Nos. 19-1434, 19-1452, and 19-1458
`
`IN THE
`Supreme Court of the United States
`————
`UNITED STATES OF AMERICA,
`Petitioner,
`
`v.
`ARTHREX, INC., ET AL.,
`Respondents.
`
`————
`On Writ of Certiorari
`to the United States Court of Appeals
`for the Federal Circuit
`————
`BRIEF FOR ARTHREX, INC.
`————
`JEFFREY A. LAMKEN
`Counsel of Record
`ROBERT K. KRY
`JAMES A. BARTA
`MOLOLAMKEN LLP
`The Watergate, Suite 500
`600 New Hampshire Ave., N.W.
`Washington, D.C. 20037
`(202) 556-2000
`jlamken@mololamken.com
`
`JORDAN A. RICE
`MOLOLAMKEN LLP
`300 North LaSalle Street
`Chicago, IL 60654
`(312) 450-6700
`
`
`ANTHONY P. CHO
`DAVID J. GASKEY
`JESSICA E. FLEETHAM
`DAVID L. ATALLAH
`CARLSON, GASKEY & OLDS, P.C.
`400 West Maple Road, Suite 350
`Birmingham, MI 48009
`(248) 988-8360
`
`CHARLES W. SABER
`SALVATORE P. TAMBURO
`BLANK ROME LLP
`1825 Eye Street, N.W.
`Washington, D.C. 20006
`(202) 420-2200
`
`JOHN W. SCHMIEDING
`TREVOR ARNOLD
`ARTHREX, INC.
`1370 Creekside Blvd.
`Naples, FL 34108
`(239) 643-5553
`
`Counsel for Arthrex, Inc.
`(additional captions on inside cover)
`(cid:58)(cid:44)(cid:47)(cid:54)(cid:50)(cid:49)(cid:16)(cid:40)(cid:51)(cid:40)(cid:54)(cid:3)(cid:51)(cid:53)(cid:44)(cid:49)(cid:55)(cid:44)(cid:49)(cid:42)(cid:3)(cid:38)(cid:50)(cid:17)(cid:15)(cid:3)(cid:44)(cid:49)(cid:38)(cid:17)(cid:3)(cid:3)(cid:3)(cid:177)(cid:3)(cid:3)(cid:3)(cid:11)(cid:21)(cid:19)(cid:21)(cid:12)(cid:3)(cid:26)(cid:27)(cid:28)(cid:16)(cid:19)(cid:19)(cid:28)(cid:25)(cid:3)(cid:3)(cid:3)(cid:177)(cid:3)(cid:3)(cid:3)(cid:58)(cid:36)(cid:54)(cid:43)(cid:44)(cid:49)(cid:42)(cid:55)(cid:50)(cid:49)(cid:15)(cid:3)(cid:39)(cid:17)(cid:38)(cid:17)(cid:3)(cid:21)(cid:19)(cid:19)(cid:19)(cid:21)(cid:3)
`
`
`
`
`
`

`

`————
`SMITH & NEPHEW, INC., ET AL.,
`Petitioners,
`
`v.
`ARTHREX, INC., ET AL.,
`Respondents.
`
`————
`ARTHREX, INC.,
`Petitioner,
`
`v.
`SMITH & NEPHEW, INC., ET AL.,
`Respondents.
`
`————
`
`
`(cid:3)
`
`(cid:3)
`
`

`

`QUESTIONS PRESENTED
`1. Whether, for purposes of the Appointments Clause,
`U.S. Const. art. II, § 2, cl. 2, administrative patent judges
`of the U.S. Patent and Trademark Office are principal
`officers who must be appointed by the President with the
`Senate’s advice and consent, or “inferior Officers” whose
`appointment Congress has permissibly vested in a de-
`partment head.
`2. Whether, if administrative patent judges are prin-
`cipal officers, the court of appeals properly cured any
`Appointments Clause defect in the current statutory
`scheme prospectively by severing the application of 5
`U.S.C. § 7513(a) to those judges.
`
`(i)
`
`

`

`ii
` CORPORATE DISCLOSURE STATEMENT
`Pursuant to this Court’s Rule 29.6, Arthrex, Inc. states
`that it has no parent corporation and that no publicly
`held company owns 10% or more of its stock.
`
`
`
`
`

