Helsinn Healthcare S. A. v. Teva Pharmaceuticals USA, Inc.
139 S. Ct. 628
SCOTUS2019Background
- Helsinn developed palonosetron (Aloxi) and entered two agreements (license and supply) with MGI granting rights to distribute 0.25 mg and 0.75 mg doses in the U.S.; both agreements required MGI to keep proprietary information confidential.
- Helsinn publicly announced the partnership and filed redacted agreements in an SEC Form 8-K, but the specific 0.25 mg dose was not disclosed publicly in those filings.
- Nearly two years after the agreements, Helsinn filed a provisional patent application (Jan 30, 2003) and later (2013) obtained U.S. Patent No. 8,598,219 covering a 0.25 mg fixed dose; the ’219 patent is governed by the AIA.
- Teva sought FDA approval for a generic 0.25 mg product and was sued by Helsinn for patent infringement; Teva countered that the claimed dose was invalid under the AIA’s “on sale” bar as having been sold more than one year before the provisional filing.
- The district court held the AIA’s on-sale bar did not apply because the public disclosures did not reveal the claimed dose; the Federal Circuit reversed, holding that a publicly disclosed sale can trigger the on-sale bar even if sale terms do not disclose invention details.
- The Supreme Court granted certiorari to resolve whether a sale to a third party obligated to maintain confidentiality can constitute an "on sale" event under 35 U.S.C. §102(a).
Issues
| Issue | Helsinn's Argument | Teva's Argument | Held |
|---|---|---|---|
| Whether a sale to a third party who must keep the invention confidential can place the invention “on sale” under the AIA | The AIA’s phrase “or otherwise available to the public” means the enumerated terms (including “on sale”) should be read to require public availability; secret sales cannot trigger the on-sale bar | Pre-AIA precedent and the AIA’s reenactment of “on sale” mean a commercial sale or offer for sale can trigger the bar even if the sale was confidential | The Supreme Court held such a secret commercial sale can qualify as prior art under §102(a); affirmed the Federal Circuit |
| Whether Congress changed the meaning of “on sale” when it enacted the AIA by adding “or otherwise available to the public” | The added catchall limits the listed categories so that each requires public availability | The addition of the catchall was not a sufficient change to alter the established judicial meaning of “on sale” | The Court presumed Congress adopted the settled pre-AIA judicial interpretation; the catchall did not change the meaning |
Key Cases Cited
- Pfaff v. Wells Elecs., 525 U.S. 55 (establishing two-part on-sale test: commercial offer for sale and invention ready for patenting)
- Special Devices, Inc. v. OEA, Inc., 270 F.3d 1353 (Fed. Cir. 2001) (recognizing that secret sales can invalidate patents)
- Woodland Trust v. Flowertree Nursery, Inc., 148 F.3d 1368 (Fed. Cir. 1998) (inventor’s secret commercial use may constitute public use or sale)
- Paroline v. United States, 572 U.S. 434 (discussed by Helsinn in argument about statutory construction of associated words)
- Federal Maritime Comm’n v. Seatrain Lines, Inc., 411 U.S. 726 (same as Paroline — cited on associated-words canon)
- Consolidated Fruit-Jar Co. v. Wright, 94 U.S. 92 (19th-century precedent focusing on sale rather than public disclosure)
