*1 ent Drivas, the actual error and historical error Dimitrios T. LLP, White & Case York, compared York, are after the thrusters have of New New filed an opposi- correction; prebias been fired in the it is petition tion to the for defendant-appellee. only comparison this that the after second With on opposition him the Jeffrey were J. modulating step employed. This does Oelke and Adam Gahtan. descriptive dimmish the content of the T. Moriarty, Brian filed an amicus curiae specification. established, The evidence on brief for the Generic Pharmaceutical Asso- facts, undisputed specification de- ciation. scribes the modulating two steps of the holding claim. The invalidity Mentlik, Lerner, David, William L. Lit- reversed, ground is and the case is re- Mentlik, LLP, Krumholz tenberg, & manded for proceedings. Westfield, further New Jersey, filed an amicus Pharmaceuticals, curiae brief for IVAX AND
REVERSED REMANDED him on the Roy With brief was H. Wepner.
Lawrence DeMille-Wagman, Attorney, Commission, Federal Trade of Washing- ton, DC, filed an amicus curiae brief for the Federal Trade Commission. himWith Graubert, brief were John D. Act- TEVA USA, PHARMACEUTICALS ing Counsel; General Susan A. Creighton,
INC., Plaintiff-Appellant, Director, Bureau of Competition; John F. Daly, Deputy General Counsel for Litiga- tion; Unt, and Lore A. for Counsel Intel- INC., PFIZER Defendant-Appellee. lectual Property. No. 04-1186. Whitehouse, Theodore Case Willkie LLP, Farr Gallagher & Washington, United States Court of Appeals, DC, filed an amici curiae brief for United Federal Circuit. States Senators Kennedy, M. Edward McCain, John April S. E. Charles Schumer. MICHEL, Before Chief Judge, NEWMAN, MAYER, LOURIE, CLEVENGER, RADER, SCHALL, BRYSON, GAJARSA, LINN, DYK, and PROST, Judges. Henry Dinger, C. Goodwin Procter ORDER
LLP, Boston, Massachusetts, filed a petition combined panel rehearing and petition combined rehearing rehearing en banc plaintiff-appellant. rehearing en banc by was filed Of counsel on petition was Thomas Appellant, J. response and a thereto Meloro, Jr., Kenyon Kenyon, & of New vited the court Appel- filed York, New York. petition lee.1 The for rehearing was re- 1. Amicus by: curiae briefs were filed 1-The Federal Trade Commission. *2 manipulated by to statutory procedures be heard panel that to the merits ferred first fore- Thereafter, to the clear and petition holders the appeal. banc, the amici generic drug and of the response, detriment rehearing en seeable to circuit referred were curiae briefs dustry. request to authorized who are
judges apprehen- Teva court’s reasonable The banc. appeal en to rehear whether poll for a con- wrong is the test sion taken, failed. requested, and poll actual, crete, or imminent in thereof, Upon consideration problem generic considering when THAT: IT ORDERED IS ANDA certification.2 with a second-filed rehearing is (1) petition for The it, and the compel III does not denied. rejected the doctrinal has Supreme Court (2) banc is rehearing en petition for that Teva introduces. Our cases rigidity denied. apprehension, in the recognize reasonable issue the court will mandate of as but typical patent 11, 2005. on April operational attempt give pragmatic DYK, GAJARSA, MAYER, Circuit patentees can which guidance against appeal en banc. rehear Judges, conduct, and control their their structure costs, fact-specific in a area litigation GAJARSA, with whom Judge, Circuit correspond facts law. The ANDA in a joins, DYK, Judge, dissents Circuit only, in name infringement case typical opinion. separate duty to it is court’s constitutional DYK, whom Judge, with Circuit in their context. facts look those GAJARSA, joins, dissents Judge, Circuit misguided Article The Teva court’s opinion. in a separate Congress’s clear thwarts analysis further foster, provi- through the detailed intent GAJARSA, Judge, with whom Circuit Hateh-Waxman, greater competi- sions dissenting from DYK, Judge, joins,, in generic pharmaceuticals. tion banc. declining rehearing en the order petition has denied The Court respect- I this case en banc. must
review I. denial. This is from that
fully dissent
Teva has shown
is whether
question
the Hateh-Waxman
critical
issue
within
justiciable case
by en banc
failure of this court
Act.1 The
swept
unambiguously
Congress
decision, Article
court’s
correct the Teva
action to
jurisdic-
limitation
(Fed.Cir.2005),
aside
additional
allows
108-173,
Stat. 2066
Pub. L. No.
