Microsoft Corp. v. i4i Ltd. Partnership
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Full Opinion
delivered the opinion of the Court.
Under § 282 of the Patent Act of 1952, â[a] patent shall be presumed validâ and â[t]he burden of establishing invalidity of a patent or any claim thereof shall rest on the party asserting such invalidity.â 35 U. S. C. §282. We consider whether § 282 requires an invalidity defense to be proved by clear and convincing evidence. We hold that it does.
I
A
Pursuant to its authority under the Patent Clause, U. S. Const., Art. I, §8, cl. 8, Congress has charged the United States Patent and Trademark Office (PTO) with the task of examining patent applications, 35 U. S. C. § 2(a)(1), and issu
Once issued, a patent grants certain exclusive rights to its holder, including the exclusive right to use the invention during the patentâs duration. To enforce that right, a patentee can bring a civil action for infringement if another person âwithout authority makes, uses, offers to sell, or sells any patented invention, within the United States.â § 271(a); see also §281.
Among other defenses under §282 of the Patent Act of 1952 (1952 Act), an alleged infringer may assert the invalidity of the patent â that is, he may attempt to prove that the patent never should have issued in the first place. See §§ 282(2), (3). A defendant may argue, for instance, that the claimed invention was obvious at the time and thus that one of the conditions of patentability was lacking. See § 282(2); see also § 103. âWhile the ultimate question of patent validity is one of law,â Graham v. John Deere Co. of Kansas City, 383 U. S. 1, 17 (1966) (citing Great Atlantic & Pacific Tea Co. v. Supermarket Equipment Corp., 340 U. S. 147, 155 (1950) (Douglas, J., concurring)); see post, at 114 (Breyer, J., con
In asserting an invalidity defense, an alleged infringer must contend with the first paragraph of §282, which provides that â[a] patent shall be presumed validâ and â[t]he burden of establishing invalidity . .. rest[s] on the party asserting such invalidity.â
â[Section] 282 creates a presumption that a patent is valid and imposes the burden of proving invalidity on the attacker. That burden is constant and never changes and is to convince the court of invalidity by clear evidence.â 725 F. 2d, at 1360.
B
Respondents i4i Limited Partnership and Infrastructures for Information Inc. (collectively, i4i) hold the patent at issue in this suit. The i4i patent claims an improved method for editing computer documents, which stores a documentâs content separately from the metacodes associated with the documentâs structure. In 2007, i4i sued petitioner Microsoft Corporation for willful infringement, claiming that Microsoftâs manufacture and sale of certain Microsoft Word products infringed i4iâs patent. In addition to denying infringement, Microsoft counterclaimed and sought a declaration that i4iâs patent was invalid and unenforceable.
Specifically and as relevant here, Microsoft claimed that the on-sale bar of § 102(b) rendered the patent invalid, pointing to i4iâs prior sale of a software program known as S4. The parties agreed that, more than one year prior to the filing of the i4i patent application, i4i had sold S4 in the United States. They presented opposing arguments to the jury, however, as to whether that software embodied the invention claimed in i4iâs patent. Because the softwareâs source code had been destroyed years before the commencement of this litigation, the factual dispute turned largely on trial testimony by S4âs two inventors â also the named inventors on the i4i patent â both of whom testified that S4 did not practice the key invention disclosed in the patent.
Relying on the undisputed fact that the S4 software was never presented to the PTO examiner, Microsoft objected to i4dâs proposed instruction that it was required to prove its invalidity defense by clear and convincing evidence. In
ââMicrosoftâs burden of proving invalidity and unen-forceability is by clear and convincing evidence. However, Microsoftâs burden of proof with regard to its defense of invalidity based on prior art that the examiner did not review during the prosecution of the patent-in-suit is by preponderance of the evidence.ââ Ibid.
Rejecting the hybrid standard of proof that Microsoft advocated, the District Court instructed the jury that âMicrosoft has the burden of proving invalidity by clear and convincing evidence.â App. to Pet. for Cert. 195a.
