Alfred E. Mann Foundation for Scientific Research v. Cochlear Corp.

96 F. Supp. 3d 1028, 2015 U.S. Dist. LEXIS 42277, 2015 WL 1470883
CourtDistrict Court, C.D. California
DecidedMarch 31, 2015
DocketCase No. CV 07-8108 FMO (SHx)
StatusPublished

This text of 96 F. Supp. 3d 1028 (Alfred E. Mann Foundation for Scientific Research v. Cochlear Corp.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alfred E. Mann Foundation for Scientific Research v. Cochlear Corp., 96 F. Supp. 3d 1028, 2015 U.S. Dist. LEXIS 42277, 2015 WL 1470883 (C.D. Cal. 2015).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

FERNANDO M. OLGUIN, District Judge.

INTRODUCTION

Plaintiff Alfred E. Mann Foundation for Scientific Research (“AMF” or “plaintiff’) brings this action, alleging that defendants Cochlear Corporation and Cochlear Ltd. (collectively, “Cochlear” or “defendants”) infringed two patents directed to cochlear implant technology. (See First Amended Complaint for Patent Infringement (“FAC”) at ¶¶ 17 & 21-23; Reply and Counterclaims-in-Reply to Cochlear Americas and Cochlear Limited’s Counterclaims (“PL’s Supp. Claims”) at 1314) (Document Nos. 164 & 171). AMF alleges that Cochlear infringed U.S. Patent No. 5,938,-691, entitled “Multichannel Implantable Cochlear Stimulator” (“the '691 patent”), and U.S. Patent No. 5,609,616, entitled “Physician’s Testing System and Method for Testing Implantable Cochlear Stimulator” (“the '616 patent”) (collectively, “the patents-in-suit”). (See FAC at ¶¶ 21-23; Pl.’s Supp. Claims at 13-14).

The '691 patent is generally directed to a cochlea stimulation system comprising of: (1) an audio signal, receiving device, i.e., a microphone; (2) a wearable processor (“WP”) that receives and processes audio signals; and (3) an implanted cochlea stimulator (“ICS”) that receives data representing the audio signals and stimulates electrodes. (See '691 patent at Abstract, col. 3:9-39 & 34:51-35:6). By stimulating the electrodes located within the cochlea, the implant can also stimulate locations of the auditory nerve, so that the hearing impaired person’s brain can perceive sound. (See id. at col. 1:24-27; Reporter’s Transcript (“RT”), Jan. 14, 2014, vol. 2, at 79:13-15 & 85:18-25). The '616 patent is generally directed to a system and a method for testing such a system. (See '616 patent at Abstract, col. 34:23-61 & 35:43-36:7).

The court, with the consent of the parties, appointed a Special Master for claim construction. (See Order re: Joint Status Report Regarding Appointment of Special Master at 1) (Document No. 179). The [1033]*1033Special Master conducted a claim construction hearing, and issued a Report and Recommendation. (See Special Master’s Report and Recommendation on Claim Construction (“R & R”) at 5) (Document No. 200). After considering the parties’ objections to the R & R, the court issued its Claim Construction Order on June 18, 2012.1 (See Order re: Parties’ Objections to the Special Master’s Report on Claim Construction (“Claim Construction Order”)) (Document No. 212). Advanced Bionics, LLC (“Advanced Bionics”), the exclusive licensee of the asserted patents, (see PL’s Supp. Claims at 13), was joined as an involuntary plaintiff on January 13, 2014. (See Final Pretrial Conference Order (“PTO”) at 1) (Document No. 399).

The court conducted a jury trial, in which the jury found that Cochlear infringed claims 1 and 10 of the '616 patent, and claims 6 and 7 of the '691 patent. (See Verdict Form at 1-4 & 5-8) (Document No. 460). The jury also found willful infringement of both asserted patents. (See id. at 4 & 8). In addition, the jury found that the asserted claims are not invalid based on Cochlear’s obviousness and anticipation defenses. (See id. at 4-5 & 8-9). The jury awarded $131,216,325 damages, based on royalty rate of 7.5 percent. (See id. at 10). Finally, the jury provided an advisory verdict in favor of AMF on inequitable conduct. (See id. at 9-10).

