Altech Controls Corp. v. E.I.L. Instruments, Inc.

71 F. Supp. 2d 661, 1999 U.S. Dist. LEXIS 20587, 1999 WL 959167
District Court, S.D. Texas·Decided September 9, 1999·No. Civ.A. H-92-3189·Published·Cited by 1 cases

Opinion

ORDER

HARMON, District Judge.

Pending before the Court in the above referenced action, alleging patent infringement of three patents, 1 pursuant to Fed. R.Civ.P. 50, is, inter alia, Defendant E.I.L. Instruments, Ine.’s (“E.I.L.’s” or “Defendant’s,”) motion for judgment as a matter of law that ’776 patent Claim 24 is invalid for having been offered for sale more than one year prior to the filing date of the ’776 application (# 448).

Prior Dispositive Rulings

There have been numerous dispositive rulings in the course of the litigation. On June 5, 1997, after a Markman hearing, this Court construed the scope of the patent claims and entered findings of fact and conclusions of law and granted summary *663 judgment in favor of E.I.L. on literal infringement (# 324). 2 On December 3, 1997 the Court granted summary judgment also in favor of E.I.L. in concluding that the prosecution history estops Plaintiffs’ claims of infringement of the asserted claims of the ’776 patent by E.I.L.’s RC-1000 and RC-2000 under the doctrine of equivalency (# 354). The remaining portion of this case, dealing with infringement under the doctrine of equivalents, the validity of the ’700 and ’776 patents, and literal infringement of the ’700 patent by E.I.L.’s RC-48, was tried to a jury from December 9-22, 1997. The jury found in favor of Plaintiffs Altech Controls Corporation (“Altech”) and Richard H. Alsenz (“Alsenz”) on all issues (#408). 3 Subsequently, in response to Plaintiffs’ motion for judgment as a matter of law that Defendant is not entitled to a defense of laches relating to the ’776, ’700, and ’326 patents and motion for judgment as a matter of law that Defendant is not entitled to a defense of equitable estoppel relating to the ’776 and ’700 patents, the Court issued findings of fact and conclusions of law in favor of E.I.L. and its entitlement to prevail on both defenses of laches and equitable estoppel and denied both of Plaintiffs’ motions for judgment as a matter of law (# 444). In light of this background, the Court addresses the standard of review for the pending motion.

Standard of Review

Under Federal Rule of Civil Procedure 50(a)(1), a district court may grant a judgment as a matter of law (“JMOL”), formerly known as a directed verdict, if after a party has been fully heard by the jury on an issue, “there is no legally sufficient evidentiary basis for a reasonable jury to have found for that party with respect to that issue.” See Thomson, S.A. v. Quixote Corp., 166 F.3d 1172, 1174 (Fed.Cir.1999); Conkling v. Turner, 18 F.3d 1285, 1300 (5th Cir.1994). Upon a motion for JMOL, a district court must review a jury’s resolution of factual issues to determine whether there is substantial evidence to support them. Markman v. Westview Instruments, Inc., 52 F.3d 967, 975-76 (Fed.Cir.1995) ( en banc), aff'd, 517 U.S. 370, 116 S.Ct. 1384, 134 L.Ed.2d 577 (1996). Only if the movant shows that when the correct legal standard is applied, there is not substantial evidence to support the finding in favor of the nonmovant, should the jury’s *664 factual findings be overruled. Id. “Substantial evidence is ‘such relevant evidence from the record taken as a whole as might be accepted by a reasonable mind as adequate to support the finding under review.’ ” Texas Instruments, Inc. v. Cypress Semiconductor Corp., 90 F.3d 1558, 1563 (Fed.Cir.1996) (quoting Perkin-Elmer Corp. v. Computervision Corp., 732 F.2d 888, 893 (Fed.Cir.), cert. denied, 469 U.S. 857, 105 S.Ct. 187, 83 L.Ed.2d 120 (1984)), cert. denied, 520 U.S. 1228, 117 S.Ct. 1818, 137 L.Ed.2d 1027 (1997). In reviewing factual issues for substantial evidence, the court must inquire whether a reasonable jury, in light of the record before it viewed as a whole, could have arrived at the decision reached by the actual jury. Dawn Equipment v. Kentucky Farms, Inc., 140 F.3d 1009 (Fed.Cir.1998). The court must review the evidence in a light most favorable to the nonmovant and make all reasonable inferences in support of the verdict for Plaintiffs. Allied Colloids, Inc. v. American Cyanamid Co., 64 F.3d 1570, 1573 (Fed.Cir.1995). It must not weigh the evidence or consider the credibility of the witnesses, which are within the province of the jury. Id.

On Sale Bar Under 35 U.S.C. § 102(b)

A patent is presumed valid and the party challenging its validity must overcome the presumption by proving by clear and convincing evidence that a patent is invalid. 35 U.S.C. § 282; Texas Instruments, Inc. v. U.S. Int’l Trade Comm’n, 988 F.2d 1165, 1177 (Fed.Cir.1993), dism’d, 1994 WL 745517 (Fed.Cir.1994). Under the relevant portion of 35 U.S.C. § 102(b), “A person shall be entitled to a patent unless ... the invention was ... on sale in this country, more than one year prior to the date of the application for patent in the United States____” The date one year pri- or to the patent application date is known as the “critical date.” A sale or offer of sale prior to the critical date triggers the on-sale bar. Under Section 102(b), an inventor is not entitled to a patent on an invention that has been on sale more that one year before the inventor filed his patent application. 4 There is no dispute that the critical date for the ’776 patent was July 31, 1978, since the application was filed on July 31, 1979, and therefore a sale or offer for sale of the claimed invention, a pressure controller used to control compressors in refrigeration systems, prior to that date may give rise to an on-sale bar and render claim 24 invalid.

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Altech Controls Corp. v. E.I.L. Instruments, Inc., 71 F. Supp. 2d 661, 1999 U.S. Dist. LEXIS 20587, 1999 WL 959167 (S.D. Tex. 1999).

71 F. Supp. 2d 661 (Altech Controls Corp. v. E.I.L. Instruments, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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