`

`TABLE OF CONTENTS
`
`Preliminary Statement ...............................................
`Statement ......................................................................
`I.(cid:3) Statutory Background ....................................
`A.(cid:3) Administrative Patent Judges ...............
`B.(cid:3) The America Invents Act ........................
`II.(cid:3) Proceedings Below ..........................................
`A.(cid:3) Arthrex’s ’907 Patent ...............................
`B.(cid:3) The Inter Partes Review .........................
`C.(cid:3) The Federal Circuit’s Decision ..............
`Summary of Argument ...............................................
`Argument ......................................................................
`I.(cid:3) Administrative Patent Judges Are
`Principal Officers .............................................
`A.(cid:3) The Appointments Clause’s
`Careful Structure Ensures
`Accountability for Executive
`Officers ......................................................
`B.(cid:3) Administrative Patent Judges Are
`Principal Officers Because Their
`Decisions Are Not Reviewable by
`Any Superior Executive Officer .............
`1.(cid:3) This Court’s Precedents
`Require Principal Officer
`Review of Decisions ..........................
`2.(cid:3) The AIA Departs Sharply
`from Tradition ...................................
`C.(cid:3) The Removal Restrictions
`Exacerbate the Appointments
`Clause Violation ........................................
`
`Page
`1
`3
`3
`3
`6
`8
`8
`9
`9
`13
`16
`
`16
`
`17
`
`19
`
`20
`
`27
`
`35
`
`(iii)
`
`

`

`iv
`TABLE OF CONTENTS—Continued
`
`Page
`
`1.(cid:3) APJs Are Removable Only
`Under a Restrictive
`For-Cause Standard .........................
`2.(cid:3) The Director’s Designation
`Authority Is No Substitute
`for Removal from Office ..................
`D.(cid:3) The Director’s Supervisory Powers
`Are No Substitute for Review ................
`1.(cid:3) The Director Lacks Authority
`To Manipulate the Outcomes
`of Specific Cases ................................
`2.(cid:3) Prospective Direction Is Not
`an Adequate Substitute
`for Review ..........................................
`II.(cid:3) The Court of Appeals Erred by Severing
`Administrative Patent Judges’ Tenure
`Protections .......................................................
`A.(cid:3) The Statute Is Unconstitutional
`Even Without Removal
`Restrictions ...............................................
`B.(cid:3) Congress Would Not Have
`Enacted the America Invents Act
`Without Tenure Protections for
`Administrative Patent Judges ...............
`1.(cid:3) Congress Has Long
`Considered Tenure Protections
`Essential for Officers
`Exercising Judicial Functions .........
`2.(cid:3) Tenure Protections Are
`Particularly Important
`Under the AIA ..................................
`
`36
`
`38
`
`39
`
`39
`
`42
`
`45
`
`45
`
`47
`
`48
`
`52
`
`

`

`v
`TABLE OF CONTENTS—Continued
`
`Page
`
`3.(cid:3) Eliminating Tenure
`Protections for APJs Defies
`Congressional Intent ........................
`C.(cid:3) Severance Is Especially
`Inappropriate Given the Many
`Ways Congress Could Remedy
`the Violation ..............................................
`D.(cid:3) Seila Law and Free Enterprise
`Fund Do Not Support Severance
`in This Case ...............................................
`E.(cid:3) Severance Violates Constitutional
`Avoidance Principles ...............................
`Conclusion .....................................................................
`Constitutional and Statutory Appendix ...................
`
`54
`
`56
`
`60
`
`62
`64
`1a
`
`

`

`vi
`TABLE OF AUTHORITIES
`
`Page(s)
`
`37
`
`41
`
`CASES
`Abrams v. Soc. Sec. Admin.,
`703 F.3d 538 (Fed. Cir. 2012) ...........................
`In re Alappat, 33 F.3d 1526
`(Fed. Cir. 1994) ...................................................
`Alaska Airlines, Inc. v. Brock,
`480 U.S. 678 (1987) .......................................... 47, 54
`Ass’n of Am. R.Rs. v. U.S. Dep’t of
`Transp., 821 F.3d 19 (D.C. Cir. 2016) .............
`Ayotte v. Planned Parenthood of
`N. New Eng., 546 U.S. 320 (2006) ................. 59, 63
`Ex parte Bakelite Corp.,
`279 U.S. 438 (1929) .............................................
`Barr v. Am. Ass’n of Pol. Consultants,
`Inc., 140 S. Ct. 2335 (2020) ............................. 45, 57
`Bowsher v. Synar, 478 U.S. 714 (1986) ...... 38, 47, 57
`Brown v. Dep’t of Navy, 229 F.3d 1356
`(Fed. Cir. 2000) ............................................. 6, 11, 36
`Butz v. Economou, 438 U.S. 478 (1978) ...............
`40
`Clarian Health W., LLC v. Hargan,
`878 F.3d 346 (D.C. Cir. 2017) ...........................
`Clark v. Martinez, 543 U.S. 371 (2005) ................
`Clinton v. Jones, 520 U.S. 681 (1997) ...................
`Collins v. Miller, 252 U.S. 364 (1920) ..................
`Cooper Techs. Co. v. Dudas,
`536 F.3d 1330 (Fed. Cir. 2008) .........................
`Cuozzo Speed Techs., LLC v. Lee,
`136 S. Ct. 2131 (2016) .........................................
`
`21
`
`34
`
`43
`62
`19
`27
`
`43
`
`43
`
`

