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U.S. Patentable Subject Matters3.amazonaws.com/JuJaMa.UserContent/041ac208-774f-4d7f-bc17 … · • Diagnostic methods … it depends. The current test for patentability was set

Aug 17, 2020

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Page 1: U.S. Patentable Subject Matters3.amazonaws.com/JuJaMa.UserContent/041ac208-774f-4d7f-bc17 … · • Diagnostic methods … it depends. The current test for patentability was set
Page 2: U.S. Patentable Subject Matters3.amazonaws.com/JuJaMa.UserContent/041ac208-774f-4d7f-bc17 … · • Diagnostic methods … it depends. The current test for patentability was set

U.S. Patentable

Subject Matter Martin Pannall

Partner

Madderns

[email protected]

Brett Lunn

Managing Partner

FB Rice

[email protected]

Derek Minihane

Head of Sound Processors Development

and IP Strategy, Program Manager R&T

Cochlear, Ltd.

[email protected]

Robert Kramer

Special Counsel

Finnegan Henderson Farabow Garrett & Dunner

LLP

[email protected]

* All views expressed are those

of the individual speaker.

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OVERVIEW

I. What is patentable in the U.S.

II. Current legal landscape

III. Europe and Australia

IV. Corporate IP, R&D, investment and licensing issues

V. Patentability of emerging technologies

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I. What is Patentable in the U.S.

35 U.S.C. § 101 (legislative)

Whoever invents or discovers any new and useful

process, machine, manufacture, or composition of matter,

or any new and useful improvement thereof, may obtain a patent

therefor, subject to the conditions and requirements of this title.

“Part of the storehouse of knowledge of

all men … free to all men and reserved

exclusively to no one.” – Biliski

“[T]he concern ... patent law not inhibit

further discovery by improperly tying up

the future use of these building blocks

of human ingenuity.” - Alice

Judicial exceptions:

• laws of nature

• physical phenomena

• abstract ideas

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§101

§102

§103

§112

35 USC §102 (anticipation) - NOVELTY

35 USC §103 (obviousness) - NONOBVIOUSNESS

35 USC §112 (enablement) - WRITTEN DESCRIPTION - particularly point out

and distinctly claim the

subject matter of the invention

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In the U.S. • Medical devices are patentable.

• Methods of surgery and medical treatment are patentable.

However, they cannot be asserted against doctors

or the medical facilities where they are associated.

• Diagnostic methods … it depends.

The current test for patentability was set forth in Mayo (2012):

1. determine whether the claim is directed to a judicial exception

to patentability; if so

2. determine whether any element or combination of elements

is sufficient to ensure the claim amounts to

something more than a judicial exception.

law of nature

physical

phenomena

abstract idea

Australia

x Europe

x Canada

x South Korea

x Japan

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II. Current Legal Landscape

Mayo Collaborative

Svcs. v.

Prometheus Labs

Supreme

Court

2012

Ineligible

Two prong Mayo test:

1. Determine whether the claim is directed to a judicial exception to patentability.

2. If it is, determine whether any element or combination of elements is sufficient

to ensure the claim amounts to something more than a judicial exception.

‘623 patent, claim 1:

A method of optimizing therapeutic efficacy for treatment of an

immune-mediated gastrointestinal disorder, comprising:

(a) administering a drug providing 6-thioguanine to a subject

having said immune-mediated gastrointestinal disorder; and

(b) determining the level of 6-thioguanine in said subject

having said immune-mediated gastrointestinal disorder,

wherein the level of 6-thioguanine less than about 230 pmol

per 8×108 red blood cells indicates a need to increase the

amount of said drug subsequently administered to said

subject and

wherein the level of 6-thioguanine greater than about 400 pmol

per 8×108 red blood cells indicates a need to decrease the

amount of said drug subsequently administered to said

subject.

Technical problem: drugs for treatment of certain diseases

like Crohn’s are metabolized differently by different people,

making it hard for doctors to determine the proper dose.

Solution: Through research the patentee was able to identify

the effective range for the concentration of the drug after it

had been metabolized, then adjust dosage.