The jury found that Microsoft willfully infringed the i4d patent and that Microsoft failed to prove invalidity due to the on-sale bar or otherwise. Denying Microsoftâs post-trial motions, the District Court rejected Microsoftâs contention that the court improperly instructed the jury on the standard of proof. The Court of Appeals for the Federal Circuit affirmed.
According to Microsoft, a defendant in an infringement action need only persuade the jury of an invalidity defense by a preponderance of the evidence. In the alternative, Microsoft insists that a preponderance standard must apply at least when an invalidity defense rests on evidence that was
A
Where Congress has prescribed the governing standard of proof, its choice controls absent âcountervailing constitutional constraints.â Steadman v. SEC, 450 U. S. 91, 95 (1981). The question, then, is whether Congress has made such a choice here.
As stated, the first paragraph of §282 provides that â[a] patent shall be presumed validâ and â[t]he burden of establishing invalidity of a patent or any claim thereof shall rest on the party asserting such invalidity.â Thus, by its express terms, § 282 establishes a presumption of patent validity, and it provides that a challenger must overcome that presumption to prevail on an invalidity defense. But, while the statute explicitly specifies the burden of proof, it includes no express articulation of the standard of proof.
Our decision in RCA, 293 U. S. 1, is authoritative. There, tracing nearly a century of ease law from this Court and others, Justice Cardozo wrote for a unanimous Court that âthere is a presumption of validity, a presumption not to be overthrown except by clear and cogent evidence.â Id., at 2. Although the âforceâ of the presumption found âvarying expressionâ in this Court and elsewhere, id., at 7, Justice Cardozo explained, one âcommon core of thought and truthâ unified the decisions:
â[O]ne otherwise an infringer who assails the validity of a patent fair upon its face bears a heavy burden of persuasion, and fails unless his evidence has more than a dubious preponderance. If that is true where the assailant connects himself in some way with the title of the true inventor, it is so a fortiori where he is a stranger to the invention, without claim of title of his own. If it is*102 true where the assailant launches his attack with evidence different, at least in form, from any theretofore produced in opposition to the patent, it is so a bit more clearly where the evidence is even verbally the same.â Id., at 8 (citation omitted).5
The common-law presumption, in other words, reflected the universal understanding that a preponderance standard of proof was too âdubiousâ a basis to deem a patent invalid. Ibid.; see also id., at 7 (â[A] patent ... is presumed to be valid until the presumption has been overcome by convincing evidence of errorâ).
Thus, by the time Congress enacted §282 and declared that a patent is âpresumed valid,â the presumption of patent validity had long been a fixture of the common law. According to its settled meaning, a defendant raising an invalidity defense bore âa heavy burden of persuasion,â requiring proof of the defense by clear and convincing evidence. Id., at 8. That is, the presumption encompassed not only an allocation of the burden of proof but also an imposition of a heightened standard of proof. Under the general rule that a common-law term comes with its common-law meaning, we cannot conclude that Congress intended to âdropâ the heightened standard of proof from the presumption simply because § 282 fails to reiterate it expressly. Neder v. United States, 527
We recognize that it may be unusual to treat a presumption as alone establishing the governing standard of proof. See, e. g., J. Thayer, Preliminary Treatise on Evidence at the Common Law 336-337 (1898) (hereinafter Thayer) (âWhen ... we read that the contrary of any particular presumption must be proved beyond a reasonable doubt, ... it is to be recognized that we have something superadded to the rule of presumption, namely, another rule as to the amount of evidence which is needed to overcome the presumptionâ). But given how judges, including Justice Cardozo, repeatedly understood and explained the presumption of patent validity, we cannot accept Microsoftâs argument that Congress used the words âpresumed validâ to adopt only a procedural device for âshifting the burden of production,â or for âshifting both the burden of production and the burden of persuasion.â Brief for Petitioner 21-22 (emphasis deleted). Whatever the significance of a presumption in the abstract, basic principles of statutory construction require us to assume that Congress meant to incorporate âthe cluster of ideasâ attached to the common-law term it adopted. Beck, 529 U. S., at 501 (internal quotation marks omitted). And RCA leaves no doubt that attached to the common-law presumption of patent va
Resisting the conclusion that Congress adopted the heightened standard of proof reflected in our pre-1952 cases, Microsoft contends that those cases applied a clear-and-convincing standard of proof only in two limited circumstances, not in every case involving an invalidity defense. First, according to Microsoft, the heightened standard of proof applied in cases âinvolving oral testimony of prior invention,â simply to account for the unreliability of such testimony. Brief for Petitioner 25. Second, Microsoft tells us, the heightened standard of proof applied to âinvalidity challenges based on priority of invention,â where that issue had previously been litigated between the parties in PTO proceedings. Id., at 28.
