Lead Opinion
Opinion for the court filed by Circuit Judge TARANTO. Opinion concurring in the judgment filed by Circuit Judge O’MALLEY.
These appeals involve two actions brought in the District of Delaware against generic drug manufacturer Mylan Pharmaceuticals Inc. One, assigned to Chief Judge Stark, was brought by brand-name drug manufacturers Acorda Therapeutics Inc. and Alkermes Pharma Ireland Ltd.; the- other, assigned to Judge Sleet, was brought by brand-name drug manufacturer AstraZeneca AB. The plaintiffs brought the actions under 35 U.S.C. § 271(e)(2), alleging that their patents cover drugs that Mylan :has sought permission from the Food and Drug Administration to manufacture and market. Mylan moved to dismiss on the ground that Delaware could not (and so the federal court may not) exercise personal jurisdiction — either general or specific personal jurisdiction — over Mylan in these cases. Chief Judge Stark and Judge Sleet denied the motions. Although they reached different conclusions about whether Delaware could exercise general personal jurisdiction over Mylan based on consent given in registering to do business in the State, they both concluded that Delaware could exercise specific personal jurisdiction, based on Mylan’s suit-related contacts with Delaware. On interlocutory appeal, we affirm, holding that Mylan is subject to specific personal jurisdiction in these cases. We do not address the issue of general personal jurisdiction.
' ■ BACKGROUND
Under the authority of the FDA’s approval of its New Drug Application (NDA), 21 U.S.C'. § 355(a), (c), Acorda markets Ampyra® to help individuals with multiple sclerosis walk. In seeking approval for Ampjra®, Acorda identified five patents for listing in the FDA’s Approved Drug Products with Therapeutic Equivalence Evaluations publicátion — the “Orange Book.” See 21 U.S.C. § 355(b)(1); 21 C.F.R. §§ 314.3, 314.53. Acorda owns four of the patents and is the exclusive licensee of the fifth, owned by Alkermes. In' January 2014, Mylan filed an Abbreviated New Drug Application' (ANDA) with the FDA under 21 U.S.C. § 355(j), seeking approval to market generic versions of Ampyra®. Under paragraph IV of § 355(j)(2)(A)(vii), Mylan certified that ACorda’s Orange Book patents for Ampyra® are invalid or would not be infringed by Mylan’s marketing of its proposed drug. Acorda and Alkermes then sued Mylan in the District of Delaware for patent infringement, invoking the declaration of 35 U.S.C. § 271(e)(2)(A) that the submission of a paragraph IV certification constitutes an act of infringement.
AstraZeneca markets FDA-approved Onglyza® and KombiglyzefM to help individuals with type II diabetes. AstraZene-
Mylan filed motions to dismiss under Federal Rule of Civil Procedure 12(b)(2) on the ground that the State of Delaware could not — and therefore,.derivatively, the federal district court in Delaware may not — -exercise personal jurisdiction over Mylan in these matters under the Due Process Clause of the Fourteenth Amendment. The parties do not dispute .that the standards of the Due Process Clause control whether there is personal jurisdiction in these matters. Nor do they dispute that the Due Process Clause standards permit a State to exercise either specific personal jurisdiction over a defendant in a case (based on the connection of the State to the subject matter of the particular case) or general personal jurisdiction over the defendant (based on certain facts even where the case involves subject matter not itself sufficiently connected to the State). The parties have debated both .specific and general personal jurisdiction in this case. The debate over the latter issue focuses on Mylan’s registration to do, business in Delaware as giving consent to the exercise of general personal jurisdiction.
■ The motions were decided on facts that are not in material dispute. Mylan is incorporated in West Virginia and has its principal place of business there. Mylan submitted its ANDAs to the FDÁ in Maryland, . and it did much if not all of its preparation of its ANDA filings in West Virginia. Regarding the notices of its ANDA filings required by 21 U.S.C. § 355(j)(2)(B)(iii), Mylan sent notices to Acorda in New York and Alkermes in Ireland (for the Acorda matter), and it sent notices to AstraZeneca’s subsidiary in Delaware and AstraZeneca in Sweden (for the AstraZeneca matter). Mylan has registered to do business and appointed an agent to accept service in Delaware. And, of particular importance, Mylan intends to direct sales of its drugs into Delaware, among other places, once it has the requested FDA approval to market them. The plaintiffs, for their part, also have connections with Delaware: Acorda is incorporated in Delaware, AstraZeneca’s U.S. subsidiary has its, principal place of business in Delaware, and both Acorda and AstraZeneca have sued other generic manufacturers for infringement of the same patents in Delaware.
