Ppg Industries, Inc. v. Valspar Sourcing, Inc.
679 F. App'x 1002
Fed. Cir.2017Background
- PPG requested inter partes reexaminations of two Valspar patents; PTAB issued final decisions adverse to PPG. PPG appealed to the Federal Circuit under pre‑AIA 35 U.S.C. §§ 141, 315.
- At the time the reexaminations were initiated and decided, there was no pending district court litigation between the parties.
- Evidence showed PPG had launched a commercial can‑interior coating and had received at least one customer inquiry indicating Valspar might sue—facts PPG relied on to show a concrete stake in the reexamination outcome.
- Valspar maintained PPG lacked Article III standing to appeal but later filed an infringement suit on related patents in Minnesota.
- While the appeal was pending, Valspar unilaterally executed a Covenant Not To Sue covering the two patents at issue as to PPG, its subsidiaries, and customers.
- The Federal Circuit concluded PPG had standing to appeal but that Valspar’s covenant mooted the appeal; it vacated the PTAB decisions and dismissed the appeals.
Issues
| Issue | Plaintiff's Argument (PPG) | Defendant's Argument (Valspar) | Held |
|---|---|---|---|
| Article III standing to appeal PTAB reexamination when no district case pending | PPG argued it had a particularized, concrete interest because it commercially made/sold accused product and received inquiries suggesting threat of suit | Valspar argued no live case or controversy existed when PPG appealed, so PPG lacked standing | Court held PPG had standing: commercial activity + threat of enforcement + estoppel risk gave a concrete stake (distinguishing Consumer Watchdog) |
| Mootness after unilateral Covenant Not To Sue by prevailing party | PPG argued the covenant was unilateral/tardy and should not moot the appeal or require vacatur of PTAB decisions | Valspar argued the covenant removed any future injury and thus mooted the appeal | Court held the covenant mooted the controversy; vacatur of PTAB decisions and dismissal appropriate to serve justice |
Key Cases Cited
- Consumer Watchdog v. Wis. Alumni Rsch. Found., 753 F.3d 1258 (Fed. Cir. 2014) (standing standard for administrative patent appeals)
- Summers v. Earth Island Inst., 555 U.S. 488 (2009) (injury‑in‑fact is an Article III requirement)
- U.S. Bancorp Mortgage Co. v. Bonner Mall P’ship, 513 U.S. 18 (1994) (vacatur appropriate where mootness results from unilateral action of prevailing party)
- Walling v. James V. Reuter, Inc., 321 U.S. 671 (1944) (court may dispose of moot judgments as justice requires)
- United States v. Hamburg‑Amerikanische Packetfahrt‑Actien Gesellschaft, 239 U.S. 466 (1915) (vacatur where review impossible through no fault of petitioner)
- Already, LLC v. Nike, Inc., 568 U.S. 85 (2013) (covenant not to sue can moot case when it forecloses conceivable future infringement scenarios)
