Jtekt Corporation v. Gkn Automotive Ltd.
Opinion
GKN Automotive LTD ("GKN") owns
BACKGROUND
GKN's '440 patent describes a drivetrain for a four-wheel drive vehicle that is made up of primary and secondary drivetrains. The drivetrain can be switched between two-wheel drive mode and four-wheel drive mode. The claimed drivetrain operates to reduce the number of rotating components when the secondary drivetrain is disconnected.
JTEKT petitioned for IPR of the patentability of claims 1-7 of the '440 patent in IPR2016-00046. The Board instituted IPR on all challenged claims. After institution, GKN disclaimed claims 1, 4, and 5. Accordingly, the IPR focused on whether JTEKT had shown that claims 2 and 3 would have been obvious over the prior art of Teraoka in view of Watanabe and whether claims 6 and 7 would have been obvious over the prior art of Teraoka in view of Burrows. Claims 2 and 3-the claims currently on appeal-specify that two side-shaft couplings connect the secondary axle rather than one side-shaft coupling. These side-shaft couplings provide both transverse and longitudinal power distribution between the left and right wheels and the front and rear wheels.
On January 23, 2017, the Board held that claims 6 and 7 would have been obvious over Teraoka in view of Burrows, but that JTEKT did not show that claims 2 and 3 would have been obvious over Teraoka in view of Watanabe. The Board decided that JTEKT had failed to establish that a person of ordinary skill "would have had a reasonable expectation of reducing vehicle weight with the proposed modification," that being the stated motivation to combine. J.A. 0032.
GKN did not appeal the Board's decision with respect to claims 6 and 7. But JTEKT appealed the Board's decision regarding claims 2 and 3. GKN's motion to dismiss the appeal based on lack of standing was denied by a motions panel of this court, which "deem[ed] it the better course for the parties to address the standing issue in their briefs." Order, No. 17-1828, ECF No. 23. JTEKT asserts that we have jurisdiction under
DISCUSSION
Under the IPR statute, any person or entity may petition the Patent Office to institute an IPR proceeding.
In a series of decisions, we have held that the statute cannot be read to dispense with the Article III injury-in-fact requirement for appeal to this court. In
Phigenix
,
Inc. v. Immunogen, Inc.
, we wrote that "[a]n appellant's obligation to establish an injury in fact remains firm even though it need not 'meet all the normal standards
*1220
for redressability and immediacy' when, as here, a statute provides that appellant with a right to appeal."
Similarly, in
Consumer Watchdog,
a nonprofit organization (Consumer Watchdog) petitioned for IPR concerning a patent for embryonic stem cells, but was unsuccessful before the Board.
Consumer Watchdog
,
Supreme Court cases establish that the injury in fact must be "an injury that is both 'concrete
and
particularized.' "
Spokeo, Inc. v. Robins
, --- U.S. ----,
As the party seeking judicial review, JTEKT has the burden of establishing that it possesses the requisite injury.
See
DaimlerChrysler Corp. v. Cuno
,
The fact that JTEKT has no product on the market at the present time does not preclude Article III standing, either in IPRs or in declaratory judgment actions.
See, e.g.
,
Altaire Pharms., Inc. v. Paragon Bioteck, Inc.
,
While JTEKT has submitted two declarations in support of its standing, JTEKT's problem is that these declarations do not establish that its planned product would create a substantial risk of infringing claims 2 or 3 of GKN's '440 patent or likely lead to charges of infringement. GKN has not alleged infringement,
see
PPG Indus., Inc. v. Valspar Sourcing, Inc.
,
The declaration of Koji Morita, a patent engineer for JTEKT, states that JTEKT began development on its own driveshaft concept in 2015, and opines that there is a "potential risk of infringement." J.A. 1636, at ¶ 14. But JTEKT repeatedly stressed that "[b]ecause JTEKT has not yet developed a final product, there is nothing that can be analyzed for infringement." J.A. 1644, at ¶ 23;
see also
J.A. 1637, at ¶ 16. Morita admits that "because the product was not-and is not-yet finalized, JTEKT cannot definitively say whether or not it will infringe the '440 patent and the potential risk of infringement ... is impossible to quantify at this time." J.A. 1637, at ¶ 16. JTEKT's declarations only state that "the general features of JTEKT's current concepts [are] similar enough to the features of the '440 patent," to justify filing the IPR to "negat[e] any potential risk for JTEKT ... down the line," J.A. 1636, at ¶ 14, and that "JTEKT determined that the '440 patent posed a risk
to future development
significant enough to warrant filing the IPR." J.A. 1641, at ¶ 10 (emphasis added). To be sure, IPR petitioners need not concede infringement to establish standing to appeal.
See
MedImmune
,
Although JTEKT argues that the creation of estoppel based on its participation in the IPR constitutes a separate, and independent, injury in fact, we have explained that "estoppel provision[s] 'do[ ] not constitute an injury in fact' when ... the appellant 'is not engaged in any activity that would give rise to a possible infringement suit.' "
Phigenix
,
CONCLUSION
Because JTEKT has failed to establish an actual injury sufficient to confer Article III standing, we dismiss this appeal.
DISMISSED
COSTS
No costs.
Reference
- Full Case Name
- JTEKT CORPORATION, Appellant v. GKN AUTOMOTIVE LTD., Appellee
- Cited By
- 37 cases
- Status
- Published