THRYV, INC., FKA DEX MEDIA, INC. v. CLICK-TO-CALL TECHNOLOGIES, LP, ET AL.
No. 18-916
SUPREME COURT OF THE UNITED STATES
April 20, 2020
590 U. S. ____ (2020)
GINSBURG, J.
OCTOBER TERM, 2019. CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FEDERAL CIRCUIT. Argued December 9, 2019—Decided April 20, 2020
Syllabus
NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.
Inter partes review is an administrative process that permits a patent challenger to ask the U. S. Patent and Trademark Office to reconsider the validity of earlier granted patent claims. For inter partes review to proceed, the agency must agree to institute review. See
Entities associated with petitioner Thryv, Inc. sought inter partes review of a patent owned by respondent Click-to-Call Technologies, LP. Click-to-Call countered that the petition was untimely under
Held: Section 314(d) precludes judicial review of the agency‘s application of
(a) A party generally cannot contend on appeal that the agency should have refused “to institute an inter partes review.”
(b) The question here is whether a challenge based on
(c) This conclusion is strongly reinforced by the statute‘s purpose and design. Congress designed inter partes review to weed out bad patent claims efficiently. Allowing
(d) In Click-to-Call‘s view,
(e) Click-to-Call argues in the alternative that its
899 F. 3d 1321, vacated and remanded.
GINSBURG, J., delivered the opinion of the Court, in which ROBERTS, C. J., and BREYER, KAGAN, and KAVANAUGH, JJ., joined, and in which
Opinion of the Court
NOTICE: This opinion is subject to formal revision before publication in the preliminary print of the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, of any typographical or other formal errors, in order that corrections may be made before the preliminary print goes to press.
JUSTICE GINSBURG delivered the opinion of the Court.*
Inter partes review is an administrative process in which a patent challenger may ask the U. S. Patent and Trademark Office (PTO) to reconsider the validity of earlier granted patent claims. This case concerns a statutorily prescribed limitation of the issues a party may raise on appeal from an inter partes review proceeding.
When presented with a request for inter partes review, the agency must decide whether to institute review.
In this case, the agency instituted inter partes review in
The question before us: Does
I
The Patent and Trademark Office has several ways “to reexamine—and perhaps cancel—a patent claim that it had previously allowed.” Cuozzo Speed Technologies, LLC v. Lee, 579 U. S. ___, ___ (2016) (slip op., at 3). Congress established the procedure at issue here, inter partes review, in the Leahy-Smith America Invents Act (AIA), 125 Stat. 284, enacted in 2011. See
For inter partes review to proceed, the agency must agree to institute review.
The AIA sets out prerequisites for institution. Among them, “[t]he Director may not authorize an inter partes review to be instituted unless the Director determines . . . that there is a reasonable likelihood that the petitioner would prevail with respect to at least 1 of the claims challenged in the petition.”
After receiving the petition and any response, the PTO “Director shall determine whether to institute an inter partes review under this chapter.”
Upon electing to institute inter partes review, the Board conducts a proceeding to evaluate the challenged claims’ validity. See
II
Respondent Click-to-Call owns a patent relating to a technology for anonymous telephone calls, U. S. Patent No. 5,818,836 (‘836 patent). In 2013, petitioner Thryv sought inter partes review, challenging several of the patent‘s claims.1
In opposition, Click-to-Call urged that
The Board disagreed. Section 315(b) did not bar the institution of inter partes review, the Board concluded, because a complaint dismissed without prejudice does not trigger
Click-to-Call appealed, challenging only the Board‘s determination that
Thereafter, in another case, the en banc Federal Circuit held that “time-bar determinations under
Judge Hughes, joined by Judges Lourie, Bryson, and Dyk, dissented, expressing a position that today‘s dissent characterizes as “extraordinary.” Post, at 6. Those judges concluded that
In light of its en banc decision in Wi-Fi One, the Court of Appeals granted panel rehearing in this case. Treating the Board‘s application of
We granted certiorari to resolve the reviewability issue, 587 U. S. ___ (2019), and now vacate the Federal Circuit‘s judgment and remand with instructions to dismiss the appeal for lack of appellate jurisdiction.