Generic Pharmaceutical Association.
2-The
Pharmaceuticals,
(codified
at 21 U.S.C.A.
amended
Inc.
as
3-Ivax
(West
M. Ken-
Supp.2004)
Edward
355(j)(5)(C)(i)
4-United States Senators
McCain,
Schum-
nedy,
(West
E.
John S.
Charles
Supp.2004)).
U.S.C.A.
er.
Hateh-Waxman
scheme of the
The overall
Competi-
Drug
Price
Patent Laws
detail in our decisions
Act
described
Term Restoration Act
tion
Patent
Pharms.,
B. versy in terms of a threat *5 litigation, the doctrine establishes the cir- None of problems these can be found in in cumstances which the uncertainty of typical the patent infringement context, in legal rights materially a potential harm which this regularly court has tested im infringer in the marketplace. The injury mediate injury in the reasonable facing Teva in kind, this case is different in apprehension test. Consistent with Mary but no less actionable. land Casualty, this court has never held that Article III required that analysis. injury does not depend threats Quite to the contrary, this court has re from the incumbent. In view of the stat- peatedly that observed ute, reasonable appre the exists independent any hension simply a functional approach threat, and the policy motivation for apply- typical to patent infringement problems ing the apprehension test is under 2201. See EMC Corp. v. Norand completely lacking. There is no in sense Corp., (Fed.Cir.1996) 89 F.3d the court demanding the incumbent to (quoting Cas.); Md. BP Chems. Ltd. v. brandish the threat of infringement ac- Union Carbide Corp., 4 tions, beyond even the of listing act (“There (Fed.Cir.1993) simple no rule patent in Book, Orange the given a statu- that all addresses shades of relationships tory system encourages that the incum- between disputants.”); Arrowhead Indus. bent to do everything possible prevent to Water, Ecolochem, v. 846 F.2d patents from being put in play. No (Fed.Cir.1988) 735-36 (observing incumbent threat, will ever make the if it specific, “there is no all-purpose test” for can simply ride out the term in the listed patent expired, '518 Teva could Shalala, confident- Corp. Mova Pharm. Cf. ly enter the compound (D.C.Cir.1998) market with a ("It that did possi- n. infringe patent. bottleneck, ble that statutorily-created '699 But because of coupled express with statute’s Hatch-Waxman exclusivity, reference to Pfizer insulat- declaratory judgment ed as a the '699 actions means of any from litigation. test in bottleneck, relieving that might suffice practice to al- this extends the '518 term plaintiff low a to show the existence of a 'case until the ’699 expires. controversy’ demonstrating without an im- sued.”). mediate being risk of judicial declaring when in role court’s spe- a fact principles, first From patent.8 this III to extend under powers the reasonable shows that analysis cific It bear action. does not for this designed is not test of Article scope case. a Com- also focuses on Teva court The II. the modified accompanying Report mittee 271(e)(5) Arti- grants §of language Report in can- language 2003 Act. maximum extent to the jurisdiction III cle language plain not contradict that provides The statute
possible. can- 271(e)(5). enactment legislative jurisdic- matter subject have shall courts judicial power not limit in Teva majority’s language a Commit- III, and, fortiori, 2003 Act9 to the history legislative our Article misstates that Report tee its rea- but point, addressed this seems bind this court. cannot jurisprudence unconvincing. soning is Ultimately, the .idea provides specifically The statute mis- standing is limitation on suggests “shall, consistent the extent courts of Hatch- language plain placed, given Constitution, subject matter have with the express provides The statute Waxman. court, action.” jurisdiction challenge, generics mechanism directive therefore, Congressional has actions, or va- scope claim declaratory any jurisdictional applying refrain this statu- patents. Under lidity of listed or found by the courts crafted limitation court,challenges ge- scheme, it is tory overlooks Teva court § 2201. The limit incumbent drug companies neric point. basic submitting over-inclusive overreaching by *6 focuses court further The Teva any given patents applicable lists of introduced originally language intent to Congress’s formulation. branded an incum- 271(e)(5), provided which § entry pre- market early generic foster days “shall within to sue failure bent’s any limita- argument any real cludes controversy between actual an establish the circumstances Certainly under owner.” applicant declaratory action case, Teva’s conference at 1336. 