Security People, Inc. v. Lee et al

Northern District of California, cand-4:2015-cv-03172

ORDER by Judge Haywood S. Gilliam, Jr. GRANTING ({{16}}, {{22}}) MOTIONS TO DISMISS WITH PREJUDICE.

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1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 SECURITY PEOPLE, INC., Case No. 15-cv-03172-HSG Plaintiff, ORDER GRANTING MOTIONS TO 8 DISMISS WITH PREJUDICE v. 9 Re: Dkt. Nos. 16, 22 10 MICHELLE K. LEE, et al., Defendants. 11 12 Plaintiff Security People, Inc. filed this lawsuit on July 8, 2015 against Michelle K. Lee, in Northern District of California United States District Court 13 her capacity as Director of the United States Patent and Trademark Office, the United States 14 Patent and Trademark Office ("PTO"), and Ojmar US, LLC (collectively, "Defendants"). Dkt. 15 No. 1. The lawsuit alleges a single count positing the unconstitutionality of 35 U.S.C. §§ 311-19, 16 contending that the PTAB's inter partes review proceedings violate Article III separation of 17 powers principles and the right to have patent validity issues determined by a jury. 18 In light of the Federal Circuit's recent decision in MCM Portfolio LLC v. Hewlett-Packard 19 Co., 812 F.3d 1284 (Fed. Cir. 2015), the Court GRANTS the motions to dismiss. MCM Portfolio 20 squarely rejected the argument that inter partes review violates Article III. See id. at 1292. The 21 decision further held that "[b]ecause patent rights are public rights, and their validity susceptible to 22 review by an administrative agency, the Seventh Amendment poses no barrier to agency 23 adjudication without a jury." Id. at 1293. 24 Finding that the complaint fails to state a cognizable claim to relief and that further 25 amendment of the pleadings would be futile, the Court GRANTS the motion to dismiss with 26 prejudice. See Shroyer v. New Cingular Wireless Servs., Inc., 622 F.3d 1035, 1041 (9th Cir. 2010) 27 (holding dismissal is appropriate where "where there is no cognizable legal theory" (internal 28 quotation marks omitted)). The Clerk is directed to enter judgment in favor of Defendants and 1 close the file. 2 IT IS SO ORDERED. 3 Dated: 3/25/2016 4 5 HAYWOOD S. GILLIAM, JR. 6 United States District Judge 7 8 9 10 11 12 Northern District of California United States District Court 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2