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Federal Circuit Finds Personal Jurisdiction over Mylan in Two Hatch-Waxman Appeals

On Friday, March 18, the Court of Appeals for the Federal Circuit affirmed two District of Delaware rulings that non-resident defendant generic ANDA filer, Mylan, is subject to personal jurisdiction in two Hatch-Waxman suits filed in the state. (See Acorda Therapeutics Inc. v. Mylan Pharmaceuticals Inc., No. 14‐935‐LPS (D. Del. Jan. 14, 2015); AstraZeneca AB v. Mylan Pharmaceuticals Inc., No. 14‐696‐GMS (D. Del. Nov. 5, 2014)).  The Federal Circuit found that specific personal jurisdiction exists over Mylan in Delaware because Mylan’s ANDA filings reliably indicate its intent to engage in actions that will harm plaintiffs’ patent rights in the jurisdiction.  The court did not reach the issue on appeal of whether Mylan’s compliance with Delaware’s registration statute established consent to general personal jurisdiction in the state, an issue on which the lower court opinions split.  However, Judge Kathleen M. O’Malley, concurring in the majority’s judgement, would also have found Mylan consented to general personal jurisdiction in light of Delaware’s interpretation of its registration statute.

Filing an ANDA Satisfies the Minimum Contacts Requirement of Specific Personal Jurisdiction

The court held that “the particular actions Mylan has already taken–its ANDA filings–for the purpose of engaging in that injury-causing and allegedly wrongful marketing conduct in Delaware” satisfy the minimum contacts with Delaware required to establish specific personal jurisdiction.  Maj. Op. at 8-9.  The court began by observing that, if Mylan had already begun the generic drug marketing activities for which it seeks permission by filing an ANDA, “there is no doubt that it could be sued for infringement in Delaware,” and elsewhere that it seeks to market the generic ANDA products.  Id. at 8.  Mylan’s ANDA filings, in turn, are “formal acts that reliably indicate plans to engage in” that same infringing activity.  Id. at 9.  Thus, the ANDA filings, like the contemplated marketing acts they seek approval for, establish personal jurisdiction over Mylan in Delaware.

The court found support for its holding from a number of sources.  The Hatch-Waxman Act itself establishes how “tightly tied” an ANDA filing is to the “real-world” marketing acts that ANDA approval will allow.  Congress itself, the court observed, stressed the purpose of the ANDA to “obtain approval . . . to engage in the commercial manufacture, use or sale of a drug” – concrete acts of infringement.  Id.  The fact that ANDA applications require significant financial expenditure also supports the court’s conclusion that ANDA filers have “reliably confirmed a plan to engage in real-world marketing.”  Id. at 11.  The ANDA filing alone is over $76,000 and related application costs can total millions of dollars.  Id.  Moreover, precedent finding that ANDA litigation satisfies the Article III case or controversy requirement, as well as courts’ hearing of injunctive actions to prevent harmful future conduct both further bolster the court’s holding.  Id. at 11-14.

Having found that Mylan’s ANDA filing established sufficient minimum contacts with Delaware, the court quickly determined that this exercise of personal jurisdiction was not unconstitutionally unreasonable.  Mylan’s large size and many prior ANDA litigations, including in Delaware, render the burden of litigating there modest, at most.  Id. at 16.  Furthermore, Delaware has an interest in the sale of products in the forum, and litigating in Delaware saves juridical resources due to the forum’s multiple ANDA suits involving the same branded drugs.  Id.

The Federal Circuit’s Opinion has Potentially Broad Impact on Current and Future Hatch-Waxman Litigation

Despite declining to reach the issue of registration as consent to personal jurisdiction, the holding that Mylan’s ANDA filings establish specific jurisdiction in states where it is a nonresident may have an immediate and broad impact on Hatch-Waxman litigation.  Mylan alone has filed numerous motions to dismiss for lack of personal jurisdiction in Hatch-Waxman suits since the Supreme Court’s Daimler AG v. Bauman decision muddied the scope of general personal jurisdiction over nonresident defendants in Hatch-Waxman litigation.  134 S.Ct. 746 (2014).  With this straightforward ruling, generic ANDA filers will likely have a much harder time prevailing on a motion to dismiss for lack of personal jurisdiction in Hatch-Waxman litigation, regardless of whether or not the particular forum state has interpreted compliance with its foreign corporation registration statutes as consent to personal jurisdiction.

©1994-2020 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. All Rights Reserved.National Law Review, Volume VI, Number 84

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About this Author

Adam Samansky IP Attorney Mintz Law Firm
Member

Adam is an experienced IP litigator who primarily serves pharmaceutical, medical, high tech, and defense industry clients. He handles patent, trademark, and trade secret matters for innovators and investors. Adam has a strong record of success in multiparty, highly contested Hatch-Waxman litigation, in addition to other litigations involving advanced biochemistry, polymers, optics, manufacturing processes, and electronics. He has tried cases before multiple US district courts, briefed and argued cases before the US Court of Appeals for the Federal Circuit, and briefed bet-the-company...

617-348-1819
Joseph Rutowski IP Attorney Mintz
Associate

Joseph’s practice focuses on intellectual property litigation and counseling on issues related to intellectual property rights. Joseph’s primary focus is in patent litigation, including the intricacies of Hatch-Waxman pharmaceutical litigation. He has extensive experience in every stage of litigation, from pre-suit investigations through appeal – including case initiation, fact and expert discovery, motion practice, and successful preparation for and participation in trials involving patent infringement allegations.

Joseph has represented clients across a wide range of technologies including pharmaceuticals, medical and mechanical devices, consumer products, and telecommunications services. He has also worked on numerous high-stakes Hatch-Waxman litigations for major pharmaceutical companies through trial and appeals. Beyond patent litigation, Joseph has experience in disputes involving unfair competition, breach of contract, trademarks and trade secret misappropriation, and educational institutions.

In addition to his intellectual property and complex commercial litigation experience, Joseph served, pro bono, as lead counsel for a homeless shelter in numerous housing court matters, including summary process jury trial, alternative dispute resolution, contract negotiations, and strategic assessments.

617.348.1873