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Mylan Laboratories Limited v. Union Of India And Others

Delhi High Court
Sep 30, 2019
Smart Summary (Beta)

Factual and Procedural Background

The petitioner, Mylan Laboratories Limited, filed a writ petition challenging the order dated 14th March 2019 passed by the Deputy Controller of Patents & Designs. The challenge arose because the Intellectual Property Appellate Board (IPAB) was not fully constituted and hence not functional at the time, specifically lacking a technical member. The petitioner’s pre-grant opposition to the grant of a patent relating to "Methods of Evaluating Peptide Mixtures" to Respondent No.3 was rejected by the Deputy Controller. The petitioner contended that the Deputy Controller did not adequately consider four prior arts relied upon in the opposition and failed to provide proper reasons for rejecting the opposition. During the pendency of the writ petition, the IPAB commenced hearings following judicial orders, but subsequently, the Chairperson of IPAB demitted office.

Legal Issues Presented

  1. Whether the order of the Deputy Controller rejecting the pre-grant opposition was passed without proper consideration of prior arts and adequate reasons.
  2. Whether the writ petition challenging the Deputy Controller’s order is maintainable given the existence of alternative remedies under the Patents Act, 1970.
  3. The scope and applicability of remedies available under the Patents Act for challenging patent grants, specifically the roles of pre-grant opposition, post-grant opposition, and revocation proceedings.

Arguments of the Parties

Petitioner’s Arguments

  • The petitioner filed a pre-grant opposition against the patent granted to Respondent No.3 concerning methods of evaluating peptide mixtures.
  • The petitioner cited four prior arts which, according to the petitioner, were not adequately considered by the Deputy Controller.
  • The rejection order treated all prior arts summarily in one paragraph without detailed reasoning, amounting to an improper order on merits.

Respondent No.3’s Arguments

  • Hearings on the pre-grant opposition were conducted in January 2019, with parties permitted to file written submissions.
  • The patent claims were amended in response to the prior arts cited by the petitioner.
  • The Deputy Controller examined the matter fully, including the amended claims, as evidenced by the detailed reasoning in the last four pages of the impugned order.
  • The order was well-reasoned and in accordance with law.
  • Cited precedent: Ucb Farchim Sa v. Cipla Ltd. & Ors., (2010) 167 DLT 459, which holds that no appeal or writ petition is maintainable against the order deciding the pre-grant opposition.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ucb Farchim Sa v. Cipla Ltd. & Ors., (2010) 167 DLT 459 Pre-grant opposition orders are not subject to appeal or writ petition; availability of alternative remedies under the Patents Act. The Court relied on this precedent to hold that the petitioner’s remedy lies in filing a post-grant opposition or revocation application rather than challenging the pre-grant opposition order via writ petition.
J. Mitra & Company v. Assistant Controller of Patents & Designs, (2008) 10 SCC 368 Clarification of remedies available after rejection of pre-grant opposition, including post-grant opposition and revocation under the Patents Act. The Court referred to this Supreme Court judgment to explain the statutory scheme and confirm the availability of subsequent remedies to the petitioner.
Indian Network for People with HIV/AIDS v. F. Hoffman-La Roche (Order dated 2nd March 2009 in SLP (C) No. 3522 of 2009) Permitted unsuccessful pre-grant opposer to participate in the post-grant opposition stage. The Court cited this order to support the principle that rejection of pre-grant opposition does not leave the opposer without remedy but allows participation in later stages.

Court's Reasoning and Analysis

The Court examined the impugned order passed by the Deputy Controller and found that the prior arts cited by the petitioner were considered, albeit briefly, and that the amended claims were also examined. The Deputy Controller concluded that none of the cited documents defined the claimed method of assaying, which relates specifically to detecting diethylamide moieties bound to the C-terminus of polypeptides in glatiramer acetate. The Court noted that the Deputy Controller’s order contained detailed reasoning, particularly in the concluding paragraphs, and thus the pre-grant opposition was decided on merits.

Relying on the statutory scheme under the Patents Act and the precedent in Ucb Farchim, the Court held that since the Act provides multiple remedies—pre-grant opposition, post-grant opposition, and revocation—the petitioner’s proper recourse after rejection of the pre-grant opposition is to file a post-grant opposition or an application for revocation. The Court emphasized that the High Court will decline to interfere where efficacious alternative statutory remedies exist.

