May 18, 2011

Judge Robinson: Jury verdict in favor of Boston Scientific

On May 11, 2011 a jury returned a verdict in favor of Boston Scientific Corporation and against Cordis Corporation in the amount of $19,531,492.00 in a patent infringement case involving heart stents.

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May 17, 2011

Judge Robinson: Result of Earlier Patent Infringement Case Relevant to Lost Profits and Reasonable Royalty Analysis

In Boston Scientific Corp. v. Cordis Corp., C.A. No. 10-315-SLR (D. Del. May 4, 2011), Judge Robinson recently stated that the result of an earlier patent infringement case involving the same parties, the same patent, and the same asserted claim "is relevant to both lost profits and a reasonable royalty analysis[.]" Id. at 1. However, Judge Robinson limited the introduction of evidence of the earlier case to a single statement, to be read at trial, that (1) the earlier case involved the same parties, patent, and asserted claim, (2) the jury found that the defendant's products infringed and that the claim was not invalid, and (3) that this finding was affirmed on appeal and therefore "the jury verdict and judicial determinations of infringement and validity are final." Id. at 1-2.

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May 13, 2011

Judge Dalzell: All proceedings before Judge Dalzell STAYED pending confirmation of Richard G. Andrews as U.S. District Judge

In Shire LLC v. Teva Pharms USA, Inc., C.A. No. 10-329 (D. Del. May 12, 2011), Judge Dalzell, sitting by designation due to the judicial vacancy in the District of Delaware, stayed all proceedings pending confirmation of the President's nominee to fill the vacancy -- Richard G. Andrews.

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May 6, 2011

Judge Sue L. Robinson: Motion to Stay an ANDA case pending appeal of litigation involving the same patents GRANTED

In Cephalon, Inc. v. Sandoz Inc., C.A. No. 10-123-SLR (D. Del. May 5, 2011), an ANDA case, Cephalon filed a motion to stay pending its appeal of related litigation. In the related case, involving the same patents, the court found that the defendant did not infringe and that the patents were invalid. Id. at 2. Judge Robinson determined that a stay was appropriate because, among other things, Sandoz’s 30-month stay was set to expire in July 2012, which would likely occur after the Federal Circuit disposed of the appeal. Id. at 4. “If the Federal Circuit affirms the court’s invalidity holding, there is no reason for trial and the expenses related thereto.” Id. Judge Robinson found that Sandoz would not be prejudiced because, among other things, it could not enter the marketplace prior to July 2012. Id.

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May 6, 2011

Judge Robinson: Cross-Motions for Summary Judgment DENIED

In Oracle Corp. v. Parallel Networks, LLC, C.A. No. 06-414-SLR (D. Del. Apr. 29, 2011), Judge Robinson recently issued an amended memorandum order denying both parties' motions for summary judgment. After finding that several genuine issues of material fact compelled the denial of Parallel's motion for partial summary judgment of literal infringement, the court found that "Parallel has proffered sufficient circumstantial and direct evidence [of direct infringement by Oracle customers] to withstand summary judgment as to . . . the issue of induced infringement." Id. at 28-29. This evidence included a presentation at an Oracle conference and a best practices document, both of which allegedly instructed Oracle customers "'how to use the Accused Oracle Products in an infringing manner'" and "'freely and openly strongly encourage[d] them to do so.'" Id. Judge Robinson further denied Oracle's motion as to contributory infringement, rejecting Oracle's argument that it had adequately demonstrated "that each of its accused products have significant noninfringing uses[.]" Id. In denying Oracle's motion, Judge Robinson stated that "[a] reasonable jury could find that the accused products do not meet the definition of a staple article of commerce." Id. at 29.

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May 5, 2011

Judge Robinson: Admitting Clinical Trial Data and Allowing Fact Witness

Last Thursday, in Boston Scientific Corp. v. Cordis Corp., Civ. No. 10-315-SLR (D. Del. Apr. 28, 2011), Judge Robinson issued a memorandum order allowing the defendant to (1) present clinical trial data as evidence, and (2) present Dr. Campbell Rogers as a fact witness.

Judge Robinson noted that the clinical trial data "may be relevant under the entire market value rule," and that excluding the data would "parse the actual story of this dispute with too broad a stroke." Id. at 1. Judge Robinson also limited Dr. Rogers's testimony regarding the clinical trial data "based upon the determination of the clinical trial data's relevance[.]" Id. at 2.

