ASPEN SERIES

PATENT LAW

Fourth Edition

JANICE MUELLER Instructor and Co-Founder

Patent Academy

Wolters Law & Business

Contents

Preface xxiii

Chapter 1 U.S. Patent System 1

A. Introduction and Chapter 1 B. Why Study Patent Law? 2

1. of the 2 2. Prerequisites 7

C. What Is a Patent? 8 1. Patents as a Form of Intellectual Property 8 2. Appropriability Intellectual Property 8 3. Public Goods 9 4. Exception to the General Rule of Competition

by Imitation 10 5. The Patent Document and 11 6. The Negative Right to Exclude 17 7. The Patent 20

D. Economic Considerations 24 1. Is a Patent a Monopoly? 25 2. Cost/Benefit Analysis for Patents 26

a. Costs 27 b. Benefits 30

E. Philosophical Rationales for Patent Protection 32 1. Natural Rights 33 2. Reward for Services Rendered 34 3. Monopoly Profits Incentive 34 4. Exchange for Secrets 35

F. Primary Sources U.S. Patent Law 36 1. The Constitution 36 2. Federal Statutes and Regulations 38 3. Case Law 40

G. Adjudicatory Forums for Patent Matters 42

Contents

1. U.S. District Courts 42 a. Subject Matter Jurisdiction and Venue 42 b. Civil Actions Against the USPTO Director in

the Eastern District of Virginia 46 2. U.S. Court of Appeals for the Federal Circuit 47 3. USPTO Patent and Appeal Board 50 4. U.S. International Trade Commission 51

H. Patent Prosecution Overview 52 1. Introduction 52 2. Filing the Application 53 3. Examination by the USPTO 56

a. Sample Office Action and Applicant's Response 60 4. Publication Pending Patent Applications 65 5. Continuing Application Practice 66 6. Double Patenting 71

Chapter 2 Patent Claims 77

A. Introduction 77 1. Patent Claiming 77 2. Patent Claim 78 3. A Key Reference Work 80

B. Claim Definiteness (35 U.S.C. §112(b)) 81 1. Own Lexicographer Rule 81 2. Definiteness Standards 82 3. Antecedent Basis 89

C. Patent Claim 90 1. Preamble 90 2. Transition 92

a. Transition 92 b. "Consisting Transition 95 c. "Consisting Essentially Transition 95

3. Body 96 D. Independent and Dependent Claims 98 E. Specialized Claiming Formats 100

1. Claim Elements (35 U.S.C. §112(f)) 101 a. Introduction 101 b. Interpreting the Scope of Means-Plus-Function

Elements 102 c §112(0 Statutory Equivalents

and the Doctrine of Equivalents 106 2. Product-by-Process Claims 108 3. Jepson Claims 112 4. Markush Claims 114

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Chapter 3 Disclosure (35 U.S.C. §112(a)) 117

A. Introduction 117 1. The Statutory Framework 117 2. Disclosure as Pro Quo 119 3. Disclosure Compliance 120

B. The Enablement 124 1. Undue Experimentation 124 2. Wands Factor: Predictable Versus Unpredictable

Inventions 126 3. Wands Factor: Scope of the Claims 128 4. Wands Factor: Working 130 5. Nascent and After-Arising Technology 131

C. The Best Mode Requirement 133 1. Best Mode by America Invents

2011 133 2. Distinguishing Best Mode Enablement 135 3. Policy Rationale 136 4. The Chemcast Analysis 138

a. Step 1: Subjective Inquiry 138 b. Step 2: Objective Inquiry 139

5. Scope of Mode Obligation 140 D. The Written Description of the Invention Requirement 143

1. Mechanism 144 2. How an Application Conveys Possession of an

Invention 146 3. Distinguishing Written Description from

Enablement 150 4. Typical Fact Scenarios Invoking Written

Description Scrutiny 152 5. Federal Expansion of the Written

Description Requirement 153

Chapter 4 Novelty, Loss of Right, and Priority Pre- and Invents Act of 2011 (35 U.S.C. §102) 173

Guide to This Chapter 173 Part I: General Principles of 174 A. The Meaning of Anticipation 174 B. ofProof 174 C. The Strict Identity Rule of Anticipation 175

