This case is before this court on remand from the Supreme Court of the United States. In our original decision,
HIF Bio, Inc. v. Yung Shin Pharms. Indus. Co., Ltd.,
I.
A.
We accept as true the facts alleged in plaintiffs’ first amended complaint (“FAC”).
See Wells v. United States,
In late 1999, Professors Jong-Wan Park (“Park”) and Yang-Sook Chun (“Chun”) began investigating the effect of a chemical, YC-1, on a protein complex known as HIF1. A component of HIF-1 is expressed in human tumors and stimulates the growth of blood vessels within a tumor mass. Park and Chun hypothesized that YC-1 “could be used to inhibit the activity of HIF-1, which would have the effect of suppressing ... the growth of blood vessels into animal tumors, and thereby killing] the tumor by starving it of oxygen and nutrients.” FAC ¶¶ 19-21.
Between 1999 and 2002, Park and Chun conducted laboratory experiments to confirm their hypothesis and submitted research papers disclosing their discovery to academic journals.
See id.
¶¶ 22-26. On April 7, 2003, Pax-k and Chun filed a United States patent application titled “Method for Inhibiting Tumor Angiogenesis and Tumor Growth,” which “disclos[ed] their antiangiogenic, anti-cancer application of YC-1.”
Id.
¶ 27. In July 2003, Park and Chun assigned their rights concerning YC-1 to Plaintiff BizBiotech Co., Ltd., which subsequently assigned the rights to Plaintiff
While Park and Chun conducted their research, they also discussed their hypothesis with another scientist, Defendant Che-Ming Teng (“Teng”), who agreed to provide Park and Chun with the YC-1 necessary for their experiments. See id. ¶¶ 34-38. As an academic courtesy, Park and Chun provided Teng with information concerning their research including prepublication drafts of academic papers disclosing the results of their laboratory experiments. See id.
Unbeknownst to Park and Chun, Teng disclosed the results of Park and Chun’s research to Defendant Yung Shin Pharmaceuticals (“Yung Shin”), a Taiwanese drug manufacturer. Id. ¶¶ 40-45. On March 29, 2002, without the consent or knowledge of Park and Chun, Teng filed a U.S. Provisional Patent application titled “Angiogenesis Inhibitors.” Id. ¶ 57. The provisional identified Teng and Defendant Fang-Yu Lee (“Lee”), the president of Yung Shin, “as the inventor[s] of the novel anti-angiogenic, anticancer properties of YC-1.” In March 2003, Yung Shin filed a PCT application claiming priority to the U.S. provisional application. See id. ¶ 86.
B.
In September 2005, after discovering Teng, Lee, and Yung Shin’s actions, HIF Bio and BizBiotech filed suit in Los Angeles Superior Court. In addition to Teng, Lee, and Yung Shin, the suit named Carlsbad Technology, Inc. (“CTI”), a California corporation engaged by Yung Shin to eommercialize the use of YC-1 as an antiangiogenic, anti-cancer drug in the United States. See id. ¶ 47. The suit also named Yung Shin’s patent counsel, Y. Rocky Tsao and Fish and Richardson, P.C., and an alleged Taiwanese co-conspirator, Yung Zip Chemical Co., Ltd. See id. In November 2005, CTI removed the action to the United States District Court for the Central District of California. In March 2006, the plaintiffs filed their first amended complaint with the district court, asserting twelve causes of action. 1
Among other motions, CTI filed a motion to dismiss the complaint pursuant to Federal Rule of Civil Procedure 12(b)(1) and 12(b)(6). The district court granted CTI’s motion, dismissed plaintiffs’ RICO cause of action, and remanded the case to state court.
See HIF Bio, Inc.,
CTI appealed the remand order to this court. This panel held that 28 U.S.C. § 1447(d) barred appellate review of a remand order based on declining supplemental jurisdiction and dismissed the appeal for lack of jurisdiction.
See HIF Bio, Inc.,
II.
