Allen v. Howmedica Leibinger, Inc.

197 F. Supp. 2d 101, 2002 U.S. Dist. LEXIS 6466, 2002 WL 531472
CourtDistrict Court, D. Delaware
DecidedMarch 28, 2002
DocketCIV.A.98-613-JJF
StatusPublished
Cited by2 cases

This text of 197 F. Supp. 2d 101 (Allen v. Howmedica Leibinger, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen v. Howmedica Leibinger, Inc., 197 F. Supp. 2d 101, 2002 U.S. Dist. LEXIS 6466, 2002 WL 531472 (D. Del. 2002).

Opinion

MEMORANDUM OPINION

FARNAN, District Judge.

Presently before the Court is a Motion For Summary Judgment filed by Defendants Howmedica Leibinger, Inc., Howmedica, Inc., and Pfizer, Inc. (collectively “Defendants”) (D.I.221), and a Motion For Partial Summary Judgment filed by Plaintiff George S. Allen, M.D., Ph.D. (hereinafter “Plaintiff’) (D.I.233). For the reasons set forth below Defendants’ Motion will be granted and Plaintiffs Motion will be denied.

BACKGROUND

I. Factual Background

A. The Parties And The Technology At Issue

Plaintiff is a professor of neurological surgery at the Vanderbilt University Medical Center. (D.I. 240 at 3). Plaintiff, along with a team of doctors and engineers, developed a new medical imaging technique referred to as the ACUSTAR® Technology, which enables doctors to locate tumors in the brain with a new level of accuracy and reliability through the use of implantable fiducial markers. (D.I. 234 at 4).

The early development of the ACUS-TAR® technology was funded by Codman & Shurtleff, a subsidiary of Johnson & Johnson. (D.I. 234 at 5). Due to an alleged change of business focus, Johnson & Johnson abandoned the project and trans *104 ferred all ACUSTAR® assets to Plaintiff in January 1996. (D.I. 234 at 5).

After Plaintiff acquired the ACUS-TAR® assets, Plaintiff attempted to commercialize the technology. (D.I. 284 at 5). Negotiations between Plaintiff and Picker International, Inc. (hereinafter “Picker”) (now known as Marconi), led to a license agreement in September 1997, under which Picker would pay Plaintiff a royalty in the event that Picker commercialized the ACUSTAR® technology. (D.I.235, Ex. 14). Picker was a company that marketed and sold medical systems, including medical imaging systems, and had been involved with Plaintiff and the ACUS-TAR® technology in the early 1990’s. (D.I. 234 at 5).

Defendant Howmedica Leibinger, Inc. (hereinafter “HLI”) is a Delaware corporation that distributes medical devices in the United States that are manufactured in Germany by Howmedica Leibinger GmbH (hereinafter “HLG”). 1 (D.I. 240 at 3). Since 1996, HLI has offered for sale an implantable fiducial marker under the trade name OST-REG™, which is allegedly similar to the ACUSTAR® technology. (D.I. 240 at 3).

In January 1996, HLI and HLG were acquired by Defendant Pfizer, Inc. (hereinafter “Pfizer”). Defendant Howmedica, Inc. (hereinafter “HI”), now known as MTG Divestitures, Inc., is a subsidiary of Pfizer. (D.I. 240 at 4). In December 1998, Stryker Corporation (hereinafter “Stryker”) acquired HLI, HLG, and substantially all of the assets of HI from Pfizer. (D.I. 240 at 4).

B. The 457’ Patent And The German Counterpart

The relevant patent in the instant case is Defendants’ U.S. Patent No. 5,394,457 (hereinafter “the ’457 Patent”) relating to the OST-REG™ implantable fiducial marker, which was filed with the United States Patent and Trademark Office (hereinafter “USPTO”) on October 7, 1993 by counsel at Jones, Day, Reavis & Pogue (hereinafter “Jones Day”). (D.I. 240 at 4-5). The relevant claims of the ’457 Patent are allegedly “a word-for-word duplicate” of HLG’s German Patent which was published in the German Patent Office on April 21, 1994 (German Patent No. 4233978). (D.I. 240 at 4).

A few months after the German Patent was published, Electa (a German company) initiated Opposition proceedings against the German Patent before the German Patent Office alleging that the German Patent was not patentable because of certain prior art, specifically the Rousseau II reference (hereinafter “Rousseau II”). (D.I. 240 at 5). In August 1994, Axel von Hellfeld, an attorney with the German law firm of Wuestoff & Wuestoff who was handling the German Patent, received notice of the opposition filed by Electa (hereinafter “the German opposition”). (D.I. 240 at 5). Mr. von Hellfeld brought the German opposition to the attention of Dr. Robert Boesecke, a scientist employed by HLG. (D.I. 240 at 5). The German opposition proceeded, and the German Patent was revoked by the German Patent Office on January 22, 1996. (D.I. 240 at 5). HLG appealed the decision, and the German Federal Patent Court rejected the appeal. (D.I. 240 at 6).

In the meantime, the ’457 Patent issued on February 28, 1995. (D.I. 240 at 5). At the time the ’457 Patent issued, neither Jones Day nor the USPTO were aware of the German opposition. (D.I. 240 at 5).

*105 C. The Interference Proceeding

In October 1995, Plaintiff filed an amendment to his then pending patent application for the ACUSTAR® technology. (D.I. 240 at 6). Because Plaintiff presented Claim 22 from Defendants’ ’457 Patent in the amendment, Plaintiff requested an interference proceeding with the 457’ Patent to determine priority of invention. (D.I. 240 at 6). On June 28, 1996, the USPTO declared an interference between the ’457 Patent and Plaintiffs pending patent application. 2

Early in the interference proceeding, Defendants filed a preliminary motion to redefine the interfering subject matter by designating claims 2-21 as separately patentable and not corresponding to the single broad count. 3 Plaintiff did not oppose this motion and, in February 1997, the USPTO deferred ruling on the motion until final hearing.

In May 1997, Plaintiff was informed of the opposition and revocation of HLG’s German Patent by Picker. On June 4, 1997, Plaintiff allegedly confronted Defendants with the German opposition and revocation based on the Rousseau II prior art. On July 1, 1997, Plaintiff filed a preliminary motion requesting that the administrative patent judge take notice of the Rousseau II reference. Defendants filed a motion to strike Plaintiffs request as untimely because plaintiff had not complied with the proper procedure for filing preliminary motions. On July 22, 1997, the USPTO advised both parties that Plaintiffs request and Defendants’ motion would be deferred until final hearing.

In November 1997, Defendants discovered that the Rousseau II reference was actually the third in a series of related publications, which includes Clarysse and Rousseau I. (D.I. 240 at 7, 11). Defendants specifically offered to withdraw their objection to the consideration of Rousseau II so long as the USPTO would consider the entire series of references. (D.I.240, Ex. 14). In their briefing for final hearing, Defendants argued that the series of prior art references rendered Plaintiffs claims unpatentable, and also conceded that “for consistency Leibinger’s ’457 patent claims 1 and 22 would also be invalid.” (D.I. 240 at 7, D.I. 240, Ex. 10).

On December 5, 2000, the USPTO issued its final decision. Despite the fact that neither Plaintiffs request to take notice of Rousseau II nor Defendants’ request to consider Rousseau I and Clarysse were timely raised during the preliminary motions period, the USPTO exercised its discretion to consider the issue of claim patentability over the prior art raised by these references. (D.I. 235, Ex. 1 at 5-6, n. 4).

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197 F. Supp. 2d 101, 2002 U.S. Dist. LEXIS 6466, 2002 WL 531472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-howmedica-leibinger-inc-ded-2002.