Thryv, Inc. v. Click-To-Call Technologies, LP
Thryv, Inc. v. Click-To-Call Technologies, LP
Opinion
*1370 Inter partes review is an administrative process in which a patent challenger may ask the U.S. Patent and Trademark Office (PTO) to reconsider the validity of earlier granted patent claims. This case concerns a statutorily prescribed limitation of the issues a party may raise on appeal from an inter partes review proceeding.
When presented with a request for inter partes review, the agency must decide whether to institute review.
In this case, the agency instituted inter partes review in response to a petition from Thryv, Inc., resulting in the cancellation of several patent claims. Patent owner Click-to-Call Technologies, LP, appealed, contending that Thryv's petition was untimely under § 315(b).
The question before us: Does § 314(d)'s bar on judicial review of the agency's decision to institute inter partes review preclude Click-to-Call's appeal? Our answer is yes. The agency's application of § 315(b)'s time limit, we hold, is closely related to its decision whether to institute inter partes review and is therefore rendered nonappealable by § 314(d).
I
The Patent and Trademark Office has several ways "to reexamine-and perhaps cancel-a patent claim that it had previously allowed."
Cuozzo Speed Technologies
,
LLC
v.
Lee
, 579 U.S. ----, ----,
For inter partes review to proceed, the agency must agree to institute review. § 314. Any person who is not the patent's owner may file a petition requesting inter partes review. § 311(a). The patent owner may oppose institution of inter partes review, asserting the petition's "failure ... to meet any requirement of this chapter." § 313.
*1371 The AIA sets out prerequisites for institution. Among them, "[t]he Director may not authorize an inter partes review to be instituted unless the Director determines ... that there is a reasonable likelihood that the petitioner would prevail with respect to at least 1 of the claims challenged in the petition." § 314(a). Most pertinent to this case, "[a]n 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, real party in interest, or privy of the petitioner is served with a complaint alleging infringement of the patent." § 315(b).
After receiving the petition and any response, the PTO "Director shall determine whether to institute an inter partes review under this chapter." § 314(b). The Director has delegated institution authority to the Patent Trial and Appeal Board (Board).
Upon electing to institute inter partes review, the Board conducts a proceeding to evaluate the challenged claims' validity. See § 316. At the conclusion of the proceeding-if review "is instituted and not dismissed"-the Board "issue[s] a final written decision with respect to the patentability of" the challenged claims. § 318(a). "A party dissatisfied with the final written decision ... may appeal the decision" to the Court of Appeals for the Federal Circuit. § 319.
II
Respondent Click-to-Call owns a patent relating to a technology for anonymous telephone calls,
In opposition, Click-to-Call urged that § 315(b) barred institution of inter partes review because Thryv filed its petition too late. Click-to-Call pointed to an infringement suit filed in 2001, which ended in a voluntary dismissal without prejudice. 4 In Click-to-Call's view, that 2001 suit started § 315(b)'s one-year clock, making the 2013 petition untimely.
The Board disagreed. Section 315(b) did not bar the institution of inter partes review, the Board concluded, because a complaint dismissed without prejudice does not trigger § 315(b)'s one-year limit. Finding no other barrier to institution, the Board decided to institute review. After proceedings on the merits, the Board issued a final written decision reiterating its rejection of Click-to-Call's § 315(b) argument and canceling 13 of the patent's claims as obvious or lacking novelty.
Click-to-Call appealed, challenging only the Board's determination that § 315(b) did not preclude inter partes review. The Court of Appeals dismissed the appeal for lack of jurisdiction, agreeing with Thryv and the Director (who intervened on appeal) that § 314(d)'s bar on appeal of the institution decision precludes judicial review
*1372
of the agency's application of § 315(b). Citing our intervening decision in
Cuozzo
, see
infra
, at 1372 - 1373, we granted certiorari, vacated the judgment, and remanded.
Click-to-Call Technologies, LP
v.
Oracle Corp.
, 579 U.S. ----,
Thereafter, in another case, the en banc Federal Circuit held that "time-bar determinations under § 315(b) are appealable" notwithstanding § 314(d).
Wi-Fi One, LLC v. Broadcom Corp.
,
Judge Hughes, joined by Judges Lourie, Bryson, and Dyk, dissented, expressing a position that today's dissent characterizes as "extraordinary."
Post
, at 1380 - 1381. Those judges concluded that § 314(d) conveys Congress' "clear and unmistakable" "intent to prohibit judicial review of the Board's [inter partes review] institution decision."
Wi-Fi One
,
In light of its en banc decision in Wi-Fi One , the Court of Appeals granted panel rehearing in this case. Treating the Board's application of § 315(b) as judicially reviewable, the panel's revised opinion held that the Board erred by instituting review. The petition for inter partes review here was untimely, the Court of Appeals held, because the 2001 infringement complaint, though dismissed without prejudice, started the one-year clock under § 315(b). 5 The court therefore vacated the Board's final written decision, which had invalidated 13 of Click-to-Call's claims for want of the requisite novelty and nonobviousness, and remanded with instructions to dismiss.
We granted certiorari to resolve the reviewability issue, 587 U.S. ----,
III
A
To determine whether § 314(d) precludes judicial review of the agency's *1373 application of § 315(b)'s time prescription, we begin by defining § 314(d)'s scope. Section 314(d)'s text renders "final and nonappealable" the "determination by the Director whether to institute an inter partes review under this section." § 314(d) (emphasis added). That language indicates that a party generally cannot contend on appeal that the agency should have refused "to institute an inter partes review."
