Supreme Court Patent Case of the Week: Philadelphia & Trenton R. Co. v. Stimpson

June 16th, 2016

39 U.S. 448 (1840)14 Pet. 448

THE PHILADELPHIA AND TRENTON RAILROAD COMPANY, PLAINTIFFS IN ERROR,
vs.
JAMES STIMPSON, DEFENDANT IN ERROR.

Supreme Court of United States.

451*451 The case was argued by Mr. Coxe, and Mr. Southard, for the plaintiffs in error; and by Mr. J.R. Ingersoll, for the defendant.

457*457 Mr. Justice STORY delivered the opinion of the Court.

This is a writ of error to the judgment of the Circuit Court for the Eastern District of Pennsylvania, rendered in an action brought by Stimpson, the defendant in error, against the plaintiffs in error, for a violation of a patent right granted to him for a new and useful improvement in the mode of turning short curves on railroads.

A patent was originally granted to Stimpson, for the same invention, on the 23d day of August, 1831; and the renewed patent, upon which the present suit is brought, was granted on the 26th of 458*458 September, 1835, upon the former letters patent “being cancelled on account of a defective specification;” and the renewed patent was for the term of fourteen years from the date of the original patent. With the exception of the recital of the fact that the former letters patent were cancelled “on account of a defective specification,” and the statement of the prior date from which the renewed patent was to begin to run, the renewed patent is in the precise form in which original patents are granted.

At the trial upon the general issue, a bill of exceptions was taken to certain rulings of the Court upon points of evidence, to the consideration of which we shall at once proceed without any further preface.

The first exception taken is to the admission of the renewed patent as evidence in the cause to the jury. The patent act of 1832, ch. 162, sec. 3, under which this patent was obtained, provides, that whenever any patent shall be inoperative or invalid, by reason that any of the terms or conditions prescribed by the prior acts of Congress, have not, by inadvertence, accident, or mistake, and without any fraudulent or deceptive intention, been complied with on the part of the inventor, it shall be lawful for the Secretary of State, upon the surrender to him of such patent, to cause a new patent to be granted to the inventor, for the same invention, for the residue of the period then unexpired for which the original patent was granted, upon his compliance with the terms and conditions prescribed by the third section of the act of the 21st of February, 1793, ch. 55.

Now, the objection is, that the present patent does not contain any recitals that the prerequisites thus stated in the act have been complied with, viz. that the error in the former patent has arisen by inadvertency, accident, or mistake, and without any fraudulent or deceptive intention; and that without such recitals, as it is the case of a special authority, the patent is a mere nullity, and inoperative. We are of opinion that the objection cannot, in point of law, be maintained. The patent was issued under the great seal of the United States, and is signed by the President, and countersigned by the Secretary of State. It is a presumption of law, that all public officers, and especially such high functionaries, perform their proper official duties until the contrary is proved. And where, as in the present case, an act is to be done, or patent granted upon evidence and proofs to be laid before a public officer, upon which he is to decide, the fact that he has done the act or granted the patent, is prima facie evidence that the proofs have been regularly made, and were satisfactory. No other tribunal is at liberty to re-examine or controvert the sufficiency of such proofs, if laid before him, when the law has made such officer the proper judge of their sufficiency and competency. It is not, then, necessary for the patent to contain any recitals that the prerequisites to the grant of it have been duly complied with, for the law makes the presumption; and if, indeed, it were otherwise, the recitals would not help the case without the 459*459 auxiliary proof that these prerequisites had been, de facto, complied with. This has been the uniform construction, as far as we know in all our Courts of justice upon matters of this sort. Patents for lands, equally with patents for inventions, have been deemed prima facie evidence that they were regularly granted, whenever they have been produced under the great seal of the government; without any recitals or proofs that the prerequisites of the acts under which they have been issued have been duly observed. In cases of patents, the Courts of the United States have gone one step further, and as the patentee is required to make oath that he is the true inventor, before he can obtain a patent, the patent has been deemed prima facie evidence that he has made the invention. This objection, then, is overruled; and there was no error in the Circuit Court in the admission of the patent.

