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Summary: Case: 19-1066 Document: 47 Page: 1 Filed: 05/22/2020 United States Court of Appeals for the Federal Circuit _ ODYSSEY LOGISTICS AND TECHNOLOGY CORPORATION, Plaintiff-Appellant v. ANDREI IANCU, UNDER SECRETARY OF COMMERCE FOR INTELLECTUAL PROPERTY AND DIRECTOR OF THE UNITED STATES PATENT AND TRADEMARK OFFICE, Defendant-Appellee _ 2019-1066 _ Appeal from the United States District Court for the Eastern District of Virginia in No. 1:18-cv-00079-AJT-JFA, Judge Anthony J. Trenga. _ Decided: May 22, 2
Summary: Case: 19-1066 Document: 47 Page: 1 Filed: 05/22/2020 United States Court of Appeals for the Federal Circuit _ ODYSSEY LOGISTICS AND TECHNOLOGY CORPORATION, Plaintiff-Appellant v. ANDREI IANCU, UNDER SECRETARY OF COMMERCE FOR INTELLECTUAL PROPERTY AND DIRECTOR OF THE UNITED STATES PATENT AND TRADEMARK OFFICE, Defendant-Appellee _ 2019-1066 _ Appeal from the United States District Court for the Eastern District of Virginia in No. 1:18-cv-00079-AJT-JFA, Judge Anthony J. Trenga. _ Decided: May 22, 20..
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Case: 19-1066 Document: 47 Page: 1 Filed: 05/22/2020
United States Court of Appeals
for the Federal Circuit
______________________
ODYSSEY LOGISTICS AND TECHNOLOGY
CORPORATION,
Plaintiff-Appellant
v.
ANDREI IANCU, UNDER SECRETARY OF
COMMERCE FOR INTELLECTUAL PROPERTY
AND DIRECTOR OF THE UNITED STATES
PATENT AND TRADEMARK OFFICE,
Defendant-Appellee
______________________
2019-1066
______________________
Appeal from the United States District Court for the
Eastern District of Virginia in No. 1:18-cv-00079-AJT-JFA,
Judge Anthony J. Trenga.
______________________
Decided: May 22, 2020
______________________
ROBERT BAUER, Bauer Law Offices, Pittsburgh, PA, ar-
gued for plaintiff-appellant. Also represented by CHARLES
MOLSTER, III, Law Offices of Charles B. Molster, III PLLC,
Great Falls, VA.
PETER JOHN SAWERT, Office of the Solicitor, United
States Patent and Trademark Office, Alexandria, VA, ar-
gued for defendant-appellee. Also represented by THOMAS
Case: 19-1066 Document: 47 Page: 2 Filed: 05/22/2020
2 ODYSSEY LOGISTICS AND TECH. v. IANCU
W. KRAUSE; R. TRENT MCCOTTER, G. ZACHARY
TERWILLIGER, Office of the United States Attorney, United
States Department of Justice, Alexandria, VA.
______________________
Before LOURIE, REYNA, and HUGHES, Circuit Judges.
HUGHES, Circuit Judge.
This case presents three Administrative Procedure Act
challenges involving the United States Patent and Trade-
mark Office. Odyssey challenges procedural actions taken
by the PTO in two patent applications and makes a third
facial challenge to certain PTO procedural rules governing
practice before the Patent Trial and Appeal Board in ex
parte appeals. The Eastern District of Virginia dismissed
the former two challenges for lack of subject matter juris-
diction because the PTO had not taken final agency action.
It dismissed the latter challenge as barred by 28 U.S.C.
§ 2401, the six-year statute of limitations for challenges to
agency action. Because we agree with the district court
that the first two challenges concern non-final agency ac-
tion and the latter challenge is barred by § 2401, we affirm.