Squint as we may, we fail to see the qualifications that Microsoft purports to identify in our cases. They certainly make no appearance in RCAs explanation of the presumption of patent validity. RCA simply said, without qualification, âthat one otherwise an infringer who assails the validity of a patent fair upon its face bears a heavy burden of persuasion, and fails unless his evidence has more than a dubious preponderance.â 293 U. S., at 8; see also id., at 7 (âA patent regularly issued, and even more obviously a patent issued after a hearing of all the rival claimants, is pre
Furthermore, we cannot agree that Microsoftâs proposed limitations are inherent â even if unexpressed â in our pre-1952 cases. As early as 1874 we explained that the burden of proving prior inventorship ârests upon [the defendant], and every reasonable doubt should be resolved against him,â without tying that rule to the vagaries and manipulability of oral testimony. Coffin v. Ogden, 18 Wall. 120, 124 (1874). And, more than 60 years later, we applied that rule where the evidence in support of a prior-use defense included documentary proof â not just oral testimony â in a case presenting no priority issues at all. See Smith, 301 U. S., at 221, 233. Thus, even if Congress searched for some unstated limitations on the heightened standard of proof in our cases, it would have found none.
But the canon against superfluity assists only where a competing interpretation gives effect â 'to every clause and word of a statute.ââ Duncan v. Walker, 533 U. S. 167, 174 (2001) (quoting United States v. Menasche, 348 U. S. 528, 538-539 (1955)); see Bruesewitz v. Wyeth LLC, 562 U. S. 223, 236 (2011). Here, no interpretation of § 282 â including the two alternatives advanced by Microsoft â avoids excess language. That is, if the presumption only âallocates the bur
Reprising the more limited argument that it pressed below, Microsoft argues in the alternative that a preponderance standard must at least apply where the evidence before the factfinder was not before the PTO during the examination process. In particular, it relies on KSR Intâl Co. v. Teleflex Inc., 550 U. S. 398 (2007), where we observed that, in these circumstances, âthe rationale underlying the presumption-that the PTO, in its expertise, has approved the claim-seems much diminished.â Id., at 426.
That statement is true enough, although other rationales may animate the presumption in such circumstances. See The Barbed Wire Patent, 143 U. S. 275, 292 (1892) (explaining that because the patentee âfirst published this device; put it upon record; made use of it for a practical purpose; and gave it to the public ... doubts . .. concerning the actual inventor ... should be resolved in favor of the patenteeâ); cf. Brief for United States as Amicus Curiae 33 (arguing that even when the administrative correctness rationale has no relevance, the heightened standard of proof âserves to protect the patent holderâs reliance interestsâ in disclosing an invention to the public in exchange for patent protection). The question remains, however, whether Congress has specified the applicable standard of proof. As established, Congress did just that by codifying the common-law presumption of patent validity and, implicitly, the heightened standard of proof attached to it.
