Click-To-Call Technologies, Lp v. Ingenio, Inc.
Opinion of the Court
Opinion dissenting from footnote 3 of the opinion filed by Circuit Judge Dyk, in which Circuit Judge Lourie joins.
O'Malley, Circuit Judge.
This long-marooned case returns to us after a voyage alongside two others interpreting the scope of
We conclude that the Board committed legal error in rendering its § 315(b) determination, and reject the proposed, alternative grounds for affirmance. Because the subject petition was time-barred, the Board lacked jurisdiction to institute the IPR proceedings. Accordingly, we vacate the Board's Final Written Decision in Oracle Corp. v. Click-to-Call Technologies LP , No. IPR2013-00312,
I. BACKGROUND
A. The District Court Actions
On June 8, 2001, Inforocket.com, Inc. ("Inforocket"), the exclusive licensee of
Shortly thereafter, Keen brought its own infringement suit against Inforocket based on
In 2003, while its appeal was pending, Keen acquired Inforocket as its wholly-owned subsidiary. Thereafter, subject to the terms of the merger, Inforocket and Keen stipulated to a voluntary dismissal of both suits "without prejudice," and the district court dismissed both actions on the same day-March 21, 2003. See Stipulation and Order of Dismissal, Inforocket Action ; Stipulation and Order of Dismissal, Keen Action .
On April 20, 2004, Ingenio requested ex parte reexamination of claims 1-21 of the '836 patent. The Director of the Patent & Trademark Office ("Director") granted Ingenio's request, and issued an ex parte reexamination certificate on December 30, 2008. Several claims were cancelled, others were determined to be patentable as amended, and new claims 22-30 were added.
Meanwhile, in late 2007, non-party AT&T announced its plan to acquire Ingenio and integrate Ingenio and YellowPages.com, also owned by AT&T. In January 2008, Ingenio was acquired by a subsidiary of AT&T Inc. and its name was changed to Ingenio, LLC (also "Ingenio"). In April *13262012, AT&T sold its interest in YellowPages.com and Ingenio.
CTC subsequently acquired the '836 patent, and, on May 29, 2012, asserted patent infringement claims against multiple parties in the United States District Court for the Western District of Texas. Compl., Click-to-Call Techs. LP v. AT&T, Inc. , No. 1:12-cv-00465-LY (W.D. Tex.), ECF No. 1 (AT&T Action ); Compl., Click-to-Call Techs. LP v. Oracle Corp. , No. 1:12-cv-00468-LY (W.D. Tex.), ECF No. 1 (Oracle Action ). Among the defendants named in the AT&T Action was Ingenio, which subsequently changed its name to YP Interactive LLC ("YP Interactive"). Both the AT&T Action and the Oracle Action are currently stayed.
B. The IPR Proceedings
On May 28, 2013, Ingenio, together with Oracle Corp., Oracle OTC Subsidiary LLC, and YellowPages.com LLC (together, "Petitioners" or "Appellees"),
The Board held a conference call with counsel for CTC and Petitioners in September 2013, in part to discuss CTC's § 315(b) argument. The Board then issued an order pursuant to
The Board issued its Institution Decision on October 30, 2013. With respect to the § 315(b) issue, the Board acknowledged that Ingenio was served with a complaint alleging infringement of the '836 patent on June 8, 2001 and found CTC's timeline of events "helpful in determining whether Ingenio, LLC is barred from filing an inter partes review of the '836 patent." J.A. 287. The Board then recited the language of § 315(b), and stated that the "statute requires that the service date of the complaint be more than one year before the petition was filed-in this case more than one year before May 28, 2013." J.A. 288.
Notwithstanding the above, the Board concluded that CTC "has not established that service of the complaint in the [Inforocket Action ] bars Ingenio, LLC from pursuing an inter partes review for the '836 patent" because that infringement suit was "dismissed voluntarily without prejudice on March 21, 2003, pursuant to a joint stipulation under Fed. R. Civ. P. 41(a)." J.A. 288-89. The Board wrote that "[t]he Federal Circuit consistently has interpreted the effect of such dismissals as leaving the parties as though the action *1327had never been brought," citing this court's decisions in Graves v. Principi ,
CTC requested rehearing of this § 315(b) determination, but the Board denied its request. CTC filed its Patent Owner Response on January 16, 2014, addressing the merits of Petitioners' unpatentability arguments and again requesting dismissal of the petition because the Board lacked statutory authority to review the '836 patent under § 315(b), and because Petitioners lacked standing under
The Board issued its Final Written Decision on October 28, 2014, reaffirming its conclusion that Petitioners were not barred from filing an IPR petition by stating that, "because [the Inforocket Action ] was dismissed without prejudice, Federal Circuit precedent interprets such a dismissal as leaving the parties in the same legal position as if the underlying complaint had never been served." Final Written Decision at *7. The Board also determined that claims 1, 2, 8, 12, 13, 15, 16, 19, 22, 23, 26, 29, and 30 either were anticipated by or would have been obvious in view of certain prior art references.
C. The History of this Appeal
CTC filed its Notice of Appeal on November 25, 2014, and briefing commenced shortly thereafter. In April 2015, the Director intervened solely to address the § 315(b) time bar issue. See Intervenor Docketing State-ment, No. 15-1242 (Fed. Cir. Apr. 1, 2015), ECF No. 28.
On October 12, 2015, counsel for Appellees submitted a Rule 28(j) letter informing the court of our decision in Achates Reference Publishing, Inc. v. Apple Inc. ,
CTC petitioned for writ of certiorari, and, on June 27, 2016, the Supreme Court granted the petition, vacated this court's judgment in Click-to-Call I , and remanded for further consideration in light of its opinion in Cuozzo . Click-to-Call Techs., LP v. Oracle Corp. , --- U.S. ----,
On September 21, 2016, counsel for Appellees filed a second letter regarding supplemental authority, this time informing the court of our decision in Wi-Fi One, LLC v. Broadcom Corp. ,
On December 5, 2016, CTC filed a petition for en banc rehearing, principally arguing that Achates and Wi-Fi One should be overruled. Pet. for Reh'g En Banc, No. 15-1242 (Fed. Cir. Dec. 5, 2016), ECF No. 91. Less than one month later, CTC's wish was partially granted when this court agreed to consider en banc whether it should over-rule Achates and hold that judicial review is available for a patent owner to challenge the Director's determination that the petitioner satisfied the timeliness requirement of
On January 8, 2018, we issued our en banc decision in Wi-Fi One , expressly overruling Achates and holding that time-bar determinations under § 315(b) are appealable.
We have jurisdiction under
II. DISCUSSION
A. Section 315(b) and Voluntary Dismissals Without Prejudice
The principal question on appeal is whether the Board erred in interpreting the phrase "served with a complaint alleging infringement of [a] patent" recited in § 315(b) such that the voluntary dismissal without prejudice of the civil action in which the complaint was served "does not trigger" the bar. Final Written Decision , slip op. at 12. We hold that it did.