I
Odyssey Logistics and Technology Corporation (Odys-
sey), disapproving of certain decisions of the PTO, chal-
lenged the legality of those PTO decisions in district court
under the Administrative Procedure Act (APA). The first
challenge (Count I) relates to the prosecution of U.S. Pa-
tent Application No. 11/005,678. The second challenge
(Count II) relates to the prosecution of U.S. Patent Appli-
cation No. 11/465,603. The third challenge (Count III) con-
tests whether amendments to the Rules of Practice Before
the Board of Patent Appeals and Interferences in Ex Parte
Case: 19-1066 Document: 47 Page: 3 Filed: 05/22/2020
ODYSSEY LOGISTICS AND TECH. v. IANCU 3
Appeals conform with the PTO’s statutory authority. 1 See
Rules of Practice Before the Board of Patent Appeals and
Interferences in Ex Parte Appeals, 76 Fed. Reg. 72,270
(Nov. 22, 2011) (codified at 37 C.F.R. pts. 1 and 41). We
recount the factual and procedural history of each chal-
lenge in turn.
A
Count I arises from the examination of Odyssey’s
’678 patent application. Odyssey filed the ’678 application
in 2004. After a number of procedural disputes over the
examination of the application, including multiple appeals
to this Court, see In re Riggs, 457 F. App’x 923 (Fed. Cir.
2011); Odyssey Logistics & Tech. Corp. v. Kappos, No. 11-
1441 (Fed. Cir. filed June 20, 2011) (voluntarily dismissed),
the Patent Trial and Appeal Board heard Odyssey’s appeal
of the examiner’s rejections in the ’678 application. On
April 29, 2016, the Board reversed the examiner’s rejec-
tions. J.A. 1225, 1229–30. The PTO did not, however, is-
sue Odyssey a notice of allowance for the ’678 application.
Instead, on September 23, 2016, the Technology Center
Director issued what Odyssey refers to as the “examiner’s
request for rehearing.” 2 Appellant’s Br. at 14; J.A. 1267.
The rehearing request argued that the Board had applied
1 These rules refer to the Board of Patent Appeals
and Interferences because they were promulgated before
the America Invents Act replaced the BPAI with the Patent
Trial and Appeal Board on September 16, 2012. See Leahy-
Smith America Invents Act, Pub. L. No. 112-29, §§ 7, 35,
125 Stat. 284, 313, 341 (Sept. 16, 2011) (codified as
amended at 35 U.S.C. § 6). Because the relevant events
here occurred after that date, we refer to the deciding ad-
ministrative body as the Patent Trial and Appeal Board.
2 The PTO uses “rehearing” to describe “reconsider-
ation.” 37 C.F.R. § 41.2.
Case: 19-1066 Document: 47 Page: 4 Filed: 05/22/2020
4 ODYSSEY LOGISTICS AND TECH. v. IANCU
an incorrect version of 35 U.S.C. § 102(e) to determine
whether a reference qualified as prior art and also re-
quested clarification as to which claims the Board was re-
versing. J.A. 1269–72. Odyssey was given the opportunity
to respond to the rehearing request both before and after
the Board received it. See J.A. 1282, 1371. On both occa-
sions, Odyssey did not address the merits of the examiner’s
arguments, instead objecting to the procedural propriety of
the rehearing request. See
id. Odyssey also filed petitions
objecting to the rehearing procedure, and requests for re-
consideration when those petitions were dismissed. J.A.
1326, 1334, 1357, 1360, 1362. Odyssey eventually made
some arguments on the merits “under protest,” J.A. 1370,
but instead of waiting for the Board’s decision on these ar-
guments, Odyssey filed this challenge to the request for re-
hearing in the Eastern District of Virginia.
B
Count II arises from the prosecution of Odyssey’s ’603
application. Odyssey filed the ’603 application in 2006. Af-
ter a final rejection of all claims of the ’603 application, Od-
yssey appealed the examiner’s rejections and, at the same
time, filed a petition demanding that the examiner make
certain evidence part of the written record and supplement
his responses to Odyssey’s arguments with additional ex-
planation. J.A. 1805, 1816; J.A. 1858. The examiner re-
sponded, declining to include the additional evidence but
further explaining his disagreement with Odyssey’s argu-
ments for allowance. Because the examiner had re-
sponded, the Technology Center Director dismissed the
petition as moot.
With this petition resolved, the examiner filed his an-
swer to Odyssey’s appeal brief. The examiner’s answer did
not designate any new grounds of rejection, see J.A. 1876,
but Odyssey believed that the answer included new
grounds, so Odyssey filed a new petition, requesting that
the Technology Center Director designate certain portions
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ODYSSEY LOGISTICS AND TECH. v. IANCU 5
of the examiner’s answer as new grounds of rejection. J.A.