In addition, the court conducted a bench trial regarding the following: (1) equitable estoppel, (2) laches, (3) inequitable conduct, (4) prosecution history estoppel, and (5) indefiniteness.2 (See PTO at 28; RT, Jan. 22, 2014, vol. 2).

The court, having heard live testimony and duly considered the evidence presented during both trials, the credibility of the witnesses, the parties’ briefing, and the contentions and arguments of counsel, hereby makes the following findings of fact and conclusions of law in accordance with Rule 52(a) of the Federal Rules of Civil Procedure.

FINDINGS OF FACT

I. BACKGROUND.

1. Alfred E. Mann Foundation for Scientific Research is a nonprofit medical research foundation incorporated under California law. AMF’s principal place of business is in Los Angeles County. (See PTO, App. A, at No. 1). AMF conducts medical research, and it has developed advanced medical devices for commercialization. (See RT, Jan. 14, 2014, vol. 2, at 51:15-19 & 52:14-53:18; Declaration of Dr. Joseph Schulman, Ph.D., Re Issues Tried to the Court (“Schulman Deck”) (Document No. 406) at ¶¶ 4-6). For instance, from about 2001 to 2004, AMF devoted substantial resources to its Battery Bion project, a wireless, implantable microstimulator intended for use in stroke patients. (See Schulman Decl. at ¶¶ 11-15). From 2004 to 2008, AMF conducted a human clinical trial with the University of Southampton, in order to reanimate paralyzed arms of post-stroke patients. (See Declaration of David Lee Hankin [1034]*1034Submitted in Support of Plaintiff Re Issues Tried to the Court (“Hankin Decl.”) at ¶ 13) (Document No. 403). In 2006-2009, AMF also worked on a trial involving the reanimation of paralyzed legs of post-spinal cord injury patients. (See id. at ¶ 21).

2. Defendant Cochlear Ltd. is a for-profit Australian company headquartered in Sydney, Australia. Defendant Cochlear Corporation is a for-profit corporation incorporated under Delaware law with its principal place of business in Colorado. (See PTO, App. A, at Nos. 2 & 3).

3. U.S. Patent No. 5,609,616, entitled, “Physician’s Testing System and Method for Testing Implantable Cochlear Stimulator,” was issued on March 11,1997. U.S. Patent Application No. 447,157 was filed on May 25, 1995, and issued as the '616 patent. The U.S. Patent and Trademark Office (“USPTO”) issued the '616 patent as a continuation of Ser. No. 23,584, filed on February 26,1993; which is a continuation of Ser. No. 752,069, filed on August 29, 1991; which is a continuation-in-part of Ser. No. 411,563, filed on September 22, 1989. The '616 patent lists Joseph H. Schulman, John C. Gord, Primoz Strojnik, and David I. Whitmoyer as inventors, and AMF as the original assignee. (See PTO, App. A, at No. 9; '616 patent). The '616 patent expired on March 11, 2014. (See PTO, App. A, at 46).

4. U.S. Patent No. 5,938,691, entitled, “Multichannel Implantable Cochlear Stimulator,” issued on August 17, 1999. U.S. Patent Application No. 09/103,264 was filed on June 23, 1998, and issued as the '691 patent. The USPTO issued the '691 patent as a division of Application No. 08/450,-041, filed on May 25, 1995; which is a continuation of Application No. 08/322,065, filed on October 12, 1994; which is a continuation-in-part of Application No. 08/23,-584, filed on February 26, 1993; which is a continuation of Application Ser. No. 07/752,069, filed on August 29,1991; which is a continuation-in-part of Application Ser. No. 07/411,563, filed on September 22, 1989. The '691 patent lists Joseph H. Schulman, John C. Gord, Primoz Strojnik, David I. Whitmoyer, and James H. Wolfe as inventors, and AMF as the original assignee. (See PTO, App. A, at No.

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96 F. Supp. 3d 1028, 2015 U.S. Dist. LEXIS 42277, 2015 WL 1470883, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alfred-e-mann-foundation-for-scientific-research-v-cochlear-corp-cacd-2015.