July 24, 2014
Authored and Edited by Shaton C. Menzie
In a 2-1 decision, the Federal Circuit in VirtualAgility, Inc. v. Salesforce.com, Inc., held that the district court abused its discretion in denying a motion to stay pending CBM review.
Specifically, the Court determined that the district court misapplied the four-factor test codified in AIA Section 18(b)(1) as follows:
Judge Newman dissented, stating that the decision “effectively creates a rule that stays of district court litigation pending CBM review must always be granted,” even though the AIA does not make stays mandatory and the district court retains “discretionary authority to manage its cases.”
This decision provides additional support for defendant-petitioners seeking stays pending CBM review when CBM petitions and stay motions are filed early in litigation, and particularly after receiving the PTAB’s decision to institute CBM review.
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