III
A
To determine whether
We held as much in Cuozzo. There, a party contended on appeal that the agency should have refused to institute inter partes review because the petition failed
We reserved judgment in Cuozzo, however, on whether
B
We therefore ask whether a challenge based on
Section 315(b)‘s time limitation is integral to, indeed a condition on, institution. After all,
Because
C
The AIA‘s purpose and design strongly reinforce our conclusion. By providing for inter partes review, Congress, concerned about overpatenting and its diminishment of competition, sought to weed out bad patent claims efficiently. See id., at ___ (slip op., at 8); H. R. Rep. No. 112–98, pt. 1, p. 40 (2011) (“The legislation is designed to establish a more efficient and streamlined patent system that will improve patent quality and limit unnecessary and counterproductive litigation costs.“).5
Allowing
Other features of the statutory design confirm that Congress prioritized patentability over
Judicial review of
IV
Click-to-Call advances a narrower reading of
Cuozzo is fatal to Click-to-Call‘s interpretation. Section 314(d)‘s review bar is not confined to the agency‘s application of
The text of
And
If Congress had intended Click-to-Call‘s meaning, it had at hand readymade language from a precursor to
Click-to-Call doubts that Congress would have limited the agency‘s institution authority in
Click-to-Call also contends that we adopted its interpretation of
Click-to-Call homes in on a single sentence from SAS Institute‘s reviewability discussion: ”Cuozzo concluded that
V
Click-to-Call presses an alternative reason why the Board‘s ruling on its
* * *
For the reasons stated, we vacate the judgment of the United States Court of Appeals for the Federal Circuit and remand the case with instructions to dismiss for lack of appellate jurisdiction.
It is so ordered.
APPENDIX OF KEY STATUTORY PROVISIONS
“Institution of inter partes review
“(a) THRESHOLD.—The Director may not authorize an inter partes review to be instituted unless the Director determines that the information presented in the petition filed under section 311 and any response filed under section 313 shows that there is a reasonable likelihood that the petitioner would prevail with respect to at least 1 of the claims challenged in the petition.
“(b) TIMING.—The Director shall determine whether to institute an inter partes review under this chapter pursuant to a petition filed under section 311 within 3 months after—
“(1) receiving a preliminary response to the petition under section 313; or
“(2) if no such preliminary response is filed, the last date on which such response may be filed.
“(c) NOTICE.—The Director shall notify the petitioner and patent owner, in writing, of the Director‘s determination under subsection (a), and shall make such notice available to the public as soon as is practicable. Such notice shall include the date on which the review shall commence.
“(d) NO APPEAL.—The determination by the Director whether to institute an inter partes review under this section shall be final and nonappealable.”
“PATENT OWNER‘S ACTION.—An inter partes review may not be instituted if the petition requesting the proceeding is filed more than 1 year after the date on which the petitioner, real party in interest, or privy of the petitioner is served with a complaint alleging infringement of the patent. The time limitation set forth in the preceding sentence shall not apply to a request for joinder under subsection (c).”
THRYV, INC., FKA DEX MEDIA, INC., PETITIONER v. CLICK-TO-CALL TECHNOLOGIES, LP, ET AL.
No. 18–916
SUPREME COURT OF THE UNITED STATES
April 20, 2020
590 U. S. ____ (2020)
JUSTICE GORSUCH, with whom JUSTICE SOTOMAYOR joins as to Parts I, II, III, and IV, dissenting.
Today the Court takes a flawed premise—that the Constitution permits a politically guided agency to revoke an inventor‘s property right in an issued patent—and bends it further, allowing the agency‘s decision to stand immune from judicial review. Worse, the Court closes the courthouse not in a case where the patent owner is merely unhappy with the merits of the agency‘s decision but where the owner claims the agency‘s proceedings were unlawful from the start. Most remarkably, the Court denies judicial review even though the government now concedes that the patent owner is right and this entire exercise in property-taking-by-bureaucracy was forbidden by law.
It might be one thing if Congress clearly ordained this strange result. But it did not. The relevant statute, the presumption of judicial review, and our precedent all point toward allowing, not forbidding, inventors their day in court. Yet, the Court brushes past these warning signs and, in the process, carries us another step down the road of ceding core judicial powers to agency officials and leaving the disposition of private rights and liberties to bureaucratic mercy.
Some say the new regime represents a particularly efficient new way to “kill” patents. Certainly, the numbers tell an inviting story for petitioners like Thryv. In approximately 80% of cases reaching a final decision, the Board cancels some or all of the challenged claims. Patent Trial and Appeal Board, Trial Statistics 10 (Feb. 2020), https://www.uspto.gov/sites/default/files/documents/Trial_Statistics_2020_02_29.pdf. The Board has been busy, too, instituting more than 800 of these new proceedings every year. See id., at 6.
