• No results found

34:4

N/A
N/A
Protected

Academic year: 2022

Share "34:4"

Copied!
444
0
0

Loading.... (view fulltext now)

Full text

(1)

34:4 B ERKELEY T ECHNOLOGY L AW J OURNAL

2019

Pages 919 to 1348

Berkeley Technology Law Journal Volume 34, Number 4

Annual Review

(2)

Production: Produced by members of the Berkeley Technology Law Journal.

All editing and layout done using Microsoft Word.

Printer: Joe Christensen, Inc., Lincoln, Nebraska.

Printed in the U.S.A.

The paper used in this publication meets the minimum requirements of American National Standard for Information Sciences—

Permanence of Paper for Library Materials, ANSI Z39.48—1984.

Copyright © 2019 Regents of the University of California.

All Rights Reserved.

Berkeley Technology Law Journal University of California

School of Law 3 Law Building

Berkeley, California 94720-7200 editor@btlj.org

https://www.btlj.org

(3)

B ERKELEY T ECHNOLOGY L AW J OURNAL

VOLUME 34 NUMBER 4:ANNUAL REVIEW 2019 TABLE OF CONTENTS

ARTICLES

FOREWORD ... 919 Chris D. Chuang & Katharine H. Cummings

THE SUPREME COURT DENIES REBUTTAL:WESTERNGECO AND

SALVAGING EXTRATERRITORIAL BARS TO PATENT LIABILITY ... 925 Nicholas E. Calcaterra

EXPLORING PATENT TAKINGS AFTER OIL STATES ... 963 Concord Cheung

PATENT LITIGATION POST-SAS:NUANCED IMPLICATIONS OF BINARY

IPRINSTITUTION ... 993 Victoria Constance Huang

THE EVOLUTION OF PATENT VENUE IN THE AFTERMATH OF TC

HEARTLAND ... 1023 Alexander S. Krois

EYE SEE WHAT YOURE DOING:AN ANALYSIS OF ALLERGANS USE OF

TRIBAL SOVEREIGN IMMUNITY TO EVADE IPR OF THEIR EYE PRODUCT,

RESTASIS ... 1057 Julea Lipiz

ALICE GETS A HAIRCUT:BERKHEIMER AND AATRIX RESTORE FACTUAL

INQUIRY TO PATENT SUBJECT MATTER ELIGIBILITY UNDER § 101 ... 1081 Li Zhang

WILLIAMS V.GAYE:BLURRING THE LINES OF COPYRIGHT

INFRINGEMENT IN MUSIC ... 1113 Paymaneh Parhami

BELMORA LLC V.BAYER CONSUMER CARE AG:UNFAIR COMPETITION AS AN ALTERNATIVE APPROACH TO PENETRATE THE TERRITORIAL

PRINCIPLE IN U.S.TRADEMARK LAW ... 1145 Su Li

THE CLOUDACT:CREATING EXECUTIVE BRANCH MONOPOLY OVER

CROSS-BORDER DATA ACCESS ... 1177 Miranda Rutherford

(4)

ERECTING A PRIVACY WALL AGAINST TECHNOLOGICAL

ADVANCEMENTS:THE FOURTH AMENDMENT IN THE POST-CARPENTER

ERA ... 1205 Elle Xuemeng Wang

UNTANGLING SESTA/FOSTA:HOW THE INTERNETS “KNOWLEDGE

THREATENS ANTI-SEX TRAFFICKING LAW ... 1239 Megan McKnelly

THE FOREIGN RISK REVIEW MODERNIZATION ACT:HOW CFIUS

BECAME A TECH OFFICE ... 1267 Evan J. Zimmerman

DEFINING THE MARKET FOR TWO-SIDED PLATFORMS:THE SCOPE OF

OHIO V.AMERICAN EXPRESS ... 1305 Sanjana Parikh

SURVEY OF ADDITIONAL TOPICS IN IPLAW ... 1337

(5)

S UBSCRIBER I NFORMATION

The Berkeley Technology Law Journal (ISSN1086-3818), a continuation of the High Technology Law Journal effective Volume 11, is edited by the students of the University of California, Berkeley, School of Law and is published in print three times each year (March, September, December), with a fourth issue published online only (July), by the Regents of the University of California, Berkeley. Periodicals Postage Rate Paid at Berkeley, CA 94704-9998, and at additional mailing offices. POSTMASTER: Send address changes to Journal Publications, University of California, Berkeley Law—

Library, LL123 Boalt Hall—South Addition, Berkeley, CA 94720-7210.

Correspondence. Address all correspondence regarding subscriptions, address changes, claims for non-receipt, single copies, advertising, and permission to reprint to Journal Publications, University of California, Berkeley Law—Library, LL123 Boalt Hall—South Addition, Berkeley, CA 94705-7210; (510) 643-6600;

JournalPublications@law.berkeley.edu. Authors: see section titled Information for Authors.

Subscriptions. Annual subscriptions are $65.00 for individuals and $85.00 for organizations. Single issues are $30.00. Please allow two months for receipt of the first issue. Payment may be made by check, international money order, or credit card (MasterCard/Visa). Domestic claims for non-receipt of issues should be made within 90 days of the month of publication; overseas claims should be made within 180 days.

Thereafter, the regular back issue rate ($30.00) will be charged for replacement.

Overseas delivery is not guaranteed.

