Versata II: District Court has No Jurisdiction to Hear Challenge to CBM Review Institution Decision

Versata v. Lee (Versata II) (Fed. Cir. 2015) In this follow-up to Versata v. SAP (Versata I), the Federal Circuit holds that a district court has no jurisdiction over a direct challenge the PTO’s decision to institute a covered business method (CBM) review.  This particular appeal stems from a laterally-filed E.D. Virginia lawsuit filed by Versata against the USPTO immediately after the USPTO’s decision to institute the CBM review.  In the case, the patentee asked the court to set aside the PTAB’s decision to institute.  The district court dismissed that case for lack of subject matter jurisdiction and failure to state a claim based upon the AIA’s express statement that the decision on whether to institute is not appealable and because of the detailed scheme for review provided by the statute. In affirming the district court’s judgment against the case, the Federal Circuit failed to address a core statutory question –…