`Filed: February 8, 2019
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`UNITED STATES PATENT AND TRADEMARK OFFICE
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`____________________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`____________________________
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`MYLAN PHARMACEUTICALS INC.
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`and
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`DR. REDDY’S LABORATORIES, INC.,
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`Petitioners
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`v.
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`HORIZON PHARMA USA, INC. and NUVO PHARMACEUTICALS
`(IRELAND) DESIGNATED ACTIVITY COMPANY,
`Patent Owners.
`____________________________
`
`Case No. IPR2017-019951
`U.S. Patent No. 9,220,698
`____________________________
`
`SUPPLEMENTAL BRIEF ON APPLICABILITY OF
`CLICK-TO-CALL TECHNOLOGIES, LP V. INGENIO, INC.
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`
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`1 Petitioner Dr. Reddy’s Laboratories, Inc. (“DRL”), from IPR2018-00894, has
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`been joined as a Petitioner to this proceeding.
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`Mylan respectfully submits this supplemental brief to address whether the
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`Federal Circuit’s decision in Click-to-Call Technologies, LP v. Ingenio, Inc., 899
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`F.3d 1321 (Fed. Cir. 2018) warrants reversal of the Board’s repeated prior
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`decisions concluding that Mylan’s Petition is not time-barred under 35 U.S.C.
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`§ 315. The answer to that question is unequivocally no. The relevant facts2 are as
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`follows:
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` February 19, 2016. Mylan filed an answer and counterclaims to Patent
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`Owners’ second amended complaint in “Case 2” (Case No. 15-3327
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`(D.N.J.)), which included counterclaims for declarations of invalidity and
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`non-infringement of the ’698 patent. Ex. 2005.
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` March 7, 2016. Patent Owners answered these counterclaims, but did not
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`assert any affirmative claims or file an amended complaint. Ex. 2006.
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` August 25, 2016. Mylan was for the first time served with a complaint
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`alleging infringement of the ’698 patent, filed and served in “Case 3” (Case
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`No. 16-4921 (D.N.J.)). Paper No. 34 at 3.
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` February 23, 2017. The district court dismissed without prejudice Mylan’s
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`counterclaims regarding the ’698 patent in Case 2. Ex. 1047.
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` August 24, 2017. Mylan petitioned for inter partes review of the ’698
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`patent and was accorded an August 24, 2017 filing date.
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`2 The dispute here relates only to Petitioner Mylan Pharmaceuticals Inc.
`1
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`On the facts above, Patent Owners have twice pressed that Mylan’s Petition
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`is time barred, first, in their preliminary response (Paper No. 10 at 10), and again in
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`a request for rehearing of the institution decision (Paper No. 24). The Board has
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`twice (correctly) rejected that theory. See Paper Nos. 18 & 34.
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`
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`In its institution decision, the Board concluded that the Petition was not
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`time-barred because Mylan’s February 2016 counterclaims were dismissed without
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`prejudice. Paper No. 18 at 12-13. This without-prejudice dismissal “place[d] the
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`parties in a position as if the action was never filed.” Id. at 13. While the Board’s
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`ultimate decision rested on the nature of the dismissal, the Board also noted a
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`second reason the petition was not time barred: “Patent Owner does not direct us
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`to any persuasive authority to support the proposition that § 315(a) was intended to
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`apply to a counterclaim challenging the validity of patent claims where the patent
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`is not the subject of the complaint.” Id. Indeed, as noted by the Board, a
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`counterclaim challenging validity simply “is not a civil action.” Id. at 12.
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`The Board later affirmed its ruling in denying Patent Owners’ request for
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`rehearing. Paper No. 34 at 4-5. The crux of Patent Owners’ argument was that the
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`counterclaims were not dismissed without prejudice, but instead consolidated into
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`a later-filed case, and thus the bars of both § 315(a) and (b) applied. See Paper No.
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`24 at 1, 8. In denying the request for rehearing, the Board not only disagreed that
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`the counterclaims were, in fact, consolidated into the later-filed case, but also
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`2
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`
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`appropriately made clear that the Patent Owners “did not assert that Petitioner
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`infringed the ’698 patent” and “did not file a complaint against [Mylan] alleging
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`infringement of the ’698 patent in the earlier case ….” Paper No. 34 at 3-5.3
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`
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`Click-to-Call does not warrant a departure from the Board’s repeated prior
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`decisions. In Click-to-Call, the Federal Circuit held that § 315(b)’s time bar
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`applies “when an IPR petitioner was served with a complaint for patent
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`infringement more than one year before filing its petition, but the district court
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`action in which the petitioner was so served was voluntarily dismissed without
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`prejudice.” 899 F.3d at 1328 n.3. In other words, under Click-to-Call, while
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`§ 315(b) requires both (1) a complaint and (2) service of a complaint to start the
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`time-bar clock, events transpiring after service (e.g., dismissal) do not set the clock
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`back. See id. at 1330-36. As to what constitutes a complaint and service thereof,
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`the Click-to-Call court found that the words of the statute were unambiguous. Id.
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`at 1330. The term “complaint” means “[t]he initial pleading that starts a civil
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`action and states the basis for . . . the plaintiff’s claim.” Id. (quoting Black’s Law
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`Dictionary 323 (9th ed. 2009)). The common meaning of “serve” is “[t]o make
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`legal delivery of (a notice or process).” Id. (quoting Black’s Law Dictionary 1491
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`(9th ed. 2009)); see also id. (“[t]o present (a person) with a notice or process as
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`3 Patent Owners also asserted that DRL’s petition is barred, IPR2018-00894, Paper
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`No. 8 at 1-2; the Board again disagreed, id., Paper No. 10 at 5 n.4.