`

`vii
`TABLE OF AUTHORITIES—Continued
`Page(s)
`
`62
`
`49
`
`Dep’t of Transp. v. Ass’n of Am. R.Rs.,
`575 U.S. 43 (2015) ......................................... passim
`Edmond v. United States,
`520 U.S. 651 (1997) ....................................... passim
`Edward J. DeBartolo Corp. v. Fla.
`Gulf Coast Bldg. & Constr. Trades
`Council, 485 U.S. 568 (1988) .............................
`Facebook, Inc. v. Windy City
`Innovations, LLC, 973 F.3d 1321
`(Fed. Cir. 2020) ................................................ 40, 43
`Free Enter. Fund v. Pub. Co. Acct.
`Oversight Bd., 561 U.S. 477 (2010) ............ passim
`Freytag v. Comm’r, 501 U.S. 868 (1991) ........ passim
`Humphrey’s Ex’r v. United States,
`295 U.S. 602 (1935) .............................................
`Intercollegiate Broad. Sys., Inc.
`v. Copyright Royalty Bd.,
`684 F.3d 1332 (D.C. Cir. 2012) .........................
`King v. Frazier, 77 F.3d 1361
`(Fed. Cir. 1996) ...................................................
`Kuretski v. Comm’r,
`755 F.3d 929 (D.C. Cir. 2014) ........................ 31, 34
`Lucia v. SEC, 138 S. Ct. 2044 (2018) ...... 12, 25, 26, 51
`Medtronic, Inc. v. Mirowski Fam.
`Ventures, LLC, 571 U.S. 191 (2014) ................
`59
`Morrison v. Olson, 487 U.S. 654 (1988) ............ 27, 39
`Murphy v. Nat’l Collegiate Athletic
`Ass’n, 138 S. Ct. 1461 (2018) .......................... 47, 54
`Myers v. United States, 272 U.S. 52 (1926) ..........
`49
`
`30
`
`37
`
`

`

`viii
`TABLE OF AUTHORITIES—Continued
`Page(s)
`
`35
`
`59
`
`NLRB v. Noel Canning,
`573 U.S. 513 (2014) .............................................
`N. Pipeline Constr. Co. v. Marathon
`Pipe Line Co., 458 U.S. 50 (1982) ....................
`New York v. United States,
`505 U.S. 144 (1992) .......................................... 35, 45
`Nguyen v. Dep’t of Homeland Sec.,
`737 F.3d 711 (Fed. Cir. 2013) ...........................
`Plaut v. Spendthrift Farm, Inc.,
`514 U.S. 211 (1995) .............................................
`Ramspeck v. Fed. Trial Exam’rs Conf.,
`345 U.S. 128 (1953) .......................................... 29, 50
`Randall v. Sorrell, 548 U.S. 230 (2006) ................
`56
`Ryder Truck Lines, Inc. v. United States,
`716 F.2d 1369 (11th Cir. 1983) ..........................
`SAS Inst. Inc. v. Iancu,
`138 S. Ct. 1348 (2018) ....................................... 7, 53
`In re Sealed Case, 829 F.2d 50
`(D.C. Cir. 1987) ................................................ 26, 31
`Seila Law LLC v. Consumer Fin. Prot.
`Bureau, 140 S. Ct. 2183 (2020) ................... passim
`Shoaf v. Dep’t of Agric., 260 F.3d 1336
`(Fed. Cir. 2001) ...................................................
`Tokyo Kikai Seisakusho, Ltd. v. United
`States, 529 F.3d 1352 (Fed. Cir. 2008) ............
`United States v. Allred,
`155 U.S. 591 (1895) .............................................
`United States v. Booker,
`543 U.S. 220 (2005) ............................. 45, 47, 54, 63
`
`41
`
`37
`
`25
`
`43
`
`38
`
`27
`
`

