Court of Appeal takes AIM at attempts to show knock-on effect of pragmatic case management

Supponor Ltd v AIM Sport Development AG [2024] EWCA Civ 396 In a judgment handed down on 23 April 2024, the Court of Appeal dismissed Supponor’s appeal against the decision of Meade J in the High Court finding AIM Sport’s European Patent (UK) 3 295 663 valid and infringed. Background The patent relates to electronic superimposition technology used in TV broadcasts, such as sporting events, whereby different advertising material from that seen at the venue can be transmitted to different territories. Claim 12 of the patent remained the only claim in issue at the first instance, covering a method of digitally overlaying an image with another image. AIM Sport proposed conditional amendments to claim 12 in the event the claim as granted did not hold up on its proposed construction. The proposed amendments to that claim narrowed the method to include further integers whereby the display device is configured to display a moving image in the real world and the camera is configured to receive the same. Supponor argued the proposed amendments were not allowable as they did not improve the position on construction, they lacked clarity, and added matter. Meade J held that claim 12 was valid and infringed in its unamended form, and additionally that the amendments to claim 12 were allowable had they been necessary. Construction On construction, Supponor argued that the claim as granted is limited to a light-on-dark overlaying method (thereby excluding a dark-on-light overlaying approach). The Court of Appeal agreed that claim 12 would not survive the prior art if it did not amend the claim on the basis that the prior art in effect covered what was in claim 12, being the detection of an occluding object by means of an image property (including brightness of the pixels in the image detected) of the occluding object.[1] Ultimately, however, the appeal was unanimously dismissed on the basis that claim 12 of the patent in its narrowed form following amendment would remain valid and infringed. As such, it did not matter that the Court of Appeal did not agree with Meade J on construction of the main claim.[2] Parallel litigation in Germany is pending appeal on the finding that EP 663 was not infringed (by Supponor’s older electronic superimposition technology), as well as an appeal pending in the UPC after it dismissed AIM Sport’s preliminary injunction application. Promptu and good case management practice for litigants In the UK litigation, certain case management points were made by the Court of Appeal. Supponor argued that because AIM Sport had made a prior admission that claim 1 of the patent was invalid, claim 12, which they said was effectively the same as claim 12, was also necessarily invalid. They supported their point citing Meade J’s decision in Promptu v Sky [2021] EWHC 2021 (Pat) at [118]-[124]. This was rejected by Meade J at [269] and the Court of Appeal on the basis that AIM Sport’s “pragmatic case management concession” on claim 1 (a product claim) did not have any knock-on effect on claim 12 (method claim). The Court of Appeal considered that even if the concession was to be interpreted as an admission of invalidity, claims 1 and 12 are not identical given the difference between product and method claims. Supponor’s own counsel submitted that it would be “extremely unjust to prevent AIM from relying on claim 12”, to which the Court of Appeal led by Birss LJ added that “such a conclusion would be extremely unjust but as I have also sought to show in answer to counsel's technical submission, such a technical approach is not right.”[3] At [271] of his judgment, with which the Court of Appeal agreed, Meade J said, “it would be unfortunate to discourage patentees in this sort of situation from making sensible admissions about claims other than the main ones for fear of an unforeseen consequence.”[4] In support of this sentiment, Males LJ added: “Litigants generally, and not just in patent litigation, should be encouraged to streamline the case proposed to be advanced at trial, so that the trial can focus on what really matters, rather than fighting every point to the death. If a pragmatic decision to abandon some points were to lead to arguments about the knock-on effect of that decision on the remaining points, litigants would be deterred from adopting a sensible approach and trials would take longer, which would be contrary to the interests of justice.”[5] Judgment can be found here. [1] [49]-[52] [2] [79]-[80] [3] [72]-[74] [4] [66] [5] [94]

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Blood drains from Bayer patent as it is found to be non-inventive

