Glaxo Operations Uk Limited v. Donald J. Quigg, Assistant Secretary of Commerce and Commissioner of Patents and TrademarksGlaxo Operations Uk Limited v. Donald J. Quigg, Assistant Secretary of Commerce and Commissioner of Patents and Trademarks
Donald J. Quigg, Assistant Secretary of Commerce and Commissioner of Patents and Trademarks (Commissioner), appeals the Order of the United States District Court for the Eastern District of Virginia, dated February 28, 1989, granting summary declaratory judgment to Glaxo Operations U.K. Ltd. (Glaxo).
See Glaxo Operations UK Ltd. v. Quigg,
Background
Glaxo is the assignee of U.S. Patent No. 4,267,320 (’320), issued May 12, 1981, which claims cefuroxime axetil, an antibiotic drug. In 1985, Glaxo sought approval from the Food and Drug Administration (FDA) to market a form of this drug, CEF-TIN 1 tablets, and received approval on December 28, 1987. The active ingredient of CEFTIN tablets is cefuroxime axetil. The properties of this compound are such that it becomes therapeutically active and effective when orally administered. Cefuroxime axetil is an ester 2 of cefuroxime, an organic acid.
Cefuroxime and its salts
3
are claimed in Glaxo’s U.S. Patent No. 3,974,153. Cefu-roxime and two of its salts, marketed as ZINACEF and KEFUROX, are therapeuti
Glaxo sought a patent term extension for its ’320 patent (cefuroxime axetil) because of the lost marketing time due to the lengthy FDA review process. The Commissioner denied the extension asserting that the 1987 FDA approval of CEFTIN was not the first permitted commercial marketing or use of the “product” becausе ZINACEF and KEFUROX had previously been approved, and therefore the ’320 patent was not eligible for a term extension under the Act.
See In re Glaxo Operations UK Ltd.,
Request for Patent Term Extension Under
Glaxo sought declaratory and injunctive relief under the Administrative Procedures Act (APA),
For a patent to be eligible for a term extension, among other things the product must have been “subject to a regulatory review period” and “the permission for the commerсial marketing or use of the product after such regulatory review period [must have been] the
first permitted
commercial marketing or use of the
product
under the provision of law under which such regulatory review period occurred.”
It is undisputed that cefuroxime axetil is the active ingredient of CEFTIN tablets. Moreover, the Commissioner does not appear to contest that ZINACEF and KEFU-ROX are neither salts nor esters of cefu-roxime axetil. Consequently, Glaxo argues that the “product” as defined by the Act has not been previously approved or used before CEFTIN tablets were approved because neither ZINACEF nor KEFUROX fell within the definition. Accordingly, Glaxo contends that because CEFTIN is the “first permitted commercial marketing or use” of the product patented, the ’320 рatent is eligible for term extension.
The Commissioner, on the other hand, argues that “product” was not intended by Congress to have a literal meaning, only encompassing three categories of compounds: (1) an active ingredient; (2) a salt of an active ingredient; or (3) an ester of an active ingredient. He asserts that Congress intended the definition to mean any “new chemical entity,” i.e., “new active moiety,” which would encompass all acid, sаlt, or ester forms of a single therapeutically active substance even if the drug before being administered contained only other substances. In this case, because after being orally administered CEFTIN tablets combine with digestive substances in the human body to produce the same therapeutically active substance contained in both ZINACEF and KEFUROX, then under the Commissioner’s interpretation, Glaxo has already had a prior approval of the “product” before it sought a term extension for its ’320 patent.
The trial court reviewed the Commissioner’s interpretation of
OPINION
I.
In reviewing a grant of summary judgment, an appellate court must determine whether the strict standard set forth in
II.
“When ... the terms of a statute [are] unambiguous, judicial inquiry is complete, except in rare and exceptional cirсumstances.”
United States v. James,
We conclude that
Nonetheless, even when the plain meaning of the statutory language in question would resolve the issue before the court, the legislative history should usually be examined at least “to determine whether there is a
clearly expressed
legislative intention contrary to the statutory language.”
Madison Galleries,
III.
Although we should consider the legislative history to ascertain whether Congress’ intent was contrary to
The Commissioner correctly notes that the Act has two general purposes: (1) to increase the availability of low-cost drugs by expanding a generic drug approval procedure; and (2) to further encourage new drug research by restoring some of the patent term lost while drug products undergo testing аnd await FDA pre-market approval. H.R.Rep. No. 857, 98th Cong., 2d Sess., pt. 1, at 14-15 [hereinafter House Report],
reprinted in
1984 U.S.Code Cong. & Admin.News. 2647, 2647-48 [hereinafter USCCAN]. The Commissioner contends that applying the plain meaning of
The Commissioner merely argues, via his interpretation of
The Commissioner simply makes an unsupported assumption that Congress wanted to give greater emphasis to the Act’s purpose of increasing generic drug availability as opposed to providing greater economic incentive to development of new pat
We are reminded by the Supreme Court that:
all legislation is not simple nor its consеquences obvious or to be controlled, even if obvious. Whether there should be any legislation at all and its extent and form may be matters of dispute. Its consequences may be viewed with favor or with alarm; some regretted but accepted as inevitable — accepted as the shadow side of the good. In such situation it is for the legislature to determine, and it is very certain that the judiciary should not refuse to execute that determination from its view of some consequence which ... may have been contemplated and appreciated when the act was passed, and considered as overbalanced by the particular advantages the act was calculated to produce.... “It would be dangerous in the extreme, to infer from extrinsic circumstances, that a case for which the words of an instrument expressly provide, shall be exempted from its operation.”
