FRCP 19(a) Cannot Be Used to Involuntarily Join an Unwilling Patent Co­Owner to Infringement Litigation

Jun 13, 2014

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Following the summary judgment ruling, STC and Intel cross­moved on the issue of standing concerning Sandia’s post­2011 Assignment ownership of the ’998 patent. Unfortunately for STC, Sandia’s refusal to join the lawsuit resulted in dismissal for lack of standing under the holding in Ethicon, Inc. v. United States Surgical Corp., 135 F.3d 1456 (Fed. Cir. 1998) (“as a matter of substantive patent law, all co­owners must ordinarily consent to join as plaintiffs in an infringement suit” and “one co­owner has the right to impede the other co­owner’s ability to sue infringers by refusing to voluntarily join in such a suit”). On appeal, STC argued that it should have been allowed to join Sandia involuntarily under Federal Rule of Civil Procedure 19(a) because the holding in Ethicon does not address or preclude Rule 19(a) joinder. The Federal Circuit emphatically disagreed stating: “To remove any doubt, this court holds that the right of a patent co­owner to impede an infringement suit brought by another co­owner is a substantive right that trumps the procedural rule of involuntary joinder under Rule 19(a).”

STC.UNM v. Intel Corp., 2013­1241 (Fed Cir. June 6, 2014) [Rader (opinion), Newman (dissenting), Dyk]

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