1. Legal Standards
We review the Board's statutory interpretation pursuant to Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc. ,
When a statute expressly grants an agency rulemaking authority and does not "unambiguously direct[ ]" the agency to adopt a particular rule, the agency may "enact rules that are reasonable in light of the text, nature, and purpose of the statute." Cuozzo , 136 S.Ct. at 2142 (citing Mead ,
Where an agency instead engages in "interpretive," rather than "formal," rulemaking, a lower level of deference might apply. See Mead ,
2. Chevron Step One
We begin our analysis of the Board's interpretation of § 315(b) by construing the provision. "As in any case of statutory construction, our analysis begins with the language of the statute." Hughes Aircraft Co. v. Jacobson ,
a. Plain and Unambiguous Language
We "[s]tart where the statute does." SAS ,
The "ordinary, contemporary, common meaning[s]" of the operative terms "served" and "complaint" support the understanding that it is wholly irrelevant to the § 315(b) inquiry whether the civil action in which the complaint was filed is later voluntarily dismissed without prejudice. Black's Law Dictionary defines "serve" as "[t]o make legal delivery of (a notice or process)" or "[t]o present (a person) with a notice or process as required by law," and defines "service" as "[t]he formal delivery of a writ, summons, or other legal process[.]" Black's Law Dictionary 1491 (9th ed. 2009). It defines "complaint" as "[t]he initial pleading that starts a civil action and states the basis for the court's jurisdiction, the basis for the plaintiff's claim, and the demand for relief."
This reading of § 315(b) is confirmed by our en banc decision in Wi-Fi One , in which we held that the provision sets forth a "condition precedent to the Director's authority to act," based on the "timely filing of a petition."
*1331This is so because § 315(b)'s time bar concerns "real-world facts that limit the agency's authority to act under the IPR scheme," reflecting Congress's "balancing [of] various public interests."
Moreover, adopting the Board's preferred construction of the phrase "served with a complaint" in § 315(b)"would impose additional conditions not present in the statute's text." Return Mail, Inc. v. U.S. Postal Serv. ,
b. Legislative History
The legislative history of § 315(b) further supports the understanding that its time bar concerns only the date on which the complaint was formally served. For example, during the March 2011 Senate debates, Senator Kyl made clear that, under the version of § 315(b) then being considered, "if a party has been sued for infringement and wants to seek inter partes review, he must do so within 6 months of when he was served with the infringement complaint." 157 Cong. Rec. S1375 (daily ed. Mar. 8, 2011) (statement of Sen. Kyl) (emphases added). This unequivocal reference to the date on which an accused infringer was served suggests that Congress did not contemplate subsequent events "nullifying" § 315(b)'s time bar.
*1332The legislative history also clarifies that Congress chose the date of service, as opposed to some other event, as the trigger for § 315(b)'s time bar because service of a complaint is the seminal notice-conferring event in a district court action. As the Supreme Court has explained, "the core function of service is to supply notice of the pendency of a legal action, in a manner and at a time that affords the defendant a fair opportunity to answer the complaint and present defenses and objections." Henderson v. United States ,
c. Conclusion Regarding Chevron Step One
"Because a statute's text is Congress's final expression of its intent, if the text answers the question, that is the end of the matter." Timex V.I., Inc. v. United States ,
2. The Board's Contrary Reasoning Is Unpersuasive
Notwithstanding the absence of any facial ambiguity in the phrase "served with a complaint," the Board concluded that CTC "has not established that service of the complaint in the infringement suit brought by Inforocket against Keen bars Ingenio, LLC from pursuing an inter partes review for the '836 patent." JA. 288. To support this conclusion, the Board wrote that the "Federal Circuit consistently has interpreted the effect of such dismissals as leaving the parties as though the action had never been brought," and cited this *1333court's decisions in Graves ,
The Board misunderstood that the text of § 315(b) is agnostic as to the "effect" of the service-i.e., what events transpired after the defendant was served. The provision only probes whether the petitioner, real party in interest, or privy of the petitioner was served with a complaint alleging patent infringement more than one year before the IPR petition was filed. We reject the Board's interpretation of § 315(b) for this reason alone.
Even if the provision could fairly be read to consider the "effect" of service-which it cannot-the Board's reliance on the cited authorities was erroneous.
Both Bonneville and Graves concern the dismissal of an appeal in a first proceeding and the extent to which that dismissal impacts the appellant's ability to initiate a later proceeding. In the former, Bonneville, after receiving an adverse decision from a contracting officer, filed a notice of appeal with the General Services Administration Board of Contract Appeals, but thereafter "withdr[e]w" its notice of appeal pursuant to the Board's rules to "pursue its appeal in the U.S. Claims Court." Bonneville ,
We affirmed the Claims Court's dismissal,
because Bonneville voluntarily caused its appeal to be dismissed without prejudice *1334in order to pursue the appeal in another forum, Bonneville is placed in the same position as if the first appeal had never been filed. The second filing does not relate back to the date of the first filing. Moreover, as the second complaint filed on December 29, 1994 is a "new appeal" filed after the expiration of the CDA ninety-day time limit, it is untimely. We lack jurisdiction to hear this appeal.
We affirmed the Board's dismissal, finding no plain error in the Board's decision to treat Bonneville's dismissal without prejudice the same way that federal courts would have treated it under Rule 41(a).
Graves likewise concerns an appellant's effort to seek relief a second time beyond a limitations period. After Graves received an adverse decision from the Board of Veterans' Appeals, he, proceeding pro se , timely appealed to the U.S. Court of Appeals for Veterans Claims ("Veterans Court").
Graves then asked the Board to reconsider its initial decision, and after the Board denied this request, Graves appealed both the initial decision and the denial of his request for reconsideration to the Veterans Court.
We affirmed, writing that "[t]he most fundamental problem" facing Graves "is the fact that, as a matter of law, once his appeal was dismissed-for whatever purpose and whether with or without prejudice-it was as if the appeal had never been filed."
These two cases are inapplicable to the issue presented in this appeal. Both concern whether an appellant's filing of a notice of appeal and subsequent dismissal of that appeal "tolls" the jurisdictional deadline to appeal from the decision below. The cases, relying on the principle that *1335"[t]he effect of a voluntary dismissal without prejudice pursuant to Rule 41(a)'is to render the proceedings a nullity and leave the parties as if the action had never been brought,' " Bonneville ,
Here, by contrast, the appropriate question is whether the voluntary, without prejudice dismissal of a civil action in which a complaint had been served nullifies an administrative time bar that is triggered by service of that complaint. It does not. Yet the Board, without explanation, extended the background principle of Graves and Bonneville to conclude that such a dismissal "nullifies the effect of the service of the complaint." It then relied on this erroneous conclusion to "un-ring" § 315(b)'s time bar. In effect, the Board relied on cases holding that the voluntary dismissal of an action or appeal does not toll a statute of limitations to conclude that the voluntary dismissal without prejudice of a civil action does indefinitely toll § 315(b) and permitted an otherwise untimely IPR to proceed, turning Bonneville and Graves on their head.
