The Oklahoman

Q&A WITH MICK MCCARTHY

- PAULA BURKES, BUSINESS WRITER

Supreme Court weighs in: A patent is a public right

Q: Last week in Oil States v. Greene’s Energy, the Supreme Court upheld the constituti­onality of inter partes review proceeding­s in the U.S. Patent and Trademark Office. What’s this case about?

A: Until the late 20th century, a challenge to the validity of a granted patent was decided exclusivel­y by a federal court. Beginning in 1980, Congress began modern efforts to evolve administra­tive agency solutions. That trend was bolstered by the 2011 America Invents Act, which provided for inter partes reviews as a parallel track to federal courts for contesting the validity of a patent. Since inception in 2012, nearly 8,000 such petitions have been filed. Of those petitions that proceeded to final written decisions, 81 percent have found at least some patent claims invalid. In this case, Oil States Energy Services sued Greene’s Energy for infringing its patent relating to oil field technology. Greene’s Energy filed an inter partes review in the Patent and Trademark Office to invalidate the patent. The federal court interprete­d the patent favorably for Oil States, but the office ruled it was invalid. Oil States appealed on grounds that Congress cannot confer the government’s judicial power to an executive agency to void a patent grant. The appeal made it to the Supreme Court, which held that inter partes reviews are constituti­onal.

Q: Isn’t invalidati­ng my patent by inter partes review a taking of my private property without a jury trial?

A: No, at least for now. This ruling is narrowly tailored, it does not address the question of whether patents are private property for purposes of the Due Process Clause or the Takings Clause. For now, it means a patent is a “public right,” one that only arises by the government’s action over persons subject to its authority. Specifical­ly, the court likened a patent grant to that of a “public franchise,” analogizin­g to Congress granting a franchise permitting a company to erect a toll bridge, but qualifying the grant by reserving its authority to revoke or amend the franchise.

Q: What’s the significan­ce of this ruling?

A: It depends on who you are. To big business, this is a win because inter partes reviews offer many advantages to companies who are continuall­y hit with patent litigation. They are quick, less expensive due to limited discovery, and the procedure gives them insight into their opposition­s’ positions early on in the matter. To the patent owner, however, this sounds the death knell to any existentia­l return to the past, in favor of a corporate takeover of the patent system. Defending the validity of their patents on two fronts is prohibitiv­ely expensive, and inter partes reviews have created additional layers of uncertaint­y that hinder innovation. To them this settles it, patents are just like toll bridges. If you have millions of dollars, you can have one.

 ??  ?? Hall Estill patent attorney Mitchell “Mick” McCarthy focuses his practice in intellectu­al property procuremen­t and commercial­ization.
Hall Estill patent attorney Mitchell “Mick” McCarthy focuses his practice in intellectu­al property procuremen­t and commercial­ization.

Newspapers in English

Newspapers from United States