Full opinion text
MEMORANDUM DECISION AND ORDER [GRANTING IN PART AND DENYING IN PART] DEFENDANT’S MOTION TO DISMISS AND [DENYING] DEFENDANT’S MOTION TO STRIKE (Doc. 19) OLIVER W. WANGER, District Judge. I. INTRODUCTION Defendant, The California Table Grape Commission (“Commission”), moves to dismiss Plaintiffs’ Delano Farms Company (“Delano”), Four Star Fruit, Inc. (“Four Star”), and Gerawan Farming, Inc. (“Gerawan”), entire complaint pursuant to Federal Rule of Civil Procedure 19(a), claiming the United States is a necessary party, and moves to dismiss pursuant to Federal Rule of Civil Procedure 19(b), claiming the government is an indispensable party and immune from this suit. Defendant additionally moves to dismiss Plaintiffs’ remaining claims for (1) Inequitable Conduct, (2) Sherman and Clayton Anti-Trust violations, (3) Patent Misuse, (4) Unfair Competition, (5) Unjust Enrichment and (6) Constructive Trust. Defendant moves to strike certain portions of Plaintiffs’ complaint pursuant to Federal Rule of Civil Procedure 12(f). (Doc. 20, Motion to Dismiss, Filed December 14, 2007). Plaintiffs oppose the motion. (Doc. 24, Opposition, filed January 9, 2008.) Defendant filed a notice of supplemental authority on June 17, 2008, (Doc. 39). This matter was heard on May 19, 2008. II. PROCEDURAL BACKGROUND Plaintiffs filed their complaint on November 5, 2007. (Doc. 1, Complaint). The Commission filed its Motion to Dismiss on December 14, 2007, (Doc. 20), which Plaintiffs opposed on January 9, 2008. (Doc. 24, Opposition). On January 21, 2008, Defendant filed a reply to Plaintiffs’ Opposition. (Doc. 26, Reply). III. FACTUAL BACKGROUND A. Parties Plaintiff Delano is a corporation duly organized and existing under the laws of the State of Washington, with its principal place of business at Hoquiam, Washington. Plaintiff Four Star is a corporation duly organized and existing under the laws of the State of California, with its principal place of business at Delano, California. Plaintiff Gerawan is a corporation duly organized and existing under the laws of the State of California, with its principal place of business at Sanger, California. Plaintiffs are engaged in the business, inter alia, of growing, harvesting and selling table grapes. Defendant is a corporation of the State of California, established by the 1967 Ketchum Act. Cal. Food & Agrie. Code §§ 65550-65551. Defendant’s principal place of business is at Fresno, California. The stated purpose of the Commission is to expand and maintain the market for California table grapes for the benefit of the State of California as well as the State’s over five hundred California table grape growers. The Commission is funded primarily by assessments levied on each shipment of California table grapes and paid by the State’s table grape shippers. No general revenues of the State fund the Commission. (Doc. 1, Complaint, ¶¶ 4-9). B. USDA Research Program California table grape growers and shippers have funded a research program under the U.S. Department of Agriculture (“USDA”) to develop new table grape varieties. Growers and shippers fund the USDA research program through the Commission by an assessment on each box of table grapes shipped in California. Pri- or to 2002, the USDA provided the new varieties under development to area growers for evaluation of growing potential and commercial marketability. Once new varieties appeared commercially viable, the USDA “released” the variety, and distributed plant material of the variety to area growers free-of-charge. The USDA did not charge California growers for the new varieties since California growers and shippers already paid for a large portion of the development. (Complaint, ¶ 10). Accordingly, when a variety under development appeared commercially successful, it was not uncommon for many growers to have reproduced and commercially sold the variety prior to an official “release” by the USDA. (Complaint, ¶ 43). C. Commission Patents Grape Varieties In the late 1990s, the Commission developed a scheme by which it and a few select nurseries could profit from the new varieties that the USDA distributed for free. At the urging of the Commission, the USDA agreed to begin patenting new table grape varieties. California shippers already funded much of the development, but the USDA agreed to give the Commission an exclusive license to all new patented varieties, and to allow the Commission to charge royalties when growers wished to obtain the new varieties. The USDA also agreed to give the Commission exclusive enforcement powers over its new patent rights. (Complaint, ¶ 21). Under the Commission’s “patent and licensing” scheme, the Commission hand-selected three nurseries to exclusively sell all new patented table grape varieties (“Licensed Nurseries”). Unlike the prior free distribution, the nurseries would be allowed to sell new varieties to growers. (Complaint, ¶ 13). The Licensed Nurseries are responsible for paying the royalty, but the Licensed Nurseries are allowed to pass the royalty amount on to the purchasing growers, which they do and have done. The Commission pays a portion of the royalty to the USDA. (Complaint, ¶ 28). When a grower seeks to obtain a new variety from a nursery, it is required to enter a “Domestic Grower License Agreement” or “License Agreement” with the Commission. Under the terms of the License Agreement, the grower cannot propagate the variety beyond the plant purchased. If the Commission believes the grower has violated the License Agreement, it can void the License Agreement and order that all purchased plants be destroyed. (Complaint, ¶ 13). The first three varieties that the Commission identified to the USDA for patenting had been under development for years. At least one of the varieties had been distributed to growers for wide-scale commercial evaluation and sale. (Complaint, ¶ 14). Recognizing that at least one of the new varieties identified for patenting (and perhaps all three) had been previously in public use and/or sold commercially, the Commission created a so-called “amnesty program” designed to hide the fact that valid patents could not be obtained, and to extort funds from growers already in possession of the varieties. Under the amnesty program, the Commission widely disseminated notices to growers and shippers stating that they were in violation of the law if they possessed the varieties intended for patenting. The notices also offered confidential “settlements” to any growers who, within a narrow window, agreed to license the varieties, pay a “penalty” to the Commission, and accept the Commission’s license restrictions on further propagation. (Complaint, ¶ 15). In May 2004, the commission sent a notice to all California table grape growers and shippers stating that the USDA had applied for a patent on the Sweet Scarlet variety. Although no enforceable patent had yet issued, the Commission offered “amnesty” for any grower who had previously reproduced Sweet Scarlet. Under its so-called “amnesty” program, a grower with Sweet Scarlet could keep the vines reproduced, so long as the grower (i) admitted to possession prior to July 2004, (ii) paid $2 per vine reproduced, (iii) paid $2 per box of Sweet Scarlet grapes previously shipped, and (iv) agreed to no further propagation of the Sweet Scarlet variety from the plants possessed. (Complaint, ¶ 60). In July 2004, the Commission sent another notice to