We held as much in
Cuozzo
. There, a party contended on appeal that the agency should have refused to institute inter partes review because the petition failed § 312(a)(3)'s requirement that the grounds for challenging patent claims must be identified "with particularity." 579 U.S., at ----, 136 S.Ct., at 2139 (internal quotation marks omitted). This "contention that the Patent Office unlawfully initiated its agency review is not appealable," we held, for "that is what § 314(d) says."
Id.
, at ----, 136 S.Ct., at 2139. Section 314(d), we explained, "preclud[es] review of the Patent Office's institution decisions" with sufficient clarity to overcome the " 'strong presumption' in favor of judicial review."
Id.
, at ---- - ----, 136 S.Ct., at 2140-2141 (quoting
Mach Mining, LLC v. EEOC
,
We reserved judgment in Cuozzo , however, on whether § 314(d) would bar appeals reaching well beyond the decision to institute inter partes review. 579 U.S., at ----, 136 S.Ct. at 2141-2142. We declined to "decide the precise effect of § 314(d) on," for example, "appeals that implicate constitutional questions." Ibid. Instead, we defined the bounds of our holding this way: "[O]ur interpretation applies where the grounds for attacking the decision to institute inter partes review consist of questions that are closely tied to the application and interpretation of statutes related to the Patent Office's decision to initiate inter partes review." Ibid.
B
We therefore ask whether a challenge based on § 315(b) ranks as an appeal of the agency's decision "to institute an inter partes review." § 314(d). We need not venture beyond Cuozzo 's holding that § 314(d) bars review at least of matters "closely tied to the application and interpretation of statutes related to" the institution decision, 579 U.S., at ----, 136 S.Ct., at 2141, for a § 315(b) challenge easily meets that measurement.
Section 315(b)'s time limitation is integral to, indeed a condition on, institution. After all, § 315(b) sets forth a circumstance in which "[a]n inter partes review may not be instituted." Even Click-to-Call and the Court of Appeals recognize that § 315(b) governs institution. See Brief for Respondent Click-to-Call 1 (§ 315(b) is "a clear limit on the Board's institution authority");
Wi-Fi One
,
Because § 315(b) expressly governs institution and nothing more, a contention that a petition fails under § 315(b) is a contention that the agency should have refused "to institute an inter partes review." § 314(d). A challenge to a petition's timeliness under § 315(b) thus raises "an ordinary dispute about the application of " an institution-related statute. Cuozzo , 579 U.S., at ----, 136 S.Ct., at 2139. In this case as in Cuozzo , therefore, § 314(d)
*1374 overcomes the presumption favoring judicial review. 6
C
The AIA's purpose and design strongly reinforce our conclusion. By providing for inter partes review, Congress, concerned about overpatenting and its diminishment of competition, sought to weed out bad patent claims efficiently. See id ., at ----, 136 S.Ct., at 2139-2140 ; H. R. Rep. No. 112-98, pt. 1, p. 40 (2011) ("The legislation is designed to establish a more efficient and streamlined patent system that will improve patent quality and limit unnecessary and counterproductive litigation costs."). 7
Allowing § 315(b) appeals would tug against that objective, wasting the resources spent resolving patentability and leaving bad patents enforceable. A successful § 315(b) appeal would terminate in vacatur of the agency's decision; in lieu of enabling judicial review of patentability, vacatur would unwind the agency's merits decision. See Cuozzo , 579 U.S., at ----, 136 S.Ct., at 2139-2140. And because a patent owner would need to appeal on § 315(b) untimeliness grounds only if she could not prevail on patentability, § 315(b) appeals would operate to save bad patent claims. This case illustrates the dynamic. The agency held Click-to-Call's patent claims invalid, and Click-to-Call does not contest that holding. It resists only the agency's institution decision, mindful that if the institution decision is reversed, then the agency's work will be undone and the canceled patent claims resurrected.
Other features of the statutory design confirm that Congress prioritized patentability over § 315(b)'s timeliness requirement. A petitioner's failure to satisfy § 315(b) does not prevent the agency from conducting inter partes review of the challenged patent claims; the agency can do so at another petitioner's request. § 311(a). Nor does failure to satisfy § 315(b) prevent the original initiator from participating on the merits; the § 315(b)-barred party can join a proceeding initiated by another petitioner. § 315(b), (c). And once inter partes review is instituted, the agency may issue a final written decision even "[i]f no petitioner remains in the inter partes review." § 317(a). It is unsurprising that a statutory scheme so consistently elevating resolution of patentability above a petitioner's compliance with § 315(b) would exclude § 315(b) appeals, thereby preserving the Board's adjudication of the merits.
Judicial review of § 315(b) rulings, moreover, would do little to serve other statutory goals. The purpose of § 315(b), *1375 all agree, is to minimize burdensome overlap between inter partes review and patent-infringement litigation. Brief for Petitioner 24; Brief for Federal Respondent 36; Brief for Respondent Click-to-Call 37. Judicial review after the agency proceedings cannot undo the burdens already occasioned. Nor are § 315(b) appeals necessary to protect patent claims from wrongful invalidation, for patent owners remain free to appeal final decisions on the merits. § 319.
IV
Click-to-Call advances a narrower reading of § 314(d). In Click-to-Call's view, which the dissent embraces, post , at 1380 - 1387, the bar on judicial review applies only to the agency's threshold determination under § 314(a) of the question whether the petitioner has a reasonable likelihood of prevailing. Section 314(d) addresses the "determination by the Director whether to institute inter partes review under this section " (emphasis added), and, Click-to-Call maintains, § 314(a) contains "the only substantive determination referenced in" the same section as § 314(d). Brief for Respondent Click-to-Call 16. This interpretation, Click-to-Call argues, supplies a clear rule consonant with the presumption favoring judicial review. Cf. supra , at 1371 - 1372 (Federal Circuit's en banc Wi-Fi One decision).