The patent claim: a method for optimizing the quantity of the

drug by: (1) administering the drug, (2) testing the blood for

the metabolite concentration, (3) increasing or decreasing

the dosage based on particular results.

Prior law and thinking in the industry: a law of nature was

patentable as long as the patent also claimed a “machine or

transformation.” Here the Federal Circuit upheld patent

validity because the patent claimed two transformations:

(1) transforming the human body by administering the drug,

and (2) transforming the blood by analyzing it to determine

metabolite levels.

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Mayo v. Prometheus (cont’d)

The Supreme Court:

Step 1: the patent simply describes a law of nature.

Step 2: Here the added elements are steps doctors were already doing:

• administering the a drug to a patient (well known)

• determining the resulting metabolite level (well known)

• to be sufficiently transformative (“machine or transformation” test), the patent must claim more

than a well-understood, purely conventional, routine or obvious activity (“pre-solution” or “post-solution”).

[MOT test does not trump the exceptions to patentability.]

In dicta, the Supreme Court:

acknowledges competing industry fears specifically in the field of diagnostic methods that its holding:

(1) reduces the protection for and thus investment in new and valuable diagnostic methods, and

(2) reduces patent thickets that prevented doctors from using “critical scientific data” to provide sound medical

care.

explained that the patent laws balance competing needs across “many different fields of human endeavor,”

that it “hesitate[s] before departing from established general legal rules” to protect … one field [that may risk]

unforeseen results in another,” and it “recognize[s] the role of Congress in crafting more finely tailored rules

where necessary.”

“We need not determine here whether, from a policy perspective, increased protectionfor discoveries of

diagnostic laws of nature is desirable.”

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Fallout from Mayo v. Prometheus (2012) (1)

Case Court Description

Association for

Molecular

Pathology v.

Myriad Genetics

Supreme Court

2013 Ineligible

(mixed)

Applies Mayo test to the products of nature exception. Held a naturally occurring DNA segment

is a product of nature and not patent eligible merely because it has been isolated. gDNA is not

patent eligible because the genetic information encoded in BRCA1 and BRCA2 genes were not

created or altered.

cDNA is patent eligible because it is not naturally occurring.

Claims directed to screening methods comparing cancer growth rates to a control group while

itself not patentable (mental step), becomes eligible because the host cells are man-made (by

removal of noncoding regions).

Intema v.

PerkinElmer

Supreme Court

denied certiorari

2013 Ineligible

Ultrasound and biomarkers. It is no longer sufficient under the machine or transformation test

that a claim element adding measuring an ultrasound or assaying blood overcomes the

exception to patentability (here the mental step is measuring two data points being better than

one).

Alice Corp. Pty.

Ltd. v. CLS Bank

Supreme Court

2014 Ineligible

Applies Mayo test to abstract ideas exception to hold unpatentable claims directed to using a

computer to mitigate settlement risk in escrow. Adding a computer (“wholly generic computer

implementation”) to the process no longer makes it patentable. (software and business method

patent)

Univ. of Utah

Research Found.

[Myriad] v Ambry

Genetics

Federal Circuit

2014 Ineligible

In re BRCA1- & BRCA2-Based Hereditary Cancer Test -- breast and ovarian cancer

susceptibility gene. Altered genes (synthetic) are “structurally identical to the ends of DNA

strands found in nature” are not patentable. Patent also claims a method for comparing patient

gene sequences with known sequences to identify alterations to identify differences, held to be

abstract under Step 1 of Alice. Combining non-patent-eligible elements in a claim with a

comparison step is generally patent ineligible

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Fallout from Mayo v. Prometheus (2)

Case Court Description

Accenture Global

Services v. Guidewire

Software

Federal Circuit

2013 Ineligible

Component based interface to handle tasks during claim processing

SmartGene v Advanced

Biological Labs. Federal Circuit

2014 Ineligible

Systems, methods and computer program products for guiding the selection of therapeutic

treatment regimens

Cyberfone Systems v.

