J.P. Morgan Appeal Dismissed for Lack of Jurisdiction
In Intellectual Ventures II LLC v. J.P. Morgan Chase & Co., 2014-1724 (Fed. Cir. Apr. 1, 2015), the United States Court of Appeals for the Federal Circuit dismissed the bank defendants’ interlocutory appeal for want of jurisdiction. Intellectual Ventures, a known patent troll, filed the suit against J.P. Morgan Chase and several other financial institutions in 2013, alleging infringement of five patents. The defendants, who are represented by renowned law and technology scholar Mark Lemley, filed a motion to stay the case pending the outcome of several CBM review petitions they intended to file. The district court denied the motion, citing, among other things, the plaintiff’s Sixth Amendment right to a speedy trial. In a 2-1 decision, the Federal Circuit dismissed the defendants’ appeal, which was premised solely upon a grant of jurisdiction in §18 of the America Invents Act, a provision which the court said “must be construed narrowly”. Because the Patent Trial and Appeal Board had not yet acted on the defendants’ CBM review petitions, there was not yet a “proceeding” for the purposes of §18, and thus, the court had no jurisdiction to hear the case. The majority found support for this position in the legislative history of the America Invents Act, as well as through an interpretative analogy to the meaning of “proceeding” in 35 U.S.C. §325.