These cases do not delve into the meaning of the terms "serve" or "complaint," nor do they hold that the voluntary, without prejudice dismissal of a civil action transforms the ordinary meaning of the phrase "served with a complaint" into something else. Although we "presume that 'Congress intended to retain the substance of the common law' " when "a statute covers an issue previously governed by the common law," Kirtsaeng v. John Wiley & Sons, Inc. ,
Where, moreover, the proposed atextual explanation is the alleged existence of a "background legal principle," that principle must both be firmly established and unequivocal before it can justify ignoring the plain text of the statute. The background legal principle on which Petitioners and the Director rely-that a "dismissal without prejudice leaves the parties in the same legal position as if the underlying complaint had never been filed," for all purposes, Appellees Suppl. Br. 3-is anything but unequivocal. A voluntary dismissal without prejudice only leaves the dismissed action without legal effect for some purposes; for many other purposes, the dismissed action continues to have legal effect. Indeed, a voluntary dismissal without prejudice (1) may give rise to costs and fees under Rule 11, see Wright & Miller, Federal Prac. & Proc. Civ. §§ 1336, 2367; (2) forbids the filing of a subsequent action "based on or including the same claim" under Rule 41(a)(1)(B) ; and (3) may establish the necessary case or controversy for a later declaratory judgment action, see TransWeb, LLC v. 3M Innovative Props. Co. ,
*1336And counsel for Petitioners admitted at oral argument that § 315(b)"appears to be unique relative to the other cases cited in that it involves the act of service triggering a limitations period," suggesting that there is no pertinent "background legal principle" that might alter our view of the plain and ordinary meaning of the phrase "served with a complaint." Oral Arg. at 22:13-22:29, available at http://oralarguments.cafc.uscourts.gov/default.aspx ?fl=2015-1242.mp3.
For all of these reasons, we conclude that a defendant served with a complaint as part of a civil action that is voluntarily dismissed without prejudice remains "served" with the "complaint." This remains true even if that action becomes a "nullity" for other purposes and even if such service becomes legally irrelevant in a subsequent court action.
B. Petitioners' Alternative Arguments
Petitioners also argue that, even if the Board erred in concluding that the voluntary dismissal of the district court action rendered § 315(b) inapplicable because the dismissal "nullifie[d] the effect of the service," the institution of the IPR proceeding was nevertheless proper for two independent reasons. Although CTC initially posited that subsidiary factual questions precluded us from deciding in the first instance the merits of Petitioners' alternative arguments, Reply Br. 24, the parties (but not the Director) now agree that no further fact-finding is required. We therefore address these arguments in turn. See Killip v. Office of Pers. Mgmt. ,
1. The Impact of Ex Parte Reexamination
Petitioners first contend that, because the claims of the '836 patent were materially changed during a subsequent ex parte reexamination, neither they nor any other entity was served with a complaint alleging infringement of this patent more than one year before the IPR petition was filed. See Appellees Br. 8, 19-21. In particular, they claim that, "[b]ecause each claim of the reexamined patent substantively differs from the claims of the original patent, the reexamined '836 patent should be treated as a new patent for purposes of § 315(b)." Id. at 21.
Petitioners are mistaken. "Unlike reissue, reexamination does not result in the surrender of the original patent and the issuance of a new patent." Aspex Eyewear, Inc. v. Marchon Eyewear, Inc. ,
Petitioners' emphasis on alleged differences in claim scope misunderstands that § 315(b) does not speak in terms of claims. Instead, the provision asks on what date the petitioner, real party in interest, or privy of the petitioner "is served with a complaint alleging infringement of the patent ," making clear that the timeliness analysis is to be made with reference to "the patent." The Director agrees with this conclusion. See Intervenor Second Suppl. Br. 10 n.3.
Even if we were to hold that § 315(b) is ambiguous with respect to whether the term "the patent" includes reexamined patents having amended or new claims of "substantively differ[ent]" scope than the original claims, we would still reject Petitioners' argument that the time bar does not apply here. We have held that, "in the absence of a clear showing that such a material difference in fact exists in a disputed patentable reexamination claim, it can be assumed that the reexamined claims will be a subset of the original claims and that no new cause of action will be created." Senju Pharm. Co., Ltd. v. Apotex Inc. ,
For these reasons, we reject Petitioners' effort to deem the reexamined '836 patent a "new patent" for § 315(b) purposes.
2. The Relevance of "Non-Barred" Petitioners
Petitioners also submit that, even if § 315(b)'s time bar applies to YP Interactive, it would not apply to YellowPages.com, Oracle Corporation, or Oracle OTC Subsidiary LLC. According to Petitioners, because YellowPages.com was not in privity with YP Interactive or its predecessors "before at least 2008," YellowPages.com never had any opportunity, as a privy or otherwise, to participate in the Inforocket Action or Keen Action , which were voluntarily dismissed years earlier. Appellees Br. 24. They also submit that the Oracle entities were not parties, real parties in interest, or privies of Ingenio with respect to these earlier proceedings. In Petitioners' view, these arguments are relevant because, if these entities had filed separate petitions, those petitions would not have been time barred under § 315(b). Moreover, they submit that, had YP Interactive filed a separate petition, the Director could have joined its petition with the hypothetical non-barred petitions pursuant to
We reject these efforts to separate YP Interactive from the other Petitioners to save the petition as to the latter. We need not scrutinize the legal relationships between *1338YellowPages.com, Oracle Corporation, and Oracle OTC Subsidiary LLC, on the one hand, and Ingenio/YP Interactive, on the other, to address Petitioners' arguments. These four entities declared themselves as "the Petitioner" in their sole IPR petition, and certified that Ingenio (now YP Interactive) is a "real party in interest." J.A. 345. In these circumstances, under current law, Petitioners are properly treated as an undifferentiated unit that filed an untimely petition.
Section 315(b) and the implementing regulation both treat a petition as if there is a single petitioner for purposes of the one-year rule. Section 315(b) bars institution of an IPR where "the petition requesting the proceeding is filed more than 1 year after the date on which the petitioner , real party in interest , or privy of the petitioner is served with a complaint alleging infringement of the patent."
[a] person who is not the owner of a patent may file with the [Patent & Trademark Office] a petition to institute an [IPR] of the patent unless ... [t ]he petition requesting the proceeding is filed more than one year after the date on which the petitioner, the petitioner's real party-in-interest, or a privy of the petitioner is served with a complaint alleging infringement of the patent.