Cuozzo is fatal to Click-to-Call's interpretation. Section 314(d)'s review bar is not confined to the agency's application of § 314(a), for in Cuozzo we held unreviewable the agency's application of § 312(a)(3). 579 U.S., at ---- - ----, 136 S.Ct., at 2139-2140. Far from limiting the appeal bar to § 314(a) and "nothing else" as Click-to-Call urges, Brief for Respondent 29, the Court's opinion in Cuozzo explained that the bar extends to challenges grounded in "statutes related to" the institution decision. 579 U.S., at ----, 136 S.Ct., at 2141.
The text of § 314(d) offers Click-to-Call no support. The provision sweeps more broadly than the determination about whether "there is a reasonable likelihood that the petitioner would prevail." § 314(a). Rather, it encompasses the entire determination "whether to institute an inter partes review." § 314(d).
And § 314(d) refers not to a determination under subsection (a), but to the determination "under this section." That phrase indicates that § 314 governs the Director's institution of inter partes review. Titled "Institution of inter partes review," § 314 is the section housing the command to the Director to "determine whether to institute an inter partes review," § 314(b). Thus, every decision to institute is made "under" § 314 but must take account of specifications in other provisions-such as the § 312(a)(3) particularity requirement at issue in Cuozzo and the § 315(b) timeliness requirement at issue here. Similar clarifying language recurs throughout the AIA. See, e.g. , § 315(c) (referring to the Director's determination regarding "the institution of an inter partes review under section 314 " (emphasis added)); § 314(b) (referring to "a petition filed under section 311 ," the section authorizing the filing of petitions (emphasis added)); § 314(b)(1) (referring to "a preliminary response to the petition under section 313 ," the section authorizing the filing of preliminary responses to petitions (emphasis added)).
If Congress had intended Click-to-Call's meaning, it had at hand readymade language from a precursor to § 314(d) : "A determination by the Director under
subsection (a)
shall be final and non-appealable."
Click-to-Call doubts that Congress would have limited the agency's institution authority in § 315(b) without ensuring judicial supervision. Congress entrusted the institution decision to the agency, however, to avoid the significant costs, already recounted, of nullifying a thoroughgoing determination about a patent's validity. See supra , at 1374 - 1375. That goal-preventing appeals that would frustrate efficient resolution of patentability-extends beyond § 314(a) appeals.
Click-to-Call also contends that we adopted its interpretation of § 314(d) in
SAS Institute Inc.
v.
Iancu
, 584 U.S. ----,
Click-to-Call homes in on a single sentence from
SAS Institute
's reviewability discussion: "
Cuozzo
concluded that § 314(d) precludes judicial review only of the Director's 'initial determination' under § 314(a) that 'there is a "reasonable likelihood" that the claims are unpatentable on the grounds asserted' and review is therefore justified."
*1377 V
Click-to-Call presses an alternative reason why the Board's ruling on its § 315(b) objection is appealable. The Board's final written decision addressed the § 315(b) issue, so Click-to-Call argues that it may appeal under § 319, which authorizes appeal from the final written decision. But even labeled as an appeal from the final written decision, Click-to-Call's attempt to overturn the Board's § 315(b) ruling is still barred by § 314(d). Because § 315(b)'s sole office is to govern institution, Click-to-Call's contention remains, essentially, that the agency should have refused to institute inter partes review. As explained, § 314(d) makes that contention unreviewable.
* * *
For the reasons stated, we vacate the judgment of the United States Court of Appeals for the Federal Circuit and remand the case with instructions to dismiss for lack of appellate jurisdiction.
It is so ordered.
APPENDIX OF KEY STATUTORY PROVISIONS
" Institution of inter partes review
"(a) THRESHOLD .-The Director may not authorize an inter partes review to be instituted unless the Director determines that the information presented in the petition filed under section 311 and any response filed under section 313 shows that there is a reasonable likelihood that the petitioner would prevail with respect to at least 1 of the claims challenged in the petition.
"(b) TIMING .-The Director shall determine whether to institute an inter partes review under this chapter pursuant to a petition filed under section 311 within 3 months after-
"(1) receiving a preliminary response to the petition under section 313; or
"(2) if no such preliminary response is filed, the last date on which such response may be filed.
"(c) NOTICE .-The Director shall notify the petitioner and patent owner, in writing, of the Director's determination under subsection (a), and shall make such notice available to the public as soon as is practicable. Such notice shall include the date on which the review shall commence.
*1378 "(d) NO APPEAL .-The determination by the Director whether to institute an inter partes review under this section shall be final and nonappealable."
" PATENT OWNER'S ACTION .-An 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, real party in interest, or privy of the petitioner is served with a complaint alleging infringement of the patent. The time limitation set forth in the preceding sentence shall not apply to a request for joinder under subsection (c)."
Justice GORSUCH, with whom Justice SOTOMAYOR joins as to Parts I, II, III, and IV, dissenting.
Today the Court takes a flawed premise-that the Constitution permits a politically guided agency to revoke an inventor's property right in an issued patent-and bends it further, allowing the agency's decision to stand immune from judicial review. Worse, the Court closes the courthouse not in a case where the patent owner is merely unhappy with the merits of the agency's decision but where the owner claims the agency's proceedings were unlawful from the start. Most remarkably, the Court denies judicial review even though the government now concedes that the patent owner is right and this entire exercise in property-taking-by-bureaucracy was forbidden by law.
It might be one thing if Congress clearly ordained this strange result. But it did not. The relevant statute, the presumption of judicial review, and our precedent all point toward allowing, not forbidding, inventors their day in court. Yet, the Court brushes past these warning signs and, in the process, carries us another step down the road of ceding core judicial powers to agency officials and leaving the disposition of private rights and liberties to bureaucratic mercy.
