Federal Circuit Unanimously Upholds The Constitutionality Of Inter Partes Review In MCM Portfolio LLC v. Hewlett-Packard Company

On December 2, 2015, the Federal Circuit issued its decision in MCM Portfolio LLC v. Hewlett-Packard Company (No. 2015-1091), finding inter partes reviews (IPRs) by the Patent Trial and Appeal Board (the Board) constitutional under Article III and the Seventh Amendment, and putting to rest an increasingly common attempt by patent owners to attack the Board's authority rather than the merits of the Board's rulings. The court also reiterated its holding in In Re Cuozzo Speed Techs. that IPR institution decisions are unreviewable. Judge Dyk authored the court's unanimous opinion, joined by Chief Judge Prost and Judge Hughes.

Patent Owner MCM had argued that only an Article III court may invalidate a patent, and that IPR proceedings are therefore unconstitutional. Judge Dyk rejected that argument, finding McCormick Harvesting Machine Co. v. Aultman, 169 U.S. 606 (1898) - a decision on which MCM relied that related to a reissue situation in which Congress had not granted the PTO authority to cancel a patent - inapposite. Instead, the court explained that Supreme Court precedent establishes Congress' authority to delegate public rights disputes to administrative agencies, and...