Snyders Heart Valve LLC v. St. Jude Medical, LLC

Case: 19-2111 Document: 65 Page: 1 Filed: 09/09/2020 NOTE: This disposition is nonprecedential. United States Court of Appeals for the Federal Circuit ______________________ SNYDERS HEART VALVE LLC, Appellant v. ST. JUDE MEDICAL, LLC, Appellee UNITED STATES, Intervenor ______________________ 2019-2111 ______________________ Appeal from the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2018- 00107. ______________________ Decided: September 9, 2020 ______________________ MATTHEW JAMES ANTONELLI, Antonelli, Harrington & Thompson, LLP, Houston, TX, for appellant. Also repre- sented by ZACHARIAH HARRINGTON, LARRY D. THOMPSON, JR.; SARAH RING, Daniels & Tredennick, Houston, TX. JOHN C. O'QUINN, Kirkland & Ellis LLP, Washington, DC, for appellee. Also represented by HANNAH LAUREN Case: 19-2111 Document: 65 Page: 2 Filed: 09/09/2020 2 SNYDERS HEART VALVE LLC v. ST. JUDE MEDICAL, LLC BEDARD, JASON M. WILCOX; BRYAN SCOTT HALES, KRISTINA NICOLE HENDRICKS, Chicago, IL. MELISSA N. PATTERSON, Appellate Staff, Civil Division, United States Department of Justice, Washington, DC, for intervenor. Also represented by COURTNEY DIXON, SCOTT R. MCINTOSH, ETHAN P. DAVIS; THOMAS W. KRAUSE, ROBERT MCBRIDE, FARHEENA YASMEEN RASHEED, Office of the Solicitor, United States Patent and Trademark Office, Alexandria, VA. ______________________ Before NEWMAN, O’MALLEY, and TARANTO, Circuit Judges. PER CURIAM. In its opening brief, Snyders Heart Valve LLC (“Snyders”) argues that the final written decision of the Pa- tent Trial and Appeal Board (“Board”) at issue in this ap- peal violates the Constitution’s Appointments Clause because it was rendered by an unconstitutionally ap- pointed panel of Administrative Patent Judges. Appel- lant’s Br. 14. We decided this issue in Arthrex, Inc. v. Smith & Nephew, Inc., 941 F.3d 1320 (Fed. Cir. 2019). 1 Under Arthrex, which post-dated the Board’s final written 1 Snyders argues that the Arthrex remedy is insuffi- cient because it does not allow for review of the Board’s de- cisions by a superior officer and is inconsistent with Congress’s intent that Administrative Patent Judges act independently. Appellant’s Br. at 15–16. We do not sepa- rately address these argument as we are bound by Arthrex. Arthrex, Inc. v. Smith & Nephew, Inc., 941 F.3d 1320, 1338 (Fed. Cir. 2019). Case: 19-2111 Document: 65 Page: 3 Filed: 09/09/2020 SNYDERS HEART VALVE LLC v. ST. JUDE MEDICAL, LLC 3 decision in this case, Snyders is entitled to vacatur and re- mand for a hearing before a properly appointed Board. 2 Snyders further argues that due to its own unique cir- cumstances it is entitled to greater relief than that afforded to the appellant in Arthrex. Appellant’s Br. 16–18. In Snyders’ case, the Director of the United States Patent and Trademark Office (“USPTO”), Andre Iancu, served as coun- sel for the Appellee St. Jude Medical LLC (“St. Jude”) in a parallel proceeding prior to his appointment as Director. Director Iancu has therefore recused himself from this case. Snyders argues that the Director’s conflict should be imputed to all USPTO employees and that his recusal should impact the remedy available to Snyders. This argu- ment is without merit. The USPTO’s Deputy Director has the authority to step into the shoes of Director in the event of the Director’s “incapacity.” 35 U.S.C. § 3(b)(1). A conflict requiring recusal qualifies as an “incapacity” within the meaning of the statute. Cf. In re Grand Jury Investigation, 916 F.3d 1047, 1055–56 (D.C. Cir. 2019) (discussing, under a similar statutory scheme, the Deputy Attorney General’s authority to oversee a case when the Attorney General is recused). The Deputy Director’s role sufficiently removes any potential taint of the Director’s conflict. We see no rea- son why, moreover, the Director’s lack of participation oth- erwise impacts the Arthrex remedy analysis. Accordingly, 2 St. Jude argues that because Snyders expressly waived its Arthrex-based challenge in a companion appeal, Case Nos. 2019-2108, -2109, -2140, we should deem the ar- gument waived in this appeal. Snyders was not obligated to press every argument available to it in a different appeal to maintain its rights in this one. The companion appeal addresses inter partes reviews of a different patent than the one at issue in this appeal. We do not find waiver on this record. Case: 19-2111 Document: 65 Page: 4 Filed: 09/09/2020 4 SNYDERS HEART VALVE LLC v. ST. JUDE MEDICAL, LLC Snyders is entitled to the same relief given to the Arthrex appellant and no more. The decision of the Board is thus vacated and re- manded for proceedings consistent with our decision in Ar- threx. VACATED AND REMANDED COSTS No costs.