PTAB to Consider Motions for Sanctions Against Kyle Bass and the Coalition for Affordable Drugs

The Board may soon rule on whether the Petitions for Inter Partes Review filed by the Coalition for Affordable Drugs VI, LLC (IPR2015-01092, -1096, -1102, and -1103) against certain patents owned by Celgene Corporation amount to an abuse of process deserving of sanctions. On June 9, 2015, the Board authorized Celgene to file motions for sanctions with its Patent Owner Preliminary Responses, which are due by July 30, 2015. Petitioner will have ten (10) business days to respond, and the Patent Owner five (5) business days to file a Reply. (Paper 7.)

The Coalition is an entity created by Kyle Bass, a hedge-fund manager, who claims to be targeting various patents of major pharmaceutical companies that he alleges drive up prescription drug prices. Patent Owner Celgene alleges that Mr. Bass and his business partner, Erich Spangenberg, have publicly stated that they intend to use the IPR process for the purpose of affecting the value of public companies, which Celgene alleges is an abuse of process and misuse of the IPR proceedings. By authorizing the filing of the motions for sanctions, the Board stressed that it was not deciding on the merits, but rather  allowing briefing that would “facilitate development of a complete record and, thereby, will promote the just resolution of the issues raised by the Patent Owner.”