We read section 315(b), as implemented by the existing regulation, to apply petition-by-petition, not petitioner-by-petitioner, with the collection of petitioners on a single petition treated as a unit indistinguishable from each member of that collection. This reading of the statutory and regulatory reference to the singular "the petitioner" for the one-year time bar is supported by the fact that, in the same statutory scheme, Congress expressly recognized the possibility of multiple petitioners and permitted separate treatment of them for different purposes. See, e.g. ,
*1339Under the unitary-entity interpretation of section 315(b) and its implementing regulation, the petition at issue here was untimely. "The petitioner" (all four petitioners considered collectively) filed the single petition more than one year after YP Interactive (operating under the name Keen), which is itself both "the petitioner" and a real party in interest, was served with a complaint alleging infringement of the '836 patent. The Director was therefore barred from instituting this IPR based on this petition.
Because this IPR was not instituted properly, the final written decision was entered contrary to a statutory command and must be set aside. Petitioners cite nothing to support a conclusion that the error in instituting on this petition could be deemed harmless just because a different petition might have been filed that would have permitted institution of a different IPR to review the same patent claims. Indeed, that circumstance would often be the case, since any "person who is not the owner of a patent" may file a petition for an IPR.
Petitioners' additional reliance on §§ 315(c) and 317(a) in an effort to save this petition as to some petitioners does not persuade. Petitioners' § 315(c) theory would seem to be that the petition may be viewed as having been filed solely by the Oracle and YellowPages.com petitioners and merely joined by YP Interactive, so that the timeliness determination could disregard YP Interactive. Petitioners' § 317(a) theory would seem to be that YP Interactive might be dropped from the IPR, leaving only the other petitioners, as to which the Board may continue. As already noted, however, the availability of a path not taken does not validate the path actually taken. SAS ,
*1340Similarly, while § 317(a) permits the termination of IPR proceedings that have been instituted "with respect to any petitioner"-and even permits the Office to "proceed to a final written decision" where "no petitioner remains in the inter partes review"-such termination can only occur "upon the joint request of the petitioner and the patent owner unless the Office has decided the merits of the proceeding before the request for termination is filed." No joint request for termination was made in this case. The fact that Congress afforded petitioners the opportunity to settle with patent owners after institution does not address the predicate question of whether the IPR was properly instituted in the first place.
Further support for our reading of § 315(b) is found in decisions of the Board's own panels. In Terremark North America LLC v. Joao Control & Monitoring Systems, LLC , No. IPR2015-01482, 2015 Pat. App. LEXIS 12695 (P.T.A.B. Dec. 28, 2015), Paper No. 10, the panel con-fronted a situation involving multiple petitioners seeking institution of an IPR, in which some but not all of the petitioners were time-barred. In that case, CoxCom was the only petitioner that was not served with a complaint more than one year before the IPR petition was filed. 2015 Pat. App. LEXIS 12695, at *19. The petitioners argued that, because CoxCom was not time-barred, § 315(b) should not apply to the jointly filed IPR petition.
Notably, the Board also considered, but rejected, the petitioners' argument that § 325(a)(1) would not bar institution if PNC were to "forswear all further control and participation in this case" or have adverse judgment entered against it, permitting the other petitioners to proceed without its involvement.
Turning back to Terremark , the Board there wrote that the non-CoxCom petitioners, like PNC, "already have exerted substantial control over the case by participating in filing the Petition, appointing *1341counsel, etc.," and therefore "[t]he presence of CoxCom ... does not remove the statutory bar." 2015 Pat. App. LEXIS 12695, at *21. Here, too, "removing" Ingenio/YP Interactive from the IPR would not alter the fact that it has participated for several years in this proceeding in violation of § 315(b). Appellees' unsupported assertion that there is nothing about the relationship between these parties that indicates control over the other joint petitioners by Ingenio/YP Interactive does not change our view. Where the parties choose to be joint petitioners in a single petition, the petition must-under current law-be assessed in light of that choice.
In conclusion, to the extent Petitioners rely on §§ 315(b), 315(c), and 317(a) to argue that the Board's institution of IPR proceedings in this case was "harmless," we have made clear that "[t]he timely filing of a petition under § 315(b) is a condition precedent to the Director's authority to act"-indeed, it "sets limits on the Director's statutory authority to institute." Wi-Fi One ,
Finally, we conclude that a remand for consideration of this multi-petitioner issue is not warranted. Neither Petitioners nor CTC seek a remand for further Board proceedings. That fact is significant not only because of the IPR regime's general policy of expedition, see
Only the Director suggests a remand on this issue. But the Director identifies no material facts requiring further development on remand. And, the Director has not explained exactly what the Board might wish to, or be able to, consider on remand. The issue in this case thus raises only a legal question, and under current law, including the current regulation, the answer to the legal question is already determined in this opinion. The Board must follow the governing regulations, see , e.g. , Crediford v. Shulkin ,
III. CONCLUSION
For the foregoing reasons, we vacate the Board's Final Written Decision and remand *1342for the Board to dismiss IPR2013-00312.
VACATED AND REMANDED
COSTS
Costs to Click-to-Call Technologies, LP.
The appeal in the Keen Action was also dismissed by agreement of the parties on March 19, 2003, under Fed. R. App. P. 42(b). Keen, Inc. v. Inforocket.Com, Inc. ,
As we discuss in Section II(D)(2), infra , Petitioners identified themselves as a singular "Petitioner" in their IPR petition. For simplicity, we refer to the collective as "Petitioners" in this Opinion. We use this convention even though Oracle Corp. and Oracle OTC Subsidiary LLC filed an unopposed motion to withdraw from further participation in this appeal on June 14, 2018, after settling their disputes with CTC. See Mot. to Withdraw, No. 15-1242 (Fed. Cir. June 14, 2018), ECF No. 121. These entities noted that their "motion does not affect the participation of the non-Oracle Appellees, YellowPages.com LLC and YP Interactive LLC, in this appeal." Id. at 1. As neither the other Petitioners' participation in this appeal nor the outcome of this case would be affected by granting the Oracle entities' requested relief, we granted their motion. See Order Granting Mot. to Withdraw, No. 15-1242 (Fed. Cir. July 24, 2018), ECF No. 123.
