Apeldyn Corp. v. Sony Corp.

852 F. Supp. 2d 568, 2012 U.S. Dist. LEXIS 47734, 2012 WL 1129371
CourtDistrict Court, D. Delaware
DecidedApril 4, 2012
DocketCiv. No. 11-440-SLR
StatusPublished
Cited by8 cases

This text of 852 F. Supp. 2d 568 (Apeldyn Corp. v. Sony Corp.) 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
Apeldyn Corp. v. Sony Corp., 852 F. Supp. 2d 568, 2012 U.S. Dist. LEXIS 47734, 2012 WL 1129371 (D. Del. 2012).

Opinion

MEMORANDUM OPINION

SUE L. ROBINSON, District Judge.

I. INTRODUCTION

Plaintiff Apeldyn Corporation (“Apeldyn”) filed a complaint alleging infringement of its U.S. Patent No. 5,347,382 (“the '382 patent”) by defendants Sony Corporation and Sony Electronics, Inc. (collectively, “Sony”) on May 19, 2011. (D.I. 1) Therein, Apeldyn alleged that Sony infringes the '382 patent and induces infringement of the '382 patent by virtue of its making, selling, and importing “products that are made by a method that infringes one or more claims of the '382 patent,” and that Sony’s “infringement has been and continues to be willful and deliberate, and will continue unless enjoined by this court,” which also renders this case exceptional. (Id. at ¶126, 29) Sony moved to dismiss Apeldyn’s claims of inducement of infringement and willful infringement. (D.I. 5) Apeldyn filed a first amended complaint on July 12, 2011, mooting that motion. (D.I. 11) Thereafter, on July 28, 2011, Sony filed its renewed motion to dismiss plaintiffs inducement and willful infringement claims. (D.I. 13) Sony has also filed a motion to stay the proceedings. (D.I. 16) The court has jurisdiction over these matters pursuant to 28 U.S.C. §§ 1331 and 1338(a). For the reasons that follow, Sony’s motions are denied.

II. BACKGROUND

This is not the first lawsuit in this court regarding infringement of Apeldyn’s '382 patent, which is directed to the response time of liquid crystal material in VA mode Liquid Crystal Display modules (“LCDs”). Apeldyn filed a complaint on September 8, 2008 against AU Optronics Corporation and AU Optronics Corporation America (collectively, “AUO”), Chi Mei Optoelectronics Corporation and Chi Mei Optoelectronics USA Inc. (collectively, “CMO”), Sony, Samsung Electronics Co., Ltd., and Samsung Electronics America Inc. (collectively, “Samsung”) (hereinafter, the “OS-568 case”). (Civ. No. 08-568, D.I. 1) The court was presented with a motion by Samsung to disqualify Apeldyn’s counsel on February 25, 2009. (Id., D.I. 45) After several extensions of time, Sony answered the complaint on March 2, 2009. (Id., D.I. 50) On September 30, 2009, the court conditionally granted Samsung’s motion for disqualification. (Id., D.I. 155, 156) Samsung was subsequently dismissed from the case. (Id., D.I. 255) On April 13, 2010, the court received a stipulation of dismissal with respect to Sony. (D.I. 294) After an extensive claim construction and summary judgment practice (D.I. 627), and the subsequent denial of the parties’ motions for reargument (D.I. 653), the parties stipulated to a form of judgment (D.I. 665) and Apeldyn has appealed the court’s decisions [571]*571to the Federal Circuit (D.I. 663). Apeldyn filed the present suit against Sony on May 19, 2011 and, shortly thereafter, filed another suit against Samsung for infringement of the '382 patent. (Civ. No. 11-581, hereinafter, “the 11-581 case”)

According to the amended complaint in this action, defendant Sony Corporation is a Japanese manufacturer of LCD products, and defendant Sony Electronics, Inc., a Delaware corporation headquartered in California, is the domestic subsidiary importing LCD’s for sale in the United States. (D.I. 11 at ¶¶ 8-9, 23) Since 2005, Sony’s LCD televisions in North America have carried the “Bravia” logo. (Id. at ¶ 21) Since 2007, Sony has supplied a “unique series” of Bravia LCD televisions to major U.S. retailers (such as Wal-Mart and Target), which are targeted for “different niches of customers,” for example, Black Friday shoppers. (Id. at ¶¶ 25-27) According to Sony’s 2008 Annual Report, S-LCD Corporation (“S-LCD”), a joint venture between Sony and Samsung Electronics Co., Ltd. of Korea (“Samsung Korea”), principally provides a “stable supply” of LCD panels to meet increased consumer demand. (Id. at ¶ 28) S-LCD started LCD panel production in April 2005, with new production lines beginning operations in 2008 and June 2009. (Id. at ¶ 29) S-LCD’s panels are incorporated into many Bravia televisions imported to and sold in the United States. (Id. at ¶ 30)

Apeldyn identifies several Sony LCD products that it alleges infringe the claims of the '382 patent by model number. (Id. at ¶ 32) Apeldyn further asserts that Sony has induced infringement of the '382 patent (“so as to exploit the large and growing LCD market in the United States”) by developing and maintaining relationships with third party business partners (including major retailers) to “develop and sell” LCD’s. (Id. at ¶¶33) More specifically, Sony “coordinates with them and others about the designs, specifications, distribution and placement of orders for LCD products and panels destined for the U.S. market,” and “communicates with [the] third parties to promote and encourage the use, sale, importation and offering for sale of these same LCD panels in and into the United States,” such as in meetings. (Id. at ¶¶ 34-35)

With respect to Sony’s knowledge, Apeldyn asserts that Sony was aware of the ’382 patent:

• “since at least Apeldyn accused Sony of infringing the patent in a complaint filed on September 8, 2008” (id. at ¶ 36);
• “prior to the 2008 complaint as a result of the routine review and operation of Sony’s legal and intellectual property departments” (id. at ¶ 37);
• “prior to the 2008 complaint, as a result of its joint ownership in S-LCD and business relationship with Samsung [Korea] whereby Sony jointly owns the manufacturing facility that makes many of Sony’s LCD panels” (id. at ¶ 38); and
• by a notice letter sent to Samsung by Apeldyn on December 13, 2004 (hereinafter, the “2004 notice letter”), alerting Samsung [Korea] that it may be infringing the '382 patent by “employing the Apeldyn fast response technology ... in LCD TVs and other products” (id. at ¶ 39).

III. STANDARD

In reviewing a motion filed under Federal Rule of Civil Procedure 12(b)(6), the court must accept all factual allegations in a complaint as true and take them in the light most favorable to plaintiff. See Er[572]*572ickson v. Pardus, 551 U.S. 89, 94, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007). A complaint must contain “a short and plain statement of the claim showing that the pleader is entitled to relief, in order to give the defendant fair notice of what the ... claim is and the grounds upon which it rests.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 545, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (interpreting Fed.R.Civ.P. 8) (internal quotations omitted). A complaint does not need detailed factual allegations; however, “a plaintiffs obligation to provide the ‘grounds’ of his entitlefment] to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Id. (citation omitted).

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Bluebook (online)
852 F. Supp. 2d 568, 2012 U.S. Dist. LEXIS 47734, 2012 WL 1129371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apeldyn-corp-v-sony-corp-ded-2012.