I
Our story stretches back to the 1990s, when Stephen DuVal invented a system for anonymizing telephone calls. Believing in the promise of his idea, Mr. DuVal hired an attorney to secure a patent and sought avenues to bring his invention to market. Initially, both efforts met with success. In 1998, Mr. DuVal was awarded a U.S. Patent, which he licensed to a company called InfoRocket.com, Inc.
But problems soon emerged. In 2001, InfoRocket accused Ingenio, Inc., a predecessor of today's petitioner Thryv, Inc., of infringing Mr. DuVal's patent. The case carried on in federal district court for more than a year before InfoRocket and Ingenio decided to merge. The companies then jointly persuaded the court to dismiss InfoRocket's lawsuit without prejudice.
Still, the quiet did not last long. Following the merger, the surviving entity-for simplicity, call it Thryv-sought to turn the tables on Mr. DuVal by asking the Patent Office to reconsider the validity of his patent in an ex parte reexamination. That agency-led process dragged on for four more years, and ended with a mixed verdict: The Patent Office canceled a few claims, but amended others and permitted Mr. DuVal to add some new ones too.
Even the ex parte reexamination wasn't enough to put the parties' disputes to rest. During the reexamination, Thryv terminated its license with Mr. DuVal and stopped paying him royalties. But it seems that Thryv continued using the patented technology all the same. So Mr. DuVal transferred his patent to respondent Click-to-Call Technologies LP (CTC), which swiftly took the patent back to court. CTC noted *1379 that Thryv couldn't exactly plead ignorance about this patent, given that the company or its predecessors had previously licensed the patent, been sued for infringing it, and asked the Patent Office to reexamine it. When it came to Mr. DuVal's patent, CTC alleged, Thryv had done just about everything one can do to a patent except invent it.
Thryv responded by opening another new litigation front of its own. One year after CTC filed its federal lawsuit, Thryv lodged another administrative petition with the Patent Office, this time seeking inter partes review. Echoing some of the same arguments that led to its push for an ex parte administrative reexamination nine years earlier, and adding other arguments too, Thryv (again) asked the agency to cancel Mr. DuVal's patent on the grounds that it lacked novelty and was obvious. At the same time, Thryv sought to stay proceedings in CTC's infringement suit. Thryv argued that the district court should defer to the newly initiated inter partes review. Like many district courts facing the prospect of parallel administrative proceedings, this one obliged.
Why at this late hour did Thryv prefer to litigate before the agency rather than a federal district court? The agency's ex parte reexamination years earlier hadn't helped Thryv much. But since then, Congress had adopted the Leahy-Smith America Invents Act (AIA),
Some say the new regime represents a particularly efficient new way to "kill" patents. Certainly, the numbers tell an inviting story for petitioners like Thryv. In approximately 80% of cases reaching a final decision, the Board cancels some or all of the challenged claims. Patent Trial and Appeal Board, Trial Statistics 10 (Feb. 2020), https://www.uspto.gov/sites/default/files/documents/Trial_Statistics_2020_02_29.pdf. The Board has been busy, too, instituting more than 800 of these new proceedings every year. See id., at 6.
Still, Thryv faced a hurdle. Inter partes review "may not be instituted" based on an administrative petition filed more than a year after "the petitioner, real party in interest, or privy of the petitioner is served with a complaint alleging infringement of the patent" in federal court.
Despite this apparently fatal defect, the Board plowed ahead anyway. No one could dispute that Thryv's predecessor and privy had been "served with a complaint alleging infringement of the patent" more than a decade earlier. But that complaint didn't count, the Board declared, because it was dismissed without prejudice. The Board cited nothing in § 315(b) suggesting this distinction makes a difference under the statute's plain terms. Instead, the Board tiptoed past the problem and proceeded to invalidate almost all of the patent claims before it, even those the Patent Office itself had affirmed in its own ex parte proceeding years before. No doubt this was exactly what Thryv hoped for in its second bite at the administrative apple.
Thryv's victory may have taken years to achieve, but it didn't seem calculated to last long. Predictably, CTC appealed the Board's interpretation of § 315(b) to the Federal Circuit. And just as unsurprisingly, the court held that dismissed complaints do count as complaints, so Thryv's inter partes administrative challenge was time barred from the start. Mr. DuVal's patent had already survived one ex parte reexamination Thryv instigated. The patent had been the subject of long and repeated litigation in federal courts. The agency had no business opening yet another new inquiry into this very old patent.
But Thryv had one maneuver left. It sought review in this Court, insisting that Article III courts lack authority even to say what the law demands. According to Thryv, a different provision, § 314(d), renders the agency's interpretations and applications of § 315(b) immune from judicial review. So the Board can err; it can even act in defiance of plain congressional limits on its authority. But, in Thryv's view, a court can do nothing about it. Enforcement of § 315(b)'s time bar falls only to the very Patent Office officials whose authority it seeks to restrain. Inventors like Mr. DuVal just have to hope that the bureaucracy revoking their property rights will take the extra trouble of doing so in accordance with law.
That's the strange place we now find ourselves. Thryv managed to persuade the Court to grant its petition for certiorari to consider its extraordinary argument. And today the Court vindicates its last and most remarkable maneuver.
II
A
How could § 314(d) insulate from judicial review the agency's-admittedly mistaken-interpretation of an entirely different provision, § 315(b) ? The answer is that it doesn't.
