GORTON, J.
Plaintiff Oxford Immunotec Ltd. ("plaintiff" or "Oxford") alleges defendants Qiagen, Inc., Quest Diagnostics, Inc. and Laboratory Corporation of America Holdings ("defendants" or "Qiagen") infringed its patents relating to a method and kit for diagnosing tuberculosis. Oxford seeks a preliminary injunction to enjoin Qiagen from selling the QFT-Plus one-tube option to new customers currently using a tuberculin skin test or TSPOT.TB.
Oxford owns six patents describing a method and kit for diagnosing tuberculosis
The sixth patent-in-suit, U.S. Patent No. 8,617,821 ("the '821 patent"), entitled "Assay Method for Peptide Specific T-Cells," has a different specification. It was issued on December 31, 2013.
Oxford's amended complaint contains six counts alleging infringement of those six patents, in violation of 35 U.S.C. § 271(a)-(c).
Oxford's motion for preliminary injunction rests on two exemplary patent claims.
Claim 1 of the '211 patent is for:
Plaintiff rests its motion for preliminary injunction on those two claims.
Approximately one-third of the world population is infected by tuberculosis and between 5% and 10% of infected individuals will develop the active disease. Tuberculosis detection is currently performed in one of two ways: through a tuberculin skin test ("TST") or through an
Oxford's patents pertain to an IGRA for tuberculosis. When the body encounters a pathogen such as
The '646 patents-in-suit are drawn to a method for diagnosing tuberculosis whereby T cells are placed in contact with peptides from a protein known as ESAT-6. Oxford uses ESAT-6 because it is secreted by
Oxford's invention also provides a kit for carrying out the claimed method.
IGRAs provide more convenience and accuracy than skin tests. There are currently two IGRAs available in the United States market: Oxford's T-SPOT.TB and Qiagen's QuantiFERON-Gold In-Tube ("QFT-Gold") product. Accordingly, both companies seek to convert skin test users, who currently comprise about 80% of the tuberculosis diagnosis market, to IGRA users.
Oxford maintains that the T-SPOT.TB is a superior product to the QFT-Gold because the former uses a single, standardized tube while the latter requires multiple specialized tubes. The QFT-Plus, Qiagen's next generation product, mimics the QFT-Gold but also contains an additional single test tube option. Qiagen's single tube option has been offered outside the United States. Oxford maintains that the single tube option in the QFT-Plus is meant to emulate their T-SPOT.TB test.
Plaintiff requests that this Court enjoin the sale of the QFT-Plus one-tube option to new customers currently using the skin tests or TSPOT.TB until after trial to prevent defendants' allegedly infringing product from gaining market share at plaintiff's expense.
On June 8, 2017, Qiagen announced that it had received FDA approval for its next generation "QFT-Plus" product. According to its corporate representative, Qiagen intends to launch the product in the U.S. market in October, 2017. Qiagen maintains that Oxford knew in January, 2017, that Qiagen had applied for FDA approval. In fact, Oxford has been aware of the launch of the QFT-Plus since at least September 2015 and, shortly thereafter, informed Qiagen that it would move for a preliminary injunction when the product launched.
Plaintiff filed its complaint in August, 2015. Defendants jointly moved to dismiss that suit in October, 2015, asserting that Fed. R. Civ. P. 12(b)(6) and 35 U.S.C. § 101 mandated dismissal. The motion was referred to Magistrate Judge Cabell, who issued his report and recommendation ("R & R") regarding the motion on August 31, 2016. He recommended dismissing plaintiff's
On September 30, 2016, this Court adopted, in part, and rejected, in part, the Magistrate Judge's R & R, allowing both the "kit" and the "method" claims to proceed.
Magistrate Judge Cabell found that the "kit" claim was directed towards ineligible subject matter because the peptides used in plaintiff's diagnostic kit exist in nature and have not been changed beyond the act of isolation from the ESAT-6 protein. Accordingly, Magistrate Judge Cabell reasoned, the peptide claims lacked an inventive concept. This Court rejected that finding because, taking the plaintiff's allegations as true, the claimed peptides were
This court thus concluded that the peptides allegedly arise from "human ingenuity" and have a distinctive character and use, thus being drawn to eligible subject matter.
This Court accepted the Magistrate Judge's recommendation that the "method" claims proceed. Defendants claimed that plaintiff's method claims involved "routine and conventional" steps lacking an inventive concept. This Court found, however, that the method claims, when considered in combination, improved on current tuberculosis testing methods and that, accepting the plaintiff's allegations as true, there was no
In February 2017, the Patent and Trademark Office ("PTO") rejected all five of Qiagen's petitions for
This Court conducted a
On August 4, 2017, plaintiff filed this motion for a preliminary injunction, seeking to enjoin the U.S. commercialization of the QFT-Plus until after the trial, which is scheduled to begin on January 16, 2018. The scope of the injunction sought has now been narrowed to prohibiting the use of the one-tube option by new customers.