Form. The text and citations in the Journal conform generally to the THE CHICAGO

MANUAL OF STYLE (16th ed. 2010) and to THE BLUEBOOK:AUNIFORM SYSTEM OF

CITATION (Columbia Law Review Ass’n et al. eds., 20th ed. 2015). Please cite this issue of the Berkeley Technology Law Journal as 34 BERKELEY TECH. L.J. ___ (2019).

BTLJ O NLINE

The full text and abstracts of many previously published Berkeley Technology Law Journal articles can be found at https://www.btlj.org. Our site also contains a cumulative index; general information about the Journal; the BTLJ Blog, a collection of short comments and updates about new developments in law and technology written by BTLJ members; and BTLJ Commentaries, an exclusively online publication for pieces that are especially time-sensitive and shorter than typical law review articles.

(6)

I NFORMATION FOR A UTHORS

The Editorial Board of the Berkeley Technology Law Journal invites the submission of unsolicited manuscripts. Submissions may include previously unpublished articles, essays, book reviews, case notes, or comments concerning any aspect of the relationship between technology and the law. If any portion of a manuscript has been previously published, the author should so indicate.

Format. Submissions are accepted in electronic format through Scholastica online submission system. Authors should include a curriculum vitae and resume when submitting articles, including his or her full name, credentials, degrees earned, academic or professional affiliations, and citations to all previously published legal articles. The Scholastica submission website can be found at https://btlj.scholasticahq.com/for-authors.

Citations. All citations should conform to THE BLUEBOOK:AUNIFORM SYSTEM OF

CITATION (Columbia Law Review Ass’n et al. eds., 20th ed. 2015).

Copyrighted Material. If a manuscript contains any copyrighted table, chart, graph, illustration, photograph, or more than eight lines of text, the author must obtain written permission from the copyright holder for use of the material.

(7)

D ONORS

The Berkeley Technology Law Journal and the Berkeley Center for Law & Technology acknowledge the following generous donors to Berkeley Law’s Law and Technology Program:

Partners

COOLEY LLP HOGAN LOVELLS

FENWICK &WEST LLP ORRICK,HERRINGTON &

SUTCLIFFE LLP

WHITE &CASE LLP

Benefactors

BAKER BOTTS LLP COVINGTON &BURLING LLP

MORRISON &FOERSTER LLP POLSINELLI LLP

FISH &RICHARDSON P.C. SIDLEY AUSTIN LLP

JONES DAY WEIL,GOTSHAL &MANGES LLP

KIRKLAND &ELLIS LLP WILMER CUTLER PICKERING HALE AND DORR LLP

LATHAM &WATKINS LLP WILSON SONSINI GOODRICH &

ROSATI

MCDERMOTT WILL &EMERY WINSTON &STRAWN LLP

(8)

Corporate Benefactors

ATLASSIAN LITINOMICS

COMPUTER &COMMUNICATIONS

INDUSTRY ASSOCIATION MICROSOFT CORPORATION

CORNERSTONE RESEARCH MOZILLA

FUTURE OF PRIVACY FORUM NERAECONOMIC CONSULTING

GOOGLE,INC. NOKIA

HEWLETT FOUNDATION, THROUGH THE CENTER FOR LONG-TERM

CYBERSECURITY

PALANTIR

INTEL RLMTRIALGRAPHIX

INVENTIONSHARE THE WALT DISNEY COMPANY

(9)

Members

BAKER &MCKENZIE LLP KILPATRICK TOWNSEND &

STOCKTON LLP CROWELL &MORING KNOBBE MARTENS LLP

DESMARAIS LLP KWAN &OLYNICK LLP DURIE TANGRI LLP MORGAN,LEWIS &BOCKIUS LLP FINNEGAN,HENDERSON,FARABOW,

GARRETT &DUNNER,LLP PAUL HASTINGS LLP GTCLAW GROUP LLP&AFFILIATES ROBINS KAPLAN LLP

HAYNES AND BOONE,LLP ROPES &GRAY LLP HICKMAN PALERMO BECKER

BINGHAM SIMPSON THACHER &BARTLETT LLP IRELL &MANELLA LLP TROUTMAN SANDERS LLP KEKER VAN NEST &PETERS LLP VAN PELT,YI &JAMES LLP

KILBURN &STRODE WEAVER AUSTIN VILLENEUVE &

SAMPSON LLP

(10)

