Navigating Article III in Patent Disputes: Lessons from Allgenesis Biotherapeutics v. Cloudbreak Therapeutics

In November 2023’s legal round-up, a significant case that drew the attention of the legal community was Allgenesis Biotherapeutics Inc. v. Cloudbreak Therapeutics, LLC, Appeal No. 2022-1706 heard on November 7, 2023.

The Federal Circuit in this case dismissed the appellant Allgenesis’s appeal of an inter partes review decision concerning Cloudbreak’s U.S. Patent No. 10,149,820. The court upheld the patent’s claims as patentable, as Allgenesis could not demonstrate a “case or controversy” under Article III sufficient to confer standing to maintain its appeal.

The significant take away for legal departments in multinational corporations and global law firms is that in patent disputes, it’s not just about the patent’s validity. Establishing a “case or controversy” under Article III is also crucial. Essentially, the party challenging the patent must show that it has suffered or will suffer injury or harm by the patent. In this case, Allgenesis Biotherapeutics failed to do so, leading to the dismissal of its appeal.

The implications of this case may be significant for future patent disputes, and will likely influence strategies employed in such contexts. Legal advisors would be well-placed to carefully assess their client’s legal standing before initiating legal challenges in patent disputes to avoid costly and fruitless litigation.