The USPTO issued proposed new rules regarding claim practice and continuation practice in January 2006. New rules regarding IDS practice were also proposed by the USPTO in July 2006. Since being proposed, there has been substantial opposition to the proposed new rules by American patent lawyers. To date, no formal USPTO announcement regarding the proposed new rules has been made. A spokesperson for the USPTO states that the rules are still under consideration. WL&P will notify our clients of any developments regarding the proposed new rules when they occur.
Posted by: Warren M. Cheek, Jr.
The U.S. Supreme Court has ruled in an 8-1 decision that a patent licensee may challenge the validity of the licensed patent in a declaratory judgment action, even though the licensee is still paying royalties and is not in breach of the contract. MedImmune Inc. v. Genentech Inc., U.S., No. 05-608, slip op.1/9/07. The Court ruled that Medimmune need not stop paying royalties to Genentech in order to challenge the validity of Genentech's patent in a declaratory judgment action. The decision reversed the underlying Federal Circuit decision and overturns the Federal Circuit decision in Gen-Probe Inc. v. Vysis Inc., 350 F.3d 1376,70 USPQ2d 1087 (Fed. Cir. 2004).
As a result of the Court's decision, more patent licensees are expected to challenge the validity of the licensed patent, since it is no longer necessary to breach the license agreement and risk treble damages for infringement in order to challenge the patent.
Posted by: Warren M. Cheek, Jr.
