Cuozzo Speed Technologies, LLC v. Lee

Background

An inventor, represented now by Cuozzo Speed Technologies, obtained a patent for a speed-limit indicator linked to GPS. Garmin filed a petition asking the Patent Office to begin inter partes review of several claims, arguing they were obvious in light of earlier patents. The Patent Trial and Appeal Board instituted review of claims 10, 14, and 17, found them unpatentable, and canceled those claims. Cuozzo appealed to the Federal Circuit, which affirmed, and the case reached the Court.

Reasoning

The Court addressed two main questions: whether a statutory provision saying the Director's decision to institute inter partes review is "final and nonappealable" prevents courts from reviewing that initial decision, and whether the agency may adopt a rule instructing it to construe patent claims by their "broadest reasonable construction." The Court held that the "no appeal" provision bars most judicial review of the agency's institution decision on statutory grounds, while leaving open constitutional claims. It also held that Congress’s grant of rulemaking power authorized the Patent Office to adopt the broadest-reasonable-construction standard and that deference to the agency was appropriate under ordinary administrative-law principles.

Real world impact

The practical result is that patent owners generally cannot stop an inter partes review in court at the institution stage; challenges to the agency's decision must usually be brought through an appeal from the agency's final written decision or under narrow constitutional or other exceptional claims. The Patent Office may continue to use the broadest-reasonable-construction standard in these reviews, which can make it easier for challengers to show claims are unpatentable. The Court affirmed the Federal Circuit's judgment.

Dissents or concurrances

Justice Thomas joined the judgment but urged rethinking Chevron deference; Justice Alito, joined by Justice Sotomayor in part, would have allowed courts to review whether the agency lawfully instituted review and warned about unchecked agency power.