Chief Judge Stark (in the Acorda case) and Judge Sleet (in- the AstraZeneca case) denied the motions to dismiss. Both judges concluded that Delaware had sufficient contacts related to the subject of these cases that it could exercise specific personal jurisdiction over Mylan. See Acorda Therapeutics, Inc. v. Mylan Pharm., Inc., 78. F.Supp.3d 572, 593-95 (D.Del.2015); AstraZeneca AB v. Mylan Pharm., Inc.,
In each case the district court certified its decision for interlocutory review, and we granted permission to appeal. We have jurisdiction under 28 U.S.C. § 1292(b) and (c)(1).
Discussion
Under Fed.R.Civ.P. 4(k)(l)(A), the district court has personal jurisdiction over Mylan in these cases if Mylan would be “subject to the jurisdiction of a court of general jurisdiction in the state where the district court is located,” here Delaware. And there is no dispute that Mylan would be subject to Delaware courts’ jurisdiction under Delaware’s long-arm statute, Del. Code Ann. tit. 10, § 3104, as long as Delaware’s exercise of personal jurisdiction over Mylan would be consistent with the Fourteenth Amendment's Due Process Clause. The jurisdictional dispute therefore turns on the constitutional question, and Mylan makes no argument against jurisdiction other than one based on due-process standards. We decide the question de novo, applying our own (not regional-circuit) law. Marial Ltd. v. Cipla Ltd.,
A court may exercise specific personal jurisdiction without violating the Due Process Clause when thé defendant “ha[s] certain minimum contacts with [the forum] such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’” Int’l Shoe Co. v. Washington,
Here, Mylan has taken the costly, significant step of applying to the FDA for approval to engage in future activities— including the marketing’ Of its generic drugs — that will be purposefully directed at Delaware (and, it is undisputed, elséwhere). If Mylan had already begun its deliberate marketing of these drugs in Delaware, there is no doubt that it could be sued for infringement in Delaware. Its Delaware sales would be acts committed in the State that are, wrongful — if the plaintiffs here are right about infringement and validity — and would -concretely injure Acorda and AstraZeneca in the State by displacing some of their Delaware sales and likely lowering the price they could charge there. See World-Wide Volkswagen Corp. v. Woodson,
Mylan’s ANDA conduct is “suit-related” and has a “substantial connection” with Delaware, Walden,
The Hatch-Waxman Act recognizes the close connection between an ANDA filing and the real-world acts that approval of the ANDA will allow and that will harm patent-owning brand-name manufacturers. In 35 U.S.C. § 271(e)(2), Congress declared the ANDA filing to be what has been called an “artificial act of infringement,” allowing the brand-name manufacturer to sue the ANDA filer to litigate patent validity and coverage. Eli Lilly & Co. v. Medtronic, Inc.,
Likewise, an ANDA filer’s paragraph IV certification regarding patents addresses the real-world actions for which approval is sought — specifically, whether those actions would infringe. 21 U.S.C. § 355(j)(2)(A)(vii)(IV) (certification states that patent will not be infringed “by the manufacture, use, or sale of the new drug for which the application is submitted”); 21 C.F.R. § 314.94(a)(12)(i)(A)(4) (same). This court has long recognized that the infringement inquiry called for by § 271(e)(2) is “whether, if a particular drug were put on the market, it would infringe the relevant patent” in the usual, non-artificial sense. Bristol-Myers Squibb Co. v. Royce Labs., Inc.,
