On Apr 24, 2017, Judge William H. Walls of District of New
Jersey granted defendants' motion for attorney fees under 35 U.S.C. § 285
because plaintiffs' infringement claim against defendant's operative ANDA and
plaintiff's claim for a declaration of infringement by possible future products
were baseless.
This case arises out of a patent dispute between Plaintiffs
Par Pharmaceutical, Inc., Par Sterile Products, LLC, and Endo Par Innovation
Company, LLC (collectively, “Par” or “Plaintiffs”), and Defendants Luitpold Pharmaceuticals,
Inc., Daiichi Sankyo, Inc., and Daiichi Sankyo Co., Ltd (“Defendants”). Par is
the assignee of several patents for Adrenalin®, a product containing 1
mg of the active ingredient epinephrine, which is used primarily to treat
allergic reactions. In early 2016, Defendant Luitpold filed an Abbreviated New
Drug Application (“ANDA”) with the Food and Drug Administration (“FDA”), which
sought approval to market a generic version of Par’s Adrenalin® product.
Par then initiated this suit under the Drug Price
Competition and Patent Term Restoration Act (the “Hatch-Waxman Act”), asserting
that Luitpold’s ANDA submission constituted an act of infringement of their
patents and seeking a declaration that Luitpold’s Future Generic Product — the
drug to be marketed and sold after FDA approval — would infringe Par’s patents.
Luitpold sought declaratory relief that it had not and was not infringing Par’s
Adrenalin® patents; that the Patents-in-suit were invalid under 35 U.S.C. §
101; that Luitpold was entitled to a defense to infringement based on earlier
commercial use, and that the case was exceptional under 35 U.S.C. § 285.
On September 9, 2016, Luitpold filed a motion for judgment
on the pleadings, which the Court granted on January 18, 2017. The Court
dismissed Plaintiffs’ patent infringement claims with prejudice and granted
Luitpold’s counterclaim seeking a declaratory judgment of non-infringement
because, as Par admits, Luitpold’s current ANDA formulations do not infringe
Par’s Adrenalin® patents. The Court also dismissed Par’s claims under the
Declaratory Judgment Act without prejudice as unripe, finding they were
“premised on speculation that future, uncertain amendments to Luitpold’s ANDA
will infringe Par’s patents.”
Defendants moved for attorney fees under 35 U.S.C. § 285 on
February 21, 2017. Defendants argue that they are prevailing parties under 35
U.S.C. § 285, that the case should be considered exceptional, and that the
Court should exercise its discretion to award fees because (1) “Par asserted an
objectively baseless theory of infringement”; (2) “Par knew its allegations
were false before filing suit”; (3) The Complaint improperly joined the Daiichi
$ankyo Defendants” (4) Par abused discovery to attempt to monitor Defendants’
competitive activities”; and (5) the case “violates public policy favoring
prompt resolution of Hatch-Waxman cases.
CONCLUSION: Defendants’ Motion for Attorney
fees, is granted in the reduced amount of $207,482.50 in fees and $4,580.93
in costs.
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