B OARD OF E DITORS 2018–2019

Executive Board Editor-in-Chief

ELLE XUEMENG WANG

Managing Editor CHRISTOPHER BROWN

Senior Articles Editors LAURA KELLEY

ALEX BARATA

YARDEN KAKON

Senior Executive Editor ANGELA LYONS-JUSTUS

Senior Production Editor MEGAN MCKNELLY

Senior Scholarship Editors AMIT ELAZARI

NOMI CONWAY

Senior Annual Review Editors CHRIS CHUANG

KATHARINE CUMMINGS

Senior Online Content Editor KATHERINE BURKHART

Editorial Board Submissions Editors

DANIEL CHASE

BEATRICE NYBERT

Production Editors CHELSEY MORI

HAILEY YOOK

JANELLE LAMB

LOUISE DECOPPET

Technical Editors MARIA BELTRAN

COLIN RAVELLE

Annual Review Editors JULEA LIPIZ

AISLINN SMALLING

Notes & Comments Editors NICK CALCATERRA

RYAN KWOCK

Symposium Editors DARIUS DEHGHAN

JESSICA HOLLIS

Web Content Editors CONCORD CHUNG

CHANTE ELIASZADEH

Podcast Editor

MIRANDA RUTHERFORD LLM Editors CRISTINA DE LA PAZ

MAYARA RUSKI

AUGUSTO SA

Member Relations Editor

CLARA CHOI Alumni Relations Editor

NIR MAOZ External Relations Editor ANDREA SHEN

Articles Editors CHELSEA ANDRE

TIAGO AQUINO

SAVANNAH CARNES

ELSIE CHEANG

SHERILYN CHEW

NITESH DARYANNANI

LESLIE DIAZ

GRACE FERNANDEZ

VESTA GOSHTASBI

ALEXANDER KROIS

NINA MILOSAVLJEVIC

CRISTINA MORA

COURTNEY REED

WESLEY TIU

MEI XUAN

LI ZHANG

(11)

M EMBERSHIP

Vol. 34 No. 4

Associate Editors MADISON BOWER

MUHTADI CHOUDHURY

MATTHEW CHUNG

ELLA PADON CORREN

CHRISTINA CROWLEY

DAVID FANG

YUAN FANG

HARRISON GERON

ADRIAN KINSELLA

CLARA KNAPP

VICKY WEI-CHI LEE

HUI-FANG LIN

ALLAA MAGEID

ARYEH PRICE

MARTA STUDNICKA

THERESA TAN

EMILEE WU

CHENZHAO YU

MICHELLE ZIPERSTEIN

Members GABRIELA ABREU

RIDDHI ADHIKARI

SAFIYA AHMED

MIMANSA AMBASTHA

NISHANT ANURAG

ARTIN AU-YEUNG

EMILY AVAZIAN

CHRISTOPHER

BARCLAY

VERONICA BOGNOT

ALEXIS CALIGIURI

ANNA ESCRIGAS

CANAMERAS

LAUREN CARROLL

CLAIRE CHANG

ALEX CHEMERINSKY

KEVIN CHEN

TIFFANY CHEN

YITING CHENG

ARI CHIVUKULA

CLAIRE CHRISTENSEN

SCOT CONNER

JULIEN CROCKETT

ARPITA DAS

KERENSA GIMRE

KELLY GO

SARAH GOLD

ANDREW GORIN

KEVIN GU

PETER GUTMAN

DEREK HA

CATHERINE HARRIS

DYLAN HELGESON

ERIN HILLIARD

ALLAN HOLDER

JEONGHOON HONG

FIONA HUANG

VICTORIA CONSTANCE

HUANG

JONATHAN HUANG

MAISIE IDE

YING JIANG

SAACHI JUNEJA

GIA JUNG

MARGARETH KANG

CHAITANYA KAUSHIK

JORGE KINA

ERIN MOORE

WALTER MOSTOWY

LIU QING NG

YUTA OISHI

BIHTER OZEDIRNE

VALINI PANTA

SORA PARK

CHULHYUN PARK

AYESHA RASHEED

NOELLE REYES

BRYCE ROSENBOWER

JOHN RUNKEL

RYAN JORGENSEN

ARMBIEN SABILLO

GINETTA SAGAN

TARINI SAHAI

SHREYA SANTHANAM

JOSH SEDGWICK

EVAN SEEDER

VICKY EL KHOURY

SFEIR

YAAMINI SHARMA

CARMEN SOBCZAK

(12)

SAMAPIKA DASH

TRENTON DAVIS

LIZ DOUGLASS

IDA EBEID

RUCHA EKBOTE

KATELYN FELICIANO

OLGAMARIS

FERNANDEZ

MORITZ FLECHSENHAR

YESENIA FLORES

JASON FRANCIS

LOGAN FREEBORN

RAVIN GALGOTIA

MARIBEL GARCIA

GARIMA GARG

DANNY KONINGISOR

MICHAEL KOSTUKOVSKY

KRISTINA KRASNIKOVA

SOUMYA JOGAIAH

KRISHNARAJU

EMMA LEE

JIAN LEE

KILLIAN LEFEVRE

ELLY LEGGATT

XIAOCAO LI

ASHLEIGH LUSSENDEN

AARTIKA MANIKTALA

MARISSA MEDANSKY

ALEX MILNE

ALEXANDRE MOCHON

SCHUYLER STANDLEY

LYRIC STEPHENSON

DANIEL TODD

VIVIANE TROJAN

DANIEL TWOMEY

EDGAR VEGA

YUHAN WANG

GRACE WINSCHEL

JOLENE XIE

KEVIN YANG

ALISON YARDLEY

CLARK ZHANG

JIEYU ZHANG

PENGPENG ZHANG

EVAN ZIMMERMAN

(13)

BTLJ A DVISORY B OARD

JIM DEMPSEY

Executive Director of the Berkeley Center for Law & Technology

U.C. Berkeley School of Law ROBERT C.BERRING,JR.

Walter Perry Johnson Professor of Law, Emeritus U.C. Berkeley School of Law

MATTHEW D.POWERS

Tensegrity Law Group, LLP

JESSE H.CHOPER

Earl Warren Professor of Public Law U.C. Berkeley School of Law

PAMELA SAMUELSON

Professor of Law & Information and Faculty Director of the Berkeley Center for Law & Technology

U.C. Berkeley School of Law

REGIS MCKENNA

Chairman and CEO Regis McKenna, Inc.