CNN Interactive Group Federal Circuit

2014 Ineligible Telephone/transaction entry device and system for entering transaction data into database

In re Roslin Institute

(Edinburgh) Federal Circuit

2014 Ineligible Cloned mammals produced by somatic cell nuclear transfer

Digitech Image Techs. v

Electronics for Imaging Federal Circuit

2014 Ineligible Device profiles for use in a digital image processing system

Planet Bingo v VKGS Federal Circuit

2014 Ineligible Storing preselected numbers for use in games of bingo

buySAFE v. Google Federal Circuit

2014 Ineligible Safe Transaction Guaranty

DDR Holdings v.

Hotels.com Federal Circuit

2014 Eligible Expanding commercial opportunities for internet websites.

“A problem specifically arising in the realm

of computer technology where the solution

claimed directs how to manipulate the

computer technology to overcome the

problem.”

“[M]erely recit[ing] the performance of some

business practice known from the pre-

Internet world along with the requirement to

perform it on the Internet.”

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Fallout from Mayo v. Prometheus (3)

Case Court Description

Ultramercial v. Hulu Federal Circuit

2014 Ineligible

Payment of intellectual property royalties by interposed sponsor over a telecommunications

network

Fuzzysharp Techs v.

Intel

Federal Circuit

2015 Ineligible

Rule 36 - Visibility Calculations for 3D Computer Graphics

Gametek v. Zynga Federal Circuit

2015 Ineligible Rule 36 - Obtaining advantages and transacting the same in a computer gaming environment

Dietgoal Innovations v.

Bravo Media

Federal Circuit

2015 Ineligible Rule 36 - Computerized meal planning

Freddie Mac v.

Graff/Ross Holdings

Federal Circuit

2015 Ineligible Rule 36 - Securitizing property into separately valued components

Internet Patents Corp. v.

Active Network

Federal Circuit

2015 Ineligible Dynamic tabs for a graphical user interface

In re Webb

Federal Circuit

2015 Ineligible Rule 36 - Poker games with varying position advantage

In re Karpf Federal Circuit

2015 Ineligible Rule 36 - Converting a portion of future retirement payments to current benefits

Retirement Capital

Access Mgmt. v. U.S.

Bancorp

Federal Circuit

2015 Ineligible Rule 36 - Integrated bank accounts for home ownership (mortgage) payoffs

CMG Financial Svcs v.

Pacific Trust Bank Federal Circuit

2015 Ineligible Rule 36 - Determining a nutritional diet product for a canine or feline animal

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Fallout from Mayo v. Prometheus (4)

Joao Bock Transaction

Sys v. J. Henry &

Assoc.

Federal Circuit

2016 Ineligible

Rule 36 - Apparatus for securing banking transactions or wireless or cellular communication

devices

Morales v. Square, Inc. Federal Circuit

2016 Ineligible Rule 36 - Interactive TV system for mass media distribution

Allvoice Devs. v.

Microsoft

Federal Circuit

2015 Ineligible Speech recognition and automatic dictation

OIP Technologies v.

Amazon.com

Federal Circuit

2015 Ineligible Automatic pricing in electronic commerce

Intellectual Ventures I v.

Capital One Bank

Federal Circuit

2015 Ineligible

Administration of financial accounts, and advanced internet interface providing user display

access of customized webpages

Versata Development

Group v. SAP America

Federal Circuit

2015 Ineligible Increasing patient compliance with medical care instructions

Vehicle Intelligence and

Safety v. Mercedes-

Benz

Federal Circuit

2015 Ineligible

Screen equipment operators for impairment, selectively testing operators, and control

equipment if an impairment is detected

Mortgage Grader v. First

Choice Loan Servs Federal Circuit

2016 Ineligible Anonymous shopping of loans from different lenders.

In re Smith Federal Circuit

2016 Ineligible

Method of conducting a wagering game with conventional shuffling and dealing steps using a

standard deck of cards (variation of Black Jack).

Genetic Techs. Ltd. V.