1. In General 175 2. The Special Case of Specfes/Genus Anticipation 176

Contents

D. Anticipation by Inherency E. Enablement Standard for Anticipatory Prior Art 181 F. What Is a Printed Publication? 182 Part II: Novelty, Loss Right, and Priority

Invents 2011

G. Introduction 1. Statutory Basis 2. Distinctions 3. Who Is the Actor? 192 4. Distinguishing Novelty Loss Right 193

H. or Under 35 U.S.C. §102(a) 194 I. The Statutory Bars of 35 U.S.C. §102(b) (Pre-AIA) 197

1. Introduction 197 2. Grace Period 200 3. Section 102(b) Public Use 201 4. Section 102(b) on Bar 206 5. Experimental Use Negation of the §102(b) Bars 210

J. Under 35 U.S.C. §102(c) (Pre-AIA) 212 Foreign Patenting Bar of 35 U.S.C. §102(d) (Pre-AIA) 213

L. Description in Another's Patent or Published Patent Application Under 35 U.S.C. §102(e) (Pre-AIA) 215

M. Derivation and Inventorship Under 35 U.S.C. §102(f) (Pre-AIA) 219 1. Derivation 219 2. Who Is an Inventor? 220 3. Correction of Inventorship 221 4. Joint Inventors 222

N. Prior Invention Under 35 (Pre-AIA) 223 1. Introduction 223 2. Interference Proceedings Under §102(g)(l) 223 3. Anticipation Under §102(g)(2) 226 4. Applying the Priority Rule of §102(g) 228

Prior Art (Pre-AIA) 231 Part III: Novelty and Priority Post-America Invents Act 233 P. Introduction 233

1. Statutory Basis 236 2. and History 237 3. Comparing Pre- and Frameworks 239

a. What Section 3 of the Retained 241 b. What Section 3 of the Changed 242

Q. Novelty-Destroying Events Under Post-AIA 35 U.S.C. §102(a)(l) 247 1. Invention Tatented, Described in a Printed

Publication, or in Public Use, [or} on Effective Filing Date 247

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2. Invention Available to the Before Effective 249

3. Does the AIA Permit Secret Prior Art? 250 R. Presumptively Novelty-Destroying Events Under

Post-AIA 35 U.S.C. §102(a)(2) 252 S. Novelty-Preserving Exceptions Under Post-AIA

35 U.S.C. §102(b) 256 1. Introduction 256 2. Post-AIA §102(b)(l): Shields Against

Post-AIA §102(a)(l) Presumptively Novelty-Destroying Events 257 a. (A)-Type Exceptions 257 b. (B)-Type Exceptions 260

3. Post-AIA §102(b)(2): Shields Against Post-AIA §102(a)(2) Presumptively Novelty-Destroying Events 262 a. (A)-Type Exceptions 262 b. (B)-Type Exceptions 264

T. Effective Date for AIA §3 Amendments 264

U. Common Ownership Under Joint Research Agreements 267

Chapter 5 The Nonobviousness Requirement (35 U.S.C. §103) 271

A. Introduction 271 B. Historical Context: The Hotchkiss

Mechanic" and the Requirement for "Invention" 273 C. Enactment of §103 of the Patent Act of 1952,

Incorporating the Requirement of Nonobviousness 276 D. The Graham v. John Deere Framework for Analyzing

Nonobviousness 277 1. Constitutionality of 35 U.S.C. §103 278 2. Framework for a §103 Analysis 279

E. Graham Factor: Level of Ordinary in the Art 279 F. Graham Factor: Scope and Content of the Prior Art 284

1. Terminology 284 2. Prior Art 284 3. Section 102/103 Overlap 285 4. Analogous Art 293

G. Graham Factor: Differences Between Claimed Invention and Prior Art 297

H. Graham Factor: Secondary Considerations 297

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1. The Weight to Be Accorded Secondary Considerations Evidence 299

2. The Nexus Requirement for Evidence of Commercial Success 301

I. the Disclosures of Prior Art References to Establish Obviousness 302 1. Teaching, Suggestion, or Motivation to Combine 302 2. KSR v. Combinations, Predictability, and

