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<p class="MsoNormal" style="text-decoration: none; color: rgb(0, 0, 0);">First, I agree with David that there is a very low probability that the Federal Circuit will engage on this Constitutional issue. However, I disagree with him that the issue is not worth
raising anyway, space permitting, because under a strong Constitutional argument on this issue, and a \u201cclose call\u201d on the merits, the Federal Circuit may opt to avoid addressing the issue pursuant to the \u201cConstitutional Avoidance Doctrine,\u201d and reverse the
PTAB based on the current evidentiary standard. </p>
<p class="MsoNormal" style="text-decoration: none; color: rgb(0, 0, 0);"></p>
<p class="MsoNormal" style="text-decoration: none; color: rgb(0, 0, 0);">Second, David dismisses the unconstitutionality argument apparently by reading the IP Clause of the Constitution rather than the Supreme Court case law on the 5th Amendment and the general
factors governing the standard of proof as discussed in<span class="Apple-converted-space"> </span><a href="https://s3-us-west-1.amazonaws.com/ptab-filings%2FIPR2020-00995%2F23#page=48" data-outlook-id="2dce8bd6-79d2-4ef2-b2c2-c94e67a6aa79" data-linkindex="0" style="color: rgb(0, 134, 240);">IPR2020-00995</a>.
The standard of proof cannot be found in a specialized IP Clause; it is a general right as the Supreme Court explained: \u201c<i>Addington</i><span class="Apple-converted-space"> </span>teaches us that, in any given proceeding, the minimum standard of proof tolerated
by the<span class="Apple-converted-space"> </span><i>due process requirement</i><span class="Apple-converted-space"> </span>reflects \u2026 a societal judgment about how<span class="Apple-converted-space"> </span><i>the risk of error should be distributed between
the litigants</i>.\u201d<span class="Apple-converted-space"> </span><i>Santosky v. Kramer</i>, 455 U.S. 745, 755 (1982) (my emphasis). In<span class="Apple-converted-space"> </span><i>Santosky,</i><span class="Apple-converted-space"> </span>the Supreme Court held
the preponderance of the evidence standard in § 622 of the N.Y. Family Court Act unconstitutional because of the asymmetry in the countervailing risk of adjudication errors of litigants in that particular parental rights setting.</p>
<p class="MsoNormal" style="text-decoration: none; color: rgb(0, 0, 0);">There is similar evidence that in enacting the preponderance standard for IPRs, Congress missed that concept too, as it failed to recognize the much higher countervailing risk of adjudication
errors for the patent owner than for the patent challenger. This is evident from the Senate hearings on the early version of the post grant opposition bill prior to the AIA. See the hearing of the Senate Subcommittee on Intellectual Property,<span class="Apple-converted-space"> </span><a href="https://www.govinfo.gov/content/pkg/CHRG-109shrg38536/pdf/CHRG-109shrg38536.pdf#page=45" data-outlook-id="dd28d5b5-fe4e-4243-ad7e-ff9ea92a0f3f" data-linkindex="1" style="color: rgb(0, 134, 240);">S.
HRG. 109\u2013983</a><span class="Apple-converted-space"> </span>at 41-43. The tech industry witness advocated the preponderance of the evidence standard for post grant opposition proceedings and Senator Leahy asked the Pharma witness advocating for the clear &
convincing evidence standard why the standard should not be the same as in application prosecution at the PTO. That Pharma witness was Bob Armitage, who had no clue as to the Constitutional reasons and the asymmetry in countervailing risk of error.</p>
<p class="MsoNormal" style="text-decoration: none; color: rgb(0, 0, 0);">Instead, Armitage explained that \u201cthe current standard and the standard traditionally applied to patents in litigation has been clear and convincing evidence to invalidate a patent.\u201d Senator
Leahy then asked \u201cbut it took preponderance of the evidence to grant the patent.\u201d Armitage summarized his argument for the heightened standard by stating that \u201cthere are industries for which patents are so important that it is absolutely critical, if they
have gone through a rigorous process in the patent office and been found valid, that we have a patent that can be respected, not that intimidates, but can be respected.\u201d So applicants are not cognizant of that importance during prosecution? Leahy was not
persuaded that the standard ought to be as in Article III courts because Armitage did not explain why the standard is different than that at the PTO. </p>
<p class="MsoNormal" style="text-decoration: none; color: rgb(0, 0, 0);">The result might have been different had there been then a knowledgeable witness who could have taught Senator Leahy and the Committee that the asymmetry in the countervailing risk of