Pirie v. Chicago Title and Trust Co.,
Further, we are hesitant to stray from the plain meaning of the statute because both the terms Congress used and the terms the Commissioner would have us substitute were all well-known and well-defined at the time the Act was passed.
8
Nevertheless, Congress chose particular terms — “active ingredient, ... including any salt or ester of an active ingredient. ...” Accordingly, we can infer that in so choosing, Congress may have deliberately rejected the very terms the Commissioner asserts were the intended meaning of
Besides asserting that to accept the common meaning of
The Committee’s bill requires extensions to be based on the first approval of a product because the only evidence available to Congress showing that patent time has been lost is data on so-called class I, new chemical entity drugs. These drugs had been approved by the Food and Drug Administration (FDA) for the first time.
House Report,
supra,
at 38 (emphasis added),
reprinted in
USCCAN,
supra,
at 2671. The Commissioner notes that this Report describes the House bill which, without amendment, became
Additionally, the Commissioner quotes two floor statements by sponsors of the bill resulting in the Act as also evidencing Congress’ intent that “product" mean “new chemical entities.”
See
130 Cong.Rec. 24,-425 (1984) (Rep. Waxman);
id.
at 23,765 (Sen. Hatch). Although we acknowledge that the sponsors’ remarks — which, like the House Report, refer to “new chemical entities” — should be afforded some weight as to the meaning of the bill, we are equally remindеd by the Supreme Court that “[o]ral testimony of ... individual Congressmen,
unless
very precisely
directed
to the intended meaning of
particular words in a statute,
can seldom be expected to be as precise as the enacted language itself.”
Regan v. Wald,
IV.
In construing this Act, we must consider whether deference is due the Commissioner’s interpretation of the intended meaning of
First, the Commissioner argues, broadly, that this court must defer to his statutory interpretation provided it is “reasonable,” and not clearly contrary to Congress’ intent, citing, inter alia,
Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,
Additionally, the Commissioner asserts that deference is due a contemporaneous construction of the agency charged by Congress with implementing the new statute. Often cited by the Supreme Court as well as this court,
see, e.g., Chevron,
Finally, the Commissioner asserts that his interpretation must be accorded deference because this case involves “highly technical, scientific questions within the agency’s special expertise.” Commissioner’s Brief,
supra,
at 15. Once again the Commissioner describes a rule of jurisprudence which is inapposite to this case. Significant deference is due to an аgency’s technical expertise when Congress has explicitly or implicitly delegated to the agency the making of scientific determinations.
See, e.g., Industrial Union Dep’t, AFL-CIO v. American Petroleum Inst.,
In the instant case, Congress qualifiеd its express authorization to the Commissioner to determine whether patents are eligible for extension,
see
Conclusion
We cannot say whether the meaning the Commissioner ascribes to
AFFIRMED.
Notes
. CEFTIN, as well as ZINACEF and KEFUROX, infra, are federally registered trademarks, Registration Nos. 1,332,796; 1,133,466; and 1,445,-894, respectively.
. An ester is a compound derived from an acid by the exchange of a replaceable hydrogen of the latter for an organic radical, usually using an alcohol or other organic compound rich in OH groups. See The Condensed Chemical Dictionary 418 (G. Hawley rev. 10th ed. 1981) [hereinafter Chemical Dictionary ].
.A salt is a compound formed when the hydrogen of an acid is replacеd by a metal or its equivalent. See id. at 907.
. The APA applies to district court review of such Commissioner’s decisions.
See Heinemann v. United States,
. The standard of review is not affected by deference to agency interpretation in the instant case. See Section IV, infra.
.
See also United States v. American Trucking Ass'ns,
Often caution requires that the legislative history be considered at least to the extent necessary to ascertain whether a contrary intent exists even when the statutory language is clear. Nonetheless, this rule of caution does not preclude, in a particular case in which the statutory language is so clear as to Congress’ intent, the decision that it would be unnecessary to look further into the legislative history.
See, e.g., Brookside Veneers, Ltd. v. United States,
. Normally, utility patent terms last seventeen years.
. See, e.g., 45 Fed.Reg. 72,582; 72,591 (1980); 44 Fed.Reg. 2932; 2937-38 (1979); Chemical Dictionary, supra note 3, at 418, 907; FDA, Bureau of Drugs, Staff Manual Guide BD 4820.3, at 1-2 (Feb. 19, 1982).
. FDA classifies drugs into six chemical types. One such type is defined:
Type 1 —New molecular entity — i.e., the active moiety is not yet marketed in the United
States by any drug manufacturer either as a single entity or as part of a combination product.
FDA, Bureau of Drugs, Staff Manual Guide BD 4820.3, at 1-2 (Feb. 19, 1982). The Commissioner's interpretation is furthеr questionable because the House Report refers to "Class I” and “new chemical entity” rather than the FDA’s term “Type 1” and "new molecular entity.”
. For example: “new molecular entity," "active moiety,” or "new chemical entity.”
. The FDA also has administrative duties under the Act. However, as opposed to title II of the Act, that applies to the Patent and Trademark Office, title I applies to the FDA. Title I includes language similar to the