Articles Posted in District Courts

On May 16, 2014, the district court entered Judgment on a jury verdict in favor of Plaintiff Global Traffic Technologies, LLC (“GTT”) in the amount of $5,052,118, enhanced damages in the amount of $2,526,059, and prejudgment interest in the amount of $923,965, plus $1,384.14 for each day after October 31, 2013. Defendants Morgan and KME requested that the district court stay execution of judgment and waive the supersedeas bond requirement. Defendant STC requested that the district court stay execution of judgment with an authorized bond of $100,000, together with pending patent applications in the field of traffic signal preemption.

As the district court explained, “[a]n appellant may obtain a stay of execution of judgment pending appeal when an appellant posts a supersedeas bond, “in the full amount of the judgment plus interests, costs, and damages for delay.” Fed.R.Civ. P. 62(d); Corporate Comm’n of the Mille Lacs Band of Ojibwe Indians v. Money Ctrs. of Am., Inc., No. 12-1015, 2013 U.S. Dist. LEXIS 176796, at *2 (D. Minn. Dec. 17, 2013) (citing New Access Commc’ns LLC v. Qwest Corp., 378 F. Supp. 2d 1135, 1138 (D. Minn. 2005) (Tunheim, J.)). The Court maintains the discretion, however, to waive the bond requirement and stay enforcement of the judgment without a bond.”
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Plaintiff Hill-Rom Company, Inc. (“Hill-Rom”) filed a motion for a preliminary injunction against General Electric Company (“GE”). The district court began its discussion by noting that “[t]he Federal Circuit has said that preliminary injunctions are a “drastic and extraordinary remedy” that should not routinely be used. Nat’l Steel Car. Ltd. v. Canadian Pac. Rv., Ltd., 357 F.3d 1319, 1324 (Fed. Cir. 2004). There are four factors to consider when determining whether to grant a preliminary injunction in a patent infringement case: 1) likelihood of success on the merits; 2) irreparable harm; 3) the balance of hardships; and 4) the public interest. Celsis In Vitro. Inc. v. CellzDirect. Inc., 664 F.3d 922, 926 (Fed. Cir. 2012).”

The district court then focused on the irreparable harm factor. “The most salient of the factors in the present case is the second, concerning irreparable harm. The Court FINDS that the Plaintiffs have not made a sufficient showing that., without a preliminary injunction, they will suffer irreparable harm. General Electric Company (“GE”) is a very large and well established corporation; any harm that Hill-Rom may suffer from GE manufacturing and selling its AgileTrac Hand Hygiene System (“AgileTrac”) can be quantified and the Plaintiffs will be able to be made whole. There is no question that the Plaintiffs will be able to collect on a judgment, should they win one.
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Plaintiff Fleet Engineers, Inc. (“Fleet”) develops, manufactures, and sells after-market products for the trucking industry. Defendant Tarun Surti, the president of Mudguard Technologies, LLC (“Mudguard”), owns a mud flap patent on which this lawsuit is focused. Fleet filed a complaint which asserted three claims: (1) a request for a declaratory judgment of non-infringement, (2) a request for a declaratory judgment of patent invalidity, and (3) tortious interference with a business relationship. Defendants answered the complaint and filed three counterclaims: (1) patent infringement, (2) breach of contract, and (3) misappropriation of trade secrets.

After the Court held a claim construction hearing, counsel for the defendants requested leave to withdraw from the lawsuit. On September 24, 2013, the Court granted the motion and ordered the defendants to retain new counsel within 30 days. Defendants requested an extension until December 20. On October 25, 2013, this Court gave Defendants an additional 28 days to find new counsel, extending the deadline to November 25, 2013. On November 22, Defendants again requested additional time to hire counsel, which the district court granted but warned Defendants that if counsel did not enter an appearance by December 20, default would enter against Mudguard.
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Innovention Toys, LLC prevailed in a patent infringement action against MGA Entertainment. After the Court entered a final judgment, the parties agreed that execution of the judgment should be pending resolution of post-judgment motions and appeal but disagreed regarding the amount Defendant MGA should deposit with the district court as security.

MGA argued that it should only deposit the amount of the judgment plus one year of post-judgment interest at 0.10%. Innovention asserted that MGA should deposit the amount of the judgment plus 20%, citing Local Rule 62.2.
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Plaintiffs filed a motion to permit them to file an affidavit, along with billing documents, under seal. The affidavit, along with its exhibits, was forty-seven pages in length. In the motion, the Plaintiffs contend that “the fees charged for each attorney as well as information contained in the time entries are confidential and private financial information of Plaintiffs and Plaintiffs’ counsel and is not publicly available information.” The district court stated that the Plaintiffs did not cite any case law in support of their position.

The district court then examined the relevant local rules. Local Rule 26.2 states: “Except as otherwise provided by statute, rule, or order, all pleadings and other papers of any nature filed with the Court (“Court Records”) shall become a part of the public record of this Court.” E.D. Tenn. L.R. 26.2(a). In order to seal any part of the record, a party must show good cause. E.D. Tenn. L.R. 26.2(b).
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Plaintiff Trading Technologies International, Inc. (“TT”) moved to strike the invalidity expert report of the defendant, CQG. TT made two arguments its motion: “(1) that Dr. Mellor failed to conduct a proper written description analysis because, according to TT, he incorrectly focuses on features that are not recited in the claims and concludes that there is no written description to support the unclaimed features; and (2) that Dr. Mellor failed to consider the perspective of one of ordinary skill in the art in his written description analysis.”

CQG responded that TT mischaracterized Dr. Mellor’s opinions and that Dr. Mellor correctly applied the written description test to determine whether a person of ordinary skill in the art would understand whether the inventors were in possession of TT’s asserted Static Limitation. CQG further asserted that TT misrepresented Dr. Mellor’s explanation of a person of ordinary skill in the art and offered no explanation why the district court should adopt TT’s definition.
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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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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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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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