To see why, look no further than § 314(d). The statute tells us that "[t]he determination by the Director whether to institute an inter partes review under this section shall be final and nonappealable." So the only thing § 314(d) insulates from judicial review is "[t]he determination" made "by the Director" "under this section"-that is, a determination discussed within § 314. Nothing in the statute insulates agency interpretations of other provisions outside § 314, including those involving § 315(b).
*1381
This arrangement makes sense. Given that § 314(d) speaks of "[t]he" determination by the Director "under this section," it comes as no surprise that the section mentions just
one
such "determination." It is found in § 314(a), where the Director "determines" whether the parties' initial pleadings suggest "a reasonable likelihood" the petitioner will prevail in defeating at least some aspect of the challenged patent. And it is easy to see why Congress might make a preliminary merits assessment like that exempt from further view: If the Director institutes a meritless petition, the Board can summarily affirm the patent's validity. See § 318(a);
Matters outside § 314 are different. Take the provision before us, § 315(b). It promises that an inter partes review "may not be instituted" more than a year after the initiation of litigation. This stands as an affirmative limit on the agency's authority. Much like a statute of limitations, this provision supplies an argument a party can continue to press throughout the life of the administrative proceeding and on appeal. Nothing in § 315(b) speaks of a "determination by the Director," let alone suggests that the agency's initial ruling on a petition's timeliness is "final and nonappealable."
To pretend otherwise would invite a linguistic nonsense. We would have to read § 314's language speaking of "[t]he" "determination" "under this section" to include not one determination but two-and to include not only the determination actually made under "this section" but also a second assessment made about the effect of an entirely different section.
To pretend otherwise would invite a practical nonsense as well. Because the Director's initial "reasonable likelihood" determination under § 314(a) relates to the merits, it will be effectively reviewed both by the Board and courts as the case progresses. But when does the Director's application of § 315(b)'s time bar get another look? Under Thryv's interpretation, a provision that reads like an affirmative limit on the agency's authority reduces to a mere suggestion. No matter how wrong or even purposefully evasive, the Director's assessment of a petition's timeliness is always immune from review. And even that's not the end of it. In other cases, the Board has claimed
it
has the right to review these initial timeliness decisions, and Thryv seems content with those rulings. See,
e.g.,
Medtronic, Inc. v. Robert Bosch Healthcare Systems, Inc.
,
B
Confronting so many problems in the statute's text, Thryv seeks a way around them by offering a competing account of *1382 the law's operation. While § 314 empowers the Director to make an institution decision, Thryv asserts that various provisions scattered throughout the chapter-such as §§ 314(a), 315(a)(1), and 315(b) -help guide the decision. And on Thryv's interpretation, all questions related to the Director's institution decision should be insulated from review, no matter where those rules are found. What about the fact § 314 speaks of insulating only "[t]he" "determination" "under this section"? Thryv says this language serves merely to indicate which institution authority is unreviewable-namely, the Director's authority to institute an inter partes proceeding pursuant to § 314, rather than pursuant to some other provision.
This interpretation, however, makes a nullity of the very language it purports to explain. Section 314 is the only section that authorizes the Director to institute inter partes review, making it pointless for Congress to tell us that we're talking about the Director's § 314 inter partes review institution authority as opposed to some other inter partes review institution authority. In fact, you can strike "under this section" from § 314(d) and Thryv's interpretation remains unchanged. That's a pretty good clue something has gone wrong.
Faced with this problem of surplusage, Thryv alludes to the possibility that Congress included redundant language to be "double sure." But double sure of what? Thryv does not identify any confusion that the phrase "under this section" might help avoid. Given the lack of any other provision, anywhere in the U.S. Code, authorizing anyone to institute inter partes review, even the most obtuse reader would never have any use for the clarification supposedly provided by "under this section" on Thryv's account.
Maybe so, Thryv replies, but we shouldn't worry about the surplusage here because the AIA contains surplusage elsewhere. The other putative examples of surplusage Thryv identifies, however, have no bearing on the provision now before us. And even a passing glance reveals no surplusage in them either. Consider § 315(c). It says that "the Director, in his or her discretion, may join as a party to that inter partes review any person who properly files a petition under section 311 that the Director, after receiving a preliminary response under section 313 ..., determines warrants the institution of an inter partes review under section 314 ." (Emphasis added.) Thryv argues that all these cross-references are unnecessary. But look closely: Each of § 315(c)'s cross-references does important work to establish the rules for joinder. Strike the first and the requirements of a joinder petition become undefined. Strike the second and it's a mystery what kind of response the patent owner is entitled to file. Strike the third and the Director's determination whether to grant joinder becomes standardless. All of this language has a point to it-just as "under this section" does under a faithful interpretation of § 314(d).
That leaves Thryv only one more tenuous textual lifeline left to toss. If Congress had wanted to insulate from review only "[t]he" "determination" that a petition has a "reasonable likelihood" of success, the company suggests, Congress could have spoken of insulating "the determination under subsection (a)" rather than "the determination under this section." And Thryv reminds us that Congress used that latter formulation in nearby and predecessor statutes. See, e.g., § 303(c) ("[a] determination by the Director pursuant to subsection (a) of this section ... will be final and nonappealable"); § 312(c) (2006 ed.; repealed 2011) ("[a] determination by the *1383 Director under subsection (a) shall be final and non-appealable").
But so what? One could replace the phrase "my next-door neighbor to the west" with "my neighbor at 123 Main Street" (assuming that is her address) and the meaning would be the same. Likewise, it hardly matters whether Congress spoke of the "determination" "under this section" or "under subsection (a)." Either way, our attention is directed within, not beyond, § 314. And what's Thryv's alternative? It would have us read language speaking of the Director's determination "under this section" to encompass any decision related to the initiation of inter partes review found anywhere in the AIA-an entire chapter of the U.S. Code. That's sort of like reading "my next-door neighbor to the west" to include "anyone in town." Nor do things get better for Thryv with a careful assessment of nearby and predecessor statutes. They reveal that Congress knew exactly how to give broader directions like the one Thryv imagines when it wished to do so. See, e.g., § 314(b) (directing our attention to the Director's decision whether to institute inter partes review "under this chapter" rather than "under this section").