We previously reported on Bayer’s application seeking an interim injunction against a number of generics companies to protect its rivaroxaban product (link) ahead of the imminent judgment on validity of the patent EP (UK) 1 845 961 (the “EP 961”). That judgment has now been handed down, with the Judge finding the EP 961 invalid for lack of inventive step. Background By way of recap, the case revolves around rivaroxaban. It is used for the prevention or treatment of thromboembolic disorders. Bayer own two patents that cover rivaroxaban and so have had the rivaroxaban market to itself, selling the product under its brand name Xarelto. The compound patent expired on 1 April 2024. The EP 961, which in broad terms, covers the use of rivaroxaban for the manufacture of tablets for once-daily oral administration to a human patient, was due to expire in January 2026. Six separate invalidity actions were brought against Bayer by a number of generics for the EP 961. These were joined for trial where the Court assessed the validity of the EP 961. Issues The generics alleged that the EP 961 lacked inventive step over the cited prior art and that its specification was insufficient. The allegations of insufficiency were based on issues of plausibility. Inventive Step It was agreed that the Pozzoli test was the correct approach in assessing inventive step and that, on the present facts, the relevant criterion for obviousness was whether it was “obvious to try with a reasonable expectation of success.” Here, in particular, whether it was obvious to the skilled person to carry out phase II trials, which included once daily dosing based on the data from the phase I trials presented in the cited prior art. The court grappled with the public interest in producing new drugs that have been through the appropriate clinical testing against the ethical barrier and particularly risks to individuals involved in the clinical trials, including phase II trials. However, given that in the real world, the ethical question would be resolved by an ethics committee rather than the skilled team, the Court considered, for the present case, whether the skilled team would have thought that it was worth applying to the committee for permission to conduct a phase II trial which included a once-daily regimen with a reasonable expectation that the committee would give permission, and whether it was likely that permission would be given. On the evidence put before it, the Court found that the EP 961 lacked inventive step over the cited art: Harder (a research poster) and the Kubitza posters. All were materials created and published by researchers working with or for Bayer on the early stages of Bayer’s rivaroxaban project and cited data from phase I studies. In light of the data in Harder and the Kubitza posters, the skilled team would have hypothesised that the relevant molecule was suitable to be orally administered once daily. Additionally, the skilled team would have believed that conducting a phase II trial would not have caused an unacceptable level of risk. And thus, the skilled team would have found it obvious to conduct a phase II trial which included a once daily administration regimen. This was sufficient for the Court to reach a conclusion that the EP 961 lacked inventive step over Harder and the Kubitza posters. Insufficiency The generics were unsuccessful with their allegations of insufficiency. They had pleaded that the claims contained no limitation as to: 1) dose or 2) types of thromboembolic disorders. On dose, the Court found that the skilled team would have been able to carry out the claimed invention across the scope of the claims with the existing specification and the CGK. On the types of thromboembolic disorders, the EP 961 specification lists a long list of disorders. The majority of which were thromboembolic disorders with additional disorders being inflammatory diseases, microvascular diseases and Alzheimer’s disease. The Judge believed that the presence of the additional disorders would have been recognised as an obvious mistake by the skilled team. And as such, the skilled team would have ignored the mistake which would still allow them to construe the claims sufficiently. Judge’s Comments on the Experts The Judge made two comments on practice points in relation to the experts in this case. The first was that when an expert is too qualified relative to their corresponding person skilled in the art, as in this case, it is important that the expert identifies their own prior knowledge. The second was a reminder that when you have more than one expert providing evidence that interrelates, it is important that the experts consult each other’s respective evidence so that they may have a full appreciation of points being made and how this may impact their own evidence. The Judge likened this to how real-life experts would collaborate in pursuit of a project. The judgment is available here.

