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UNITED STATES PATENT AND TRADEMARK OFFICE
`_____________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_____________________
`
`
`AMNEAL PHARMACEUTICALS, LLC
`Petitioner
`v.
`ENDO PHARMACEUTICALS INC.
`Patent Owner
`
`_____________________
`
`CASE IPR2014-00361
`Patent 8,309,122
`
`
`
`
`PETITIONER’S REPLY BRIEF ON 35 U.S.C. § 315(b)
`
`
`
`
`
`
`
`
`Mail Stop “PATENT BOARD”
`Patent Trial and Appeal Board
`U.S. Patent and Trademark Office
`P.O. Box 1450
`Alexandria, VA 22313-1450
`
`
`
`
`

`

`IPR2014-00361
`
`The one-year time period for Petitioner to seek inter partes review began on
`
`January 17, 2013, the date that Patent Owner (“PO”) filed and served the Second
`
`Amended Complaint (“SAC”), alleging infringement of U.S. Patent 8,309,122
`
`(“the ‘122 patent”). Prior to service of the SAC, the parties agreed no further action
`
`with respect to the first Amended Complaint was required if the Court granted the
`
`PO’s motion to further amend the complaint – which the Court did on January 14,
`
`2013. Despite this agreement and the extensive case law holding that filing of an
`
`amended complaint renders the prior complaint a legal nullity, PO nevertheless
`
`argues the service date of the legally defunct Amended Complaint - rather than the
`
`governing SAC - controls for purposes of 315(b). Given the parties’ agreement
`
`and the law, Petitioner timely filed IPR2014-00361.
`
`Factual Background
`
`On November 7, 2012, PO filed a complaint that was never served. On
`
`November 14, 2012, PO filed an Amended Complaint that alleged infringement of
`
`the ‘122 patent and was served on November 20, 2012. EX2002, EX2003.
`
`PO’s Patent Owner's Preliminary Response omitted the parties’ agreement
`
`regarding Petitioner’s Answer to the Amended Complaint. The parties agreed to
`
`extend the time to answer, move, or otherwise respond to the Amended Complaint
`
`to January 10, 2013. On January 2, 2013, PO’s litigation counsel contacted
`
`Petitioner’s litigation counsel by telephone and advised that U.S. Patent No.
`
`
`
`- 1 -
`
`

`

`IPR2014-00361
`
`8,329,216 had issued, and that PO sought to again amend its complaint to add the
`
`new patent. Petitioner’s litigation counsel advised that Petitioner would not oppose
`
`a motion for leave to amend the complaint if PO: (1) agreed that Petitioner did not
`
`have to respond to the Amended Complaint and (2) provided that Petitioner would
`
`have 30 days to answer the SAC (should the Court grant PO’s Motion for Leave).1
`
`The parties confirmed their oral agreement with an exchange of email
`
`correspondence on January 7, 2013. EX1026. Thus, the parties agreed that no
`
`further action would be taken with respect to the Amended Complaint pending the
`
`Court’s decision on PO’s request to file the SAC.
`
`On January 9, 2013, PO filed an Unopposed Motion to Amend the
`
`Complaint Under Rule 15(a). Ex. 2004. On January 10, 2013, Petitioner submitted
`
`a letter to the Court seeking to “extend the deadline for Amneal to answer, move or
`
`otherwise to respond to whichever of Plaintiffs’ complaints remains of record
`
`following the Court’s decision on that motion.” EX1027, at (emphasis added). On
`
`January 14, 2013, the Court granted PO’s motion and ordered it to file the SAC
`
`“promptly.” EX2006. PO electronically filed and served the SAC asserting the
`
`‘122 patent on January 17, 2013. No further action has ever been taken with
`
`respect to the Amended Complaint.
`
`
`1 If permitted, Petitioner will provide testimony about the January 2013 agreement.
`
`
`
`- 2 -
`
`

`

`IPR2014-00361
`
`Argument
`
`Petitioner timely filed the instant petition because the relevant time period
`
`under § 315(b) began on January 17, 2013, the date PO served and filed its SAC.2
`
`The parties’ agreement to take no action with respect to the Amended Complaint in
`
`favor of the SAC demonstrates that the Amended Complaint should have no effect.
`
`Had the parties not so agreed, Petitioner would have been obligated to answer on
`
`January 10, 2013, or face the risk of default judgment. But the parties agreed that
`
`Petitioner would only have to answer the SAC, absolving Petitioner of any
`
`obligation to respond to the Amended Complaint. In fact, neither party has ever
`
`taken any further action with respect to the Amended Complaint because it ceased
`
`to have legal effect after the Court authorized the filing and serving of the SAC.
`
`This agreement is consistent with the extensive body of case law that has
`
`long established that the filing of an amended complaint supersedes an original
`
`complaint, rendering the original complaint without legal effect. See Washer v.
`
`Bullitt County, 110 U.S. 558, 562 (1884); see also Synder v. Pascack Valley
`
`Hospital, 303 F.3d 271 (3rd Cir. 2002); Rhodes v. Robinson, 621 F.3d 1002 (9th Cir.
`
`2010); In re: Atlas Van Lines, Inc. v. Popular Bluff Transfer, 209 F.3d 1064, 1067
`
`(8th Cir. 2000); Massey v. Helman, 196 F.3d 727 (7th Cir. 1999); Friz v. Standard
`
`2 The relevant time period starts after filing and service of the SAC. See Motorola
`
`v. Arouse, IPR2013-00010, paper 20; see also IPR2014-00360, May 15, paper.
`
`
`
`- 3 -
`
`

