Supreme Court Articulates New Standard Of Review For Claim Construction

On January 20, in a 7-2 decision, the Supreme Court issued a decision in Teva Pharmaceuticals USA, Inc. v. Sandoz, Inc. overturning the Federal Circuit’s practice of reviewing all aspects of claim construction de novo. In summary, the Supreme Court held that, while the ultimate claim construction is reviewed de novo, if there is an underlying subsidiary factual dispute about a claim term (e.g., if there is a dispute about extrinsic evidence presented during claim construction), the district court’s findings of fact must be reviewed under the more deferential standard of “clear error,” even if that finding of fact is the determining issue for how a claim is construed. This standard replaces the Federal Circuit’s previous practice of reviewing all aspects of claim construction de novo, regardless of any underlying factual determinations made by the district court, and could impact the approach taken in U.S District Court claim construction hearings.