Our pre-1952 cases never adopted or endorsed the kind of fluctuating standard of proof that Microsoft envisions. And they do not indicate, even in dicta, that anything less than a
Nothing in §282âs text suggests that Congress meant to depart from that understanding to enact a standard of proof that would rise and fall with the facts of each case. Indeed, had Congress intended to drop the heightened standard of proof where the evidence before the jury varied from that before the PTO â and thus to take the unusual and impractical step of enacting a variable standard of proof that must itself be adjudicated in each case, cf. Santosky v. Kramer,
To be sure, numerous Courts of Appeals in the years preceding the 1952 Act observed that the presumption of validity is âweakenedâ or âdissipatedâ in the circumstance that the evidence in an infringement action was never considered by the PTO. See Jacuzzi Bros., Inc. v. Berkeley Pump Co., 191 F. 2d 632, 634 (CA9 1951) (âlargely dissipatedâ); H. Schindler & Co. v. C. Saladino & Sons, Inc., 81 F. 2d 649, 651 (CA1 1936) (âweakenedâ); Gillette Safety Razor Co. v. Cliff Weil Cigar Co., 107 F. 2d 105, 107 (CA4 1939) (âgreatly weakenedâ); Butler Mfg. Co. v. Enterprise Cleaning Co., 81 F. 2d 711, 716 (CA81936) (âweakenedâ). But we cannot read these cases to hold or even to suggest that a preponderance standard would apply in such circumstances, and we decline to impute such a reading to Congress. Instead, we understand these cases to reflect the same eommonsense principle that the Federal Circuit has recognized throughout its existence â namely, that new evidence supporting an invalidity defense may âcarry more weightâ in an infringement action than evidence previously considered by the PTO, American Hoist, 725 F. 2d, at 1360. As Judge Rich explained:
*111 âWhen new evidence touching validity of the patent not considered by the PTO is relied on, the tribunal considering it is not faced with having to disagree with the PTO or with deferring to its judgment or with taking its expertise into account. The evidence may, therefore, carry more weight and go further toward sustaining the attackerâs unchanging burden.â Ibid, (emphasis deleted).
See also SIBIA Neurosciences, Inc. v. Cadus Pharmaceutical Corp., 225 F. 3d 1349, 1355-1356 (CA Fed. 2000) (â[T]he alleged infringerâs burden may be more easily carried because of th[e] additional [evidence]â); Group One, Ltd. v. Hallmark Cards, Inc., 407 F. 3d 1297, 1306 (CA Fed. 2005) (similar).
Simply put, if the PTO did not have all material facts before it, its considered judgment may lose significant force. Cf. KSR, 550 U. S., at 427. And, concomitantly, the challengerâs burden to persuade the jury of its invalidity defense by clear and convincing evidence may be easier to sustain. In this respect, although we have no occasion to endorse any particular formulation, we note that a jury instruction on the effect of new evidence can, and when requested, most often should, be given. When warranted, the jury may be instructed to consider that it has heard evidence that the PTO had no opportunity to evaluate before granting the patent. When it is disputed whether the evidence presented to the jury differs from that evaluated by the PTO, the jury may be instructed to consider that question. In either case, the jury may be instructed to evaluate whether the evidence before it is materially new, and if so, to consider that fact when determining whether an invalidity defense has been proved by clear and convincing evidence. Cf., e. g., Mendenhall v. Cedarapids, Inc., 5 F. 3d 1557, 1563-1564 (CA Fed. 1993); see also Brief for International Business Machines Corp. as Amicus Curiae 31-37. Although Microsoft emphasized in its argument to the jury that S4 was never considered by
III
The parties and their amici have presented opposing views as to the wisdom of the clear-and-convincing-evidenee standard that Congress adopted. Microsoft and its amici contend that the heightened standard of proof dampens innovation by unduly insulating âbadâ patents from invalidity challenges. They point to the high invalidation rate as evidence that the PTO grants patent protection to too many undeserving âinventions.â They claim that inter partes reexamination proceedings before the PTO cannot fix the problem, as some grounds for invalidation (like the on-sale bar at issue here) cannot be raised in such proceedings. They question the deference that the PTOâs expert determinations warrant, in light of the agencyâs resources and procedures, which they deem inadequate. And, they insist that the heightened standard of proof essentially causes juries to abdicate their role in reviewing invalidity claims raised in infringement actions.