The en banc court formed of Prost , Chief Judge , Newman, Lourie, Dyk, Moore, O'Malley, Reyna, Wallach, Taranto, Chen, Hughes , and Stoll , Circuit Judges , considered whether
Although the stipulations of dismissal in this case were jointly entered by the predecessors of both CTC and Ingenio, we acknowledge that plaintiffs in civil suits can seek dismissal without prejudice pursuant to Rule 41(a)(1) of the Federal Rules of Civil Procedure in certain circumstances without a court order and without any involvement by the defendant. This reality does not alter our conclusion that the subsequent dismissal of a civil action is irrelevant to whether a petitioner, real party in interest, or privy of the petitioner was previously "served with a complaint" within the meaning of § 315(b). To the extent the parties debate whether the Board's interpretation of § 315(b) results in good policy, "who should win that debate isn't our call to make." SAS ,
We ignore for the purpose of this appeal whether the Board improperly placed the burden of demonstrating that the IPR petition was time-barred on CTC, the patent owner.
The background legal principle on which the Director and Petitioners rely cannot be as absolute as they contend. We have little doubt that a contract clearly and unambiguously providing for a payment to be due upon service of a complaint would render such payment due, and remaining due, upon service of a complaint that is later dismissed without prejudice. A statutory bar that is clearly and unambiguously triggered by service of a complaint, such as § 315(b), is to the same effect.
Were the Director or Board merely to interpret (rather than change) the current regulation to allow separate treatment of co-petitioners for § 315(b) purposes, that interpretation would not be owed deference in light of our interpretation of the existing regulation, given the statute-parroting nature of this regulation. See Gonzales v. Oregon ,
We recognize that a number of Board panels have constrained joinder in apparent recognition of a tension between §§ 315(b) and (c). Where an otherwise time-barred petitioner seeks to join an IPR under § 315(c), Board panels consistently have granted such requests only under limiting conditions, such as (1) that the party seeking joinder "maintain a secondary role in the proceeding," Pfizer, Inc. v. Biogen, Inc. , No. IPR2017-01115,
At oral argument, counsel for the Director was unable to articulate why the fact that PNC involved CBM review, rather than an IPR, was relevant, given that the applicable statutes are similarly worded. See Oral Arg. at 33:45-33:55. Nor did counsel for the Director or for Petitioners explain why additional fact-finding (or remand) would be necessary on the issue of Ingenio/YP Interactive's control over or active involvement in this IPR proceeding.
Concurring Opinion
I join the panel's opinion in full. Here I add a few thoughts on why I am unpersuaded by the key rationales set forth in the dissent from the court's en banc holding.
The en banc issue is governed by statutory language that, as the panel opinion explains, is plain in its meaning. In September 2001, Ingenio (then called Keen) was served with a complaint asserting that it infringed the '836 patent, and there is no dispute about the content of the complaint or the propriety of service. In 2013, Ingenio filed a petition for an inter partes review (IPR)-far more than one year after the 2001 service. With respect to the en banc issue, those facts make § 315(b)'s time bar applicable by its plain terms. Nothing in that language makes relevant whether the 2001 complaint was eventually dismissed voluntarily without prejudice; the fact that service occurred does not change when the complaint (or action) is later dismissed, whether voluntarily or otherwise, and whether with or without prejudice to the right to file another action on the same claims. No other provision of the statute calls for a different conclusion. Indeed, whereas Congress in § 315(a)(2)(C) specifically addressed the effect of a voluntary dismissal of an IPR petitioner's own district court complaint challenging a patent, Congress left § 315(b) unmodified by any language addressed to dismissals of patentees' complaints.
This is not a case where the scope of a word or phrase in the statute, considered alone and in context, "may be open to competing interpretations" as in Kasten v. Saint-Gobain Performance Plastics Corp. ,
Numerous authorities state that statutory language as plain in its meaning as to an issue as is § 315(b), when read alone and in context, is controlling on that issue, subject to very narrow exceptions. See , e.g. , SAS Inst. Inc. v. Iancu , --- U.S. ----,
*1343statute's language is plain, the sole function of the courts-at least where the disposition required by the text is not absurd-is to enforce it according to its terms") (alteration in original) (internal quotation marks omitted); Gross v. FBL Fin. Servs., Inc. ,
I see no basis strong enough to justify the proposed contrary-to-text result urged by the Director-that § 315(b) becomes inapplicable when the complaint whose service would otherwise bar the IPR was dismissed voluntarily without prejudice under Rule 41(a) of the Federal Rules of Civil Procedure. Respecting § 315(b)'s plain meaning leaves the statutory scheme "coherent and consistent," Barnhart ,
I
The principal rationale offered to support the Director's position is that a background rule of law exists that Congress must have intended to modify § 315(b)'s plain meaning. The asserted "rule" is that "[t]he effect of a voluntary dismissal without prejudice pursuant to Rule 41(a) is to render the proceedings a nullity and leave the parties as if the action had never been brought." Bonneville Assocs., Ltd. P'ship v. Barram ,
But this court has already observed that the cases articulating an "as if never brought" principle do not "address § 315(b) or whether service of a complaint can be nullified." Shaw Indus. Grp., Inc. v. Automated Creel Sys., Inc. ,
The fundamental problem with the Director's position is that it takes judicial language used as explanation in particular contexts and mistakenly treats the language as establishing a rule sweeping enough to apply to the § 315(b) context. That is a mistake here because the federal courts do not always treat a voluntary, without-prejudice dismissal as leaving the dismissed action without legal effect. Only for some purposes does a voluntary, without-prejudice dismissal leave the dismissed action without legal effect, as if it had never been brought; for other purposes, the dismissed action continues to have legal *1344effect. And the legal effect at issue for § 315(b) -triggering the start of a clock for filing an action-has never been in the first category. The Director has noted that he knows of no case holding that a voluntary, without-prejudice dismissal of a complaint nullifies the statutory effect of the filing of that complaint (or, here, of its service) of starting a clock on initiating another proceeding. Oral Arg. at 30:08-31:20. We cannot soundly infer a nontextual exception to § 315(b)'s plain-meaning application based on a nullification principle that has not been applied, and certainly is not established, in the clock-starting situation present here.
A
Some of this court's and other courts' cases deny certain legal effects to the filing of a complaint later voluntarily dismissed without prejudice. One such effect concerns what is needed to satisfy (or toll) a time limit on initiating an action or appeal. The rationale is simple. A particular case or appeal must itself be initiated within a prescribed time. A filing that initiated an earlier case or appeal, if voluntarily dismissed without prejudice, does not meet, or toll the running of the clock for meeting, the time limit for filing the document that initiates the later (even substantively identical) case.
This court so held in Bonneville II , a government-contract dispute in which Bonneville timely appealed to the General Services Administration Board of Contract Appeals; voluntarily dismissed that appeal to pursue relief in the Claims Court instead; was denied a forum for lack of jurisdiction there (as this court held in Bonneville Assocs. v. United States,
*1345But the § 315(b) en banc issue does not involve the legal effect of the type at issue in the cases just described. A legal effect of that type would be at issue if an IPR petitioner filed a petition within the one-year period, voluntarily dismissed the petition without prejudice, then filed another IPR petition outside the period: the earlier (timely) petition would be disregarded in assessing the timeliness of the later petition. Here, there were no successive IPR petitions, and the issue is not whether a voluntarily dismissed filing could be treated as satisfying the one-year rule.
