Alzheimer's Institute of America, Inc. v. Avid Radiopharmaceuticals
Alzheimer's Institute of America, Inc. v. Avid Radiopharmaceuticals
Opinion of the Court
MEMORANDUM OPINION
In this patent infringement action, the University of South Florida Board of Trustees (“USF”) moves, pursuant to Federal Rule of Civil Procedure 15(b)(2), to amend the pleadings to conform to the evidence and allow it to plead the counterclaim that it had submitted with its motion to intervene in the action. In the proposed counterclaim, USF requests a declaration that USF owns the two patents-in-suit and two related patents owned by Alzheimer’s Institute of America (“AIA”). In the present motion, USF seeks an order “entering” the counterclaim and directing AIA to “execute an assignment” of the two patents-in-suit and two related patents to USF.
Contrary to USF’s contention, its ownership interest, if any, in the patents was not fully litigated by the express or implied consent of the parties as required by Rule 15(b)(2). Allowing a post-trial amendment would prejudice AIA. Therefore, USF’s motion for leave t'o amend shall be denied.
Procedural and Factual Background
AIA brought this action against defendants Avid Radiopharmaceutieals (“Avid”) and The Trustees of the University of Pennsylvania (“Penn”), alleging that the defendants infringed two patents that issued off the patent application for the so-called “Swedish mutation” invention that Michael Mullan assigned to AIA in 1992.
Ruling on the cross-motions, we issued a memorandum opinion (“August 31, 2011 Opinion”)
USF subsequently filed a motion to intervene, requesting that it be allowed to “assert and defend its ownership interests in the patents at issue” and in two related patents owned by AIA, and to plead a counterclaim asserting those interests.
Granting USF’s motion in part, we ruled that USF could intervene, but only with respect to “the issue of whether or not it waived its rights in the invention claim by Michael J. Mullan as his own which is claimed in U.S. Patent Nos. 5455169 and 7538258.” We specifically denied the motion “to intervene for any other purpose.”
Relying on Federal Rule of Civil Procedure 15(b)(2), USF moved, immediately after the jury’s verdict, to amend the pleadings to “enter its counterclaim.” In essence, USF seeks a declaratory judgment directing AIA to “execute an assignment” of the two patents and two related patents to USF.
Discussion
Federal Rule of Civil Procedure 15(b)(2) provides, in pertinent part, that
[wjhen an issue not raised by the pleadings is tried by the parties’ express or implied consent, it must be treated in all respects as if raised in the pleadings. A party may move—at any time, even after judgment— to amend the pleadings to conform them to the evidence and to raise an unpleaded issue.
To determine whether an issue was tried by implied consent, we look to three factors: (1) knowledge—whether the parties recognized that the unpleaded issue was in the case at trial; (2) acquiescence—whether the opposing party acquiesced to trying the issue by failing to object to the evidence supporting the unpleaded issue that was in
USF argues that the issue of whether “USF is the legal and equitable owner of the patents in suit has been fully litigated with the express consent of all parties.”
[Bjecause the Florida regulation vested ownership of the patents in suit in USF, Mullan had no rights to assign to AIA, unless USF had waived its ownership rights.12
Relying on this excerpt, USF argues that “at least as of August 31, 2011 the parties were put on notice that if there was no waiver, USF rightfully holds equitable and legal title to the patents in suit.”
Additionally, USF argues that the “opening words of the Court’s charge to the jury confirm” that USF was and is the rightful owner of the patents. In its charge to the jury, the court stated that “[t]his case is about who owns the rights to two patents for technology related to research of Alzheimer’s disease.”
AIA opposes USF’s motion for several reasons. First, it contends that there is nothing to amend because USF’s proposed counterclaim was expressly not allowed. Second, it denies that it ever consented to litigating the issue of patent ownership, as demonstrated by its opposition to USF’s motion to intervene (“AIA opposes USF’s motion to intervene ... only insofar as may be necessary to preserve AIA’s opposition to USF’s counterclaim for declaration of patent ownership.”).
We shall deny USF’s motion because the issue of USF’s ownership interest in the patents has not been fully litigated by the express or implied consent of the parties, AIA would be prejudiced by the belated amendment, and the proposed amendment does not conform to the evidence at trial.
First, AIA did not give its express or implied consent to try the issue of USF’s ownership rights in the patents. On the contrary, AIA specifically objected to litigating the issue of USF’s patent ownership in its opposition to USF’s motion to intervene. (“AIA opposes USF’s motion to intervene ... only insofar as may be necessary to preserve AIA’s opposition to USF’s counterclaim for declaration of patent ownership.”).