factfiner errors arises<span class="Apple-converted-space"> </span><i>only</i><span class="Apple-converted-space"> </span><i>after</i><span class="Apple-converted-space"> </span>claims are finalized and a patent issues with a presumption of validity, as further
explained in pp.<span class="Apple-converted-space"> </span><a href="https://s3-us-west-1.amazonaws.com/ptab-filings%2FIPR2020-00995%2F23#page=54" data-outlook-id="ba259975-d3b3-4238-b2ec-6539d7227813" data-linkindex="2" style="color: rgb(0, 134, 240);">44-47</a><span class="Apple-converted-space"> </span>of
IPR2020-00995.</p>
<p class="MsoNormal" style="text-decoration: none; color: rgb(0, 0, 0);">That said, raising this Constitutional argument at the Federal Circuit requires confidence that the PTAB decision turned on the evidentiary standard \u2013 that this is a close call and that
applying the clear & convincing standard would result in the reversal of the PTAB decision. For that to happen, however, there must also be reasonable number of jurists who would reverse the PTAB decision even now under the preponderance standard.</p>
<div class="reply-new-signature" style="text-decoration: none; color: rgb(0, 0, 0);">
Best,</div>
<div class="reply-new-signature" style="text-decoration: none; color: rgb(0, 0, 0);">
Ron<br>
<p class="MsoNormal"><i><span style="font-size:10pt;font-family:Arial, sans-serif;line-height:1.5">-------------------------------------------------------</span></i></p>
<p class="MsoNormal">Ron D. Katznelson, Ph.D.</p>
<p class="MsoNormal">2020 Chairman,<span class="Apple-converted-space"> </span><a href="https://ieeeusa.org/volunteers/committees/ipc/" data-outlook-id="1e1d4f8b-38d6-4769-9742-0241d9206d3d" data-linkindex="3" style="color: rgb(0, 134, 240);">IEEE-USA IP Committee</a></p>
<p class="MsoNormal">Office:<span class="Apple-converted-space"> </span><span dir="ltr" style="color: rgb(0, 134, 240);">760 753-0668</span></p>
<p class="MsoNormal">Email:<span class="Apple-converted-space"> </span><a href="http://rkatznelson@roadrunner.com/" data-outlook-id="5335167e-a7c2-4300-ba70-7b144ba514b9" data-linkindex="4" style="color: rgb(0, 134, 240);">rkatznelson@roadrunner.com</a> </p>
<p class="MsoNormal">SSRN:<span class="Apple-converted-space"> </span><a href="http://ssrn.com/author=706742" data-outlook-id="dafdca85-482e-4a04-b611-4cb5d99265ac" data-linkindex="5" style="color: rgb(0, 134, 240);">http://ssrn.com/author=706742</a><span dir="RTL" style="line-height:19.504px"><span dir="LTR"> </span></span> </p>
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<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" style="font-size:11pt" color="#000000"><b>From:</b> David Boundy <DavidBoundyEsq@gmail.com><br>
<b>Sent:</b> Wednesday, September 17, 2025 5:18:54 AM<br>
<b>To:</b> Stanley H. Kremen <shk@shk-dplc.com><br>
<b>Cc:</b> Ron D. Katznelson <ron@bileveltech.com>; For patent practitioners. This is not for laypersons to seek legal advice. <patentpractice@oppedahl-lists.com>; rkatznelson@roadrunner.com <rkatznelson@roadrunner.com><br>
<b>Subject:</b> Re: [Patentpractice] Appeal from PTAB Decision</font>
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<div>Like Ron, I know of no case that that challenged "preponderance of evidence" and I agree that it wouldn't be waived.<br>
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<div>But I disagree with his (unstated) suggestion that it's a viable issue. There's a reason no one has challenged this -- it's a loser. Look at the Constitutional text -- do you see the words "clear and convincing" in Article I, section 8, clause 8? I
don't either. Where the Constitutional text grants a power to Congress but doesn't specify a limit on that power, Congress can legislate as it likes. Wisdom isn't a viable basis to challenge an act of Congress.<br>
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<div>You've got a page limit. Use those pages on something else.</div>
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<div class="x_gmail_quote">
<div dir="ltr" class="x_gmail_attr">On Wed, Sep 17, 2025 at 5:07\u202fAM Ron D. Katznelson via Patentpractice <<a href="mailto:patentpractice@oppedahl-lists.com" target="_blank">patentpractice@oppedahl-lists.com</a>> wrote:<br>
</div>
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<div dir="ltr"><font face="serif" style="text-decoration:none; line-height:1.5; color:rgb(0,0,0)">Stan Kremen asked whether the </font><span style="text-decoration:none; font-family:serif; color:rgb(0,0,0)">preponderance of the evidence </span><font face="serif" style="text-decoration:none; line-height:1.5; color:rgb(0,0,0)">standard
