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SCOTUS Heard Arthrex v Smith & Nephew on PTAB Authority


Friday, April 9, 2021
The US Supreme Court hears relatively few patent-related cases in any given term.  However, on March 1
st, the court heard oral arguments in an important case challenging the very structure and authority of the U.S. Patent and Trademark Office’s administrative review board.  In 
Arthrex Inc. v. Smith & Nephew Inc. the Court will decide whether the administrative patent judges (APJs) of the Patent Office’s Patent Trial and Appeal Board (PTAB) were unconstitutionally appointed, and if so, the remedy for such appointments.  At stake are over 3,000 decisions rendered by the PTAB since its establishment in 2012. Approximately 100 of these decisions are precedential and binding on APJs, meaning that the Supreme Court’s decision has potential to bring about a metaphorical tectonic shift in the jurisprudential landscape created by the PTAB. ....

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Arthrex: Supreme Court Asks "Who's The Boss?" | Jones Day


On March 1, 2021, the Supreme Court heard oral arguments in
Arthrex v. Smith & Nephew, No. 19-1434, on March 1, 2021, asking whether the appointment of PTAB judges is consistent with the way that “Officers of the United States” are supposed to be appointed under Article II of the Constitution.  Argument was scheduled for one hour, but ended up going more than 30 minutes over time, with the Justices asking many pointed questions examining the distinction between “inferior” and principal officers under the Constitution, and how much supervision of an officer is enough to make the officer “inferior.”  The reason this matters, it turns out, is that principal officers have to be appointed by the President and confirmed by the Senate, whereas “inferior Officers” can be appointed by the heads of cabinet departments, without presidential or Senate involvement which is how PTAB judges are appointed. ....

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Anthrex: Are Administrative Patent Judges Principal or Inferior Officers


Thursday, February 25, 2021
Arthrex filed its reply brief on February 19
th, submitting what will be the final word in the case until oral arguments are presented next week. In its reply, Arthrex seeks to shore up its own arguments while rebutting the arguments made by Smith & Nephew and the United States in their individual replies.
The consolidated 
Arthrex cases (docketed as 19-1434), ask the Court to determine whether administrative patent judges (APJs) are principal or inferior officers and, if they are principal officers, what remedy should be employed to bring their appointments into compliance with the Appointments Clause of the Constitution. Currently, APJs are appointed by the Secretary of Commerce, and are assigned to panels as designated by, and otherwise supervised by, the Director of the USPTO.  The United States and Smith & Nephew have argued that APJs are inferior officers because they are supervised “at some level.” Because AP ....

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