1894. The Technology Center Director dismissed this peti-
tion on the merits, finding that the portions of the answer
with which Odyssey took issue did not set forth new
grounds of rejection. J.A. 1910–13. Rather than filing a
brief replying to the examiner’s answer and waiting to see
if the Board would strike certain portions of its reply as
improper, Odyssey challenged the dismissal of the petition
in the Eastern District of Virginia.
C
Count III arises from the PTO’s 2011 amendments to
its rules of practice in ex parte appeals. See 76 Fed. Reg.
72,270. The PTO gave four purposes for these amend-
ments: (1) “to ensure that the Board has adequate infor-
mation to decide ex parte appeals on the merits, while not
unduly burdening appellants or examiners with unneces-
sary briefing requirements”; (2) “to eliminate any gap in
time from the end of briefing to the commencement of the
Board’s jurisdiction”; (3) “to clarify and simplify petitions
practice on appeal”; and (4) “to reduce confusion as to which
claims are on appeal.”
Id. at 72,271. The PTO first pub-
lished the amendments as a notice of proposed rulemaking
in the Federal Register on Nov. 15, 2010. Rules of Practice
Before the Board of Patent Appeals and Interferences in Ex
Parte Appeals, 75 Fed. Reg. 69,828 (proposed Nov. 15,
2010). The final rules were published on Nov. 22, 2011.
See 76 Fed. Reg. 72,270. The amendments apply to all ex
parte appeals filed on or after January 23, 2012.
Id. Odys-
sey challenged the legality of these amendments, framing
this Count as a “facial” challenge to the 2011 amendments.
See J.A. 31–32, 45.
II
In the district court, the PTO moved to dismiss all
three counts. It argued that the district court lacked sub-
ject matter jurisdiction for the first two counts, and that
the third count was barred by the statute of limitations.
Case: 19-1066 Document: 47 Page: 6 Filed: 05/22/2020
6 ODYSSEY LOGISTICS AND TECH. v. IANCU
Odyssey opposed the dismissal of Counts I and III. Odys-
sey conceded that Count II should be dismissed but urged
that it should be dismissed as moot under this Court’s in-
tervening decision in In re Durance,
891 F.3d 991 (Fed. Cir.
2018), rather than for lack of subject matter jurisdiction.
See J.A. 1986.
The district court agreed with the PTO and dismissed
all three counts. The court dismissed the first two counts
because Odyssey was challenging actions not yet final be-
fore the Board; the Board could provide Odyssey with an
adequate remedy, and if not, Odyssey had statutory reme-
dies for appeal under 35 U.S.C. §§ 141 or 145. The court
held alternatively that it lacked a final agency action that
would provide jurisdiction under § 704 of the APA. The
court did not address mootness, noting that doing so would
require it to “rule substantively on whether the recent de-
cision in the Federal Circuit in the Durance case” applied
to Count II. J.A. 1996.
The district court dismissed Count III, holding that
28 U.S.C. § 2401 barred the claims. J.A. 1997. The court
held that Hire Order Ltd. v. Marianos,
698 F.3d 168, 170
(4th Cir. 2012), requires the statute of limitations for a fa-
cial APA challenge to run from the date the regulations
were published. Because the amended ex parte appeal reg-
ulations were published on November 22, 2011, and the
complaint was filed on January 23, 2018 (six years after
the effective date rather than the publication date), the
statute of limitations had run. J.A. 1997. The district court
held that, even if construed as an as-applied challenge, it
lacked subject matter jurisdiction to decide the challenge
because, without final agency action, the challenge could
still be raised in the ongoing Board proceeding.
Odyssey timely appealed. We have jurisdiction under
28 U.S.C. § 1295(a)(1).
Case: 19-1066 Document: 47 Page: 7 Filed: 05/22/2020
ODYSSEY LOGISTICS AND TECH. v. IANCU 7
III
We review procedural rules following “the rule of the
regional circuit, unless the issue is unique to patent law
and therefore exclusively assigned to the Federal Circuit.”
