Federal court strikes down new patent rules

National News

The US District Court for the Eastern District of Virginia on Tuesday rejected new US Patent and Trademark Office (USPTO) rules that would have retroactively limited the number of claims that can be included in a patent application and the number of times a continuation application can be filed for a given invention. The court ruled that the new rules were "substantive in nature" and therefore beyond the scope of the USPTO's authority to govern the submission procedure of patent application.

The lawsuit challenging the new rules was brought by pharmaceutical company GlaxoSmithKline, which has approximately 100 applications pending at the USPTO. Supporting the company was the American Intellectual Property Law Association (AIPLA), which filed an amicus curiae brief. In October, a judge enjoined the USPTO from implementing the new rules pending a ruling on their validity.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.

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