EIP Welcomes Eric Williams as new Managing Partner in the firm’s Denver office

Today marks a new stage in the development of EIP’s US presence as we announce Eric Williams as the new Managing Partner of our Denver office, succeeding Leigh Augustine. With nearly two decades of expertise as a Patent Attorney, Eric’s extensive background in a diverse array of technologies has been crucial in fortifying our clients’ patent protections and strategies. Eric focuses primarily on patent procurement, due diligence, opinion work, portfolio management and strategic client counselling. He has also assisted with US patent litigation matters including pre-suit assessments and handled US and European Patent Office (EPO) post-grant proceedings. This mixed experience exemplifies EIP’s unique blend of service offerings. Leigh Augustine will transition to an academic role at the University of Colorado Boulder. Leigh’s legacy includes a wealth of expertise in trademark law, and he will continue to have a close advisory relationship with EIP. Reflecting on his tenure, Leigh said, “Guiding the Denver office has been a privilege. I wish Eric the very best and know he will maintain and grow a collaborative spirit with the same respect to value and innovation that has always been EIP’s hallmark.” EIP remains a pioneering force in the sector as the first UK patent law firm with an established office in the US, reinforcing our commitment to advising our clients on high-value and complex patents in key patent markets. The US and UK offices are closely integrated and dedicated to providing a seamless service to our clients who have intellectual property interests on both sides of the Atlantic. Expressing his eagerness for the new role, Eric Williams said, “I'm excited to embrace this opportunity and build on Leigh's strong foundation. We’re a small but tight-knit team and we will continue to deliver the best strategic advice to our clients.” Magnus Hallin, CEO of EIP, expressed gratitude for Leigh's leadership, stating, “We will always be grateful to Leigh for being a strong anchor for the team and, after all, it’s not a real farewell as we will keep relying on his expertise. We are also very excited for Eric to step into this new role and to bring his experience and skill forward as our Denver office continues to thrive.” External press coverage: Patent Lawyer Magazine: EIP welcomes Eric Williams as new Managing Partner in the firm’s Denver office World IP Review: EIP puts experienced patent attorney in charge of Denver office Solicitors Journal: EIP welcomes new managing partner in Denver office

EIP secures victory for Datang over Samsung

The Munich Regional Court (docket number 21 O 16085/22) on April 12, 2024 pronounced a judgment finding that 4G-capable mobile devices offered by Samsung Electronics GmbH in Germany infringe the German part of the European Patent EP 2 237 607 of Plaintiff Datang Mobile Communications Equipment Co., Ltd. The patent covers cell handover procedures when a mobile phone enters a TDD radio cell. In the course of the proceedings, Samsung had inter alia raised a FRAND defence and additionally filed a competition law counter complaint; both of which failed: the Munich Regional Court found Samsung to be an unwilling licensee. Previously, the German Federal Patent Court had issued a positive preliminary opinion on the validity of the asserted patent claims. In addition to the German proceedings, there are also ongoing related proceedings in China and the US. The Chinese plaintiff Datang Mobile Communications Equipment Co., Ltd. is owned by CICT Mobile, and holds a significant portfolio of SEPs in the 4G and 5G space, being regularly listed among the top 10 SEP holders by several publications. The first instance judgment, which can be appealed, includes an injunction claim and can be provisionally enforced against the posting of a bond. The EIP team, led by Dr Christof Höhne, Dr Sebastian Fuchs, Dimitri Kosenko, and Maximilian Häger, alongside df-mp’s Dr Dominik Ho and Nikola Wiesemann, was instrumental in securing this win. External coverage Datang wins against Samsung in 4G SEP infringement dispute, Juve.

EIP celebrates a win at Managing IP's EMEA Awards 2024

EIP has been recognised at last night's Managing IP EMEA Awards 2024 as European Patent Disputes Firm of the Year for Patent & Trademark Attorney Firms. The award marks a continued recognition of EIP’s consistent strength in European litigation as it's the third year in a row that EIP has won in this category. Magnus Hallin, CEO at EIP said: "We are proud to be recognised once again at the Managing IP EMEA Awards. The award is a testament to our team’s unwavering commitment to excellence and our innovative approach to IP litigation. It is not just a reflection of our expertise, but also of the trust our clients place in us to protect their most valuable assets. We are grateful for this honour and it motivates us to continue setting the bar high in the industry.”

To Injunct Or Not To Injunct?