Notably, Congress did not authorize a patent-owning brand-name manufacturer to bring a suit over patent validity or
All of the parties acknowledged as much at oral argument. Acorda Oral Arg. at 48:32-48:48, 49:18-49:27 (Mylan), 22:59-23:47 (Acorda); AstraZeneca Oral Arg. at 21:57-22:32 (AstraZeneca). And the economic realities of preparing an ANDA confirm that filing realistically establishes a plan to market. The current fee for filing the ANDA itself is $76,030. Generic Drug User Fee — Abbreviated New Drug Application, Prior Approval Supplement, Drug Master Filé, Final Dosage Form Facility, and Active Pharmaceutical Ingredient Facility Fee Rates for Fiscal Year 2016, 80 Fed.Reg. 46,015-01, 46,016 (Aug. 3, 2015). The applicant must show bioequivalence of its proposed drug to the drug listed in the NDA, 21 U.S.C. § 355(j)(2)(A)(iv), and that showing, along with other requirements for approval of an ANDA* commonly requires costly research, see, e.g., Fiona M. Scott Morton, Entry Decisions in the Generic Pharmaceutical Industry, 30 RAND J. Econ. 421, 423 (1999) (“Interviews with FDA officials and several generic pharmaceutical managers generated estimated costs of filing an ANDA- of $250,000 to $20 million.”); Jeremy A. Greene,- Generic: The Unbranding of Modern Medicine 124 (2014) (estimating the cost for measuring bioequivalence of Valium tablets, which requires nearly two thousand blood assays on human subjects over sixteen days, at $75,000-$125,000). The applicant must also identify' “the facilities and controls used -for[ ] the manufacture, processing, and packing of [its proposed] drug,” 21 U.&C. § 355(b)(1)(D); 21 C.F.R. § 314.50(d)(l)(ii)(a), and certify that its facilities comply with the extensive good-manufacturing practices' detailed in 21 C.F.R. pts. 210, 211, see FDA Form 356h. The FDA will inspect each facility to “evaluate whether the site is able to reliably perform intended operation(s) at a commercial scale.” Guidance for Industry: ANDA Submissions — Content and Format of Abbreviated New Drug Applications 4 n. 11. The magnitude and costs of the work required before the ANDA is filed soundly link the ANDA filing to the filer’s entry into the market .to compete with the brand-name manufacturer if approval is obtained.
We have emphasized the link in several cases where we have discussed why the litigation authorized by § 271(e)(2) and (5) meets Article Ill’s requirement of a case or controversy. We have pointed to the future real-world market acts as sufficiently connected to the ANDA that triggers the litigation. See Apotex, Inc. v. Daiichi Sankyo, Inc.,
Those activities will unquestionably take place in Delaware (at least). The subject of the cases before us is whether those activities will infringe' valid patents and should be stopped under the remedial provisions of the Hatch-Waxman Act. Mylan’s ANDA filings, including its certifications regarding the patents at issue here, are thus suit-related, and they have a. substantial connection with Delaware because they reliably, non-speculatively predict Delaware activities by Mylan.