`

`40
`
`41
`
`51
`
`ix
`TABLE OF AUTHORITIES—Continued
`Page(s)
`
`40
`
`63
`49
`
`United States v. Giordano,
`416 U.S. 505 (1974) .............................................
`United States v. Nat’l Treasury Emps.
`Union, 513 U.S. 454 (1995) ............................ 59, 63
`United States ex rel. Accardi v.
`Shaughnessy, 347 U.S. 260 (1954) ...................
`Utica Packing Co. v. Block,
`781 F.2d 71 (6th Cir. 1986) ................................
`Ward v. Village of Monroeville,
`409 U.S. 57 (1972) ...............................................
`Wiener v. United States, 357 U.S. 349 (1958) .......
`Wong Yang Sung v. McGrath,
`339 U.S. 33 (1950) ...............................................
`CONSTITUTIONAL PROVISIONS
`18
`U.S. Const. art. II ...................................................
`18
`U.S. Const. art. II, § 1 .............................................
`U.S. Const. art. II, § 2 ....................................... passim
`U.S. Const. art. III ................................. 23, 31, 48, 54
`U.S. Const. art. III, § 1 ...........................................
`48
`STATUTES, REGULATIONS,
`AND RULES
`Patent Act:
`7
`35 U.S.C. § 3(a) ...................................................
`23
`35 U.S.C. § 3(a)(1) ...............................................
`35 U.S.C. § 3(a)(2)(A) ...................................... 40, 43
`35 U.S.C. § 3(b) ...................................................
`7
`35 U.S.C. § 3(b)(2)(C) .........................................
`37
`35 U.S.C. § 3(b)(6) ..............................................
`38
`35 U.S.C. § 3(c) .................................................. 6, 36
`
`

`

`x
`TABLE OF AUTHORITIES—Continued
`Page(s)
`35 U.S.C. § 6(a) ............................................. passim
`35 U.S.C. § 6(b) ............................................. 7, 33, 40
`35 U.S.C. § 6(b)(1) ..............................................
`7
`35 U.S.C. § 6(b)(2) ..............................................
`7
`35 U.S.C. § 6(b)(3) ..............................................
`7
`35 U.S.C. § 6(c) ........................................ 7, 23, 41, 54
`35 U.S.C. § 134 ....................................................
`5
`35 U.S.C. § 135 ....................................................
`7
`35 U.S.C. § 141 .................................................. 7, 54
`35 U.S.C. § 305 ....................................................
`6
`35 U.S.C. § 311 ....................................................
`7
`35 U.S.C. § 314(a) ...............................................
`7
`35 U.S.C. § 316(a) ......................................... 7, 43, 53
`35 U.S.C. § 318(a) ...............................................
`7
`35 U.S.C. § 318(b) ...............................................
`23
`35 U.S.C. § 319 .................................................. 7, 23
`Patent Act (2006):
`6
`35 U.S.C. § 314(a) (2006) ....................................
`31
`2 U.S.C. § 136-1(a) ...................................................
`30
`5 U.S.C. § 557(b) ......................................................
`38
`5 U.S.C. § 7512(4) ....................................................
`4
`5 U.S.C. § 7513 .........................................................
`5 U.S.C. § 7513(a) .............................................. passim
`5 U.S.C. § 7513(b) .................................................. 6, 37
`5 U.S.C. § 7513(c) .................................................. 6, 37
`5 U.S.C. § 7513(d) .................................................. 6, 37
`5 U.S.C. § 7521(a) ....................................................
`51
`5 U.S.C. § 7543(a) ....................................................
`37
`10 U.S.C. § 942(b)(1) ...............................................
`20
`
`

`

`xi
`TABLE OF AUTHORITIES—Continued
`Page(s)
`12 U.S.C. § 5491(c)(3) ..............................................
`36
`15 U.S.C. § 78d-1(c) .................................................
`26
`15 U.S.C. § 7217(c) ..................................................
`21
`17 U.S.C. § 701(a) ....................................................
`31
`17 U.S.C. § 802(f )(1)(D) ..........................................
`30
`26 U.S.C. § 7443A(c) ................................................
`26
`38 U.S.C. § 7251 .......................................................
`31
`38 U.S.C. § 7252(a) ..................................................
`31
`38 U.S.C. § 7253(b) ..................................................
`31
`38 U.S.C. § 7253(c) ..................................................
`31
`42 U.S.C. § 610(c) ....................................................
`32
`42 U.S.C. § 1316(e)(2)(B) ........................................
`32
`Act of Sept. 2, 1789, ch. 12, 1 Stat. 65 ...................
`27
`§ 1, 1 Stat. at 65 ...................................................
`27
`§ 5, 1 Stat. at 66 ...................................................
`27
`Act of Apr. 10, 1790, ch. 7, § 1,
`1 Stat. 109, 109 ....................................................
`Act of Mar. 3, 1795, ch. 48, 1 Stat. 441 .................
`§ 2, 1 Stat. at 441 .................................................
`§ 3, 1 Stat. at 441 .................................................
`§ 4, 1 Stat. at 442 .................................................
`Act of May 28, 1796, ch. 37, 1 Stat. 478 ................
`§ 3, 1 Stat. at 479 .................................................
`§ 8, 1 Stat. at 480 .................................................
`§ 9, 1 Stat. at 481 .................................................
`Act of Mar. 3, 1797, ch. 13, § 1,
`1 Stat. 506, 506 ....................................................
`Act of July 9, 1798, ch. 70, 1 Stat. 580 ..................
`§ 3, 1 Stat. at 584 .................................................
`
`32
`28
`28
`28
`28
`27
`27
`27
`27
`
`28
`28
`28
`
`

