Genentech Inc and Central Sydney Area Health Service v Celtrix Pharmaceuticals Incorporated

Case

[1993] APO 39

19 May 1993

No judgment structure available for this case.

official notice

decision of a delegate of the commissioner of patents

Application        :    No. 629820 in the name of GENENTECH INC and CENTRAL SYDNEY AREA HEALTH SERVICE

Title:    Production of Insulin-like Growth  Factor Binding Protein

Action:    Opposition by CELTRIX PHARMACEUTICALS INC, and a request for dismissal of the opposition

Decision:    Issued            .  Request for  dismissal refused.

patents act 1990

decision of a delegate of the commissioner of patents

Re:Patent Application No. 629820 by GENENTECH INC and

CENTRAL SYDNEY AREA HEALTH SERVICE, opposition thereto

by CELTRIX PHARMACEUTICALS INCORPORATED, and a request

for dismissal of the opposition

background

Patent application 629820 by Genentech Inc and Central Sydney Area Health Service (Genentech) was advertised accepted on 15 October 1992. A notice of opposition under sec 59(1) of the Patents Act 1952 was served by Celtrix Pharmaceuticals Incorporated (Celtrix) on 19 January 1993. On 19 February 1993 Celtrix, in accordance with reg 5.4 of the Patents Regulations 1990, served a statement purporting to set out the grounds of opposition and the particulars relating to each ground. On 9 March 1993 Genentech invoked the provisions of reg 5.5 and requested the Commissioner to dismiss the opposition.

I heard the request for dismissal by telephone on 16 April 1993.  Genentech was represented by Dr Peter A. Stearne, patent attorney with Davies Collison Cave, and Celtrix was represented by Dr William Pickering, patent attorney with F B Rice & Co.

THE STATEMENT OF GROUNDS AND PARTICULARS

So far as is material to the present request, the statement of grounds and particulars reads as follows:

"GROUNDS

B.  The invention as claimed in Claims 1 to 29 is
      not a patentable invention because the
       invention so far as claimed in any one of
      those claims, was published in Australia
      before the priority date of those claims.

C.  The invention as claimed in Claims 1 to 29
      was, before the priority date of those
      claims, otherwise not novel in Australia.

D.  The invention as claimed in Claims 1 to 29
      was obvious and did not involve an inventive
      step, having regard to what is known or used
      in Australia on or before the priority date
      of those claims.
   PARTICULARS

B-C The invention as claimed by claims 1 to 29 is
      not a patentable invention and was not (sic)
      prior published in Australia before the
      priority date of those claims or was
      otherwise not novel in Australia because the
      invention is disclosed in the following
      documents:

1.  Australian Patent application No 17020/88
      (627423) entitled "Human somatomedin carrier
      protein sub units and process for producing
      them" in the name of Biogrowth Incorporated.

2.  Spencer et al. (1984) "Isolation of the human
      plasma carrier protein for somatomedin",
      Abstracts, 7th International Congress of
      Endocrinology, p. 1278.

3.  Baxter et al. (1985) "Purification and
      radioimmunoassay of insulin-like growth
      factor binding protein from human plasma",
      Program and Abstracts, The Endocrine Society,
      67th Annual Meeting, p. 201.

4.  Grant et al. (1986) "Separation of the
      insulin-like growth factor binding proteins
      in human serum and characterization of the
      acid stable component of the 150K species",
      Program and Abstracts, The Endocrine Society,
      68th Annual Meeting, p. 83.

5.  Gelato et al. (1986) "Heterogeneity of
      insulin-like growth factor (IGF) binding
      protein species derived from the M=150K IGF
      -binding protein complex", Program and
      Abstracts, The Endocrine Society, 68th Annual
      Meeting, p. 83.

6.  Martin, J.L. and Baxter, R.C. (1986)
      "Insulin-like growth factor-binding protein
      from human plasma, purification and
      characterization", J. Biol. Chem.
      261:8754-8760.

7.  Baxter et al. (1986) "Growth hormone
      -dependent insulin-like growth factor (IGF)
      binding protein from human plasma differs
      from other human IGF binding proteins",
      Biochem. Biophys. Res. Comm.
      139:1256-1261.

