In Versata Software, Inc. v. Callidus Software, Inc., Case No. 14-1468, the Federal Circuit has overturned a district court ruling denying a motion to stay pending a Covered Business Method Review at the USPTO. Callidus filed petitions for CBM review of the asserted claims at the USPTO and the Patent Trial and Appeal Board instituted the reviews. Callidus then filed a motion to stay the infringement suit, pending the outcome of the CBM review. The district court initially denied the motion, but the Federal Circuit has overruled the district court and determined that a stay is appropriate.
The America Invents Act provided four factors for analyzing whether a stay is appropriate. In its decision, the Federal Circuit found these factors to weigh in favor of a stay. The factors are 1) whether the stay, or the denial thereof, will simplify the issues in question and streamline the trial; 2) whether discovery is complete and whether a trial date has been set; 3) whether a stay, or denial thereof, would unduly prejudice the nonmoving party or present a clear tactical advantage for the moving party; and 4) whether a stay, or denial thereof, would reduce the burden of litigation on the parties and on the court.
source: Maier & Maier, PLLC
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