all California table grape growers and shippers extending the “amnesty” time period for one month, and extending the “amnesty” to include Autumn King and Scarlet Royal varieties. (Complaint ¶ 61). In both notices, the Commission threatened to sue growers who did not come forward, and to seek money damages and injunctions. Yet, at the time of the second notice, the USDA patent application on Sweet Scarlet not only remained un-issued, but had been rejected by the USPTO. Moreover, the USDA had not even applied for a patent on either Autumn King or Scarlet Royal. The USDA had no patent rights, and the Commission lacked any enforcement rights. (Complaint, ¶ 62). On information and belief, at the time the Commission sent the “amnesty” notices in May and June, 2004, the USDA, and Dr. Ramming knew of the public use and sale with respect to the Sweet Scarlet that occurred prior to February 20, 2002 — more than one year prior to the filing of the '512 Application on the Sweet Scarlet variety. (Complaint, ¶ 63). On information and belief, the Commission, the USDA, and Dr. Ramming learned (prior to the July 25, 2005, issue date for Sweet Scarlet) that at least some of the 17 growers who agreed to the Commission’s “amnesty” program for that variety had possessed and reproduced Sweet Scarlet prior to February 2002. On information and belief, the Commission, the USDA, and Dr. Ramming knew that such information was material to the patentability of the Sweet Scarlet variety. (Complaint, ¶ 64). Seventeen growers confirmed possession of the varieties and agreed to pay the penalties demanded by the Commission, confirming its expectation that varieties identified for patenting were in public use. (Complaint, ¶ 17). D. Patents in Prior Use The USDA and inventor of the new varieties breached their duty of candor to the United States Patent & Trademark Office (“USPTO”) by not reporting these prior public uses and sales when applying for patents on the new varieties. Under Patent Law, public use or sale of an invention more than one year prior to filing a patent application bars patentability. Based on these facts, none of the patents on the new varieties are valid. The USDA and inventor committed inequitable conduct before the USPTO. The Commission demanded licenses and accepted royalties on knowingly invalid patents. Plaintiffs seek to hold the patents invalid so the varieties can be freely distributed, to obtain the return of royalty payments illegally collected from growers and shippers, and to stop the Commission from engaging in further illegal activities through the use of patents. (Complaint, ¶ 17). E. Patents 1. Sweet Scarlet On February 20, 2003, the USDA filed patent application No. 371,512 (the “'512 Application”) on a grapevine denominated “Sweet Scarlet.” On July 26, 2005, the '512 Application issued as U.S. Patent No. PP15,891, entitled “Grapevine Denominated Sweet Scarlet” (the “'891 patent”). (Complaint, ¶ 18). The United States of America, as represented by the Secretary of Agriculture, is the owner by assignment of the '891 patent. (Complaint, ¶ 19). On information and belief, the Commission is the exclusive licensee of the '891 patent pursuant to a license agreement entered into between the United States Government, as represented by the United States Department of Agriculture, Agricultural Research Services, and the Commission. The exclusive license includes the right to license the '891 patent and to enforce the '891 patent against alleged infringers. (Complaint, ¶ 20). 2. Autumn King On September 28, 2004, the USDA filed patent application No. 953,387 (the “'387 Application”) on a grapevine denominated “Autumn King.” On February 21, 2006, the '387 Application issued as U.S. Patent No. PP16,284, entitled “Grapevine Denominated Autumn King” (the “Autumn King or '284 patent”). The United States of America, as represented by the Secretary of Agriculture, is the owner by assignment of the '284 patent. (Complaint, ¶¶ 21, 22). On information and belief, the Commission is the exclusive licensee of the '284 patent pursuant to a license agreement entered into between the United States Government, as represented by the United States Department of Agriculture, Agricultural Research Services, and the Commission. The exclusive license includes the right to license the '284 patent and to enforce the '284 patent against alleged infringers. (Complaint, ¶ 23). 3. Scarlet Royal On September 28, 2004, the USDA filed patent application No. 953,124 (the “'124 Application”) on a grapevine denominated “Scarlet Royal.” On January 31, 2006, the '124 Application issued as U.S. Patent No. PP16,229, entitled “Grapevine Denominated Scarlet Royal” (the “Scarlet Royal or '229 patent”). The United States of America, as represented by the Secretary of Agriculture, is the owner by assignment of the '229 patent. (Complaint, ¶¶ 24, 25). On information and belief, the Commission is the exclusive licensee of the '229 patent pursuant to a License Agreement entered into between the United States Government, as represented by the United States Department of Agriculture, Agricultural Research Services, and the Commission. The exclusive license includes the right to license the '229 patent and to enforce the '229 patent against alleged infringers. (Complaint, ¶ 26). F. Plaintiffs ’ License Agreements Plaintiffs are in possession of the Autumn King, Sweet Scarlet and Scarlet Royal varieties, which they purchased through Licensed Nurseries. Plaintiffs paid the royalties imposed by the Commission on each purchased plant. (Complaint, ¶ 30). Plaintiffs have entered into a License Agreement with the Commission for each of the Patented Varieties. In consideration for this limited, nonexclusive license, Plaintiffs have paid a license fee to a Licensed Nursery. Under the terms of this agreement, Plaintiffs have a limited, nonexclusive license of the Patented Varieties, to grow the variety and sell the fruit produced. Plaintiffs cannot propagate the grapevines or distribute the vines to third parties. Further, Plaintiffs are obligated to destroy all Patented Varieties’ plant material upon termination of the agreement. (Complaint, ¶¶ 31-33). G. Commission’s Patent and Licensing Program The Commission requires that California grape shippers pay an assessment of approximately $0.13 per box of table grapes. The Commission operates at an annual surplus from these assessments, but does not return any of the assessment money back to the California growers or shippers. (Complaint, ¶ 34). Dr. Ramming, the co-inventor of the patented Autumn King, Sweet Scarlet and Scarlet Royal varieties, is a researcher at the Agriculture Research Center (“ARC”) of the USDA located in Fresno, California. For at least 20 years, Dr. Ramming has operated a research program at the ARC relating to the development of new table grape varieties. Since the early 1980s, the Commission has funded a portion of Dr. Ramming’s grapevine breeding program with funds collected through the shipper assessments. In many years, the Commission’s funding has amounted to over one-third of the total table grape research budget at the ARC, excluding employee salaries. (Complaint, ¶ 35). Prior to 2003, the USDA had never sought patent protection for any new table grape variety developed at the ARC. The USDA agreed that the Commission could serve as the exclusive licensee for patented varieties in the collection of royalties