8.  Hintz, R.L. (1984) Clinics in Endo. and
      Metabol. 13:31-42.

9.  Povoa et al. (1984) Eur. J. Biochem.
      144:199-204.

10. Baxter et al. (1987) J. Clin. Endo. Metabol.
      65:423-431.

11. Martin, J.L. and Baxter, R.C. (1985) J. Clin.
      Endo. Metabol. 61:799-801.

12. Baxter, R.C. and Martin, J.L. (1986) J. Clin.
      Invest. 78:1504-1542.

13. Morris et al. (1982) "Structure of
      somatomedin- binding protein: alkaline
      pH-induced dissociation of an acid-stable,
      60,000 molecular weight complex into smaller
      components", Endocrinology 111(3):801-805.

14. Kuffer et al. (1984) "Partial purification of
      a specific inhibitor of the insulin-like
      growth factors by reverse-phase high
      -performance liquid chromatography",
      J. Chromatography 336:87-92.

15. Knauer et al. (1981) "Purification and
      characterization of multiplication
      -stimulating activity (MSA) carrier protein",
      Cellular Biochem. 15:177-191.

16. Enberg, G. (1986) "Purification of a high
      molecular weight somatomedin binding protein
      from human plasma", Biochem. Biophys. Res.
      Comm. 135(1):178-182.

17. Povoa et al. (1985) "The somatomedin-binding
      protein isolated from a human hepatoma cell
      line is identical to the human amniotic fluid
      somatomedin-binding protein", Biochem.
      Biophys. Res. Comm. 128(3):1071-1078.

18. Drop et al. (1984) "Immunoassay of a
      somatomedin-binding protein from human
      amniotic fluid: levels in fetal, neonatal,
      and adult sera", J. Clin. Endocrinol.
      Metabol. 59(5):908-915.

19. Wood, W.I. et al. (1988) "Cloning and
      expression of the growth hormone-dependent
      insulin-like growth factor binding protein",
      Molecular Endocrinol. 2:1176-1185.

20. Baxter, R.C. et al. (1987) "Binding proteins
      for insulin-like growth factors in adult rat
      serum.  Comparison with other human and rat
      binding proteins", Biochem. Biophys. Res.
      Comm. 147:408-415.

21. Leung, D.W. et al. (1987) "Growth hormone
      receptor and serum binding protein:
      purification, cloning and expression",
      Nature 330:537-543.

22. Oshima, A. et al. (1988) "The human cation-
      independent mannose 6-phosphate receptor.
      Cloning and sequence of the full-length cDNA
      and expression of functional receptor in COS
      cells", J. Biol. Chem. 263:2553-2562.

23. Brinkman, A. et al. (1988) "Isolation and
      characterization of a cDNA encoding the low
      molecular weight insulin-like growth factor
      binding protein (IBP-1)", The EMBO Journal,
      7:2417-2423.

24. Lee, Y.-L. et al. (1988) "Insulin-like growth
      factor (IGF) binding protein complementary
      deoxyribonucleic acid from human HEP G2
      hepatoma cells: predicted protein sequence
      suggests an IGF binding domain different from
      those of the IGF-I and IGF-II receptors",
      Molecular Endocrinology, 2:404-411.

25. Brewer, M.T. et al. (1988) "Cloning,
      characterization, and expression of a human
      insulin-like growth factor binding protein",
      Bio. Chem. Res. Comm. 152:1289-1297.

26. Grundmann, U. et al. (1988) "Cloning of cDNA
      encoding human placental protein 12 (PP12):
      binding protein for IGFI and somatomedin",
      Nucl. Acids Res. 16:8711.

27. Martin, J.L. et al. (1986) "Insulin-like
      growth factor-binding protein from human
      plasma.  Purification and characterization",
      J. Biol. Chem. 261:8754-8760.

28. Baxter, R.C. (1988) "The insulin-like growth
      factors and their binding proteins", Comp.
      Biochem. Physiol. 91B:229-235.

D   The invention as claimed in claims 1 to 29
      was obvious and did not involve an inventive
      step in the view (sic) of the common general
      knowledge in Australia at the priority date
      to which Application 629820 is entitled.  The
      common general knowledge included the
      disclosures in the following:

1.  Maniatis et al. (1982) Molecular Cloning: A
      Laboratory Manual (New York: Cold Spring
      Harbor Laboratories).

2.  Tissure Culture (1973) (Academic Press, Kruse
      and Patterson, eds.).
   3.  Boliver et al. (1977) Gene 2:95-113.

