WILLIAM C. BRYSON, Circuit Judge.
Before the Court is the motion of plaintiff Erfindergemeinschaft UroPep GbR ("UroPep") for an award of attorney fees in this case. Dkt. No. 369. Defendant Eli Lilly & Co. ("Lilly") opposes. The Court DENIES UroPep's motion.
Section 285 of the Patent Act, 35 U.S.C. § 285, authorizes district courts to award reasonable attorney fees to the prevailing party "in exceptional cases." In
UroPep asserts two grounds in support of its request for a fee award: First, UroPep argues that after the Court's claim construction, Lilly's non-infringement position was entirely meritless and that Lilly should not have put UroPep to the task of proving infringement at trial. Second, UroPep argues that Lilly's anticipation defense, which was based on a monograph by C.S. Cheung dealing with the herbal treatment of BPH, was meritless from the start and should not have been pressed at trial. Those two issues, according to UroPep, required UroPep to invest attorney time and resources prior to trial and at trial that should not have been necessary. Accordingly, UroPep requests a fee award to compensate it for the time and resources spent in addressing those two issues once it became clear that Lilly's position on those issues was without merit.
The Court concluded at trial, and concludes again now, that Lilly's positions on those two issues were weak, but not so weak as to render the case "exceptional" and justify an award of attorney fees. The Supreme Court in
UroPep argues that Lilly had no defense to UroPep's infringement claim following the Court's February 2017 order in which the Court clarified that the claim term "an inhibitor of phosphodiesterase (PDE) V" meant a compound that was at least 20 times more selective for PDE5 than for PDE1 through PDE4. At that point, according to UroPep, Lilly should have conceded infringement, at least (presumably) if it could do so while preserving its position on claim construction. UroPep contends that Lilly's decision to force UroPep to litigate the issue of infringement after the Court's February 2017 order rendered the case exceptional.
It is true that the Court in its February 2017 summary judgment order rejected several of Lilly's non-infringement arguments, including its argument that tadalafil, the active ingredient in Cialis, is not a PDE5 inhibitor within the meaning of the '124 patent because it is not more than 20 times more selective for PDE5 than for PDE11. Dkt. No. 234, at 13-16. Nonetheless, as the Court pointed out in its summary judgment order, Lilly still had available to it the argument that in order to prove infringement, UroPep had to prove that Cialis was administered to patients with BPH (i.e., lower urinary tract symptoms associated with an enlarged prostate), not simply to patients with lower urinary tract symptoms not associated with an enlarged prostate.
At trial, Lilly sought to defend against the infringement claim based on its contention that UroPep had failed to prove that Cialis was administered to patients to treat BPH, rather than to treat those not having BPH but having lower urinary tract symptoms not associated with an enlarged prostate. Developing that theory of defense occupied a significant part of Lilly's cross-examination of UroPep's physician witness, Dr. Sliwinski. By questioning Dr. Sliwinski as to how he diagnosed BPH before prescribing Cialis, Lilly attempted to show that doctors who prescribe Cialis for patients with lower urinary tract symptoms are not necessarily using Cialis to in fact treat BPH, because many of their patients may be suffering from lower urinary tract symptoms not associated with an enlarged prostate. That theory, if credited by the jury, could have resulted in a reduction of Lilly's infringement liability or, conceivably, a decision by the jury that UroPep had not proved infringement at all. Moreover, Lilly alluded to that theory during its closing argument, although it did not press the theory at that time beyond asking the jury to make its own determination on that issue.
It is significant that UroPep is seeking fees for being required to prove an issue on which it bore the burden of proof. Lilly in effect said to UroPep: "It is your burden to prove infringement: Do it. And if your proof falls short in some respect, we will be entitled to judgment even in the absence of any affirmative evidence of non-infringement from our side." UroPep emphasizes that its burden of proof on infringement—proof by a preponderance of the evidence—was not overly demanding. But UroPep cites no cases awarding attorney fees in a similar situation—that is, against the party without the burden of proof who declines to concede on an issue at or before trial.