Without any plausible textual or contextual hook for its position, Thryv finishes by advancing a parade of policy horribles. It notes that the AIA imposes lots of other constraints on inter partes review besides the § 315(b) timing provision now before us. For example, the law bars petitioners who have filed declaratory judgment actions from challenging the same patent in inter partes review proceedings, § 315(a)(1), and it estops petitioners from seeking other forms of review once an inter partes proceeding finishes, § 315(e). If courts are going to review the agency's application of § 315(b), Thryv wonders, are they going to have to review the agency's application of these other provisions too?
But we could just as easily march this parade in the opposite direction. Even assuming (without deciding) that Thryv is right and the reviewability of all these provisions stands or falls together, that seems at least as good an argument for as against judicial review. If so much more is at stake, if many more kinds of agency errors could be insulated from correction, isn't that a greater reason to pay assiduous attention to the statute's terms? Surely, Thryv's professed concern for judicial economy supplies no license to ignore our duty to decide the cases properly put to us in accord with the statute's terms.
III
This last point leads to another reason why we should reject Thryv's reading of the statute. Even if the company could muster some doubt about the reach of § 314(d), it wouldn't be enough to overcome the "well-settled presumption favoring interpretations of statutes that allow judicial review of administrative action."
McNary v. Haitian Refugee Center, Inc.
,
The presumption of judicial review is deeply rooted in our history and separation of powers. To guard against arbitrary government, our founders knew, elections are not enough: "An elective despotism was not the government we fought for." The Federalist No. 48, p. 311 (C. Rossiter ed. 1961) (emphasis deleted). In a government "founded on free principles," no one person, group, or branch may hold all the
*1384
keys of power over a private person's liberty or property.
It should come as an equal surprise to think Congress might have imposed an express limit on an executive bureaucracy's authority to decide the rights of individuals, and then entrusted that agency with the sole power to enforce the limits of its own authority. Yet on Thryv's account, § 315(b)'s command that "inter partes review
may not
be instituted" would be left entrusted to the good faith of the very executive officials it is meant to constrain. (Emphasis added.) We do not normally rush to a conclusion that Congress has issued such " 'blank checks drawn to the credit of some administrative officer.' "
Bowen v. Michigan Academy of Family Physicians
,
That usually may be the case, Thryv counters, but this statute's unusually modest purpose makes it plausible to think Congress meant to shield its application from judicial review. After all, the company submits, § 315(b) is not really a firm limit on the agency's authority, only a claim processing rule. For proof, the company reminds us that § 315(b) bars challengers who have already spent a year litigating in court from petitioning the agency, but leaves open the possibility that the agency might still institute inter partes review if a different, eligible petitioner happens to come along. And this theoretical possibility, Thryv tells us, suggests that the agency was meant to be allowed to act as it wants.
But Thryv's reply here is like saying Article III's "case or controversy" requirement isn't really a limit on the power of federal courts, because it's always possible that some litigant with a live dispute will come forward and require the court to settle a particular legal question. The implacable fact is that nothing in the AIA gives the Director or the Board freewheeling authority to conduct inter partes review. The statute demands the participation of a real party in interest, a petitioner who is not barred by prior litigation and who is willing to face estoppel should he lose. §§ 311(a), 315. And if, as seems likely in our case and many others, no one is willing and able to meet those conditions, the law does not permit inter partes review. So rather than a claim processing rule, § 315 is both a constraint on the agency's power and a valuable guarantee that a patent owner must battle the same foe only once.
Realizing that its textual arguments are too strained to demonstrate clearly and convincingly that Congress meant to displace judicial review, Thryv asks us to draw "inferences" from the AIA "as a whole." Brief for Petitioner 16 (internal quotation marks omitted). In particular, the company tells us that Congress's "overriding purpose" in creating inter partes review was to "weed out poor quality patents," and that judicial enforcement of § 315(b) would slow this progress.
Id.,
at 24 (quotation altered). But to support its thematic account of the law's goals, Thryv rests on one thin reed after another-a
*1385
House Report here, a floor statement there, and a few quotations from
Cuozzo Speed Technologies, LLC
v.
Lee
, 579 U.S. ----,
That's far from enough. The historic presumption of judicial review has never before folded before a couple stray pieces of legislative history and naked policy appeals. Besides, Thryv's submissions cannot withstand the mildest inspection even on their own terms. No one doubts that Congress authorized inter partes review to encourage further scrutiny of already issued patents. But lost in Thryv's telling about the purposes of the AIA is plenty of evidence that Congress
also
included provisions to preserve the value of patents and protect the rights of patent owners. For example, Congress sharply limited the legal grounds that might be pursued in inter partes review, § 311(b) ; afforded patent owners an opportunity to respond to petitions prior to institution, § 313; and, most relevant today, protected patent owners from the need to fight a two-front war before both the Board and federal district court, § 315. Legislating involves compromise and it would be naive to think that, as the price for their zealous new procedures for canceling patents, those who proposed the AIA didn't have to accept
some
protections like these for patent holders. Yet, Thryv glides past all these provisions without comment. Worse, taking the company's argument to its logical conclusion could render these protections into " 'merely advisory' " features of the law.
Bowen
,
A case decided just weeks ago supplies a telling point of comparison. In
Guerrero-Lasprilla
v.