In arguing against this application of due-process standards, Mylan does not meaningfully develop an.argument that a rigid past/future dividing line governs the minimum-contacts standard. Specifically, Mylan does not show that a State is forbidden to exercise its judicial power to prevent a defendant’s planned -future conduct in the State, but must wait until the conduct occurs. Such- a rule would run counter to the legal tradition of injunctive actions to prevent a defendant’s planned, non-speculative harmful conduct before it occurs. See United States v. W.T. Grant Co.,
. For those reasons, it suffices for Delaware to meet the minimum-contacts requirement in the present cases that My-lan’s ANDA filings and its distribution channels establish that Mylan plans to market its proposed drugs in Delaware and the lawsuit is about patent constraints
Here, to reiterate, Mylan seeks approval to sell its generic drugs throughout the United States, including in Delaware, and it is undisputed that Mylan plans to direct sales of its generic drugs into Delaware. The complaints in these cases allege that Mylan’s generic drugs would'be distributed and sold in Delaware and that Mylan intends to commercially manufacture, use, and sell the generics upon receiving FDA approval. As Mylan admits, it develops drugs for the entire U.S. market and does some business- in every State, either directly or indirectly. Pursuant to DeLCode Ann. tit. 8, §§ 371(b)(2), 376(a), Mylan has registered to do business in Delaware and appointed an agent to accept service of process there. Mylan indicated in its certificate of registration that it intends to engage in “[pjharmaceutieal manufacturing, distribution and sales” in Delaware, Acorda J.A. 79; AstraZeneca J.A. 65, and Mylan registered with the Delaware Board of Pharmacy as a licensed “Pharmacy-Wholesale” and a “Distributor/Manufacturer CSR-” And even if Mylan does not sell its drugs directly into Delaware, it has a network of ■ independent wholesalers and distributors with which it contracts to market the drugs in Delaware. Such directing of sales into Delaware is sufficient for minimum contacts. See Beverly Hills Fan,
One point remains. A finding of minimum contacts does not end the due-process inquiry — let alone any non-constitutional venue inquiries — into whether a case properly remains in a forum. Even if a defendant has minimum suit-related contacts with a State, the defendant may defeat specific personal jurisdiction by sufficiently demonstrating that other considerations render jurisdiction unreasonable. See Burger King,
The burden on Mylan will be at most modest, as Mylan, a large generic manufacturer, has litigated many ANDA lawsuits in Delaware, including some that it initiated. Delaware has an interest in providing a forum to resolve the disputes before us because they involve the pricing and sale of products in Delaware and harms to firms doing business in Delaware, some of them incorporated or with principal places of business in Delaware. And upholding personal jurisdiction will serve the interests of the plaintiffs and the judicial system in efficient resolution of litigation, because multiple lawsuits against other generic manufacturers on the same patents are pending in Delaware. Indeed, Mylan sent its required notice to Acorda after those actions had already begun. In these cases, there is no substantial argument that considerations of unfairness override the minimum-contacts basis for Delaware’s exercise of specific personal jurisdiction over Mylan.
Conclusion
The decisions of the district court that Mylan is subject to specific personal jurisdiction in the district court for Delaware are affirmed.
AFFIRMED
Notes
. Acorda and Alkermes also sued Mylan’s parent corporation, Mylan Inc., but the parties voluntarily dismissed Mylan Inc, without prejudice.
Concurrence Opinion
concurring.
I agree that the district judges in these appeals have jurisdiction to hear the cases before them. I write separately because I believe we should reach the question of general jurisdiction, which the parties raise and the district judges decided. The specific jurisdiction issue, which the majority exclusively decides, is a more difficult question to resolve than the question of the continuing precedential effect of the line of Supreme Court authority articulated most clearly in Pennsylvania Fire Insurance Co. of Philadelphia v. Gold Issue Mining & Milling Co.,
While there is no requirement that a court consider general jurisdiction before, or in addition to, its consideration of specific jurisdiction, the Supreme Court has given some guidance about the sequencing of jurisdictional decisions. In Steel Co. v. Citizens for a Better Environment,
Ruhrgas addressed the particular question of whether, “[i]f, as Steel Co. held,
As Ockham’s Razor advises, the simpler path is usually best. See, e.g., Awkal v. Mitchell,
Discussion
A. General Jurisdiction
The requirement that a court have personal jurisdiction over a defendant before it may act “represents a restriction on judicial power not as a matter of sovereignty, but as a matter of individual liberty.” Ins. Corp. of Ir. v. Compagnie des Bauxites de Guinee,
A defendant-may, thus, consent to personal jurisdiction and thereby waive its right to contest it. “[B]ecause the personal jurisdiction requirement is a waivable right, there are- a ‘variety of legal arrangements’ by which a litigant may give ‘express or implied consent to the personal jurisdiction of the court.’ ” Burger King Corp. v. Rudzeuncz,
In particular, Delaware requires foreign corporations to register to do business in Delaware and to appoint an agent for service of process. Del.Code Ann. tit. 8, § 371(b)(2)(i) (prohibiting a foreign corporation from doing business in Delaware until it registers with the Secretary of State and files “[a] statement .... setting forth (i) the name and address of its registered agent” in Delaware). According to the Delaware Code, “[a]II process issued out of any [Delaware] court ... may.be served on the registered agent of the corporation designated in accordance with § 371.” Id. § 376(a). Foreign corporations that do business in Delaware without registering face statutory fines for violating the mandatory registration requirement. Id. § 378.
