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England and Wales High Court (Patents Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Patents Court) Decisions >> Neurim Pharmaceuticals (1991) Ltd & Anor v Generics (UK) Ltd (T/A Viatris) & Anor [2021] EWHC 2897 (Pat) (29 October 2021) URL: http://www.bailii.org/ew/cases/EWHC/Patents/2021/2897.html Cite as: [2021] EWHC 2897 (Pat) |
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BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES
INTELLECTUAL PROPERTY LIST (ChD)
PATENTS COURT
Fetter Lane, London, EC4A 1NL |
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B e f o r e :
(sitting as a Deputy High Court Judge)
____________________
(1) Neurim Pharmaceuticals (1991) Limited (2) Flynn Pharma Limited |
Claimants |
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- and – |
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(1) Generics (UK) Limited (T/A Viatris) (2) Mylan UK Healthcare Limited |
Defendants |
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Mark Vanhegan QC and Mitchell Beebe (instructed by Taylor Wessing LLP) for the Defendants
Hearing date: 22 October 2021
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Crown Copyright ©
Ian Karet:
Introduction
"2. The action is for infringement of EP 3 103 443 (EP443) which was granted on 30th June 2021 and which expires on 12 August 2022. Like its parent (on which more below), it is entitled 'Method for treating primary insomnia'. It relates to the use of melatonin for treating primary insomnia. The reason why this patent will have such a short life from grant to expiry is because it is a divisional which appears to have languished for years without being prosecuted to grant, being, as it were, kept in reserve. At least one of the reasons why it was allowed to languish by Neurim is because the earlier parent patent (EP 1 441 702, EP702) was granted in 2017, although it will be noted that even that patent took almost 15 years to proceed from filing to grant.
3. The parent patent EP702 was the subject of an infringement action brought by Neurim against Mylan in 2020, with Mylan counterclaiming for invalidity. There is much more I need to relate about the circumstances of that earlier action.
4. Although this action was commenced very promptly after grant of 443, with the claim form being issued on the day of grant, judgment on a full trial of infringement and validity would not be handed down until after the patent has expired, assuming no expedition.
5. However, Neurim say that the parties have already litigated all the issues of infringement and validity and say that Mylan are estopped from asserting otherwise. Hence Neurim apply for the trial of primarily but not exclusively the estoppel arguments as a preliminary issue, and seek expedition of that trial so that it is heard, if possible, in the Michaelmas term this year. Mylan say the position is more complicated than Neurim state, such that the Court should resist the siren song of a preliminary issue in this case.
…
16. On the facts, there is a good deal of history, much of which concerns EP702. Although the opposition in the European Patent Office (EPO) to EP702 started first, it ran in tandem with the 2020 action between the parties until EP702 was revoked. The events are not in dispute, even though there is a dispute about the nature of the insufficiency argument raised before the EPO Technical Board of Appeal (TBA).
10 May 2017: EP702 granted.
9 February 2018: Mylan filed a Notice of Opposition. Oppositions also filed by Teva and Aspire Pharma.
20 November 2019: the Opposition Division at the EPO finds that EP702 lacked novelty. Neurim appealed to the TBA, which suspended the revocation of the Parent Patent pending the outcome of that appeal, in the usual way.
Early 2020: Mylan obtains obtaining a marketing authorisation for generic melatonin and refuses to provide notice of any launch of their product.
14 February 2020: Claim form in the EP702 action issued.
17 February 2020: Neurim serve proceedings on Mylan for infringement of EP702. Mylan denies infringement and counterclaims that EP702 is invalid by a Defence and Counterclaim served 1 April 2020.
2 March 2020: Neurim applies for a preliminary injunction (PI) pending trial in the light of Mylan's refusal to give any undertaking not to launch.
6 March 2020: Mylan applies for expedition of EP702 trial, to which Neurim agrees on 13 March 2020. On 19 March 2020, Nugee J ordered an expedited trial.
20 May 2020: Marcus Smith J hears the PI application, and in a judgment of 3 June 2020 refuses it. His refusal was upheld by the Court of Appeal in a judgment of 24 June 2020 [[2020] EWCA Civ 793]. The reasoning of both Courts was based partly on the fact that the trial had been expedited and there was limited time for damage to accumulate. The Supreme Court, despite considering that there was a point of law of public general importance, refused to give permission chiefly because of the imminence of trial.
September 2020: Mylan launched its generic melatonin product.
29 October – 5 November 2020: the EP702 trial was heard by Marcus Smith J, who in a judgment of 4 December 2020 found EP702 valid and infringed [2020] EWHC 3270 (Pat). Mylan admitted infringement if EP702 was valid.