Barr
, 589 U.S. ----,
IV
Even if the statute's plain language and the presumption in favor of review dictate a ruling against it, Thryv finishes by suggesting we must ignore all that and rule for it anyway because precedent commands it. Maybe our precedent is wrong, the company says, but it binds us all the same.
In particular, Thryv points us to Cuozzo . There, the Court suggested that § 314(d) could preclude review in cases: (1) where a litigant challenges the Director's reasonable likelihood of success determination under § 314(a), or (2) where a litigant "grounds its claim in a statute closely related to that decision to institute inter partes review." 579 U.S. , at ----, 136 S.Ct., at 2142. That first path is faithful to the plain language of § 314(d). The second appears nowhere in the statute but is, *1386 instead, a product of the judicial imagination. Still, Thryv says, we must follow that path wherever it leads and, because § 315(b) decisions are "closely related" to § 314(a) decisions, we shouldn't review them.
But Cuozzo hardly held so much. In fact, Cuozzo had no need to explore the second path it imagined, for it quickly concluded that the argument before it was "little more than a challenge to the Patent Office's conclusion under § 314(a)," a decision shielded from judicial review under any interpretation of § 314(d). Id ., at ----, 136 S.Ct., at 2142. So all the discussion about the reviewability of decisions outside § 314(a) turned out to be nothing more than dicta entirely unnecessary to the decision. Nor did anything in Cuozzo directly address § 315(b) decisions, let alone declare them to be "close enough" to § 314(a) decisions to preclude judicial review.
That's just the beginning of Thryv's precedent problems, too. In
SAS Institute Inc.
v.
Iancu
, 584 U.S. ----,
We held they did not. We began, as we did in
Cuozzo
, by noting the "strong presumption in favor of judicial review."
SAS Institute
, 584 U.S., at ----
It's not surprising that litigants would invite us to overread dicta or overlook an unfavorable precedent. What is surprising is that the Court would accept the invitation. In ''cases involving property," after all, "considerations favoring
stare decisis
are at their acme."
Kimble v. Marvel Entertainment, LLC
,
Litigants and lower courts will also have to be forgiven for the confusion to come about the meaning of § 314(d)'s review bar. Whether it is limited to the § 314(a) determination (as SAS Institute held and parts of Cuozzo suggested) or also reaches to challenges grounded in "closely related" statutes (as other parts of Cuozzo suggested and the Court insists today)-who can say? And even supposing that "closely related to institution" really is the test we'll apply next time, does anyone know what this judicially concocted formulation even means? Despite three opinions interpreting the same provision in under five years, only one thing is clear: Neither the statute nor our precedent can be counted upon to give the answer. Litigants and lower courts alike will just have to wait and see.
V
It's a rough day when a decision manages to defy the plain language of a statute, our interpretative presumptions, and our precedent. But today that's not the worst of it. The Court's expansive reading of § 314(d) takes us further down the road of handing over judicial powers involving the disposition of individual rights to executive agency officials.
We started the wrong turn in
Oil States Energy Services, LLC
v.
Greene's Energy Group, LLC
, 584 U.S. ----,
Just try to imagine this Court treating other individual liberties or forms of private property this way. Major portions of this country were settled by homesteaders who moved west on the promise of land patents from the federal government. Much like an inventor seeking a patent for his invention, settlers seeking these governmental grants had to satisfy a number of conditions. But once a patent issued, the granted lands became the recipient's private property, a vested right that could be withdrawn only in a court of law. No one thinks we would allow a bureaucracy in Washington to "cancel" a citizen's right to his farm, and do so despite the government's admission that it acted in violation of the very statute that gave it this supposed authority. For most of this Nation's history it was thought an invention patent
*1388
holder "holds a property in his invention by as good a title as the farmer holds his farm and flock."
Hovey v. Henry
,
Some seek to dismiss this concern by noting that the bureaucracy the AIA empowers to revoke patents is the same one that grants them. But what comfort is that when the Constitution promises an independent judge in any case involving the deprivation of life, liberty, or property? Would it make things any better if we assigned the Department of the Interior the task of canceling land patents because that agency initially allocated many of them? The relevant constitutional fact is not which agency granted a property right, but that a property right was granted.
The abdication of our judicial duty comes with a price. The Director of the Patent and Trademark Office is a political appointee. The AIA vests him with unreviewable authority to institute (or not) inter partes review. Nothing would prevent him, it seems, from insulating his favorite firms and industries from this process entirely. Those who are not so fortunate proceed to an administrative "trial" before a panel of agency employees that the Director also has the means to control. The AIA gives the Director the power to select which employees, and how many of them, will hear any particular inter partes challenge. It also gives him the power to decide how much they are paid. And if a panel reaches a result he doesn't like, the Director claims he may order rehearing before a new panel, of any size, and including even himself.
No one can doubt that this regime favors those with political clout, the powerful and the popular. But what about those who lack the resources or means to influence and maybe even capture a politically guided agency? Consider Mr. DuVal, who 25 years ago, came up with something the Patent Office agreed was novel and useful. His patent survived not only that initial review but a subsequent administrative ex parte review, a lawsuit, and the initiation of another. Yet, now, after the patent has expired, it is challenged in still another administrative proceeding and retroactively expunged by an agency that has, by its own admission, acted unlawfully. That is what happens when power is not balanced against power and executive action goes unchecked by judicial review. Rather than securing incentives to invent, the regime creates incentives to curry favor with officials in Washington.
Nor is it hard to imagine what might lie around the corner. Despite repeated lawsuits, no court ever ruled definitively on Mr. DuVal's patents. But suppose one had-and suppose he had prevailed. According to the agency, even that judgment might not matter much. In other cases, the Board has claimed the power through inter partes review to overrule final judicial judgments affirming patent rights. In the Director's estimation, it appears, even this Court's decisions must bow to the Board's will. See
XY, LLC v. Trans Ova Genetics, L. C.