"Common Sense" 304 3. Teaching Away 310 4. to Try" 311

J. The Prima Facie Case of Obviousness 312 K. Federal Circuit Standards of Review in §103

Determinations 319 1. USPTO 319 2. Federal District Court 320

Chapter 6 Requirement U.S.C. §101) 321

A. Introduction 321 B. Practical Utility 322 C. The Supreme Court View: Brenner v. Manson 325 D. The Federal Circuit View 327

1. Chemical Compounds 327 2. Methods of Medical 328 3. Genetic Inventions 330

E. Inoperability 333 1. Examples of Inoperable Inventions 334 2. Inoperable Species Within a Genus 335

F. Immoral or Deceptive Inventions 336 G. Relationsbip Between Utility Requirement of §101

and How-to-Use Requirement of §112(a) 338 H. Utility Requirement in Foreign Patent Systems 339

1. Applicability 339 2. Morality Criterion 340

Chapter 7 Potentially Matter (35 U.S.C. §101) 343

A. Introduction 343 1. The General Nature of §101 343 2. The Statutory Categories of §101 345 3. Claiming the Inventive Concept Within Different

Statutory Categories 345

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B. Section 101 Processes 348 1. Basic Principles 348 2. Process Versus Product 349 3. Processes 350 4. Business Methods 352 5. Methods of 366

C. Section 101 Machines 373 D. Section 101 Compositions of Matter 375

1. Structure Versus Properties 375 2. Purified Natural Products 376 3. Life Forms 381

E. Section 101 Manufactures 383 F. Nonpatentable Subject Matter 388 G. Procedures 389 H. Patentable Subject Matter Beyond §101: Plant

Patents and Design Patents 390 1. Plant Patents 390 2. Design Patents 394

a. Criteria for Obtaining Design Patents 394 b. Infringement Design Patents 397

Chapter 8 Correcting and Issued Patents in the USPTO 401

A. Introduction 401 B. Certificates of Correction 402 C. Reissue 404

1. Overview 404 2. Historical Development 405 3. Statutory Basis 407 4. Broadening Reissues 408 5. Reissue Error 409 6. The Recapture Rule 411 7. Effect Reissue: Intervening Rights 414 8. Considerations for Reissue 418

D. Reexamination 420 1. Introduction 420 2. Ex Parte Reexamination 422

a. Who Can Request 422 b. Statutory Grounds for Reexamination 423 c. Substantial New 423 d. Legislative Changes in Response to Portola 425 e. Reexamination Compared to Reissue 426

3. Partes Reexamination (Pre-AIA) 427

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E. Procedures for Challenging Issued Patents 430 1. Inter Partes Review 432 2. Post-Grant Review 434

Chapter 9 Patent Infringement 439

A. Introduction 439 1. Statutory Framework 439

a. Direct Versus Indirect Infringement Under §271 440 b. Joint Direct Infringement by Multiple Parties

Under §271(a) 442 2. Two-Step Analysis for Patent Infringement 446

B. Step One: Patent Claim Interpretation 447 1. The Central of Claims 447 2. Judge or Jury as Interpreter? The Markman

Revolution 449 3. Evidentiary Sources for Claim Interpretation 452 4. The Phillips Debate: "Contextualist" Versus

"Literalist" Approaches 454 5. Markman Hearings 459 6. Appellate Review Claim Interpretation 460 7. Claim Interpretation Canons 463

C. Step Two: Comparing the Properly Interpreted Claims to the Device 466 1. Literal Infringement 466 2. Infringement Under the Equivalents 468

a. Historical Origins 468 b. Policy Rationales 469 c. Tension with the Notice Function of Claims 470 d. Rule 471 e. What Is a Limitation? 471 f. Determining Equivalence 474 g. Reverse Doctrine of Equivalents 476

D. Legal Limitations on the Equivalents 477 1. Overview 477 2. Prosecution History Estoppel 478

a. Definition 478 b. Estoppel 481 c. Presumption of Estoppel Under

Warner-Jenkinson 482 d. Federal Circuit's Complete Bar Rule of 482 e. Supreme Court's Presumptive Bar Rule

of Feste II 484

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f. Federal Circuit's Decision in Festo III 486 g. Federal Circuit Decisions Applying the Festo

Rebuttal Criteria 489 3. Prior Art (Hypothetical Claim Analysis) 493 4. Dedication to the Public 495 5. Vitiation of Claim Limitations 497

