Best Carpet Values, Inc. v. Google LLC

Court: US Court of Appeals for the Ninth Circuit

Docket: 22-15899

Opinion Date: January 11, 2024

Areas of Law: Communications Law, Copyright, Intellectual Property, Internet Law

In the case before the United States Court of Appeals for the Ninth Circuit, Best Carpet Values, Inc. and Thomas D. Rutledge initiated a class action lawsuit against Google, LLC. The plaintiffs argued that Google, through its Search App on Android phones, displayed their websites in a way that occupied valuable space for which Google should have paid. They contended that Google received all the benefits of advertising from the use of that space. The plaintiffs made state-law claims for trespass to chattels, implied-in-law contract and unjust enrichment, and violation of California's Unfair Competition Law.

The court reviewed questions certified by the district court for interlocutory review. In response to the first question, the court ruled that the website copies displayed on a user's screen should not be protected as chattel, concluding that a cognizable property right did not exist in a website copy. As a result, the plaintiffs’ trespass to chattels claim was dismissed.

Addressing the third question, the court held that website owners cannot invoke state law to control how their websites are displayed on a user's screen without being preempted by federal copyright law. The court determined that the manner in which the plaintiffs’ websites were displayed fell within the subject matter of federal copyright law. It also found that the rights asserted by the plaintiffs’ implied-in-law contract and unjust enrichment claim were equivalent to the rights provided by federal copyright law. Thus, the plaintiffs’ state-law claim was preempted by federal copyright law.

Given these findings, the court did not address the other certified questions. The Ninth Circuit concluded that the district court erred in denying Google’s motion to dismiss and remanded the case with instructions to dismiss.

SILBERSHER V. VALEANT PHARMACEUTICALS INT'L

Court: US Court of Appeals for the Ninth Circuit

Docket: 20-16176

Opinion Date: January 5, 2024

Areas of Law: Government & Administrative Law, Intellectual Property

In this case, Zachary Silbersher, a relator, filed a qui tam action under the False Claims Act against Valeant Pharmaceuticals International, Inc. and others. Silbersher alleged that Valeant fraudulently obtained patents related to a drug and asserted these patents to stifle competition from generic drugmakers. He also claimed that Valeant defrauded the federal government by charging an artificially inflated price for the drug while falsely certifying that its price was fair and reasonable.

The district court dismissed Silbersher’s action under the False Claims Act’s public disclosure bar, ruling that his allegations had already been publicly disclosed. The United States Court of Appeals for the Ninth Circuit reversed the decision of the district court.

The Court of Appeals held that an inter partes patent review proceeding, in which the Patent and Trademark Office invalidated one of Valeant's patents, did not qualify as a public disclosure under the False Claims Act because the government was not a party to that proceeding, and its primary function was not investigative. The Court of Appeals also held that the allegations in Silbersher's qui tam action were not "substantially the same" as the information that had been publicly disclosed. None of the qualifying public disclosures made a direct claim that Valeant committed fraud, nor did they disclose a combination of facts sufficient to permit a reasonable inference of fraud. Therefore, the public disclosure bar did not apply. The case was remanded for further proceedings.

PACIFIC BIOSCIENCES OF CALIFORNIA, INC. v. PERSONAL GENOMICS TAIWAN, INC.

Court: US Court of Appeals for the Federal Circuit

Docket: 22-1410

Opinion Date: January 9, 2024

Areas of Law: Intellectual Property, Patents

The United States Court of Appeals for the Federal Circuit affirmed the decisions from the United States Patent and Trademark Office, Patent Trial and Appeal Board in a patent dispute between Pacific Biosciences of California, Inc. (PacBio) and Personal Genomics Taiwan, Inc. (PGI). The core dispute revolved around the interpretation of the term "identifying a single biomolecule" in the claims of PGI’s U.S. Patent No. 7,767,441. The Board interpreted the term to mean that the apparatus must be capable of ascertaining the identity of one single, individual biomolecule by examining only that biomolecule. On appeal, the court affirmed the Board’s interpretation. PacBio challenged the Board’s finding that the Hassibi reference did not disclose “identifying a single biomolecule” under the claim construction, while PGI challenged the Board’s finding that the Choumane reference did disclose “identifying a single biomolecule” under that construction. The court found substantial evidence supporting the Board’s findings for both references and affirmed the decisions. PacBio and PGI bear their own costs.