Madey v. Duke Univ.,
307 F.3d 1351, 1358 (Fed. Cir. 2002).
APA claims against the PTO “raise[] a substantial question
of patent law.” Exela Pharma Scis., LLC v. Lee,
781 F.3d
1349, 1352 (Fed. Cir. 2015). We “review[] de novo the dis-
trict court’s dismissal of [a plaintiff’s] APA claims against
the PTO for lack of subject matter jurisdiction.” Pregis
Corp. v. Kappos,
700 F.3d 1348, 1354 (Fed. Cir. 2012). As
to procedural questions not relating to patent law, the
Fourth Circuit “review[s] the district court’s grant of a mo-
tion to dismiss de novo, focusing only on the legal suffi-
ciency of the complaint.” McCauley v. Home Loan Inv.
Bank, F.S.B.,
710 F.3d 551, 554 (4th Cir. 2013).
A
We first address whether Odyssey satisfied the APA’s
finality requirement, see 5 U.S.C. § 704, for judicial review
of Count I, Odyssey’s challenge to the Examiner’s Request
for Rehearing in the ’678 appeal. On appeal, Odyssey ar-
gues that the Board’s reversal of the examiner’s rejections
in the ’678 appeal was a final agency action, and the re-
hearing proceedings are an ultra vires action by the PTO.
Odyssey characterizes the rehearing as a second Board pro-
ceeding and urges us to consider the Board’s rehearing as
an “attempted end-[run] around the inability of the PTO”
to directly appeal the Board’s decision. Appellant’s Br. 31.
We disagree.
In the context of the APA, “an action is final if it both
(1) mark[s] the consummation of the agency’s decisionmak-
ing process and (2) is one by which rights or obligations
have been determined, or from which legal consequences
will flow.” Smith v. Berryhill,
139 S. Ct. 1765, 1775–76
(2019) (internal quotations omitted) (first alteration in
original). Until the Board issues its rehearing decision, the
Case: 19-1066 Document: 47 Page: 8 Filed: 05/22/2020
8 ODYSSEY LOGISTICS AND TECH. v. IANCU
PTO has not consummated its decision-making process and
Odyssey’s rights and obligations in the ’678 patent have
not been determined. Without such final action from the
PTO, the APA does not entitle Odyssey to judicial review.
The rehearing process here is ordinary agency action
in accordance with the PTO’s Manual of Patent Examining
Procedure. See M.P.E.P. 1214.04. 3 During a rehearing, the
Board continues to consider the validity of an application’s
claims. Although it found the claims allowable during the
’678 application’s appeal, the Board may reconsider its de-
cision when the examiner requests rehearing.
Id. See also
In re Alappat,
33 F.3d 1526, 1531 (Fed. Cir. 1994), abro-
gated on other grounds by In re Bilski,
545 F.3d 943 (Fed.
Cir. 2008) (allowing the Director to designate members of
the Board to rehear a Board decision after the examiner
requested rehearing under MPEP 1204.04); Application of
Schmidt,
377 F.2d 639, 641 (C.C.P.A. 1967) (“While re-
quests for reconsideration by examiners are rare, it has
been the settled practice to entertain them . . . .”). Under
the APA, “[t]he timely filing of a motion to reconsider ren-
ders the underlying order nonfinal for purposes of judicial
review.” Stone v. I.N.S.,
514 U.S. 386, 392 (1995). The
3 Under MPEP 1214.04, “[t]he examiner may re-
quest rehearing of the Board decision. Such a request
should normally be made within 2 months of the return of
the application to the [Technology Center] . . . .” Calling
the request the “examiner’s” is somewhat of a misnomer:
“All requests by the examiner to the Board for rehearing of
a decision must be approved by the [Technology Center] . . .
Director and must also be forwarded to the Office of the
Deputy Commissioner for Patent Examination Policy for
approval before mailing.”
Id. The request is entered in the
electronic file and “mailed or given to the” applicant, who
has two months to reply before the request is forwarded to
the Board. See
id.