The purpose of a preliminary injunction is to preserve the relative positions of the parties until a trial on the merits is held.
No individual factor is dispositive.
To establish likelihood of success on the merits, a patentee must demonstrate that it will likely prove that its patent was infringed and is valid.
Defendants contend that plaintiffs have not demonstrated a likelihood of success on the merits because: 1) the asserted claims are unpatentable under Section 101, 2) the asserted claims are invalid as anticipated and/or obvious under Sections 102 and 103, 3) Oxford cannot overcome Qiagen's written description defense, and 4) Qiagen's product does not infringe. The arguments will be considered
Federal law determines what inventions are patentable.
The court applies a two-step process for determining whether the subject matter of an invention is patentable.
First, the court determines whether the patent claims are "directed" to one of the patent-ineligible concepts.
In step two, the court asks, "[w]hat else is there in the claims before us?"
At the preliminary injunction stage, the trial court "does not resolve the validity question," but rather considers the persuasiveness of the challenger's argument, recognizing that not all evidence is available.
Defendants assert that the '898 Patent, Claim 17 is unpatentable because it reflects the same natural peptides that had been previously encountered by the T cells. Defendants rely on deposition testimony of the inventor, Dr. Lalvani:
This exchange, defendants contend, establishes that the plaintiff's claims in its complaint are not true and that the claims are drawn to ineligible subject matter. This Court denied defendants' motion to dismiss plaintiff's "kit" claims, reasoning that the kit peptides, as alleged, are "chemically different than the naturally occurring amino acids in the ESAT-6 protein." Dr. Lalvani's testimony, defendants contend, vindicates the Magistrate Judge's initial finding that the kit peptides are found in nature and have not been changed beyond the act of isolation from the larger ESAT-6.
Plaintiff counters that this exchange is presented out of context, and that elsewhere Dr. Lalvani testified that the relevant peptide is
This Court finds plaintiff's explanation persuasive.
Dr. Lalvani identified an epitope that exists naturally in the ESAT-6 protein. He then synthesized a peptide that contains that epitope and used the synthesized peptide in his experiments. Dr. Lalvani created something new with synthesized peptides and simply because a particular peptide contains a naturally occurring epitope that does not change this analysis.
Discoveries that possess "markedly different characteristics" from any entity found in nature may be patented.
Defendants further submit that claim 1 of the '211 patent, also known as the "method" claim, is invalid because Oxford did not create an inventive concept. Defendant asserts that the plaintiff's allegations, upon which this Court relied in denying the motion to dismiss, have proven to be false. Those allegations were 1) that plaintiff's method improved on the existing testing procedures for tuberculosis and 2) that there was no
This Court is not convinced by defendants' common use theory. When Oxford
On the issue of validity under Section 101, plaintiff appears likely to prevail on the merits.
Section 102(b) of the Patent Act provides that an invention is not patentable if it is
To prove invalidity by anticipation, the movant must show that "every element and limitation of the claim" was described in a single prior art reference, placing a person of ordinary skill in possession of the invention.
Differences between the prior art reference and claimed invention, no matter how small, implicate obviousness, and not anticipation.
Pursuant to § 103 of the Patent Act, a patent is invalid for obviousness if
35 U.S.C. § 103(a).
Defendants contend that plaintiff's claims are invalid because they are anticipated under Section 102 and obvious under Section 103. Specifically, they allege that two studies (Melendez-Herrada 1997 and Pathan 1997) anticipate both asserted claims.
Qiagen notes that several groups of researchers investigated T-cell response to ESAT-6 peptides prior to plaintiff's priority date. Although defendants have demonstrated that some researchers were actively investigating the development, they have not shown that the claimed invention as a whole would have been obvious. Even if those skilled in the art were
"Mere identification in the prior art of each element is insufficient" to establish obviousness.
Finally, this Court notes that Qiagen presented similar, if not identical, arguments with respect to anticipation and obviousness
Plaintiff is likely to prove that its patent claims were not anticipated or obvious.
To satisfy the written description requirement, the patent's description must "clearly allow persons of ordinary skill in the art to recognize that [the inventor] invented what is claimed."
Defendants maintain that Oxford's claim, construed as peptides "comprising SEQ ID. NO. 1" encompasses a genus of all peptides comprising SEQ ID. NO. 1. According to defendants, one skilled in the art would not know whether a particular peptide would be effective but that argument is unpersuasive.
First, the SEQ ID. NO. 1 designation constitutes a "common structural feature" that satisfies the written description requirement. Second, the Court notes that the PTO reviewed Oxford's patents for adequate written description as part of the application process and found the description satisfactorily clear.
Plaintiff is likely to be successful in proving that its patents are not invalid for a lack of written description.
Defendants contend that the QFT-Plus does not infringe Oxford's patents. First, they assert that the QFT-Plus does not "diagnose" tuberculosis infection. Second, they suggest that the
On the first issue, Qiagen's claim that the QFT-Plus does not actually "diagnose" is belied by the first page of its QFT-Plus package insert which states that the product is "[f]or
Qiagen is not likely to be successful in avoiding Oxford's claims of infringement.