LIONEL S.SOBEL

Visiting Professor of Law U.C.L.A. School of Law PETER S.MENELL

Koret Professor of Law and Faculty Director of the Berkeley Center

for Law & Technology U.C. Berkeley School of Law

LARRY W.SONSINI

Wilson Sonsini Goodrich & Rosati

ROBERT P.MERGES

Wilson Sonsini Goodrich & Rosati Professor of Law and Faculty

Director of the Berkeley Center for Law & Technology U.C. Berkeley School of Law

MICHAEL STERN

Cooley LLP

DEIRDRE K.MULLIGAN

Assistant Professor and Faculty Director of the Berkeley Center for

Law and Technology

U.C. Berkeley School of Information

MICHAEL TRAYNOR

Cobalt LLP

JAMES POOLEY

James Pooley, PLC

THOMAS F.VILLENEUVE

Gunderson Dettmer Stough Villeneuve Franklin & Hachigian LLP

(14)

B ERKELEY C ENTER FOR L AW & T ECHNOLOGY

2018–2019

Executive Director JIM DEMPSEY

Faculty Directors

KENNETH A.BAMBERGER PETER S.MENELL PAMELA SAMUELSON

CATHERINE CRUMP ROBERT P.MERGES PAUL SCHWARTZ

CATHERINE FISK DEIRDRE K.

MULLIGAN ERIK STALLMAN

CHRIS HOOFNAGLE TEJAS NARECHANIA JENNIFER M.URBAN

SONIA KATYAL ANDREA ROTH MOLLY S.VAN

HOUWELING

Fellow

KATHRYN HASHIMOTO

Staff Directors

JANN DUDLEY IRYS SCHENKER

RICHARD FISK MATTHEW RAY

(15)

F

OREWORD

Chris D. Chuang& Katharine H. Cummings††

The Annual Review is a yearly publication of the Berkeley Technology Law Journal that provides a summary of many of the year’s major developments at the intersection of law and technology. Our aim is to provide a valuable resource for judges, policymakers, practitioners, students, and scholars. Each Note provides a primer on a particular area of law, a development in that area of law, and commentary on that development.

The thirteen Notes in this Issue continue a tradition of covering a wide range of topics. The Notes address developments in patent, copyright, trademark, privacy, technology-focused regulations and legislature, and antitrust.

I. PATENT LAW

The first Note1 in this Section examines the Supreme Court’s decision in WesternGeco v. ION Geophysical Corp.2 to uphold lost profit damages predicated on foreign, non-infringing actions following 35 U.S.C. § 271(f)(2) liability. This Note concludes that the Supreme Court’s use of the RJR Nabisco framework in rebutting the presumption against extraterritoriality opens foreign lost profit liability across all modes of 35 U.S.C. § 271 infringement. Additionally, the Note argues that practitioners and judges may restore the presumption’s role by importing comity concerns into a policy-driven proximate cause analysis for future infringement cases.

The second Note3 discusses the Supreme Court’s Oil States Energy Services, LLC v. Greene’s Energy Group, LLC4 decision, which upheld the constitutionality under Article III and the Seventh Amendment of the inter partes review (IPR)

© 2019 Chris D. Chuang & Katharine H. Cummings.

† Senior Annual Review Editor, Berkeley Technology Law Journal; J.D., 2019, University of California, Berkeley, School of Law.

†† Senior Annual Review Editor, Berkeley Technology Law Journal; J.D., 2019, University of California, Berkeley, School of Law.

1. Nicholas E. Calcaterra, Note, The Supreme Court Denies Rebuttal: WesternGeco and Salvaging Extraterritorial Bars to Patent Liability, 34 BERKELEY TECH.L.J. 925 (2019).

2. 138 S. Ct. 2129 (2018).

3. Concord Cheung, Note, Exploring Patent Takings After Oil States, 34 BERKELEY TECH.L.J. 963 (2019).

4. 138 S. Ct. 1365 (2018).

(16)

process. This Note further explores the undecided issue of whether the Takings Clause applies to IPR proceedings and describes a framework for applying regulatory takings analysis to patent rights taken during IPR.

The third Note5 examines the patent litigation landscape after the Supreme Court’s decision in SAS Institute Inc. v. Iancu.6 To explore the consequences of the decision, the Note analyzes 200 Inter Partes Review (IPR) decisions, district court orders on motions to stay pending IPR, and potential social and institutional ramifications of the decision. Based on this analysis, the Note also suggests pragmatic ways for practitioners to approach litigation strategy in the altered landscape.

The fourth Note7 examines how patent venue has continued to evolve in the aftermath of TC Heartland LLC v. Kraft Foods Group Brands LLC,8 which dramatically restricted where plaintiffs can bring patent infringement suits.

Particularly, this Note looks at how both the Federal Circuit and litigants have reacted to the decision, and uses quantitative analysis to map the changes in the landscape of patent venue through the end of 2018.

The fifth Note9 evaluates the Federal Circuit’s decision in Saint Regis Mohawk Tribe v. Mylan Pharmaceuticals,10 which found that tribal sovereign immunity was not an acceptable defense during inter partes review. This Note compares uses of state and tribal sovereign immunity during patent review procedures and patent litigation. Ultimately, this Note argues that sovereign immunity is an inapplicable defense during inter partes review and currently draws an unnecessary distinction between state and tribal immunity.

