Natural Alternatives Int'l, Inc. v. Iancu
Opinion
*1377
Woodbolt Distributors, LLC ("Woodbolt") requested that the United States Patent and Trademark Office ("PTO") reexamine
BACKGROUND
Between 1997 and 2011, NAI filed a chain of eight U.S. patent applications generally directed to increasing athletes' endurance. The eighth application matured into the '381 patent, the subject of this appeal. NAI filed the first application in the chain on August 12, 1997, and within five years, it had filed three more. In each such continuing application, NAI included a priority benefit statement under
I
On September 2, 2008, just four days after filing its sixth application, NAI amended the "Cross Reference of Related Applications" section of the fifth application to delete the benefit claim to the fourth through the first applications and to claim priority under
*1378
8035;
see
II
District court litigation involving the '381 patent commenced between NAI and Woodbolt in December 2011. 2 In May 2012, during that proceeding, Woodbolt sought inter partes reexamination of the asserted patent claims. 3 The request alleged that "the asserted claim to priority of the '381 Patent is defective" because the "applicants deliberately and expressly terminated their claim to the priority of the first four applications[,]" which thus "broke[ ] the chain of priority between the Fourth and Fifth Applications." J.A. 45-46. During reexamination, NAI did not dispute that it had waived priority to the fourth through the first applications in its fifth application. J.A. 971. But it insisted that the sixth application maintained priority back to the first application because NAI did not amend the "Cross Reference of Related Applications" in the sixth application. According to NAI, it was irrelevant what happened to the fifth application once the sixth application became entitled to the first application's filing date. J.A. 975. Unpersuaded, the examiner finally rejected the reexamined claims in view of prior art including the '596 patent (i.e., the patent that issued from the first application), and then closed prosecution. 4 J.A. 1210, 1226.
NAI appealed the examiner's decision to the Board. The Board determined that when NAI filed the eighth application, "[t]he fifth application [was] not entitled to the benefit of the fourth application since the specific reference to the fourth application was deleted in the fifth." J.A. 13. Because the eighth application claimed priority to the first application via the fifth application, the Board determined that the eighth application (and thus the '381 patent ) was also not entitled to the benefit of the fourth through the first applications. See J.A. 16. The Board issued a final written determination affirming the examiner's rejections and denied NAI's request for rehearing.
DISCUSSION
NAI challenges the Board's priority determination. 5 According to NAI, the Board erred by denying the '381 patent priority back to the first U.S. application in the *1379 priority chain under § 120. Appellant's Br. 2-3.
I
Entitlement to priority under § 120 is a legal determination based on underlying fact findings.
See
In re Owens
,
II
NAI argues that the Board erred by denying the '381 patent priority back to the first U.S. application in the priority chain. See Appellant's Br. 46-47. Its argument proceeds in four parts. First, NAI contends that priority to the first application "vested" with the sixth application once the sixth application met all the criteria of § 120. See id. at 31-34. Second, NAI claims that this is so-even though an intervening application waived priority to the first application-because a waiver of priority is limited to the instant application and does not extend to subsequent applications. Id. at 35-36. Third, in NAI's view, the Board reached a contrary determination because the Board erroneously viewed priority as a single growing chain rather than multiple fixed chains. Appellant's Br. 34, 38. Fourth, such a view, according to NAI, "limits an applicant's ability to seek protection" when "amending [a] priority claim to gain [patent] term." Id. at 38. We address each part of NAI's argument in turn.
A
NAI first argues that the Board erred in its determination that "priority does not 'vest.' "
Id.
at 33. According to NAI, "[p]riority properly vested by virtue of meeting all the requirements of § 120."
Id
. at 34. NAI asserts that
Loughlin v. Ling
dictates this conclusion because it states that "[p]rovided the criteria in § 120 are met, applications 'shall,' without exception, receive the benefit of the earlier filing date."
Section 120 of title 35 sets forth requirements for a U.S. patent application to claim priority based on an earlier-filed nonprovisional application.
See
Medtronic CoreValve
,
An application for patent for an invention [1] disclosed in the manner provided by section 112(a) ... [2] filed by an inventor or inventors named in the previously filed application shall have the same effect, as to such invention, as though filed on the date of the prior application, [3] if filed before the patenting or abandonment of or termination of proceedings on the first application or on an application similarly entitled to the benefit of the filing date of the first application and [4] if it contains or is amended to contain a specific reference to the earlier filed application. No application shall be entitled to the benefit of an earlier filed application under this section unless an amendment containing *1380 the specific reference to the earlier filed application is submitted at such time during the pendency of the application as required by the Director. The Director may consider the failure to submit such an amendment within that time period as a waiver of any benefit under this section.
NAI's "vesting" argument conflates properly claiming priority and demonstrating entitlement to priority. Patent claims "are not entitled to an earlier priority date merely because the patentee claims priority."
In re NTP, Inc.
,
Furthermore, examiners and adjudicators cannot be expected to scrutinize the prosecution history of an application and each parent application to determine whether the application would have met § 120 's requirements at any point during its pendency.
See, e.g.
,
Droplets,
In re
Janssen Biotech, Inc.
is instructive here.
And we do so again here. The Board determined that when filed, the eighth application did not meet the "specific reference" requirement of § 120 as to the filing date of the first application. J.A. 11-12. That was so, according to the Board, because the eighth application claimed the benefit of the first application's filing date by way of the fifth application, and NAI had amended the fifth application to claim priority to only the 2003 provisional application. See id . In other words, because the fifth application lacked priority to the first application, the eighth application's priority claim to the first application (via the fifth application) did not satisfy all of § 120 's requirements. The Board, therefore, did not err in determining that the '381 patent was not entitled to claim the benefit of the filing date of the first application under § 120, as the priority claim in the '381 patent was defective from the start.