`

`28
`
`28
`
`28
`
`xii
`TABLE OF AUTHORITIES—Continued
`Page(s)
`§ 7, 1 Stat. at 584 .................................................
`28
`§ 22, 1 Stat. at 589 ...............................................
`28
`Act of Mar. 2, 1799, ch. 22, § 80,
`1 Stat. 627, 687 ....................................................
`Act of Jan. 9, 1808, ch. 8, § 6,
`2 Stat. 453, 454 ....................................................
`Act of Mar. 3, 1809, ch. 28, § 2,
`2 Stat. 535, 536 ....................................................
`Act of Mar. 3, 1817, ch. 110, § 5,
`28
`3 Stat. 397, 398 ....................................................
`Act of July 4, 1836, ch. 357, 5 Stat. 117 ........ 3, 32, 34
`§ 1, 5 Stat. at 117 ............................................... 3, 32
`§ 7, 5 Stat. at 119 .................................................
`34
`Act of Mar. 3, 1839, ch. 82, § 2,
`5 Stat. 339, 348 ....................................................
`Act of Mar. 3, 1839, ch. 88, § 11,
`5 Stat. 353, 354 ....................................................
`Act of Sept. 4, 1841, ch. 16, § 11,
`5 Stat. 453, 456 ....................................................
`Act of Aug. 23, 1842, ch. 185, § 2,
`5 Stat. 511, 511 ....................................................
`Act of Aug. 30, 1852, ch. 106, 10 Stat. 61 ..............
`§ 9, 10 Stat. at 67 .................................................
`§ 18, 10 Stat. at 70 ...............................................
`Act of June 12, 1858, ch. 154, § 10,
`11 Stat. 319, 326 ..................................................
`Act of Mar. 3, 1859, ch. 84, § 1,
`11 Stat. 435, 435 ..................................................
`Act of Mar. 2, 1861, ch. 88, § 2,
`12 Stat. 246, 246 ...................................... 3, 32, 35, 58
`
`28
`28
`28
`28
`
`28
`
`34
`
`28
`
`28
`
`28
`
`

`

`xiii
`TABLE OF AUTHORITIES—Continued
`Page(s)
`
`33
`
`Act of July 8, 1870, ch. 230, § 46,
`16 Stat. 198, 204 ..................................................
`Pub. L. No. 5, sec. 28, § 29,
`34
`36 Stat. 11, 105 (1909) ........................................
`4
`Pub. L. No. 16, § 1, 39 Stat. 8, 8 (1916) .................
`Pub. L. No. 690, 44 Stat. 1335 (1927) ........... 4, 32, 33
`§ 3, 44 Stat. at 1335 ........................................... 4, 33
`§ 8, 44 Stat. at 1336 ........................................... 4, 32
`Pub. L. No. 287, 53 Stat. 1212 (1939) ...................
`33
`§ 3, 53 Stat. at 1212 .............................................
`33
`§ 4, 53 Stat. at 1212 .............................................
`33
`Administrative Procedure Act, Pub. L.
`No. 79-404, 60 Stat. 237 (1946) ................... passim
`§ 8(a), 60 Stat. at 242 .....................................
`30
`§ 11, 60 Stat. at 244 ........................................
`51
`Pub. L. No. 82-593, 66 Stat. 792 (1952) ........ 4, 33, 45
`sec. 1, § 3, 66 Stat. at 792 ...................................
`33
`sec. 1, § 135, 66 Stat. at 801 ...............................
`4
`sec. 1, § 282, 66 Stat. at 812 ...............................
`4
`§ 3, 66 Stat. at 815 ............................................... 45
`Pub. L. No. 85-755, § 1, 72 Stat. 848,
`34
`848 (1958) .............................................................
`Pub. L. No. 93-601, 88 Stat. 1956 (1975) ...... 4, 33, 52
`sec. 1, § 3(a), 88 Stat. at 1956 .......................... 4, 33
`§ 2, 88 Stat. at 1956 ........................................... 4, 52
`Pub. L. No. 96-517, 94 Stat. 3015 (1980) ..............
`5
`§ 1, 94 Stat. at 3015 .............................................
`5
`sec. 1, § 306, 94 Stat. at 3016 .............................
`5
`Pub. L. No. 98-622, 98 Stat. 3383 (1984) ..............
`5
`§ 201, 98 Stat. at 3386 .........................................
`5
`
`