The sixth Note11 examines recent Federal Circuit cases concerning the factual inquiry underlying the Mayo/Alice patent subject matter eligibility framework. The Note asserts that the Federal Circuit’s decisions represent an overdue clarification of the uncertainty surrounding patent litigation that involves this framework. This Note also proposes guidelines for the application of an evidentiary principle in the adjudication of patent subject matter eligibility.

5. Victoria Constance Huang, Note, Patent Litigation Post-SAS: Nuanced Implications of Binary IPR Institution, 34 BERKELEY TECH.L.J. 993 (2019).

6. 138 S. Ct. 1348 (2018).

7. Alexander S. Krois, Note, The Evolution of Patent Venue in the Aftermath of TC Heartland, 34 BERKELEY TECH.L.J. 1023 (2019).

8. 137 S. Ct. 1514 (2017).

9. Julea Lipiz, Note, Eye See What You’re Doing: An Analysis of Allergan’s Use of Tribal Sovereign Immunity to Evade IPR of Their Eye Product, Restasis, 34 BERKELEY TECH.L.J. 1057 (2019).

10. 896 F.3d 1322 (Fed. Cir. 2018).

11. Li Zhang, Note, Alice Gets a Haircut: Berkheimer and Aatrix Restore Factual Inquiry to Patent Subject Matter Eligibility Under § 101, 34 BERKELEY TECH.L.J. 1081 (2019).

(17)

II. COPYRIGHT LAW

The Note12 in this Section evaluates the Ninth Circuit’s decision in Williams v. Gaye,13 where the court held that the global best-selling single of 2013,

“Blurred Lines,” infringed Marvin Gaye’s copyright in his 1977 hit song “Got to Give It Up.” The Note argues that the Ninth Circuit’s decision fails to distinguish between legally protectable and unprotectable elements in music and thus imposes a chilling effect on musical creativity and innovation by allowing composers to seek copyright protection over entire styles and grooves. Specifically, this Note shows how a particular limiting doctrine of copyright law, the scenes a faire doctrine, constitutes an already-existing yet underutilized tool that can bring into legal consideration the tradition and necessity of sharing common elements in music.

III. TRADEMARK LAW

The Note14 in this Section focuses on the circuit split over the territoriality principle of U.S. trademark law in protecting non-registered and not-in-use foreign trademarks in the United States. The Note confirms the value of the Belmora15 decision that allows foreign trademark owners to use the unfair competition clause to fight against trademark abuse, while parsing out the considerations that led to the diverging court decisions using both legal and empirical analysis.

IV. PRIVACY LAW

The first Note16 in this Section analyzes the Clarifying Lawful Overseas Use of Data (CLOUD) Act, passed in March 2018. The CLOUD Act was designed to mitigate existing problems with cross-border data demands made by U.S. and foreign law enforcement. However, the Note argues that in doing so, the law gives the executive branch significant control over extraterritorial data access, which can lead to problems of due process and conflicts of values.

12. Paymaneh Parhami, Note, Williams v. Gaye: Blurring the Lines of Copyright Infringement in Music, 34 BERKELEY TECH.L.J. 1113 (2019).

13. Williams v. Gaye, 885 F.3d 1150 (9th Cir. 2018).

14. Su Li, Note, Belamora LLC v. Bayer Consumer Care AG: Unfair Competition as an Alternative Approach to Penetrate the Territorial Principle in U.S. Trademark Law, 34 BERKELEY

TECH.L.J. 1145 (2019).

15. 819 F.3d 697 (4th Cir. 2016).

16. Miranda Rutherford, Note, The CLOUD Act: Creating Executive Branch Monopoly Over Cross-Border Data Access, 34 BERKELEY TECH.L.J. 1177 (2019).

(18)

The second Note17 is created in the wake of the Carpenter v. United States18 decision. Carpenter v. United States is probably the most significant privacy case of this generation. It has a huge impact on data privacy, the third-party doctrine, and Fourth Amendment searches. This Note summarizes this monumental decision, traces the history of data privacy and the third-party doctrine, and discusses the future of the Fourth Amendment in the Post- Carpenter era.

V. REGULATION AND LEGISLATION

The first Note19 in this Section discusses the history and text of the Allow States and Victims to Fight Online Sex Trafficking Act of 2018 (SESTA/FOSTA),20 which creates new criminal and civil liability for interactive computer services (ICSs) involved in the facilitation of sex trafficking on the Internet. Most significantly for the purposes of this Note, SESTA/FOSTA interjects a “knowledge” standard in the existing sex trafficking statute.21 This Note asserts that this knowledge standard muddles the existing sex trafficking statute, concluding that courts should draw on other areas of the law as well as real-world ICS practices in defining ICS knowledge of user-posted, sex trafficking-related content.

The second Note22 analyzes and explains the Foreign Risk Review Modernization Act, tracing its history and analyzing its contents as perhaps the most consequential change in the history of the Committee on Foreign Investment in the United States, commonly known as CFIUS. Ultimately, it argues that Congress took an obscure national security committee and turned it into a quasi-agency technology regulator—but by accident, and without properly equipping CFIUS to do its new job.

17. Elle Xuemeng Wang, Note, Erecting a Privacy Wall Against Technological Advancements:

The Fourth Amendment in the Post-Carpenter Era, 34 BERKELEY TECH.L.J. 1205 (2019).

18. 138 S. Ct. 2206 (2018).