Second, AIA would be prejudiced if USF’s counterclaim were now permitted. At trial, AIA was explicitly precluded from asserting defenses to the proposed counterclaim. Pri- or to trial, USF filed a motion in limine seeking to preclude AIA from raising the affirmative defense of equitable estoppel. In response, AIA argued that it was “entitled to raise an equitable estoppel defense to USF’s claim of no waiver and present argument and evidence on this defense at trial.”
not relevant to the issue of standing. It may be relevant to any claims that USF may have against AIA, but that is not what we are trying in this ease. It’s whether AIA can bring an action against Avid and Penn for infringement. That is all we are trying in this case. You might have that argument somewhere down the line, but not here. That is my ruling. I will not be charging on it.21
Indeed, throughout the trial, AIA sought to introduce evidence bearing on USF’s failure to assert its ownership claim for years and its acknowledging that Mullan and/or AIA held title to the invention. Its efforts were rejected. Thus, because the jury was not permitted to consider and determine AIA’s defenses in this trial concerning USF’s claims of ownership of the patents against AIA, allowing the amendment post-trial would prejudice AIA
Finally, the proposed amendment does not conform to the evidence at trial. As already explained, we limited the triable issue to whether AIA had standing to bring a claim for infringement against Avid and Penn. Significantly, the relief that USF seeks in its proposed amendment—that legal and equitable title to the patents resides in USF— cannot be granted because the jury found that Hardy is a co-inventor of the invention claimed in the patents. Because the jury did
. The patent application for the Swedish mutation named Mullan as the sole inventor and was filed on June 4, 1992. On July 15, 1992, Mullan executed an assignment to AIA of his rights in the invention, including any patents or continuations. The assignment was recorded in the U.S. Patent and Trademark Office on July 31, 1992.
. Avid argued in the alternative that Imperial College in London owned the rights to the inven
. Memorandum Opinion (Doc. No. 88) (Aug. 31, 2011).
. Mot. of USF to Intervene (Doc. No. 92) at 1, 3.
. Specifically, the proposed counterclaim stated that "[l]egal title in and to U.S. Patent Application Serial Number 07/894,211, and any patent to issue thereon, vested in USF," and that "legal title to U.S. Patent No[s]. 5,455,169[; 5,795,963; 6,818,448; and 7,538,258] resides in USF." Proposed Counterclaim, ¶¶ 6, 8-9, 14, 16-18.
. Mot. of USF to Intervene at 2. USF quoted the following portion of the opinion: "Therefore, because Mullan was employed by USF when the inventions related to the patents in suit were conceived and the inventions were within the field in which Mullan was employed by USF, rights to the patents-in-suit vested immediately in USF by operation of the Florida regulation." Id. (quoting August 31, 2011 Opinion at 15-16).
. Order (Doc. No. 122) (Oct. 20, 2011).
. Mot. to Amend the Pleadings (Doc. No. 276) at 1, and proposed order accompanying motion.
. Id. at 2.
. Id.
. Id.
. Id. (quoting Aug. 31, 2011 Opinion at 20-21). On this and one other occasion in the opinion, we mistakenly referred to USF’s ownership rights in the patents instead of ownership rights in the invention. See Opinion at 15-16 ("Therefore, because Mullan was employed by USF when the inventions related to the patents in suit were conceived and the inventions were within the field in which Mullan was employed by USF, rights to the patents-in-suit vested immediately in USF by operation of the Florida regulation.”). Ignoring the multitude of times we referred to USF’s ownership rights in the invention, USF has apparently seized on these two misstatements to assert that we held that it held ownership rights to the patents.
. Id. at 2.
. 4/20/12 Tr. at 10:10-14. However, that was followed by the statements: "AIA contends that it owns the patents;” Avid and Penn and USF "contend that AIA has no rights to the patents;” and "USF asserts that it owns the invention.” Id. at 11:2-10 (emphases added). Thus, it is clear that the court was stating that at issue were AIA's ownership rights to the patents and USF’s ownership rights to the invention.
. Mot. to Amend the Pleadings at 3.
. Pl.'s Limited Opp’n to USF’s Mot. to Intervene (Doc. No. 113) at 1.
. USF contends that because AIA’s claims have been dismissed against Avid and Penn, and neither Avid nor Penn own, or claim to own, any rights in the patents, they lack standing to oppose USF’s motion to amend. USF argues that because judgment has been entered in their favor, Avid and Penn are facing no "threat” of a claim of infringement under the patents. Consequently, according to USF, without a legally protected interest in the patents or in their potential assignment to USF, Avid and Penn should not be permitted to contest USF’s motion. Reply of USF to Defs.’ Opp’n to Mot. to Amend (Doc. No. 298) at 2-3. Because we agree with AIA’s reasoning in opposing USF’s motion, we do not consider Avid and Penn’s opposition.
. Pl.’s Limited Opp’n to USF’s Mot. to Intervene at 1.
. AIA’s Memo, in Opp’n to USF’s Mot. in Li-mine to Preclude AIA from Introducing at Trial Argument or Evidence to Assert the Affirmative Defense of Equitable Estoppel (Doc. No. 224) at 4.
. Pl.’s Proposed Jury Instructions (Doc. No. 238-1) at 19-21.
. 4/18/12 Tr. at 339:18-340:3, 349:6-15.
Reference
- Full Case Name
- ALZHEIMER'S INSTITUTE OF AMERICA, INC. v. AVID RADIOPHARMACEUTICALS
- Cited By
- 1 case
- Status
- Published