`

`5
`
`5
`
`5
`
`25
`
`xiv
`TABLE OF AUTHORITIES—Continued
`Page(s)
`§ 202, 98 Stat. at 3386 .........................................
`5
`Pub. L. No. 99-514, § 1556, 100 Stat. 2085,
`2754 (1986) ...........................................................
`Pub. L. No. 106-113, app. I,
`113 Stat. 1501A-521 (1999) .............................. 5, 33
`§ 4604(a), 113 Stat. at 1501A-567 .................
`5
`sec. 4604(a), § 315, 113 Stat.
`at 1501A-569 ..............................................
`sec. 4713, § 3(c), 113 Stat.
`at 1501A-577 ..............................................
`sec. 4717, § 6(a), 113 Stat.
`at 1501A-580 ............................................ 5, 33
`Pub. L. No. 110-313, § 1(a),
`122 Stat. 3014, 3014 (2008) ................................
`Leahy-Smith America Invents Act,
`Pub. L. No. 112-29, 125 Stat. 284 (2011) ..... passim
`§ 6(a), 125 Stat. at 299 ...................................
`6
`§ 6(d), 125 Stat. at 305 ...................................
`6
`§ 18, 125 Stat. at 329 ......................................
`6
`12 & 13 Will. 3, c. 2, § 3 (1701) ................................
`48
`17 C.F.R. § 201.155(a) .............................................
`26
`17 C.F.R. § 201.155(b) .............................................
`26
`17 C.F.R. § 201.360(d) .............................................
`26
`37 C.F.R. § 42.4(a) ...................................................
`7
`37 C.F.R. § 42.100(a) ............................................. 7, 53
`Tax Ct. R. 182(c) .....................................................
`26
`LEGISLATIVE MATERIALS
`Restoring America’s Leadership in
`Innovation Act of 2020, H.R. 7366,
`116th Cong. § 4 (June 25, 2020) ........................
`
`58
`
`

`

`xv
`TABLE OF AUTHORITIES—Continued
`Page(s)
`H.R. Doc. No. 76-986 (1940) ..................................
`29
`H.R. Rep. No. 100-963, pt. 1 (1988) ......................
`31
`H.R. Rep. No. 104-784 (1996) ........................ 5, 36, 53
`H.R. Rep. No. 112-98, pt. 1 (2011) ................ 6, 33, 53
`S. Rep. No. 79-752 (1945) .......................................
`51
`S. Rep. No. 93-1401 (1974) ................................... 4, 33
`S. Rep. No. 95-969 (1978) .......................................
`38
`1 Annals of Cong. 499 (June 17, 1789) ..................
`25
`1 Annals of Cong. 611-612 (June 29, 1789) ..........
`48
`1 Annals of Cong. 613 (June 29, 1789) ..................
`49
`1 Annals of Cong. 615 (June 30, 1789) ..................
`48
`157 Cong. Rec. 3375 (Mar. 7, 2011) .......................
`53
`157 Cong. Rec. 3428 (Mar. 8, 2011) .......................
`53
`157 Cong. Rec. 3433 (Mar. 8, 2011) .......................
`6
`157 Cong. Rec. 12,984 (Sept. 6, 2011) ................ 53, 54
`Administrative Procedure Act: Hearings on
`S. 1663 Before the Subcomm. on Admin.
`Prac. & Proc. of the S. Comm. on the
`Judiciary, 88th Cong. (July 23, 1964) .............
`Commerce, Justice, Science, and Related
`Agencies Appropriations for 2012:
`Hearings Before the Subcomm. on
`Com., Just., Sci. & Related Agencies
`of the H. Comm. on Appropriations,
`112th Cong. (Mar. 2, 2011) ................................
`
`29
`
`53
`
`