The next exception is to the refusal of the Court to allow a witness, Josiah White, to give a description of an invention which he had seen on the Mauch Chunk railroad, in 1827, which had a groove on one side, and run on the other on a flange for crossing, for the purpose of showing that the supposed invention of the plaintiff was known and in use by others, before the date of his patent. By the patent act of 1836, (which was applicable to the present point,) it is provided in the fifteenth section, that whenever the defendant relies in his defence on the fact of a previous invention, knowledge, or use of the thing patented, he shall state in his notice of special matter to be used in his defence, the names and places of residence of those, whom he intends to prove to have possessed a prior knowledge of the thing, and where the same had been used. The object of this most salutary provision is to prevent patentees being surprised at the trial of the cause, by evidence of a nature which they could not be presumed to know, or be prepared to meet, and thereby to subject them either to most expensive delays, or to a loss of their cause. It is incumbent on those who seek to show that the examination of a witness has been improperly rejected, to establish their right to have the evidence admitted; for the Court will be presumed to have acted correctly, until the contrary is established.

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Wheaton et al. v. Peters et al., 33 U.S. 591 (1834)

June 9th, 2016

A few years ago, I started a regular feature of posting the text of Supreme Court decisions that involved patents in some way.  The idea was to start with the earliest Supreme Court decisions and work toward present day.  Somehow that feature went off the rails.  So, let’s pick up again in 1834 with Wheaton et al. v. Peters et al., 33 U.S. 591 (1834), a copyright case that discusses the relationship between patents and copyrights:

HENRY WHEATON AND ROBERT DONALDSON, APPELLANTS
v.
RICHARD PETERS AND JOHN GRIGG.

Supreme Court of United States.

595*595 The case was argued by Mr Paine and Mr Webster, for the appellants; and by Mr Ingersoll, by a printed argument, and Mr Sergeant, for the defendants.

654*654 Mr Justice M’LEAN delivered the opinion of the Court.

After stating the case, he proceeded:

Some of the questions which arise in this case are as novel, in this country, as they are interesting. But one case involving similar principles, except a decision by a state court, has occurred; and that was decided by the circuit court of the United States for the district of Pennsylvania, from whose decree no appeal was taken.

The right of the complainants must be first examined. If this right shall be sustained as set forth in the bill, and the defendants shall be proved to have violated it, the court will be bound to give the appropriate redress.

The complainants assert their right on two grounds.

First, under the common law.

Secondly, under the acts of congress.

And they insist, in the first place, that an author was entitled, at common law, to a perpetual property in the copy of his works, and in the profits of their publication; and to recover damages for its injury, by an action on the case, and to the protection of a court of equity.

In support of this proposition, the counsel for the complainants have indulged in a wide range of argument, and have shown great industry and ability. The limited time allowed for the preparation of this opinion, will not admit of an equally extended consideration of the subject by the court.

Perhaps no topic in England has excited more discussion, among literary and talented men, than that of the literary property of authors. So engrossing was the subject, for a long time, as to leave few neutrals, among those who were distinguished 655*655 for their learning and ability. At length the question, whether the copy of a book or literary composition belongs to the author at common law, was brought before the court of king’s bench, in the great case of Miller v. Taylor, reported in 4 Burr. 2303. This was a case of great expectation; and the four judges, in giving their opinions, seriatim, exhausted the argument on both sides. Two of the judges, and Lord Mansfield held, that, by the common law, an author had a literary property in his works; and they sustained their opinion with very great ability. Mr Justice Yeates, in an opinion of great length, and with an ability, if equalled, certainly not surpassed, maintained the opposite ground.

Previous to this case, injunctions had issued out of chancery to prevent the publication of certain works, at the instance of those who claimed a property in the copyright, but no decision had been given. And a case had been commenced, at law, between Tonson and Collins, on the same ground, and was argued with great ability, more than once, and the court of king’s bench were about to take the opinion of all the judges, when they discovered that the suit had been brought by collusion, to try the question, and it was dismissed.