for an IPR rather than clear & convincing evidence has ever been challenged in court. As best I know, the answer is<span> </span><b><i>no</i></b>, but detailed briefs to that effect were filed with SCOTUS and the PTAB.</font><span style="text-decoration:none; display:inline; color:rgb(0,0,0); background-color:rgb(255,255,255)"></span>
<div dir="ltr" style="text-decoration:none; color:rgb(0,0,0)"><font face="serif" style="line-height:1.5"><br>
</font></div>
<div style="text-decoration:none; color:rgb(0,0,0)"><font face="serif" style="line-height:1.5">The first occasion was on August 31, 2017, when we filed an<span> </span><a href="https://patentdocs.typepad.com/files/16-712-tsac-ieee-usa.pdf#page=28" target="_blank" style="color:rgb(0,134,240)">IEEE-USA<span> </span><i>amicus</i><span> </span>brief</a><span> </span>that
I authored in the<span> </span><i>Oil States</i><span> </span>case before the SCOTUS. Section III of our brief provides authorities and explaining why the preponderance of evidence standard in 35 U.S.C. § 316(e) is \u201ca constitutionally defective evidentiary
standard.\u201d I showed that the application of of this standard in IPR proceeding violates the patent holder's Due Process rights as being too lax to make reasonable assurance of accurate fact-finding. "The function of a standard of proof, as that concept is
embodied in the Due Process Clause and in the realm of fact-finding, is to instruct the factfinder concerning the degree of confidence our society thinks he should have in the correctness of factual conclusions for a particular type of adjudication."<span> </span><i>Addington
v. Texas</i><span> </span>441 U.S. 418, 423 (1979). The standard of proof depends solely on the relative<span> </span><i><b>disparity</b></i><span> </span>of the parties\u2019 countervailing risks of adjudication errors against them. The presumption of patent
validity under the clear & convincing evidence standard is an immutable adjudicatory standard matched to the large asymmetry in the countervailing risks to the litigants due to factfinder errors in patent validity determinations. When the factfinder erroneously
upholds an invalid patent, the patent challenger risks the unjust loss of damage award only for his own infringement, whereas when the factfinder erroneously finds a valid patent to be invalid, the patent holder risks the unjust loss of his rights to damage
awards not only from the patent challenger but also from hundreds of infringers or licensees. He also unjustly loses his trade secret, enriching the public with a disclosure of his invention that was published upon consummation of the patent bargain. That
is why proof against him must be at the heightened standard of clear & convincing evidence. </font></div>
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<div>
<div><font face="serif" style="line-height:1.5">This constitutional argument was not raised by the parties and therefore the SCOTUS decision in<span> </span><i>Oil States</i><span> </span>did not address the issue.</font></div>
<div><font face="serif" style="line-height:1.5"><br>
</font></div>
<div><font face="serif" style="line-height:1.5">The second occasion that this constitutional argument was raised was at the PTAB by the Patent Owner's response on <a href="https://s3-us-west-1.amazonaws.com/ptab-filings%2FIPR2020-00995%2F23#page=48" target="_blank" style="color:rgb(0,134,240)">March
3, 2021 in IPR2020-00995</a>. Section V of the response provides an updated detailed analysis, further distinguishing the argument from the constitutional case in <i>Celgene Corp. v. Peter</i>, 931 F.3d 1342, 1358 (Fed. Cir. 2019). </font></div>
<div>
<div>
<p class="x_MsoNormal"><font face="serif" style="line-height:1.5"><span style="background-color:rgb(255,255,255)">The PTAB had no authority to consider the constitutionality of </span>§ 316(e) and simply passed on the issue. The Patent Owner <span style="background-color:rgb(255,255,255)">Appealed
to the Federal Circuit in Case No. </span><span style="background-color:rgb(255,255,255)">2022-1357 on January 11, </span><span style="background-color:rgb(255,255,255)">2022. However, the case was not briefed as the Patent Owner </span><span style="background-color:rgb(255,255,255)">voluntarily
dismissed the appeal pursuant to FRAP 42(b) on</span> <span style="background-color:rgb(255,255,255)">April 22, 2022, for other reasons.</span><span style="background-color:rgb(255,255,255)"> </span></font></p>
<p class="x_MsoNormal"><font face="serif" style="line-height:1.5">I believe you do not need to have raised this constitutional issue at the PTAB and can do so for the first time at the Federal Circuit. This is because the PTAB cannot decide the constitutionality