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May 4, 2011

Chief Judge Sleet: Terms Construed in Fifth Market

Last week, in Fifth Market, Inc. v. CME Group, Inc, C.A. No. 08-520-GMS, Chief Judge Sleet issued a claim construction order construing the following terms:

  • price
  • algorithm
  • trader terminal[s]
  • algorithmic . . . orders
  • security instrument
  • equity market[s]
  • negotiating
  • independent variable
  • dependent variable
  • external
  • incoming orders
  • one security [item]
  • which may be used as
  • through the use of the external multiple data sources

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May 4, 2011

Chief Judge Sleet: Default Granted in Patent Case

Last month, Chief Judge Sleet issued a default judgment in a patent and trademark infringement action by Hesco Bastion Limited (Hesco Bastion Limited v. ACS Holdings, USA, LLC, C.A. No. 08-266-GMS). The Court issued a permanent injunction, and awarded Hesco $2 million in damages and $1,954,391.08 in attorney’s fees, plus costs.

How did this happen? Apparently, ACS simply ran out of money to pay its counsel. According to its counsel (during a conference on its counsel's motion to withdraw), "ACS lacked funds to pay [its counsel], had no cash flow, and . . . shut down its business in Bogata, Columbia."

ACS had apparently filed an answer, but no expert report on non-infringement, and failed to meet its obligations under the scheduling order to “cooperate with Hesco in connection with required pretrial activities.” On April 16, 2010, ACS’s counsel filed their motion to withdraw due to a failure to receive payment, which was granted, and ACS was unable to obtain substitute counsel. On May 10, 2010, Hesco filed a motion for default.

On January 5, 2011, the Court issued an order to show cause; ACS replied that it lacked the funds to hire substitute counsel. On Feb. 28th the clerk entered default, and on March 30, 2011, the Court held a hearing on the motion for default judgment. Finally, on April 14th, 2011, the Court granted Hesco’s motion for default, and awarded the permanent injunction and damages.

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April 27, 2011

Judge Stark: Motion to Stay Pending Reexamination GRANTED

In CIMA Labs Inc. v. Mylan Pharmaceuticals, Inc., C.A. No. 10-625-LPS (D. Del. Apr. 18, 2011), Judge Stark granted the plaintiffs' motion to stay pending resolution of the PTO's reexaminations of the patents-in-suit.

The plaintiffs held patents covering orally-disintegrating clozapine tablets in certain dosages. In July 2010, the plaintiffs initiated this Hatch-Waxman patent infringement action against the defendants after the defendants filed an ANDA seeking approval to market a generic orally-disintegrating clozapine product. Id. at 1-2.

Judge Stark noted that "[w]hether or not to stay litigation pending reexamination by the PTO of the patents-in-suit is a matter left to the Court's discretion" and typically requires an evaluation of three factors: "(1) whether a stay will simplify the issues and trial of the case, (2) whether discovery is complete and a trial date has been set, and (3) whether a stay would unduly prejudice or present a clear tactical disadvantage to the non-moving party." Id. at 4.

Applying these factors, Judge Stark found that (1) a stay would simplify the issues and trial of the case because, inter alia, all disputed claims "currently stand rejected in the reexaminations[,]" id. at 5-6, (2) no discovery had taken place and no "milestone dates" had been set ("the instant lawsuit is in its infancy"), id. at 6-7, and (3) "a stay would impose no undue prejudice to Mylan sufficient to outweigh the other considerations[,]" id. at 7. On balance, the court found that these factors "tip the interests against proceeding at this time with this litigation." Id. at 7-8.

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April 25, 2011

Judge Stark: Motion to dismiss patent infringement complaint for failure to state a claim against holding company DENIED

Judge Stark recently decided defendant Nikon Americas, Inc.’s motion to dismiss for failure to state a claim. Tarkus Imaging, Inc. v. Adobe Systems, Inc., et al., C.A. No. 10-63-LPS (D. Del. Apr. 21, 2011). Nikon Americas’ motion was premised on the fact that because Nikon Americas was a holding company, it could not infringe the patent-in-suit. Id. at 1. Specifically, Nikon Americas’ argued that because it does not “make, use, offer to sell, sell, or import into the United States the allegedly infringing products or, in fact, any products whatsoever[,]” it cannot be found to infringe the patent-in-suit. Id. at 3 (internal quotations omitted). Judge Stark found that plaintiff had alleged facts sufficient to survive Nikon Americas’ motion to dismiss and that Nikon Americas’ “general denial” of infringement “does not provide a basis to dismiss this case.” Id. at 4. “Accepting [plaintiff’s] well-pleaded allegations as true, this Court finds that it is at least plausible to believe that [Nikon Americas] infringes the [patent-in-suit].” Id. at 5.

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