and enforcement against infringers. (Complaint, ¶ 37). In exchange for seeking patent protection, and providing an exclusive license to the Commission, the Commission and the USDA agreed that revenues from the patent licensing program would be shared between the USDA and the Commission. However, the USDA indicated that it was not interested in profiting from the patenting program. Additionally, Dr. Ramming received no extra compensation from the patenting of varieties he developed. (Complaint, ¶ 39). In accordance with the agreement between the Commission and the USDA, the Commission charges nurseries that distribute patented varieties a $5,000 participation fee per patented variety and an additional $1 per production unit royalty. These costs are then passed on by the nurseries to the California grape growers, who purchase the patented plant material from the nurseries, including Plaintiffs who purchased the Patented Varieties. (Complaint, ¶ 40). The California grape growers who bear the ultimate costs of the royalty fees imposed by the Commission are the same California grape growers who bear the cost of the per box assessment charged by the Commission, which funds much of Dr. Ramming’s breeding program. Thus, California table grape growers essentially pay for the development of patented varieties, then pay again to obtain the varieties. (Complaint, ¶ 41). The Commission’s Research Committee and Board oversee and administer the patent and licensing program. Specifically, the Board sets the royalty rates on patented plants, determines penalties for infringement, and establishes enforcement policy. The Research Committee oversees Dr. Ramming’s breeding program and makes recommendations regarding which new varieties should be patented and released. To date, the USDA has only patented new varieties that the Commission has recommended for patenting, and has only applied for patents once receiving a recommendation from the Commission to do so. (Complaint, ¶ 42). 1. Prior Uses and Sales of Patented Varieties Development of the Patented Varieties began in about 1993. Prior to 2003, Dr. Ramming had reproduced each of the Patented Varieties, Sweet Scarlet, Autumn King, and Scarlet Royal, produced fruit from each of the Patented Varieties, and had evaluated the potential commercialization of each Patented Variety. (Complaint, ¶ 46). Dr. Ramming did not keep the development of the Patented Varieties secret. To the contrary, Dr. Ramming discussed each of the Patented Varieties with the Commission over many years, including between 2001 and 2003. Dr. Ramming discussed the Patented Varieties during public meetings of the Commission’s Research Committee. Additionally, prior to 2003, Dr. Ramming displayed fruit from the Patented Varieties at Commission meetings, which area growers and shippers attended. Attendees were allowed to take samples of fruit from the three varieties. (Complaint, ¶ 47). By 2001, the Commission’s Research Committee was actively evaluating the Sweet Scarlet, Autumn King, and Scarlet Royal varieties (among others) for USDA release. The Commission recommended that Sweet Scarlet should be released in 2002. The Commission also recommended that the USDA seek patent protection on Sweet Scarlet as the first variety for patenting under the Commission’s new patent and licensing program. After receiving the Commission’s recommendation, the USDA proceeded with the release of Sweet Scarlet and filed a patent application on the Sweet Scarlet variety in February 2003. (Complaint, ¶ 48). Although the Commission recommended proceeding with the release of Sweet Scarlet, the Commission decided to delay any release and patenting of Autumn King and Scarlet Royal. Instead, the Commission recommended that Autumn King and Sweet Scarlet undergo further evaluation prior to release. Eventually, the Commission recommended release of Autumn King and Scarlet Royal approximately two years later, in 2004. At that time, the Commission further recommended that the USDA seek patent protection for Autumn King and Scarlet Royal. (Complaint, ¶ 49). Despite waiting for the Commission’s recommendations on releasing new varieties to seek patent protection, Dr. Ramming could have filed patent applications much earlier. All three Patented Varieties had been reproduced and undergone several growing cycles well before the Commission recommended release in 2002 for Sweet Scarlet, and 2004 for Autumn King and Scarlet Royal. By 2001-2002 (if not before), all three varieties had been developed to a point at which they were ready for patenting. The Commission’s recommendations regarding continued evaluation of the Autumn King and Sweet Scarlet varieties prior to release did not prevent the USDA from seeking patent protection on these varieties long before receiving a recommendation regarding releases. (Complaint, ¶ 50). Although the USDA delayed the decision to apply for patents on Autumn King and Scarlet Royal, it made little effort to prevent these varieties from entering the public domain. The USDA did not conceal the varieties. To the contrary, prior to seeking patent protection, the USDA displayed and discussed the varieties at public meetings. Moreover, the USDA kept its fully developed Autumn King and Scarlet Royal plants at unsecured facilities at California State University at Fresno (“Fresno State”), which could be accessed through the Fresno State grounds. The USDA never made efforts to secure plant materials sent to other facilities for testing. (Complaint, ¶ 51). While delaying the decision to seek patent protection, and failing to implement security measures at its facilities, the USDA knew that public use had been made of new varieties more than one year before applying for a patent would bar later filing for patent protection. Indeed, the Commission and Dr. Ramming discussed the fact that public uses and sales of new varieties prior to seeking patent protection could jeopardize the Commission’s patenting program. (Complaint, ¶ 52). All three Patented Varieties entered the public domain more than one year before the USDA sought patent protection on each respective variety. (Complaint, ¶ 53). The Sweet Scarlet variety and its fruit was publicly used, distributed, offered for sale and sold by growers and shippers prior to February 20, 2002 — more than one year prior to the filing of the '512 Application on the Sweet Scarlet variety. Specifically, approximately nine growers received Sweet Scarlet from Dr. Ramming for trials in 1999 and 2000. At least three of these growers sold fruit produced into commercial markets before 2002. (Complaint, ¶ 54). Additionally, at least 17 other growers, who were not part of trials, received and reproduced the Sweet Scarlet variety. On information and belief, these reproductions took place prior to 2002. Neither the USDA, nor Dr. Ramming oversaw or controlled the reproductions created by these 17 growers. (Complaint, ¶ 55). In early 2002, more than two years before filing the patent applications for Autumn King and Scarlet Royal, a grower in Delano, California (J & J Farms, owned by Jim and Jack Ludy) obtained “sticks” of several new varieties, including Autumn King and Scarlet Royal. Jim and Jack Ludy provided some of the plant material for the new varieties (including Autumn King and Scarlet Royal) to their cousin (Lawrence Ludy) who owned and operated an adjacent farm (“Ludy Farms”). With these sticks, the