16 December 2020: form of order hearing where Marcus Smith J made a number of oral orders, and refused Mylan's application for permission to appeal his validity findings. Certain other matters were left to be agreed in the light of the TBA hearing which was to take place on 17-18 December 2020.
18 December 2020: the TBA gave an oral opinion that EP702 was invalid for insufficiency, in the light of which Neurim withdrew its appeal. The suspensive effect of the Opposition Division's decision ceased and EP702 was revoked.
30 December 2020: Marcus Smith J revokes his oral order of 16 December 2020, the terms of the order not having been settled in writing. The Judge made no order on Mylan's counterclaim and recorded a declaration that EP702 had been revoked ab initio, a point he also stated in his judgment on the consequential issues.
12 March 2021: Marcus Smith J made a further consequential Order in the EP702 action. See also his judgment on the consequential issues [2021] EWHC 530 (Pat).
17. Meanwhile, Neurim had revived its divisional application even though (as Mylan pointed out) it had previously been deemed to have been withdrawn on 17 October 2018, due to inactivity. The principal events relevant to EP443 are:
28 January 2021 and 17 March 2021: Since the opposition procedure operates post-grant, Mylan filed third party observations at the EPO bringing the insufficiency argument raised before the TBA to the attention of the examiner of what became EP443.
14 April 2021: the Examining Division issued its Notice of Intention to Grant EP443, stating that Mylan's third party observations had been examined but found not to be relevant.
19 April 2021: Mylan filed a complaint that the Examining Division had not properly considered its third party observations. On 4 May 2021, the EPO replied confirming that Mylan's third party observations had been debated, that a reasoned decision had been taken internally about how to consider them, and that the point relating to sufficiency had been thoroughly discussed
4 June 2021: the Examining Division issued its Decision to Grant.
30 June 2021: EP443 granted.
11 August 2021: Mylan's Defence and Counterclaim due.
October 2021: Mylan has secured a date for the hearing of its application to stay this action pending the outcome of its opposition in the EPO."
The parties' positions
The law
"1. The discretion, which is very wide indeed, should be exercised to achieve the balance of justice between the parties having regard to all the relevant circumstances of the particular case.
2. The discretion is of the Patents Court, not of the Court of Appeal. The Court of Appeal would not be justified in interfering with a first instance decision that accords with legal principle and has been reached by taking into account all the relevant, and only the relevant, circumstances.
3. Although neither the EPC nor the 1977 Act contains express provisions relating to automatic or discretionary stay of proceedings in national courts, they provide the context and condition the exercise of the discretion.
4. It should thus be remembered that the possibility of concurrent proceedings contesting the validity of a patent granted by the EPO is inherent in the system established by the EPC. It should also be remembered that national courts exercise exclusive jurisdiction on infringement issues.
5. If there are no other factors, a stay of the national proceedings is the default option. There is no purpose in pursuing two sets of proceedings simply because the Convention allows for it.
6. It is for the party resisting the grant of the stay to show why it should not be granted. Ultimately it is a question of where the balance of justice lies.
7. One important factor affecting the exercise of the discretion is the extent to which refusal of a stay will irrevocably deprive a party of any part of the benefit which the concurrent jurisdiction of the EPO and the national court is intended to confer. Thus, if allowing the national court to proceed might allow the patentee to obtain monetary compensation which is not repayable if the patent is subsequently revoked, this would be a weighty factor in favour of the grant of a stay. It may, however, be possible to mitigate the effect of this factor by the offer of suitable undertakings to repay.
8. The Patents Court judge is entitled to refuse a stay of the national proceedings where the evidence is that some commercial certainty would be achieved at a considerably earlier date in the case of the UK proceedings than in the EPO. It is true that it will not be possible to attain certainty everywhere until the EPO proceedings are finally resolved, but some certainty, sooner rather than later, and somewhere, such as in the UK, rather than nowhere, is, in general, preferable to continuing uncertainty everywhere.
9. It is permissible to take account of the fact that resolution of the national proceedings, whilst not finally resolving everything, may, by deciding some important issues, promote settlement.
10. An important factor affecting the discretion will be the length of time that it will take for the respective proceedings in the national court and in the EPO to reach a conclusion. This is not an independent factor, but needs to be considered in conjunction with the prejudice which any party will suffer from the delay, and lack of certainty, and what the national proceedings can achieve in terms of certainty.
11. The public interest in dispelling the uncertainty surrounding the validity of monopoly rights conferred by the grant of a patent is also a factor to be considered.
12. In weighing the balance it is material to take into account the risk of wasted costs, but this factor will normally be outweighed by commercial factors concerned with early resolution.
13. The hearing of an application for a stay is not to become a mini-trial of the various factors affecting its grant or refusal. The parties' assertions need to be examined critically, but at a relatively high level of generality."
Discussion
Conclusion