`

`xvi
`TABLE OF AUTHORITIES—Continued
`Page(s)
`
`50
`
`28
`
`55
`
`The Patent Trial and Appeal Board and
`the Appointments Clause: Hearing Before
`the Subcomm. on Cts., Intell. Prop. & the
`Internet of the H. Comm. on the
`Judiciary, 116th Cong. (Nov. 19, 2019) ..........
`EXECUTIVE AND ADMINISTRATIVE
`MATERIALS
`31
`38 Fed. Reg. 9906 (Apr. 20, 1973) .........................
`72 Fed. Reg. 73,708 (Dec. 28, 2007) ................... 31, 32
`83 Fed. Reg. 29,312 (June 22, 2018) .....................
`37
`84 Fed. Reg. 50 (Jan. 7, 2019) ...............................
`44
`85 Fed. Reg. 13,186 (Mar. 6, 2020) .......................
`31
`93 T.C. 821 (1989) ....................................................
`26
`The Constitutional Separation of Powers
`Between the President and Congress,
`20 Op. O.L.C. 124 (1996) ....................................
`Officers of the United States Within the
`Meaning of the Appointments Clause,
`31 Op. O.L.C. 73 (2007) ......................................
`Patent Trial & Appeal Board,
`Standard Operating Procedure 2
`(10th rev. Sept. 20, 2018) ...................................
`OTHER AUTHORITIES
`Apple Inc. v. Iancu, No. 20-cv-6128, Dkt. 65
`(N.D. Cal. filed Nov. 23, 2020) ..........................
`Michael Asimow, Admin. Conf. of the U.S.,
`Federal Administrative Adjudication
`Outside the Administrative Procedure
`Act (2019) .............................................................
`
`44
`
`44
`
`30
`
`

`

`xvii
`TABLE OF AUTHORITIES—Continued
`Page(s)
`
`64
`
`28
`
`64
`
`Attorney General’s Comm. on Admin. Proc.,
`Final Report (1941) ........................................ 29, 50
`Kent Barnett, Regulating Impartiality
`in Agency Adjudication,
`69 Duke L.J. 1695 (2020) ...................................
`Jack M. Beermann, Administrative
`Adjudication and Adjudicators,
`26 Geo. Mason L. Rev. 861 (2019) ................. 40, 64
`Harold M. Bowman, American
`Administrative Tribunals,
`21 Pol. Sci. Q. 609 (1906) ...................................
`Emily S. Bremer, Reckoning with
`Adjudication’s Exceptionalism Norm,
`69 Duke L.J. 1749 (2020) ...................................
`Steven G. Calabresi & Saikrishna B. Prakash,
`The President’s Power To Execute the
`Laws, 104 Yale L.J. 541 (1994) .........................
`Steven G. Calabresi & Christopher S. Yoo,
`The Unitary Executive: Presidential
`Power from Washington to Bush (2008) ........
`Ronald A. Cass, Agency Review of
`Administrative Law Judges’ Decisions,
`in Admin. Conf. of the U.S., Recommen-
`dations and Reports 115 (1983) .......................
`Kirti Datla & Richard L. Revesz,
`Deconstructing Independent Agencies
`(and Executive Agencies),
`98 Cornell L. Rev. 769 (2013) ...........................
`The Declaration of Independence (1776) ............
`John F. Duffy, Are Administrative
`Patent Judges Unconstitutional?,
`2007 Patently-O Patent L.J. 21 ........................
`
`61
`48
`
`22
`
`22
`
`30
`
`5
`
`

`

`xviii
`TABLE OF AUTHORITIES—Continued
`Page(s)
`
`41
`
`52
`
`Richard A. Epstein, The Supreme
`Court Tackles Patent Reform,
`19 Federalist Soc’y Rev. 124 (2018) .................
`The Federalist
`(Clinton Rossiter ed., 1961) ................ 17, 18, 19, 48
`No. 70 (Hamilton) ....................................... 18, 19
`No. 76 (Hamilton) ..........................................
`17
`No. 77 (Hamilton) ..........................................
`17
`No. 78 (Hamilton) ..........................................
`48
`No. 79 (Hamilton) ..........................................
`48
`Daniel J. Gifford, Federal Administrative
`Law Judges, 49 Admin. L. Rev. 1 (1997) ........
`John M. Golden, PTO Panel Stacking:
`Unblessed by the Federal Circuit
`and Likely Unlawful,
`104 Iowa L. Rev. 2447 (2019) ............................
`Elena Kagan, Presidential Administration,
`114 Harv. L. Rev. 2245 (2001) ....................... 52, 64
`Gary Lawson, Appointments and Illegal
`Adjudications: The America Invents
`Act Through a Constitutional Lens,
`26 Geo. Mason L. Rev. 26 (2018) ............ 22, 34, 46
`Jerry L. Mashaw, Recovering American
`Administrative Law: Federalist
`Foundations, 1787-1801,
`115 Yale L.J. 1256 (2006) ............................... 27, 28
`Patent Trial & Appeal Board,
`Trial Statistics (Sept. 2020) .............................
`The People Problem, Gov’t Exec., Jan. 21,
`2015, https://bit.ly/3fJT1XB .............................
`
`42
`
`8
`
`37
`
`

