A.K. Stamping Co. v. Instrument Specialties Co.

106 F. Supp. 2d 627, 56 U.S.P.Q. 2d (BNA) 1192, 2000 U.S. Dist. LEXIS 10323, 2000 WL 381760
CourtDistrict Court, D. New Jersey
DecidedJuly 19, 2000
DocketCiv.A.98-5576(JAG)
StatusPublished
Cited by36 cases

This text of 106 F. Supp. 2d 627 (A.K. Stamping Co. v. Instrument Specialties Co.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.K. Stamping Co. v. Instrument Specialties Co., 106 F. Supp. 2d 627, 56 U.S.P.Q. 2d (BNA) 1192, 2000 U.S. Dist. LEXIS 10323, 2000 WL 381760 (D.N.J. 2000).

Opinion

OPINION

GREENAWAY, District Judge.

This matter comes before the Court on plaintiff A.K. Stamping Co., Inc.’s (“AKS”) motion seeking a preliminary injunction, and the cross-motion of defendant Instrument Specialties Co., Inc. (“ISC”) seeking *632 summary judgment. AKS argues that ISC is infringing upon one of its patents and a preliminary injunction is necessary to halt that alleged infringement. ISC, in contrast, argues that AKS’s patent is invalid and, in any event, it has not been infringed. For the reasons discussed below, ISC’s motion for summary judgment is granted in part and denied in part and AKS’s motion for a preliminary injunction is granted.

BACKGROUND

In a Verified Amended Complaint, dated January 13, 1999, AKS alleged various breaches of federal patent law and state law by ISC. 1 AKS is a New Jersey corporation that designs and manufactures, among other things, tools and components for use in the computer, electronics, telecommunications, and medical industries. ISC is a Delaware corporation that likewise designs and manufactures products for the computer industry.

The subject matter at issue is AKS’s “Card Cage Shielding Contactor” (the “Shield”), a metal implement used to reduce the distortion and disruption to personal computers caused by unwanted electromagnetic (“EMI”) and radio frequency (“RFI”) emissions. See Diagram A, Fig. 2 (depicting Shield and computer chassis). 2 A computer’s chassis contains a “card cage portion” with openings to receive new circuit cards. 3 A circuit card is installed by placing it within the chassis opening and securing the attached mounting bracket to the chassis. Though necessary to permit the installation of supplemental circuit cards, these openings increase the machine’s susceptibility to unwanted emissions. With advancements in computer technology — particularly increases in computer speed — harmful emissions have increased as well.

The Shield was designed to minimize those negative effects, while continuing to permit easy installation of circuit cards. Previous card cage shields had proven problematic because they were insufficiently flexible and often snagged on the mounting bracket during installation and removal. In response to discussions with customers in the computer industry concerning their needs for improved shielding, AKS employees began developing the Shield.

During October 1995, AKS employee Leonard G. Meier met on several occasions with representatives of Sequent Computer (“Sequent”) concerning Sequent’s interest in a new “EMI gasket” that would better address the problems associated with emissions from card cage openings. 4 At a *633 meeting on October 19, 1995, Meier proposed and sketched a part to meet Sequent’s needs (the “October sketch”) (attached here as Diagram B). The October sketch depicted a form of shield with longitudinal bands and tabs at the bottom of the Shield. “Fingers” with nearly squared-off corner breaks are struck from the bands, remaining attached to the Shield only at the base of each finger, and running longitudinally along each band and latitudinally across the bottom.

Over the course of 1995, Meier also met with representatives of Apple Computer (“Apple”) to discuss Apple’s card cage shielding needs. Specifically, Apple sought a highly compressible card cage shield that would minimize the potential for snagging during insertion and removal of card cage mounting brackets.

Following Meier’s discussions with AKS’s customers, he and James H. Bos-trom of AKS discussed the design problems and concluded that altering the orientation and shape of the contact fingers would eliminate certain snagging difficulties and enhance protection from emissions. Together with Mark Andrews, Meier and Bostrom refined the idea. On November 28, 1995, Andrews completed a technical computer drawing of the product that had been discussed with Apple (the “November drawing”) (attached here as Diagram C).

In January 1996, AKS completed the invention and began marketing the Shield to IBM and certain other customers. AKS continued to develop proper tooling to manufacture the Shield, and in April 1997, AKS commenced broad marketing of the Shield. On December 3, 1996, AKS filed an application for a patent on the Shield with the United States Patent and Trademark Office (the “PTO”).

The alleged infringing item is ISC’s Backplane Shielding, ISC product number 9510 (the “Backplane”), designed to be placed between the computer chassis and the circuit card openings to protect against EMI/RFI emissions. AKS contends that it bears all of the novel features of the Shield and infringes claims 1-4 of the ’632 patent.

Prior to development of the Shield, ISC had been involved in the computer tooling business and had marketed two computer shielding products designed to reduce harmful emissions. Neither of those earlier products bore the traits of the Backplane of which AKS complains. In October 1996, in response to a customer request, ISC began developing the Backplane. Production and sales of the Backplane commenced in March 1997. AKS learned that ISC was marketing the Backplane at some point during the Summer of 1998. In August 1998, counsel for AKS notified ISC’s president that the Backplane fell within certain of the claims of the pending patent, and that AKS would consider the sale and marketing of the Backplane to be infringing once the patent issued. 5

On January 5, 1999, the PTO issued patent number 5,856,632 on the Shield (the “ ’632 patent”) to AKS. Within days, AKS filed the amended complaint, and now has filed a motion seeking a preliminary injunction enjoining ISC from infringing the ’632 patent. In addition to opposing that motion, ISC has filed a cross-motion for summary judgment.

DISCUSSION

I. ISC’s Motion For Summary Judgment

ISC argues that it is entitled to summary judgment on AKS’s patent infringement claims because the ’632 patent is invalid, unenforceable and, in any event, is not infringed by the Backplane. ISC also *634 contends that it is entitled to summary judgment on AKS’s unfair competition and tortious interference claims. Procedurally, this Court shall address ISC’s summary judgment arguments before resolving AKS’s motion seeking a preliminary injunction.

Summary judgment is appropriate under Fed.R.Civ.P. 56(c) when the moving party demonstrates that there is no genuine issue of material fact and the evidence establishes the moving party’s entitlement to judgment as a matter of law. See Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Orson, Inc. v. Miramax Film Corp., 79 F.3d 1358, 1366 (3d Cir.1996).

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106 F. Supp. 2d 627, 56 U.S.P.Q. 2d (BNA) 1192, 2000 U.S. Dist. LEXIS 10323, 2000 WL 381760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ak-stamping-co-v-instrument-specialties-co-njd-2000.