Federal Circuit Clarifies the On-Sale Bar Under the AIA: No Public Disclosure of the Invention Is Required if the Existence of the Sale Is Public

May 8, 2017

Reading Time : 2 min

More than one year before the filing date of the patents, Helsinn entered into a purchase agreement with a third party to distribute a chemotherapy-related drug. Certain aspects of the agreement were made public in Securities and Exchange Commission filings, but the details of the invention were redacted. Helsinn was eventually granted four patents on the chemotherapy-related drug, including one post-AIA patent (the “’219 patent”). The district court, however, held that, although there was a sale, it did not trigger the on-sale bar on the ’219 patent because § 102 under the AIA now “requires a public sale or offer for sale of the claimed invention.”1  The district court stated that, to be “public” under the AIA, the sale must publicly disclose the details of the patented invention.

The Federal Circuit disagreed and reversed the decision. First, the court recognized that there were no statements by Congress that, under the AIA, “the sale or offer documents must themselves publicly disclose the details of the claimed invention before the critical date.” Notably, even if Congress intended to overrule “secret or confidential” sales, it discussed only cases that were “concerned entirely with whether the existence of the sale or offer was public,” not whether the invention itself was publicly disclosed. The Federal Circuit held that by including “otherwise available to the public” in the AIA, Congress intended that “the public sale itself would put the patented product in the hands of the public.” Here, it was undisputed that the existence of Helsinn’s purchase agreement (i.e., the sale) was public, which the Federal Circuit found met any “public” requirement under the AIA.

Second, the Federal Circuit emphasized that “[r]equiring such a disclosure as a condition of the on-sale bar would work as a foundational change in the theory of the statutory on-sale bar.” The court cited a litany of its cases that explicitly rejected any “requirement that the details of the invention be disclosed in the terms of sale.” The court then relied on the primary purpose of the on-sale bar: “publically offering a product for sale that embodies the claimed invention that places it in the public domain, regardless of when or whether actual delivery occurs.”

Ultimately, the Federal Circuit declined to “decide this case more broadly than necessary.” Notably, the court concluded that, “after the AIA, if the existence of the sale is public, the details of the invention need not be publicly disclosed in the terms of the sale.” The court refused to “find that distribution agreements will always be invalidating under § 102(b),” but instead found that the particular supply agreement at issue was invalidating.                    

Helsinn Healthcare S.A. v. Teva Pharm. USA, Inc., No. 2016-1284, 2016-1787 (Fed. Cir. May 1, 2017)


1 On the three pre-AIA patents, the district court held that there was a sale, but that the sale did not trigger the on-sale bar because the invention was not “ready for patenting” at the time of the sale.

Share This Insight

Previous Entries

IP Newsflash

June 6, 2025

In a precedential opinion, the Federal Circuit definitively held that the Patent Trial and Appeal Board has jurisdiction over IPRs that concern expired patents.

...

Read More

IP Newsflash

June 6, 2025

In a patent infringement litigation in the U.S. District Court for the Eastern District of Texas, Judge Rodney Gilstrap denied a joint motion to stay the litigation pending resolution of inter partes review when it was uncertain that all defendants would be bound by the statutory estoppel provision of 35 U.S.C. § 315(e).

...

Read More

IP Newsflash

May 30, 2025

A district court recently dismissed a patent infringement complaint for improper venue under 28 U.S.C. § 1400(b), finding that the storage and distribution of products from an Amazon warehouse was not sufficient to establish that warehouse as a regular and established place of business in the district.

...

Read More

IP Newsflash

May 27, 2025

The Federal Circuit affirmed a District of Delaware finding of non-infringement in an ANDA litigation due to the patentee’s clear and unmistakable disavowal of claim scope during prosecution. Specifically, the court held that statements made during prosecution of a parent application before the asserted claims were allowed amounted to a prosecution disclaimer that extended to subsequent patents in the family. In reaching this conclusion, the court rejected an attempt by the patentee to resurrect the claim scope through a unilateral, self-serving statement made in later applications in the family.

...

Read More

IP Newsflash

May 13, 2025

The Federal Circuit recently affirmed a district court’s holding that patent term extension (PTE) for a reissued patent was properly based on the issue date of the original patent and not that of the reissued patent. The Federal Circuit concluded that, where both the original and reissued patents claimed a drug product under regulatory review, using the issue date of the original patent to calculate PTE comports with both the purpose of the Hatch-Waxman Act and the related statutory context.

...

Read More

IP Newsflash

May 12, 2025

The Patent Trial and Appeal Board recently declined to institute a petition for IPR that was filed on the same day that the petitioner filed another petition challenging the same claims of the same patent. The board was not persuaded by petitioner’s arguments that a second petition was needed due to alleged claim construction issues or the number, length or scope differences of the challenged claims.

...

Read More

IP Newsflash

May 9, 2025

The USPTO Director vacated the board’s decision to institute inter partes review based on an erroneous application of the Fintiv factors. Specifically, the Director found that the board placed too much emphasis on Petitioner’s Sotera stipulation, and not enough emphasis on the investment in the parallel litigation. Weighing the factors as a whole, the Director determined that institution should be denied.

...

Read More

IP Newsflash

May 9, 2025

In an institution decision following the USPTO’s withdrawal of its Fintiv Memo, the board addressed discretionary denial of an IPR under Fintiv in view of a parallel ITC investigation. The board noted it would not consider the now-rescinded June 2022 memo from then-director Vidal which instructed that the PTAB would not deny institution of an IPR or PGR under Fintiv when the request is based on a parallel ITC investigation. The board conducted a Fintiv analysis in view of the ITC investigation, but ultimately determined that discretionary denial was not warranted in this particular situation.

...

Read More

© 2025 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.