19. Megan McKnelly, Note, Untangling SESTA/FOSTA: How the Internet’s “Knowledge”

Threatens Anti-Sex Trafficking Law, 34 BERKELEY TECH.L.J. 1239 (2019).

20. See Allow States and Victims to Fight Online Sex Trafficking Act of 2017, Pub. L.

No. 115-164 (2018).

21. See id. at § 5.

22. Evan J. Zimmerman, Note, The Foreign Risk Review Modernization Act: How CFIUS Became a Tech Office, 34 BERKELEY TECH.L.J. 1267 (2019).

(19)

VI. ANTITRUST

The Note23 in this Section examines the consequences of the Supreme Court’s decision in Ohio v. American Express24 on technology platforms. It applies an economic lens to the majority holding to understand how the decision affects the potential antitrust liability faced by platform companies.

This Note analyzes the dynamics of commonly-recognized platform business models to argue that the ruling should not broadly confer antitrust immunity on two-sided platforms.

23. Sanjana Parikh, Note, Defining the Market for Two-Sided Platforms: The Scope of Ohio v.

American Express, 34 BERKELEY TECH.L.J. 1305 (2019).

24. 138 S. Ct. 2274 (2018).

(20)
(21)

T

HE

S

UPREME

C

OURT

D

ENIES

R

EBUTTAL

: W ESTERN G ECO

AND

S

ALVAGING

E

XTRATERRITORIAL

B

ARS TO

P

ATENT

L

IABILITY Nicholas E. Calcaterra

I. INTRODUCTION

Since the 17th century, Westphalian sovereignty and comity have been influential fixtures in international law.1 These doctrines, by prescribing mutual respect of exclusive control over one’s country and citizens, compel governments to prevent global conflicts.2 Likewise, the United States has adopted comity concepts in different areas of law.3

In recent years, the Supreme Court and Federal Circuit have wrestled with questions of how to evaluate domestic patent laws in conflict with the presumption against extraterritoriality, a comity-related doctrine.4 The presumption holds that courts should presume U.S. law is only valid within its territories.5 Unless the presumption has been rebutted, courts should wait for instruction from Congress before applying laws extraterritorially.6 Otherwise, the courts must ensure, or at least rationalize, that the law’s extraterritorial effects come from a domestic application.7

The presumption against extraterritoriality has had a powerful role in limiting patent infringement liability. Along with causation and a patent’s technical scope, the geographic scope of a patent defines the boundaries of

DOI: https://doi.org/10.15779/Z38MG7FW4W © 2019 Nicholas E. Calcaterra.

† Nicholas E. Calcaterra, Ph.D., J.D. Candidate, 2020, University of California, Berkeley, School of Law.

1. Joel R. Paul, The Transformation of International Comity, 71 LAW &CONTEMP.PROBS. 19, 22 (2008).

2. See id.; see also STEPHEN D.KRASNER,SOVEREIGNTY,ORGANIZED HYPOCRISY 10 (1999).

3. See William S. Dodge, International Comity in American Law, 115 COLUM.L.REV.2071, 2087(2015).

4. See Am. Banana Co. v. United Fruit Co., 213 U.S. 347, 356 (1909).

5. See RJR Nabisco, Inc. v. European Cmty., 136 S. Ct. 2090, 2100 (2016) (“Absent clearly expressed congressional intent to the contrary, federal laws will be construed to have only domestic application.”).

6. See id.

7. See id.

(22)

infringement inquiries.8 In Power Integrations v. Fairchild Semiconductor International,9 the Federal Circuit solidified a patent’s geographic scope as an independent limitation, barring damages predicated on foreign events.10 The Supreme Court in WesternGeco LLC v. ION Geophysical Corp., however, has put this framework on precarious grounds.

In WesternGeco, ION was previously found liable for infringement under 35 U.S.C. § 271(f)(2).11 In addition to a reasonable royalty, WesternGeco alleged they were entitled to lost profits due to lost contracts on the high seas.12 The Federal Circuit denied the claim, arguing that a foreign lost profits award would create an extraterritorial application of U.S. patent laws.13

The Supreme Court reversed, utilizing the RJR Nabisco two-step inquiry for determining impermissible extraterritorial application of U.S. law.14 This inquiry first asks whether “the presumption . . . has been rebutted” by Congress when constructing the statute.15 If not, or if a court chooses to skip the first step, the court must then ask “whether the case involves a domestic application of the statute.”16 Skipping to the second step, the Court in WesternGeco found that the focus of § 284 was to regulate infringement.17 Noting that § 271(f) requires a defendant to supply components from the United States, the Court found that awarding lost profit damages for the infringement was a permissible domestic application of § 284.18 The Court reversed the Federal Circuit, awarding lost profit damages to WesternGeco.19

However, the majority’s analysis under the RJR Nabisco framework seems arbitrary and counterintuitive. Construing the statutory focus of § 284 as only

“infringement,” as opposed to “adequate . . . compensate[ion] for the infringement” appears to contradict much of the Court’s own language and argument.20 Furthermore, relegating the focus of the statute to only the

8. See Stephan Yelderman, Proximate vs. Geographic Limits on Patent Damages, 7 IPTHEORY

2,2,7–9 (2018) (discussing how patent jurisprudence holds parties liable only if they caused infringement of the legal invention (technical scope) within U.S. jurisdiction (geographic scope)).