In Sternberg v. O’Neil,
. Chief Judge Stark (in the Acorda case) and Judge Sleet (in the AstraZeneca case) came to different conclusions on whether compliance .with a state’s registration statute that requires appointment of a registered agent for service of process continues to constitute a valid form of consent to general personal jurisdiction after Daimler. Compare Acorda Therapeutics, Inc. v. Mylan Pharm., Inc.,
That line began with Ex parte Schollenberger, 96 U.S. (6 Otto) 369,
[I]f the legislature of a State requires a foreign corporation to consent to be “found” within its territory, for the purpose of the service of process in a suit, as a condition to doing business in the State, and the corporation. does so consent, the fact that it is found gives the jurisdiction, notwithstanding the finding was procured by consent.
Id. at 377. In St. Clair v. Cox, 106 U.S. (16 Otto) 350,
[a] corporation of one state cannot do business in another state without the latter’s consent, express or implied,-and that consent may be accompanied with such conditions as it may think proper to impose.... The state may, therefore, impose as a condition upon which a foreign corporation shall be permitted to do business within her limits, that it shall stipulate that in any litigation arising out of its transactions in the state, it will accept as sufficient the service of process on its agents or persons specially designated, and the condition would be eminently fit and just.
Id. at 356,
In Pennsylvania Fire, the Court affirmed that it had “little doubt” that the appointment of an agent by a foreign corporation for service of process could subject it to general personal jurisdiction.
In the almost 100 years since the Supreme Court decided Pennsylvania Five, it has had ample opportunity to reconsider its holding. Yet each time the issue arose, the Supreme Court reaffirmed that registration statutes, mandatory for doing business, could confer jurisdiction through consent depending on the interpretation given to those state statutes by state courts. See Robert Mitchell Furniture Co. v. Selden Breck Constr. Co.,
The Supreme Court’s subsequent decisions in International Shoe and Daimler did not overrule this historic and oft-affirmed line of binding precedent. Indeed, both cases are expressly limited to scenarios that do not involve consent to jurisdiction. In International Shoe, the Court restricted its discussion to eases where “no consent to be sued or authorization to an agent to accept service of process has been given.”
There is no discussion of registration statutes in Daimler and no citation to Schollenberger, Pennsylvania Fire, or the cases post-dating those two. Indeed, Daimler confirms that consent to jurisdiction is an alternative to the minimum contacts analysis discussed in that case, citing to Perkins v. Benguet Consolidated Mining Co.,
Any argument that Mylan’s express consent to general personal jurisdiction was involuntary, moreover, is not well-taken. In Insurance Corporation of Ireland, the Supreme Court noted .that it “has upheld state procedures which find constructive consent to the personal jurisdiction of the state court in the voluntary use of ceHain state procedures.”
Notably, Pennsylvania Fire was decided almost 100 years before Mylan chose to register to do business in Delaware. And Sternberg’s interpretation of the registration statute had been on the books for almost twenty of those years. In the face of that legal authority, Mylan knowingly chose to register to do business in Delaware, thereby accepting the implication of having done so.’
