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Justia Daily Opinion Summaries

US Court of Appeals for the Federal Circuit
November 10, 2020

Table of Contents

In Re Apple Inc.

Civil Procedure, Intellectual Property, Patents

Hessami v. Merit Systems Protection Board

Government & Administrative Law, Labor & Employment Law

Donner Technology, LLC v. Pro Stage Gear, LLC

Intellectual Property, Patents

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Legal Analysis and Commentary

The Affordable Care Act Challenge and the Senate Runoff Elections in Georgia

MICHAEL C. DORF

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Cornell law professor Michael C. Dorf comments on the third challenge to the Affordable Care Act (ACA) that has made it before the U.S. Supreme Court, and considers how the case will play in the upcoming Georgia runoff elections. Dorf argues that absent a dramatic and highly unusual development—like a Supreme Court decision rejecting the ACA challenge in the next few weeks—that should help the Democratic candidates in Georgia’s runoff elections.

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US Court of Appeals for the Federal Circuit Opinions

In Re Apple Inc.

Docket: 20-135

Opinion Date: November 9, 2020

Judge: Per Curiam

Areas of Law: Civil Procedure, Intellectual Property, Patents

Uniloc sued Apple for patent infringement in the Western District of Texas (WDTX). Apple moved to transfer the case to the Northern District of California (NDCA), arguing that it would be clearly more convenient to litigate the case there, 28 U.S.C. 1404(a). Apple moved to stay activity in the case unrelated to its transfer motion. The district court denied the stay motion without explanation, then held a hearing on Apple’s transfer motion and stated that it would deny the motion and issue a written order soon. After the hearing, but before issuing a written order, the court held a Markman hearing, issued its claim construction order, held a discovery hearing regarding protective order, and issued a corresponding discovery order. Apple filed a petition for a writ of mandamus, which the Federal Circuit granted. The “district court barreled ahead on the merits in significant respects” and clearly abused its discretion in denying transfer. The district court erred by failing to meaningfully consider the wealth of important information in NDCA and misapplied the law by giving too much significance to the fact that the inventors and patent prosecutor live closer to WDTX than NDCA and in concluding that judicial economy weighed against transfer because NDCA has more pending cases than WDTX.

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Hessami v. Merit Systems Protection Board

Docket: 19-2291

Opinion Date: November 9, 2020

Judge: Jimmie V. Reyna

Areas of Law: Government & Administrative Law, Labor & Employment Law

Dr. Hessami was the Chief of Pharmacy at a West Virginia VA Medical Center when the first curative therapies for Hepatitis C Virus infection (HCV) entered the market. The Center struggled to provide patients with access to the enormously expensive but life-saving new therapies. The Regional Veteran Integrated Service Network funded and provided treatment guidelines for administration of HCV therapies. Hessami was familiar with HCV treatment guidelines, monitored all purchases of HCV medications, and provided information to the VISN. Hessami repeatedly raised concerns about the prescribing practices of one physician, asserting that treatment decisions were unnecessarily exposing patients to increased risk of adverse drug reactions and side effects, and overspending the Center’s HCV funds. Hessami claims that her comments were met with hostile, derogatory statements. A pharmacy employee accused Hessami of misconduct. Hessami was suspended and later demoted. The Merit Systems Protection Board dismissed her claim that she had been accused of wrongdoing and punished in reprisal for her protected disclosures regarding the agency’s spending. The Federal Circuit vacated. When determining whether an appellant has non-frivolously alleged that she disclosed information that she reasonably believed evidenced misconduct under the Whistleblower Protection Enhancement Act, 5 U.S.C. 2302(b)(8), the Board’s inquiry should be limited to evaluating whether the appellant has alleged sufficient factual matter, accepted as true, to state a claim that is plausible on its face. The Board erroneously relied on the testimony of agency witnesses in dismissing Hessami’s appeal.

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Donner Technology, LLC v. Pro Stage Gear, LLC

Docket: 20-1104

Opinion Date: November 9, 2020

Judge: Sharon Prost

Areas of Law: Intellectual Property, Patents

Guitar effects pedals are electronic devices that affect the amplified sound of a guitar., usually placed on a pedalboard and controlled by foot operation. Pro Stage’s 023 patent asserts that prior art pedalboards were essentially wooden boards to which guitar effects pedals were mounted. IThe patent explained that there was a need for “an improved pedal effects board which allows easy positioning and changing of the individual guitar effects while providing a confined and secure area for cable routing and placement.” On inter partes review, the Patent Trial and Appeal Board rejected Donner’s arguments that the claims were invalid as obvious under 35 U.S.C. 103, finding that Donner did not prove that “Mullen” is analogous art. The Federal Circuit vacated and remanded. While the 023 patent and Mullen are not from the same field of endeavor, the Board also failed to properly identify and compare the purposes or problems to which Mullen and the patent relate. The Board’s articulation of the purpose of or problem to be solved by the 023 patent is so intertwined with the patent’s field of endeavor that it would effectively exclude consideration of any references outside that field.

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