Patent Law

Hewlett-Packard v. Acceleron 09-1283.pdf (Fed. Cir. 2009)

Acceleron's patent No. 6,948,021 covers a hot-swappable server blade. In September 2007, Acceleron wrote to "call [HP's] attention to the referenced patent." HP responded that they "would be willing to agree not to file" a declaratory judgment action for 120 days. Going back, Acceleron simply suggested that no declaratory judgment jurisdiction existed.

Rather than negotiating, HP filed a declaratory judgment action in Delaware District court. However, Judge Robinson dismissed that case - finding the potential for litigation by Acceleron "too speculative a prospect to support declaratory judgment jurisdiction."

On appeal, the Federal Circuit found Acceleron's actions were sufficient to support a declaratory judgment action -- a holding that the court admits "undoubtedly marks a shift from past declaratory judgment cases."

The Constitution limits federal court jurisdiction to actual cases and controversies. Under the Supreme Court's 2006 MedImmune decision, the question of declaratory judgment jurisdiction is answered after considering "all the circumstances" rather than any bright line rule. Subsequently, the Federal Circuit indicated that declaratory judgment jurisdiction exists when a patentee asserts rights against "certain identified ongoing or planned activity of another party, and where that party contends that it has the right to engage in the accused activity without license.? (Quoting SanDisk). Likewise, a party who has "actually been charged with infringement of a patent" will be able to identify declaratory judgment jurisdiction. (quoting Cardinal Chem).

Here, Acceleron argues that a patent owner should have some mechanism for contacting another party to discuss patent rights without raising declaratory judgment jurisdiction. Without disagreeing with that premise, the Federal Circuit held that this is not such a case.

Although Acceleron made no direct charges of infringement, the company did indicate that its patents were "relevant" to HP's product line; that HP's response must come within two-weeks; and asked HP not to file a DJ action. "Under the totality of the circumstances, therefore, it was not unreasonable for HP to interpret Acceleron?s letters as implicitly asserting its [patent] rights."

Although dicta, the Federal Circuit also suggested that the "totality of the circumstances" analysis should included the fact that Acceleron is "solely a licensing entity." That fact apparently creates a greater shadow of litigation because "without enforcement [Acceleron] receives no benefits from its patents."