Ludys reproduced Autumn King and Scarlet Royal grapevines on their farms in 2002. Lawrence Ludy reproduced additional Autumn King on his farm in mid-2003. In total, J & J Farms and Ludy Farms reproduced more than five hundred Autumn King and Scarlet Royal plants before September 2003. (Complaint, ¶ 57). J & J Farms and Ludy Farms received the Autumn King and Scarlet Royal plant material without any written or verbal agreement or restrictions on disclosure or use. Neither the USDA, nor Dr. Ramming oversaw or controlled the reproductions that occurred on the Ludy Farms. Although Ludy Farms was privately owned, it placed no special restrictions such as fences or gates limiting public access to its fields and the location of the Autumn King and Scarlet Royal plants. Nor did Ludy Farms place any confidentiality restrictions on employees who viewed the reproduced new varieties. Finally, prior to September 2003, both J & J Farms and Ludy Farms showed the reproduced varieties to members of the public, including neighboring farmers, without any confidentiality restrictions. (Complaint, ¶ 57). The USDA and Dr. Ramming did not disclose to the USPTO the information regarding all the growers who possessed and reproduced Sweet Scarlet prior to February 20, 2002, which the Commission learned through its “amnesty” program. (Complaint, ¶ 65). On information and belief, both the USDA and the Commission knew, before the respective patents issued on the Patented Varieties, that (i) Sweet Scarlet had been in the public domain since before February 2002, and (ii) either knew or suspected that Autumn King and/or Scarlet Royal had been in the public domain since before September 2003. (Complaint, ¶ 58). Because the known public use and sale of the Patented Varieties, more than one year before the patent application filing would prevent issuance of valid patents, the Commission (with the USDA’s knowledge and approval), created a scheme to prevent challenges to patentability based on these prior uses and sales. (Complaint, ¶ 59). IV. REQUEST FOR JUDICIAL NOTICE Defendant Commission requests judicial notice pursuant to Federal Rule of Evidence Rule 201, of Defendant Party-United States of America’s memorandum of points and authorities filed in the District Court case of Nutrition 21 v. Thorne Research, Inc., 130 F.R.D. 671 (D.Wash.1990) and Appellee Party-United States of America’s brief filed in Federal District appeal case of Nutrition 21 v. United States, 930 F.2d 862 (Fed.Cir.1991). (Doc. 27, Commission Request for Judicial Notice, filed January 21, 2007, Exhibit 1 and Exhibit 2). Plaintiffs provide no objection to this request. “A judicially noticed fact must be one not subject to reasonable dispute in that it is either (1) generally known within the territorial jurisdiction of the trial court or (2) capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned.” Fed.R.Evid. 201(b); see Biggs v. Terhune, 334 F.3d 910, 916, n. 3 (9th Cir.2003) (“Materials from a proceeding in another tribunal are appropriate for judicial notice.”) Defendant’s request for judicial notice is GRANTED as to the documents and their existence, but not as to any disputed contents of those papers. V. LEGAL STANDARD Fed.R.Civ.P. 12(b)(6) provides that a motion to dismiss may be made if the plaintiff fails “to state a claim upon which relief can be granted.” However, motions to dismiss under Fed.R.Civ.P. 12(b)(6) are disfavored and rarely granted. Gilligan v. Jamco Development Corp., 108 F.3d 246, 249 (9th Cir.1997). In deciding whether to grant a motion to dismiss, the Court “accept[s] all factual allegations of the complaint as true and draw[s] all reasonable inferences” in the light most favorable to the nonmoving party. TwoRivers v. Lewis, 174 F.3d 987, 991 (9th Cir.1999); see also, Rodriguez v. Panayiotou, 314 F.3d 979, 983 (9th Cir.2002). A court is not “required to accept as true allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir.2001). The question before the court is not whether the plaintiff will ultimately prevail; rather, it is whether the plaintiff could prove any set of facts in support of his claim that would entitle him to relief. See Hishon v. King & Spalding, 467 U.S. 69, 73, 104 S.Ct. 2229, 81 L.Ed.2d 59 (1984). “A complaint should not be dismissed unless it appears beyond doubt that plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Van Buskirk v. CNN, Inc., 284 F.3d 977, 980 (9th Cir.2002) (citations omitted). VI. ANALYSIS A. Joinder of Parties Defendant argues that the United States is not a named defendant and is a necessary and indispensable party to certain claims under Federal Rule of Civil Procedure 19. Further, because the United States is not subject to suit under the doctrine of sovereign immunity, Plaintiffs cannot join the United States to this action, and this action must be dismissed under Rule 19(b). Plaintiffs’ first three causes of action seek a declaration of the invalidity of the three U.S.-owned patents under 35 U.S.C. § 102(b) ('891 Patent, '284 Patent and '229 Patent). Defendant seeks to dismiss these causes of action. Defendant’s argument that the United States is a necessary and indispensable party is based on the fact that the patents sought to be invalidated are owned by the U.S., a sovereign entity, and Plaintiffs have failed to identify a waiver of sovereign immunity. Plaintiffs allege in the Complaint that the USDA and Dr. Ramming, of the USDA, knowingly did not disclose to the USPTO that the Patented Varieties had been in the public domain more than one year before the patent application filing dates in violation of the Patent Act. And they allegedly knew that this information would prevent issuance of valid patents. (Doc. 1, Complaint, ¶¶ 53, 58-9). Plaintiffs’ Complaint is brought against the Commission only. Section 120 of the Patent Act states: A person shall be entitled to a patent unless- (b) the invention was patented or described in a printed publication in this or a foreign country or in public use or on sale in this country, more than one year prior to the date of the application for patent in the United States ... 35 U.S.C. § 120(b) (emphasis added). Defendant also seeks to dismiss Plaintiffs’ fourth and sixth claims on the same basis as the first three claims, the U.S. is a necessary and indispensable party and is a sovereign entity immune from this suit. Plaintiffs’ fourth claim seeks a declaration that the U.S.-owned patents are unenforceable, in part, due to alleged “inequitable conduct” by the USDA. This directly implicates the interests of the United States, the patent owner, as it would render the patents useless if they are found unenforceable. Claim six is a patent misuse claim, in which Plaintiffs seek a declaration that the patent is also unenforceable due to the Commission’s misuse of the patents. Defendant argues this makes the United States a necessary and indispensable party to claims one through four and six. “[W]here sovereign immunity is asserted, and the sovereign’s claims are not frivolous, dismissal must be ordered where there is a potential for injury to the absent sovereign’s interests.” Republic of Philippines v. Pimentel, — U.S.