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GENETICS & IVF INSTITUTE v. Kappos

Citations: 801 F. Supp. 2d 497; 100 U.S.P.Q. 2d (BNA) 1114; 2011 U.S. Dist. LEXIS 79287; 2011 WL 2971982Docket: 1:10cv996 JCC/TRJ

Court: District Court, E.D. Virginia; July 21, 2011; Federal District Court

Narrative Opinion Summary

In the case of *Genetics. IVF Institute v. Kappos*, the U.S. District Court for the Eastern District of Virginia addressed cross-motions for summary judgment concerning the denial of a patent term extension under the Hatch-Waxman Act by the USPTO. The plaintiff, Genetics IVF Institute, challenged this denial, arguing that the USPTO's refusal to grant a second extension for U.S. Patent No. 5,135,759 was arbitrary and capricious. The patent, related to methods for preselecting the sex of offspring, was initially extended due to pending FDA approval but faced expiration as a second extension application was filed late. The court upheld the USPTO's decision, emphasizing the mandatory nature of the statutory timing under 35 U.S.C. 156(d)(5)(C), which requires timely application submission without granting the USPTO discretion for late filings. The court also affirmed the USPTO's interpretation under Chevron deference, finding it reasonable within the regulatory framework. Ultimately, the court granted summary judgment in favor of the defendants, reinforcing the agency's adherence to statutory deadlines and procedural requirements while dismissing the plaintiff's motion.

Legal Issues Addressed

Chevron Deference in Agency Interpretation

Application: The court deferred to the USPTO’s interpretation of 35 U.S.C. 156(d)(5)(C) under the Chevron deference, finding it reasonable and permissible within the agency’s regulatory framework.

Reasoning: The court finds the USPTO's interpretation reasonable and permissible, aligning with the Federal Circuit's stance that the agency's interpretation need not be the sole or preferred construction, only a reasonable one.

Judicial Review under the Administrative Procedure Act

Application: The court applied the APA standard of review, emphasizing that agency actions are only set aside if deemed arbitrary, capricious, or unlawful.

Reasoning: The standard for review under the Administrative Procedure Act (APA) allows a court to set aside agency action deemed arbitrary, capricious, or unlawful, as referenced in PhotoCure ASA v. Dudas.

Mandatory vs. Discretionary Language in Statutes

Application: The court interpreted the statutory term 'shall' as imposing a mandatory obligation on the applicant to file within a defined timeframe, leaving no discretion for the USPTO to accept late applications.

Reasoning: The critical phrase 'shall be made' is scrutinized, particularly since 'shall' is not explicitly defined in the Patent Act.

Patent Term Extensions under the Hatch-Waxman Act

Application: The court upheld the denial of a patent term extension due to the applicant's failure to meet statutory deadlines, affirming that extensions are not automatic and must comply with specific criteria.

Reasoning: The ruling underscored the procedural requirements and limitations imposed on patent holders seeking extensions, particularly emphasizing the timing and conditions outlined in 35 U.S.C. 156.

Procedural Requirements for Patent Term Extension

Application: The court highlighted the necessity for applicants to comply with procedural timelines, rejecting the argument that the USPTO has discretion to accept late applications.

Reasoning: The USPTO defended its position by emphasizing the mandatory nature of the statutory timing provisions under 35 U.S.C. 156(d)(5)(C) and the importance of timely notice regarding patent extensions.