Rather, the issue is whether the 2001 service of a complaint asserting that Ingenio infringed the '836 patent should be treated as losing its clock-starting legal effect for filing an IPR before the Board, just because the properly served complaint was later voluntarily dismissed without prejudice. None of the just-cited cases involved that legal effect. Indeed, while those cases insist on enforcing a time limit on initiating legal proceedings for the same or similar claims brought by the same party in (usually) the same forum, the Director's position here would have the opposite effect of nullifying a time limit-and doing so based on the filing of different claims (invalidity, not infringement) by a different party (accused infringer, not patent owner) in a different forum (Board, not district court). In multiple ways, then, the main line of authority invoking the "as if never brought" rationale does not apply to the circumstances addressed by § 315(b).
The clock-starting effect that is at issue here is also different from certain other legal effects that are denied to a complaint once it has been voluntarily dismissed without prejudice. Notably, once a complaint has been voluntarily dismissed without prejudice, most further action in the very case initiated by that complaint is neither required nor permitted.
B
As just set forth, although a voluntary, without-prejudice dismissal has been held to eliminate some legal effects of a dismissed action, the clock-starting effect of § 315(b) is not among them. Nor does the law recognize a universal nullification rule that such a dismissal eliminates all legal effects of a dismissed action. To the contrary, in various circumstances, such a dismissed action has continuing legal effects, i.e. , is not treated as if it had never been brought.
For example, Rule 41 itself makes clear that a first voluntary dismissal has an effect in forbidding a without-prejudice dismissal of a second action "based on or including the same claim." Fed. R. Civ. P. 41(a)(1)(B). Rule 41 adds that a first such dismissal may give rise to a court-imposed requirement that the costs of the first action be paid as a precondition to litigation of a second action based on or including the same claim against the same defendant. Fed. R. Civ. P. 41(d). And a voluntary, without-prejudice dismissal may give rise to costs and fees under Rule 11. See Wright & Miller, §§ 1336, 2367.
Continuing effects are also evident in sources outside the Federal Rules of Civil Procedure. For example, as the Director appears to acknowledge, the filing of a patent infringement complaint, even if later voluntarily dismissed, can play a role, even a definitive role, in proving the defendant's knowledge of the patent if the defendant is later charged with willful infringement. Intervenor's Second Supp. Br. 8 ("[D]ismissing a complaint without prejudice could have ongoing legal consequences because, for example, the notice turns a defendant's unwitting actions into intentional ones."); see also Fed. R. Evid. 201(b)(2) (allowing judicial notice of facts from "sources whose accuracy cannot reasonably be questioned"). And as the panel opinion notes, the filing of such a complaint, though later voluntarily dismissed, has formed the basis for declaratory judgment jurisdiction where the initial defendant later brings a validity challenge: the initial action by the patentee may establish the necessary case or controversy for the later action. See TransWeb, LLC v. 3M Innovative Props. Co. ,
Another continuing effect is evident in the context of
Similarly, in Flowers v. Secretary of the Department of Health and Human Services , which involved a Vaccine Act provision barring certain benefits if a plaintiff had certain related actions pending, this court held that the bar applied even after the other actions were voluntarily dismissed without prejudice.
C
In short, the background law on the nullification effect of a voluntary, without-prejudice dismissal is a mixed bag, and it does not state a near-monolithic rule with only aberrational exceptions. Some effects are nullified, some not. More particularly, it is anything but established-in fact, the Director has acknowledged the absence of any authority holding-that such a dismissal nullifies the legal effect at issue here: a clock-starting effect prescribed by statute. In these circumstances, I conclude, there is no basis in the asserted background law for overriding the plain meaning of § 315(b).
II
When the Director moves beyond his argument about background law, he presents nothing to indicate a clear congressional intent contrary to the plain meaning. Legislative history indications of congressional policy at most establish that § 315(b) is generally based on an assessment of the period suitable for a formally accused infringer (or privies or real parties in interest) to shape any IPR petition after formally receiving notice of a patentee's charges of infringement, with the patentee and district courts thereafter given repose against IPR petitions filed by that accused infringer (or privies or real parties in interest). See 157 Cong. Rec. S5429 (daily ed. Sept. 8, 2011) (statement of Sen. Kyl) (stating that the " section 315(b) deadline afford[s] defendants a reasonable opportunity to identify and understand the patent claims that are relevant to the litigation"); H.R. Rep. No. 112-98, at 48 (2011), reprinted in 2011 U.S.C.C.A.N. 67, 78 (ex-pressing concern about use of IPR proceedings as a "tool[ ] for harassment" by "repeated litigation and administrative attacks"). Those policies do nothing to undermine the plain meaning of the text: a bright-line rule of one year from service is a sensible prescription for serving those purposes.
*1348The dissent suggests that, when an action is voluntarily dismissed without prejudice, "the accused infringer is led to think that the controversy has dissipated" and "the notice function of the filing is effectively eliminated." Dissent at 1354. Those suggestions, even if accepted on their own terms, do not establish the kind of incoherence or absurdity that would support adoption of an exception for voluntary dismissals without prejudice. Congress can sensibly choose a bright-line rule based on underlying notice concerns. In any event, the suggestions are, I think, weak on their own terms. The point of a dismissal "without prejudice" is to preserve, rather than eliminate, the ability of the plaintiff to sue the defendant again on the same claim. No defendant, if not given something more, such as a covenant not to sue, can reasonably understand a without-prejudice dismissal to give repose as to future assertion of that very patent; no defendant in that situation is entitled "to think that the controversy has dissipated." Indeed, as already noted, the bringing of an infringement suit, even if later voluntarily dismissed, can play a role, even a decisive role, in establishing the case or controversy needed for the once-accused infringer to bring an action for a declaratory judgment.
The dissent and the Director (in the Luminara case to which the dissent refers) suggest another reason that the statutory purpose requires an exception to § 315(b) for service of a complaint that is later voluntarily dismissed without prejudice. Specifically, they suggest a possibility of manipulative abuse if § 315(b) is applied in accordance with its terms, without such an exception. Dissent at 1355-56; Oral Arg. at 19:45-20:22, Luminara Worldwide, LLC v. Iancu , Nos. 17-1629, -1631, -1633 (Fed Cir. Apr. 5, 2018). The scenario of abuse is this: A patent owner could sue many possible infringers, serve them with complaints, and then quickly and unilaterally dismiss all of those cases under Rule 41(a)(1)(A)(i), which applies before the filing of an answer or motion for summary judgment. Such a unilateral dismissal would start the one-year IPR clock for all such defendants under § 315(b), were there no exception. After the year had elapsed without any of those defendants filing an IPR challenge, the patent owner could again sue any of them on the same patent, without fear of an IPR initiation by any of them (or their privies or real parties in interest), though others could file IPR challenges.