We review for abuse of discretion the district court’s decision not to exercise supplemental jurisdiction.
See Mars, Inc. v. Kabushiki-Kaisha Nippon Conlux,
Whether the district court possessed jurisdiction is a question of law that this court reviews without deference.
See Teva Pharms. USA, Inc. v. Novartis Pharms. Corp.,
A. The Declaratory Judgment for Inventorship
The plaintiffs’ second cause of action seeks a declaratory judgment that Park and Chun “were and are the first and true inventors/discoverers of the INVENTION.” FAC ¶ 111. The amended complaint defines “INVENTION” as the discovery that “YC-1 had the potential to become the first anti-angiogenic, anti-cancer agent to HIF-1.” Id. ¶ 22. According to plaintiffs, “an actual controversy has arisen” because the defendants “have made an open, public, and adverse claim that [Lee and Teng] are the inventors/discoverers of the INVENTION.” Id. ¶ 109. The only open, public, and adverse claims to the INVENTION identified in the amended complaint are the defendants’ multiple pending patent applications which named Lee and Teng as inventors. See id. ¶ 89; see also id. ¶¶ 47(c), 56-59, 61-62, 73-75.
In remanding the second cause of action, the district court noted that “Plaintiffs aver that they are not contesting patents or patent applications, but are instead seeking declaratory judgment on the issue of inventorship under state common law.”
2
HIE Bio, Inc.,
The district court erred in concluding that the second cause of action presented a
An independent inventorship standard under state law would likely have different requirements and give rise to different remedies than federal patent law. A different state inventorship standard might grant property rights to an individual who would not qualify as an inventor under federal patent law, or might grant greater relief to inventors than is afforded by federal patent law. Either situation might frustrate the dual federal objectives of rewarding inventors and supplying uniform national patent law standards.
Id.; see also Bd. of Regents, Univ. of Tex. Sys. v. Nippon Tel. & Tel,
The amended complaint defines the “INVENTION” solely in terms of the pending-patent applications.
See, e.g.,
FAC ¶ 86 (listing defendants’ multiple patent applications that “falsely and fraudulently claim that [Lee and Teng] are the inventors/discovers of the INVENTION”);
id.
¶89 (same). Therefore, the only possible theory upon which relief could be granted to the plaintiffs would be one in which determining the true inventor(s) of competing patent applications is essential. Because inventorship is a unique question of patent law, the cause of action arises under § 1338(a).
See Christianson,
However, because this dispute involves
pending
patent applications, the plaintiffs’ requested relief — a declaration of the “true” inventor — is tantamount to a request for either a modification of inventorship on pending patent applications or an interference proceeding.
See, e.g., Larson v. Correct Craft, Inc.,
Despite the statute’s language, some district courts have held that § 116 provides a private right of action to challenge inventorship of a pending patent application.
See, e.g., Kosower v. Gutowitz,
No. 00 CIV.
To the extent
Eli Lilly
failed to resolve this issue, we expressly hold that § 116 does not provide a private right of action to challenge inventorship of a pending patent application. Once a patent issues, however, 35 U.S.C. § 256 provides a private right of action to challenge inventorship, and such a challenge arises under § 1338(a).
Larson,
Given their proper import, §§ 116 and 135(a) preclude the district court from granting plaintiffs’ requested relief — a declaration of the “true” inventor of a pending patent application. Accordingly, while the district court has jurisdiction over the cause of action, it should have dismissed the claim under Rule 12(b)(6) because no private right of action exists.
See Litecubes, LLC v. N. Light Prods., Inc.,
B. The Remaining Causes of Action
The question remains, however, whether the remaining nine causes of action arise under the patent laws. Because these causes of action are not direct creatures of patent law, the district court had jurisdiction only if plaintiffs’ “right to relief necessarily depends on the resolution of a substantial question of federal patent law, in that patent law is a necessary element of the well-pleaded claims.”
