More Fun with the One-Year Time Bar of § 315(b)

by Harness, Dickey & Pierce, PLC
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hourglassThe nuances of the time bar of 35 U.S.C. § 315(b) continue to be explored in various IPR decisions.  In Amneal Pharmaceuticals, LLC v. Endor Pharmaceuticals Inc., IPR2014-00360, Paper 15, Patent Owner asserted that the Petition for Inter Partes Review was time-barred under § 315(b) because Petitioner received an amended complaint in co-pending litigation, asserting the patent-at-issue, in conjunction with the filing of a motion for leave to serve an amended complaint.  As explained below, the Board found that the petition was not barred, however, because service of the amended complaint, pursuant to § 315(b), could only have been accomplished after the Court granted leave.  Service of the amended complaint, as part of the motion to amend, is not service under § 315(b).

More specifically, § 315(b) provides that an inter partes review may not be instituted based on a petition “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.”

On December 11, 2012, the ’216 patent issued to Patent Owner. Prelim. Resp. 5. On January 9, 2013, Patent Owner filed an “Unopposed Motion to Amend Complaint Under Rule 15(a)” in an ongoing litigation between Petitioner and Patent Owner.  Attached to the motion was the proposed amended complaint.  On January 14, 2013, the Court granted the motion.  In accordance with that order, on January 17, 2013, Patent Owner filed its Second Amended Complaint. Id at 3. The IPR petition in this proceeding was filed on January 16, 2014 – more than one year from the date that the motion was filed, attaching the complaint, but less than one year from the date that the complaint was actually filed, following the court’s grant of the motion to amend.

As such, Patent Owner requested denial of the Petition, arguing that Petitioner was time-barred from seeking inter partes review of the ’216 patent under § 315(b), because Petitioner was served with a complaint on January 9, 2013, i.e., more than one year before the January 16, 2014, filing date of the Petition in this proceeding. Id. at 4.  In support of its motion, Patent Owner pointed out that, per local rules of the court, electronic filing is equivalent to service.  Thus, according to Patent Owner, when the district court electronically mailed the electronic notice regarding the Motion to Amend Complaint to Petitioner, it “effected service of the Second Amended Complaint on January 9, 2014.” Paper 15 at 4. Because §315(b) refers to being “served,” Patent Owner contends that it does not matter that Patent Owner did not file the Second Amended Complaint until January 17, 2013; instead, it only mattered when Patent Owner served the Second Amended Complaint, which, according to Patent Owner, occurred on January 9, 2013. Id.

The Board was not persuaded by this creative argument from Patent Owner. Instead, the Board agreed with Petitioner that Patent Owner did not “have the legal right to file or serve the Second Amended Complaint (‘SAC’) until the District Court granted it leave to do so on January 14, 2013.” Id. Petitioner cited Federal Rule of Civil Procedure 15(a)(2), which permits a party to file an amended pleading “once as a matter of course,” but requires that “in all other cases, a party may amend its pleading only with the opposing party’s written consent or court’s leave.” Fed. R. Civ. P. 15(a)(2). Under this rule, according to Petitioner, Patent Owner required the district court’s leave to file the SAC. Reply 3. Paper at 4. Thus, Patent Owner filed and served the SAC on January 17, 2013, after the court granted that leave. Id.  The Board agreed.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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