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Judge Robinson recently decided Honeywell’s renewed summary judgment motion on invalidity of the patent-in-suit and Honeywell’s summary judgment motion of no willful infringement after the Federal Circuit reversed in part the court’s opinion on invalidity under §102(g). Solvay, S.A. v. Honeywell Specialty Materials LLC, C.A. No. 06-557-SLR (D. Del. Aug. 26, 2011). Judge Robinson denied Honeywell’s motion for summary judgment of invalidity under 102(g). The court found that a Russian group, RSCAC, under research contract with Honeywell, qualified as “another inventor” who conceived the invention and reduced it to practice in this country. Id. at 6. The invention was conceived and reduced to practice in Russia and then RSCAC sent instructions to Honeywell who used the instructions to reduce the invention to practice in the United States. Id. However, Solvay raised a genuine issue of material fact as to whether RSCAC suppressed or concealed the invention because a confidentiality agreement between RSCAC and Honeywell precluded RSCAC from disclosing the invention. Id. at 9.

Judge Robinson granted Honeywell’s motion for summary judgment of no willful infringement, finding that Honeywell presented a credible invalidity defense. Id. at 13. It was irrelevant that the Federal Circuit ultimately rejected Honeywell’s 102(g) defense. Id. Judge Robinson also noted that “Solvay discredited its own contentions regarding the baselessness of Honeywell’s invalidity defenses by failing to move for summary judgment of validity or willfulness[.]” Id. at 13-14.

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Earlier this month, the ABA Journal began accepting nominations for its annual list of the 100 best legal blogs (“blawg”). They are accepting “Amici Forms” where you can nominate a blog that you read regularly and you think others should know about. The form is extremely simple and aside from some information about the person making the nomination, asks only “Why are you a fan of this Blawg?” Nominations must be submitted by Friday, September 9.

The Delaware IP Law Blog was the first IP Blog in Delaware and we work to keep you up to date with the latest decisions and news from the district court in an unbiased, yet informative way. Although our blog covers only a specific region, our readers span the globe and share one thing – an interest in some of the most interesting and important decisions in intellectual property.

A link to the amici form is provided below.

http://www.abajournal.com/blawgs/blawg100_submit/

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In a recent ANDA case involving valganciclovir hydrochloride 450 mg tablets, Judge Sleet construed the term “compound 2-(2-amino-l ,6-dihydro-6-oxo-purin-9-yl)methoxy-3-hydroxy-lpropanyl-L-valinate hydrochloride in crystalline form” to mean “valganciclovir hydrochloride in a physical form having molecules arranged in a regularly repeating three dimensional pattern.”

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On August 11, Chief Judge Sleet denied several post-trial motions in CNH America LLC v. Kinze Manufacturing, Inc., C.A. No. 08-945-GMS (D. Del. Aug. 11, 2011). A jury found in February that all of the claims of the two patents asserted by CNH were invalid as anticipated, and all but two of them were also invalid as obvious.

Patent-holder and plaintiff CNH brought a motion for JMOL or a new trial on invalidity. CNH presented a number of arguments – here are a few of the more interesting ones:

  • CNH argued that it was entitled to a new trial because defendant Kinze presented a previously-undisclosed video at trial. The Court found that this was merely a new copy of a previously-disclosed video, this time with better production values. Id. at 8-9.
  • CNH argued against anticipation and obviousness on various bases; the Court denied all of these, and characterized many of them as attempts by CNH to present late claim construction arguments. Id. at 11-16.
  • CNH argued that the jury must have erred in determining that certain claims were anticipated but not obvious. The Court rejected these arguments based on a statement by the Federal Circuit that a determination of non-obviousness does not necessarily foreclose anticipation. The Court also noted that Third Circuit precedent actually controls this issue, and does not support CNH’s position. Id. at 16-19.