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`3
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`
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`required by law,” … “[t]he formal delivery of a writ, summons, or other legal
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`process” (quoting Black’s Law Dictionary 1491 (9th ed. 2009)).
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`Properly applied, Click-to-Call does not detract from—but supports—the
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`propriety of institution here. Under Click-to-Call, Patent Owners’ answer to
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`Mylan’s counterclaim was not “serv[ing] a complaint alleging infringement of the
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`patent” on Mylan, as required under 35 U.S.C. § 315(b). Paper No. 16 at 2; Paper
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`No. 34 at 3-4. “[T]he phrase ‘served with a complaint’ has a specific legal
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`connotation synonymous with formal delivery of a complaint in a civil action.”
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`Amkor Tech., Inc. v. Tessera, Inc., IPR2013-00242, 2014 WL 2864151 (P.T.A.B.
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`Jan. 31, 2014), Paper No. 98 (cited with approval in Click-to-Call); Click-to-Call,
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`899 F.3d at 1330 (“§ 315(b)’s time bar is implicated once a party receives notice
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`through official delivery of a complaint in a civil action, irrespective of subsequent
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`events”). Patent Owners’ answer fulfills neither requirement—Patent Owners filed
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`no complaint, let alone served a complaint on Mylan, as expressly required by
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`§ 315(b). And, unlike the patent owner in St. Jude Medical, Cardiology Div., Inc.
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`v. Volcano Corp., IPR2013-00258, Paper 29 (P.T.A.B. Oct. 16, 2013), Patent
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`Owners here did not file an amended complaint or raise affirmative ’698 patent
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`counterclaims in Case 2. Paper No. 34 at 3-5. Mylan thus was not “served with a
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`complaint alleging infringement of a patent” until August 25, 2016, less than one
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`4
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`
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`year before the filing of Mylan’s Petition. Accordingly, the Petition is not barred
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`under § 315(b).
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`
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`Patent Owners are therefore left with only their challenge under 35 U.S.C.
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`§ 315(a)(1). This too fails. Namely, Mylan’s February 9, 2016 counterclaim does
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`not constitute “fil[ing] a civil action challenging the validity of a claim of the
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`patent” under 35 U.S.C. § 315(a)(1). In fact, §315(a) is unequivocal that “[a]
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`counterclaim challenging the validity of a claim of a patent does not constitute a
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`civil action challenging the validity of a claim of a patent for purposes of
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`[§ 315(a)].” 35 U.S.C. § 315(a)(3); see also Paper No. 18 at 13 (“Patent Owner
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`does not direct us to any persuasive authority to support the proposition that
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`§ 315(a) was intended to apply to a counterclaim challenging the validity of patent
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`claims where the patent is not the subject of the complaint.”). Patent Owner’s
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`reliance on Amkor Technology, Inc., 2014 WL 2864151 (P.T.A.B. Jan. 31, 2014)—
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`which addresses whether a Patent Owner’s counterclaims may trigger the bar under
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`§ 315(b)—is thus misplaced.
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`
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`Under the reasoning of Click-to-Call, Mylan’s Petition is therefore timely,
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`and the Board’s institution decision and denial of rehearing were proper.
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`Accordingly, for the reasons described above and in Mylan’s prior submission
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`(Paper No. 16), Petitioner respectfully requests the Board again affirm its decision
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`that the Petition is not time barred under 35 U.S.C. § 315(a) or (b).
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`5
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`
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` Dated: February 8, 2019
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`
`
`/Brandon M. White/
`
`
`
`
`
`Brandon M. White
`Reg. No. 52,354
`
`PERKINS COIE LLP
`700 13th Street, NW, Suite 600
`Washington, D.C. 20005
`Telephone: (202) 654-6206
`Facsimile: (202) 654-6211
`Email: bmwhite@perkinscoie.com
`
`Attorney for Mylan Pharmaceuticals Inc.
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`
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`6
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`CERTIFICATE OF SERVICE
`The undersigned hereby certifies that the foregoing Supplemental Brief on
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`the Applicability of Click-to-Call Technologies, LP v. Ingenio, Inc. was served
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`
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`
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`electronically via email as follows:
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`Patent Owners:
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`Thomas A. Blinka
`Jonathan G. Graves
`Susan Krumplitsch
`Ellen Scordino
`Lauren Krickl
`Cooley LLP
`zIPR2017-01995@cooley.com
`
`Margaret J. Sampson
`Stephen M. Hash
`Jeffrey S. Gritton
`Baker Botts LLP
`pozen-
`vimovoBB@bakerbotts.com
`Petitioner Dr. Reddy’s:
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`Alan H. Pollack
`Dmitry V. Shelhoff
`Stuart D. Sender
`Louis H. Weinstein
`apollack@buddlarner.com
`dshelhoff@buddlarner.com
`ssender@buddlarner.com
`lweinstein@buddlarner.com
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`7
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`
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`Dated: February 8, 2019
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`
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`
`
`/Brandon M. White/
`Brandon M. White
`
`Attorney for Mylan Pharmaceuticals Inc.
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`
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`8
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