Plaintiffs seeking injunctive relief must make a "clear showing" that substantial and immediate irreparable harm is "likely" in the absence of an injunction.
Plaintiff's quintessential contention, both in briefing and at oral argument, is that Oxford will suffer an irreparable injury of lost customers if an injunction is not entered. Customers in the medical sector,
Two major considerations stand is plaintiff's way.
First, plaintiff's motion has come at a conspicuously late date in this litigation. Oxford knew in January, 2017, that Qiagen was about to apply for FDA approval of the QFT-Plus and planned to launch the product in the second half of 2017. It waited until August 30, 2017, to file its motion for a preliminary injunction and its explanation for the delay is underwhelming.
Plaintiff contends that it waited this long because defendant asked it to. Such a contention is dubious. In response to plaintiff's discovery inquiry, counsel for defendant stated that
Plaintiff characterizes that statement as Qiagen "urg[ing] Oxford to wait until FDA approval" before filing its motion for preliminary injunction. Such a reading is a stretch.
Oxford had reason to know in January, 2017, that the QFT-Plus would be "rolled-out" in the second half of this year. Its delay until late August, 2017, counsels against its claim of urgency.
Second and perhaps more important to the question of irreparable harm, plaintiff has not established that money damages would be insufficient. "Evidence of potential lost sales alone does not demonstrate irreparable harm."
If plaintiff prevails at trial, it is likely that the infringing aspects of the QFT-Plus will be permanently enjoined. Oxford does not proffer evidence of how, between now and the trial, irreparable harm may occur. In fact, its own financial projections, such as its 2016 U.S. Commercial Strategy Revenue Projection, forecast the anticipated monetary harm that an infringing QFT-Plus product would cause. To Oxford, it was quantifiable.
Oxford may well lose some customers to Qiagen due to the QFT-Plus and defendant's assurances to the contrary are cold comfort. Qiagen's "service/kit" contrast is a distinction without a difference because both target the same TST customers and Qiagen's forecast that no customers would
As a final matter, this Court rejects Qiagen's causal nexus arguments. Defendants aver that the single-tube option is not provided for in Oxford's claims and therefore no "causal nexus" between alleged infringement and harm exists.
A patentee need not demonstrate that a "patented feature is the one and only reason for consumer demand."
Plaintiff's shortcomings with respect to proof of irreparable harm do not include its failure to demonstrate a causal nexus.
Nevertheless, Oxford has not made a "clear showing" that the launch of Qiagen's QFT-Plus product with the single tube option will cause immediate and long-term harm that cannot be quantified and remedied by monetary damages. Its delay in bringing this motion impugns its claim of exigency. More importantly, its own internal analysis indicates that the harm can be quantified and remedied by money damages.
This factor weighs in favor of defendant.
To assess the balance of hardships, the court weighs the magnitude of the threatened injury to the patent holder, considered in light of the strength of the success on the merits showing, against the harm that a preliminary injunction may inflict on the accused infringer.
Plaintiff alleges that the potential harm to it as a relatively small, single product company is grave. The harm to the defendant, plaintiff avers, is a non-critical monetary loss. Defendant counters that it has invested substantial resources in the QFT-Plus. In addition, it claims, little harm can befall Oxford during the four months in question.
Oxford Immunotec is essentially a one-product company, with that one product being the T-SPOT.TB test. That product accounted for more than 90% of Oxford's total revenue of $86 million in 2016. Qiagen, in contrast, sells over 500 core products. Approximately 10% of Qiagen's one billion plus revenue for 2016 resulted from sales of QuintiFERON products.
Defendants note that they are prioritizing the transition of existing companies from their QFT-Gold product to their QFT-Plus. This process will take six to twelve months, they explain, during which time Oxford need not worry about Qiagen pursuing the skin test market. Although that may be Qiagen's priority, it does not follow that Qiagen will sit idly by as Oxford pursues the skin test market.
If an injunction is imposed, Qiagen risks a four-month delay in transitioning existing customers whereas, in the absence of injunctive relief, Oxford risks the loss of a substantial portion of the market for its
Finally, the Court considers the impact of granting or denying an injunction on the public interest. In considering this impact, the court "should focus on whether a critical public interest would be injured by the grant of injunctive relief."
Defendants stress that an injunction would remove a useful tool from healthcare providers, harming the public health. Plaintiff relies on the public interest in patent rights. There are surely off-setting public interests at play in this case and thus it is not a controlling factor.
The several factors to be considered with respect to granting a preliminary injunction do not weigh heavily in either party's favor in this case. Therefore, because preliminary injunctive relief is a "drastic and extraordinary remedy that is not to be routinely granted,"
In accordance with the foregoing, plaintiff's motion for preliminary injunction (Docket No. 195) is DENIED.