Defendant Kinze also presented two motions:

  • Kinze moved for JMOL of obviousness as to the two claims that were anticipated but not obvious. The Court refused to rule on the substance of this issue, on the grounds that it would not affect the scope of the judgment (the Court did state, however, that the motions could be renewed if the case were reversed or vacated on appeal). Id. at 20-21
  • Kinze moved for attorney’s fees; the Court denied the motion, because there was nothing exceptional about this case. Id. at 21.
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Posted in: Gregory M. Sleet
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On August 3, in Velcera, Inc. v. Merial Ltd., C.A. No. 11-134 (GMS) (D. Del. Aug. 3, 2011), Chief Judge Sleet dismissed one of three declaratory patent claims and its associated counterclaims based on a lack of subject matter jurisdiction. The plaintiff, Velcera, is subject to a contempt judgment and an injunction in a related action on the same patent in the U.S. District Court for the Middle District of Georgia. That judgment covered all of Velcera’s products, so, according to the Court, there was no “actual controversy between the parties. Any dispute regarding the Georgia court’s order is properly raised before that court of on appeal to the Federal Circuit.” Id. at n.4. Velcera’s other two declaratory claims were not addressed by the Georgia court, so they were unaffected by the ruling.

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Posted in: Gregory M. Sleet
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In Belden Technologies Inc. v. Superior Essex Communications LP, C.A. No. 08-63-SLR (D. Del. Aug. 12, 2011), a patent infringement case involving high performance data cables, Judge Robinson recently issued a memorandum opinion deciding several post-trial motions, including plaintiffs’ and defendants’ motions for JMOL and plaintiffs’ motion for a permanent injunction. Id. at 1. Although Judge Robinson upheld most of the jury’s verdict as supported by substantial evidence and thus denied most of the plaintiffs’ and defendants’ requested relief, each motion for JMOL was granted-in-part. Id. at 40.

First, the court found that “defendants presented an obviousness defense at trial based on the knowledge of one of skill in the art, which evidence was not vetted during discovery and to which plaintiffs objected.” Id. at 13. In doing so, “defendants violated the cardinal rule of this court’s trial practice, that is, evidence not vetted during discovery cannot be used at trial.” Id. Thus, Judge Robinson held that “the court will retry the invalidity of [this claim], at defendants’ expense and precluding their use of the knowledge of one of ordinary skill in the art to support their invalidity defense. Id. at 14.

Second, the court found that one of the asserted claims was rendered obvious as a matter of law by the combination of two prior art patents, stating that the secondary considerations of non-obviousness proffered by the plaintiffs were insufficient to preclude the court’s obviousness finding. Id. at 28. The court noted that “plaintiffs cite no testimony as to whether $3 million, a small fraction of the $140 million in sales of cables with separators, is significant to constitute a ‘commercial success’ in the patent validity context.” Id. Further, “plaintiffs failed to show a nexus between the commercial success and [the asserted claim]”; “[g]iven plaintiffs’ admitted status as a ‘market leader’ for high speed communication cables . . . , sales are easily attributed to their leadership position and successful marketing campaigns.” Id.

Finally, the court denied plaintiffs’ motion for a permanent injunction, finding that “plaintiffs have failed to demonstrate irreparable injury, as well as the inadequacy of money damages[,]” and “any hardship to plaintiffs would be outweighed by that to defendants.” Id. at 39-40.

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Posted in: Sue L. Robinson
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In Apeldyn Corp. v. AU Optronics, Inc., C.A. No. 08-568-SLR (D. Del. Aug. 2, 2011), Judge Robinson recently modified Special Master Poppiti’s order for sanctions against a party that failed to adequately prepare its Rule 30(b)(6) designees for their depositions. Id. at 3-4. Although Judge Robinson “agree[d] generally with the fact that AUO’s corporate designees were inadequately prepared,” she found that “Apeldyn’s counsel focused their efforts to create a record for the motion it ultimately presented, rather than in obtaining the substantive information noticed.” Id. at 3. Thus, the court ordered AUO “to produce one or more substitute witnesses[,]” but held that the deposition must be limited “to the ten most important [noticed] topics (as identified by Apeldyn)[,]” that the “continued deposition shall be limited to ten hours[,]” and that “Apeldyn shall be responsible for its own costs and fees in connection with the deposition[.]” Id. at 4.

