In Re BOLORO GLOBAL LIMITED ( 2020 )


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  • Case: 19-2349   Document: 35    Page: 1    Filed: 07/07/2020
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    IN RE: BOLORO GLOBAL LIMITED,
    Appellant
    ______________________
    2019-2349, -2351, -2353
    ______________________
    Appeals from the United States Patent and Trademark
    Office, Patent Trial and Appeal Board in Nos. 14/222,613,
    14/222,615, and 14/222,616.
    ______________________
    ON MOTION
    ______________________
    MICHAEL RAYMOND CASEY, Oblon, McClelland, Maier
    and Neustadt, LLP, Alexandria, VA, for appellant. Also
    represented by JAMES LOVE; CARLOS RAFAEL VILLAMAR,
    The Villamar Firm PLLC, Falls Church, VA.
    ROBERT J. MCMANUS, Office of the Solicitor, United
    States Patent and Trademark Office, Alexandria, VA, for
    appellee Andrei Iancu. Also represented by THOMAS W.
    KRAUSE, FARHEENA YASMEEN RASHEED, MOLLY R. SILFEN,
    NICHOLAS THEODORE MATICH, IV, DANIEL KAZHDAN;
    COURTNEY DIXON, SCOTT R. MCINTOSH, MELISSA N.
    PATTERSON, JOSEPH H. HUNT, Appellate Staff, Civil Divi-
    sion, United States Department of Justice, Washington,
    DC.
    ______________________
    Case: 19-2349    Document: 35      Page: 2    Filed: 07/07/2020
    2                              IN RE: BOLORO GLOBAL LIMITED
    Before LOURIE, DYK, and REYNA, Circuit Judges.
    DYK, Circuit Judge.
    ORDER
    Boloro Global Limited moves to vacate and remand the
    underlying decisions of the Patent Trial and Appeal Board
    in these appeals from the Board’s decisions in ex parte ap-
    peals, affirming the examiner’s rejection of claims in Bo-
    loro’s patent applications. The Director of the United
    States Patent and Trademark Office opposes the motion.
    Both parties have filed supplemental briefing in support of
    their respective positions.
    The Director acknowledges that, under the reasoning
    of this court’s decisions in Arthrex, Inc. v. Smith & Nephew,
    Inc., 
    941 F.3d 1320
     (Fed. Cir. 2019), and VirnetX Inc. v.
    Cisco Sys., Inc., No. 2019-1671, 
    2020 WL 2462797
     (Fed.
    Cir. May 13, 2020), the administrative patent judges
    (APJs) were not constitutionally appointed at the time the
    Board’s final decision on appeal was issued. See Director’s
    2d Suppl. Resp. at 3–4 (conceding that it follows under the
    reasoning of the Supreme Court’s decision in Freytag v.
    Comm’r, 
    501 U.S. 868
    , 882 (1991), as understood in Vir-
    netX, that “APJs were principal officers for purposes of all
    governmental functions of their office”); see also id. at 4
    (conceding that, even if the Director could refuse to issue a
    patent if the Board approves an application, that would not
    render an APJ an inferior officer).
    In both Arthrex and VirnetX, this court held that the
    appropriate remedy for such a constitutional violation was
    to vacate the Board’s decision and to remand for the pur-
    pose of reassigning the matter to a different panel of APJs
    for a new hearing and decision. Arthrex, 941 F.3d at 1338–
    39; VirnetX Inc. v. Cisco Sys., Inc., No. 2019-1671, slip op.
    at 2 (Fed. Cir. Jan. 24, 2020). The Director urges that the
    same remedy should not be extended to ex parte proceed-
    ings because, according to the Director, he possesses
    Case: 19-2349       Document: 35   Page: 3     Filed: 07/07/2020
    IN RE: BOLORO GLOBAL LIMITED                                 3
    “complete control over the initial examination” and could
    at any time prior to the Board proceedings have directed
    the issuance of Boloro’s patents but did not, consistent with
    the Board’s subsequent decisions. But the Director having
    conceded that the APJ’s appointments were unconstitu-
    tional, we see no principled reason to depart here from the
    resulting remedy applied in Arthrex and VirnetX.
    Accordingly,
    IT IS ORDERED THAT:
    (1) Boloro’s motion to vacate and remand is granted.
    The Patent Trial and Appeal Board’s decision is va-
    cated, and the case is remanded to the Board for pro-
    ceedings consistent with this court’s decision in
    Arthrex.
    (2) Each side shall bear its own costs.
    FOR THE COURT
    July 7, 2020                      /s/ Peter R. Marksteiner
    Date                           Peter R. Marksteiner
    Clerk of Court
    

Document Info

Docket Number: 19-2349

Filed Date: 7/7/2020

Precedential Status: Precedential

Modified Date: 7/7/2020