E. Aspects of Infringement Beyond 35 U.S.C. §271(a) 499 1. Inducing Infringement Under §271(b) 499 2. Contributory Infringement Under §271(c) 505 3. Drug Marketing Application Filings Under §271(e) 508 4. Component Exports Under §271(f) 512 5. Importation Under §271(g) 518

Chapter 10 Defenses to Patent Infringement 521

A. Introduction 521 B. Noninfringement 522 C. Liability for Infringement 523

1. License 523 a. Express License 523 b. Implied License 524

2. Prior User Rights 528 3. Use 532 4. Expiration of Damages Limitation Period of

35 U.S.C. §286 536 5. Laches and Equitable Estoppel in Initiating Patent

Infringement Litigation 537 a. Introduction 537 b. Laches 538 c. Equitable Estoppel 540

6. State Sovereign Immunity 541 7. Temporary Presence Exemption 544 8. Patent Exhaustion 546 9. s Lack of Standing to Sue for Infringement 549

D. 550 1. Inequitable Conduct 551

a. Materiality 552 b. Intent to Deceive 562 c. Balancing 565 d. of Proof and Standard of Review 566

2. Patent Misuse 567 a. Introduction 567 b. Morton Salt 571 c. Limitations on Patent Misuse: §271(d) 572

3. Prosecution History Laches 576

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E. Invalidity 578 1. ofProof 578 2. Collateral Estoppel Effect Adjudication 581 3. Statutory Grounds for Invalidity 582 4. Limits on Accused Infringer's Standing to Assert

Invalidity: Licensee Repudiation and Assignor Estoppel 582 a. Licensee Repudiation 583 b. Assignor Estoppel 584

F. Antitrust Counterclaims 587 1. Market Power 588 2. Anticompetitive Conduct 593

G. Patent Declaratory Judgment Actions 599 1. Federal Circuit's "Reasonable

Apprehension" Test 600 2. Supreme Court's Decision in 601 3. Federal Circuit Decisions 604

Chapter 11 Remedies for Patent Infringement 609

A. Introduction 609 B. Injunctions 610

1. Permanent Injunctions 611 a. The eBay v. MercExchange Standard 613

2. Preliminary Injunctions 615 a. Success on the Merits 617 b. Irreparable Harm 618 c. Balance of the Hardships Tipping in Movant's

Favor 619 d. Public Interest 620 e. Appellate Standard of Review 620

C. Ongoing Royalties for Future 621 D. Damages for Past Infringements 624

1. Introduction 624 2. Compensatory Damages 625

a. Lost Profits 626 (1) The analysis 627

(i) for the patented product 627 (ii) acceptable noninfringing

Substitutes 627 (iii) Manufacturing and marketing

630 (iv) Amount of profit 631

(2) 631

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b. Entire Market 633 c. Reasonable Royalty 637

(1) Hypothetical negotiation 637 (2) Analytical approach 640

d. Price Erosion 641 3. Enhanced Damages and Willful Infringement 642

E. Fees 649 F. Prejudgment Interest 650 G. Costs 652 H. Patent Marking 653 I. Provisional Compensation 656

Chapter 12 International Patenting Issues 659

A. Introduction 659 1. Territorial Scope of Patents 659 2. Obtaining Foreign Patent Protection Prior to the

Paris Convention 661 B. The Paris Convention 664

1. Introduction 664 2. National Treatment 665 3. Priority 666 4. U.S. Implementation of the Paris Right of

Priority: 35 U.S.C. §119 669 5. The Rule (Pre-America Invents Act of 2011) 672 6. Limitations of the Paris Convention 675

C. The Patent Cooperation Treaty 676 D. The World Trade Organization's Agreement on

Aspects of Intellectual Property Rights (TRIPS) 678

E. Patent Harmonization 683 1. Versus 684 2. Absolute Versus Qualified Novelty: Grace Period 688

F. Gray Market Goods and the International Exhaustion Debate 689 1. Domestic Exhaustion 690 2. Regional (European Community-Wide) Exhaustion 691 3. International Exhaustion 692

G. Enforcement of Foreign Patents in U.S. Courts 693

Glossary 697 713 Index 735