Merial LLC Federal Circuit

8 April 2016

Ineligible

Genetic diagnostic method of detecting a coding region allele by amplifying genomic DNA and

analyzing it. “Detecting an allele” was held to be a mental process step of restating a newly

discovered natural law – the existence of linkage disequilibrium (“like Einstein telling linear

accelerator operators about his basic law and then trusting them to use it where relevant”).

The mental comparison was not possible in 1992 when claimed, until this method was

developed.

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Prior art: invasive prenatal procedure for detecting certain birth defects; risky to the fetus

Discovery: paternally-inherited cell-free fetal DNA (cffDNA) is detectable in the plasma

of pregnant women in what was previously considered medical waste.

Claims: The claims are broad and directed to any method of detecting paternally inherited

cffDNA from maternal serum or plasma by amplifying and detecting the cffDNA.

Claim 1: A method for detecting a paternally inherited nucleic acid of fetal origin performed on a maternal serum or plasma sample

from a pregnant female, which method comprises amplifying a paternally inherited nucleic acid from the serum or

plasma sample and detecting the presence of a paternally inherited nucleic acid of fetal origin in the sample.

• Largely undisputed that the method was novel (§ 102), a breakthrough, and “truly meritorious.”

• There is some disagreement about whether the claims are too broad or indefinite.

Fallout from Mayo v. Prometheus (5): Ariosa v. Sequenom

Ariosa Diagnostics,

Inc. v Sequenom Federal Circuit

2015 Ineligible

A non-invasive prenatal diagnostic method for

detecting certain birth defects.

* Advice given here post Mayo in 2013 was that diagnostics methods are likely still patentable.

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Applying Mayo the Federal Circuit held:

(1) claimed method starts with cffDNA a naturally occurring substance (phenomenon)

and ends with detecting a naturally occurring substance;

(2) other steps are merely amplifying (by PCR) or detecting (by probe). They are well understood, conventional

and routine, and cannot transform (MOT test) the natural phenomenon into a patentable invention.

The Federal Circuit made it clear that it believed this outcome was wrong, but required by Mayo.

Judge Newman dissented:

• In Mayo, both the medicinal product and its metabolites were previously known, leaving sparse room

for innovative advance in using this information as a diagnostic dosage tool.

• The Supreme Court nevertheless “recognized … that patent eligibility is not disabled when science is

put to practical use, stating that ‘a new way of using an existing drug’ is patent-eligible under Section 101.”

• In Myriad, the Supreme Court limited its holding to “genes and the information they encode are not

patent eligible … simply because they have been isolated from the surrounding genetic material.”

• Ariosa is distinguishable because the diagnostic method claimed was not known previously,

nor were the “diagnostic knowledge and benefit implemented by the method.”

Fallout from Mayo v. Prometheus (5): Ariosa v. Sequenom

Ariosa Diagnostics,

Inc. v Sequenom Federal Circuit

2015 Ineligible

A non-invasive prenatal diagnostic method for detecting certain birth

defects.

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Seen as an opportunity to encourage the Supreme Court to limit Mayo, provide further guidance, or identify principles

that might protect meritorious discoveries / inventions in the area of diagnostics.

Some worry that Judge Newman’s dissent will discourage the Supreme Court granting certiorari.

Sequenom petitioned the U.S. Supreme Court in March for a writ of certiorari. The question presented:

Whether a novel method is patent-eligible where:

1. a researcher is the first to discover a natural phenomenon;

2. that unique knowledge motivates him to apply a new combination of known techniques to that discovery;

and

3. he thereby achieves a previously impossible result without preempting other uses of the discovery?

22 Amicus briefs filed so far:

• Federal Circuit Bar Ass’n: must consider the claim as a whole.

• Eli Lilly, Pfizer, Upsher-Smith and Eisai

Exceptions to § 101 are no longer needed and should be reconsidered. When § 101 is considered before other

sections (§§ 102, 103, 112), it is stretched to address issues more appropriately raised in those other sections.

• David Kappos (director of the USPTO (2009-2013)) calls for abolition of § 101.

