959 F.3d 1104
Fed. Cir.2020Background
- Odyssey Logistics filed two patent applications (’678 in 2004; ’603 in 2006) and later filed a facial challenge to the PTO’s 2011 ex parte-appeal rule amendments.
- Count I: After the PTAB reversed the examiner’s rejections in the ’678 appeal, the Technology Center Director issued an examiner request for rehearing; Odyssey sued before the Board resolved rehearing.
- Count II: Odyssey challenged the Director’s dismissal of a petition to designate portions of the examiner’s answer as new grounds in the ’603 appeal, again before final Board disposition.
- Count III: Odyssey brought a facial APA challenge to the 2011 amendments to the Rules of Practice Before the Board (ex parte appeals), filed more than six years after publication.
- The district court dismissed Counts I and II for lack of final agency action and Count III as time-barred under 28 U.S.C. § 2401; Odyssey appealed. The Federal Circuit affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Board’s reversal plus the Director’s request for rehearing (’678) constituted final agency action for APA review | Rehearing was ultra vires and amounted to final action; Odyssey could seek review now | Rehearing is part of ordinary administrative reconsideration and is nonfinal until the Board acts | Nonfinal: rehearing did not consummate decisionmaking nor fix rights; APA review premature |
| Whether dismissal of Odyssey’s petition to designate new grounds (’603) was final | Dismissal resolved petition and caused legal consequence warranting immediate review | Dismissal did not determine rights or produce legal consequences until the Board acts on later filings | Nonfinal: petition denial did not fix rights; challenge premature |
| When the statute of limitations accrues for a facial APA challenge to PTO rules (2011 amendments) | Limit accrual runs from the rules’ effective date (or first adverse application), not publication; Odyssey filed within six years of effective date | For a facial/substantive challenge the limitations period begins at publication (final agency action) | Time-barred: facial challenge accrued at publication; suit filed after six-year limit and is barred |
Key Cases Cited
- Smith v. Berryhill, 139 S. Ct. 1765 (2019) (articulates APA finality test: consummation of decisionmaking and legal consequences)
- Stone v. I.N.S., 514 U.S. 386 (1995) (timely motion for reconsideration renders underlying order nonfinal)
- Hyatt v. U.S. Pat. & Trademark Off., 904 F.3d 1361 (Fed. Cir. 2018) (statute of limitations accrues at agency’s initial decision or adverse application; distinguishes procedural vs substantive challenges)
- Hire Order Ltd. v. Marianos, 698 F.3d 168 (4th Cir. 2012) (facial challenge accrual begins at regulation publication)
- Preminger v. Sec’y of Veterans Affairs, 517 F.3d 1299 (Fed. Cir. 2008) (distinguishes procedural challenges and identifies promulgation as relevant final action)
- In re Durance, 891 F.3d 991 (Fed. Cir. 2018) (illustrative of proper sequence for APA review after PTAB final decision and rehearing)
- Franklin v. Massachusetts, 505 U.S. 788 (1992) (final agency action occurs when decisionmaking is complete and directly affects parties)
- Automated Merch. Sys., Inc. v. Lee, 782 F.3d 1376 (Fed. Cir. 2015) (no final agency action where administrative processes remain available)
