No Interlocutory Appeals From State’s Bond Order

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MICRON TECHNOLOGY INC. v. LONGHORN IP LLC

Before Lourie, Schall, and Stoll. Appeal from the United States District Court for the District of Idaho.

Summary: Immediate appellate review may be unavailable for interlocutory bond orders issued under state law in patent-related disputes.

Longhorn and Katana (collectively Longhorn) sued Micron for patent infringement. Micron asserted a counterclaim under Idaho’s Bad Faith Assertions of Patent Infringement Act (“the Act”), alleging the infringement claims were made in bad faith. Longhorn moved to dismiss, arguing the Act was preempted by federal law. The district court denied the motion, found a reasonable likelihood of bad faith assertion of patent infringement, and imposed an $8 million bond under the Act.

Longhorn appealed the bond order. Though there was no final judgment, Longhorn argued that the order was immediately appealable as: (1) an injunctive order; (2) a collateral order; or (3) under the All Writs Act. The Federal Circuit disagreed and dismissed the appeal for lack of jurisdiction. The court explained that the bond order was neither an injunction nor an order having the effect of an injunction; that the narrow collateral-order doctrine did not apply because the bond order was closely tied to the merits of Micron’s bad faith claim and could be remedied after final judgment; and that mandamus was unavailable because Longhorn had other adequate means of relief.

Because the Federal Circuit held it lacked jurisdiction over the appeal, it did not address issue of preemption of the Idaho state law statute.

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