,
It's understandable, too, why the agency might think so much is up for grabs. Not
*1389
only did this Court give away much of its Article III authority in
Oil States
on a mistaken assessment that patents were historically treated as public franchises rather than private rights. Some would have had the Court go even further. Rather than looking to history to determine how patents were treated, as both the majority and dissent sought to do, these Members of the Court suggested that agencies should be allowed to withdraw even private rights if "a number of factors"-taken together, of course-suggest it's a good idea.
Commodity Futures Trading Comm'n v. Schor
,
Thryv seeks to assure us that affected parties can still file writs of mandamus in courts if the Patent Office gets
really
out of hand. But the Court today will not say whether mandamus is available where the § 314(d) bar applies, and the Federal Circuit has cast doubt on that possibility.
In re Power Integrations, Inc.
,
*
Two years ago, this Court sanctioned a departure from the constitutional plan, one in which the Executive Branch assumed responsibilities long reserved to the Judiciary. In so doing, we denied inventors the right to have their claims tried before independent judges and juries. Today we compound that error, not only requiring patent owners to try their disputes before employees of a political branch, but limiting their ability to obtain judicial review when those same employees fail or refuse to comply with the law. Nothing in the statute commands this result, and nothing in the Constitution permits it. Respectfully, I dissent.
Justice THOMAS and Justice ALITO join all but Part III-C of this opinion.
The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See
United States v. Detroit Timber & Lumber Co.
,
Key statutory provisions are reproduced in an appendix to this opinion.
More precisely, the petition was filed by four companies, including YellowPages.com, LLC, and Ingenio, LLC. Through "a series of mergers, sales, and name changes," both became Thryv. Brief for Petitioner 8. For simplicity, we refer to Thryv and its predecessor entities as "Thryv."
The 2001 suit was brought by Inforocket.Com, Inc.-then the exclusive licensee of the '836 patent -against Keen, Inc. See Inforocket.Com , Inc. v. Keen , Inc. , No. 1:01-cv-05130 (SDNY). While the suit was pending, Keen acquired Inforocket and the District Court dismissed the suit without prejudice. By the time of the inter partes review petition, Keen had become Ingenio (now Thryv).
A footnote in the panel's opinion noted that the Court of Appeals sitting en banc had considered and agreed with the panel majority's conclusion that a complaint voluntarily dismissed without prejudice can trigger § 315(b)'s time bar.
Click-to-Call Technologies, LP v. Ingenio, Inc.
,
We do not decide whether mandamus would be available in an extraordinary case. Cf.
Cuozzo
Speed Technologies, LLC
v.
Lee
, 579 U.S. ----, ---- - ----, n. 5,
The dissent acknowledges that "Congress authorized inter partes review to encourage further scrutiny of already issued patents."
Post,
at 1385. Yet the dissent, despite the Court's decision upholding the constitutionality of such review in
Oil States Energy Services, LLC
v.
Greene's Energy Group, LLC
, 584 U.S. ----,
Defending Click-to-Call's interpretation, the dissent takes a view of our precedent that neither Click-to-Call nor the Federal Circuit advances. See
post
, at 1385 - 1387. The dissent does not consider itself bound by
Cuozzo
's conclusion that § 314(d) bars appeal of "questions that are closely tied to the application and interpretation of statutes related to the Patent Office's decision to initiate inter partes review," 579 U.S., at ----, 136 S.Ct., at 2141. According to the dissent, that statement is dicta later repudiated in
SAS Institute Inc.
v.
Iancu
, 584 U.S. ----,
But Cuozzo concerned an appeal resting on a "related statutory section": § 312(a)(3). 579 U.S., at ----, 136 S.Ct., at 2139. That § 312(a)(3) challenge was tied to institution, the Court explained, for two reasons: first, because it "attack[ed] a 'determination ... whether to institute' review," id. , at ---- - ----, 136 S.Ct., at 2139 ; second, because the § 312(a)(3) challenge was related to invoking § 314(a)'s condition on institution, id. , at ----, 136 S.Ct., at 2142. Cuozzo 's recognition that § 314(d) can bar challenges rooted in provisions other than § 314(a) was hardly "dicta," post , at 1386 -it was the Court's holding. And SAS Institute purported to adhere to Cuozzo , not to overrule it. 584 U.S., at ---- - ----, 136 S.Ct., at 2142-2143. The Court in SAS Institute said, specifically, that it discerned "nothing in ... Cuozzo " inconsistent with its conclusion. Id. , at ----, 138 S.Ct., at 1359.
We do not so lightly treat our determinations as dicta and our decisions as overruling others sub silentio . Nor can we countenance the dissent's dangerous insinuation that today's decision is not "really" binding precedent. Post , at 1386 - 1387 ("[W]ho can say?"); post , at 1387 ("Litigants and lower courts alike will just have to wait and see."). Lest any "confusion" remain, post , at 1386 - 1387, we reaffirm today our holding in Cuozzo : Section 314(d) generally precludes appeals of the agency's institution decision, including, beyond genuine debate, appeals "consist[ing] of questions that are closely tied to the application and interpretation of statutes related to" the institution decision. 579 U.S., at ----, ----, 136 S.Ct., at 2139, 2141. The appeal bar, we therefore reiterate, is not limited to the agency's application of § 314(a).
Reference
- Full Case Name
- THRYV, INC., Fka Dex Media, Inc., Petitioner v. CLICK-TO-CALL TECHNOLOGIES, LP, Et Al.
- Cited By
- 53 cases
- Status
- Published