B
Next, NAI avers that although "a claimed benefit to an earlier filing date may later be altered in the instant application according to MPEP § 201.11, ... that alteration applies only to the instant application-not other, ... applications."
6
Appellant's Reply Br. 15. According to the MPEP, which is "commonly relied upon as a guide to patent attorneys and patent examiners on procedural matters,"
Litton Sys., Inc. v. Whirlpool Corp.
,
Although the Board did not explicitly address this argument, the PTO responds that NAI reads MPEP § 201.11"too narrowly." Intervenor's Br. 34-35. Specifically, the PTO notes that "the [MPEP] passage does not state that cancellation of a benefit claim may be considered a waiver in only the instant application." Id. at 35. The PTO, applying this broader interpretation, asserts that "the intentional cancellation *1382 of a benefit claim pursuant to MPEP § 201.11 can similarly affect another application's entitlement to a benefit claim." Id . We agree with the PTO.
As an initial matter, we note that the MPEP "does not have the force of law[,]"
Molins PLC v. Textron, Inc.
,
C
Further, NAI summarily concludes that "[r]ather than the dogmatic view of seeing additional continuation filings merely adding an additional link in a single growing chain, § 120, and the case law, must be interpreted as providing for a new priority chain being created at each new filing." Appellant's Br. 34.
NAI, however, neither explains why § 120 compels this interpretation of priority claims nor provides any case law to support its conclusion. Nor does NAI provide any argument to undermine the long-standing interpretation of priority as a single chain, growing with each additional continuation. The Supreme Court has previously explained that under § 120, parent and continuing applications "are to be considered as parts of the same transaction, and both as constituting one continuous application, within the meaning of the law."
Godfrey v. Eames
,
D
Finally, NAI argues that the Board's determination impermissibly "limits an applicant's ability to seek protection" when "amending the priority claim to gain [patent] term." See Appellant's Br. 38. NAI's argument suggests that NAI need not trade the benefit of an earlier filing date in order to gain patent term. See id. at 36 (arguing that by waiving priority in the parent application, it was not waiving priority in the child application). Although the Board did not explicitly address this argument, the PTO asserts that because NAI "chose to delete the benefit claim in its fifth U.S. application and thereby obtained a longer term for the patent issuing therefrom[,]" a "consequence of this voluntary action is that [NAI's] sixth through eighth U.S. applications would no longer be entitled to the benefit of the filing date of its fourth through first U.S. applications." Intervenor's Br. 14. Again, we agree with the PTO.
*1383
Continuation-in-part ("CIP") applications, like the fifth application in this case, uniquely highlight the trade-off between priority and patent term.
7
In CIP applications, priority is assessed on a claim-by-claim basis.
Transco Prods., Inc. v. Performance Contracting, Inc.
,
An uncommon but permissible way for patent applicants to avoid losing term on claims that recite new matter is to disclaim the benefit of earlier filing dates.
See
MPEP §§ 211.02(a)(III). Thus, by deleting the benefit claim in a CIP application, the twenty-year patent term of the patent issuing from that CIP application would extend from the CIP application's filing date instead of the parent application's earlier filing date.
See
id
. Of course, once the CIP application adopts the later filing date, the CIP application and its children become vulnerable to rejections based on a larger pool of prior art-including former parent applications in some cases.
See, e.g.
,
Santarus, Inc. v. Par Pharm., Inc.
,
Under NAI's theory of priority, however, NAI could gain patent term on its fifth application while simultaneously shielding its child applications (including the eighth application) from their former parents. For the reasons discussed herein, NAI cannot have it both ways.
III
We have considered NAI's remaining arguments and find them unpersuasive. For the foregoing reasons, the Board's final decision invalidating the challenged claims is affirmed.
AFFIRMED
Each U.S. application in the chain also included a priority benefit statement under
Woodbolt and NAI have since settled their lawsuit concerning the '381 patent. See Appellant's Br. 1.
Under the Leahy-Smith America Invents Act,
inter partes
review replaced
inter partes
reexamination as the avenue for third-party patentability challenges in the PTO.
See
Pub. L. No. 112-29, § 6(a),
The eighth application is a "Continuation of a Continuation of the Sixth Application/Patent[.]" See Appellant's Br. 26-27; Intervenor's Br. 3-5.
NAI's challenge to the Board's finding of anticipation relies entirely on the priority date issue. See Appellant's Br. 3 n.2, 46-47.
Although outdated, we refer to MPEP § 201.11 to remain consistent with Appellant's briefs. See, e.g. , Appellant's Reply Br. 7. The subject matter of § 201.11, however, now exists in MPEP § 211.
"A continuation-in-part is an application filed during the lifetime of an earlier nonprovisional application ..., repeating some substantial portion or all of the earlier nonprovisional application and
adding matter not disclosed
in the said earlier nonprovisional application."
Univ. of W. Va. v. VanVoorhies
,
As of June 8, 1995,
see
Uruguay Round Agreements Act, Pub. L. No. 103-465, § 532,
Reference
- Full Case Name
- NATURAL ALTERNATIVES INTERNATIONAL, INC., Appellant v. Andrei IANCU, Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office, Intervenor
- Cited By
- 7 cases
- Status
- Published