{"id":3470,"date":"2023-01-20T15:30:00","date_gmt":"2023-01-20T21:30:00","guid":{"rendered":"https:\/\/patents.harnessip.com\/?p=3470"},"modified":"2023-02-19T09:46:32","modified_gmt":"2023-02-19T15:46:32","slug":"pmc-patent-is-unenforceable-because-an-applicant-must-prosecute-its-applications-in-an-equitable-way-even-though-the-uspto-doesnt","status":"publish","type":"post","link":"https:\/\/patents.harnessip.com\/?p=3470","title":{"rendered":"PMC Patent is Unenforceable Because an Applicant Must Prosecute its Applications in an Equitable Way, Even Though the USPTO Doesn&#8217;t"},"content":{"rendered":"\n<p>Ini  Personalized Media Communications, LLC v. Apple Inc., [2021-2275] (January 20, 2023), the Federal Circuit affirmed the district court&#8217;s determination that U.S. Patent No. 8,191,091 was unenforceable based on prosecution laches.<\/p>\n\n\n\n<p>The district court determined that Personalized Media Communications successfully employed an inequitable scheme to extend its patent rights.  Relying on the Federal Circuit&#8217;s decision in <em>Hyatt<\/em>, the court determined that laches required a challenger to prove that the applicant\u2019s delay was unreasonable and inexcusable under the totality of the circumstances<br>and that there was prejudice attributable to the delay.  Under this framework, the court found that PMC engaged in an unreasonable and unexplained delay amounting to an egregious<br>abuse of the statutory patent system.<\/p>\n\n\n\n<p>The Court found that similar to Hyatt, PMC\u2019s applications were atypically long and complex, containing over 500 pages of text and over 22 pages of figures. PMC filed each of its applications with a single claim, then subsequently amended the claims, sometimes to recite identical language across different applications. The court further explained that, like in Hyatt, over time, PMC greatly increased the total number of claims in the range of<br>6,000 to 20,000 claims.  The court also found the length of the delay similar to<br>Hyatt because PMC waited eight to fourteen years to file its patent applications and at least sixteen years to present the asserted claims for examination.<\/p>\n\n\n\n<p>The court reasoned that PMC\u2019s prosecution conduct made it virtually impossible for the PTO to conduct double patenting, priority, or written description analyses. In addition to the scope and nature of PMC\u2019s applications, the court pointed to PMC\u2019s vast prior art disclosure, which<br>included references having little-to-no relevance, and examiners\u2019 statements in office actions describing PMC\u2019s prosecution strategy and conduct as improper. Regardless, prosecution had been pending for \u201cnearly ten years\u201d before the PTO suspended it.<\/p>\n\n\n\n<p> The only notable distinction the court found between Hyatt and this case was that while Hyatt acknowledged he lacked a master plan for demarcating his applications, PMC developed the \u201cConsolidation Agreement\u201d with the PTO, under which PMC agreed to group its applications into 56 subject-matter categories, with subcategories for each of the two priority dates.  The court determined that the Consolidation Agreement alone does not operate to shift blame on the PTO, explaining that the Consolidation Agreement had to be understood in the context of PMC\u2019s business-driven, unreasonable prosecution strategy.  <\/p>\n\n\n\n<p>The court analyzed prosecution conduct concerning the asserted \u2019091 patent and found that PMC used the Consolidation Agreement to realize PMC\u2019s initial strategy of serialized prosecution, notwithstanding the GATT amendments.  Thus, the court found that Apple met its burden to prove the first element of laches.<\/p>\n\n\n\n<p>The court reasoned that the prosecution delays had to be understood in the context of PMC\u2019s expressed desire to extend its patent rights as long as possible and conceal its inventions until infringement was deeply embedded into the industry.  This scheme contributed to the prejudice, which was underscored by the fact that a jury found that Apple\u2019s FairPlay technology infringed the \u2019091 patent. Thus, Apple established prejudice, and laches rendered the \u2019091 patent unenforceable.<\/p>\n\n\n\n<p>On appeal, PMC first argued legal error because its conduct looks nothing like Hyatt or the handful of other cases that have found prosecution laches.  The Federal Circuit found that this was not a legal error and is factually incorrect.  PMC nest asserts that its \u201ccompliance\u201d with the Consolidation Agreement and the PTO\u2019s rules precludes a finding of laches as a matter of law.  The Federal Circuit disagreed.  Third, PMC asserted that the district court improperly disregarded the reasons for the prosecution\u2019s length. PMC points to delays in prosecution that occurred due to the PTO grappling with PMC\u2019s GATTBubble<br>applications and attempting to resolve overlapping issues across many of PMC\u2019s applications. The Federal Circuit rejected this as well, pointing out that \u201ca delay by the PTO cannot excuse the appellant\u2019s own delay.\u201d  <\/p>\n\n\n\n<p>Fourth, PMC argued that the district court committed legal error by relying on the simple number of PMC\u2019s applications.  This argument also failed, the Federal Circuit saying that the district court here did not legally err by considering that PMC filed 328 GATT-Bubble applications as a part of the court\u2019s analysis, which also properly considered<br>other relevant facts.<\/p>\n\n\n\n<p>Fifth, PMC argued that it was a legal error for the district court to find delay due to PMC adding \u201cnarrowing\u201d limitations directed to encryption and decryption in 2003, years after the priority date of the \u2019091 patent.  In light of the significant amendments made in 2003, we<br>are not persuaded that the district court erred in concluding that PMC unreasonably delayed in presenting the encryption and decryption subject matter.<\/p>\n\n\n\n<p>The Federal Circuit said that in sum, the district court did not legally err. The district<br>court correctly considered the totality of the circumstances and did not disregard or ignore relevant facts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ini Personalized Media Communications, LLC v. Apple Inc., [2021-2275] (January 20, 2023), the Federal Circuit affirmed the district court&#8217;s determination that U.S. Patent No. 8,191,091 was unenforceable based on prosecution laches. The district court determined that Personalized Media Communications successfully &hellip; <a href=\"https:\/\/patents.harnessip.com\/?p=3470\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":["post-3470","post","type-post","status-publish","format-standard","hentry","category-prosecution"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/patents.harnessip.com\/index.php?rest_route=\/wp\/v2\/posts\/3470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/patents.harnessip.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/patents.harnessip.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/patents.harnessip.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/patents.harnessip.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3470"}],"version-history":[{"count":1,"href":"https:\/\/patents.harnessip.com\/index.php?rest_route=\/wp\/v2\/posts\/3470\/revisions"}],"predecessor-version":[{"id":3471,"href":"https:\/\/patents.harnessip.com\/index.php?rest_route=\/wp\/v2\/posts\/3470\/revisions\/3471"}],"wp:attachment":[{"href":"https:\/\/patents.harnessip.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/patents.harnessip.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/patents.harnessip.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}