This question was brought before the house of lords, in the case of Donaldson v. Beckett and others, reported in 4 Burr. 2408.

Lord Mansfield, being a peer, through feelings of delicacy, declined giving any opinion. The eleven judges gave their opinions on the following points. 1st. Whether at common law an author of any book or literary composition, had the sole right of first printing, and publishing the same for sale; and might bring an action against any person who printed, published and sold the same, without his consent. On this question there were eight judges in the affirmative, and three in the negative.

2d. If the author had such right originally, did the law take it away, upon his printing and publishing such book or literary composition; and might any person, afterward, reprint and sell, for his own benefit, such book or literary composition, against the will of the author. This question was answered in the affirmative, by four judges, and in the negative by seven.

3d. If such action would have lain, at common law, is it taken away by the statute of 8 Anne; and is an author, by 656*656 the said statute, precluded from every remedy, except on the foundation of the said statute, and on the terms of the conditions prescribed thereby. Six of the judges, to five, decided that the remedy must be under the statute.

4th. Whether the author of any literary composition, and his assigns, had the sole right of printing and publishing the same in perpetuity, by the common law. Which question was decided in favor of the author, by seven judges to four.

5th. Whether this right is any way impeached, restrained or taken away, by the statute 8 Anne? Six, to five judges, decided that the right is taken away by the statute. And the lord chancellor, seconding Lord Camden’s motion to reverse, the decree was reversed.

It would appear from the points decided, that a majority of the judges were in favor of the common law right of authors, but that the same had been taken away by the statute.

The title and preamble of the statute, 8 Anne, ch. 19, is as follows: “An act for the encouragement of learning by vesting the copies of printed books in the authors or purchasers of such copies, during the times therein mentioned.

“Whereas printers, booksellers and other persons, have of late frequently taken the liberty of printing, reprinting and publishing, or causing to be printed, reprinted and published, books and other writings without the consent of the authors or proprietors of such books and writings, to their very great detriment, and too often to the ruin of them and their families,” &c.

In 7 Term Rep. 627, Lord Kenyon says, “all arguments in the support of the rights of learned men in their works, must ever be heard with great favor by men of liberal minds to whom they are addressed. It was probably on that account that when the great question of literary property was discussed, some judges of enlightened understanding went the length of maintaining, that the right of publication rested exclusively in the authors and those who claimed under them for all time; but the other opinion finally prevailed, which established that the right was confined to the times limited by the act of parliament. And, that, I have no doubt, was the right decision.”

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The Judges of the Federal Circuit

May 25th, 2016
Front (L to R) Judges Clevenger, Plager, Newman, Prost, Mayer, Lourie, and Schall.  Back (L to R) Judges Hughes, Taranto, Reyna, Moore, Linn, Bryson, Dyk, O'Malley, Wallach, Chen and Stoll.  Click on image for a larger view.

Front (L to R) Judges Clevenger, Plager, Newman, Prost, Mayer, Lourie, and Schall. Back (L to R) Judges Hughes, Taranto, Reyna, Moore, Linn, Bryson, Dyk, O'Malley, Wallach, Chen, and Stoll. (Click on image for a larger view).

The judges are seated according to seniority/tenure on the court. For example, Chief Judge Prost is seated in the middle of the front row, as the most senior. To her right is Judge Newman who has the longest tenure on the court. To Chief Judge Prost’s left is Judge Mayer, who has the second longest tenure on the court after Judge Newman. The seating continues to alternate about Chief Judge Prost by tenure. In the back row, the arrangement by tenure continues and is centered about Judge Bryson. The court’s two newest appointees, Judges Hughes and Stoll, bookend the back row.

Panel Shopping?