`

`xix
`TABLE OF AUTHORITIES—Continued
`Page(s)
`
`50
`
`26
`
`Pet. Br. in Edmond v. United States,
`No. 96-262 (Dec. 23, 1996) .................................
`President’s Comm. on Admin. Mgmt.,
`Administrative Management in the
`Government of the United States (1937) ........
`Neomi Rao, Removal: Necessary and
`Sufficient for Presidential Control,
`65 Ala. L. Rev. 1205 (2014) ..................... 50, 61, 64
`Elizabeth Rybicki, Cong. Rsch. Serv.,
`RL31980, Senate Consideration of
`Presidential Nominations (2017) ...................
`U.S. Patent & Trademark Office, FY 2020
`Performance and Accountability Report
`(Nov. 2020) ..........................................................
`Paul R. Verkuil, et al., The Federal
`Administrative Judiciary, in 2 Admin.
`Conf. of the U.S., Recommendations
`and Reports 777 (1992) ................................... 28, 52
`Christopher J. Walker & Melissa
`F. Wasserman, The New World
`of Agency Adjudication,
`107 Calif. L. Rev. 141 (2019) ....................... passim
`James Wilson, Lectures on Law,
`in 1 The Works of James Wilson
`(Bird Wilson ed., 1804) ................................... 17, 19
`
`58
`
`7
`
`

`

`IN THE
`Supreme Court of the United States
`————
`NO. 19-1434
`UNITED STATES OF AMERICA,
`Petitioner,
`
`v.
`ARTHREX, INC., ET AL.,
`Respondents.
`
`————
`NO. 19-1452
`SMITH & NEPHEW, INC., ET AL.,
`Petitioners,
`
`v.
`ARTHREX, INC., ET AL.,
`Respondents.
`
`————
`NO. 19-1458
`ARTHREX, INC.,
`Petitioner,
`
`v.
`SMITH & NEPHEW, INC., ET AL.,
`Respondents.
`
`————
`On Writ of Certiorari
` to the United States Court of Appeals
`for the Federal Circuit
`————
`BRIEF FOR ARTHREX, INC.
`————
`PRELIMINARY STATEMENT
`Under the America Invents Act, administrative patent
`judges (“APJs”) are the final word of the Executive
`Branch. No superior officer has authority to review their
`decisions. APJs thus do not merely decide disputes
`
`
`

`

`2
`worth billions of dollars. They speak for the Executive
`Branch and deliver that branch’s final decree. Neither
`Smith & Nephew nor the government cites a single case
`where this Court has ever held an administrative judge
`to be an inferior officer even though his decisions were
`totally unreviewable by any superior executive officer.
`While the court of appeals correctly found a constitu-
`tional violation, its remedy—eliminating APJs’ tenure
`protections—was both inadequate and contrary to statu-
`tory design. Even without tenure protections, APJs still
`have the final word for the Executive Branch. That power
`alone makes them principal officers. The court of appeals’
`remedy was thus insufficient to cure the violation.
`The court’s remedy also produced a regime that is
`foreign to agency adjudication. Congress has long con-
`sidered tenure protections essential to the impartiality
`and independence of administrative judges. Congress
`has provided for review of their decisions by presi-
`dentially appointed, Senate-confirmed agency heads—a
`transparent process in which agency heads must accept
`responsibility for their actions. But Congress has in-
`sisted on tenure protections to shield administrative
`judges from unseen political pressure and subtle influ-
`ence. Congress would not have created an administrative
`scheme for revoking valuable property rights that has
`neither an impartial adjudicator nor transparent review
`by an accountable agency head.
`The parties and amici have now proposed at least ten
`different options to address the constitutional defect.
`Selecting among them is precisely the sort of policy
`decision that Congress, not courts, should make.
`
`
`
`

`

`3
`STATEMENT
`I.(cid:3) STATUTORY BACKGROUND
`Under the Appointments Clause, the President “shall
`nominate, and by and with the Advice and Consent of the
`Senate, shall appoint * * * Officers of the United States.”
`U.S. Const. art. II, § 2. Congress, however, can “vest the
`Appointment of such inferior Officers, as they think
`proper, in the President alone, in the Courts of Law, or in
`the Heads of Departments.” Ibid. The Appointments
`Clause thus divides federal officers into two categories:
`“principal officers” who must be nominated by the Presi-
`dent and confirmed by t