Notwithstanding the absence of authority supporting UroPep's position, the Court is not prepared to conclude that an attorney fee award would never be appropriate when the first party requires the second party with the burden of proof to prove its case, and the first party does not introduce countervailing evidence. Moreover, in this case the Court regards the jury's verdict on infringement as fully supported by the evidence and the law. Nonetheless, the Court is persuaded that Lilly's position on non-infringement did not render this case exceptional, as that term is used in section 285.
UroPep's second argument is that Lilly's anticipation defense based on the Cheung reference regarding the use of Horny Goat Weed as a treatment for BPH was manifestly meritless and justifies an attorney fee award to compensate UroPep for the time and expense of having to meet that defense. As in the case of Lilly's non-infringement position, the Court is persuaded that the jury was fully justified in rejecting Lilly's anticipation defense. Nonetheless, the Court concludes that Lilly's reliance on that defense was not so clearly unwarranted as to render this case exceptional and call for an attorney fee award.
Lilly is correct that the herb epimedii, or Horny Goat Weed, contains icariin, which is a selective PDE5 inhibitor. It is also true that the Cheung reference recommends the ingestion of Horny Goat Weed to treat BPH, and that the Cheung reference antedates the priority date of the '124 patent. Cheung reports that in a clinical study of 34 patients, the herbal treatment of what Cheung calls "prostate hypertrophy," i.e., BPH, produced positive results in 32 patients—more than 90 percent of the patients tested. Moreover, Lilly's expert, Dr. Claus Roehrborn, interpreted the pertinent passage of the Cheung reference to mean that "34 patients were given the PDE5 inhibitor contained in
The principal problem with the Cheung reference is that the language of the critical passage of Cheung is ambiguous enough that it is not clear that Cheung's discussion of Horny Goat Weed inherently anticipates the claims of the '124 patent.
That admission by Dr. Roehrborn highlights a flaw in Lilly's anticipation case—the Cheung reference did not make it unambiguously clear how many, if any, of the patients who were administered Horny Goat Weed were among the 32 patients in the study as to whom the study was shown to be "effective." UroPep alluded generally to that issue in its rebuttal summation, although it argued, incorrectly, that the language of the Cheung reference raised a question whether the herbal epimedii "was actually administered to a patient." The evidence was sufficient to show that at least some patients received Horny Goat Weed; the gap in the proof was over whether those patients who received Horny Goat Weed were among the patients who showed improvement following their treatment.
In light of the ambiguity in the Cheung reference, among other problems with Lilly's anticipation theory, it is not surprising that the jury found Lilly had failed to prove anticipation. However, the Court is not persuaded that Lilly's anticipation defense was so manifestly meritless as to render the case exceptional. It is not fanciful to characterize the evidence as permitting a finder of fact to conclude that Horny Goat Weed contains a sufficient amount of a PDE5 inhibitor such that, under the right circumstances, it could have some ameliorative effect on BPH. And the jury could conceivably have credited Dr. Roehrborn's testimony that Cheung should be interpreted to mean that among the patients in the study who were given Horny Goat Weed, the amount administered was found to be effective.
In sum, although Lilly's anticipation defense was weak and ultimately unconvincing to the jury, Lilly's effort to use the Cheung monograph as an anticipating reference was not beyond the pale. The Court also finds that Lilly's decision to press its anticipation defense did not constitute litigation misconduct. Based on the totality of the circumstances, the Court declines to award attorney fees for UroPep's efforts to respond to Lilly's anticipation defense.
The same day that Lilly filed its sur-reply brief in response to UroPep's motion for attorney fees, the Federal Circuit issued its opinion in
The facts of this case do not rise to the level of the "case-specific circumstances" that the Federal Circuit identified in
Neither
After considering the totality of the circumstances, the Court has concluded that this case does not satisfy the high standard that the Supreme Court adopted in
IT IS SO ORDERED.