Case: 19-1066 Document: 47 Page: 9 Filed: 05/22/2020
ODYSSEY LOGISTICS AND TECH. v. IANCU 9
reconsideration process is the last stop on the PTO’s path
to a final disposition, after which, if the Board does reverse
itself, Odyssey will have an “adequate remedy in court” by
appealing the Board’s decision under 35 U.S.C. §§ 141 or
145. See 37 C.F.R. § 90.3(b)(1) (explaining that the appli-
cant’s time to challenge a Board decision in an appeal or
civil action starts anew after the Board’s action on rehear-
ing); cf. Automated Merch. Sys., Inc. v. Lee,
782 F.3d 1376,
1381 (Fed. Cir. 2015) (finding no final agency action in a
suit challenging the PTO’s refusal to terminate reexamina-
tion proceedings despite the request of the patent owner).
In Odyssey’s view, MPEP 1214.04 cannot apply be-
cause the examiner’s request for rehearing did not occur
within 63 days, and, according to Odyssey, the Board loses
jurisdiction 63 days after it issues its final decision, and
these regulations must supersede PTO procedural guide-
lines from the MPEP. Appellant’s Reply Br. 15–17; (citing
37 C.F.R. §§ 41.52, 41.35(b)(2)). See also 37 C.F.R. § 90.3
(requiring than an applicant appeal a Board decision under
§ 141 or § 145 within 63 days). But neither § 41.52 nor
§ 41.35(b)(2) constrict the Patent Office’s time to request
rehearing; they instead bind the patent applicant. E.g., 37
C.F.R. § 41.52(a)(1) (“Appellant may file a single request
for rehearing within two months of the date of the original
decision of the Board.” (emphasis added)). Instead, the reg-
ulatory context suggests that the Director may override the
Board’s “jurisdiction” so long as he does not circumvent
eventual Board review. See 37 C.F.R. § 41.35 (“Prior to the
entry of a decision on the appeal by the Board, the Director
may sua sponte order the proceeding remanded to the ex-
aminer.” (internal cross-reference omitted)); Hyatt v. U.S.
Pat. & Trademark Off.,
904 F.3d 1361, 1375 (Fed. Cir.
2018) (“Allowing examiners to reopen prosecution does not
deprive applicants of their right to appeal final examiner
rejections because reopening prosecution cannot circum-
vent PTAB review.”), cert. denied sub nom. Hyatt v. Iancu,
140 S. Ct. 45 (2019).
Case: 19-1066 Document: 47 Page: 10 Filed: 05/22/2020
10 ODYSSEY LOGISTICS AND TECH. v. IANCU
If the Director may divest the Board of its authority
over an appeal so long as he does not circumvent the appli-
cant’s statutory right to appeal, the Director logically also
may grant the Board authority to reconsider its appeal. Is-
suing a request for rehearing under MPEP 1214.04 simply
makes use of the Director’s authority over the examination
process under 35 U.S.C. §§ 131, 132. See M.P.E.P. 1002.02
(delegating the Director’s authority to approve “[r]equests
from the examiner for . . . rehearing of a [Board] decision”
to the Deputy Commissioner for Patents).
In some circumstances, the PTO’s delay in making a
request for rehearing, although technically conforming
with the statute and regulation, may cause unfair preju-
dice to the applicant of such gravity that an applicant may
seek otherwise-premature recourse in the courts.
Hyatt,
904 F.3d at 1375 (“[T]he APA offers a remedy for [abusive
use of agency rules to delay proceedings] by enabling re-
viewing courts to compel agency actions unlawfully with-
held or unreasonably delayed without adequate reason or
justification.”) But nothing indicates that such abusive ac-
tion took place here. If Odyssey did encounter any unfair
prejudice, it may raise the issue after the Board has
reached a final decision. And if Odyssey prevails before the
Board, it can seek appropriate Patent Term Adjustment to
compensate for any delay. See 35 U.S.C. § 154(b)(4).
