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Pharmacia & Upjohn Company v. Mylan Pharmaceuticals, Inc.

Citations: 182 F.3d 1356; 51 U.S.P.Q. 2d (BNA) 1466; 1999 U.S. App. LEXIS 16015; 1999 WL 499450Docket: 99-1001

Court: Court of Appeals for the Federal Circuit; July 16, 1999; Federal Appellate Court

Narrative Opinion Summary

This case involves an appeal by Mylan Pharmaceuticals, Inc. regarding the denial of its motion for attorney fees under 35 U.S.C. § 285, following a patent infringement lawsuit initiated by Pharmacia Upjohn Co. concerning its patent on a glyburide formulation. Mylan's use of anhydrous lactose was alleged to infringe upon Upjohn's patent, which was concurrently found invalid and unenforceable in a separate case against Mova Pharmaceuticals Corp. The district court applied collateral estoppel from the Mova case, granting summary judgment of non-infringement for Mylan. Mylan's request for attorney fees was denied as the court did not find the case exceptional, citing the need for evidence of vexatious litigation or bad faith. On appeal, Mylan argued that the district court misapplied the legal standard and neglected to consider the inequitable conduct findings from the Mova case. The appellate court vacated the denial of fees and remanded for further proceedings, instructing the lower court to consider the relevance of the Mova verdict and reassess Upjohn's conduct. The court stressed that inequitable conduct could warrant fees under § 285 and highlighted the need for a substantive review of the claims of bad faith litigation tactics.

Legal Issues Addressed

Attorney Fees under 35 U.S.C. § 285

Application: The appellate court vacated the denial of attorney fees, remanding for consideration of inequitable conduct by the plaintiff.

Reasoning: The court vacated the district court's denial of fees and remanded for reconsideration of inequitable conduct.

Collateral Estoppel in Patent Litigation

Application: The court applied collateral estoppel based on a prior verdict in a related case, which influenced the summary judgment of non-infringement for Mylan in this case.

Reasoning: The Mova ruling was pivotal, as the court in the Mylan case applied collateral estoppel based on the Mova verdict, leading to a summary judgment of non-infringement for Mylan.

Exceptional Case Standard for Attorney Fees

Application: The court clarified that not every improper allegation or resistance to collateral estoppel automatically leads to an award of attorney fees; a finding of unfairness or bad faith is required.

Reasoning: However, the court clarifies that not every improper allegation or resistance to collateral estoppel automatically leads to an award of attorney fees; a finding of unfairness or bad faith is required.

Prosecution History Estoppel and Doctrine of Equivalents

Application: The court determined that prosecution history estoppel prevented the '163 patent from covering Mylan's formulations under the doctrine of equivalents.

Reasoning: The district court determined that prosecution history estoppel prevented the '163 patent from covering Mylan's formulations under the doctrine of equivalents.