-, 128 S.Ct. 2180, 2182-83, 171 L.Ed.2d 131 (2008). Rule 19 governs the circumstances under which persons must be joined as parties to a lawsuit. Rule 19 provides in relevant part: (a) Persons Required to Be Joined if Feasible. (1) Required Party. A person who is subject to service of process and whose joinder will not deprive the court of subject-matter jurisdiction must be joined as a party if: (A) in that person’s absence, the court cannot accord complete relief among existing parties; or (B) that person claims an interest relating to the subject of the action and is so situated that disposing of the action in the person’s absence may: (i) as a practical matter impair or impede the person’s ability to protect the interest; or (ii) leave an existing party subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations because of the interest .... (b) When Joinder Is Not Feasible. If a person who is required to be joined if feasible cannot be joined, the court must determine whether, in equity and good conscience, the action should proceed among the existing parties or should be dismissed. The factors for the court to consider include: (1) the extent to which a judgment rendered in the person’s absence might prejudice that person or the existing parties; (2) The extent to which any prejudice could be lessened or avoided by: (A) protective provisions in the judgment; (B) shaping the relief; or (C) other measures; (3) whether a judgment rendered in the person’s absence would be adequate; and (4) whether the plaintiff would have an adequate remedy if the action were dismissed for non-joinder. Fed.R.Civ.P. 19. The “[application of Rule 19 involves three successive inquiries.” Wilbur v. Locke, 423 F.3d 1101, 1111 (9th Cir.2005). “First, the court must determine whether a nonparty should be joined under Rule 19(a).” The term “necessary” is used to describe those persons to be joined if feasible. Id. at 1112. “The inquiry is a practical one and fact specific, and is designed to avoid the harsh results of rigid application.” Shermoen v. United States, 982 F.2d 1312, 1317 (9th Cir.1992). Second, “[i]f an absentee is a necessary party under Rule 19(a),” the court is to determine “whether it is feasible to order that the absentee be joined.” Wilbur, 423 F.3d at 1112. “Finally, [and thirdly,] if joinder is not feasible, the court must determine at the third stage whether the case can proceed without the absentee, or whether the absentee is an ‘indispensable party’ such that the action must be dismissed.” Id.; Shermoen, 982 F.2d at 1317 (a court must determine whether the absent party is “indispensable” so that in “equity and good conscience” the suit should be dismissed). In the final analysis, “[r]ule 19 uses the word ‘indispensable’ only in a conclusory sense, that is, a person is ‘regarded as indispensable’ when he cannot be made a party and, upon consideration of the factors [in Rule 19(b) ], it is determined that in his absence it would be preferable to dismiss the action, rather than to retain it.” Wilbur, 423 F.3d at 1112. 1. United States is a Necessary Party Under Rule 19(a). The United States has an “interest relating to the subject of the action”— which is the validity and enforceability of the three patents it owns and the royalties under those patents that it receives. Fed. R.Civ.P. 19(a)(1)(B)(i). Disposition of the claims without the participation of the United States will “as a practical matter impair or impede” the United States’ “ability to protect [its] interests.” Id. a. Joinder Voluntarily or Involuntarily of Patent Owner. The U.S. has retained substantive rights in a patent that is the subject of the exclusive license and therefore is an indispensable party. Waterman v. Mackenzie, 138 U.S. 252, 255, 11 S.Ct. 334, 34 L.Ed. 923 (1890). The Ninth Circuit case Massa v. Jiffy Products Co., 240 F.2d 702 (9th Cir.1957), holds that the patent owner is an indispensable party in a case challenging the validity of the patent. “When ownership of the patent and the trademark in Massa appeared from his deposition, an involuntary joinder of Massa as a party defendant under Rule 19, Fed.R.Civ.P. became proper. Massa, appearing as the registered owner of the patent and trade mark, became an indispensable party in the declaratory judgment action, in order that the -alleged infringer might have tried in the one action, as to all parties, the invalidity of the patent and the alleged improper recordation of the trade mark. ” Id. at 705 (emphasis added). The one exception to this rule, is when a licensee is transferred all “substantial rights” in the patent from the patent owner. This exception is not here applicable to the License Agreements between the Commission and the United States. In the Federal Circuit case describing the “rule of reciprocity,” Enzo APA & Son, Inc. v. Geapag A.G., 134 F.3d 1090 (Fed.Cir.1998), the court held that where the non-exclusive licensee did not hold an exclusive license with all “substantial rights,” ie., the right to bring an enforcement action without joining the patent owner, there can no declaratory judgment brought against the licensee, without joining the patent owner. “We have accorded standing, in certain limited circumstances, where all substantial rights under the patent have been transferred in the form of an exclusive license, rendering the licensee the virtual assignee.” Id. at 1093-94, citing Vaupel Textilmaschinen KG v. Meccanica Euro Italia S.P.A., 944 F.2d 870 (Fed.Cir.1991). The general rule in patent infringement suits, which applies in declaratory relief actions seeking invalidity of a patent, is that the patent owner is to be joined when fewer than all substantial rights have been transferred in an exclusive license to the licensee. Intellectual Property Development, Inc. v. TCI Cablevision of Cal., 248 F.3d 1333 (Fed.Cir.2001). “As a general rule, in accordance with Independent Wireless, this court adheres to the principle that a patent owner should be joined, either voluntarily or involuntarily, in any patent infringement suit brought by an exclusive licensee having fewer than all substantial patent rights.” Id. at 1347; see also Independent Wireless Tel. Co. v. Radio Corp. of Am., 269 U.S. 459, 468, 46 S.Ct. 166, 70 L.Ed. 357 (1926) (patent owner is an indispensable party in infringement suit brought by a licensee); see also Tol-O-Matic, Inc. v. Proma Produkt-Und Marketing Gesellschaft, m.b.H., 690 F.Supp. 798 (D.Minn.1987). There are two reasons in infringement actions for requiring joinder of the patent owner when fewer than all “substantial rights” have been transferred, in a suit for declaratory relief to invalidate a patent. First, there is the possibility that the alleged infringer would be subject to multiple actions. Schwarz Pharma, Inc. v. Paddock Laboratories, Inc., 504 F.3d 1371, 1374 (Fed.Cir.2007). Second, to ensure that the rights of the patent owner are protected in a suit brought by the licensee. Id. Although Plaintiffs’ action is not an infringement action, the second reason applies where patent invalidation is sought. The United States and the USDA both have an interest in whether the Patents in suit are invalidated. If the patent is declared invalid, the United States loses the ownership and value of its patents and any royalty derived from the patents. Second, the patent owner is at risk that a licensee did not diligently defend the patent in pending litigation. The patent owner may have a different perspective because the licensee’s interests are limited. Here, the USDA did not transfer all “substantial rights” as required under case law, specifically the right of assignment and the ability to