This hypothesized scenario cannot support the suggested inference that Congress, to avoid such abuse, must have silently prescribed an exception to § 315(b) for voluntary dismissals without prejudice. Notably, the scenario is purely hypothetical, as far as we know. We have been pointed to no evidence that any patent owners have behaved in the way posited.
"[T]he Court rarely invokes [an absurd results] test to override unambiguous legislation." Barnhart v. SigmonCoal Co., Inc. ,
That is especially so because there are reasons to doubt the likely significance of the hypothesized scenario even beyond the fact that it has not yet shown up in reality. The scenario posits that the initially sued defendants, although already sued once on the patent, would decide to rely on the belief that they are substantially unlikely to be sued on it again-a premise that is dubious given that the initial dismissal was specifically without prejudice to the patentee's right to file again, there has been no covenant not to sue, and the posited legal stratagem for avoiding IPRs is apparent. Without such (doubtful) reliance, it is plausible that one or more of the defendants would initiate IPR challenges to the patent at issue within the one-year period, defeating the posited scheme of the patentee. The assumptions of legal ignorance, naiveté, or uniform fingers-crossed risk assessment seem strained.
The posited scenario also requires downplaying evident risks to the patentee of implementing the scheme. By suing many defendants in the first place, the patentee would be expanding the pool of persons objectively threatened by the patent, which would seem to increase the likelihood of an early IPR challenge and to lower the cost of an IPR for any individual defendant if the defendants file jointly. That risk to the patentee further diminishes the likelihood of the abuse scenario. So does the risk that the patentee would face sanctions-in the initial litigation or later litigation-for acting as posited in the scenario. See Chambers v. NASCO, Inc. ,
Finally, and in any event, the hypothetical abuse scenario cannot support adoption of the particular judicial modification of § 315(b)'s plain terms proposed by the Director-which is a gross mismatch for the abuse scenario. The suggested exception to § 315(b) would go far beyond dismissals under Rule 41(a)(1)(A)(i), which are the only ones the plaintiff can effectuate unilaterally. The suggested exception would also cover voluntary, without-prejudice dismissals under Rule 41(a)(1)(A)(ii) -which are within the control of the defendant (later petitioner)-and under Rule 41(a)(2) -which are within the control of the court. Unilateral manipulation is not possible under those provisions: for all of those dismissals, the defendant and the court have power to protect against the posited abuse. (The present case involved a non-unilateral dismissal.) There is no basis for inferring, or adopting, a nontextual exception that extends far beyond a very limited scenario of merely hypothetical potential abuse.
* * *
In sum, I think that the statutory issue in this case falls within the principle that "where the language of an enactment is clear, and construction according to its terms does not lead to absurd or impracticable consequences, the words employed are to be taken as the final expression of the meaning intended."
*1350United States v. Mo. Pac. R.R. Co. ,
Dyk, Circuit Judge, joined by Lourie, Circuit Judge, dissenting.
The en banc issue in this case is whether the time bar of
Section 315(b) provides that "inter partes review may not be instituted if the petition requesting the proceeding is filed more than 1 year after the date on which the petitioner ... is served with a complaint alleging infringement of the patent." In our view, the Board's interpretation of the statute was correct, and section 315(b)'s time-bar should not apply when the underlying suit has been voluntarily dismissed without prejudice. We reach this conclusion for three reasons.
First, the panel opinion relies on the language of section 315(b) as being unambiguous, because, on its face, it does not exclude voluntary dismissals without prejudice. But, the meaning of "service of a complaint" is not on its face unambiguous. In closely comparable circumstances, the Supreme Court has held that it is necessary to look beyond the language, to the context and purpose of the statute. Kasten v. Saint-Gobain Performance Plastics Corp. , involved language in the Fair Labor and Standards Act (the "Act").
This situation is similar. In this context, the concept of service and filing seem to be equivalent. Section 315(b)'s phrase, "served with a complaint," is almost the same as the phrase "filed any complaint" at issue in Kasten . In Kasten , the issue was whether the complaint could include written and oral complaints, whereas the issue here is whether the complaint could *1351include a complaint later voluntarily dismissed without prejudice. Both are situations where "[t]he definition of words in isolation," is not "necessarily controlling," or even clear in terms of ordinary meaning. Dolan v. U.S. Postal Serv. ,
Second, a well-established background principle supports the PTO's reading of the statute. Courts have typically treated voluntary dismissals without prejudice as restoring the parties to the situation that existed before the case had ever been brought. In Bonneville Assocs. v. Barram ,
Similarly, in Graves v. Principi ,
dismissal of his initial appeal meant that Mr. Graves was barred from appealing the January 18, 1998 decision of the Board .... because, in light of the dismissal, he was in the same situation that he would have been in if he had never filed a notice of appeal, and by June 18, 1998, the date of the dismissal, the 120-day period under section 7266(a) for filing a notice of appeal had passed.
Id . at 1356. We reiterated that "[t]he dismissal of an action without prejudice leaves the parties as though the action had never been brought." Id .
Other circuits have likewise treated dismissals without prejudice as restoring the parties to the exact situation as if the original complaint had never been filed. See, e.g. , Norman v. Ark. Dep't of Educ .,
This rule has been applied in the closely comparable situation where a complaint dismissed without prejudice is held not to toll the statute of limitations, absent some evidence of a contrary legislative intent. See Willard v. Wood ,
The panel opinion suggests that this treatment of dismissals without prejudice is not a uniform rule and that "for many ... purposes, the dismissed action continues to have legal effect." Panel Op. 23. This is not correct. The panel indicates only two such claimed instances: (1) where a dismissal without prejudice does not bar *1353an award of costs as a sanction for a frivolous filing, see, e.g. , Cooter & Gell v. Hartmarx Corp. ,
We ruled in Abbott Laboratories v. TorPharm, Inc. ,
The importance of assessing the statutory language in the light of background principles is confirmed by Keene Corp. v. United States ,
Third, typically where there is an intention to depart from the normal treatment of voluntary dismissals without prejudice, the statute or the rule says so explicitly, there is a clear legislative decision to depart from the usual rule, or, as in Keene , there is a conflicting background principle. For example, Rule 41 itself states that we should depart from the normal rule when "the plaintiff previously dismissed any federal- or state-court action based on or including the same claim, [in which case] a notice of dismissal operates as an adjudication on the merits."
*1354Fed. R. Civ. P. 41(a)(1)(B). Similarly, in Flowers v. Secretary of the Department of Health & Human Services ,
Likewise, in Jenkins v. Village of Maywood ,
provides that if an action is voluntarily dismissed by the plaintiff, "then, whether or not the time limitation for bringing such action expires during the pendency of such action, the plaintiff ... may commence a new action within one year or within the remaining period of limitation, whichever is greater ... after the action is voluntarily dismissed by the plaintiff[.]"
