In a recent decision from the Court of Appeals of the Federal Circuit (hereafter “Federal Circuit”), the Federal Circuit affirmed a District Court decision which held that the U.S. Patent and Trademark Office (“PTO”) has been incorrectly calculating patent term adjustment (PTA) for many patents. Wyeth v. Kappos, No. 2009-1120 (Fed. Cir. Jan. 7, 2010).
35 U.S.C. § 154 provides that the term of a patent can be adjusted due to delays by the PTO. These PTO delays include a delay known as “A delay”, which refers to delays due to the PTO failing to respond to Applicant filings in a timely manner (e.g., failing to issue a first Office Action within 14 months of filing an application, and failing to issue a second Office Action or Notice of Allowance within four months of an applicant response), and a delay known as “B delay”, which refers to delays due to the PTO failing to issue a patent within three years of the actual filing date of the application.
To the extent that the “A delay” overlaps with the “B delay”, 35 U.S.C. § 154 includes an “overlap” provision that states: “To the extent that periods of delay … overlap, the period of any adjustment granted under this subsection shall not exceed the actual number of days the issuance of the patent was delayed.”
Prior to the decision in Wyeth v. Kappos, the PTO had interpreted this “overlap” provision as meaning that any “A delay” which occurs during the first three years of prosecution would necessarily overlap with any “B delay” because the “A delay” would contribute to the “B delay” . Thus, the PTO has been calculating PTA by giving the applicant the longer of the “A delay” or “B delay”. In Wyeth v. Kappos, the Federal Circuit has rejected this interpretation of the “overlap” provision by the PTO, and has held that the applicant is entitled to both the “A delay” and the “B delay”, less the amount of time that these delays overlap (i.e., the amount of “A delay” which occurs more than three years after the filing date of the application).
In view of the Federal Circuit decision in Wyeth v. Kappos, the PTO has posted a Notice on their website indicating that it is in the process of changing the manner of calculating PTA to conform with the Federal Circuit’s decision. Thus, as soon as the PTO implements this change, issued patents going forward should include the correct PTA calculation.
Recommended Actions: For any recently allowed applications that have been pending for more than three years, and for any recently issued patents that issued from an application that was pending for more than three years, please consider reviewing the PTA calculation in order to determine whether the PTO’s incorrect interpretation of the “overlap” provision resulted in an incorrect PTA calculation. Regarding the three year pendency period, please note that the filing of a Request for Continued Examination (RCE) during prosecution of the application cuts off any additional patent term adjustment due to failure of the PTO to issue a patent within three years (i.e., “B delay”).
For recently allowed applications, a request for reconsideration of the PTA calculation should be filed prior to the payment of the issue fee. For recently issued patents, a request for reconsideration of the PTA calculation must be filed within two months of the issue date of the patent. Thus, for any recently allowed applications, and for any patents that have issued within the past two months, if you believe that the PTA calculation may be incorrect due to the PTO’s improper interpretation of the “overlap” provision, please consider filing a request for reconsideration of the PTA calculation.
Additionally, for any patents that have issued more than two months ago, please note that applicants may seek review of the PTA calculation by filing suit in the United States District Court for the District of Columbia within 180 days after the grant of the patent. For patents that have issued more than six months ago, it is currently unclear whether there will be any recourse for patents which have an incorrect PTA calculation due to the PTO’s improper interpretation of the “overlap” provision.
If you would like for us to review the PTA calculation for any of your recently allowed applications or recently issued patents, please let us know.
If you have any questions regarding this information, please do not hesitate to contact us.