Amendments to Alberta's Health Information Act come into force on September 1, 2010

Recent amendments to Alberta’s Health Information Act, and related regulations, come into force on September 1, 2010.  The amendments touch on a range of issues including the applicability of the statute, sharing of electronic health records, the creation of health information repositories and additional investigative powers for the Information and Privacy Commissioner of Alberta.

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Code of Conduct for the credit and debit card industry in Canada

The Code of Conduct for the Credit and Debit Card Industry seeks to promote transparency and fairness for merchants and consumers.

The Code of Conduct for the Credit and Debit Card Industry which came into effect on August 16, 2010 aims to increase transparency and fairness for both merchants and consumers who use credit and debit cards. Applicable to credit and debit systems and their participants, payment networks that choose to adopt the Code will be subject to monitoring by the Financial Consumer Agency of Canada to ensure compliance.

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Conditions for a valid selection patent does not constitute an independent basis for attacking validity

Eli Lilly Canada Inc., Eli Lilly and Company, Eli Lilly and Company Limited and Eli Lilly SA v. Novopharm Limited (2010 FCA 197)

Eli Lilly, the plaintiff in a patent infringement action, was successful in appealing a decision of the Federal Court which had found Eli Lilly’s Canadian Letters Patent No. 2,041,113 (the ‘113 Patent) relating to the medicine olanzapine (Zyprexa) invalid on the basis that it was not a proper selection patent.  The core issue on appeal raised a single question: do the conditions for a valid selection patent constitute an independent basis upon which to attack the validity of a patent?

Eli Lilly had previously received a patent (the ‘687 Patent) in 1980 covering approximately 15 trillion thienobenzodiazapine compounds, the properties of which were said to be useful for treating mild anxiety and certain psychotic conditions.  Although olanzapine was encompassed within the scope of the ‘687 Patent, it was not specifically disclosed.  Following the issuance of the ‘687 Patent, Eli Lilly eventually ceased its studies on the compounds specifically identified in that patent, but began to synthesize seven new compounds, of which olanzapine was the most promising.
 

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Court finds that invalid disclaimers invalidates the claims.

Shmuel Hershkovitz, Paradox Security Systems Ltd. and Pinhas Shpater v. Tyco Safety Products Canada Ltd.

This decision underscores the importance of filing proper disclaimers to patent claims.  Disclaimers may be filed with the patent office by a patentee after the issuance of a patent to unilaterally renounce or disclaim those portions of the claimed invention that were inadvertently included within the scope of the claims as a result of mistake, accident or inadvertence.  Disclaimers therefore have the effect of narrowing the scope of the claims (i.e. the area where competitors may not tread).  Disclaimers that attempt to broaden the scope of a claim are invalid.

In the present case, soon after the issuance on October 5, 1999 of Canadian patent number 2,169,670 (the ‘670 patent) relating to telephone line couplers used to connect electronic equipment to phone lines while providing electrical isolation, the appellant patentee Paradox Security Systems Ltd. (Paradox) sent a demand letter to the respondent Tyco Safety Products Canada Ltd. (Tyco) alleging  patent infringement.  Tyco denied all allegations of infringement and asserted that the ‘670 patent was invalid.  On October 6, 2003, Paradox filed a disclaimer to certain claims.

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Bill C-29 proposes to enhance current private-sector privacy legislation

Bill C-29, a proposed amendment to the Personal Information Protection and Electronic Documents Act (“PIPEDA” or the “Act”), seeks to enhance the private-sector privacy legislation in Canada.

Bill C-29 which was first read on May 25, 2010, is expected to provide clarification for insurers, corporations and federal employers, who under the existing PIPEDA provisions have voiced uncertainty as to what investigative steps they can take without violating Canadian privacy laws.  The current PIPEDA provisions allow for the collection, use and disclosure of personal information, without consent, only when there is a breach of contract or law.  The Privacy Commissioner has been of the view that under the current PIPEDA provisions, the mere suspicion of a crime or a breach of contract is not grounds for an investigation in the private-sector.
 

If passed, Bill C-29 proposes amendments which include clarification of the meaning of “lawful authority” pursuant to Section 7 of the Act, and the collection and use of witness statements where it is necessary for an insurance claim.  Ultimately, the Bill would permit organizations to access this information without the knowledge or consent of an individual for the purposes of preventing fraud and other unlawful activity.  Amendments to the Act contained in Bill C-29 would affect mainly those involved in insurance, employment, and corporate due-diligence investigations.
 