395 F.3d strategic Pfizer’s police method ideal provision changed to language was exclu- Hatch-Waxman manipulation “shall, extent consistent to the the courts Delayed resolution sivity provisions. subject Constitution, matter have pur- no Teva serves facing the bottleneck actions. over these jurisdiction” will issue patents at by then the as pose, 271(e)(5) “not was § court concludes pre- is no basis expired. There have district automatically bestow meant grounds. Article III cluding this suit on as such actions over jurisdiction court contrary This conclusion Teva’s.” Id. 271(e)(5). The §of language plain (cid:127) analysis Article III Teva court’s full Article language bestowed change juris- Supreme Court longstanding distorts recognizes the simply jurisdiction 2003, Stat. Labs., L. No. Pub. Mfg. Mining Barr Co. 8. See Minn. (West 355(j)(5)(C)(i) (codified (Fed.Cir.2002). at 21 U.S.C.A. (West 35 U.S.C.A. Supp.2004) Drug, ,9. Prescription the Medicare Title XI of Act”]. “2003 Supp.2004)) [hereinafter Act Improvement, Modernization prudence misapplies (Fed.Cir.2005). decisions of F.3d I dissent this court. presented justicia- Teva has from the denial of rehearing en banc. ble and the courts should de- all,
cide it. Worst I. court’s Article III legislative forestalls plain language of the 2003 Medicare correction. The court should have correct- Amendments requires that in the Hatch- ed this error en banc. I respectfully dis- Waxman context the federal courts allow sent from the refusal to do so. declaratory judgment actions to the full extent allowed by Article III. 35 U.S.C.A. DYK, Judge, with whom 271(e)(5) (“[CJourts of the United States GAJARSA, Circuit joins, Judge, dissenting shall, to the extent consistent with the from the order denying rehearing en banc. Constitution, subject have jurisdic- matter This presents case an important ques- tion in any brought action ... under sec- tion under the Hatch-Waxman Amend- tion 2201 of title 28 for a declaratory judg- ments, which were part enacted as of the ment that is invalid or not Drug Competition Price and Patent Term infringed.”). if legislative Even histo- Restoration Act of Pub. 98- ry L./No. could be read as our approving reason- (codified 98 Stat. 1585 at 21 U.S.C. apprehension test, able that history cannot §§ 360cc §§ and U.S.C. overcome the plain language of the statute. (2000)) 271, 282 holder —whether So we must decide whether Article III is can delay Food and Drug Administration satisfied. (“FDA”) approval of application for a There are relatively few Supreme Court competing generic drug by simple ex- dealing cases with Article III and declara-
pedient of refusing to sue for infringement.
tory judgments, but the few cases that do
Here there is a present controversy over
provide
exist
no support for a reasonable
to secure approval of its Ab-
apprehension of imminent suit require-
breviated
New
Drug
Application ment. The declaratory judgment statute
(“ANDA”), plainly adequate to satisfy the
designed
to deal with a
situation
requirements of Article III.
which the declaratory judgment defendant
Declaratory
Judgment Act,
suit,
bring
i.e.,
declined to
in which there
*7
(2000),
2201
and the 2003 Medi- was no reasonable apprehension of immi-
Amendments,
care
Medicare Prescription
nent suit. The Supreme
up-
Court case
Drug,
Improvement, and Modernization
holding the
just
statute involved
such a
2003,
XI,
Act of
Title
Access to Affordable
situation —one in which there
nowas
immi-
Pharmaceuticals,
108-173,
Pub. L. No.