of its own statute. </font></p>
<p class="x_MsoNormal"><font face="serif" style="line-height:1.5">Best,</font></p>
<p class="x_MsoNormal"><font face="serif" style="line-height:1.5">Ron</font></p>
<p class="x_MsoNormal"><i><span style="font-size:10pt; font-family:Arial,sans-serif; line-height:1.5">-------------------------------------------------------</span></i></p>
<p class="x_MsoNormal"><i><span style="font-size:10pt; font-family:Arial,sans-serif; line-height:1.5">Ron D. Katznelson, Ph.D.</span></i></p>
<p class="x_MsoNormal"><b><i><span style="font-size:10pt; font-family:Arial,sans-serif; line-height:1.5">2020 Chairman, </span></i></b><i><b><a href="https://ieeeusa.org/volunteers/committees/ipc/" target="_blank" style="color:rgb(0,134,240)">IEEE-USA IP Committee</a></b></i></p>
<p class="x_MsoNormal"><b><i><span style="font-size:10pt; font-family:Arial,sans-serif; line-height:1.5">Office:</span></i></b><i><span style="font-size:10pt; font-family:Arial,sans-serif; line-height:1.5"> <span dir="ltr" style="color:rgb(0,134,240)">760 753-0668</span></span></i></p>
<p class="x_MsoNormal"><i><span style="font-size:10pt; font-family:Arial,sans-serif; line-height:1.5"><b>Email: </b><a href="http://rkatznelson@roadrunner.com/" target="_blank" style="color:rgb(0,134,240)">rkatznelson@roadrunner.com</a> <b> </b></span></i></p>
<p class="x_MsoNormal"><i><span style="font-size:12pt; font-family:"Times New Roman",serif; line-height:1.5"><b>SSRN</b>: </span><a href="http://ssrn.com/author=706742" target="_blank" style="font-size:12pt; font-family:"Times New Roman",serif; line-height:1.5; color:rgb(0,134,240)">http://ssrn.com/author=706742</a><span dir="RTL" style="font-size:11pt; line-height:16.8667px; font-family:Arial,sans-serif"><span dir="LTR"> </span></span></i><span style="font-size:11pt; font-family:Calibri,sans-serif; line-height:1.5"><span style="color:rgb(31,73,125)"> </span></span><i><span style="font-size:10pt; font-family:Arial,sans-serif; line-height:1.5"> </span></i></p>
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<div id="x_m_4255249902356311225m_4158399915529587777divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif"><b>From:</b> Patentpractice <<a href="mailto:patentpractice-bounces@oppedahl-lists.com" target="_blank">patentpractice-bounces@oppedahl-lists.com</a>>
on behalf of David Boundy via Patentpractice <<a href="mailto:patentpractice@oppedahl-lists.com" target="_blank">patentpractice@oppedahl-lists.com</a>><br>
<b>Sent:</b> Tuesday, September 16, 2025 6:26 PM<br>
<b>To:</b> For patent practitioners. This is not for laypersons to seek legal advice. <<a href="mailto:patentpractice@oppedahl-lists.com" target="_blank">patentpractice@oppedahl-lists.com</a>>; Stanley H. Kremen <<a href="mailto:shk@shk-dplc.com" target="_blank">shk@shk-dplc.com</a>><br>
<b>Cc:</b> David Boundy <<a href="mailto:DavidBoundyEsq@gmail.com" target="_blank">DavidBoundyEsq@gmail.com</a>><br>
<b>Subject:</b> Re: [Patentpractice] Appeal from PTAB Decision
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<div>Look at any Federal Circuit case. Every single one starts with standard of review.</div>
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<div class="x_gmail_quote">
<div dir="ltr" class="x_gmail_attr">On Tue, Sep 16, 2025 at 2:14\u202fPM Stanley H. Kremen via Patentpractice <<a href="mailto:patentpractice@oppedahl-lists.com" target="_blank">patentpractice@oppedahl-lists.com</a>> wrote:<br>
</div>
<blockquote class="x_gmail_quote" style="margin:0px 0px 0px 0.8ex; border-left:1px solid rgb(204,204,204); padding-left:1ex">
Colleagues:<br>
<br>
What are the general grounds for appeal from an IPR decision. Would PTAB misinterpreting claims be adequate grounds. Also, has the statute setting the evidentiary standard for an IPR to preponderance of the evidence rather than clear and convincing ever been
challenged at the Fed. Circuit or at SCOTUS?<br>
<br>
Stan Kremen <br>
Sent from my iPhone<br>
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<b><span style="margin:0px; font-size:10pt; color:rgb(96,110,154)">David Boundy </span></b><span style="margin:0px; font-size:10pt; color:rgb(124,134,154)">| Partner </span><span style="margin:0px; font-family:Arial,sans-serif; font-size:10pt; color:rgb(124,134,154)"><span style="margin:0px; background-color:white; font-family:Arial,Helvetica,sans-serif">|</span><span style="margin:0px; background-color:white"><span style="margin:0px; font-family:Arial,Helvetica,sans-serif"> </span></span></span><span style="margin:0px; font-size:10pt; color:rgb(124,134,154)">Potomac Law
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