged from original): 1. More Than A Possibility And Mere Allegation The party requesting discovery should already be in possession of evidence tending to show beyond speculation that in fact something useful will be uncovered. 2. Litigation Positions And Underlying Basis The Board has established rules for the presentation of arguments and evidence. A party may not attempt to alter the Board s trial procedures under the pretext of discovery. 3. Ability To Generate Equivalent Information By Other Means Information a party can reasonably figure out or assemble without a discovery request would not be in the interest of justice to have produced by the other party. 4. Easily Understandable Instructions The questions should be easily understandable. 5. Requests Not Overly Burdensome To Answer Requests should be sensible and responsibly tailored according to a genuine need. 11

Important Case Regarding Discovery under AIA Garmin International v. Cuozzo Speed Technologies In Bloomberg Inc. v. Markets-Alert Pty Ltd., CBM2013-00005, Paper No. 32 (PTAB, May 29, 2013), the PTAB again considered the Garmin factors, only in the context of the standard for additional discovery in a post grant review (and by extension, a covered business method review under the same standard). PTAB acknowledged the differences in terms of discovery between inter partes reviews and post grant reviews, including that good cause is a lower standard. Nonetheless, found the analysis in Garmin to be helpful. Adopted the five factors from Garmin with only minor modification, particularly as to the first factor, finding that a good cause showing requires the moving party to provide a specific factual reason for expecting reasonably that the discovery will be useful. 12

Benefits and Costs of AIA Procedures Benefits Obvious benefit is lower cost due to reduction in unnecessary discovery Also likely to obtain decision on validity much sooner than in district court Argue to experienced administrative patent law judges Costs Careful consideration of the effect of estoppel is required Particularly true with PGR, where the estoppel is much broader, potentially extending to all invalidity arguments There may be invalidity arguments that could be developed through the broad discovery allowed in district court, but that could not be developed through the more limited discovery allowed in a PGR 13

The full text of important cases regarding discovery under the AIA can be found at: http://www.uspto.gov/ip/boards/bpai/representative_orders_and_opinions.jsp 14