' By virtue of the Delaware Supreme Court’s decision in Sternberg, the Delaware registration ,■ statute falls .squarely within the rule of Pennsylvania Fire and
B. Specific Jurisdiction
A finding that Mylan has consented to general personal jurisdiction obviates the need to consider whether the district courts here had the authority to exercise specific jurisdiction over Mylan in these circumstances. If general jurisdiction exists, a court may “hear any and all claims against” the parties, whereas specific jurisdiction “depends on an ‘affiliatio[n] between the forum and the underlying controversy.’” See Goodyear Dunlop Tires Operations, S.A. v. Brown,
The majority addresses only specific jurisdiction, and finds that it properly can be exercised here. I concur with the majority’s judgment, but not entirely with its reasoning. I agree that Mylan is subject to specific jurisdiction in Delaware, but I would, find specific jurisdiction under .the Supreme Court’s precedent in Calder v. Jones,
In Colder, the Court held that, when a defendant engages in intentional acts expressly aimed at the forum state, knowing that those acts will harm a potential plaintiff residing in that state, the courts in that
The allegedly libelous story concerned the California activities of a California resident. It impugned the professionalism of an entertainer whose television career was centered in California. The article was drawn from California . sources, and’ -the brunt of the harm, in terms both of respondent’s emotional distress and the injury to her professional reputation, was suffered in California. ;
Id. at 788-89,
The Supreme Court discussed the reach of Calder in Walden v. Fiore, — U.S. -,
The crux of Colder was that the reputation-based “effects” of the alleged libel connected the defendants to California, not just to the plaintiff. The strength of that connection was largely a function of . the nature of the libel tort. However scandalous a newspaper article might be, it can lead to a loss of reputation only if communicated to (and read and understood by) third persons.
Id, at 1123-24. Walden serves to clarify Colder, but does not overrule it or limit its holding exclusively to libel cases. Rather, it makes clear that due process is not satisfied by a showing of “mere injury to a forum resident”; a court must examine “whether the defendant’s conduct connects him to the forum in a meaningful way.” Id. at 1125. In Colder, the defendants ‘“expressly aimed’ ‘their intentional; and allégedly tortious, actions’ at California because- they knew the National Enquirer ‘ha[d] its largest circulation’ in California, and that the article would ‘have a potentially devastating impact’ there.” Id. at 1124 n. 7 (quoting Colder,
A generic drug manufacturer, like My-lan, files an Abbreviated New Drug Application (“ANDA”) with the FDA,- seeking approval to market generic versions of drugs produced by brand-name drug manufacturers, like Acorda and AstraZeneca. See Maj. Op. at 757-58. Mylan’s filing' under paragraph IV of 21 U.S.C. § 355(j)(2)(A)(vii) certifies its belief that Acorda’s and AstraZeneca’s Orange Book patents are invalid or would not be infringed by Mylan’s proposed drug. Id. In this way, the filing of the paragraph IV certifications in ANDA applications at issue here were not random acts that-happen to harm
Both Acorda and AstraZeneca aré corporations organized under the laws of the State of Delaware. See Acorda Therapeutics,
Of course, “[t]he proper question is not where the plaintiff experienced a particular injury or effect but whether the defendant’s conduct connects him to the forum in a meaningful way.” Walden,
Finally, I agree with the majority and both district judges that the exercise of
For these reasons, I believe that My-lan’s activity falls squarely within the minimum contacts analysis described in Calder and clarified in Walden. Mylan’s paragraph IV certification in its ANDA filing connects it to Delaware — not just to these corporate residents — in a manner that supports a finding of specific personal jurisdiction in that forum.
Conolusion
Thus, I would find that Mylan is subject to general personal jurisdiction in Delaware by virtue of its registration to do business there. To the extent this court has chosen to address the question of specific personal jurisdiction, moreover, I concur in the result reached by the majority that Mylan also' is subject to specific personal jurisdiction in Delaware.
. .One amicus argues that a finding of general personal jurisdiction by virtue of Delaware’s consent-by-registratjon statute would violate the unconstitutional conditions-'doctrine. See Br. of Amicus Curiae Chamber of Commerce 18-21. Because neither party has raised the question, however, it is not before us. Even if it were, moreover, the Supreme Court has upheld the validity of consent-by-registration statutes numerous times since the development of the! unconstitutional conditions doc- . trine.’ In Neirbo, the Supreme Court com- . mented that, the decision to strike down the Texas statute at issue, “which not merely regulated procedure for suit but sought to deny foreign, corporations access to the federal courts’’ was "wholly consistent” with the decision in Schollenberger, which allowed state legislatures to require foreign corporations to consent to general personal jurisdiction as a condition of being granted the right to do ■ business in that state. Neirbo,
. The act of infringement, which the Supreme Court has called "highly artificial,” Eli Lilly & Co. v. Medtronic, Inc.,