"We're dealing with a litmus test, an 'I know it when it see it' test," "we're now seeing real chaos”

from the need for thousands of examiners and hundreds of judges trying to apply the standard(s).

Timing: respondent brief due 20 May (+7 days amicus); docketing; 3-12 weeks for cert. decision (<1%; 4 justices);

briefing (45/30/30 days), hearing (Oct. – April), decision (median 83 days after hearing).

Ariosa v. Sequenom (con’t): Supreme Court

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Warnings

Not technology based rejections. This is about how the claims

and specification are drafted.

Many of these claims were drafted before cases like Mayo,

Myriad and Ariosa. (broad vs narrow; specificity; preemption)

A carefully drafted patent balances between legal, technical and

commercial needs, including considerations of patentability,

novelty, obviousness and written description. These cases

changed the standards against which the claims and

specification are judged.

There is no reason to believe that the tests / standards are now

final, or for example, that Judge Newman won’t be proven right.

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“Given the evolving state of the law, the § 101 analysis should be, and is, a difficult exercise. At their

broadest, the various decisions of the Federal Circuit would likely ring the death-knell for patent protection of

computer-implemented inventions, a result not clearly mandated (at least not yet). On the other hand, to

recognize and articulate the requisite degree of specificity - either in the equipment used or the steps claimed

- that transforms an abstract idea into patent-eligible subject matter is a challenging task. In trying to sort

through the various iterations of the § 101 standard, the court looks to DDR as a benchmark; i.e., the claims

(informed by the specification) must describe a problem and solution rooted in computer technology, and the

solution must be (1) specific enough to preclude the risk of pre-emption, and (2) innovative enough to

"override the routine and conventional” use of the computer.”

In denying Cisco’s motion for summary judgment of invalidity under § 101, the district court denies Cisco’s

attempt to simplify the invention to a pre-computer human counterpart. This does not “make the concept

abstract, as ‘[a]t some level, ‘all inventions … embody, use, reflect, rest upon, or apply laws of nature, natural

phenomena, or abstract ideas.’” Here “[t]he claims as an ordered combination (in light of the specification)

sufficiently delineate ‘how’ the method is performed to ‘improve the functioning of the computer itself,’ thereby

providing an inventive concept. The same specificity suffices to negate the ‘risk [of] disproportionately tying

up the use of the underlying ideas.’” (Quoting Alice and Mayo.)

From DDR Holdings: “A problem specifically arising in the realm of computer technology where the solution

claimed directs how to manipulate the computer technology to overcome the problem.”

SRI Int’l v. Cisco

Systems

D. Delaware

(Robinson)

11 April 2016

Eligible

Monitoring and surveillance of computer networks for intrusion detection.

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BMS’s claims are not directed to BMS’s particular composition (in which case Merck presumably would not infringe),

but more broadly to a method of treating cancer. Merck’s product is Pembrolizumab, a “biologic” that has larger, less well

defined molecules than a traditional pharmaceutical.

Claim 1:

A method of treating a metastatic melanoma comprising intravenously administering an effective amount of a

composition comprising a human or humanized anti-PD-1monoclonal antibody and a solubilizer in a solution to a

human with the metastatic melanoma, wherein the administration of the composition treats the metastatic melanoma

in the human.

Court: Step 1: the activation of the body’s suppressed immune system by enabling T cells is a natural phenomenon.”

Step 2: “administering a drug” is the only other step, similar to Mayo. But it is “a complicated factual

determination that the court could better resolve after discovery.

Watch this progress as Ariosa sits at the Supreme Court.

Bristol Myers Squibb

Co. v. Merck & Co.

D. Delaware

(Sleet)

17 March 2016

29 March 2016

Denied motions to

dismiss

Methods of treating cancer by administering anti-PD-1 antibodies that enable T

cells to activate the body’s natural immune system (suppressed by the cancer)

and remove cancer cells.

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Case Court / Date Description Historical Event

Mackay Radio

Supreme Court

1939 Eligible

“While a scientific truth, or the mathematical expression of it,

is not patentable invention, a novel and useful structure

created with the aid of knowledge of scientific truth may be.”