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Posted in: Sue L. Robinson
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Defendant moved to amends its affirmative defenses and counterclaims to add two new theories of inequitable conduct (both concerning allegations that the applicants concealed or misrepresented the true inventorship of pending claims to the PTO) over six months after the deadline for amendment of the pleadings and after the close of fact discovery. Ashahi Glass Co., Ltd. v. Guardian Indus. Corp., C.A. No. 09-515-SLR, Memo. Op. (D. Del. Aug. 8, 2011). Defendant’s delay was “largely unexplained” and the Court found that although the delay “is not egregious, allowing defendant’s motion at this late stage would place an unwarranted burden on the court and prejudice plaintiffs in several respects, most notably, opening discovery for the purpose of allowing plaintiffs and opportunity to respond to the new claims cannot be accomplished while maintaining the current trial date.” Id. at 6. Court, therefore, denied the motion.

Of note, Judge Robinson mentioned in a footnote that the Court is currently booked for trials through 2013 and therefore rescheduling a trial in 2011 or 2012 “would be a formidable task.” Id. at 6, n.10.

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Posted in: Sue L. Robinson
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In Bristol-Myers Squibb Co. v. Mylan Pharmaceuticals Inc., Mylan brought declaratory judgment counterclaims for invalidity and non-infringement against Bristol-Myers Squibb and Merck. C.A. No. 09-651-LPS, Memo. Op. (D. Del. July 11, 2011). In response, Bristol-Myers and Merck sent a proposed covenant not to sue to Mylan for infringement of two the patents asserted by Mylan in its counterlcaims (but not originally asserted by Bristol-Myers Squibb in its complaint). Id. at 6. Mylan did not respond to the proposed covenant and a motion to dismiss by Bristol-Myers Squibb and Merck followed based on lack of subject matter jurisdiction. Id. The Court denied the motion and found that a case or controversy exists because the covenant not to sue contained conditional language that would allow Bristol-Myers Squibb to bring suit if it determines that Myaln’s Notice Letter was inaccurate. Id. at 9, 11. The Court stated, “By conditioning the covenant on BMS’ own view of the accuracy of Mylan’s representations, and by reserving to itself the right to sue Mylan for infringement of the Unasserted Patents based on Mylan’s ANDA as it presently exists, BMS has failed to provide Mylan with the certainty to which it is entitled.” Id. at 11.

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In Xerox Corp. v. Google Inc., C.A. No. 10-136-LPS (D. Del. Aug. 1, 2011), Judge Stark construed five disputed claim terms and two disputed order-of-steps requirements. The construed claim terms were:

“Selected document content”
“Classification label”
“Categorizing the selected document content using the organized classification document content for assigning selected document content a classification label”
“Query”
“To restrict a search at the information retrieval system for information concerning the set of entities to the category of information in the information retrieval system identified by the assigned classification label”

Also, Judge Stark denied the defendants’ request to compel documents withheld by the plaintiff as privileged. The plaintiff had exchanged documents with a third-party patent licensing company and later withheld these documents, asserting a common interest privilege. Id. at 12-13. While the defendants argued that the plaintiff’s relationship with the third-party patent licensing company was “purely commercial, and, therefore, outside the scope of the common interest privilege[,]” Judge Stark noted that the third-party patent licensing company’s compensation from the plaintiff was based on a contingency fee. Id. This supported a finding that the plaintiff’s relationship was “an allied, uniform, agency relationship . . . sufficiently imbued with common legal interests in that it plainly relate[d] to litigation[,]” id. at 13., leading Judge Stark to deny the defendants’ request to compel the documents.

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