9. Power Integrations, Inc. v. Fairchild Semiconductor Int’l, Inc., 711 F.3d 1348, 1371 (Fed. Cir. 2013) (“It is axiomatic that U.S. patent law does not operate extraterritorially to prohibit infringement abroad.”).

10. See id.

11. See WesternGeco LLC v. ION Geophysical Corp., 138 S. Ct. 2129, 2135 (2018).

12. Id.

13. WesternGeco LLC. v. ION Geophysical Corp., 837 F.3d 1358, 1360 (Fed. Cir. 2016).

14. See id. at 2136; see generally RJR Nabisco, Inc. v. European Cmty., 136 S. Ct. 2090, 2101 (2016) (promulgating a two-step framework for deciding extraterritoriality questions).

15. RJR Nabisco, 136 S. Ct. at 2101.

16. Id.

17. See WesternGeco, 138 S. Ct. at 2137.

18. Id. at 2138.

19. Id. at 2139.

20. 35 U.S.C. § 284 (2012).

(23)

infringement at issue insulates the statute from its purpose and other important jurisprudence.

Similarly, the Court failed to consider other prevailing doctrines and important questions. The Court explicitly chose to ignore questions of proximate cause.21 By skipping step one of the RJR Nabisco analysis of § 284, the Court also ignored WesternGeco’s assertion that the presumption against extraterritoriality did not apply to any damages provisions.22 But perhaps most perplexing is the Court’s diminishment of damages statutes to “merely the means by which the statute achieves its end of remedying infringements,”

instead of considering how they affect parties in an extraterritorial patent enforcement context.23 By neglecting these important aspects and questions, the Court sought to restrain their holding.24

Yet the Court inadvertently exposed all modes of infringement to the recovery of foreign lost profits. By disregarding the context of § 284 to

“affor[d] patent owners complete compensation” for infringement, the Court’s analysis allows for easy application to other infringement scenarios.25 It is likely that the Court accidentally overturned Power Integrations, terminating the presumption against territoriality as applied to damages.

The loss of geographic limitations on patent damages, however, may be rectified. Practitioners and judges can resurrect the purpose of the presumption against extraterritoriality by importing comity concerns in defining proximate cause. By stressing the important policy of respecting foreign sovereignty, geographic scope may again play a role in limiting patent liability in a manner amenable to both WesternGeco and the previous Federal Circuit holdings.

Part II of this Note gives a brief history of the presumption against extraterritoriality as applied to patent law. Part II also outlines the role of proximate cause in limiting patent liability and how this role interacts with the presumption against extraterritoriality. Part III details the procedural history of WesternGeco and the Supreme Court’s decision. Part IV analyzes how the Court used the RJR Nabisco framework, rejected ION’s arguments, and the consequences of the decision. Part IV also argues that the Supreme Court’s demotion of damages statues and use of the RJR Nabisco two-step inquiry were incorrect, leading to gaps in damages jurisprudence and recovery for infringement damages without territorial restraint. Part V argues that judges and practitioners may be able to limit a patent’s geographical scope, in

21. WesternGeco, at 2139 n.3.

22. Id. at 2136.

23. Id. at 2138.

24. Id. at 2139 n.3 (“In reaching this holding, we do not address the extent to which other doctrines, such as proximate cause, could limit or preclude damages in particular cases.”).

25. Id. at 2137 (quoting Gen. Motors Corp. v. Devex Corp., 461 U. S. 648, 655 (1983)).

(24)

harmony with WesternGeco, by imputing comity as a policy consideration for determining proximate cause.

II. THE PRESUMPTION AGAINST

EXTRATERRITORIALITY, PROXIMATE CAUSE, AND THEIR INEVITABLE CLASH IN PATENT LAW

The presumption against extraterritorial application of U.S. patent rights has precedent dating back to 1857.26 Since then, the courts and Congress have mostly upheld the tradition of confining patent rights “within the limits of the United States.”27 Even in instances of legislation by Congress to explicitly rebut that presumption, such as the creation of §§ 271(f) and (g), the courts have applied these statutes narrowly.28 And although the scope of these exceptions continues to be adjusted, the presumption against extraterritoriality itself remains a stalwart of U.S. patent law.29

Similarly, the doctrine of proximate cause as a limiting factor to patent infringement damages has been nearly as longstanding.30 Defining “proximate cause,” however, has not been as simple and consistent as demarcating U.S.

borders. Like its sister doctrine in torts, proximate causation of patent infringement has steadily evolved.31 Originally proximate cause was nebulously characterized, though the general notion was that courts should only award damages that were the “direct and immediate” result of the infringement.32 More recently, it has been defined to include damages that were “reasonably foreseeable” at the time of patent infringement.33 Nevertheless, these

26. See Brown v. Duchesne, 60 U.S. 183, 195 (1857).

27. Id.; see Timothy R. Holbrook, Boundaries, Extraterritoriality, and Patent Infringement Damages, 92 NOTRE DAME L.REV.1745,1760–62(2017).

28. See Microsoft Corp. v. AT&T Corp., 550 U.S. 437, 442 (2007) (“Recognizing that

§ 271(f) is an exception to the general rule that our patent law does not apply extraterritorially, we resist giving the language in which Congress cast § 271(f) an expansive interpretation.”); see also Bayer AG v. Housey Pharm., Inc., 340 F.3d 1367 (Fed. Cir. 2003) (holding that § 271(g) only applies to the importation of physical objects and not information); see generally Life Techs.

