Aero Industries, Inc. v. John Donovan Enterprises-Florida, Inc.

80 F. Supp. 2d 963, 53 U.S.P.Q. 2d (BNA) 1547, 1999 U.S. Dist. LEXIS 21214, 1999 WL 1327912
CourtDistrict Court, S.D. Indiana
DecidedNovember 22, 1999
DocketIP 99-0671 C-M/S
StatusPublished
Cited by2 cases

This text of 80 F. Supp. 2d 963 (Aero Industries, Inc. v. John Donovan Enterprises-Florida, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aero Industries, Inc. v. John Donovan Enterprises-Florida, Inc., 80 F. Supp. 2d 963, 53 U.S.P.Q. 2d (BNA) 1547, 1999 U.S. Dist. LEXIS 21214, 1999 WL 1327912 (S.D. Ind. 1999).

Opinion

ORDER ON MOTION FOR PRELIMINARY INJUNCTION

McKINNEY, District Judge.

This matter is before the Court on the verified motion filed by defendanf/counter-claim plaintiff John Donovan Enterprises-Florida, Inc. (“Donovan”), on August 31, 1999, seeking preliminary injunctive relief against Aero Industries, Inc. (“Aero”) under Fed.R.Civ.P. 65. It is based on 35 U.S.C. § 283, which authorizes courts to grant injunctive relief “to prevent the violation of any right secured by patent, on such terms as the court deems reasonable.” 35 U.S.C. § 283. This Court held a hearing on October 19 and 20,1999, during which the parties offered both live and deposition testimony, introduced their physical and documentary evidence, and presented arguments with respect to the issues raised by the pending motion. Having thoroughly reviewed the evidence and considered the arguments, the Court has decided to GRANT the motion for a preliminary injunction against Aero, as further explained below.

I. FACTUAL AND PROCEDURAL BACKGROUND 1

The parties in this patent infringement dispute are direct competitors in a tight market in which changes in technology occur frequently. Aero, an Indianapolis-based company engaged in the manufacture and sale of products for the trucking industry, makes and sells air return bulkheads. Donovan, a Florida-based company, does the same. An air return bulkhead is used in refrigerated truck trailers to facilitate the circulation of air from the trailer into a refrigeration unit mounted on the front wall of the trailer. Hrg. Tr. at 182, Henning Cross-Exam.; Def's Ex. 4, Declaration of Greg Onken (“Onken *966 Decl.”), ¶ 1. It does this primarily by creating a vertical space between the front wall of the trailer and the bulkhead face, against which cargo can be loaded. Id. Refrigeration units are usually positioned near the top of the front wall, with an outlet for the cooled air at the top of the unit and the intake for return air at the bottom. Such bulkheads also protect both the refrigeration unit and the front wall of the trailer from damage caused by forklifts or by shifting cargo loads. Aero’s Proposed Findings of Fact and Conclusions of Law (“Aero’s Find.”) ¶ 4; Def. Donovan’s Post-Hrg. Proposed Findings of Fact and Conclusions of Law (“Donovan’s Find.”) ¶ 24.

The patent in dispute, issued to Greg Onken on September 15, 1998, is for a one-piece “Air Return Bulkhead,” that can be cut to fit around differently-sized refrigeration units. Def.’s Ex. 1, United States Patent 5,807,046 (the “’046 Patent” or “Onken Patent”); Onken Decl. ¶ 2. The invention claimed in the Onken Patent is directed at solving several problems identified in the prior art. First, it is intended to eliminate the problem of “short cycling” that occurs with the open lattice-work style of bulkheads. Short cycling is when cooled air from the refrigeration unit output is pulled down through the bulkhead to the refrigerator’s intake opening, and the thermostat gets a false temperature reading causing the refrigerator to shut down prematurely. ’046 Patent, Col. 3, ll. 62-67, Col. 4, l. 1. Although the prior art false-wall type of bulkheads reduced the incidence of short cycling, they did not allow air to flow against and cool the adjacent cargo, which caused an inefficient distribution of the cooled air. Id., Col. 4, ll. 1-6. The claimed invention comprises a false wall that allows air to flow against cargo resting adjacent to it without causing short cycling. Id., Col. 7, ll. 52-54.

Another disadvantage of the prior art bulkheads was the amount of time needed to install or replace them, leading to economic losses while the trailer was unavailable for use. Id., Col. 4, ll. 10-13. The claimed invention is a lightweight, one-piece plastic bulkhead that can be installed quickly and easily, alleviating this problem. Id., Col. 7, ll. 50-52; Hrg. Tr. at 36. Other problems with the prior art bulkheads included their awkward size and the necessity of stocking different sizes to fit various trailers and refrigeration units, which made it difficult or expensive to ship, store or display them. Id., Col. 4, ll. 22-47. In addition, they would bend, crack or splinter during use, causing sharp edges that could catch on or damage cargo, and were susceptible to clogging when loose shipping materials caught in the air inlets. Id., Col. 4, ll. 48-62. Finally, the prior art bulkheads were easily damaged by shifting cargo loads or forklift collisions, and were heavy, expensive to manufacture, constructed of materials that did not meet the U.S. Department of Agriculture (“USDA”) standards for contact with foodstuffs, and would rust, mildew or rot. Id., Col. 4, ll. 63-67, Col. 5, ll. 1-9.

In contrast, the Onken Patent claimed an air return bulkhead constructed of a lightweight plastic material that resists rust, mildew and rot, withstands collisions with forklifts, and supports the weight of the cargo adjacent to it. Id., Col. 7, ll. 55-62, Col. 8, ll. 1-10. Moreover, it is designed to decrease manufacturing costs because “a single bulkhead is capable of fitting any size of trailer and refrigerator.” Id., Col. 7, ll. 45-47. It can be installed in less than fifteen minutes, is lightweight and can be stacked in “interfitting relation for easy storage and display.” Id., Col. 7, ll. 50-65. Finally, the Onken invention can be made of high molecular weight polyethylene, or similar materials that can be approved by the USDA for contact with foodstuffs. ’046 Patent, Col. 8, ll. 4-9.

Onken first introduced a one-piece air return bulkhead in 1995, calling it the AirHead Flex System and selling it through his recently incorporated distribution company, Air Flo Products, Inc. Onken Decl. ¶¶ 16, 22. He advertised the AirHead in the November 1995 buyer’s edition of a trade magazine called Refrigerated Trans *967 porter. Id. ¶ 22; Def's Ex. 13. At about the same time, Aero introduced an improved solid-style bulkhead, the AerGuard, which was a partially preassembled bulkhead using heavy-duty extruded aluminum Z-posts covered by fiberglass reinforced plywood panels. Hrg. Tr. at 31-32. The AerGuard was advertised in the same issue of Refrigerated Transporter. Def's Ex. 13. Although partially pre-assembled, the AerGuard bulkheads contained multiple pieces to be installed, and customers found them to be heavy, bulky, and difficult to store and display. Def's Ex. 9, Deck of John Dietrick (“Dietrick Decl.”), ¶ 8.

In March of 1996, Onken exhibited his new one-piece plastic bulkhead at the Mid-America trucking show in Louisville, Kentucky. Onken Deck ¶ 22.

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80 F. Supp. 2d 963, 53 U.S.P.Q. 2d (BNA) 1547, 1999 U.S. Dist. LEXIS 21214, 1999 WL 1327912, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aero-industries-inc-v-john-donovan-enterprises-florida-inc-insd-1999.