April 2014 Archives

Versata v. SAP: Stay of $390 Million Judgment Denied Even Though PTAB Found Patent Invalid

April 30, 2014

After the jury returned a verdict of approximately $390 million against SAP and the verdict was affirmed on appeal, the Patent Trial and Appeal Board ("PTAB") preliminarily invalidated the patent (subject to appeal to the Federal Circuit). As a result, SAP moved to stay the execution of the judgment or, in the alternative, to vacate the judgment.

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Motion to Redact Transcripts in Patent Case Denied Where Information Was Disclosed in Open Court

April 28, 2014

In this patent infringement action, both parties moved to redact information from the transcripts and both motions were unopposed. The district court found that the information should be redacted because it had been disclosed in open court.

In reaching this conclusion, the district court noted that there were procedures in place on redacting personal information, such as social security numbers, from transcripts. "The Eastern District has procedures to redact personal information from transcripts. See The Ohio Willow Wood Company v. Thermo-Ply, Inc., 9:07-CV-274, Docket No. 27 (Clark, J.); Transcript Procedures for Attorneys (2008)1; Local Rule CV-5.2. The policy protects four categories of personal data identifiers, namely social security and taxpayer-identification numbers, dates of birth, initials of minor children, and financial account numbers."

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Carnegie Mellon v. Marvell: District Court Declines to Liquidate Ongoing Royalties into Final Judgment

April 23, 2014

Having obtained a $1.5 billion judgment and an ongoing royalty against Marvell, Carnegie Mello University ("CMU") sought to liquidated the ongoing royalty amount in the Final Judgment. In response, Marvell argued that the district court made clear in its decision that such ongoing royalties are to be dealt with as a separate matter. The parties are battling over these amounts as they will impact the amount of the supersedas bond, which will be a very significant amount given the damage award.

The district court agreed with Marvell, finding that the ongoing royalties should be addressed as a separate matter and not be liquidated in the Final Judgment. "To this end, as the Court recounted in its decision of March 31, 2014, through its various post-trial motions, CMU sought supplemental damages for damages which accrued from July 2012 until the date of the initial Judgment in this case, i.e., January 14, 2013, and the Court awarded supplemental damages of $79,550,288.00, a figure which represented the supplemental damages for the infringement until that date. (Docket No. 933])."

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Andrulis v. Celgene: District Court Dismisses Undivided Direct Infringement Claim But Permits Joint Direct Infringement Claim to Proceed

April 21, 2014

Plaintiff Andrulis Pharmaceuticals Corp. ("Andrulis") filed a patent infringement action against Celgene Corporation ("Celgene") alleging direct, induced, and contributory infringement. Celgene filed a motion to dismiss arguing that the complaint failed to state a claim.

After Andrulis voluntarily dismissed the contributory infringement claim, the district court analyzed the claims for direct and induced infringement. For direct infringement, Andrulis alleged two factually distinct theories. "The first is that Celgene itself directly infringes the claims because it administers the patented method, which Andrulis refers to as the undivided direct infringement claim. The second is that Celgene is a joint infringer because physicians administer the patented method under Celgene's direction and control, which Andrulis refers to as the joint direct infringement claim."

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Motion to Dismiss Granted Where Patent Infringement Complaint Alleged Joint Infringement But Failed to Allege Direction and Control

April 16, 2014

Plaintiff Nu Flow Technologies (2000) Inc. ("Nu Flow) filed a patent infringement action against Defendant A.O. Reed & Company ("A.O. Reed") and ten Doe defendants based on two patents U.S. Patent No. 7,849,883 B2 (the '883 patent) and U.S. Patent No. 6,691,741 132 (the '741 patent). The '883 patent, entitled "Liner Assembly for Pipeline Repair and Methods of Installing Same," claims a liner assembly used to repair a pipeline. The '741 patent, entitled "Installation Assemblies for Pipeline Liners, Pipeline Liners and Methods for Installing the Same," claims an installation assembly and a method for installing a liner in a pipeline.

A.O. Reed moved to dismiss the complaint, arguing that the Complaint should be dismissed because Nu Flow's allegations of joint infringement fail to meet the pleading standard of Twombly and Iqbal. Joint infringement exists only "if one party exercises control or direction over the entire process such that every step is attributable to the controlling party, i.e., the mastermind." Muniauction, Inc. v. Thomson Corp., 532 F.3d 1318, 1329 (Fed. Cir. 2008) (internal quotation marks omitted).

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Declaratory Judgment Action Dismissed for Lack of Personal Jurisdiction Where Contacts in Jurisdiction Occurred Before, and Were Unrelated to, Patent-in-Suit

April 14, 2014

Digital Ally, Inc. ("Digital Ally") filed a declaratory judgment action pertaining to patent infringement against Utility Associates, Inc. ("Utility"). Utility filed a motion to dismiss for lack of subject matter and personal jurisdiction.

Digital Ally is a Nevada corporation with its principal place of business in Kansas. It sells advanced digital video systems to consumers, including law enforcement agencies, across the country. Utility, which is a competitor of Digital Ally, is incorporated in Delaware and has its principal place of business in Georgia. Utility has no offices in Kansas and none of its employees or sales agents reside in Kansas. Utility is not registered to do business in Kansas, but it does sell some products to a few customers in Kansas.

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Misstatements on Application for In Forma Pauperis Status Results in Dismissal of Patent Infringement Action with Prejudice

April 9, 2014

Plaintiff filed a patent infringement action and also filed an application to proceed in pro per and In Forma Pauperis. The defendants file a motion to dismiss the action based on false statements in the application.

As the district court explained, "[t]he Application requires the applicant to detail all sources of income he has received within the last twelve months and to declare under penalty of perjury that all of the information provided is true. The Declaration further notes that the applicant understands that a false statement may result in a dismissal of the claims."

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Carnegie Mellon v. Marvell: District Court Enhances Damages to $1.5 Billion

April 7, 2014

After a jury returned a verdict against Marvell for patent infringement, Carnegie Mellon ("CMU") filed several motions, including for prejudgment interest, for supplemental damages, for enhanced damages, for an ongoing, increased royalty rate triple what the jury found, and for a permanent injunction.

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Stay Pending Resolution of Covered Business Method Review Denied Where Case Was Narrow and Trial Date Was Already Set

April 2, 2014

Plaintiff SecureBuy, LLC ("SecureBuy") filed a Motion to Stay Proceedings pending resolution of a Covered Business Methods ("CBM") review at the Patent Trial and Appeals Board ("PTAB"). When the motion was stayed, the PTAB had not yet granted review of the CBM petition.

Before ruling on the stay request, the district court had previously heard argument on defendant's motion for preliminary injunction or in the alternative for expedited discovery and an expedited trial. The district court denied the preliminary injunction but granted Defendant's request to expedite the case and scheduled trial for August of 2014. When it opposed the preliminary injunction and expedited trial, SecureBuy made similar arguments as it raised in its motion to say pending the CBM review, which the district court considered when ruling on the previous motion.

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