Still, Thryv faced a hurdle. Inter partes review “may not be instituted” based on an administrative petition filed more than a year after “the petitioner, real party in interest, or privy of the petitioner is served with a complaint alleging infringement of the patent” in federal court. 35 U. S. C. §315(b). So, while Congress sought to move many cases out of court and into its new administrative process, it thought patent owners who have already endured long challenges in court shouldn‘t have to face another layer of administrative review. After all, some repose is due inventors. Patents typically last 20 years; what happens to the incentive to invent if litigation over them lasts even longer (as it has for Mr. DuVal)? By anyone‘s estimation, too, §315(b)‘s time bar was sure to pose a special problem for Thryv. Yes, Thryv had petitioned for inter partes review one year after being served with CTC‘s complaint. But nearly 12 years had passed since Thryv‘s predecessor and privy first found itself on the business end of a lawsuit alleging that it had infringed Mr. DuVal‘s patent.
Despite this apparently fatal defect, the Board plowed
Thryv‘s victory may have taken years to achieve, but it didn‘t seem calculated to last long. Predictably, CTC appealed the Board‘s interpretation of §315(b) to the Federal Circuit. And just as unsurprisingly, the court held that dismissed complaints do count as complaints, so Thryv‘s inter partes administrative challenge was time barred from the start. Mr. DuVal‘s patent had already survived one ex parte reexamination Thryv instigated. The patent had been the subject of long and repeated litigation in federal courts. The agency had no business opening yet another new inquiry into this very old patent.
But Thryv had one maneuver left. It sought review in this Court, insisting that Article III courts lack authority even to say what the law demands. According to Thryv, a different provision, §314(d), renders the agency‘s interpretations and applications of §315(b) immune from judicial review. So the Board can err; it can even act in defiance of plain congressional limits on its authority. But, in Thryv‘s view, a court can do nothing about it. Enforcement of §315(b)‘s time bar falls only to the very Patent Office officials whose authority it seeks to restrain. Inventors like Mr. DuVal just have to hope that the bureaucracy revoking their property rights will take the extra trouble of doing so in accordance with law.
II
A
How could §314(d) insulate from judicial review the agency‘s—admittedly mistaken—interpretation of an entirely different provision, §315(b)? The answer is that it doesn‘t.
To see why, look no further than §314(d). The statute tells us that “[t]he determination by the Director whether to institute an inter partes review under this section shall be final and nonappealable.” So the only thing §314(d) insulates from judicial review is “[t]he determination” made “by the Director” “under this section“—that is, a determination discussed within §314. Nothing in the statute insulates agency interpretations of other provisions outside §314, including those involving §315(b).
This arrangement makes sense. Given that §314(d) speaks of “[t]he” determination by the Director “under this section,” it comes as no surprise that the section mentions just one such “determination.” It is found in §314(a), where the Director “determines” whether the parties’ initial pleadings suggest “a reasonable likelihood” the petitioner will prevail in defeating at least some aspect of the challenged patent. And it is easy to see why Congress might make a preliminary merits assessment like that exempt from further view: If the Director institutes a meritless petition, the Board can summarily affirm the patent‘s validity. See §318(a); 37 CFR §§42.71–42.73. In any event, the Board is obligated to render a final—and judicially reviewable—decision within a year. 35 U. S. C. §§141(c), 316(a)(11),
Matters outside §314 are different. Take the provision before us, §315(b). It promises that an inter partes review “may not be instituted” more than a year after the initiation of litigation. This stands as an affirmative limit on the agency‘s authority. Much like a statute of limitations, this provision supplies an argument a party can continue to press throughout the life of the administrative proceeding and on appeal. Nothing in §315(b) speaks of a “determination by the Director,” let alone suggests that the agency‘s initial ruling on a petition‘s timeliness is “final and nonappealable.”
To pretend otherwise would invite a linguistic nonsense. We would have to read §314‘s language speaking of “[t]he” “determination” “under this section” to include not one determination but two—and to include not only the determination actually made under “this section” but also a second assessment made about the effect of an entirely different section.