May 24th, 2016

One would think that it would be impossible to panel shop at the Federal Circuit; but, I wonder if clever litigants have done so to a limited extent.  For example, I noticed that Judge Dyk frequently sits by designation with the US Court of Appeals for the First Circuit during the last week of July/first week of August.  Presumably, he does not sit with the Federal Circuit in August during those years.  Therefore, I wonder if an appellant has ever cared enough about not having Judge Dyk on the panel that it calculated the average time for briefing etc. and strategically filed the notice of appeal on a date that would most likely have the Federal Circuit hear the argument in August?  I suppose that there’s a pattern as to when senior judges hear oral arguments, as well.  For example, a litigant with a 101 issue might not want — let’s just pick a random judge, Judge Mayer — to hear its case. I wonder if such a litigant has ever looked at the history of appearances and strategized accordingly.  Of course, such litigants would have been significantly limited by the narrow window that one has to file a notice of appeal after a decision by a lower tribunal.

The Federal Circuit can easily counter such tactics by being random with its scheduling.

Oral Argument of Enfish v. Microsoft

May 13th, 2016

If you are interested in listening to the oral argument from this week’s important decision in Enfish v. Microsoft, the oral argument recording is available [here].

The decision is available [here].

An audio key to each judge’s voice is available [here].

Rule 36 Opinions Still Being Relied Upon

May 6th, 2016

It is interesting that in the May 2016 Subject Matter Eligibility Guidance, the USPTO continues to rely upon Rule 36 opinions as being instructive.  The Federal Circuit does not always address all issues on appeal to reach an affirmance of the Board.  For example, in In re Gleave the court stated:

Therefore, we affirm the Board’s rejection of claims 1, 4, 15, and 18-21 of the ‘493 application under § 102(b). We need not reach the § 103 obviousness rejection.

In re Gleave, 560 F. 3d 1331, 1338 (Fed. Cir. 2009)

To the extent that an appeal resolved by a Rule 36 opinion contained more than a §101 rejection, how can the USPTO be certain that the Federal Circuit was affirming the rationale of the §101 rejection rather than just a §103 rejection, for example?

Moreover, I’m reminded of Judge Moore’s comment in  the oral argument of In re Collins, App. No. 2011-1293 (Fed. Cir. 2012). Judges Moore and Reyna took the PTO to task for a sloppy rejection of a claim.   An exasperated Judge Moore would remark “I think this is a terrible rejection.  I think you all [USPTO] have done a really sloppy job.  . . . This is ridiculous.  This is a bad rejection.  There’s a good rejection you could have made.  This isn’t it.“   [Listen] and [Listen].  The Board was affirmed by a Rule 36 opinion in that case.

Finallly, do a search of the MPEP.  See if you can find any place in the MPEP where the USPTO relies upon Rule 36 opinions of the Federal Circuit.

May 2016 Subject Matter Eligibility Guidance Update

May 4th, 2016

If you’re about to submit a response to a §101 rejection, please note that the May 2016 Subject Matter Eligibility Guidance Update was announced today.  Here is the link to the updated materials on the United States Patent and Trademark Office web site:  [link].

National Patent Prosecution Day . . . .

April 26th, 2016

I suppose that if there were ever to be a National Patent Prosecution Day, it would have to be celebrated on May 2nd.  After all, that is the anniversary of the Topliff v. Topliff decision in which the Supreme Court of the United States acknowledged:

The specification and claims of a patent, particularly if the invention be at all complicated, constitute one of the most difficult legal instruments to draw with accuracy, and in view of the fact that valuable inventions are often placed in the hands of inexperienced persons to prepare such specifications and claims, it is no matter of surprise that the latter frequently fail to describe with requisite certainty the exact invention of the patentee, and err either in claiming that which the patentee had not in fact invented, or in omitting some element which was a valuable or essential part of his actual invention.

Topliff v. Topliff, 145 U.S. 156, 171 (1892).

I suppose another candidate would be June 16th. That is the anniversary of Diamond v. Chakrabarty:

The Committee Reports accompanying the 1952 Act inform us that Congress intended statutory subject matter to “include anything under the sun that is made by man.” S. Rep. No. 1979, 82d Cong., 2d Sess., 5 (1952); H. R. Rep. No. 1923, 82d Cong., 2d Sess., 6 (1952).