Accordingly, the writ petition challenging the pre-grant opposition order was not maintainable. The Court permitted the petitioner to file a post-grant opposition within two months, which must be decided within one year. The parties were allowed to file additional documents and evidence at the relevant stage, and all rights and contentions were left open.

Holding and Implications

The writ petition challenging the Deputy Controller’s order rejecting the pre-grant opposition is not maintainable and is accordingly dismissed.

The petitioner is entitled to file a post-grant opposition within two months, which must be decided within one year. This decision enforces the statutory scheme under the Patents Act, emphasizing the availability of alternative remedies and limiting judicial interference at the pre-grant opposition stage. No new precedent was set; the ruling clarifies procedural propriety and directs the petitioner to pursue remedies as provided by law.

Show all summary ...

$~42 * IN THE HIGH COURT OF DELHI AT NEW DELHI th

Date of decision: 30 September, 2019

+ W.P.(C) 5571/2019 & CM APPL. 24540/2019

MYLAN LABORATORIES LIMITED ..... Petitioner Through: Ms. Rajeshwari H., Ms. Swapnil Gaur and Mr. Saif Rahman Ansari,

Advocates. (M:9897905254)

versus

UNION OF INDIA & ORS. ..... Respondents

Through: Mr. Gaurang Kanth, CGSC for R-1 &

2. (M:9999285585)

Mr. Varun Sharma, Advocate for R-3.

(M:8178551948)

CORAM:

JUSTICE PRATHIBA M. SINGH

Prathiba M. Singh, J. (Oral)

1. The present petition has been filed, challenging the order of the Deputy Controller of Patents & Designs (hereinafter, "Deputy Controller") dated 14thMarch, 2019 as the Intellectual Property Appellate Board (hereinafter, "IPAB") is not currently fully constituted and is not functional. The present writ petition was filed seeking setting aside of the impugned order as at that time, the technical member of IPAB had not been appointed. Thereafter, in view of judicial orders, the IPAB commenced its hearings. However, during the pendency of the present writ petition, the Chairperson of IPAB has demitted office.

2. The contention of Ms. Rajeshwari, ld. counsel appearing for the Petitioner is that the Petitioner had filed a pre-grant opposition challenging

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the grant of a patent to Respondent No.3, which relates to `Methods of Evaluating Peptide Mixtures'. The Petitioner is stated to have relied upon four prior arts, which, according to the ld. counsel for the Petitioner, have not been considered and no reasons have been given by the Ld. Deputy Controller while rejecting the pre-grant opposition. Her contention is that all the prior arts cited by the Petitioner have been dealt with in one paragraph and the same does not constitute adequate reasons. Hence, according to Ld. Counsel, no proper order has been passed on merits.

3. On the other hand, ld. counsel for Respondent No.3 which is the contesting respondent, submits that hearings in the pre-grant opposition were held in January, 2019 and parties were permitted to file written submissions. It is also submitted that the claims of the patent itself were amended, owing to the prior arts which had been cited by the Petitioner, and that the ld. Deputy Controller has, in fact, examined the matter fully, including the amended claims, as is evident from the last four pages of the impugned order. The order is quite well-reasoned. Ld. Counsel further relies upon the judgment of this Court in Ucb Farchim Sa v. Cipla Ltd. & Ors., (2010) 167 DLT 459, which holds that no appeal or writ is maintainable against the order deciding the pre-grant opposition.

4. The Court has considered the impugned order as also the judgment in

UCB Farchim (supra). The Patents Act, 1970 (hereinafter, "the Act") provides for filing of pre-grant oppositions and post-grant oppositions under Sections 25(1) and 25(2), as also revocation under Section 64, by a person who is challenging the grant of the patent or who is seeking revocation of the patent. Since there are three distinct remedies available under the Act, the scheme of the Act was considered in detail in UCB Farchim (supra)

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wherein a ld. Single Judge of this Court, after analysing the judgment of the Supreme Court in J. Mitra & Company v. Assistant Controller of Patents & Designs, (2008) 10 SCC 368, held as under:

