Lather. Rinse. Repeat — In re Baxter International, Inc.

The following is a guest blog from Ron Schutz of Robins, Kaplan, Miller & Ciresi.

It just got it easier for infringers to use reexamination as a way to wash a judicial patent validity determination right out of their hair. In In re Baxter, a sharply divided panel of the Federal Circuit affirmed a PTO decision invalidating a patent on reexamination. The majority didn’t let itself get tangled up in the fact that PTO reached its ruling after the Federal Circuit had previously affirmed a district court decision upholding the same patent against much of the same art raised by the same party who requested the reexamination. The majority said that differing judicial and PTO proof standards supported the outcome. But a dissenting Judge Newman got truly lathered over the majority’s nullification of a prior Federal Circuit ruling and the potential for endless challenges the decision creates. Our take? En banc reconsideration may be the only way to treat patent law’s latest case of split ends.

The patent at issue in Baxter covered an improved dialysis machine. A competitor of patent holder Baxter International brought a declaratory judgment action in district court seeking to have Baxter’s patent invalidated. As the case approached trial, the competitor also filed a request for reexamination based on much of the same art it was relying on in district court. The case was not stayed, and the district court determined that the competitor had not carried its burden of demonstrating that the patent was invalid by clear and convincing evidence. The Federal Circuit affirmed that decision.

Continue reading

Posted in Post-issuance procedures, Reexamination | Tagged , , , , , , , , , , | Leave a comment

USPTO Proposes Rules To Implement Micro Entity Patent Fee Provisions Of AIA

A guest post from Gary Speier, shareholder with Schwegman, Lundberg & Woessner.

Last week, the USPTO published a Federal Register notice proposing rules for implementing certain provisions of section 10 of the America Invents Act related to micro entities. (A copy of this notice is available here of at the end of this post.) The proposed rules set forth the requirements for qualifying as a micro entity and the procedures for claiming micro entity status, paying patent fees as a micro entity, notifying the USPTO of any status change, and correcting erroneous payments. In a separate rulemaking expected this summer, the USPTO will be proposing to set or adjust fees using its new fee-setting authority under AIA section 10. Micro entities will receive a seventy-five percent reduction in those fees related to filing, searching, examining, issuing, and appealing patent applications and maintaining patents. Comments on today’s notice, “Changes to Implement Micro Entity Status for Paying Patent Fees,” are due July 30.

Section 61 of the Internal Revenue Code (IRC 61, 26 U.S.C. § 61) defines “gross income,” which is the starting point for determining which items of income are taxable for federal income tax purposes in the United States. Section 61 states that “except as otherwise provided in this subtitle gross income means all income from whatever source derived”. The United States Supreme Court has interpreted this to mean that Congress intended to express its full power to tax incomes to the extent that such taxation is permitted under Article I, Section 8, Clause 1 (the Taxing and Spending Clause) of the Constitution of the United States and under the Constitution’s Sixteenth Amendment.

If median income information is not available for the prior year until the end of the following year, it could make it difficult to determine if a client qualifies for micro entity status.  I personally propose that the PTO independently publish (or provide direct access to) the “amount.” If this cannot be done on Jan 2 for the preceding year, they should require that we should work off the data from two years prior. Of course, only folks in a window of gross income about $135-165 (3 x $45-55K) would reasonably have cause for concern.  Note the YR 2010 median household income was $49,445.  (See http://www.census.gov/hhes/www/income/data/index.html.)

 2012-12971

Posted in AIA Patent Reform, Patent Reform Legislation, USPTO Rules re 2AIA Patent Reform | Tagged , , , , , , , , , | Leave a comment

Chisum Patent Academy to Convene in Seattle

Patent Law Expert Donald Chisum and Professor Janice M Mueller will be co-lecturers at the three day Intensive Patent Law Seminar in Seattle, July30 – August 1, 2012.

To find out more information on the seminar, click here.

Posted in Conferences and Classes | Tagged | Leave a comment

Prometheus Unbound – Are Methods Of Medical Treatment The Next “Targets”?

In my March post “Unnatural Acts – Patenting Diagnostic Tests Post-Prometheus” I wrote:

“I have been trying to formulate diagnostic claims that would pass muster post-Prometheus and I am having trouble. If a researcher discovers the marker, the researcher should be able to patent it and ANY utility it has, including its use for the diagnosis/prediction of disease. Likewise if the researcher discovers a completely new utility for a known marker – e.g., as an  indicator of Alz Disease, this should meet the patent eligibility requirements of s. 101. However, the correlations that the researcher bases the assay claims on are still ‘natural phenomena’ according to Prometheus. So we patent attorneys are completely cycled back into the loop of [divining] what further steps are necessary to yield a patent-eligible claim for the new diagnostic correlation.”

Last night, a new monster crawled out from under the legal bed we have to lie in after Prometheus. It is not simply that diagnostic claims based on “If ‘a’ then ‘b’” naturally-occurring correlations are of doubtful patent-eligibility; we already know that Justice Breyer will exclude such diagnostic claims, such as the one involved in the “Metabolite Dissent,” the first chance he gets – so long as he can hold the Court together. The new monster is a modern Frankenstein stitched together from the language in Prometheus:

Continue reading

Posted in Patent Eligible Subject Matter | Tagged , , , , , , , , , | 2 Comments