Diamond v. Chakrabarty, 447 U.S. 303, 100 S. Ct. 2204, 65 L. Ed. 2d 144 (1980).

Odds and Ends

April 6th, 2016

Just a few odds and ends:

1)  Patently-O’s birthday is today. Can you guess how many years?  Happy Birthday, Patently-O!

2)  Those filing patent cases in Delaware in hopes of having noted patent jurist Judge Sue Robinson hear their case might want to take note that Judge Robinson is slated to take senior status next February. [source]  Congratulations, Judge Robinson.  Judge Robinson sat by designation with the Federal Circuit back in 2007.

3)  Temple Grandin received her own kids’ playing card from the USPTO over the weekend.   [Source].  Congratulations, Dr. Grandin.

Magic Microscope Anniversary

April 4th, 2016

The Department of Justice stepped in to argue the AMP v. Myriad case five years ago today. It was during that argument at the Federal Circuit that the patent world got to hear about the DOJ’s “Magic Microscope” test.  One year later, the case would make its way to the Supreme Court, where the PTO did not join in briefing the case.  That contrasts with Cuozzo v. Lee, currently pending at the Supreme Court, in which both the PTO and the SG’s Office are briefing the case together.

© Johnson and Vobach 2016

Judge Moore noted the Magic Microscope test in her concurring opinion in the case:

Although the Patent Office has consistently followed the same policy for a decade (and arguably a century or more), the United States, as an amicus represented at argument by the Solicitor General, now argues that the Patent Office’s published guidelines are incorrect and a misstatement of the law. In place of these guidelines, the Solicitor General suggested that we should use a “magic microscope” as part of our section 101 analysis. If we could observe the claimed substance in nature using this microscope, the Solicitor General argues, it is not patentable. The magic microscope test applies equally to portions of a larger, naturally occurring molecule. For example, the optical field of view could be zoomed to see just a sequence of fifteen nucleotides within the chromosome. As long as you could “see” the claimed molecule in nature using the magic microscope, it would fall into the “laws of nature” exception and be unpatentable subject matter.

Certainly the magic microscope has curb appeal—its child-like simplicity an apparent virtue. The magic microscope, however, would not see the claimed DNA molecules at issue in this case. An isolated DNA molecule has different chemical bonds as compared to the “unisolated” sequence in the chromosome (the ends are different). In short, the claimed molecules cannot be seen in nature through the magic microscope. While you may be able to see the order of DNA nucleotides in the chromosome, the isolated fragment of 1369*1369 DNA is a different molecule. It may be that the microscope can also break and form chemical bonds to yield the claimed isolated DNA. Even so, the microscope must make some decisions: should the isolated DNA begin and end in a phosphate? a hydrogen? a hydroxyl? a methyl group? an acyl group? These decisions might be obvious to a person of ordinary skill in the art, but they are not inherent to the unisolated sequence as part of the chromosome. Creating the claimed isolated DNA sequences therefore results in a distinctly unnatural molecule. Even the dissent agrees that the isolated DNA molecules at issue require cleaving chemical bonds, though it disputes the importance of the resulting distinct “`molecular species.'” Dissent at 1375 (quoting Linus Pauling, The Nature of the Chemical Bond 6 (3d ed.1960)). The magic microscope test simply does not work the way the government claims.

Ass’n for Molecular Pathology v. US Patent and Trademark Office, 653 F.3d 1329, 1368-69 (Fed. Cir. 2011)(Judge Moore concurring).

Justice Thomas announcing the Alice v. CLS decision

March 31st, 2016

I don’t believe that I ever posted Justice Thomas making the announcement of the Alice v. CLS decision.   You can listen to that announcement [here].

Nominate an inventor for the National Medal of Technology and Innovation

March 30th, 2016

The deadline is quickly approaching for nominating inventors for the National Medal of Technology and Innovation. If you are without a nominee and disillusioned by the Supreme Court’s patent eligibility test, I would have suggested that you consider nominating the inventors from the patent that was deemed patent ineligible in Ariosa v. Sequenom, 788 F.3d 1371 (Fed. Cir. 2015) — that’s Patent No. 6,258,540. However, I suspect that those inventors are British.