"15. In the first eventuality, where the pre-grant opposition is rejected, it is apparent from the decision in J. Mitra and from a reading of Section 25 with Section 117A that as long as the person who has filed that opposition happens to be a person interested, he would, after 1st January, 2005 [the date with effect from which Section 25 (2) came into force although the provision was introduced only on 4th April, 2005] have the remedy of filing a post-grant opposition. He can, after 2nd April, 2007, also file an application before the IPAB under Section 64 of the Patents Act for revocation of the patent. In other words, as explained by the Supreme Court in J. Mitra & Co. as long as that person is able to show that he is a person "interested", he is not without a remedy after his pre-grant opposition is rejected. He in fact has two remedies. Even if his post-grant opposition is rejected, he can thereafter file an appeal to the IPAB under Section 117A. Against the decision of the IPAB in either event he will have the remedy of seeking judicial review in accordance with law by filing a petition in the High Court. At this juncture it may be noticed that in an order dated 2nd March, 2009 in SLP (C) No. 3522 of 2009 (Indian Network for People with HIV/AIDS v. F. Hoffman-La Roche) the Supreme Court permitted the unsuccessful pre-grant opposer, who had challenged the rejection of his opposition by the Controller, to participate in the post-grant stage.

16. The law is well settled that notwithstanding that a High Court has the power and the jurisdiction under Article 226 of the Constitution to interfere with the orders of any statutory authority which is of a quasi- judicial nature, it will decline to exercise such

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jurisdiction where there is an efficacious alternative statutory remedy available to the aggrieved person……."

5. In the present case, a perusal of the impugned order shows that the ld. Deputy Collector has considered all the prior arts, though not in detail, and has also considered the amended claims. After considering these documents, the following conclusion has been arrived at:

"In my opinion, none of cited document defines the claimed method of assaying, which is related to detection of diethylamide moiety bound to C-terminus, while in cited art D9 of opposition document and D1 of hearing notice there is step of cleavage of diethylamide moiety from glatiramer acetate. It imparts sensitivity to assaying method. Claim 1 is related to a method of assaying a sample of glatiramer acetate, the method comprising:

a) providing the sample of glatiramer acetate wherein the sample is suspected of comprising one or more polypeptides having a diethylamide moiety bound to a C -terminus thereof;

b) determining the amount of polypeptides having a diethylamide moiety bound to a C- terminus thereof in the sample, characterized by detecting diethylamide moieties when present on the Cterminus thereof;

c) comparing the amount of polypeptides, determined by detecting diethylamide moieties when present on the C-terminus thereof, having the diethylamide moiety bound to a C-terminus thereof in the sample to a predetermined pharmaceutical specification value for glatiramer acetate, wherein the specification value for glatiramer acetate has a range of 7 mol% to 20 mol% polypeptides having a diethylamide moiety bound to a C-terminus thereof; and

d) classifying the sample based on the amount of

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polypeptides having diethylamide moieties bound to the C-terminus thereof in the sample, wherein the classifying of the sample comprises releasing the sample for pharmaceutical use.

In view of above facts and finding, hearing proceedings, written submission filed by applicant on 19/01/2019, the Patent Application 9028/DELNP/2008 shall proceed to grant of Patent on amended set of claims filed on 19/01/2019 as there are no technical and formal objections, and the pre-grant opposition stands disposed off."

6. In the opinion of this Court, the pre-grant opposition was, therefore, decided on merits and following the scheme of the Act, as laid down in UCB Farchim (supra), the remedy of the Petitioner would be to either file a post- grant opposition or an application for revocation. Thus, the present petition would not be liable to be entertained.

7. Under Section 25(2) of the Act, the post-grant opposition can be filed by "any person interested" within a period of one year from the date of publication of grant of the patent. Considering that the Petitioner is a

"person interested", the Petitioner is permitted to file a post-grant opposition, which shall be decided in accordance with the provisions of Section 25 of the Act, after constituting an Opposition Board.

8. The Petitioner shall file the post-grant opposition within a period of two months from today. Thereafter, the pleadings shall be completed in accordance with the Act. In any event, the post-grant opposition, if filed within a period of two months, shall be decided within a period of one year from today. The parties are permitted to file any additional documents, pleadings and evidence, which they consider appropriate, at the relevant

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stage. All rights and contentions of the Petitioner and Respondent No.3 are left open.

9. The petition and all pending applications are disposed of in the above terms.

PRATHIBA M. SINGH

JUDGE

SEPTEMBER 30, 2019/dk

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