IN THE UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT

No. 10-20673

PRESSURE SYSTEMS INTERNATIONAL, INCORPORATED,

Plaintiff - Appellant

v.

AIRGO IP, L.L.C.; AIRGO SYSTEMS, L.L.C.; ANTHONY INGRAM; JOHN

BRADLEY,

Defendants - Appellees

----------------------------------------------------------------------------------

PRESSURE SYSTEMS INTERNATIONAL, INCORPORATED, 

 Plaintiff - Appellant

v.

AIRGO IP, L.L.C.; AIRGO SYSTEMS, L.L.C.; JOHN BRADLEY; ANTHONY

INGRAM 

 Defendants - Appellees

Appeal from the United States District Court

for the Southern District of Texas

USDC Nos. 4:08-CV-245,

4:08-CV-200

Before SMITH, SOUTHWICK, and GRAVES, Circuit Judges.

United States Court of Appeals

Fifth Circuit

F I L E D

July 25, 2011

Lyle W. Cayce

Clerk

Case: 10-20673 Document: 00511550113 Page: 1 Date Filed: 07/25/2011
No. 10-20673

PER CURIAM:*

The district court’s jurisdiction depended on federal patent law. This

appeal should have been taken to the United States Court of Appeals for the

Federal Circuit. We TRANSFER the case to that court.

In 1997 and 2003, John Bradley, a consulting engineer for Pressure

Systems International, allegedly signed two consulting agreements with

Anthony Ingram, owner of Airgo IP and Airgo Systems. The consulting

agreements assigned to Airgo the intellectual property rights to Bradley’s work

for Airgo. Between 1997 and 2005, three patents were issued to Airgo,

potentially arising out of Bradley’s work. After Bradley was fired from Airgo, he

sold to Pressure Systems any rights he might have to Airgo’s patents.

In May 2007, Pressure Systems filed suit against Airgo in Texas state

court, seeking a declaratory judgment that the consulting agreements between

Airgo and Bradley were void. The suit was removed to federal court but later

remanded. In January 2008, Pressure Systems amended its remanded Texas

state court action by seeking to have itself declared a bona fide purchaser

pursuant to a statute governing assignment of patents. See 35 U.S.C. § 261. 

Also in January 2008, Pressure Systems filed an action in federal court to have

Bradley declared an inventor under the provisions for patentability of

inventions. See id. §§ 100-05.

Airgo again removed the state court action to federal court. Airgo argued

there was federal jurisdiction because determining whether the consulting

agreements were valid assignments of patent rights required the court to decide

whether Bradley had an ownership interest in the intellectual property. He

would only have an ownership interest if he were an “inventor” – a question of

 Pursuant to 5TH CIR. R. 47.5, the court has determined that this opinion should not *

be published and is not precedent except under the limited circumstances set forth in 5TH CIR.

R. 47.5.4.

2

Case: 10-20673 Document: 00511550113 Page: 2 Date Filed: 07/25/2011
No. 10-20673

patent law. Without an opinion, the district court denied Pressure Systems’

motion to remand and subsequently consolidated the two cases.

The district court granted summary judgmentin favor of Airgo, concluding

that laches barred the inventorship claim, leaving Bradley without rights to

assign to Pressure Systems. The court also held that the issue of inventorship

had already been decided in a patent infringement suit which Airgo filed in the

United States District Court for the Western District of Oklahoma in 2005. 

In the Oklahoma suit, the defendant Pressure Systems counter-claimed

that Airgo had infringed one of its patents and that Airgo’s patents were invalid. 

The Oklahoma district court entered an interlocutory order that Pressure

Systems had not infringed on Airgo’s patents. Airgo IP, LLC v. Arvinmeritor,

Inc., No. CIV-05-1405-R, 2007 WL 6382683, at *1-9 (W.D. Okla. Feb. 23, 2007). 

Relying on the finding of no infringement, the court in its final order dismissed

as moot the counterclaim filed by Pressure Systems that the Airgo patents were

invalid because the true inventor had not been named in the patent applications. 

The Federal Circuit affirmed without opinion. Airgo IP, LLC v. Arvinmeritor,

Inc., 277 F. App’x 1023 (Fed. Cir. 2008). In the current suit, the district court

held that the Federal Circuit’s affirmance of the Oklahoma decision, which

included the ruling on the inventorship issue, was binding in the new litigation. 

Our initial question is whether we are the right court to review that

decision. The Federal Circuit has exclusive jurisdiction “of an appeal from a

final decision of a district court . . . if the jurisdiction of that court was based, in

whole or in part, on [28 U.S.C. §] 1338,” i.e., if jurisdiction is based on patent

law. 28 U.S.C. § 1295(a)(1). The Federal Circuit has exclusive jurisdiction when

the case is one “‘arising under’ a federal patent statute, for if it is then the

jurisdiction of the District Court was based at least ‘in part’ on § 1338.” 

Christianson v. Colt Indus. Operating Corp., 486 U.S. 800, 807 (1988). “An

action arises under the federal patent laws if the complaint includes allegations

3

Case: 10-20673 Document: 00511550113 Page: 3 Date Filed: 07/25/2011
No. 10-20673

that federal patent law creates the cause of action or federal patent law is a

necessary element of the claim.” Scherbatskoy v. Halliburton Co., 125 F.3d 288,

291 (5th Cir. 1997) (citation omitted). A district court’s jurisdiction is

determined by looking at the complaint when it was filed, not at the final

resolution of the matter. See id.; Robert L. Harmon, Patents and the Federal

Circuit § 19.1(b) at 1234 (9th ed. 2009) (collecting cases).

The district court did not explain its denial of Pressure Systems’ motion

to remand. Airgo’s response to the motion to remand relied solely on a supposed

need to determine the question of inventorship, which would give jurisdiction

under 28 U.S.C. § 1338. See Shum v. Intel Corp., 633 F.3d 1067, 1076 n.4 (Fed.

Cir. 2010). When state law claims require a determination of inventorship, they

“necessarily involve a substantial question of federal patent law.” Id. (citation

omitted)

Pressure Systems argues that the district court erred in finding the issue

of inventorship foreclosed by the Oklahoma decision. Any ruling by this court

would either approve or remove the bar to the patent claim. The resolution of

that patent claim would necessarily involve interpretation of patent law, and

that law was likely the basis not only for the refusal to remand but also for most

of the district court’s final decision. See Chamberlain Group, Inc. v. Skylink

Tech., Inc., 381 F.3d 1178, 1188-89 (Fed. Cir. 2004) (“effective adjudication” of

a patent law claim confirms Section 1295 jurisdiction in the Federal Circuit).

We conclude the district court’s jurisdiction was based on 28 U.S.C. § 1338. 

Consequently, we do not have jurisdiction. 28 U.S.C. § 1295(a). When we lack

appellate jurisdiction, we may, “in the interest of justice,” transfer the appeal to

the circuit court that can resolve the appeal. Id. § 1631. It is in the interest of

justice to transfer this case. The clerk of this court is directed to transmit the

record, briefs, and other documents relating to this appeal to the clerk of the

Federal Circuit. APPEAL TRANSFERRED.

4

Case: 10-20673 Document: 00511550113 Page: 4 Date Filed: 07/25/2011