From the USPTO website:

Nominations Sought for National Medal of Technology and Innovation

The Department of Commerce’s United States Patent and Trademark Office (USPTO) is seeking nominations for the 2016 National Medal of Technology and Innovation.
January 13, 2016
Press Release 16-01

CONTACT: (Media Only)
Paul Fucito or Sarah Maxwell
(571) 272-8400 or paul.fucito@uspto.gov(link sends e-mail) or sarah.maxwell@uspto.gov(link sends e-mail)

Washington – The Department of Commerce’s United States Patent and Trademark Office (USPTO) is seeking nominations for the 2016 National Medal of Technology and Innovation. The medal is presented each year by the President of the United States and is this country’s highest award for technological achievement.

The medal is awarded annually to individuals, teams (up to four individuals), companies or divisions of companies for their outstanding contributions to America’s economic, environmental and social well-being. By highlighting the national importance of technological innovation, the medal also seeks to inspire future generations of Americans to prepare for and pursue technical careers to keep America at the forefront of global technology and economic leadership.

The USPTO administers the medal program on behalf of the Secretary of Commerce. Detailed information about the requirements for submission of a nomination as well as a nomination form can be downloaded at NMTI Nominations. All completed nominations must be submitted to the USPTO by midnight (ET), April 1, 2016.

For more information about the process, please contact: nmti@uspto.gov(link sends e-mail).

Updated Federal Circuit Rules of Practice

March 30th, 2016

From the Federal Circuit web site (last accessed 3/30/2016):

2016-03-29 21:39

The United States Court of Appeals for the Federal Circuit has amended the Federal Circuit Rules of Practice. The new rules are available here including a summary of changes. The amendments are extensive and include incorporating the terms of the Administrative Order Regarding Electronic Case Filing dated May 17, 2012; revising the requirements for confidential markings; as well as other updates, conforming changes and editorial corrections throughout. The revised rules are effective and shall apply to all appeals docketed on or after Friday, April 1, 2016. The notice version of the Rules of Practice 2016 will soon be replaced by a new web-structure version with enhanced electronic functionality.

Washington and Lee to serve as “continuity of operations” site for CAFC

March 24th, 2016

 The Federal Circuit visited Washington and Lee University yesterday to hear oral arguments.  Washington and Lee has been named as the “continuity of operations”* site for the Federal Circuit in the event of an emergency.

The Federal Circuit will now sit at Washington and Lee once each year.  [Source]

*Continuity of Operations, as defined in the National Security Presidential Directive-51/Homeland Security Presidential Directive-20 (NSPD-51/HSPD-20) and the National Continuity Policy Implementation Plan (NCPIP), is an effort within individual executive departments and agencies to ensure that Primary Mission Essential Functions (PMEFs) continue to be performed during a wide range of emergencies, including localized acts of nature, accidents and technological or attack-related emergencies.

“Redundant” is the new “Abstract”

March 23rd, 2016

There was a great quote in the dissent by Judge Reyna in the Shaw Industries Group, Inc. v. Automated Creel Systems, Inc. decision published today.

Judge Reyna quotes the Burlington Truck Lines case from the Supreme Court:

“Expert discretion is the lifeblood of the administrative process, but unless we make the requirements for administrative action strict and demanding, expertise, the strength of modern government, can become a monster which rules with no practical limits on its discretion.” Burlington Truck Lines, Inc. v. United States, 371 U.S. 156, 167 (1962) (internal quotation marks omitted).

Your natural inclination might be to think that Judge Reyna was referring to the PTO’s unbridled enthusiasm for declaring claims “abstract” without the citation of any evidence to substantiate such an assertion.  In this case, however, the issue was the redundancy doctrine and how it is applied in inter partes reviews.  Apparently, “redundant” is the new “abstract.”

You can read the opinion here: [Link].