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Alzheimer's Institute of America, Inc. v. Avid Radiopharmaceuticals

Citations: 292 F.R.D. 247; 2013 WL 3305738; 2013 U.S. Dist. LEXIS 91793Docket: Civil Action No. 10-6908

Court: District Court, E.D. Pennsylvania; July 1, 2013; Federal District Court

Narrative Opinion Summary

The case revolves around a motion filed by the University of South Florida Board of Trustees (USF) to amend pleadings under Federal Rule of Civil Procedure 15(b)(2) to include a counterclaim asserting ownership of certain patents. These patents were initially claimed by Alzheimer’s Institute of America (AIA) in a patent infringement action against Avid Radiopharmaceuticals and the University of Pennsylvania. USF sought a declaration of ownership based on the employment of the inventor at USF during the invention's conception but faced opposition from AIA, which argued it did not consent to litigate ownership issues and would be prejudiced by the amendment. The court had previously acknowledged USF's potential ownership but required a trial due to contested inventorship facts. Ultimately, the court denied USF’s motion to amend, concluding that the issue of ownership was not fully litigated by consent and that allowing the amendment would prejudice AIA, who was prevented from asserting certain defenses at trial. The decision underscores the importance of consent and the prohibition of prejudice in amending pleadings, as well as the complexities involved in establishing patent ownership rights when multiple affiliations and inventors are involved.

Legal Issues Addressed

Amendment of Pleadings under Federal Rule of Civil Procedure 15(b)(2)

Application: The court denied USF's motion to amend pleadings to include a counterclaim for patent ownership, finding that the issue was not fully litigated with the consent of the parties, and allowing the amendment would prejudice AIA.

Reasoning: The court found that USF's ownership interest was not fully litigated with the consent of the parties, as required by the Rule, and allowing the amendment would prejudice AIA.

Establishment of Patent Ownership

Application: The court noted contested material facts regarding inventorship and ownership, emphasizing that the jury did not determine patent ownership and USF's proposed amendment was inconsistent with trial evidence.

Reasoning: The jury did not determine patent ownership, and USF’s proposed amendment to assert ownership is inconsistent with the evidence presented at trial, which indicated that Mullan, who assigned rights to AIA, was a co-inventor.

Prejudice to Opposing Party in Amending Pleadings

Application: The court held that AIA would be prejudiced by USF's amendment to assert ownership claims late in the proceedings as AIA was barred from asserting defenses such as equitable estoppel.

Reasoning: AIA also contends that it would suffer prejudice from the amendment since it was not permitted to assert defenses like equitable estoppel and laches during the trial.

Trial by Consent for Unpleaded Issues

Application: The court evaluated whether USF's ownership claims were tried by consent, considering recognition of the issue, lack of objection to evidence, and potential prejudice to AIA, ultimately concluding the issue was not fully litigated by consent.

Reasoning: Determining implied consent involves three factors: (1) whether the parties recognized the unpleaded issue during trial, (2) whether the opposing party acquiesced by not objecting to evidence related to the issue, and (3) whether the opposing party faced prejudice in responding to the issue.