A.G. Design & Associates, LLC v. Trainman Lantern Co.

630 F. Supp. 2d 1275, 2008 U.S. Dist. LEXIS 48456, 2008 WL 2519818
CourtDistrict Court, W.D. Washington
DecidedJune 20, 2008
DocketCase C07-5158RBL
StatusPublished

This text of 630 F. Supp. 2d 1275 (A.G. Design & Associates, LLC v. Trainman Lantern Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.G. Design & Associates, LLC v. Trainman Lantern Co., 630 F. Supp. 2d 1275, 2008 U.S. Dist. LEXIS 48456, 2008 WL 2519818 (W.D. Wash. 2008).

Opinion

ORDER DENYING SUMMARY JUDGMENT IN PART AND GRANTING SUMMARY JUDGMENT IN PART

RONALD B. LEIGHTON, District Judge.

This matter is before the Court on a Motion for Partial Summary Judgment by Defendants Trainman Lantern Company, Marcus Mukai, and G. Scott Mukai. [Dkt. # 120] For the reasons set forth below, the motion is DENIED in part and GRANTED in part.

I. Background

A. Parties and Procedural History

Plaintiff A.G. Design & Associates, LLC (A.G. Design or plaintiff) is a Washington limited liability corporation that sells lanterns to Burlington Northern Santa Fe (BNSF) and other railroads for use by trainmen and engineers. [Dkt. # 1] One of A.G. Design’s main products is a trainman lantern for which it is holder of U.S. Patent No. 7,118,245 B1 (the '245 patent). [Dkt. # 15—4] A.G. Design’s president and C.E.O., Allen Herrington, is listed* as the inventor of the '245 patent. [Dkt. # 1]

Defendant Trainman Lantern Company, Inc. is a Washington corporation; brothers Marcus Mukai and G. Scott Mukai are individuals and residents of Washington and Hawaii respectively (collectively T.L.C. or Defendants). [Dkt. #1, 28]. Trainman Lantern Co. markets the M2K trainman lantern (the accused device). [Dkt. # 14]

A.G. Design claims T.L.C. infringed the '245 patent by developing and manufacturing a trainman lantern “virtually identical to that being manufactured and sold by A.G. Design.” [Dkt. #133]; 35 U.S.C. §§ 271 & 281. This court has subject matter jurisdiction subject to 28 U.S.C. § 1338. A preliminary injunction was issued by Judge Burgess ordering Defendants to cease marketing the accused device. [Dkt. # 26] This injunction was vacated by the Court of Appeals for the Federal Circuit. [Dkt. # 100] T.L.C. now moves this Court to grant summary judgment in its favor on A.G. Design’s patent infringement claim.

B. Patent '245 History

Pursuant to a 2000 contract with BNSF, A.G. Design developed various prototype lanterns for railroad use. [Dkt. # 6] During this period of development for what would eventually become the '245 patented device, A.G. Design sold and advertised various lanterns. It is disputed exactly what features were contained in these various lanterns. T.L.C. claims that the devices sold had sufficient similarities to the '245 patented device and that that the patent is invalid because A.G. Design sold some of those devices more than one year before it applied for the '245 patent. [See Dkt. # 120, 135] A.G. Design contends that *1278 none of the crucial design elements were present in any of the lanterns sold prior to that date and that the first patented device was not ordered until March 31, 2003, or delivered until June 4, 2003. [See Dkt. #132]

On May 11, 2004, work on the trainman lantern led to Herrington’s filing for the '245 patent with the United States Patent and Trademark Office (PTO). In claim 1 of the original application, Herrington described his trainman’s lantern as containing “at least one secondary light source mounted external to said reflector so that light from said secondary light source is reflected by said outer reflective surface so as to project in a generally lateral direction from said lantern.” [Dkt. # 15-4] On September 26, 2005, the PTO Examiner issued an Office Action Summary rejecting the application. Id. After amendment, claims 7-12 and 18-22 were accepted. Id. On July 14, 2006, Herrington again modified his claim, adding limitations to claim 1 including “a plurality of ports in said reflector that permit light from said primary source to pass through in a lateral direction so as to augment said light source from at least one secondary source.” Id. Claims 1 and 8-22 were accepted and the '245 patent was issued August 7, 2006. Id.

C. Relationship of the Parties

Herrington and Marcus Mukai met in 2000 when A.G. Design hired Pulse Power, Mukai’s employer, to develop rechargeable batteries for its lanterns. [Dkt. # 6, 13, 14] Mukai was interested in A.G. Design and became a sales representative, though he continued working for Pulse Power. He also expressed an interest in purchasing A.G. Design. [Dkt. # 6, 13] Mukai entered into a Non-Exclusive Sales Representative Agreement with A.G. Design on April 1, 2003. [Dkt. # 6, 13] Mukai also formed TLC as an entity through which to negotiate the purchase of A.G. Design and the two parties negotiated on the subject. [Dkt. # 120] The relationship soured and the purchase deal fell through. A.G. Design sent Mukai his final check on July 30, 2004. [Dkt. #6]

TLC continued to exist and now claims that it began researching the possibility of manufacturing an all-LED sportsman’s lantern for wholesale outlets. [Dkt. # 120] T.L.C. claims it actively entered the railroad lantern business only after being encouraged to do so by the Union Pacific and Norfolk Southern Railroads in October 2006. Id. A.G. Design filed this suit on April 3, 2007. [Dkt. # 1]

Defendants seek summary judgment, arguing the '245 patent (1) is invalid due to prior art; (2) is unenforceable due to the patentee’s misconduct; and (3) is not infringed by the accused device because the device does not have “a plurality of ports.” [Dkt. # 120] Plaintiff argues there are disputed facts regarding invalidity and unenforceability. Plaintiff also argues that T.L.C.’s device does infringe the '245 patent because the patent’s “plurality of ports” limitation has “only a tangential relationship to the [accused device].” [Dkt. # 120,133]

II. Discussion

The district court views a motion for summary judgment on the issue of patent infringement with great care. Palumbo v. Dork-Joy Co., 762 F.2d 969, 974 (Fed.Cir.1985), overruled on other grounds Markman v. Westview Instruments, Inc., 52 F.3d 967, 976-79 (Fed.Cir.1995). Summary judgment is only appropriate if there is no genuine issue of material fact, when the moving party is entitled to judgment as a matter of law. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Fed.R.Civ.P. 56. If the moving party presents evidence which is sufficient to support a verdict at trial, the burden shifts to the *1279 nonmoving party to show specific facts which demonstrate a genuine issue for trial. Anderson, 477 U.S. at 250, 106 S.Ct. 2505; Fed.R.Civ.P. 56(e)(2).

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630 F. Supp. 2d 1275, 2008 U.S. Dist. LEXIS 48456, 2008 WL 2519818, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ag-design-associates-llc-v-trainman-lantern-co-wawd-2008.