Latest 3 Cases This Week: Federal Trade Commission v. AbbVie Inc (3d Cir.), Apple Inc. v. Voip-Pal.com, Inc. (Fed. Cir.), Biogen MA Inc. v. EMD ...

Reflections on the Pending Supreme Court Challenge to the Affordable Care Act in California v. Texas: Part One in a Series

VIKRAM DAVID AMAR, EVAN CAMINKER, JASON MAZZONE

In this first of a series of columns on the latest prominent challenge to the Affordable Care Act (ACA), Illinois law dean Vikram David Amar, Michigan Law dean emeritus Evan Caminker, and Illinois law professor Jason Mazzone examine the stare decisis effects of the Supreme Court’s initial blockbuster decision involving the ACA. The authors demonstrate several, perhaps surprising, ways that the earlier decision should shape how the Court views the present challenge.

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Federal Trade Commission v. AbbVie Inc

Court: US Court of Appeals for the Third Circuit

Docket: 18-2621

Opinion Date: September 30, 2020

Judge: Hardiman

Areas of Law: Drugs & Biotech, Intellectual Property, Patents

AndroGel is a testosterone replacement therapy that generated billions of dollars in sales. The Federal Trade Commission sued under Section 13(b) of the Federal Trade Commission Act, alleging that AndroGel’s patent owners filed sham patent infringement suits against Teva and Perrigo and entered into an anticompetitive reverse-payment agreement with Teva. The FTC accused the patent owners of trying to monopolize and restrain trade over AndroGel. The District Court dismissed the FTC’s claims to the extent they relied on a reverse-payment theory but found the owners liable for monopolization on a sham-litigation theory and ordered disgorgement of $448 million in ill-gotten profits. The court denied the FTC’s request for an injunction. The Third Circuit reversed in part, holding that the district court erred by rejecting the reverse-payment theory and in concluding the owners’ litigation against Teva was a sham. The court erred by ordering disgorgement because that remedy is unavailable under Section 13(b) of the FTC Act. The court affirmed in part. The district court correctly concluded that the Perrigo litigation was a sham and that the owners had monopoly power in the relevant market but did not show the monopolization entitles the FTC to any remedy. The court did not abuse its discretion in denying injunctive relief.

Apple Inc. v. Voip-Pal.com, Inc.

Court: US Court of Appeals for the Federal Circuit

Docket: 18-1456

Opinion Date: September 25, 2020

Judge: Jimmie V. Reyna

Areas of Law: Intellectual Property, Patents

Voip-Pal’s patents, titled “Producing Routing Messages for Voice Over IP Communications,” describe the field of invention as “voice over IP communications and methods and apparatus for routing and billing” and relate to routing communications between two different types of networks—public and private. Voip-Pal sued Apple for infringement. Apple petitioned for inter partes review (IPR) of several claims of the asserted patents in two separate proceedings before the Patent Trial and Appeal Board, which determined that the claims not invalid for obviousness. The Federal Circuit affirmed the Board’s non-obviousness determinations as to certain claims and its sanctions ruling, based on a finding that Voip-Pal engaged in sanctionable ex parte communications. The Board’s decision to allow Apple to petition for rehearing before a new panel, and provide Apple with a meaningful opportunity to respond to VoipPal’s letters was a reasonable course of action. The court vacated with respect to 19 claims, on grounds of mootness.

Biogen MA Inc. v. EMD Serono, Inc.

Court: US Court of Appeals for the Federal Circuit

Docket: 19-1133

Opinion Date: September 28, 2020

Judge: Richard Linn

Areas of Law: Drugs & Biotech, Intellectual Property, Patents

Biogen’s patent is directed to a method of treating a viral condition, a viral disease, cancers, or tumors, by the administration of a pharmaceutically effective amount of a recombinant polypeptide related to human interferon-β (IFN-β). Biogen sued Serono, alleging contributory and induced infringement of the patent by the sale and marketing in the U.S. of Rebif, a recombinant IFN-β product used for the treatment of Multiple Sclerosis. A jury found that the patent claims were anticipated by two references teaching the use of native IFN-β to treat viral diseases; that the asserted claims not invalid for lack of enablement or written description, or for obviousness; that patients and prescribers directly infringed the asserted claims; and that Serono contributorily infringed the claims but did not induce infringement thereof. The district court granted judgment as a matter of law of no anticipation in favor of Biogen and conditionally granted a new trial on anticipation; sustained the jury’s verdict of no invalidity based on written description or enablement; overturned the verdict of no induced infringement; sustained the verdict of contributory infringement; and held that the claims were not patent ineligible. The Federal Circuit reversed with respect to anticipation and the conditional grant of a new trial. A reasonable jury could find the claims of the patent anticipated on the record presented. The court remanded with instructions to reinstate the verdict of anticipation.