4.  Urlaub and Chasin (1980) Proc. Natl. Acad.
      Sci. USA 77:4216 [CHO cells].

5.  Gething et al. (1981) Nature 293:620-625.

6.  Mantei et al. (1981) Nature 281:40-46.

7.  Veira and Messing (1987) Methods Enzymol.
      153:3-11.

8.  Messing et al. (1981) Nucl. Acids Res.
      9:309-321.

9.  Maxam et al. (1980) Methods Enzymol. 65:499.

10. Henzel et al. (1987) Chromatography
      404:41-52.

11. Lawn et al. (1981) Nucl. Acids Res. 9:6103
      -6114.

12. Goeddel et al. (1980) Nucl. Acids Res.
      8:4057."

Before proceeding further, it is worth noting that the statement sets forth ground B in terms of sec 59 of the Patents Act 1990 in which the test for validity is based on the concept of a "patentable invention". As sec 234(3) of the Patents Act 1990 applies to the present application the opposition cannot, strictly speaking, rely on this ground. However, upon applying a purposive construction to the statement (Borden Inc v Elkem A/S (1992) AIPC 90-893), I believe there is a clear inference in respect of ground B that Celtrix intends to rely on sec 59(1)(e) of the Patents Act 1952.

REQUEST FOR DISMISSAL

The request for dismissal is based upon the following deficiencies  alleged by Genentech to exist in the statement of particulars:

"1. The particulars of ground B & C are defective in
    that a number of cited references were published
    after the priority date of the claims, this
    being 22 March 1988.

2. Particulars in respect of ground D are defective in
    that their generality is insufficient to properly
    inform the Applicant of the case to be met.  The
    particulars do not set forth the material facts of
    this ground of opposition.  There is no reference
    to the particular field of common general knowledge
    on which reliance is made.  Common general
    knowledge is said to "include" the disclosures in
    12 references.  The term "include" is uncertain and
    may embrace other disclosures not listed in the
    Statement of Particulars.  Moreover, there is no
    reference to what information in the various
    references is relevant to this case."

DECISION

Relevant Law

Dismissal of an opposition is covered by the provisions of reg 5.5 of the Patents Regulations 1990 which read as follows:

"Dismissal of opposition

5.5 (1) An applicant may:

(a) within 1 month of being served with a copy of
 a statement by an opponent under subregulation
 5.4(1) ("filing of statement"); or

(b) if the complete specification in relation to
 an opposed application is re-examined under
 subsection 97(1) of the Act ("re-examination of
 complete specifications") - within 1 month from
 the day when  the re-examination is completed
 under regulation 9.5 ("completion of
 re-examination);
 request the Commissioner in the approved form to
 dismiss the opposition.

(2) As soon as practicable after a request is
 made, the Commissioner must inform the opponent
 of the request having been made.

(3) The Commissioner may dismiss the opposition
 whether or not the applicant has requested
 dismissal of the opposition."

The general principle in considering a request for dismissal is that an opposition should only be dismissed if it is "so obviously untenable that it cannot possibly succeed" (General Steel Industries Inc v Commissioner for Railways (NSW) and Others (1964) 112 CLR 125 at page 129). Furthermore, the decision in L'Air Liquide v The Commonwealth Industrial Gases Ltd (1992) AIPC 90-872 provides authority for a dismissal in part of an opposition as requested in the present situation by Genentech.

Findings

As regards the first reason for requesting dismissal, Dr Stearne argued that a number of the particularised documents were published after the priority date of the claims of application 629820 and, consequently, did not support the opposition under grounds B and C (i.e. prior publication and novelty).

Dr Pickering responded by pointing out that the statement of particulars must set out the material facts on which each ground of opposition is based, but not the evidence by which those facts are proved (Mobay Corporation v Dow Chemical Company (1992) AIPC 90-895). He then submitted that there was no evidence of record to establish the publication dates of the particularised documents in question and, more importantly, that the argument advanced by Dr Stearne was concerned with questions of fact which raise substantive issues of the opposition rather than being confined to matters of material fact.

In the L'Air Liquide decision (supra) the Assistant Commissioner stated that in his opinion a dismissal of corresponding grounds might be appropriate if the publication date of the citation is later than the latest priority date that could be accorded the opposed specification.  However there is no evidence to suggest that this is the case in the present situation.  Consequently, in my view any attempt on my part to form an opinion as to the likely success of Celtrix's case in relation to prior publication and novelty on the basis of the arguments before me would amount to conducting a de facto hearing of the substantive opposition.  This is clearly not appropriate to an action for dismissal.  