117 nent risk of suit because
potential
the
2066,
(codified
Stat.
2448-69
in pertinent
plaintiff declined to sue. Aetna
Ins.
Life
part
at 21
355(j)(5)(C)(i) (West
U.S.C.A.
Haworth,
Co.
v.
U.S.
S.Ct.
Supp.2004)
and 35
U.S.C.A.
(1937).
(which
challenge to
allowed
II.
decision)
to the domain
entitled
he was
three
are
to me that there'
it seems
Here
court dis
The district
at 22.
name.
Id.
controversies:
potential
intent
no
CL had
the case because
missed
purchased
941,-
party
The third
at
944-45.
that filed
a manufacturer
case involved
1. That
harmless
at 941. A hold
equipment.
Id.
invalidity of the
judgment of
declaratory
the third
contract between
provision in the
potentially
unautho-
patent after
defendant's
plaintiff in
placed the
plaintiff
party and the
working
defendant
person
rized
liability.
at
Id.
third
party with
if the
suit
third
threatened
945.
equipment.
plaintiff’s
purchased the
party
potential
There is a
controversy over The Hatch-Waxman
provide
Amendments
whether
the ANDA filing itself was an for
right
to secure resolution of the
infringement.
I doubt
this,
whether
controversy through a declaratory judg-
alone,
standing
satisfies Article III be- ment.
cause Pfizer seems not to care whether
Ivax earlier filed paragraph
certifi-
IV
infringement
occurred. Textron
cation regarding
the ’699
and then
Lycoming Reciprocating
Div.,
Engine
settled
Thus,
with Pfizer.
Ivax
enjoy
will
UAW,
Corp.
AVCO
653, 661,
523 U.S.
a 180-day exclusivity period beginning
(1998)
Pfizer
did
file suit within the 45-day
period;
that Pfizer
included
’699 pat
Normally, one
expect
ent in
Orange Book;
and that Pfizer
approval issue would
litigated
be
between
tends
enforce
patents
through litiga Teva
FDA, but,
and the
as we recognized
(J.A.
52.)
Unless
actually
in Minnesota Mining and Manufacturing
about to manufacture or
drug,
sell the
Co. v.
Laboratories,
Barr
Inc., 289 F.3d
there would seem to be no case or contro
(Fed.Cir.2002),
Congress provided
versy under
theory.
Societe de Con
approval
would depend on the out-
ditionnement,
question circumstances, Under these validity.4 a case there
I think that of Article meaning
within validity infringement questions appears addressed. be
should aof existence recognize insuffi- controversy is that holds
but I re- III.5 purposes
cient de- panel’s Under disagree.
spectfully contest remedy Teva lacks
cision agree I approval. ANDA delay in its that Gajarsa Judge Mayer Judge unfair- such require III does
ness. HORNBACK, Plaintiff- B.
Alton
Appellant, Defendant-Appellee. STATES,
UNITED
No. 04-5149. Appeals, Court States
United Circuit.
Federal 19, 2005.
April Banc Denied En
Rehearing 19, 2005.
May Teva fact ”[t]he panel states imposes an additional '518 4. While standpoint a business disadvantaged from ANDA approval of Teva’s limitation exclusivity period and the 180-day Ivax's approved until not be could creates Teva not to sue decision that Pfizer’s 30, 2006), (June it is expires ’518 disad- removing that impediment date approval litigate the hardly premature distinct separate and matters vantage are invalid- litigation over since controversy exists an Article from whether consume patent could itself ity the '699 and Pfizer.” time. significant