Federal Court restricts definition of "commercial activity" under PIPEDA

State Farm Mutual Automobile Insurance Company v. The Privacy Commissioner of Canada et al., 2010 FC 736

On July 9, 2010, the Federal Court of Canada restricted the scope of the definition of “commercial activity” under the Personal Information Protection and Electronic Documents Act (PIPEDA), when it was asked to determine whether the provisions of PIPEDA apply to evidence collected by an insurer, on behalf of an insured, in a tort action.

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Patent abstracts must be made available in both official languages

Picard v. The Commissioner of Patents and the Canadian Intellectual Property Office, 2010 FC 86

Frédéric Picard brought an application in the Federal Court under subsection 77(1) of the Official Languages Act (Act) against the Canadian Intellectual Property Office and the Commissioner of Patents claiming that patents and patent applications must be bilingual to meet the requirements of the legislation.  He sought an order requiring the Patent Office to make certain parts of patents and patent applications available in both official languages and a declaration of invalidity of all patents available in one official language only, to be suspended to allow the Patent Office to make the invalidated patent applications and patents available in both languages.  Justice Tremblay-Lamer found that the Patent Office had not met the requirements under section 44 of the Act relating to the duty of all federal institutions to take positive measures to foster “the full recognition and use of both English and French in Canadian society.”  She concluded that “the fact that patents exist only in one official language deprives Canadian who do not speak that language of information that is important in both legal and scientific terms.”  In considering the appropriate remedy for this violation, she acknowledged the cost associated with translating all patents and applications.  The Federal Court therefore ordered that the Commissioner must at least “make available an unofficial translation of the abstract of all patents he issues” to be in compliance with the Act.  While the Court was not prepared to require that all aspects of the patent be translated, abstracts will have to be prepared in both official languages.

Federal Court of Appeal upholds narrow claim construction but overturns decision re obviousness for combination patent

Bridgeview Manufacturing Inc. v. Duratech Industries International, Inc., 2010 FCA 188

Bridgeview Manufacturing Inc. (Bridgeview) and Highline Manufacturing Ltd. (Highline) brought an action against Duratech Industries International, Inc. (Duratech) et al. for infringement of claims 1, 2 and 4 of Canadian Patent No. 2,282,334 (the 334 patent) relating to bale processors, machines designed to disintegrate or break up large bales of straw, hay or other crop material.  Duratech denied infringement and counterclaimed alleging invalidity of the 334 patent.  The judge dismissed Bridgeview’s claim and allowed Duratech’s counterclaim, finding that the 334 patent was invalid for obviousness.  This was an appeal of that decision.

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CSI proposes tariffs for non-commercial radio stations (2011), online music (2011), and satellite radio (2011-2013)

On July 17, 2010, CSI, the company formed as a royalty-collection vehicle by the Canadian Musical Reproduction Rights Agency (CMRRA)  and the Society for Reproduction Rights of Authors, Composers and Publishers in Canada (SODRAC) , proposed three new tariffs which would apply to the reproduction of music (which can include broadcasting, streaming and downloading) by non-commercial radio stations, online music providers, and satellite radio providers.

In the proposed CMRRA-SODRAC Inc. Non-Commercial Radio Tariff, 2011, CSI is requesting that the Copyright Board of Canada  certify a tariff of 0.63% of the annual gross operating costs of radio stations that are either owned or operated by not-for-profit corporations, excluding the Canadian Broadcasting Corporation.  In the case of such a non-commercial radio station that is a “low use station” (generally, a station that plays music for less than 20% of its broadcast time), the tariff would be lower, at 0.23% of its annual gross operating costs.  In exchange for the payment of the tariff, the non-commercial radio stations would receive a license to broadcast music contained in CSI’s repertoire as often as desired, including the streaming of the broadcast over the Internet.

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Federal court confirms requirement of patent specificity for listing patents on the patent register

Purdue Pharma v. The Minister of Health, 2010 FC 738

Purdue Pharma sought judicial review of a decision of the Office of Patented Medicines and Liaison (OPML) in which the OPML determined that one of Purdue’s patents (the 738 Patent) was not eligible for listing on the Patent Register maintained in accordance with the Patented Medicines (Notice of Compliance) Regulations (Regulations) in respect of the drug TARGIN.  TARGIN is a controlled-release drug in tablet form that contains two medicinal ingredients: oxycodone hydrochloride (a painkiller), and naloxone hydrochloride, which counteracts certain side effects of oxycodone.  The 738 Patent contemplates a controlled-release technology for delivering oxycodone, and contains 28 claims, none of which mention naloxone.  Claim 5 was particularly at issue, and claims, “A solid controlled release oral dosage form, comprising oxycodone or a salt thereof … an effective amount of a controlled release matrix … and … a suitable amount of a suitable pharmaceutical diluent …”

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