Creative Compounds, LLC v. Starmark Laboratories
651 F.3d 1303
Fed. Cir.2011Background
- Creative and Starmark own competing creatine salt patents: Creative's '273 patent (dicreatine malate) and Starmark's '373 patent (creatine salts with a dicarboxylic acid).
- The district court granted summary judgment that the '373 patent is valid and infringed, and dismissed/denied issues regarding the '273 patent' jurisdiction.
- Creative mailed letters to industry about its '273 notice and included counsel's opinion; SAN's customers allegedly received letters about the '373 patent and prior Haynes work.
- Starmark obtained the '373 patent via SAN and Boldt; Creative alleged priority and potential invalidity based on preexisting ideas and other references.
- The district court found lack of jurisdiction over the '273 patent and granted summary judgment of invalidity for the '273 patent, which this court vacates; leave to amend denial upheld.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Burden of proof for priority invalidity | Creative urged preponderance of the evidence standard for priority between co-pending patents. | Starmark argued clear and convincing standard applies. | Clear and convincing standard applies; Environ/Slip Track distinctions do not apply here. |
| Validity under 102(g)(2) for prior invention | Cornelius conceived the subject matter prior to Boldt with evidence like an email order. | No genuine issue of prior conception or diligence; email inadequate. | No genuine issue of material fact; patent not invalid under 102(g)(2). |
| Validity under 102(f) derivation | Cornelius communicated prior conception to the patentee; derivation possible. | No corroborated evidence of communication or knowledge; sole testimony insufficient. | No genuine issue; derivation not shown; patent not invalid under 102(f). |
| Validity under 102(e) by prior art reference | Prior art reference discloses the invention; should invalidate. | Need detailed linkage of each claim element to prior art; asserted reference alone insufficient. | No genuine issue; prior art does not render '373 invalid under 102(e). |
| Subject matter jurisdiction over the '273 patent | No case or controversy with Starmark regarding the '273 patent; jurisdiction lacking. | Dispute over competing patents shows substantial controversy and potential §291 interference. | Lacked declaratory judgment jurisdiction over the '273 patent; vacated invalidity ruling as to '273. |
Key Cases Cited
- Tokai Corp. v. Easton Enters., 632 F.3d 1358 (Fed. Cir. 2011) (clear and convincing standard for validity under § 282)
- Environ Prods., Inc. v. Furon Co., 215 F.3d 1261 (Fed. Cir. 2000) (preference for preponderance standard in priority when co-pending subject matter is identified)
- Slip Track Sys., Inc. v. Metal-Lite, Inc., 304 F.3d 1256 (Fed. Cir. 2002) (preponderance standard in § 291 interference context when priority exists)
- Eli Lilly & Co. v. Aradigm Corp., 376 F.3d 1352 (Fed. Cir. 2004) (limits on applying priority standard when common subject matter not identified)
- Schumer v. Laboratory Computer Sys., Inc., 308 F.3d 1304 (Fed. Cir. 2002) (duty to identify claim elements in invalidity analysis; not just bare references)
- SRI Int’l v. Matsushita Elec. Corp., 775 F.2d 1107 (Fed. Cir. 1985) (patentee bears burden to prove infringement by preponderance)
- Metabolite Labs., Inc. v. Lab. Corp. of Am. Holdings, 370 F.3d 1354 (Fed. Cir. 2004) (burden of proof for validity remains clear and convincing)
- Microsoft Corp. v. i4i Ltd. P'ship, 564 U.S. _ (Supreme Court 2011) (affirmed clear and convincing standard for invalidity)