The fact is that Congress did not include any language in section 315(b) addressing voluntary dismissals without prejudice and here, contrary to the panel opinion, there is no legislative history supporting an opposing interpretation, suggesting that Congress intended to follow the usual rule, that such dismissals render the complaint a nullity.
Finally, the purpose of the statute, as reflected in the legislative history, supports reading section 315(b)'s time bar as being inapplicable to voluntary dismissals without prejudice. One purpose of the statute was to require that the IPR petitioner file the IPR promptly after receiving notice of the patentee's claims through the filing of the infringement action. The panel opinion notes that Senator Kyl explained that the "315(b) deadline afford[s] defendants a reasonable opportunity to identify and understand the patent claims that are relevant to the litigation." 157 Cong. Rec. S5429 (daily ed. Sept. 8, 2011) (statement of Sen. Kyl).
While the panel opinion argues that the notice function supports their interpretation, in fact, the notice function would not be vindicated if the underlying complaint were voluntarily dismissed without prejudice. When an action is filed, and then later voluntarily dismissed, the accused infringer is led to think that the controversy has dissipated. In other words, the notice *1355function of the filing is effectively eliminated by the dismissal without prejudice.
As discussed earlier, in the comparable situation involving statutes of limitations, while the original filing provides notice to the defendant,
The statute was designed to give the petitioner a full year after receiving notice of the filing of the action to file the IPR, so that the potential petitioner could be fully aware of the claims and products at issue in the infringement litigation. The one year time-bar was intended to go into effect only after the defendant knows "which claims will be relevant and how those claims are alleged to read on the defendant's products." 157 Cong. Rec. S5429 (daily ed. 2011) (statement of Sen. Kyl). Despite the assertions to the contrary (Panel Op. 15-17), this purpose is thwart-ed by an early voluntary dismissal without prejudice. In that situation, the defendant is unlikely to have received the contemplated information, and that information will be of limited value, as the defendant has been led to believe that the underlying infringement action will no longer continue.
So too, one of the purposes of section 315(b) in setting a one year time period was to bar the filing of an IPR when, typically, the district court action would have already consumed the time and attention of the court and parties. We have pointed out that in the inter partes review context, the "legislative history confirms ... 'Congress's desire to enhance the role of the PTO and limit the burden of litigation on courts and parties.' " Murata Mach. USA, Ltd. v. Daifuku Co. ,
Finally, the purposes of section 315(b) will be defeated if the patentee plaintiff is allowed to manipulate the filing of infringement actions in order to bar a future IPR challenge. Indeed, if dismissals without prejudice did not nullify the underlying complaint, patent owners would have an incentive to file suits alleging infringement and subsequently voluntarily dismiss these suits without prejudice after service of a complaint. Such actions would effectively begin the one year clock for the accused infringer to file an IPR, even when there was no longer an underlying infringement action. Congress could not have intended to provide a mechanism for such manipulation.
Thus, we conclude that, contrary to the en banc holding, the section 315(b) time-bar should not apply when the underlying complaint alleging infringement has been voluntarily dismissed without prejudice.
See, e.g. , Jorge v. Rumsfeld ,
Robinson v. Willow Glen Acad. ,895 F.2d 1168 , 1169 (7th Cir. 1990) (holding that a tolling provision under Wisconsin state law that was tied to the "commencement of an action" did not apply if that action was then voluntarily dismissed under Rule 41(a)(2) ); Davis v. Smith's Transfer, Inc. ,841 F.2d 139 , 140 (6th Cir. 1988) (per curiam) (no tolling of statute of limitations based on earlier suit dismissed under Rule 41(a) ); Dupree v. Jefferson ,666 F.2d 606 , 610-11 (D.C. Cir. 1981) (taking note of the "rule" "that a statute of limitations is not tolled during pendency of an action voluntarily dismissed without prejudice"); Curtis v. United Transp. Union ,648 F.2d 492 , 495 (8th Cir. 1981) (stating "the rule that the entry of a voluntary dismissal without prejudice leaves the action as if suit had never been brought for purposes of the statute of limitations"); Humphreys v. United States ,272 F.2d 411 , 412 (9th Cir. 1959) (holding that a voluntary dismissal under Rule 41(a)(2) does not toll the statute of limitations under the Federal Tort Claims Act).
See also Willard v. Wood ,164 U.S. 502 , 523,17 S.Ct. 176 ,41 L.Ed. 531 (1896) (noting "[t]he general rule in respect of limitations ... that if ... [an] action abates or is dismissed, and, during the pendency of the action, the limitation runs, the remedy is barred"); 8 Moore's Fed. Prac. Civ. § 41.33(6)(d) (2018); 9 Charles A. Wright & Arthur R. Miller, Fed. Prac. & Proc. Civ. § 2367 (3d ed. 2018).
See, e.g. , In re Matthews ,
See, e.g. , Harvey Specialty & Supply, Inc. v. Anson Flowline Equip. Inc. ,
Several legislators opposed § 315(b) in the House bill for exactly that reason, explaining that § 315(b)'s bright-line "12-month deadline" is not "tied to substantive progress in patent litigation, such as the entry of an order by the district court construing the relevant patent claims," and arguing that a strict 12-month deadline is "arbitrary" as it "does not account for the complexity of many patent cases that can encompass dozens of patents and defendants and hundreds of separate patent claims." H.R. Rep. No. 112-98, at 164-65. A proposed amendment offered by one of those legislators to tie the deadline to entry of a claim construction order failed. Id. at 58.
Contrary to the panel opinion (Panel Op. 14), this issue was not addressed, much less resolved, in the en banc Wi-Fi opinion. See Wi-Fi One, LLC v. Broadcom Corp. ,
See also Harvey Specialty & Supply, Inc. v. Anson Flowline Equip. Inc .,
Both the panel opinion and Judge Taranto's concurring opinion rely on section 315(a)(2)(C) as supporting the en banc holding showing that Congress made a deliberate choice not to refer to voluntary dismissals. Panel Op. 15; Concurring Op. 1342-43. Section 315(a)(2)(C) simply provides that when an IPR has been instituted a later filed court action must be stayed until the court action is "dismissed." It is difficult to see how this can be read as congressional rejection in section 315(b) of the usual rule concerning the consequences of a voluntary dismissal.
Nor is this like Keene , discussed above, in which another background principle is predominant.
See Crown, Cork & Seal Co. v. Parker ,
Reference
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- CLICK-TO-CALL TECHNOLOGIES, LP, Appellant v. INGENIO, INC., YELLOWPAGES.COM, LLC, Appellees Andrei Iancu, Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office, Intervenor
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