bring enforcement actions. The Commission ostensibly is unauthorized to defend the declaratory suit seeking to invalidate the U.S. — owned patents, without the joinder of the United States. “[A] patent should not be placed at risk of invalidation by the licensee without the participation of the patentee,” Schwarz Pharma, Inc., 504 F.3d at 1374, especially here where fewer than all “substantial rights” have been transferred from patent owner to licensee. In Intellectual Property Development Inc. v. TCI Cablevision of California, 248 F.3d 1333, 1347 (Fed.Cir.2001), the court gave dispositive weight to the licensee’s ability to only bring enforcement actions in limited circumstances, and only with consent of the patent owner. The Court also noted the licensee had no assignment rights. As a result, no “substantial rights” existed with the exclusive licensee. “In light of CPL’s [patent holder] right to permit infringement in certain cases, the requirement that CPL [patent holder] consent to certain actions and be consulted in others, and the limits in IPD’s right to assign its interests in the '202 patent, we find that the CPL IPD agreement at issue transfers fewer than all substantial rights in the '202 patent from CPL [patent holder] to IPD.” Id. at 1345; see also Vaupel Textilmaschinen KG v. Meccanica Euro Italia, 944 F.2d 870, 875 (Fed.Cir.1991) (The court noted the importance of having the right to sue for infringement in determining whether joinder of patent owner is required.) In Abbott Laboratories v. Diamedix Corp., 47 F.3d 1128 (Fed.Cir.1995), the exclusive licensee did not have “substantial rights” because it lacked full enforcement rights, and possessed no assignment rights: 1) the exclusive licensee, while possessing the right of first refusal to sue alleged infringers of the patent, could not “indulge” or permit an infringement, which the court noted normally accompanies a complete conveyance of the right to sue; 2) the exclusive licensee was prevented from assigning its rights under the license to any other party other than a successor in business; and 3) the patent owner retained the right to participate in a suit brought by the exclusive licensee. Here, the License Agreements specify that the Commission, as licensee, cannot file an infringement suit without first obtaining authorization from USDA, the patent holder: In the event of [] infringement, the parties hereto shall confer and shall use best efforts to reach mutual agreement upon the best course of action. See Ex. 1 (Sweet Scarlet License Agreement) § 8.1; Ex. 2 (Autumn King License Agreement) § 8.1; & Ex. 3 (Scarlet Royal License Agreement) § 8.1.5. The License Agreements further provide: USDA may grant the right of enforcement to THE COMMISSION, pursuant to Title 35, Section 207(a)(2) and Title 35, Chapter 29, of the U.S.Code. Id. at § 8.2 (emphasis added). The granting of the right of enforcement to THE COMMISSION shall be given thorough consideration on a case by case basis. Id. (emphasis added). The agreements reserve the right in the United States, to forego enforcement against infringers: The United States may “elect[] not to enforce the Licensed Patents or other intellectual property rights for the Licensed Variety against infringers.” Id. There is no indication here that the Commission sought or received authorization from the USDA to defend this declaratory judgment suit against the USDA’s patents. Last, the license agreements do not provide for assignment rights in the Commission: This Agreement shall not be transferred or assigned by THE COMMISSION to any party other than to a successor or assignee of the entire business interest of THE COMMISSION relating to the Licensed Variety, but in no event shall THE COMMISSION assign or transfer this Agreement to a party not a citizen, resident, or entity of the United States of America. THE COMMISSION shall notify USDA in writing prior to any transfer or assignment. (EL § 12.1). While Section 35 U.S.C. § 207(a)(2) provides federal agencies, such as the USDA, the ability to grant exclusive licenses, the USDA did not do so here: (a) Each Federal agency is authorized to— (2) grant nonexclusive, exclusive, or partially exclusive licenses under federally owned inventions, royalty-free or for royalties or other consideration, and on such terms and conditions, including the grant to the licensee of the right of enforcement pursuant to the provisions of chapter 29 of this title as determined appropriate in the public interest. 35 U.S.C. § 207(a)(2) (emphasis added). And in conjunction with 35 U.S.C. § 207(a)(2), Federal Regulations provide, pursuant to 37 C.F.R. § 404.5, licenses may contain provisions permitting the right to enforce the patent by the licensee, without joining the United States: (b) Licenses shall contain such terms and conditions as the Federal agency determines are appropriate for the protection of the interests of the Federal Government and the public and are not in conflict with law or this part. The following terms and conditions apply to any license: (2) Any patent license may grant the licensee the right of enforcement of the licensed patent without joining the Federal agency as a party as determined appropriate in the public interest. 37 C.F.R. § 404.5(b)(2). Plaintiffs cite to various portions of the License 28 Agreements to demonstrate the rights transferred to the Commission are “substantial rights” to the Patented Varieties. But none of these rights include the “right of enforcement” or the “right of assignment,” two determinative rights defining “substantial rights” under present case law: • The Commission has an “exclusive license” to “make, use, offer for sale, propagate, maintain, sell and otherwise exploit” the patented varieties. (EL § 2.1) • The Commission has the exclusive right to sublicense the patented varieties. (EL § 2.2) • The exclusive license has no expiration date. (EL § 7.1) • The Commission is entitled to “use all commercially reasonable efforts to protect USDA’s property rights in the Licensed Variety” and the USDA is required to confer with and reach mutual agreement with the Commission regarding infringement of the patents. (EL § 8.1) Under the sublicense agreements, Plaintiffs cite the following: • right to terminate the sub-license. (DGL § 8.2) • Right to force grower to destroy all wood of the Patented Variety. (DGL § 8.4) Plaintiffs cite Dow Chemical Co. v. Exxon Corp., 139 F.3d 1470 (Fed.Cir.1998). But the Dow Chemical court, in affirming the district court’s decision that joinder of the patent owner was not required, noted first that the patent owner was a wholly-owned subsidiary of the licensee defendant, and was thus not required because its interests were adequately protected, and second, because the licensee had been granted the right to sue for infringement and defend the patent owner in litigation: [Jjoinder was not required because, “as a practical matter, Exxon [Corp.] has both the duty and the capability of protecting ECPI’s interests.” [citation] Although ECPI remains the owner of the '783 patent, it has granted certain significant rights in the patent to Exxon Chemical Company (“ECC”), an unincorporated division of Exxon Corp. These rights include the right to sue for infringement of the patent, the right to defend ECPI in litigation concerning the patent, and the right to sublicense the patent without notifying ECPI. Id. at 1479 (citation omitted). The facts differ here. Plaintiffs also cite Eastern District of Pennsylvania, Pennsalt Chemicals Corp. v. Dravo Corp., 240 F.Supp. 837 (E.D.Pa. 1965). The Court held in a declaratory suit seeking to invalidate a patent, that the patent owner was not an indispensable party even though the licensee did not have specific right to sue infringers. The court permitted the suit to proceed against a licensee who had no enforcement rights. The Court noted that intervention was an option if further protection was sought by the patent owner. Despite this holding, the overall weight of the cases heavily favors evaluating license agreements on whether substantial rights are granted to the licensee. Here, the USDA did not provide the Commission, as the licensee, with the right of enforcement, nor the right of assignment, “substantial rights” in licensing the Patented Varieties. Plaintiffs argue that Defendant overlooks case law where courts have applied a different standard in determining necessary and indispensable defendants in actions for declaratory judgment seeking invalidity. They argue that courts have allowed declaratory judgment actions for invalidity to proceed against exclusive licensees without joining the patent owner. Plaintiffs cite A.L. Smith Iron Co. v. Dickson, 141 F.2d 3, 6-7 (2d Cir.1944) and Capri Jewelry Inc. v. Hattie Carnegie Jewelry Enterprises, Ltd., 539 F.2d 846, 847 (2d Cir.1976) (Friendly, J.). Capri Jewelry, however, is not applicable, as it was a case of shared counsel, and the facts here are not similar. Counsel in Capri Jewelry represented both the patent owner and the licensee and a 19(b) dismissal was reversed because the patent owner’s interest was determined to be adequately protected. “Counsel representing [the licensee], Hattie Carnegie in this suit are acting both for it [licensee] and for [the patent owner,] James in the infringement suit [brought against another jewelry distributor].” Id. at 853 (emphasis added); see also Parkson Corp. v. Andritz Sprout-Bauer, Inc., 866 F.Supp. 773, 775 (S.D.N.Y.1994) (highlighting shared counsel as critical fact in Capri Jewelry). The United States is not represented by the Commission’s counsel. A.L. Smith Iron Co. v. Dickson, 141 F.2d 3, 6-7 (2d Cir.1944) (“Dickson”), Plaintiffs’ second cite, a Second Circuit decision, does not comport with the more general and recent case law in this area. Dickson first noted the patent owner has an interest in deciding the forum and was a factor to be weighed: [I]ts only interest in the dismissal of the complaint is the interest of every patent owner in the choice of the forum in which, and the time at which, he will assert his rights. That too is an interest proper to be weighed against the plaintiffs interest in settling its present controversy with [licensee] Dickson ... Indeed, the owner may have granted a number of licenses, and it would be exceedingly oppressive to subject him to the will of all his licensees. Id. at 6. But due to the unique facts of the ease, the court held that the patent owner did not need to be joined to proceed with the case: The Court however, found that the patent owner had “plainly” used the licensee to enforce its right, and though it may not have surrendered its choice of forum, it had permitted the licensee to license, thus the court found it clearly had dwindled its right to choose a forum. Id. (emphasis added). Case law after Dickson, recognizes that it is an outlier case with its unique set of facts: “Recent ease law has tended to articulate the implicit denominator in the Dickson case. The emphasis today is upon the ability to bring suit to protect the patent against infringement; and, as a manifestation of that power, to be free to select the forum in which the question of infringement should be tried. Instead of predicating the right to sue upon the semantic categorization of litigants as ‘licensees’ or ‘assignees,’ the more recent cases have tended to place reliance upon the right to bring suit in affirmance of the patent. Then, assuming that right exists in the licensee, the licensee may be sued to test the validity of the licensed patent without the licensor-patentees being joined as a party defendant.” Caldwell Mfg. Co. v. Unique Balance Co., 18 F.R.D. 258, 263-264 (S.D.N.Y.1955); see also Alamo Refining Co. v. Shell Development Co., 99 F.Supp. 790, 800 (D.Del.1951); Messerschmitt-Boelkow-Blohm v. Hughes Aircraft Co., 483 F.Supp. 49, 52 (S.D.N.Y.1979); Alamo Refining Co. v. Shell Dev. Co., 99 F.Supp. 790, 800 (D.Del.1951). “The rationale of the general rule is that, whether the exclusive license is considered an assignment of all the patentee’s rights or not, the owner suffers no prejudice from a judgment of invalidity in his absence if by agreement he has entrusted the licensee with the right to protect his interests by suing for infringement.” Messerschmitt-Boelkow-Blohm, 483 F.Supp. at 52. “A patent owner has a property right which ought not to be adjudicated in his absence. This is a salutary principle which the courts have long recognized.” Technical Tape Corp. v. Minnesota Min. & Mfg. Co., 135 F.Supp. 505, 508 (S.D.N.Y.1955). Because the United States, as patent owner, owns and controls enforcement of the patents and assignability rights of the patents, and insufficient enforcement rights, without consent, were transferred to the Commission, the United States is a necessary party to this action under Rule 19. 2. Sovereign Immunity: Joinder Not Possible. When it has been determined that an absent party to the suit is “necessary” under Rule 19(a), the inquiry is whether that party, the United States, can be joined in the action. Dawavendewa v. Salt River Project Agr. Imp. and Power Dist., 276 F.3d 1150, 1159 (9th Cir.2002) (“Having determined that the Nation is thrice over a necessary party to the instant litigation, we next consider whether it can feasibly be joined as a party.”) Here, unless it is clearly shown that the United States has waived its sovereign immunity, it cannot be joined. “Absent a waiver, sovereign immunity shields the Federal government and its agencies from suit.” F.D.I.C. v. Meyer, 510 U.S. 471, 475, 114 S.Ct. 996, 127 L.Ed.2d 308 (1994). “It is axiomatic that the United States may not be sued without its consent and that the existence of consent is a prerequisite for jurisdiction.” United States v. Mitchell, 463 U.S. 206, 212, 103 S.Ct. 2961, 77 L.Ed.2d 580 (1983). “It long has been established, of course, that the United States, as sovereign, ‘is immune from suit save as it consents to be sued ... and the terms of its consent to be sued in any court define that court’s jurisdiction to entertain the suit.’ ” United States v. Testan, 424 U.S. 392, 399, 96 S.Ct. 948, 47 L.Ed.2d 114 (1976) (internal quotation marks omitted, omission in original). Absent a waiver, sovereign immunity bars any proceeding against property in which the United States has an interest. See United States v. Alabama, 313 U.S. 274, 282, 61 S.Ct. 1011, 85 L.Ed. 1327 (1941). If the United States is immune from suit and no waiver is available, the United States cannot be joined under Rule 19(a), and is an indispensable party under Rule 19(b). See e.g., Dawavendewa, 276 F.3d at 1161 (because tribe enjoys tribal sovereign immunity, it cannot be joined). A waiver of sovereign immunity must be unequivocally expressed. Department of Army v. Blue Fox, Inc., 525 U.S. 255, 256, 119 S.Ct. 687, 142 L.Ed.2d 718 (1999). The Government’s consent to be sued must be construed strictly, in favor of the sovereign. Id. Whether sovereign immunity has been waived depends on the language of a federal statute. Good Samaritan Hosp. v. Shalala, 508 U.S. 402, 409, 113 S.Ct. 2151, 124 L.Ed.2d 368 (1993) (“The starting point in interpreting a statute is its language, for ‘[i]f the intent of Congress is clear, that is the end of the matter.’ ”); United States v. Turkette, 452 U.S. 576, 580, 101 S.Ct. 2524, 69 L.Ed.2d 246 (1981) (“In determining the scope of a statute, we look first to its language.”) This suit is against a United States’ agency, USD A. Any suit against a federal agency is a suit against the United States for the purposes of sovereign immunity. United States v. Mitchell, 463 U.S. 206, 212, 103 S.Ct. 2961, 77 L.Ed.2d 580 (1983). A declaratory judgment seeking invalidity of a U.S.-owned patent squarely implicates sovereign immunity. Further, property owners are generally necessary parties to actions that could affect their property interests adversely. The United States, as owner of the Patented Varieties, is no exception. In Tegic Communications Corp. v. Board of Regents of the University of Texas System, 458 F.3d 1335 (Fed.Cir.2006), Eleventh Amendment immunity barred a suit against a state University. Plaintiffs sought a declaratory judgment to invalidate the University-owned patent. As a result, the patent owner, the University, was dismissed. Id. at 1345; see also Xechem Intern., Inc. v. University of Tex. M.D. Anderson Cancer Center, 382 F.3d 1324 (Fed.Cir.2004) (parties and court accepted that absent waiver or abrogation, state sovereign immunity precluded litigation against the state university in a suit seeking to correct inventorship of patents owned by the university). Plaintiffs argue that Defendant’s Eleventh Amendment state sovereignty cases are not applicable here, because they concern state immunity. However, the state immunity cases demonstrate the importance of adhering to an entity’s sovereign immunity, and absent a waiver of sovereign immunity, suits to invalidate a patent, owned by a sovereign, federal or state, are barred. If there is uncertainty, case law concludes that sovereign immunity applies. If ambiguity about waiver of sovereign immunity remains, that ambiguity must be interpreted to preserve sovereign immunity of the United States. “[A] waiver of the Government’s sovereign immunity will be strictly construed, in terms of its scope, in favor of the sovereign.” Lane v. Pena, 518 U.S. 187, 192, 116 S.Ct. 2092, 135 L.Ed.2d 486 (1996). Under the only patent-related waiver of sovereign immunity, 28 U.S.C. § 1498 permits private parties to bring patent infringement suits in United States Federal Claims Court to seek money damages only. 28 U.S.C. § 1498. “In waiving its own immunity from patent infringement actions in 28 U.S.C. § 1498(a) (1994 ed. and Supp. III),” the United States did not consent to treble damages nor injunctive relief, and permitted reasonable attorney’s fees in a narrow class of specified instances. Florida Prepaid Postsecondary Educ. Expense Bd. v. College Sav. Bank, 527 U.S. 627, 648, n. 11, 119 S.Ct. 2199, 144 L.Ed.2d 575 (1999). This suit must be brought in Federal Claims Court against the United States and by its plain terms 28 U.S.C. § 1498 does not cover declaratory judgments seeking to invalidate a patent. Further, the federal statute covering declaratory relief actions, the Declaratory Judgment Act, 28 U.S.C. § 2201, standing alone, does not waive sovereign immunity. Wyoming v. United States, 279 F.3d 1214, 1225 (10th Cir.2002) (the declaratory judgment statute, 28 U.S.C. § 2201, itself does not confer jurisdiction on a federal court where none otherwise exists). “It is well settled, however, that said Act [Declaratory Act] does not of itself create jurisdiction; it merely adds an additional remedy where the district court already has jurisdiction to entertain the suit.” Wells v. United States, 280 F.2d 275, 277 (9th Cir.1960). There are limited waivers of sovereign immunity enacted by Congress for suits involving property interests of the United States, but such statutes do not address a waiver for patent-property interests of the U.S. Generally property owners are necessary parties to actions that could adversely affect their property interests and the United States is no exception, as a patent owner. The United States cannot be joined absent a clear waiver of sovereign immunity. Plaintiffs have not shown such a waiver exists. The United States cannot be joined. Plaintiffs argue § 702 of the Administrative Procedure Act (“APA”), Title 5 United States Code, eliminates in almost every circumstance, the defense of sovereign immunity to actions seeking non-monetary relief against unlawful action by government agencies and officials. Section 702 of the APA states: A person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof. An action is a court of the United States seeking relief other than money damages and stating a claim that an agency or an officer or employee thereof acted or failed to act in an official capacity or under color of legal authority shall not be dismissed nor relief therein be denied on the ground that it is against the United States or that the United States is an indispensable party. The United States may be named as a defendant in any such action, and a judgment or decree may be entered against the United States: Provided, that any mandatory or injunctive decree shall specify the Federal officer or officers (by name or by title), and their successors in office, personally responsible for compliance. 5 U.S.C. § 702 (emphasis added). The one limitation to this waiver of sovereign immunity for non-monetary actions against the United States is if “any other statute that grants consent to suit expressly or impliedly forbids the relief which is sought.” 5 U.S.C. § 702(2) (emphasis added). Defendant refers to the text of § 702 to argue that it forecloses Plaintiffs’ argument concerning the APA as a waiver of sovereign immunity because Plaintiffs are not seeking a review of agency “action” or “inaction,” as the suit is brought against the Commission only, the state agency and seeks, based on the actions of the Commission, a declaration of invalidity of the U.S.owned patents. In addition, Defendant for the first time in its Reply, discusses the split in the Ninth Circuit on whether final agency action is required to seek review under § 702 of the APA. Plaintiffs were not afforded an opportunity to respond. However, in the later case, Gallo Cattle Co. v. U.S. Dept. of Agriculture, 159 F.3d 1194 (9th Cir.1998), the Court held that review of agency action under the APA, only is available if it constitutes “final agency action” for which there is no other adequate remedy in a court or agency action that is made reviewable by statute. 5 U.S.C. § 704. However, in an earlier Ninth Circuit Court decision, The Presbyterian Church (U.S.A.) v. U.S., 870 F.2d 518 (9th Cir.1989), which involved an injunctive suit brought against the Immigration and Naturalization Service (“INS”), for violation of First and Fourteenth Amendment rights, the court did not limit § 702’s sovereign immunity waiver to “agency action” as is technically defined in § 551(13) of the APA: “ ‘agency action’ includes the whole or a part of an agency rule, order, licens