To pretend otherwise would invite a practical nonsense as well. Because the Director‘s initial “reasonable likelihood” determination under §314(a) relates to the merits, it will be effectively reviewed both by the Board and courts as the case progresses. But when does the Director‘s application of §315(b)‘s time bar get another look? Under Thryv‘s interpretation, a provision that reads like an affirmative
B
Confronting so many problems in the statute‘s text, Thryv seeks a way around them by offering a competing account of the law‘s operation. While §314 empowers the Director to make an institution decision, Thryv asserts that various provisions scattered throughout the chapter—such as §§314(a), 315(a)(1), and 315(b)—help guide the decision. And on Thryv‘s interpretation, all questions related to the Director‘s institution decision should be insulated from review, no matter where those rules are found. What about the fact §314 speaks of insulating only “[t]he” “determination” “under this section“? Thryv says this language serves merely to indicate which institution authority is unreviewable—namely, the Director‘s authority to institute an inter partes proceeding pursuant to §314, rather than pursuant to some other provision.
This interpretation, however, makes a nullity of the very language it purports to explain. Section 314 is the only section that authorizes the Director to institute inter partes review, making it pointless for Congress to tell us that we‘re talking about the Director‘s §314 inter partes review insti-
Faced with this problem of surplusage, Thryv alludes to the possibility that Congress included redundant language to be “double sure.” But double sure of what? Thryv does not identify any confusion that the phrase “under this section” might help avoid. Given the lack of any other provision, anywhere in the U. S. Code, authorizing anyone to institute inter partes review, even the most obtuse reader would never have any use for the clarification supposedly provided by “under this section” on Thryv‘s account.
Maybe so, Thryv replies, but we shouldn‘t worry about the surplusage here because the AIA contains surplusage elsewhere. The other putative examples of surplusage Thryv identifies, however, have no bearing on the provision now before us. And even a passing glance reveals no surplusage in them either. Consider §315(c). It says that “the Director, in his or her discretion, may join as a party to that inter partes review any person who properly files a petition under section 311 that the Director, after receiving a preliminary response under section 313 . . . , determines warrants the institution of an inter partes review under section 314.” (Emphasis added.) Thryv argues that all these cross-references are unnecessary. But look closely: Each of §315(c)‘s cross-references does important work to establish the rules for joinder. Strike the first and the requirements of a joinder petition become undefined. Strike the second and it‘s a mystery what kind of response the patent owner is entitled to file. Strike the third and the Director‘s determination whether to grant joinder becomes standardless. All of this language has a point to it—just as “under this section” does under a faithful interpretation of §314(d).
That leaves Thryv only one more tenuous textual lifeline
But so what? One could replace the phrase “my next-door neighbor to the west” with “my neighbor at 123 Main Street” (assuming that is her address) and the meaning would be the same. Likewise, it hardly matters whether Congress spoke of the “determination” “under this section” or “under subsection (a).” Either way, our attention is directed within, not beyond, §314. And what‘s Thryv‘s alternative? It would have us read language speaking of the Director‘s determination “under this section” to encompass any decision related to the initiation of inter partes review found anywhere in the AIA—an entire chapter of the U. S. Code. That‘s sort of like reading “my next-door neighbor to the west” to include “anyone in town.” Nor do things get better for Thryv with a careful assessment of nearby and predecessor statutes. They reveal that Congress knew exactly how to give broader directions like the one Thryv imagines when it wished to do so. See, e.g., §314(b) (directing our attention to the Director‘s decision whether to institute inter partes review “under this chapter” rather than “under this section“).
Without any plausible textual or contextual hook for its position, Thryv finishes by advancing a parade of policy horribles. It notes that the AIA imposes lots of other constraints on inter partes review besides the §315(b) timing
But we could just as easily march this parade in the opposite direction. Even assuming (without deciding) that Thryv is right and the reviewability of all these provisions stands or falls together, that seems at least as good an argument for as against judicial review. If so much more is at stake, if many more kinds of agency errors could be insulated from correction, isn‘t that a greater reason to pay assiduous attention to the statute‘s terms? Surely, Thryv‘s professed concern for judicial economy supplies no license to ignore our duty to decide the cases properly put to us in accord with the statute‘s terms.