Christianson,
CTI contends that the resolution of a patent law issue — inventorship—is necessary to resolve the remaining causes of action. As noted above, this court has held that “the field of federal patent law preempts any state law that purports to define rights based on inventorship.”
Univ. of Colo.,
The only other cause of action in which patent law is essential is plaintiffs’ fourth cause of action — slander of title. Under California common law, the elements of slander of title are: publication, falsity, absence of privilege, and disparagement of another’s title which is relied upon by a third party and which results in a pecuniary loss.
See Smith v. Commonwealth Land Title Ins. Co.,
Finally, patent law is not essential to plaintiffs’ remaining causes of action for declaration of ownership, conversion, actual and constructive fraud, intentional interference with contractual relations and prospective economic advantage, negligent interference with contractual relations and prospective economic advantage, breach of implied contract, and unfair competition and fraudulent business practices because each cause of action could be resolved without reliance on the patent laws. 3
For example, patent law is not essential to plaintiffs’ cause of action for conversion. Under California law, the elements of conversion are “(1) ownership or right to possession of property, (2) wrongful disposition of the property right of another, and (3) damages.”
Don King Prods./Kingvision v. Lovato,
The cause of action for intentional interference with contractual relations and prospective economic advantage also does not arise under § 1338(a). Intentional interference with contractual relations and prospective economic advantage requires proof of “(1) an economic relationship between the plaintiff and some third person containing the probability of future economic benefit to the plaintiff; (2) knowledge by the defendant of the existence of the relationship; (3) intentional acts on the part of the defendant designed to disrupt the relationship; (4) actual disruption of the relationship; and (5) proximately caused damages.”
Don King Prods./Kingvision,
Inventorship is likewise not essential to the causes of action for fraud, unfair competition, breach of implied contract, or ownership. With respect to fraud, plaintiffs’ complaint alleges that the defendants made continued promises of collaboration which induced plaintiffs into providing non-public and valuable research data to defendants. FAC ¶¶ 40-50, 181--84. As pled, these non-patent related facts could be sufficient to establish fraud.
See Small v. Fritz Cos., Inc.,
Plaintiffs’ eleventh cause of action — “Unjust Enrichment-Constructive Trust” — deserves specific analysis to avoid creating any confusion in our precedent. In
University of Colorado,
this court found the issue of inventorship to be essential to a cause of action for unjust enrichment.
See
C. Abuse of Discretion
Because the second and fourth causes of action arise under § 1338(a), the district court abused its discretion in remanding those causes of action to state court.
See Hunter Douglas, Inc.,
CONCLUSION
For the foregoing reasons, we reverse the district court’s remand of the First Amended Complaint, and remand for further proceedings consistent with this opinion.
REVERSED AND REMANDED
Each party shall bear its own costs for this appeal.
Notes
. The first and second causes of action seek a declaratory judgment for ownership and inventorship, respectively, of "the INVENTION.” FAC ¶¶ 104-110. The third cause of action asserts violations of the Racketeer Influenced and Corrupt Organizations Act ("RICO”), 18 U.S.C. §§ 1961-68. FAC ¶¶ 112-71. The remaining causes of action are based respectively on slander of title, conversion, actual and constructive fraud, intentional interference with contractual relations and prospective economic advantage, negligent interference with contractual relations and prospective economic advantage, breach of implied contract, unfair competition and fraudulent business practices, unjust enrichment-constructive trust, and permanent injunction. Id. ¶¶ 172-219.
. Despite their averments to the contrary, the plaintiffs’ complaint states: "PLAINTIFFS also allege, in the alternative, that jurisdiction with respect to the First and Second Claims of Relief is also proper under 28 U.S.C. § 2201(a) and 28 U.S.C. § 1338.” FAC ¶ 2.
. The amended complaint also includes a cause of action for "Permanent Injunction.” FAC ¶¶ 215-19. While written as a separate cause of action, it is more properly understood as a request for injunctive relief to remedy one of the other causes of action. Accordingly, it cannot serve as a basis for jurisdiction.