`

`IPR2014-00361
`
`Sec. Life Ins. Co. of New York, 676 F.2d 1356 (11th Cir. 1987). Because the SAC
`
`superseded the Amended Complaint, the Amended Complaint is legally defunct.
`
`The parties’ agreement to dispense with the Amended Complaint is similar
`
`to other cases where the Board has found the § 315(b) time-bar to be inapplicable
`
`even though a complaint alleging infringement was served more than one year
`
`before the filing of a petition. For example, the Board has held that a complaint
`
`dismissed without prejudice under Fed. R. Civ. P. 41(a) does not trigger the §
`
`315(b) statutory bar because “the dismissal of the earlier action … nullifies the
`
`effect of the alleged service of the complaint on Petitioner.” Macauto USA v. BOS
`
`Gmbh & KG, IPR2012-00004, Paper 18, at 15-16. Here, the parties' agreement
`
`and order allowing PO to file the SAC confirmed the nullity of the earlier pleading.
`
`PO relies on Apple v. Virnetx, Inc. IPR2013-00348 to support its assertion
`
`that § 315(b) applies, but it is distinguishable. In Apple v. Virnetx, Inc., the
`
`patentee commenced two separate actions, in 2010 and 2012. Paper 14, 2. The first
`
`case proceeded to trial, resulting in a judgment. The petitioner argued that the
`
`second complaint nullified the earlier complaint. The Board rejected this argument
`
`based on the plain language of the statute. Id. at 4. Here, however, it is well-settled
`
`that the SAC nullified PO’s Amended Complaint.3
`
`PO did not cite Loral Space & Communications, Inc. v. Visat, Inc.,
`3
`
`IPR2014-00236 et al, which is also distinguishable. First, the Loral Space
`
`
`
`- 4 -
`
`

`

`IPR2014-00361
`
`In any event, any factual disputes should be resolved during the IPR trial.
`
`Petitioner seeks the opportunity to present testimony regarding the January 2013
`
`agreement. To the extent that PO seeks to introduce inconsistent or contradictory
`
`testimony, Petitioner requests the right to cross examine any such witness(es).
`
`Thus, any factual disputes regarding the existence, terms, and implications of the
`
`January 2013 Agreement should be resolved at trial. EX1025 (Tr. at 14:13-15 “To
`
`the extent we need to start getting into that, maybe that’s an issue better left for
`
`trial itself”).
`
`
`
`
`
`
`
`
`
`
`
`Respectfully submitted,
`
`
`
`
`
`
`
`
`
`Date: May 15, 2014
`Sterne, Kessler, Goldstein & Fox
`1100 New York Avenue, N.W.
`Washington, D.C. 20005-3934
`(202) 371-2600
`
`
`
`
`
`
`
`
`/Eldora L. Ellison/
`Eldora L. Ellison (Registration No. 39,967)
`Lead Attorney for Petitioner Amneal
`
`
`
`
`
`
`
`
`petitioner did not present any support for its argument regarding the effect of the
`
`
`
`amended complaint in that case. Id. at 7. Second, there is no evidence in Loral
`
`Space the parties had agreed that the petitioner need not answer the earlier
`
`pleading. To the contrary, significant litigation transpired regarding the merits of
`
`the earlier complaint, including a motion to dismiss, answer, and discovery. Here,
`
`no such activity had occurred by the filing of the SAC. EX2008.
`
`
`
`- 5 -
`
`

`

`IPR2014-00361
`
`CERTIFICATION OF SERVICE (37 C.F.R. §§ 42.6(e))
`
`
`
`The undersigned hereby certifies that the above-captioned Amneal
`
`Pharmaceuticals’ Petitioner’s Reply Brief on 35 USC §315(b) was served in its
`
`entirety on May 15, 2014, upon the following parties by email:
`
`Joseph A. Mahoney jmahoney@mayerbrown.com
`
`Erick J. Palmer ejpalmer@mayerbrown.com
`
`
`
`
`
`
`
`
` STERNE, KESSLER, GOLDSTEIN & FOX P.L.L.C.
`
`
`
`
`
`
`
`/Eldora L. Ellison/
`Eldora L. Ellison
`Lead Attorney for Petitioner Amneal
`Registration No. 39,967
`
`
`
`Date: May 15, 2014
`
`1100 New York Avenue, N.W.
`Washington, D.C. 20005 - 3934
` (202) 371-2600
`
`1852686_1.DOC
`
`
`
`
`
`
`- 6 -
`
`

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