B
We next address whether Odyssey met the final agency
action requirement for Count II, Odyssey’s challenge to the
PTO’s dismissal of its petition ’603 application, or whether
Count II should have been instead dismissed as moot under
Durance. We affirm the district court’s resolution of
Count II. The dismissal of Odyssey’s petition to designate
new grounds is non-final agency action because the dismis-
sal did not determine any rights or obligations or result in
any legal consequences. Until the Board refuses to con-
sider arguments made in Odyssey’s reply brief for
Case: 19-1066 Document: 47 Page: 11 Filed: 05/22/2020
ODYSSEY LOGISTICS AND TECH. v. IANCU 11
exceeding the permissible scope of the brief under
37 C.F.R. § 41.41, the denial of Odyssey’s petition to desig-
nate new grounds has not determined any rights or re-
sulted in any legal consequences. 4 The district court was
therefore correct to dismiss Count II for lack of finality.
The district court was not obligated to dispose of the
case on the more uncertain mootness ground—or even con-
sider it. “[A] federal court has leeway to choose among
threshold grounds for denying audience to a case on the
merits.” Sinochem Int’l Co. v. Malaysia Int’l Shipping
Corp.,
549 U.S. 422, 431 (2007) (internal quotation marks
omitted); see Long Term Care Partners, LLC v. United
States,
516 F.3d 225, 233 (4th Cir. 2008) (upholding the dis-
trict court’s dismissal of a case on APA finality grounds
without reaching a “difficult to resolve” standing issue).
The district court did not err by “tak[ing] the less burden-
some course.”
Sinochem, 549 U.S. at 436.
C
Finally, we turn to whether the district court properly
dismissed Odyssey’s facial challenge to the PTO’s 2011
ex parte appeal amendments because the statute of limita-
tions had run. Odyssey argues that the statute of limita-
tions governing facial challenges of agency regulations
4 Although the district court appropriately declined
to reach how Durance may or may not apply to the ’603
appeal, Durance is instructive in showing that other liti-
gants understood the correct process to raise an APA chal-
lenge to the PTO’s failure to designate new grounds of
rejection. In that case, the appellants submitted a reply
brief containing the arguments they wanted to make,
waited for the final decision of the Board, requested rehear-
ing, and only then turned to the courts for judicial review
of the agency action. See In re Durance,
891 F.3d 991, 999–
1000 (Fed. Cir. 2018).
Case: 19-1066 Document: 47 Page: 12 Filed: 05/22/2020
12 ODYSSEY LOGISTICS AND TECH. v. IANCU
under 28 U.S.C. § 2401 starts on the effective date of the
regulations, not the published date. Odyssey urges us to
ignore as dictum the Fourth Circuit’s statement to the con-
trary in Hire
Order, 698 F.3d at 170, and to apply Premin-
ger v. Sec’y of Veterans Affairs,
517 F.3d 1299, 1307
(Fed. Cir. 2008), which, in its view, suggests that the effec-
tive date provides the correct rule. Appellant’s Br. 35–36;
Appellant’s Reply Br. 24–27. Odyssey argues that
Hyatt,
904 F.3d at 1372, confirms this conclusion because it makes
a substantive facial challenge to the rules’ statutory com-
pliance and therefore, under Hyatt, “the right of action ac-
crued from the first adverse application of the amended
rules against Odyssey, which could not have been any ear-
lier than the effective date of the amended rules.” Appel-
lant’s Br. 38. We disagree with Odyssey on all fronts.
The district court’s decision is unquestionably correct
under Hire Order. Odyssey characterized Count III as a
facial challenge in its amended complaint, J.A. 45, and re-
quested a remedy that would go beyond any applications of
the contested rules to its appeals. J.A. 48. Odyssey does
not retreat from that characterization before this Court.
See Appellant’s Br. 34, 38; Appellant’s Reply Br. 27. Under
Hire Order, for “a facial challenge to an agency ruling[,] . . .
the limitations period begins to run when the agency pub-
lishes the regulation.” Hire
Order, 698 F.3d at 170 (inter-
nal quotation marks omitted). The challenged rules were
published in the Federal Register on November 22, 2011;
Odyssey filed its facial challenge on January 23, 2018,
more than six years later. J.A. 1997. Count III is therefore
barred by 28 U.S.C. § 2401.
