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The Supreme Courts
Renewed Interest in IP
                  Ken Bass

April 2, 2007
Who is this guy?
 Clerk for Justice Hugo Black (1969 Term)
 Private Practice focusing on appellate cases
  since 1970
 Joined SKGF in 2000
 Adjunct Professor of Appellate Practice at
  Georgetown
 Past President American Academy of Appellate
  Lawyers
 Involved in Supreme Court Patent cases
 Co-counsel in KSR v. Teleflex


                                                 2
Looking Back at History

 The Supreme Courts View of IP
  law in the early 1970s
   A technical, fairly arcane field
   A subject of lesser importance
   Judicial self-awareness of limitations
 The lack of regional consistency
 The National Court of Appeal
  movement

                                             3
The Birth of the Federal Circuit

 The 1975 Conference on Appellate
  Justice
 The National Court of Appeals
  proposal meets resistance
 The focus shifts to a specialized
  nationwide court for patent cases
 The birth of the CAFC in 1982


                                        4
The Supreme Courts Initial Reaction

 Wait and See

 IP issues remained of secondary
 public importance

 The Courts membership had not
 changed all that much

 The Percolation Policy
                                       5
The Picture Begins to Change

 Markman v. Westlaw Instruments
   April,1996
   517 U.S. 370
   CAFC decision
     Judges, not juries, decide issues of claim
      construction
   Supreme Court decision
     Agreed!

                                                   6
An Outlier Contributes to Change

 Nelson v. Adams USA
   April, 2000
   529 U.S. 460
   CAFC decision
     Attorneys fees awarded against
      individual who in fact controlled the
      defendant corporation and was added as
      a party after trial
   Supreme Court decision (unanimous)
     Improper to sanction someone not a party
      at the trial and thus no sanctions can be
      imposed
                                                  7
The Pace of Change Quickens

 Festo v. Shoketsu
   May, 2002
   535 U.S. 722
   The CAFC decision
     Any amendment forecloses DOE
   The Supreme Court decision
    (unanimous)
     Flexibility restored

                                     8
The Pace of Change Quickens (cont.)

 Holmes v. Vornado
   June, 2002
   535 U.S. 826
   The CAFC decision
     Per Curiam  the CAFC has appellate
      jurisdiction over patent counterclaims
      based on long-standing CAFC precedent
   The Supreme Court decision
    (unanimous)
     No you dont!

                                               9
The Growing Tension
 eBay v. MercExchange
   May, 2006
   126 S. Ct. 1837
   The CAFC decision
     Final injunctions are almost automatic
      once there is a finding of infringement and
      validity
   The Supreme Court decision
     No presumption of issuance, the same
      rules apply as in all civil litigation
     Two different thumbs on the scale
        Justice Kennedy
        The Chief Justice
                                                    10
The Growing Tension (cont.)

 MedImmune v. Genentech
   January, 2007
   127 S. Ct. 764
   The CAFC decision
     No Article III standing if a licensee in good
      standing contests patent validity
   The Supreme Court decision
     There is an Article III case and
      controversy (8-1 decision)

                                                      11
 KSR v. Teleflex
   ???? 2007
   The CAFC decision
     Applied the well-established TSM test for
      determining obviousness as a first hurdle
   The arguments at the Supreme Court
     Wide hostility to an absolute, first hurdle
      approach
   Whats likely to emerge?
                                                    12
What Does it All Mean?
 The Supreme Court has become
  engaged  once again  in IP issues
 The Supreme Court is not happy with
  the CAFCs handling of patent issues
 The Supreme Court dislikes bright-line
  rules
 The Supreme Court avoids giving clear
  guidance on how patent cases should be
  decided
 The Supreme Court recognizes the
  central importance of IP in todays flat
  world economy
                                              13

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SKGF_Presentation_The Supreme Courts Renewed Interest In IP_April 2007

  • 1. The Supreme Courts Renewed Interest in IP Ken Bass April 2, 2007
  • 2. Who is this guy? Clerk for Justice Hugo Black (1969 Term) Private Practice focusing on appellate cases since 1970 Joined SKGF in 2000 Adjunct Professor of Appellate Practice at Georgetown Past President American Academy of Appellate Lawyers Involved in Supreme Court Patent cases Co-counsel in KSR v. Teleflex 2
  • 3. Looking Back at History The Supreme Courts View of IP law in the early 1970s A technical, fairly arcane field A subject of lesser importance Judicial self-awareness of limitations The lack of regional consistency The National Court of Appeal movement 3
  • 4. The Birth of the Federal Circuit The 1975 Conference on Appellate Justice The National Court of Appeals proposal meets resistance The focus shifts to a specialized nationwide court for patent cases The birth of the CAFC in 1982 4
  • 5. The Supreme Courts Initial Reaction Wait and See IP issues remained of secondary public importance The Courts membership had not changed all that much The Percolation Policy 5
  • 6. The Picture Begins to Change Markman v. Westlaw Instruments April,1996 517 U.S. 370 CAFC decision Judges, not juries, decide issues of claim construction Supreme Court decision Agreed! 6
  • 7. An Outlier Contributes to Change Nelson v. Adams USA April, 2000 529 U.S. 460 CAFC decision Attorneys fees awarded against individual who in fact controlled the defendant corporation and was added as a party after trial Supreme Court decision (unanimous) Improper to sanction someone not a party at the trial and thus no sanctions can be imposed 7
  • 8. The Pace of Change Quickens Festo v. Shoketsu May, 2002 535 U.S. 722 The CAFC decision Any amendment forecloses DOE The Supreme Court decision (unanimous) Flexibility restored 8
  • 9. The Pace of Change Quickens (cont.) Holmes v. Vornado June, 2002 535 U.S. 826 The CAFC decision Per Curiam the CAFC has appellate jurisdiction over patent counterclaims based on long-standing CAFC precedent The Supreme Court decision (unanimous) No you dont! 9
  • 10. The Growing Tension eBay v. MercExchange May, 2006 126 S. Ct. 1837 The CAFC decision Final injunctions are almost automatic once there is a finding of infringement and validity The Supreme Court decision No presumption of issuance, the same rules apply as in all civil litigation Two different thumbs on the scale Justice Kennedy The Chief Justice 10
  • 11. The Growing Tension (cont.) MedImmune v. Genentech January, 2007 127 S. Ct. 764 The CAFC decision No Article III standing if a licensee in good standing contests patent validity The Supreme Court decision There is an Article III case and controversy (8-1 decision) 11
  • 12. KSR v. Teleflex ???? 2007 The CAFC decision Applied the well-established TSM test for determining obviousness as a first hurdle The arguments at the Supreme Court Wide hostility to an absolute, first hurdle approach Whats likely to emerge? 12
  • 13. What Does it All Mean? The Supreme Court has become engaged once again in IP issues The Supreme Court is not happy with the CAFCs handling of patent issues The Supreme Court dislikes bright-line rules The Supreme Court avoids giving clear guidance on how patent cases should be decided The Supreme Court recognizes the central importance of IP in todays flat world economy 13