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Federal Circuit Refuses to Review the PTAB's Decision to Institute IPR

By Daniel Melman

In its first-ever ruling in an appeal from a final decision in an inter partes review (IPR) under the America Invents Act (AIA), the Federal Circuit, in a 2-1 decision, affirmed the Patent Trial and Appeal Board's (PTAB) rulemaking for conducting IPR proceedings. In re Cuozzo Speed Techs., LLC, Appeal No. 2014-1301 (Fed. Cir. Feb. 4, 2015). The court held: 1) that it lacked jurisdiction to review PTAB decisions instituting IPR; and 2) that the PTAB was correct to apply the broadest reasonable interpretation standard in claim construction rather than the narrower standard used in district court litigation involving validity challenges. The Federal Circuit's decision leaves in place IPR rules that increase the likelihood of invalidating patents and solidifies IPR as an attractive alternative to district court litigation. Circuit Judge Dyk delivered the opinion of the court, joined by Senior Circuit Judge Clevenger. Circuit Judge Newman dissented.

Cuozzo Speed Technologies (Cuozzo) is the assignee of U.S. Patent No. 6,778,074 (the '074 patent), which discloses an interface that displays a vehicle's current speed as well as the speed limit. In one embodiment, a red filter is superimposed on a speedometer when the vehicle, as tracked by GPS, is travelling faster than the speed limit at the vehicle's location. The patent also teaches that the display may be a color liquid crystal display. (slip op. at 2.) Claim 10 of the '074 patent, at issue on appeal, recites:

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