Judge Asked To Grant A 9/10 Day Interim Injunction to Protect Bayer’s Anticoagulant Rivaroxaban Ahead of Main Judgment Pharmaceutical company, Bayer found success in its application seeking an interim injunction, lasting just 9-10 days, to protect its rivaroxaban product from the generic companies it is currently embroiled in litigation with whilst awaiting judgment on its patent covering rivaroxaban. Background This case revolves around rivaroxaban. Rivaroxaban is one of several direct oral anticoagulants available for prescription. Bayer own two patents that cover rivaroxaban. The first patent protects rivaroxaban as a compound. That patent was extended by an SPC until 1 April 2024. Up until 1 April 2024, Bayer have had the rivaroxaban market to itself, selling the product under its brand name Xarelto. Therefore, as of 2 April 2024 others would be entitled to market rivaroxaban. The second patent, EP(UK) 1 845 961 (“EP 961”), in broad terms, covers the use of rivaroxaban for the manufacture of tablets for once-daily oral administration to a human patient. EP 961 expires in January 2026. EP 961 has been subject to six actions for revocation which were joined, with the trial heard earlier this year. At trial, the Judge told the parties that judgment would be handed down in the first week of the Easter term, and in all likelihood probably on 9 April 2024, with the form of order hearing to be on the 11 or 12 April 2024. This meant that a window of 9-10 days arose whereby the compound patent would have expired but there was a possibility of a permanent injunction against the respondents restraining sales of once-daily rivaroxaban in the event that EP 961 was held valid. Bayer’s application before the Judge was to ensure that this window was kept shut until judgment on the EP 961. The Applications Before the Court The court had four applications before it. This article focuses on Bayer’s aforementioned application seeking an interim injunction against parties it is in litigation over the rivaroxaban product. Communication with the Court The Judge was critical about the parties’ communication with the court in relaying the consequence of not handing down his judgment until 9-10 days after 1 April 2024. The Judge recounted that the various claims filed with the court and eventually joined were progressed “without unusual haste”. On the first day of trial, the claimants’ counsel had stated that the claims had been case managed together so as to try to ensure that judgment could be handed down before 1 April 2024 but the Judge did not recall any information being provided about the consequence of not achieving that. Therefore, he was surprised at the scale of the interim application including the number of counsel and solicitors involved. The Judge wondered whether the deep involvement of the legal advisers meant that they had assumed everyone was clear on the significance of judgment not being handed down in time for argument on the form of order by 1 April. The Judge made it clear that he was not aware of said consequence and that had the parties communicated the issue to the Judge, the court would be in a better position to give the matter appropriate priority. He surmised that “in short, better communication with the court is desirable.” Bayer’s Interim Injunction Application The Court applied the well-known American Cyanamid principles when looking to assess the suitability of granting or rejecting Bayer’s application for an interim injunction. The parties agreed that there was a serious question to be tried which had been a question before the Court at trial and would be answered with an imminent judgment. In this case of the interim injunction, the issue between the parties concerned the balance of irreparable harm. Additionally, the Judge used the Court of Appeal’s judgment in Neurim Pharmaceuticals (1991) Limited v Generics (UK) Limited [2022] EWCA Civ 370 for guidance as to the correct approach given that there was some overlap in the facts. Decision Due to the short time that this interim injunction would be in place, the Judge was not completely convinced that both parties would suffer irreparable harm. The Judge felt that Bayer’s lost sales could be calculated easily given that their current sales were known and that they were the only ones on the market with rivaroxaban. And although there may be uncertainties that may not be quantifiable, the Judge hypothesised that these would be modest. With the respondents, the Judge was also convinced that their loss of sales could be calculated with an area under the curve calculation. The Judge suggested that a graph of each of the respondents’ sales could be notionally moved back by 9-10 days or by whichever time that the evidence may suggest is appropriate. But looking at the Court of Appeal and its emphasis on the importance of maintaining the status quo in circumstances such as those in the application before him, the Judge believed it more appropriate to grant the interim injunction until resolution of the order to be made following the imminent hand down of the judgment on the EP 961. Take Away Points A key point arising from this judgment is that communication with the Court is of upmost importance. Not only can it avoid potential wasted costs but it can also bring to the forefront any urgent issues that need addressing or that may have consequences if matters are not concluded within a certain timespan. It is easy to forget that the Court has not lived through the case and so cannot be assumed to appreciate matters which the parties have at the forefront of their minds. The judgment is available here.

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