Skills II Exercise:
Alfred Algorithm v. Commissioner, U.S. Patent and Trademark Office

Tom Field Spring 1992

The Decision Below
[District Court for the District of New Hampshire]

Ira Scible, J.
    This is a petition by Alfred Algorithm, a resident of New Hampshire, seeking review of denied access to the "Examination for Registration to Practice in Patent Cases Before the U.S. Patent and Trademark Office." The examination is administered by the Commissioner of the Patent and Trademark Office under authority of 35 U.S.C. § 31 and 5 U.S.C. § 500.

I. Undisputed Facts
    Petitioner has a bachelor's degree in computer science from the Impressive Institute of Technology. Following two years of successful entrepreneurial activity in the software industry, he enrolled at the Fisher Price Law Center. Following completion of requirements for the J.D., including several elective hours of patent and related law, he sat for and passed the New Hampshire bar examination -- and was duly admitted. He has clerked for two intellectual property firms and is now employed by a third; supervising attorneys aver that he performs high quality work on patent applications.
After making inquiry regarding the patent exam, petitioner received a brochure entitled "General Requirements for Admission to the Examination...." [Portions appear as an appendix.] It lists areas in which a bachelor's degree qualifies the holder to sit.[1] Unfortunately, while the list includes "computer engineering," it does not include computer science. Nor does petitioner satisfy any alternative for showing technical proficiency insofar as he aggregates only 35 semester hours of qualifying course work. Ultimately, petitioner received a final decision denying him permission to sit.

II. Jurisdiction
    Respondent urges that this court lacks jurisdiction over this controversy because review is, under 35 U.S.C. § 32, exclusively in the District Court for the District of Columbia. Several decisions of that district have predicated similar review on that section. However, the issue was neither raised nor explicitly addressed. Moreover, the decisions of that circuit are not binding here, and such a reading is at odds with the plain meaning of § 32. It concerns decisions suspending or excluding persons from further practice before the PTO. Since petitioner has never practiced before it, I conclude that this court has jurisdiction under 28 U.S.C. § 1331 to review, per the Administrative Procedure Act,[2] a decision of the PTO denying access in the first instance.

III. Review on the Merits
    It is urged that the PTO decision must be sustained either because it is unreviewable under 5 U.S.C. § 701(a)(2) or because it is supportable under the standard of review set forth in § 706(2)(A). The first argument fails because exceptions from the strong presumption in favor of judicial review of adverse administrative action are granted only in the most compelling circumstances, ones not present here.[3]
    I do agree that relief should be granted only if the administrative action being reviewed is capricious and arbitrary and/or shows an abuse of discretion. Yet, under that admittedly deferential standard, the petitioner should not have been refused permission to take the exam.
    First, while differences between typical computer "science" and "engineering" degrees have been urged, under these circumstances those differences do not support disparate treatment of respective holders of the degrees. Nor does this court see any rational basis for requiring 40 semester hours under PTO "option 4" when 24-30 hours would suffice under options 1-3 (Appx., at 2).
    Second, while some decisions of the Supreme Court cast doubt on the patentability of software, the Commissioner admits that software is nevertheless at the heart of thousands of patents granted annually. There is no doubt that petitioner can prosecute such cases.
    Third, petitioner has substantial professional obligations as an attorney. This should give rise to a presumption that he will not prosecute cases beyond his competence. There is nothing in the record to rebut it. Why would petitioner be more apt to prosecute an application involving recombinant DNA than would, e.g., a patent agent with B.S. in biology to prosecute one in computer science?
    Any of these points, alone, compels granting the relief sought.

IV. Relief
Under authority of 5 U.S.C. § 706(1), the Commissioner is ordered to admit petitioner to the next regularly scheduled patent examination.

The Appeal[*]
    The Commissioner has filed timely notice of appeal to the 1st Circuit.
    He urges that:
        (1) jurisdiction for this appeal resides in the Court of Appeals for the Federal Circuit under 28 U.S.C. 1295 and that it should be transferred; and, failing that,
        (2) the lower court should be reversed for lack of jurisdiction; and, failing that,
        (3) the lower court should be reversed on the merits insofar as his actions were neither capricious and arbitrary nor an abuse of discretion; and, failing that,
        (4) it was improper for the lower court to order the Commissioner to permit petitioner to sit -- rather he should have remanded for further action.
[1]   Under authority of 37 C.F.R. § 10.7(a)(1)(ii), an applicant must have "legal, scientific, and technical qualifications necessary to enable him or her to render applicants for patents valuable service."
[2]   5 U.S.C. §§ 701-706.
[3]    Citizens to Preserve Overton Park v. Volpe, 401 U.S. 402 (1971).
[*]   For briefing and argument, issues 1 and 2 will be paired; likewise, issues 3 and 4.