Federal Circuit Summary

Fun Facts about the United States court of Appeals for the Federal Circuit
* The Federal Circuit was created in 1982 by the Federal Courts Improvement Act. At 25, it is
the newest of the federal courts of appeals.
* The Federal Circuit has two characteristics that make it unique among its sister circuits:
- Jurisdiction based on subject matter not geography

- Nationwide, exclusive jurisdiction over most subject matter areas assigned to it
* Areas of Federal Circuit Subject Matter Jurisdiction:
International Trade, Government Contracts, Patents, Trademarks, Certain Money Claims against
the Federal Government, Federal Personnel, and Veteran’s Benefits
* Sources of appeals to the Federal Circuit:
All federal district courts Trademark Trial and Appeals Board

United States Court of Federal Claims Boards of Contract Appeals
United States Court of International Trade U.S. International Trade Commission
U.S. Court of Appeals for Veterans Claims Office of Compliance of the U.S. Congress
United States Merit Systems Protection Board Government Accountability Office
Board of Patent Appeals and Interferences Personnel Appeals Board
Notes
History: Federal Circuit was created after a decade of study and debate over reform of the
federal judiciary to promote greater uniformity in certain areas and relieve pressure on the docket
of the Supreme Court and the Courts of Appeals. A committee appointed by Chief Justice
Warren Burger in 1971 recommended creating a National Court of Appeals that would decide
cases and screen petitions for appeal to the Supreme Court. A 1975 report of the Commission on
Revision of the Federal Court Appellate System proposed a National Court of Appeals that
would determine national law and resolve inter-circuit conflicts by deciding certain categories of
cases referred to it by the Supreme Court and the courts of appeals. Neither proposal for a
National court of Appeals was adopted. A proposal drafted by the Department of Justice led to
President Carter’s request in 1979 that Congress establish a court of appeals for a Federal Circuit
that would combine the functions of two existing courts: the U.S. Court of Customs and Patent
Appeals and the appellate jurisdiction of the U.S. Court of Claims. The president urged congress
to consider vesting the proposed court with jurisdiction to promote uniformity and predictability
in federal tax cases and environmental cases. The bill to create the Federal Circuit was not
passed before the end of Carter’s term, but it was supported by business leaders and renewed in
1981 and passed into law in 1982. The primary purpose of the court was to reinvigorate the
nation’s industrial strength and technologic leadership by reviving the patent system. The early
decisions of the court have been credited with producing a resurgence in commercial activity and
in scientific and technologic creativity. It was one of a number of policy decisions adopted at the
time to promote investment in research and development. Another important tool was the
passage of the Bayh-Dole Act, which permitted universities, small business, and non-profit
institutions to retain title to inventions created in whole or part with federal funding.
Supreme Court Review: As a general matter, many of the cases heard by the Supreme Court
result from the need to settle differences between the several circuit courts of appeals. Because
the Federal Circuit primarily has exclusive jurisdiction, its cases do not typically result in circuit
splits. Consequently, the decisions of the Federal Circuit in its subject matter areas are the
primary method for resolving disputes under applicable law. Of the 3500 cases decided on the
merits in the last five years, the Supreme Court has granted certiorari in 15. In the 25 years of
the Federal Circuit’s existence, the Supreme Court has granted certiorari to it 55 times. Of these
55 cases more than 2/3 were in cases other than patent law. In recent years, however, the
Supreme court has shown an increased interest in the Federal Circuit’s patent law jurisprudence.
The Supreme Court’s 1996 decision in Markman v. Westview Instruments, Inc. (affirming the
Federal Circuits determination that claim construction is a matter for the court and not the jury)
seems to have been a turning point in the Supreme Court’s interest in the essentials of patent law.
From 1989 through 1996, the Supreme Court heard only 4 patent cases on appeal from the
Federal Circuit. From 1996 to 2003, the Supreme Court heard twice as many patent cases on
appeal from the Federal Circuit with the pace picking up even more after 2004. The Supreme
Court has heard 7 patent cases in the last three years. One type of patent case that typically
draws Supreme Court attention is if the Federal Circuit strays from generally applicable rules
governing litigation in favor of special rules for patent cases. Examples: eBay, Inc. v.
MercExchange, L.L.C. (2006), rejecting the Federal Circuits general rule that a permanent
injunction will issue once infringement and validity have been adjudged without application of
the traditional rules of equity that generally govern issuance of injunctive relief. Supreme Court
has also inserted itself into the operational aspects of patent law, which is most likely a reflection
of the major role that patent law now plays in the U.S. economy. In April of this year, the
Supreme Court decided KSR International, Co. v. Teleflex, Inc,, holding that the Federal Circuit
had applied too narrow and rigid a conception of the obviousness inquiry required by Section
103 of the Patent Act. The increased attention by the Supreme Court has lead to increased
attention by academics and policy-makers who have begun suggesting a relaxation of the
exclusivity of the jurisdiction of the Federal Circuit over patent cases. Unlikely that such a
dramatic step would be taken any time soon, particularly since it would undermine the rationale
for creating the court in the first place, but the debate is likely to continue.

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Fun Facts about the United States court of Appeals for the Federal Circuit

- Jurisdiction based on subject matter not geography

* Areas of Federal Circuit Subject Matter Jurisdiction:

* Sources of appeals to the Federal Circuit:

All federal district courts Trademark Trial and Appeals Board

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