Opinion ID: 767687
Heading Depth: 2
Heading Rank: 2

Heading: jurisdiction

Text: 46 Gartside argues that the Board erred in retaining jurisdiction over the interference proceeding, as no interfering subject matter remained after Forgac's withdrawal from the interference. Gartside thus contends that the interference should have been dissolved and that the patentability issues should have been decided by the examiner ex parte. Gartside further asserts that the Board abused its discretion in addressing those issues, as the public interest relied on in Perkins v. Kwon was not here implicated, and the denial of remand to the examiner deprived him of certain procedural safeguards, e.g., the right to amend, refile as a continuation application, and present evidence of unexpected results. 47 Citing Guinn v. Kopf, 96 F.3d 1419, 40 USPQ2d 1157 (Fed. Cir. 1996), the Commissioner responds that Forgac's withdrawal did not divest the Board of jurisdiction to decide the patentability issues developed during the interference, and that under Perkins, the Board must decide all issues fairly raised and fully developed during the interference. The Commissioner further contends that the Board did not abuse its discretion in deciding the patentability of Gartside's claims because the public interest in Perkins was implicated and Gartside was denied no procedural safeguards, as Gartside's procedural options in the interference paralleled his options in ex parte examination. 48 Section 135(a) sets forth the Commissioner's authority to declare interference proceedings and the Board's jurisdiction to resolve issues relating to priority and patentability that arise during such proceedings. Section 135(a) provides in relevant part that: 49 (a) Whenever an application is made for a patent which, in the opinion of the Commissioner, would interfere with any pending application, or with any unexpired patent, an interference may be declared and the Commissioner shall give notice of such declaration to the applicants, or the applicant and patentee, as the case may be. The Board of Patent Appeals and Interferences shall determine questions of priority of the inventions and may determine questions of patentability. 50 35 U.S.C. § 135(a) (1994) (emphasis added). In Perkins, we held that under § 135(a), the Board should decide issues relating to priority and patentability that are fairly raised and fully developed during the interference, despite the permissive language of § 135(a) with respect to patentability issues. See Perkins, 886 F.2d at 328-29, 12 USPQ2d at 1310-11; see also Schulze, 136 F.3d at 792, 45 USPQ2d at 1774-75; Wu v. Wang, 129 F.3d 1237, 1242, 44 USPQ2d 1641, 1645 (Fed. Cir. 1997). We noted that the permissive language addresses the situation when patentability is not placed at issue during the priority contest, but it would contradict the remedial purpose of the legislation if the Board could refuse to decide questions of patentability for which there had been adduced an appropriate record. See Perkins, 886 F.2d at 328, 12 USPQ2d at 1311. 51 In Guinn we extended Perkins, holding that even when a party attempts to terminate the interference by disclaiming all of its claims relating to the count, the Board should decide priority when priority issues have been fairly raised and fully developed at the Board. See Guinn, 96 F.3d at 1421-22, 40 USPQ2d at 1159. In that case, Guinn attempted to terminate the interference by disclaiming his one claim that corresponded to the count, see 35 U.S.C. § 253 (1994), and moving to dismiss for lack of jurisdiction on the basis of a lack of controversy. See Guinn, 96 F.3d at 1420, 40 USPQ2d at 1158. Guinn argued that absent a priority dispute, the Board lacked jurisdiction to enter judgment against him in the interference pursuant to 37 C.F.R. § 1.662. See id. Rather than dismiss, however, the Board entered judgment against Guinn. See id. 52 Guinn appealed and we affirmed, holding that the disclaimer of all the claims corresponding to a count did not divest the Board of jurisdiction over the interference. See id. at 1421-22, 40 USPQ2d at 1159. We reasoned that once an interference has been properly declared, § 135(a) directs that the Board shall determine questions of priority, and that under Perkins, the Board should resolve priority issues that have been fully developed before the Board. See id. 53 Based on Perkins and Guinn, we agree with the Commissioner that Forgac's withdrawal did not divest the Board of jurisdiction over the interference, and that the Board did not abuse its discretion in deciding the patentability of Gartside's claims. Even though Guinn involved a remaining issue of priority rather than patentability, we agree with the Commissioner that Guinn is sufficiently on point. In Forgac's notice to withdraw his request for a final hearing, Forgac authorized the APJ to cancel claims 1, 2, and 13 from the '058 patent, see Paper No. 63 at 2, the functional equivalent of Guinn disclaiming his claims corresponding to the count under § 253. Likewise, neither party here disputes that the interference was properly declared. While part of our reasoning in Guinn hinged on the fact that § 135(a) mandates that the Board shall determine questions of priority, in Perkins we interpreted the language may determine issues of patentability as nearly mandatory when those issues have been fairly raised and fully developed before the Board. See Perkins, 886 F.2d at 328-29, 12 USPQ2d at 1310-11. Moreover, as with the priority issues in Guinn, the issues surrounding the patentability of Gartside's claims were fairly raised and fully developed during the proceeding. 9 Accordingly, we conclude that the Board properly resolved these issues under § 135(a). 54 As we noted supra, the APJ raised the issue of the patentability of claims 41, 45, and 46 sua sponte. To the extent that the sua sponte holding meant that Forgac did not properly place the patentability of these claims at issue before the Board, we agree with the Commissioner that the Board acted within its discretion to decide the patentability of those claims based on the public interest as noted in Perkins and the fact that Gartside was in no way prejudiced by resolution of those issues by the Board rather than the examiner. 55 First, the public interest as discussed in Perkins is clearly served by the Board's resolution of the patentability issues surrounding Gartside's claims. The Board had already addressed the patentability issues with respect to claims 34, 35, 37-40, and 42-44, and the validity of claims 41, 45, and 46 turned on two of the same references used to invalidate those other claims. By deciding the patentability of claims 41, 45, and 46, the Board avoided yet another round of duplicative arguments before the examiner and achieved a timely resolution to the benefit of the parties and the public in general. As we stated in Perkins: 56 The Board, by resolving both priority and patentability when these questions are fully presented, settles not only the rights between the parties but also rights of concern to the public. The public interest in the benefits of a patent system is best met by procedures that resolve administratively questions affecting patent validity that arise before the PTO. To do otherwise is contrary to the PTO's mission to grant presumptively valid patents, 35 U.S.C. § 282, and thus disserves the public interest. 57 Perkins, 886 F.2d at 328-29, 12 USPQ2d at 1311. 58 Moreover, we agree with the Commissioner that Gartside was not denied any procedural safeguards by the Board's refusal to remand to the examiner. Gartside was afforded the opportunity to redefine the interfering subject matter by amending his claims, see 37 C.F.R. § 1.633(c)(2) (1999), and he was free to file a continuation application, see 37 C.F.R. § 1.633(d) (1999); see also 35 U.S.C. § 120 (1994). Moreover, 37 C.F.R. § 1.639 permits a party to introduce evidence in support of motions, oppositions, and replies, and 37 C.F.R. § 1.640(e)(3) also enables a party to introduce evidence in response to an order to show cause. Although Gartside alleges that he was prejudiced for want of other assorted procedural safeguards, these allegations are similarly without merit. 59 In sum, we conclude that the Board did not err in retaining jurisdiction over the interference to decide the patentability of Gartside's claims. 60