Advanced Cardiovascular Systems, Inc. v. Medtronic Vascular, Inc.

579 F. Supp. 2d 554, 2008 U.S. Dist. LEXIS 75097, 2008 WL 4397476
CourtDistrict Court, D. Delaware
DecidedSeptember 26, 2008
DocketCiv. 98-80-SLR, 98-314-SLR, 98-316-SLR
StatusPublished
Cited by16 cases

This text of 579 F. Supp. 2d 554 (Advanced Cardiovascular Systems, Inc. v. Medtronic Vascular, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advanced Cardiovascular Systems, Inc. v. Medtronic Vascular, Inc., 579 F. Supp. 2d 554, 2008 U.S. Dist. LEXIS 75097, 2008 WL 4397476 (D. Del. 2008).

Opinion

MEMORANDUM OPINION

SUE L. ROBINSON, District Judge.

I. INTRODUCTION

The history of the present litigation has been well-documented in the court’s prior opinions, and is repeated here by way of summary. Throughout the course of the last ten years, the major manufacturers of stents have filed suit in this court asserting claims of infringement of their respective patents against their competitors. The present lawsuit originally was filed by the predecessor in interest to Medtronic *556 Vascular Inc. and Medtronic USA, Inc. (collectively, “Medtronic”), claiming infringement by Advanced Cardiovascular Systems, Inc. and Guidant Sales Corporation (collectively, “ACS”) of certain of its patents (“the Boneau patents”); ACS countersued for infringement of certain of its patents (“the Lau patents”). 1 Because judgment was entered in favor of ACS in connection with the Boneau patents (D.I. 546 2 ), the parties were “realigned” in order to proceed with the jury trial on the Lau patents. (D.I. 585)

In February 2005, at the conclusion of trial, the jury returned a verdict that the Lau patents were valid and infringed by Medtronic. (D.I. 629) Medtronic’s infringing products include its GFX, GFX 2, GFX 2.5, BeStent2, S540, S660, S670, S7, Driver, MicroDriver, and Racer branded stents. 3 On March 30, 2007, the court denied Medtronic’s motions for judgment as a matter of law and for a new trial. (D.I. 711) On April 24, 2007, the court ruled that the Lau patents were not unenforceable due to inequitable conduct. (D.I. 713) The court subsequently entered judgment in favor of ACS. (D.I. 715, 719) Med-tronic filed a notice of appeal to the United States Court of Appeals for the Federal Circuit on May 9, 2007. (D.I. 716) ACS subsequently moved this court for a permanent injunction. (D.I. 725) The Federal Circuit dismissed Medtronic’s appeal as premature in view of ACS’s motion for a permanent injunction. See Advanced Cardiovascular Sys., Inc. v. Medtronic Vascular, Inc., 231 Fed.Appx. 962 (Fed.Cir.2007) (unpublished).

On August 6, 2007, this court stayed plaintiffs motion for a permanent injunction insofar as it related to the “Endeavor” stent, pending arbitration on the issue of whether Medtronic had an express or implied license to sell “Endeavor” under the Lau patents. (D.I. 756) The Arbitrator answered this question in the negative on February 26, 2008. (D.I. 824, ex. A) That same day, ACS moved the court to lift its stay on proceedings relating to “Endeav- or.” (D.I. 824) The court now turns to ACS’s motions for a permanent injunction and to lift the stay relating to Medtronic’s “Endeavor” stent. (D.I. 725, 824) For the reasons that follow, the court lifts the stay and denies ACS’s motion for a permanent injunction in toto.

II. BACKGROUND

Prior to the inventions at issue in this case, coronary stents utilized in the United States generally comprised one of two types of stent: coil design and a slotted-tube design. In the 1990s, ACS developed a second generation stent combining the radial strength and longitudinal flexibility benefits of each of these prior designs into one bare-metal stent having a connected-ring design. This connected-ring design is covered by the Lau patents, and embodied in ACS’s “Multi-Link” family of stents.

The Multi-Link stent was released to market in October 1997. Prior to that time, Cordis Corporation (“Cordis”) main *557 tained the dominant (67%) share of the market with its slotted-tube design stent. (D.I. 726, ex. 6 at ACS129353) Within a few months of ACS’s product launch, Mul-ti-Link had captured 64% of the U.S. market, dropping Cordis’s share to 23%. (Id.) Medtronic released its infringing MicroS-tent II in December 1997. Between January 1998 and July 1998, Medtronic progressively chipped away at ACS’s market share. In January 1998, ACS led with 59% to Medtronic’s 18%. (Id. at ACS185912) Medtronic released its infringing GFX stent in April 1998. By July 1998, Medtronic surpassed ACS in market share (45% to 39%) to become the leading supplier of second-generational stents. (Id.)

Also at this time, however, Boston Scientific Corporation (“BSC”) entered the U.S. market. By July 1998, BSC had acquired only a 5% market share. Within two months, BSC’s market share grew to about 30%, where it remained relatively constant through January 1999. (Id.) “ACS quicHy reclaimed its leadership position in the stent market with the release of its next Multilink stent (the ‘Duet’) in November 1998, and [has] held onto that position in the bare-metal stent market ever since [that time, although] Medtronic has continued to hold a significant share[.]” (D.I. 729 at ¶ 5) In January 1999, ACS led the market with a 52% share, BSC was second with a 28% share, and Medtronic third with a 16% share. Cordis 4 held a 3% share. (D.I. 726, ex. 6 at ACS185912)

In April 2000, ACS licensed the Lau patents to Cordis as part of the parties’ settlement of a series of patent infringement lawsuits (brought by ACS) in the Northern District of California. (D.I. 728 at ¶ 2; D.I. 790, ex. F at ACS007677522, ACS00767565) Similarly, in May 2000, ACS licensed the Lau patents to BSC as part of another settlement agreement relating to suits brought by ACS in Indiana and BSC in California. (D.I. 728 at ¶ 3; D.I. 790, ex. E at ¶ 1.3) Both agreements involved cross-licenses to the parties’ intellectual property.

In 2003, a new type of stent, the drug-eluting stent (“DES”), was introduced to market in the U.S. Generally, a DES is a normal metal stent that has been coated with a drug known to interfere with the process of restenosis (reblocking of the artery). Cordis’s “Cypher” stent was the first DES to market in the U.S. in April 2003, followed closely by BSC’s “Taxus” DES in March 2004. (D.I. 726, ex. 13, 14) Both the Cypher and Taxus stents are on the market under licenses to ACS’s Lau patents secured in 2000. (D.I. 727 at 10) That is, Cypher and Taxus stents comprise a metal platform described by the Lau patents. Medtronic’s “Endeavor” stent was the third DES to market in February 2008; 5 “Endeavor” was the first DES approved by the FDA in four years. The “Endeavor” DES uses as its platform the infringing Driver stent. ACS gained FDA approval for its “Xienee” DES on July 2, 2008, and now competes in the U.S. DES market. (D.I. 842 & ex. 1, 2)

III. PERMANENT INJUNCTION STANDARD

In eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388, 126 S.Ct. 1837, 164 L.Ed.2d 641 (2006) (vacating and remanding MercExchange, L.L.C. v. eBay Inc., 401 F.3d 1323, 1339 (2005)) (hereinafter “eBay ”), the Supreme Court overruled the *558

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579 F. Supp. 2d 554, 2008 U.S. Dist. LEXIS 75097, 2008 WL 4397476, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advanced-cardiovascular-systems-inc-v-medtronic-vascular-inc-ded-2008.