Security People, Inc. v. Lee et al

Filing 45

ORDER by Judge Haywood S. Gilliam, Jr. GRANTING ( 16 , 22 ) MOTIONS TO DISMISS WITH PREJUDICE (ndrS, COURT STAFF) (Filed on 3/25/2016) .

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SECURITY PEOPLE, INC.,
Plaintiff,

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United States District Court
Northern District of California

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v.

Case No. 15-cv-03172-HSG
ORDER GRANTING MOTIONS TO
DISMISS WITH PREJUDICE
Re: Dkt. Nos. 16, 22

MICHELLE K. LEE, et al.,
Defendants.
Plaintiff Security People, Inc. filed this lawsuit on July 8, 2015 against Michelle K. Lee, in

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her capacity as Director of the United States Patent and Trademark Office, the United States

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Patent and Trademark Office (“PTO”), and Ojmar US, LLC (collectively, “Defendants”). Dkt.

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No. 1. The lawsuit alleges a single count positing the unconstitutionality of 35 U.S.C. §§ 311-19,

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contending that the PTAB’s inter partes review proceedings violate Article III separation of

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powers principles and the right to have patent validity issues determined by a jury.

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In light of the Federal Circuit’s recent decision in MCM Portfolio LLC v. Hewlett-Packard

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Co., 812 F.3d 1284 (Fed. Cir. 2015), the Court GRANTS the motions to dismiss. MCM Portfolio

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squarely rejected the argument that inter partes review violates Article III. See id. at 1292. The

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decision further held that “[b]ecause patent rights are public rights, and their validity susceptible to

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review by an administrative agency, the Seventh Amendment poses no barrier to agency

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adjudication without a jury.” Id. at 1293.

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Finding that the complaint fails to state a cognizable claim to relief and that further

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amendment of the pleadings would be futile, the Court GRANTS the motion to dismiss with

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prejudice. See Shroyer v. New Cingular Wireless Servs., Inc., 622 F.3d 1035, 1041 (9th Cir. 2010)

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(holding dismissal is appropriate where “where there is no cognizable legal theory” (internal

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quotation marks omitted)). The Clerk is directed to enter judgment in favor of Defendants and

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close the file.
IT IS SO ORDERED.
Dated: 3/25/2016

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HAYWOOD S. GILLIAM, JR.
United States District Judge

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United States District Court
Northern District of California

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