by: Rocco J. Screnci
This is the second post in a two-part series on obviousness-type double patenting (“ODP”). Part one summarized the two recent precedential Federal Circuit decisions in this area.
To sum up where last post left off: The Federal Circuit’s decision in Cellect initially seemed to drastically expand the application of ODP, and the Allergan decision limited the broadest readings of Cellect by explaining that later-filed, later-issued patents cannot be used as ODP references against the “first” patent in the family even if patent-term adjustment (“PTA”) awarded for Patent Office delays during prosecution means that the “first” patent expires later. At the same time, Allergan seemingly reaffirmed its earlier ODP cases, including Cellect, in which expiration date controlled the outcome. This leaves a few important takeaways.
First, Allergan did not disturb past cases applying ODP to invalidate later-filed and later-expiring patents. Indeed, Allergan contrasted its facts with those in past cases, like Abbvie Inc. v. Mathilda & Terence Kennedy Inst. of Rheumatology Tr., 764 F.3d 1366 (Fed. Cir. 2014), in which the patentee secured a second, later-expiring patent by filing a continuation that received 750 days more PTA than the first patent in the family, and Gilead Scis., Inc. v. Natco Pharma Ltd., 753 F.3d 1208 (Fed. Cir. 2014), in which the patentee secured a second, later-expiring patent by beginning a new application chain with a later priority date. With that in mind, it is important for defendants to always keep an eye on a plaintiff’s earlier-filed, earlier-expiring patents as potential grounds for invalidity against later-filed, later-expiring patents. And plaintiffs will need to keep its earlier-filed, earlier-patents in mind when developing their prosecution and Orange Book-listing strategies.
Second, Allergan left intact Cellect’s central holding: that the PTA-added expiration date is the expiration date that matters for ODP purposes. It will thus be important for ANDA filers to keep track of not just when Orange Book-listed patents expire, but also when the NDA holder’s other patents expire. What’s more, given that PTE and PTA are treated differently for ODP purposes, ANDA filers will want to account for both PTE- and PTA-added expiration dates when planning their filing strategies. On the flipside, NDA holders will want to consider revisiting their Orange Book-listed patents to see if any terminal disclaimers are necessary for later-filed patents with PTA.
Third, Allergan clarified that issuance date matters in the ODP analysis. This limits the available references that can be asserted to support an ODP defense. Defendants now know that they cannot simply invoke PTA-added expiration dates when arguing invalidity on ODP grounds. That said, the precise contours of Allergan’s holding on that point are a bit unclear.
On one hand, Allergan seems to shut the door on the idea that a later-filed, later-issued “child” patent without PTA can invalidate a “first” or “parent” patent. But that only invites the question of what it means to be a “first” or “parent” patent. Recall that the ODP reference patents in Allergan were not the immediate descendants of the challenged “first” patent in the family. The ODP reference 011 and 709 patents in Allergan were the metaphoric grandchild and great-grandchild, respectively, of the 356 patent. The 011 patent issued on a divisional of an application that itself was a continuation of the 356 patent’s application, and the 709 patent was a continuation of the 011 patent’s application. Indeed, the 356 patent issued before the applications leading to the 011 and 709 patent were filed. And the Federal Circuit emphasized those facts when explaining why the facts in Allergan exemplified why ODP did not apply. As a result, some may construe Allergan as narrowly applying to the precise fact pattern there: The patent issuing from the first nonprovisional application in the family cannot be invalidated by later-issued patents that were applied for only after the first patent issued. This could mean that patents issuing from continuations are still susceptible to attack, or that a different rule applies if the reference patent’s application was copending.
On the other hand, some may read Allergan as foreclosing ODP whenever the later-expiring patent was earlier filed and earlier issued than the would-be reference patents, even if the patents were copending and have different priority chains. This broad reading stems from Allergan’s favorably citing past cases in which the Federal Circuit declined to extend ODP to similar situations. See 111 F.4th at 1370. But those cases were limited to distinct scenarios or expressed their narrow views on ODP only in dicta. See Cellect, 81 F.4th at 1230 (“We do, however, note that the non-asserted claims in the challenged patents are entitled to their full term, including the duly granted PTA, unless they are found to be later-filed obvious variations of earlier-filed, commonly owned claims.”); Novartis AG v. Ezra Ventures LLC, 909 F.3d 1367, 1374 (Fed. Cir. 2018) (“[T]he traditional concern with obviousness-type double patenting” is not raised where “it is the earlier-filed, earlier issued ... patent, not the later-filed, later-issued ... patent, that has the later expiration date”); Novartis Pharms. Corp. v. Breckenridge Pharm. Inc., 909 F.3d 1355, 1366 (Fed. Cir. 2018), (declining to invalidate patent on ODP grounds “[i]n th[e] particular situation where we have an earlier-filed, earlier-issued. . . patent that expires after the later-filed, later-issued . . . patent due to a change in statutory patent term law”).
Of course, the real impact of Allergan is yet to be seen and likely lies somewhere between the narrowest and broadest possible readings. One can imagine a middle-ground approach that forecloses ODP as a form of patent patricide. In other words, the rule from Allergan would bar defendants from pitting later-filed, later-issued patents against the earlier-filed, earlier-issued patents in the same priority chain. This rule would potentially balance the Federal Circuit’s policy concerns about depriving patentees of their original patent terms while leaving room for the courts to curb any gamesmanship that may arise when patentees try to stagger priority chains to secure longer patent terms.
In any event, perhaps the most important takeaway from Allergan is that the Federal Circuit continues to develop its view on ODP case-by-case. In its latest cases addressing ODP, the Federal Circuit has carefully parsed its ODP jurisprudence to determine how ODP ought to apply to the issues on appeal. Allergan continues this trend by limiting earlier ODP cases to their particular facts and by narrowing Cellect to the issue framed by the appellant about how PTA interacts with ODP. This trend is important for two key reasons. First, it shows how critical it is for defendants to continue to identify and raise potential ODP defenses as the law in this area continues to develop, and for plaintiffs to anticipate these arguments when preparing for litigation. Second, it reminds all litigants to consider how they frame arguments. Given some of the Federal Circuit’s concerns in Allergan, perhaps the fact pattern in Cellect could have played out differently had the appellant taken a more moderate approach in urging to reverse the ODP determinations by the Patent Trial and Appeals Board.