III
This last point leads to another reason why we should reject Thryv‘s reading of the statute. Even if the company could muster some doubt about the reach of §314(d), it wouldn‘t be enough to overcome the “well-settled presumption favoring interpretations of statutes that allow judicial review of administrative action.” McNary v. Haitian Refugee Center, Inc., 498 U. S. 479, 496 (1991). As this Court has long explained, “we will . . . find an intent to preclude such review only if presented with clear and convincing evidence.” Reno v. Catholic Social Services, Inc., 509 U. S. 43, 64 (1993) (internal quotation marks omitted).
The presumption of judicial review is deeply rooted in our history and separation of powers. To guard against arbitrary government, our founders knew, elections are not
It should come as an equal surprise to think Congress might have imposed an express limit on an executive bureaucracy‘s authority to decide the rights of individuals, and then entrusted that agency with the sole power to enforce the limits of its own authority. Yet on Thryv‘s account, §315(b)‘s command that “inter partes review may not be instituted” would be left entrusted to the good faith of the very executive officials it is meant to constrain. (Emphasis added.) We do not normally rush to a conclusion that Congress has issued such “‘blank checks drawn to the credit of some administrative officer.‘” Bowen v. Michigan Academy of Family Physicians, 476 U. S. 667, 671 (1986) (quoting S. Rep. No. 752, 79th Cong., 1st Sess., 26 (1945)).
That usually may be the case, Thryv counters, but this statute‘s unusually modest purpose makes it plausible to think Congress meant to shield its application from judicial review. After all, the company submits, §315(b) is not really a firm limit on the agency‘s authority, only a claim processing rule. For proof, the company reminds us that
But Thryv‘s reply here is like saying Article III‘s “case or controversy” requirement isn‘t really a limit on the power of federal courts, because it‘s always possible that some litigant with a live dispute will come forward and require the court to settle a particular legal question. The implacable fact is that nothing in the AIA gives the Director or the Board freewheeling authority to conduct inter partes review. The statute demands the participation of a real party in interest, a petitioner who is not barred by prior litigation and who is willing to face estoppel should he lose. §§311(a), 315. And if, as seems likely in our case and many others, no one is willing and able to meet those conditions, the law does not permit inter partes review. So rather than a claim processing rule, §315 is both a constraint on the agency‘s power and a valuable guarantee that a patent owner must battle the same foe only once.
Realizing that its textual arguments are too strained to demonstrate clearly and convincingly that Congress meant to displace judicial review, Thryv asks us to draw “inferences” from the AIA “as a whole.” Brief for Petitioner 16 (internal quotation marks omitted). In particular, the company tells us that Congress‘s “overriding purpose” in creating inter partes review was to “weed out poor quality patents,” and that judicial enforcement of §315(b) would slow this progress. Id., at 24 (quotation altered). But to support its thematic account of the law‘s goals, Thryv rests on one thin reed after another—a House Report here, a floor statement there, and a few quotations from Cuozzo Speed Technologies, LLC v. Lee, 579 U. S. ___ (2016), that summarize
That‘s far from enough. The historic presumption of judicial review has never before folded before a couple stray pieces of legislative history and naked policy appeals. Besides, Thryv‘s submissions cannot withstand the mildest inspection even on their own terms. No one doubts that Congress authorized inter partes review to encourage further scrutiny of already issued patents. But lost in Thryv‘s telling about the purposes of the AIA is plenty of evidence that Congress also included provisions to preserve the value of patents and protect the rights of patent owners. For example, Congress sharply limited the legal grounds that might be pursued in inter partes review, §311(b); afforded patent owners an opportunity to respond to petitions prior to institution, §313; and, most relevant today, protected patent owners from the need to fight a two-front war before both the Board and federal district court, §315. Legislating involves compromise and it would be naive to think that, as the price for their zealous new procedures for canceling patents, those who proposed the AIA didn‘t have to accept some protections like these for patent holders. Yet, Thryv glides past all these provisions without comment. Worse, taking the company‘s argument to its logical conclusion could render these protections into “‘merely advisory‘” features of the law. Bowen, 476 U. S., at 671. If adopted, Thryv‘s vision of an administrative regime singularly focused on the efficient canceling of patents could become self-fulfilling.
A case decided just weeks ago supplies a telling point of comparison. In Guerrero-Lasprilla v. Barr, 589 U. S. ___ (2020), Congress sought to expedite the removal of aliens convicted of certain aggravated felonies by foreclosing judicial review of their cases unless they raised “questions of law.” See 8 U. S. C. §§1252(a)(2)(C), (D). But the statute
IV
Even if the statute‘s plain language and the presumption in favor of review dictate a ruling against it, Thryv finishes by suggesting we must ignore all that and rule for it anyway because precedent commands it. Maybe our precedent is wrong, the company says, but it binds us all the same.
