Pipeline Technologies Inc. (“Pipeline”) filed a patent infringement action against Telog Instruments Inc. (“Telog”). Telog filed a motion for summary judgment, seeking summary judgment on the ground that the disputed claims of U.S. Patent 7,219,553 (‘553 patent) are invalid for indefiniteness under 35 U.S.C. § 112(b).
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Articles Posted in District Courts
Court Excludes Plaintiff’s Experts Where Experts Failed to Comply with Rule 26 Disclosures
In this patent infringement action, the defendants, Hangzhou Langhong Technology Co., Ltd. and Langhong Technology USA Inc., moved to exclude the testimony of plaintiff’s experts on infringement and damages. The district court had previously issued a scheduling order setting March 26, 2014 as the deadline for the parties to designate their experts and to make the disclosures required by Rule 26(a)(2) of the Federal Rules of Civil Procedure.
As explained by the district court, Rule 26(a)(2) requires that the expert’s report must contain, inter alia, a complete statement of all opinions the witness will express and the basis and reasons for them. Fed. R. Civ. P. 26(a)(2)(B)(i). The district court then found that “[t]he report prepared by Rogers provides virtually none of the information required by Rule 26(a)(2)(B)(i). Plaintiff’s response to the motion asserts as an excuse for noncompliance lack of sufficient discovery before Rogers prepared his report for him to have the information he would need to comply with the requirements of Rule 26(a)(2)(B). After a thorough review of the material provided by the parties, the court is not persuaded that plaintiff’s excuse for noncompliance with the scheduling order as to Rogers has merit. Plaintiff had ample time before Rogers prepared and submitted his report for the collection of whatever information it needed for Rogers to provide the information in his report required by Rule 26(a)(2)(B)(i).”
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Motion to Stay Enforcement of Judgment Denied Where Defendant Was Found to be a Willful Infringer and Offered Inadequate Security
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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District Court Denies Preliminary Injunction Where Plaintiffs Could Not Show Irreparable Harm Because Defendant Is Large and Well Established Company
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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Motion to Set Aside Default Where Defendant Waited Too Long to Obtain New Counsel
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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Image Processing Patent Held To Be An Abstract Idea Under Alice Corp.
Digitech Image Technologies (“Digitech”) asserted U.S. Patent No. 6,128,415, directed to the generation and use of device profiles for digital image processing system against numerous defendants, including Xerox and Fujifilm Corporation. Digitech appealed the district court’s finding on summary judgment that the asserted claims were invalid under 35 U.S.C. §101. Specifically, Digitech argued that the district court erred in finding (1) that the device profile claims are directed to a collection of data that lacks tangible or physical properties and (2) that the asserted method claims encompass an abstract idea not tied to a specific machine or apparatus. The Federal Circuit affirmed the decision of the district court.
The ‘415 patent was aimed at reducing distortion of an image’s color and spatial properties caused by imaging devices (e.g. digital cameras, TVs, printers) due to the fact that such devices differ in the range of colors and spatial information that they utilize. According to the court, independent claims 1 and 26 described a device profile as “a collection of information; specifically, a description of a device dependent transformation of spatial and color information”:
1. A device profile for describing properties of a device in a digital image reproduction system to capture, transform or render an image, said device profile comprising:
After Entry of Judgment, District Court Orders Deposit of Amount of Judgment Plus 20% Interest for One Year in order to Obtain Stay of Execution Pending Appeal
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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Motion for Leave to File Billing Statements Under Seal Denied Where Billing Descriptions Were Not Protected by the Attorney-Client Privilege
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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Invalidity Expert Excluded Where Expert Failed to Conduct a Proper Written Description Analysis
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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Motion to Dismiss Granted Where Patent Infringement Complaint Alleged Joint Infringement But Failed to Allege Direction and Control
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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