Corp. v. Promega Corp., 137 S. Ct. 734 (2017) (holding that § 271(f)(1) is limited quantitatively and not qualitatively thus the importation of a single component, of a necessary plurality, is not infringing).

29. See Life Techs. Corp. v. Promega Corp., 137 S. Ct. 734 (2017); see also Power Integrations, Inc. v. Fairchild Semiconductor Int’l, Inc., 711 F.3d 1348, 1371 (Fed. Cir. 2013) (“It is axiomatic that U.S. patent law does not operate extraterritorially to prohibit infringement abroad.”).

30. See Carter v. Baker, 5 F. Cas. 195, 202 (C.C.D. Cal. 1871) (No. 2,472).

31. See generally Patrick J. Kelley, Proximate Cause in Negligence Law: History, Theory, and the Present Darkness, 69 WASH.U.L.Q. 49 (1991) (discussing developments in proximate cause doctrine as applied to negligence law); Yelderman, supra note 8, at 1–5, 8–10 (citing early and more recent uses of proximate cause doctrine in patent law).

32. Buerk v. Imhaeuser, 4 F. Cas. 594, 595 (C.C.S.D.N.Y. 1876).

33. See Rite-Hite Corp. v. Kelley Co., 56 F.3d 1538, 1546–47 (Fed. Cir. 1995).

(25)

standards do not address all considerations for proximate cause in patent law, especially policy-driven goals.34

Unsurprisingly, cases that feature the interaction of both doctrines are more convoluted. Early Supreme Court precedent allowed for compensation based on sales to foreign customers while simultaneously barring similar remedies for sales wholly occurring outside the United States.35 More recently the Federal Circuit attempted to set a bright-line rule, “cut[ting] off the chain of causation” at extraterritorial acts, preventing the award of damages predicated on those acts.36 Therefore, the presumption against extraterritoriality applied to both questions of infringement liability and damages.

Although the Federal Circuit followed this reasoning again in WesternGeco, the Supreme Court reversed, allowing recovery of lost profit damages predicated on non-infringing foreign use.37 In doing so, the Court prioritized the policy of fully compensating patent owners over the longstanding presumption against extraterritoriality. And despite petitioners raising the possible use of proximate cause analysis to reach this conclusion at oral argument, the Court did not examine the issue in its holding for concerns of its wide-reaching implications.38 Thus, for the time being, the Court has recognized proximate cause and the presumption against extraterritoriality as two distinct inquiries.

But in an ever-connected global society, these two doctrines are fated to a head-on collision. Notwithstanding the Supreme Court’s decision to avoid the matter in WesternGeco, there may be room for the Federal Circuit to limit the lost profit damages by a novel proximate cause theory. But the individual jurisprudence of both doctrines, along with cues from cases involving their combination, may give hints at how courts will decide this inevitable conflict.

A. THE PRESUMPTION AGAINST EXTRATERRITORIALITY AND

ENFORCING THE GEOGRAPHICAL SCOPE OF PATENT LAW

Justice Oliver Wendell Holmes, in his American Banana Co. v. United Fruit Co. opinion, accurately captured the philosophy of the presumption against

34. See id. at 1546 (“The general principles expressed in the common law tell us that the question of legal compensability is one to be determined on the facts of each case upon mixed considerations of logic, common sense, justice, policy and precedent.”) (quoting W.PAGE KEETON ET AL.,PROSSER &KEETON ON THE LAW OF TORTS § 42, at 279 (5th ed. 1984)) (internal quotation marks omitted).

35. See Goulds’ Mfg. Co. v. Cowing, 105 U.S. 253 (1882); Dowagiac Mfg. Co. v. Minn.

Moline Plow Co., 235 U.S. 641 (1915).

36. Power Integrations, Inc. v. Fairchild Semiconductor Int’l, Inc., 711 F.3d 1348, 1172 (Fed. Cir. 2013).

37. See WesternGeco LLC v. ION Geophysical Corp., 138 S. Ct. 2129, 2139 (2018).

38. Id. at 2135, 2139 n.3; see Transcript of Oral Argument at 14, WesternGeco LLC v.

ION Geophysical Corp., 138 S. Ct. 2129 (2018) (No. 16-1011).

References

Related documents

In the first published study of its kind, researchers from the Catholic University/ Policlinico Gemelli in Rome, Italy, and NewYork-Presbyterian/Weill Cornell Medical Center

Kanji Kana English いっぷん いっぷん one minute にふん にふん two minutes さんぷん さんぷん three minutes よんぷん よんぷん four minutes ごふん ごふん

connection to a server). Therefore, each location app developer must start from scratch in implementing location-aware functionality in an application. 2) Commercial

As an example of the changes in computer science education in China, we describe the Computer Science major in the School of Electronics Engineering and Computer Science at Peking

If cryptocurrency service businesses were named as prescribed intermediary services and made subject to bespoke regulations which placed similar disclosure obligations and

• High levels of Weekly Comp give the Work and Earners accounts the highest incurred costs. • Medical costs dominate Non-Earners Total

Access the Selector from SSD Web Support (CS Expert Support) by clicking on 'Download MSDS, Drivers, Firmware and more'. SPECIAL NOTE : Solution contribution by Clinton

○ If BP elevated, think primary aldosteronism, Cushing’s, renal artery stenosis, ○ If BP normal, think hypomagnesemia, severe hypoK, Bartter’s, NaHCO3,