In particular, Thryv points us to Cuozzo. There, the Court suggested that §314(d) could preclude review in cases: (1) where a litigant challenges the Director‘s reasonable likelihood of success determination under §314(a), or (2) where a litigant “grounds its claim in a statute closely related to that decision to institute inter partes review.” 579 U. S., at ___ (slip op., at 12). That first path is faithful to the plain language of §314(d). The second appears nowhere in the statute but is, instead, a product of the judicial imagination. Still, Thryv says, we must follow that path wherever it leads and, because §315(b) decisions are “closely related” to §314(a) decisions, we shouldn‘t review them.
But Cuozzo hardly held so much. In fact, Cuozzo had no need to explore the second path it imagined, for it quickly concluded that the argument before it was “little more than a challenge to the Patent Office‘s conclusion under §314(a),”
That‘s just the beginning of Thryv‘s precedent problems, too. In SAS Institute Inc. v. Iancu, 584 U. S. ___ (2018), an inter partes review petitioner challenged the Director‘s practice of instituting review of some, but not all, of the claims challenged in a single petition. The government argued there—much as Thryv argues today—that §314(d) shielded this unlawful practice from judicial review. In advancing this argument, the government seized on the same language in Cuozzo that Thryv now embraces, claiming that its opponent‘s “grounds for attacking the decision . . . are closely tied” to the §314(a) institution decision. Brief for Federal Respondent in SAS Institute Inc. v. Iancu, O. T. 2017, No. 16–969, p. 13. Because no one could say that the petitioner‘s argument in SAS Institute was “little more than a challenge to the Patent Office‘s conclusion under §314(a),” 584 U. S., at ___ (slip op., at 13), we were forced to confront whether Cuozzo and the relevant statutes actually barred not just institution decisions under §314(a) but things “closely related” to them.
We held they did not. We began, as we did in Cuozzo, by noting the “strong presumption in favor of judicial review.” SAS Institute, 584 U. S., at ___ (slip op., at 13) (internal quotation marks omitted). We then put an end to any doubt about what the dicta in that case might mean: “Given the strength of this presumption and the statute‘s text, Cuozzo concluded that §314(d) precludes judicial review only of the Director‘s ‘initial determination’ under §314(a).” Ibid. (quoting Cuozzo, 579 U. S., at ___ (slip op., at 9); emphasis
It‘s not surprising that litigants would invite us to overread dicta or overlook an unfavorable precedent. What is surprising is that the Court would accept the invitation. In “cases involving property,” after all, “considerations favoring stare decisis are at their acme.” Kimble v. Marvel Entertainment, LLC, 576 U. S. 446, 457 (2015) (internal quotation marks omitted). And we are often reminded that “stare decisis carries enhanced force when a decision . . . interprets a statute.” Id., at 456. But rather than searching for the kind of “superspecial justification,” id., at 458, this Court supposedly requires to overrule a precedent like SAS Institute, today‘s majority quibbles with a few sentences and quietly walks away. If, as some have worried, “[e]ach time the Court overrules a case, the Court . . . cause[s] the public to become increasingly uncertain about which cases the Court will overrule,” Franchise Tax Bd. of Cal. v. Hyatt, 587 U. S. ___, ___ (2019) (slip op., at 13), (BREYER, J., dissenting), one can only imagine what a judicial shrug of the shoulders like this might yield.
Litigants and lower courts will also have to be forgiven for the confusion to come about the meaning of §314(d)‘s review bar. Whether it is limited to the §314(a) determination (as SAS Institute held and parts of Cuozzo suggested) or also reaches to challenges grounded in “closely related”
V
It‘s a rough day when a decision manages to defy the plain language of a statute, our interpretative presumptions, and our precedent. But today that‘s not the worst of it. The Court‘s expansive reading of §314(d) takes us further down the road of handing over judicial powers involving the disposition of individual rights to executive agency officials.
