American Bank Note Holographics, Inc. v. Upper Deck Co.

934 F. Supp. 630, 1996 U.S. Dist. LEXIS 11801, 1996 WL 465747
CourtDistrict Court, S.D. New York
DecidedAugust 8, 1996
Docket92 Civ. 9146 (JGK)
StatusPublished
Cited by1 cases

This text of 934 F. Supp. 630 (American Bank Note Holographics, Inc. v. Upper Deck Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Bank Note Holographics, Inc. v. Upper Deck Co., 934 F. Supp. 630, 1996 U.S. Dist. LEXIS 11801, 1996 WL 465747 (S.D.N.Y. 1996).

Opinion

OPINION AND ORDER

KOELTL, District Judge: 1

This is a patent infringement action brought by American Bank Note Holographies, Inc., (“ABN”), against The Upper Deck Co., (“Upper Deck”) based on two patents relating to certain hologram embossing techniques. ABN is the assignee for both patents, No. 4,728,377 (the “’377 Patent”), and ■No. 4,913,504 (the “’504 Patent”). In its First Amended Complaint, ABN only asserts claims under the ’377 patent. Upper Deck asserts a counterclaim for a declaratory judgment on the issue of invalidity of both the ’377 and ’504 patents. Upper Deck now moves for summary judgment on two grounds. First, Upper Deck argues that the patents are invalid under 35 U.S.C. § 112 because of the alleged failure by the inventor, Terence J. Gallagher, to disclose the best mode of carrying out the invention in the patent specification. Second, Upper Deck argues that the patents are invalid under § 112 for lack of enabling disclosure, specifically that the patent specifications differ from the patent claims in their disclosure of the layer structure of the embossing material. ABN resists the motion on both grounds and argues that it is entitled to partial summary judgment on the issues raised by Upper Deck. ABN has not formally moved for summary judgment, however, and has not filed a Rule 3(g) statement or a notice of motion. Instead, ABN relies on authority that permits a court to grant summary judgment sua sponte against a party moving for summary judgment.

*632 For the reasons that follow, Upper Deck’s motion is denied with respect to both grounds, and ABN’s suggestion that it be granted partial summary judgment is also denied.

I.

Summary judgment may not .be granted unless “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c); see also Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Johnston v. IVAC Corp., 885 F.2d 1574, 1576-77 (Fed.Cir.1989). “The trial court’s task at the summary judgment motion stage of the litigation is carefully limited to discerning whether there are genuine issues of material fact to be tried, not to deciding them. Its duty, in short, is confined at this point to issue-finding; it does not extend to issue-resolution.” Gallo v. Prudential Residential Servs. Ltd. Partnership, 22 F.3d 1219, 1224 (2d Cir.1994); see Johnston, 885 F.2d at 1576-77 (summary judgment is “appropriate in a patent ease where no genuine issue of material fact exists and the movant is entitled to judgment as a matter of law”).

The moving party bears the initial burden of “informing the district court of the basis for its motion” and identifying the matter that “it believes demonstrate[s] the absence of a genuine issue of material fact.” Celotex, 477 U.S. at 323, 106 S.Ct. at 2553. The substantive law governing the ease will identify those facts which are material and “only disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). Ip determining whether summary judgment is appropriate, a court must resolve all ambiguities and draw all reasonable inferences against the moving party. See Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986) (citing United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962)); see also Transmatic, Inc. v. Gulton Indus., Inc., 53 F.3d 1270, 1274 (Fed.Cir.1995).

If the moving party meets its burden, the burden shifts to the nonmoving party to come forward with “specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e). With respect to the issues on which summary judgment is sought, if there is any evidence in the record from any source from which a reasonable inference could be drawn in favor of the nonmoving party) summary judgment is improper. See Chambers v. TRM Centers Corp., 43 F.3d 29, 37 (2d Cir.1994). In a patent ease on the issue of validity, the burden of proof at trial must be considered. National Presto Indus., Inc. v. The West Bend Co., 76 F.3d 1185, 1189 (Fed.Cir.1996). In this case, the parties agree that the burden of proof for establishing patent invalidity based on noncompliance with the best mode requirement is clear and convincing evidence. See Transco Prods. Inc. v. Performance Contracting, Inc., 38 F.3d 551, 560 (Fed.Cir.1994) (citing Scripps Clinic & Research Found, v. Genentech, Inc., 927 F.2d 1565, 1578 (Fed.Cir.1991)).

'II.

Upper Deck’s first argument is based on the concept of best mode. The best mode requirement is set forth in 35 U.S.C. § 112 para. 1, which provides:

The specification shall contain a written description of the invention, and of the manner and process of making and using it, in such full, clear, concise, and exact terms as to enable any person skilled in the art to which it pertains, or with which it is most nearly connected, to make and use the same, and shall set forth the best mode contemplated by the inventor of carrying out his invention.

To establish the invalidity of the ’377 and ’504 patents for failure to comply with the best mode requirement of § 112, Upper Deck must satisfy a two-part test. First, Upper Deck must prove that at the time the patent application was filed the inventor had a best mode of practicing the claimed invention. See United States Gypsum Co. v. National Gypsum Co., 74 F.3d *633 1209, 1212 (Fed.Cir.1996); Engel Indus., Inc. v. The Lockformer Co., 946 F.2d 1528, 1531 (Fed.Cir.1991). “This inquiry is wholly subjective and addresses whether the inventor must disclose any facts in addition to those sufficient for enablement.” U.S. Gypsum,

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934 F. Supp. 630, 1996 U.S. Dist. LEXIS 11801, 1996 WL 465747, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-bank-note-holographics-inc-v-upper-deck-co-nysd-1996.