1952 Patent Act

1953 – DNA double helix model

1968 USPTO Guidelines suggest that

computer software can be patentable.

Gottschalk v.

Benson

Supreme Court

1972 Ineligible

Mathematical algorithm is an abstract idea, to patent it would

preempt the formula, even if previously unknown.

1975 – method for producing

monoclonal antibodies

Parker v. Flook Supreme Court

1978 Ineligible

Cannot simply add non-inventive (well understood method)

post-solution step with a new algorithm.

1970s (late) – insulin (by inserting

foreign genes into an organism)

In re Freeman

In re Walker

In re Abele

CCPA

1978-82 Eligible

(mixed)

Don’t focus on point of novelty (§ 102); something more than

the algorithm has to be claimed (algorithm applied to

physical structure or that limits the process step).

1977 – first full DNA genome

sequencing

1981 – invention of the scanning

tunneling microscope

Diamond v.

Chakrabarty

Diamond v. Diehr

Supreme Court

1980-81 Eligible

Broad interpretation of § 101: “anything under the sun made

by man.” Invention as a whole “transform[s] or reduce[s] an

article to a different state or thing.”

Diehr: “claims must be considered as a whole. It is

inappropriate to dissect the claims into old and new elements

and then to ignore the presence of the old elements in the

analysis”

Historical context for Mayo

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Case Court / Date Description Historical Event

1983

Congress creates the U.S. Court of Appeals for the Federal

Circuit to standardize patent law.

Federal Circuit interprets Freeman, Walker, Abele after

Diamond v. Diehr as the Machine or Transformation test

(MOT).

In re Alappat Supreme Court

1994 Eligible

Relaxes MOT where there is a general purpose computer:

“a process, machine, manufacture, or composition of matter

employing a law of nature, natural phenomenon, or

abstract idea is patentable subject matter even though a

law of nature, natural phenomenon, or abstract idea would

not, by itself, be entitled to such protection.”

1989 – scanning tunneling microscope

first used to manipulate individual atoms

1990 – Human Genome Project launched

[estimated cost = USD $3.8B]

1994 – genetically modified tomatoes

State Street Bank

v. Signature

Financial Group

Supreme Court

1998 Eligible

Claimed invention (business method) involved a practical

application that produces a useful, concrete, tangible result.

Claims must still satisfy §§ 102, 103 and 112.

1997 – eukaryotic genome of bakers

yeast unraveled

1998 – first human embryonic cell lines

2001 – first draft of human genome

2003 – first pharmacogenomic (PGx)

medical diagnostic product introduced

(AmpliChip CYP 450)

Bilski v. Kappos Supreme Court

2010

Ineligible

Claimed process is patent-eligible under the machine-or-

transformation test only if: (1) tied to a particular machine or

apparatus, or (2) it transforms a particular article into a

different state or thing. (The ‘useful, concrete, tangible

result’ inquiry from State Street Bank is no longer

sufficient.)

2011 – America Invents Act (AIA)

prohibits patentability for human

organisms (undefined).

Mayo Collaborative

Svcs. v.

Prometheus Labs

Supreme Court

2012

Ineligible

Two step test used today.

Ends MOT as exclusive test.

2011 – value of HGP in economic activity

estimated at USD $796B (Battelle

Memorial Institute).

1980-2010 (~30 years)

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In Research Corp. Techs. v. Microsoft (2010), CJ Rader described § 101 as

a “coarse eligibility filter,” which in Ultramerical I (2011) & II (2013), he

contrasts to the substantive conditions of patentability (novelty,

nonobviousness, adequate disclosure).

By 2014 (post Alice), in Ultramerical III Judge Mayer described § 101 as a

“primal filter” that must be addressed as a threshold issue similar to

jurisdiction, at the start of litigation.

Blurring lines between §§ 101, 102, 103 and 112.

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§101

§102

§103

§112

35 USC §102 (anticipation) - NOVELTY

35 USC §103 (obviousness) - NONOBVIOUSNESS

35 USC §112 (enablement) - WRITTEN DESCRIPTION

?