We started the wrong turn in Oil States Energy Services, LLC v. Greene‘s Energy Group, LLC, 584 U. S. ___ (2018). There, a majority of this Court acquiesced to the AIA‘s provisions allowing agency officials to withdraw already-issued patents subject to very limited judicial review. As the majority saw it, patents are merely another public franchise that can be withdrawn more or less by executive grace. So what if patents were, for centuries, regarded as a form of personal property that, like any other, could be taken only by a judgment of a court of law. So what if our separation of powers and history frown on unfettered executive power over individuals, their liberty, and their property. What the government gives, the government may take away—with or without the involvement of the independent Judiciary. Today, a majority compounds that error by abandoning a good part of what little judicial review even the AIA left behind.
Just try to imagine this Court treating other individual
Some seek to dismiss this concern by noting that the bureaucracy the AIA empowers to revoke patents is the same one that grants them. But what comfort is that when the Constitution promises an independent judge in any case involving the deprivation of life, liberty, or property? Would it make things any better if we assigned the Department of the Interior the task of canceling land patents because that agency initially allocated many of them? The relevant constitutional fact is not which agency granted a property right, but that a property right was granted.
The abdication of our judicial duty comes with a price. The Director of the Patent and Trademark Office is a political appointee. The AIA vests him with unreviewable authority to institute (or not) inter partes review. Nothing would prevent him, it seems, from insulating his favorite firms and industries from this process entirely. Those who
No one can doubt that this regime favors those with political clout, the powerful and the popular. But what about those who lack the resources or means to influence and maybe even capture a politically guided agency? Consider Mr. DuVal, who 25 years ago, came up with something the Patent Office agreed was novel and useful. His patent survived not only that initial review but a subsequent administrative ex parte review, a lawsuit, and the initiation of another. Yet, now, after the patent has expired, it is challenged in still another administrative proceeding and retroactively expunged by an agency that has, by its own admission, acted unlawfully. That is what happens when power is not balanced against power and executive action goes unchecked by judicial review. Rather than securing incentives to invent, the regime creates incentives to curry favor with officials in Washington.
Nor is it hard to imagine what might lie around the corner. Despite repeated lawsuits, no court ever ruled definitively on Mr. DuVal‘s patents. But suppose one had—and suppose he had prevailed. According to the agency, even that judgment might not matter much. In other cases, the Board has claimed the power through inter partes review to overrule final judicial judgments affirming patent rights. In the Director‘s estimation, it appears, even this Court‘s decisions must bow to the Board‘s will. See XY, LLC v. Trans Ova Genetics, L. C., 890 F. 3d 1282, 1285–1286, 1294–1295 (CA Fed. 2018); Fresenius USA, Inc. v. Baxter
It‘s understandable, too, why the agency might think so much is up for grabs. Not only did this Court give away much of its Article III authority in Oil States on a mistaken assessment that patents were historically treated as public franchises rather than private rights. Some would have had the Court go even further. Rather than looking to history to determine how patents were treated, as both the majority and dissent sought to do, these Members of the Court suggested that agencies should be allowed to withdraw even private rights if “a number of factors“—taken together, of course—suggest it‘s a good idea. Commodity Futures Trading Comm‘n v. Schor, 478 U. S. 833, 851 (1986); see also Oil States, 584 U. S., at ___ (BREYER, J., concurring) (slip op., at 1). These “factors” turn out to include such definitive and easily balanced considerations as the “nature of the claim,” the “nature of the non-Article III tribunal,” and the “nature and importance of the legislative purpose served by the grant of adjudicatory authority to a tribunal with judges who lack Article III‘s tenure and compensation protections.” Stern v. Marshall, 564 U. S. 462, 513 (2011) (BREYER, J., dissenting). In other words, Article III promises that a person‘s private rights may be taken only in proceedings before an independent judge, unless the government‘s goals would be better served by a judge who isn‘t so independent.
Thryv seeks to assure us that affected parties can still file writs of mandamus in courts if the Patent Office gets really
Two years ago, this Court sanctioned a departure from the constitutional plan, one in which the Executive Branch assumed responsibilities long reserved to the Judiciary. In so doing, we denied inventors the right to have their claims tried before independent judges and juries. Today we compound that error, not only requiring patent owners to try their disputes before employees of a political branch, but limiting their ability to obtain judicial review when those
Notes
But Cuozzo concerned an appeal resting on a “related statutory section“:
We do not so lightly treat our determinations as dicta and our decisions as overruling others sub silentio. Nor can we countenance the dissent‘s dangerous insinuation that today‘s decision is not “really” binding precedent. Post, at 17–18 (“[W]ho can say?“); post, at 18 (“Litigants and lower