For their part, i4i and its amici, including the United States, contend that the heightened standard of proof properly limits the circumstances in which a lay jury overturns the considered judgment of an expert agency. They claim that the heightened standard of proof is an essential component of the patent âbargain,â see Bonito Boats, Inc. v. Thunder Craft Boats, Inc., 489 U. S. 141, 150-151 (1989), and the incentives for inventors' to disclose their innovations to the public in exchange for patent protection. They disagree with the notion that the patent issuance rate is above the
We find ourselves in no position to judge the comparative force of these policy arguments. For nearly 30 years, the Federal Circuit has interpreted § 282 as we do today. During this period, Congress has often amended §282, see, e. g., Pub. L. 104-141, § 2, 109 Stat. 352; Pub. L. 98-417, § 203, 98 Stat. 1603; not once, so far as we (and Microsoft) are aware, has it even considered a proposal to lower the standard of proof, see Tr. of Oral Arg. 10. Moreover, Congress has amended the patent laws to account for concerns about âbadâ patents, including by expanding the reexamination process to provide for inter partes proceedings. See Optional Inter Partes Reexamination Procedure Act of 1999, 113 Stat. 1501A-567, codified at 35 U. S. C. § 311 et seq. Through it all, the evidentiary standard adopted in §282 has gone untouched. Indeed, Congress has left the Federal Circuitâs interpretation of § 282 in place despite ongoing criticism, both from within the Federal Government and without.
Congress specified the applicable standard of proof in 1952 when it codified the common-law presumption of patent va
* * *
For the reasons stated, the judgment of the Court of Appeals for the Federal Circuit is
Affirmed.
The Chief Justice took no part in the consideration or decision of this ease.
As originally enacted in 1952, the first paragraph of §282 read: âA patent shall be presumed valid. The burden of establishing invalidity of a patent shall rest on a party asserting it.â 66 Stat. 812. Congress has since amended §282, inserting two sentences not relevant here and modifying the language of the second sentence to that in the text.
Although not relevant here, the Court of Appeals modified the effective date of the permanent injunction that the District Court entered in favor of i4i. 598 F. 3d, at 863-864.
i4i contendo that Microsoft forfeited the firot argument by failing to raise it until its merits brief in this Court. The argument, however, is within the oeope of the question presented, and bccauoe we reject it on its merits, we need not decide whether it hao been preserved.
A preliminary word on terminology is in order. As we have said, â[t]he term âburden of proofâ is one of the âslipperiest members of the family of legal terms.ââ Schaffer v. Weast, 546 U. S. 49, 56 (2005) (quoting 2 J. Strong, McCormick on Evidence §342, p. 433 (5th ed.1999) (alteration omitted)), Historically, the term has encompassed two separate burdens: the "burden of persuasionâ (specifying which party loses if the evidence is balanced), as well as the âburden of productionâ (specifying which party must como forward with evidence at various stages in the litigation). 646 U. S., at 56. Adding more confusion, the term âburden of proofâ has occasionally boon used as a synonym for âstandard of proof.â E. g., Crogan v. Garner, 498 U. S. 279, 286 (1991).
Here we use âburden of proofâ interchangeably with âburden of persuasionâ to identify the party who must persuade the jury in its favor to prevail. We use the Lerni "standard of proofâ to refer to the degree of cortainty by which the factfinder must be persuaded of a factual conclusion to find in favor of the party bearing the burden of persuasion. See Addington v. Texas, 441 U. S. 418, 423 (1979). In other words, the term
Among other cases, Justice Cardozo cited Cantrell v. Wallick, 117 U. S. 689, 695-696 (1886) (âNot only is the burden of proof to make good this defence upon the party setting it up, but... every reasonable doubt should be resolved against himâ (internal quotation marks omitted)); Coffin v. Ogden, 18 Wall. 120, 124 (1874) (âThe burden of proof rests upon [the defendant], and every reasonable doubt should be resolved against himâ); The Barbed Wire Patent, 143 U. S. 275, 285 (1892) (â[This] principle has been repeatedly acted upon in the different circuitsâ); and Washburn v. Gould, 29 F. Cas. 312, 320 (No. 17,214) (CC Mass. 1844) (charging jury that âif it should so happen, that your minds are led to a reasonable doubt on the question, inasmuch as it is incumbent on the defen