IPR Estoppel Does Not Prohibit ‘Cumulative or Duplicative’ System-Based Invalidity Defenses in District Court Actions

July 20, 2023

Reading Time : 2 min

In a decision denying summary judgment, the District of Massachusetts weighed in on an unsettled issue: whether after receiving a final written decision in an inter partes review, a patent challenger is permitted to raise system-based invalidity defenses that are related to printed publications or patents that could have been raised in an IPR. The court’s answer was yes.

Plaintiff filed an action against Defendant alleging infringement of three patents covering low-precision, high dynamic range, computer processing unit architectures. In response, Defendant filed several petitions for IPR of the patents-at-issue, contending that the challenged claims were unpatentable as obvious. Defendant relied on three prior-art references in the IPR proceedings to support its unpatentability grounds, as well as additional patents and prior art references for background purposes. In a final written decision, the Patent Trial and Appeal Board upheld the patentability of two claims that were asserted in the district court action. Based on the Board’s decision, Plaintiff moved for partial summary judgment of estoppel under 35 U.S.C. § 315(e)(2) in an effort to prevent Defendant from raising what Plaintiff characterized as the same obviousness defense in district court.

According to 35 U.S.C. § 315(e)(2), a petitioner “may not assert [] in a civil action…that the claim is invalid on any ground that the petitioner raised or reasonably could have raised” during the IPR. Plaintiff argued that Defendant was statutorily estopped from raising the same obviousness defenses because any argument Defendant presented in district court under 35 U.S.C. § 103 was one that Defendant either already raised, or reasonably could have raised, in the IPR proceedings. Also, because Defendant had already presented printed publications in the IPR that described the prior art systems, any further evidence of these prior-art systems was barred. In response, Defendant argued that when a party combines any evidence that could not have been presented in the IPR (i.e., any evidence outside of patents or printed publications) with any patent or printed publication, estoppel does not apply. Defendant further argued that because it was relying on different printed publications describing the prior-art systems, along with other forms of evidence, including source code, oral presentations and expert testimony, estoppel did not apply.

The court disagreed with both parties, stating that each party’s argument misconstrued the statutory language—Plaintiff’s interpretation was overly narrow and Defendant’s interpretation was too broad to the point of estoppel vitiation. The court defined “ground” in 35 U.S.C. § 315(e)(2) as “any anticipation or obviousness claim based on prior art in the form of a patent or printed publication.” Based on this definition, the court reasoned that while it is uncontested that estoppel applies to any raised patents and printed publications, and those which could have reasonably been raised, “[t]he Patent Act says nothing about estopping invalidity claims that are ‘cumulative’ or ‘duplicative’ of those raised in an IPR proceeding.” Ultimately, estoppel did not preclude Defendant from presenting other forms of evidence of the asserted prior-art systems.

Practice Tip

An IPR petitioner involved in a co-pending district court action should consider including in its invalidity defenses prior art evidence in other forms besides patents or printed publications, including any relevant evidence of prior art products and systems. As evidenced by this district court decision, such evidence may be immune from IPR estoppel and may be used in district court to support invalidity even in light of a final written decision in a related IPR.

Case

Singular Computing LLC v. Google LLC, Civil Action No. 19-12551-FDS (D. Mass. Apr. 6, 2023)

Share This Insight

Previous Entries

IP Newsflash

November 5, 2024

The Federal Circuit vacated a district court’s fee award because the district court considered certain information that was not relevant to the question of whether plaintiff’s case was exceptional. Specifically, the Federal Circuit held that only those “red flags” that related to the successful Section 101 defense, which served as the basis for the district court’s grant of summary judgment, could be used to show the case was fatally flawed.   

...

Read More

IP Newsflash

November 1, 2024

The Federal Circuit’s decision in Kyocera Senco Industrial Tools Inc. v. International Trade Commission articulated a bright-line test for patent expert admissibility: to testify from the perspective of a “person of ordinary skill in the art” (POSITA), the expert must at least meet the definition of a POSITA for the patents-in-suit. Absent that level of skill, Kyocera holds that the witness’s testimony is not sufficiently reliable or relevant enough to be relied on by a fact-finder.

...

Read More

IP Newsflash

October 29, 2024

The PTAB denied a petitioner’s motion to compel routine discovery that sought information from a parallel ITC investigation for alleged inconsistent positions taken by patent owner in the IPR. The board found that patent owner had not taken inconsistent positions but warned patent owner that it had an ongoing duty to produce any information inconsistent with arguments made during the present IPR, even if that information related to arguments patent owner had dropped at the ITC.

...

Read More

IP Newsflash

October 11, 2024

The Central District of California ruled that the heightened pleading standard of Federal Rule of Civil Procedure 9(b) applies to all three prongs of a false patent marking claim, including the third prong, competitive injury. In doing so, took a clear stand on an issue with a nationwide split among district courts.

...

Read More

IP Newsflash

October 10, 2024

In a patent case containing a variety of federal and state law claims, the District of Massachusetts retained supplemental jurisdiction over the state law claims even after all the federal law claims were dismissed.

...

Read More

IP Newsflash

October 3, 2024

The Federal Circuit recently upheld the USPTO’s authority under the estoppel provision 37 C.F.R. § 42.73(d)(3)(i) to prohibit a patent owner from obtaining patent claims that are not patentably distinct from claims previously declared unpatentable in inter partes review (IPR) proceedings. However, the court clarified that the regulation applies only to new claims or amended claims, not previously issued claims.

...

Read More

IP Newsflash

September 27, 2024

In Kyocera Senco Industrial Tools Inc. v. International Trade Commission, the Federal Circuit held that an expert must meet the definition of a “person of ordinary skill in the art” of the asserted patents in order to opine on infringement, among other issues. This new bright-line test and the underlying rationale, however, raised several new questions regarding expert admissibility. SeeFederal Circuit: Narrow Definition of Skill in the Art Dooms Expert’s Testimony” and “Grappling With A Bright-Line Patent Expert Admissibility Test.” The Federal Circuit recently addressed one of those questions, namely whether an expert must have acquired the requisite level of skill as of the time of the invention or whether it is sufficient for an expert to acquire that knowledge at a later date.

...

Read More

IP Newsflash

September 23, 2024

The Director of the USPTO initiated sua sponte review of a PTAB panel’s decision to impose sanctions based on patentee’s conduct during IPR proceedings. The PTAB cancelled all of patentee’s claims, including those not unpatentable on the merits, after finding that patentee deliberately withheld data relevant to the patentability of the claims at issue. In her review, the Director addressed which regulations are implicated upon a party’s misconduct during AIA proceedings and addressed whether entry of judgment in the trial was an appropriate sanction.

...

Read More

© 2024 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.