?

?

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Predictions (mine only)

• Congress is unlikely to change the landscape to protect medical diagnostic patents in any short

term.

• The Supreme Court decision in Ariosa is at least a year away, and is unlikely to get rid of § 101

or the judicial exceptions (it already responded to this in Mayo). It will likely remain a primal

filter.

• The Supreme Court is unlikely to differentiate between the role of various sections of 35 U.S.C.

• Airosa v. Sequenom is a good case for providing additional clarification about protection for a

newly discovered natural phenomena incorporated into a novel method to achieve a previously

impossible result, narrowly drafted (to limit preemption).

• Claims to previously understood natural phenomena using known methods, even if newly

discovered are unlikely to be patentable – in a manner very similar to post -Alice computer,

internet and business method patents.

• DDR Holdings may present a possible solution.

• USPTO has said it will not provide further [substantive] guidance until there is a final,

unappealable decision in Ariosa v. Sequenom. (Last guidance July 2015.)

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III. Patentability (Europe)

In general, in Europe medical devices are patentable.

Methods of medical treatment (humans or animals) and diagnostic methods are not

patentable (Article 52(4) EPC) subject to numerous qualifications.

Discoveries, scientific theories and mathematical models are not patentable (Article

52(2)(a)-(d)). Mere discovery is unpatentable as it has no direct technical effect, and

thus is not an invention. But if it is put to practical use or has a technical effect, it may

be patentable.

Medical uses for known substances are patenable (Article 52(4)).

* Other warning:

Unlike Australia and the U.S., novelty in Europe is strict … there is no grace period.

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Patentability (Australia)

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Patentability (Australia)

D’Arcy v. Myriad Genetics Inc [2015] HCA 35

Three product claims, claiming “an isolated nucleic acid” that codes for a mutant / polymorphic BRCA 1 polypeptide listed

in particular tables set forth in the patent. The lower court construed these claims as directed to a class of chemical

compounds, upholding their validity.

The High Court instead looked past the form of the claims to the substance of the invention, and held that the essential

element of the claimed invention was the existence of the information stored in the relevant sequences, the discovery of

the correlation between a change in probability of malignancy and the existence of a naturally-occuring nucleotide

sequences. The High Court recognized that human action was required to isolate the mutations in the nucleic acid, but it

was not appropriate for the judiciary to extend the meaning of “manner of manufacture” from Section 18(1)(a) of the Patent

Acts 1990 (Cth) through s 6 of Statute of Monopolies, to monopolize application of “long-established methods for the

isolation and amplification of specific nucleotide fragments to the isolation and amplification of a patient's naturally

occurring BRCA1 gene.” The High Court required that an “artificial state of affairs” be linked to the claimed inventive

concept, the utility or economic significance, and not just be a step along the way.

The decision did not challenge 27 other claims in the patent directed to application of the discovery, such as probes,

vectors, diagnostic methods, and methods of producing .

IP Australia more recently issued Examination Guidelines taking a narrow interpretation of patentable subject matter from

Myriad, and including as unpatentable cDNA (unlike the U.S.), synthetic nucleic acids, probes, primers and isolated

interfering/inhibitory nucleic acids, which in their artificial form merely replicate the genetic information of a naturally

occurring organism.

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IV. Corporate IP, R&D, investment and licensing issues

1. What to do with your future patent filings.

• More strategy before filing.

• number of patent filings, number of claims, type and breadth of

claims; timing.

2. What to do with your existing patents / portfolios

(limited by existing specification); continuations.

3. What to do with your intended technology research and investment.

4. How this plays into commercialisation and licensing efforts.

• freedom to operate, enforceability, litigation

• fund raising

• portfolio analysis, and licensing

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V. Patentability of emerging technologies

• Human 2.0 / bioprinting / gene editing

(example: CRISPR-Cas9)

• Software in medical devices and services /

patient information security

• Big data used in medical care

• More about personalised medicine /

companion diagnostics / theranostics