No. 24-1311

Kevin T. Lavery v. Pursuant Health, Inc.

Lower Court: Sixth Circuit
Docketed: 2025-06-25
Status: Denied
Type: Paid
Response Waived
Tags: circuit-split contract-interpretation patent-law patent-misuse royalty-agreement stare-decisis
Key Terms:
Arbitration Antitrust Patent TradeSecret Copyright Trademark Privacy JusticiabilityDoctri
Latest Conference: 2025-09-29
Question Presented (AI Summary)

Whether the Court should overrule Brulotte and Kimble or at least clarify that an agreement containing a post-expiration royalty is not per se patent misuse if the promised royalty is a means of sharing the risks and rewards of commercialization

Question Presented (OCR Extract)

K i mb le v . M arv e l E nterpris e s, L L C , 576 U.S. 446 (2015) upheld the rule announced in Brulotte v. Thys Co. , 379 U.S. 29 (1964) that an agreement to pay royalties on a patent after its expiration is patent misuse and unlawful per se . The Kimble majority did not defend the reasoning of Brulotte , relying instead on stare decisis. Three justices would have overruled “our obvious mistake” in Brulotte . 576 U.S. at 472 (Alito, J. dissenting). There is a worsening split among the circuits on how to apply the Brulotte rule. In a remarkable span of only six months, four appellate courts have issued irreconcilable opinions. Three have enforced post-expiration royalties by distinguishing Brulotte and Kimble or construing those cases  the inquiry to the four corners of the contract. In contrast, the Third Circuit instructs courts to engage in intensive fact Brulotte may require a “trial within a trial” to determine patent infringement. One court strains to avoid Brulotte with implausible contract construction while another applies the rule mechanically, i gn o rin g c o n text. N o ta b l y , all f o ur cas es in v o l v ed ro y al ty disputes over sales of drugs and medical technologies with large upfront expenses, lengthy important industries are especially sensitive to legal uncertainty over their patent rights and obligations. The question presented is: Whether the Court should overrule Brulotte and Kimble or at least clarify that an agreement containing a post-expiration royalty is not per se pa ten t misuse if the promised royalty is a means of sharing the risks and rewards of commercialization.

Docket Entries

2025-10-06
Petition DENIED.
2025-07-09
DISTRIBUTED for Conference of 9/29/2025.
2025-07-02
Waiver of right of respondent Pursuant Health, Inc. to respond filed.
2025-06-23
Petition for a writ of certiorari filed. (Response due July 25, 2025)
2025-04-09
Application (24A957) granted by Justice Kavanaugh extending the time to file until June 23, 2025.
2025-04-02
Application (24A957) to extend the time to file a petition for a writ of certiorari from April 24, 2025 to June 23, 2025, submitted to Justice Kavanaugh.

Attorneys

Kevin T. Lavery
Bradley LeGrand SmithEndurance Law Group PLC, Petitioner
Bradley LeGrand SmithEndurance Law Group PLC, Petitioner
Pursuant Health, Inc.
Adam Howard CharnesKilpatrick Townsend, Respondent
Adam Howard CharnesKilpatrick Townsend, Respondent