Federal Circuit Clarifies Scope of Obviousness-type Double Patenting in Allergan Usa V. Msn Laboratories

On August 13, 2024, the U.S. Court of Appeals for the Federal Circuit issued a welcomed decision to patentees in Allergan USA, Inc. v. MSN Laboratories Private Ltd., No. 24-1061 (Fed. Cir. 2024) clarifying the scope of obviousness-type double patenting (ODP) in the aftermath of its In re Cellect, LLC, 81 F.4th 1216 (Fed. Cir. 2023)decision last year.

In a potentially significant win for patentees, the Federal Circuit in Allergan held that "a first-filed, first-issued, later-expiring claim cannot be invalidated by a later-filed, later-issued, earlier-expiring reference claim having a common priority date."

This represented a reversal of the district court's determination that claim 40 of the '356 patent at issue was invalid under the doctrine of ODP over claim 33 of the '011 patent and claim 5 of the '709 patent. The relationship among these patents is depicted in the following figure from the decision. The first filed '356 patent has a longer patent term due to grant of patent term adjustment (PTA) due to delays caused by the U.S. Patent and Trademark Office (USPTO) during prosecution.

The district court considered the "first-filed, first-issued" distinction of the '356 patent at issue to be "immaterial" and, instead, focused only on the patent expiration dates for its ODP analysis based on its reading of In re Cellect, which held that "ODP for a patent that has received PTA, regardless [of] whether or not a terminal disclaimer is required or has been filed, must be based on the expiration date of the patent after PTA has been added."

The Federal Circuit, however, noted that the district court's reading of In re Cellect was incorrect since the holding of In re Cellect "answered a different question than that at issue here." The Federal Circuit explained that "[In re] Cellect does not address, let alone resolve, any variation of the question presented here-namely, under what circumstances can a claim properly serve as an ODP reference-and therefore has little to say on the precise issue before us." Rather, the Federal Circuit noted that its holding in In re Cellect "is only controlling in this case to the extent that it requires us to consider, in our ODP analysis, the '356 patent's June 24, 2026 expiration date (i.e., the expiration date after the addition of PTA), not the March 24, 2025 expiration date that it would have shared with the '011 and '709 reference patents in the absence of a PTA award." The Federal Circuit further explained that its holding "is the only conclusion consistent with the purpose of the ODP doctrine, which is to prevent patentees from obtaining a second patent on a patentably indistinct invention to effectively extend the life of a first patent to that subject matter."

The Federal Circuit clarified that "the fact that the '356 patent expires later is of no consequence here because it is not a 'second, later expiring patent for the same invention" and that "[a]s the first-filed, first-issued patent in its family, [the '356 patent] is the patent that sets the maximum period of exclusivity for the claimed subject matter and any patentably indistinct variants."

This decision clarifies the scope of the doctrine of ODP following last year's In re Cellect decision by establishing that the filing and issuance dates of a patent are relevant to an ODP analysis. This decision also clarifies that applicants are entitled to PTA caused by delays of the USPTO during prosecution of a first-filed patent application, no matter when the first patent issues or how long the PTA extends the life of the patent. This decision is important because, as recognized by the Federal Circuit, a first-filed application often requires "greater time and effort by the applicant and examiner alike" and, thus, is often awarded PTA; whereas, a later-filed continuing application "proceeds much more efficiently through prosecution" and, thus, is more likely to receive little or no award of PTA. Accordingly, this decision removes the risk of invalidation by ODP over a later-filed, later-issued, earlier-expiring reference claim having a common priority date.