Notwithstanding this, it is particularly relevant to note that the first reason for dismissal is in effect predicated upon the assertion that grounds B and C of the opposition should be dismissed because they are not supported by some of the particulars.  In Norwood Industries Pty Ltd v Macbird Floraprint Pty Ltd (1992) AIPC 90-912, the delegate of the Commissioner at page 38,602 held that:

".... despite the presence of a number of ineffective particulars, dismissal of an opposition with respect to a particularised ground can only occur where none of the particulars support that ground.  Furthermore, the Commissioner may not dismiss a ground of opposition only in relation to certain inadequate particulars."

Nothing in the arguments before me suggests that Celtrix has failed to provide any particulars that support grounds B and C of the opposition.  I therefore find that the first reason for dismissal is unfounded.

As regards the second reason for requesting dismissal, Dr Stearne drew my attention to the decision of the Assistant Commissioner in Diamond Scientific Co v CSL Limited (1992) AIPC 90-927 where at page 38,690 he held:

"Furthermore, as I have said above, the applicant has the right to know, at the time the statement of grounds and particulars is filed, the complete case that it has to answer in the opposition."

Dr Stearne submitted that the present statement of particulars failed on two counts to give Genentech fair notice of the case to be met in relation to ground D (i.e. obviousness).

Firstly, he argued that the open-ended nature of the phrase "The common general knowledge included the disclosures in the following:" (emphasis added) as used in the statement leaves reasonable doubt as to the documents Celtrix would ultimately rely upon to establish common general knowledge.  In Dr Stearne's view, this phrase opened the way for Celtrix to introduce particulars not specifically identified in the originally filed statement.  And secondly, Dr Stearne argued that the statement of particulars merely refers to a long list of documents without giving an indication of what Celtrix considers to be common general knowledge, or how each document is to be relied upon.  This was again contrary to the views expressed in the Diamond Scientific v CSL decision (supra).

In my opinion I am unable to infer from the way in which the statement of particulars is expressed in relation to ground D that Celtrix intends to rely upon a group of documents larger than those listed by the statement to support its case.  It seems to me from the dictionary meaning of "included" that this expression may be alternatively construed to mean that the common general knowledge upon which Celtrix will rely is encompassed by the listed documents alone.  Nevertheless, it is well to remember in regard to the former interpretation that any subsequent attempt by Celtrix to amend the statement of particulars so as to add particulars not specifically referred to in the original statement would be subject to some fetters (Diamond Scientific v CSL (supra)).

Dr Pickering responded to Dr Stearne's second concern by pointing out that Celtrix had given a clear signal that it intends to oppose the grant of a patent on application 629820 on the basis that it is obvious which, in the present circumstances, must be determined by having regard solely to matters of common general knowledge (Minnesota Mining and Manufacturing Co v Beiersdorf (Australia) Limited 144 CLR 253). Such matters had been adequately particularised. Dr Pickering further pointed out that as the documents listed in the statement of particulars were cross-referenced in the complete specification of application 629820, the material disclosed by these documents should be well known to Genentech. He then claimed that, taking the above into consideration, the material facts provided are sufficient to inform Genentech of the case to be met in respect of ground D.

As previously stated, the particulars relating to ground D (obviousness) indicate that the ground is based on the common general knowledge as established by a number of expressly listed technical documents.  Thus it seems to me that this level of particularisation sufficiently identifies the facts relied upon by Celtrix to support the ground of obviousness.  In reaching this conclusion I have not had regard to whether the facts are likely to establish a successful case since such an analysis would, of course, pre-empt the substantive opposition.  It is also well to remember here that the statement of particulars should not, as Dr Stearne appears to be suggesting, refer to the evidence or to the line of argument that will be pursued in evidence (L'Air Liquide v The Commonwealth Industrial Gases and Borden v Elkem (supra)).  I therefore find that the second reason for dismissal is unfounded.

CONCLUSION

I find that the statement of particulars adequately supports the opposition under grounds B, C and D and, consequently, I refuse to dismiss the opposition in so far as it relates to these grounds.  In accordance with the general principle that costs follow the event, I award costs against Genentech.

Pursuant to reg 5.8(1)(a)(iii), the time for filing evidence in support of the opposition is 3 months from the date of this decision.

O.L.Haggar
Delegate of the Commissioner of Patents

Patent attorneys for the applicant  :  Davies Collison Cave,

Melbourne

Patent attorneys for the opponent   :  F B Rice & Co,

Sydney

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