Advanced Steel Recovery, LLC v. X-Body Equipment, Inc.

271 F. Supp. 3d 1172
CourtDistrict Court, E.D. California
DecidedSeptember 12, 2017
DocketNo. 2:16-cv-00148-KJM-EFB
StatusPublished

This text of 271 F. Supp. 3d 1172 (Advanced Steel Recovery, LLC v. X-Body Equipment, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advanced Steel Recovery, LLC v. X-Body Equipment, Inc., 271 F. Supp. 3d 1172 (E.D. Cal. 2017).

Opinion

ORDER

Kimberly Mueller, UNITED STATES DISTRICT JUDGE

Plaintiff Advanced Steel Recovery sues defendants X-Body Equipment, Inc. and Jewell Attachments, LLC, alleging defendants’ “Acculoader” product infringes plaintiffs patent. Defendants’ second motion to dismiss and, in the alternative, motion for summary judgment, is before the court, Mot., ECF Nos. 47, 54. Defendants also move for sanctions. See Mot.

The court submitted the matter after a hearing at .which Mark Nielsen. and C. Wook Pak appeared for plaintiff and Robert Harkins appeared for defendants. Mins., ECF No. 66. As explained below, the court DENIES defendants’ motion to. dismiss, DENIES defendants’ motion'for summary judgment, and DENIES defendants’ motion for sanctions.

I.' PROCEDURAL HISTORY AND FACTUAL ALLEGATIONS

On January 25, 2016, plaintiff filed the 'original complaint for monetary damages, alleging defendants ’ infringed plaintiffs United States Patent 9,056,731 (the ’731 Patent). Compl. ¶¶ 15-16, ECF No. 1, The product on which plaintiff bases its claims of infringement is called the “Acculoader,” which loads scrap metal and other materials into transport containers. Id. ¶ 21. Specifically, plaintiff alleges several claims in the ’731 Patent were issued by the U.S. Patent and Trademark Office before defendants made, used and sold the Accu-loader. Id. ¶¶ 16, 21, 24, 26. Plaintiff seeks a permanent injunction to prevent defen-, dants’ further violation of . the ’731 Patent. Id. ¶31. On March 22, 2016, defendants first moved to dismiss plaintiffs patent infringement claim. EGF No. 12.

A. Prior Order on Defendants’ First 'Motion to Dismiss

O'n August 9, 2016, the court granted defendants’ first motion to dismiss because the complaint did not state when defendants allegedly began to infringe the ’731 Patent or whether the ’731 Patent was entitled to a priority date before the Patent’s November 22, 2011 filing date. Prior Order at 7, ECF No. 42. A priority date is the proper patent filing date to which an inventor can “claim priority.” Finjan, Inc. v. Proofpoint, Inc., No. 13-06808, 2016 WL 1427492, at *8 (N.D. Cal. Apr. 12, 2016). As discussed further below, the “priority date” for a patent may be the filing date of that "patent, or the filing date of the patent’s “parent” application, if it has a “parent.” 35 U.S.C. § 111 (“The filing date ... shall be the date on which -a specification, with or without claims, is received in the United States Patent and Trademark Office.”); 35 U.S.C. § 100 (priority date may be actual filing date or filing date “of the earliest application for which the patent or application is entitled”); Waldemar Link v. Osteonics Corp., 32 F.3d 556, 558 (Fed. Cir. 1994) (reviewing priority date rules).

The court gave plaintiff leave-to amend and also opened discovery for the limited purpose of determining the question of the priority date. Prior Order at 8. The court subsequently approved the parties’ joint status report detailing the schedule for the filing of moving papers after limited discovery closed. ECF No. 43.

B. First Amended Complaint

On August 23, 2016, plaintiff filed its First Amended Complaint, again alleging defendants’ “Acculoader” infringed plaintiffs ’731 Patent. First Am. Compl. (FAC) ¶¶ 18, 24, ECF No. 44.

The ’731 Patent, titled “Container Packer System and Method,” was filed on November 22, 2011. FAC Ex. 1 at 2, ECF No. 44-1. The ’731 Patent is,based on a continuation-in-part (CIP) application following United .States Patent 8,061,950 (the ’950 Patent), which itself was a CIP application of United States Patent 7,744,330 (the ’330 Patent). Id. A “continuation-in-part” application is a new patent application filed by the original patent applicant, which repeats a substantial part of the earlier application, but adds to or subtracts from claims disclosed in a substantially similar earlier application. 35 U.S.C § 120; Phigenix, Inc. v. Genentech Inc., 238 F.Supp.3d 1177, 1180 (N.D. Cal. 2017). The 950 Patent was filed on June 29, 2010. Pl.’s Request for Judicial Notice (RJN) Ex. 2 at 21, ECF No. 28-1. The 330 Patent was filed on June 13, 2008. Id. Ex. 1 at 5.1

As briefly noted above, plaintiff alleges “claims 1, 4, 5, and 7 of the [’3731 [Pjatent ... are entitled to an effective filing date of June 13, 2008, which is the filing date of the application for the ’330 Patent.” FAC ¶ 22. “Effective filing date” is a synonym for priority date, which can include the filing date of a substantially similar earlier application. 35 U.S.C. § 100 (“effective filing date” includes “the earliest application for which the patent or application is entitled”). Plaintiff also alleges “disclosures in both the application for the ’330 Patent and the application for the ’950 Patent are sufficient to comply with the written description requirement with respect to all of the limitations contained in, at least claims 1, 4, 5, and 7 of the ’731 Patent.” FAC ¶ 22. As discussed further below, under the “written description” requirement, the patent specification at issue “must clearly allow persons of ordinary skill- in the art to recognize that the inventor invented what is claimed.” Ariad Pharm., Inc. v. Eli Lilly & Co., 598 F.3d 1336, 1351 (Fed. Cir. 2010) (en banc) (internal citations omitted), see 35 U.S.C. § 112 (“The specification shall contain a written description of the invention, and of the manner and process of making and using it, in such full, clear, concise,' and exact terms as to enable any person skilled in the art to which it pertains, or with which it is most nearly connected, to' make and use the same, and shall set forth the best mode contemplated by the inventor or joint inventor of carrying out the invention”). Here,’plaintiff alleges certain limitations in the earlier ’950 and ’330 Patents complied with the written description requirement applicable to the ’731 Patent because they adequately disclosed several limitations carried over into the 731 Patent. FAC ¶ 22.

The First Amended Complaint alleges defendants began to infringe the ’731 Patent by making and selling the Acculoader in or about August 2011, after the “effective filing date” of the ’731 Patent, “which is June 13, 2008.” Id. ¶25.

On September 9, 2016,- defendants filed their second motion to dismiss and in the alternative, a motion for summary judgment. Mot.

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Bluebook (online)
271 F. Supp. 3d 1172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advanced-steel-recovery-llc-v-x-body-equipment-inc-caed-2017.