We need not decide whether this rule is a dictum, be-
cause the other authority Odyssey cites leads to the same
conclusion. Hyatt definitively sets out the rule applied by
this Court, which accords with Hire Order for facial,
Case: 19-1066 Document: 47 Page: 13 Filed: 05/22/2020
ODYSSEY LOGISTICS AND TECH. v. IANCU 13
substantive challenges like that raised here. 5 Under Hy-
att, the statute of limitations for a challenge to the PTO’s
statutory authority to promulgate a regulation begins run-
ning “either when the agency makes its initial decision or
at the time of an adverse application of the decision against
the plaintiff, whichever comes later.”
Hyatt, 904 F.3d at
1372. The nature of Odyssey’s challenge, being a facial
challenge, means that it does not assert any adverse appli-
cations or seek relief in any specific applications. Cf. Educ.
Media Co. at Va. Tech, Inc. v. Insley,
731 F.3d 291, 298 n.5
(4th Cir. 2013) (“[A] court considering a facial challenge is
to assess the constitutionality of the challenged law with-
out regard to its impact on the plaintiff asserting the facial
challenge. In contrast, an as-applied challenge is based on
a developed factual record and the application of a statute
to a specific person[.]” (internal quotation marks and cita-
tion omitted; second alteration original)).
5 Numerous courts of appeal have held similarly to
Hire Order and Hyatt that the statute of limitations for a
substantive facial challenge to a regulation runs from the
date of publication. See Rodriguez v. United States,
852
F.3d 67, 82 (1st Cir. 2017); Dunn–McCampbell Royalty In-
terest, Inc. v. Nat’l Park Serv.,
112 F.3d 1283, 1287 (5th Cir.
1997); Wind River Min. Corp. v. United States,
946 F.2d
710, 715 (9th Cir. 1991); Pub. Citizen v. Nuclear Reg.
Comm’n,
901 F.2d 147, 152 (D.C. Cir. 1990); see also Co-
manche Nation of Oklahoma v. Zinke, 754 F. App’x 768,
772 (10th Cir. 2018) (explaining that “[p]ublication in the
federal register generally starts the limitations period for
facial challenges” of a regulation and noting—based on
Wind River, from which Hyatt also drew reasoning—that
timing of the statute of limitations based on an “adverse
application” of a regulation is inapplicable to a substantive
facial challenge), cert. denied,
139 S. Ct. 2645 (2019).
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14 ODYSSEY LOGISTICS AND TECH. v. IANCU
Without any adverse applications, the statute of limi-
tations must accrue “when the agency makes its initial de-
cision.”
Hyatt, 904 F.3d at 1372. That decision is
coterminous with the final agency action, which occurs
when the agency promulgates the final regulation. See
Franklin v. Massachusetts,
505 U.S. 788, 797 (1992) (“The
core question [in determining whether an agency action is
final] is whether the agency has completed its deci-
sionmaking process, and whether the result of that process
is one that will directly affect the parties.”). In no case
would the agency’s “initial decision” regarding a regulation
take place on the effective date of the regulation.
Hyatt also forecloses Odyssey’s arguments about Pre-
minger. Hyatt explains that Preminger involved a proce-
dural challenge, which alone distinguishes it from this
case.
Hyatt, 904 F.3d at 1372 (citing
Preminger, 517 F.3d
at 1307). In addition, Hyatt relies on Preminger for the rule
that the relevant “final agency action” starting accrual of
the statute of limitations for a procedural challenge is the
promulgation of a regulation. Id. (citing
Preminger,
517 F.3d at 1307).
Applying either Hire Order and Fourth Circuit law or
Hyatt and Federal Circuit law, 28 U.S.C. § 2401 bars Count
III. We therefore affirm the district court’s dismissal of
Count III because the statute of limitations to challenge
the ex parte appeal rules had run before Odyssey filed suit.
IV
We have considered the parties’ other arguments and
find them unpersuasive. Odyssey brought its two chal-
lenges to the PTO’s actions during its ex parte appeals too
early and brought its challenge to the PTO’s ex parte appeal
regulations too late. The district court’s dismissal of the
former two challenges for lack of subject matter jurisdic-
tion and of the latter challenge for failure to state a claim
is
Case: 19-1066 Document: 47 Page: 15 Filed: 05/22/2020
ODYSSEY LOGISTICS AND TECH. v. IANCU 15
AFFIRMED