Aqua-Lung America, Inc. v. American Underwater Products, Inc.

709 F. Supp. 2d 773, 2010 U.S. Dist. LEXIS 41830, 2010 WL 1734969
CourtDistrict Court, N.D. California
DecidedApril 28, 2010
DocketC 07-02346 RS
StatusPublished
Cited by4 cases

This text of 709 F. Supp. 2d 773 (Aqua-Lung America, Inc. v. American Underwater Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aqua-Lung America, Inc. v. American Underwater Products, Inc., 709 F. Supp. 2d 773, 2010 U.S. Dist. LEXIS 41830, 2010 WL 1734969 (N.D. Cal. 2010).

Opinion

*776 ORDER GRANTING IN PART AND DENYING IN PART SUMMARY JUDGMENT

RICHARD SEEBORG, District Judge.

I. INTRODUCTION

This case arises out of a series of scuba equipment patents. At the heart of the dispute are three patents held by defendant Two Forty Deuce (“TFD”) and exclusively licensed to defendant American Underwater Products, d/b/a Oceanic (“AUP”): U.S. Patent No. 6,601,609, issued August 5, 2003 (the “'609 Patent”); U.S. Patent No. 6,901,958, issued June 7, 2005 (the “'958 Patent”); and U.S. Patent No. 7,185,674, issued March 6, 2007 (the “'674 Patent”). Plaintiff Aqua-Lung America, Inc. (“Aqua-Lung”) filed a complaint for declaratory judgment of patent invalidity and non-infringement against AUP and TFD (collectively, “Oceanic”). Oceanic counterclaimed for infringement. The parties have each moved for summary judgment on these claims. For the reasons stated below, Oceanic’s motion for summary judgment on infringement will be granted with respect to the '674 Patent, and AquaLung’s motion for summary judgment on non-infringement will likewise be denied as to this patent. As to the other two patents, the accused devices do not infringe, and consequently Oceanic’s motion for summary judgment on infringement will be denied and Aqua-Lung’s motion for summary judgment on non-infringement will be granted. Aqua-Lung’s motion for summary judgment of invalidity will also be denied.

Oceanic also counter-claimed against Aqua-Lung for fraud and trade secret misappropriation, and Aqua-Lung has moved for summary judgment on these claims. Genuine issues of material fact exist for the latter, but not the former. Accordingly, summary judgment is granted in favor of Aqua-Lung on the fraud counter-claim, but summary judgment is denied as to the trade secret misappropriation counter-claim.

II. BACKGROUND

A typical scuba system works as follows. A tank of compressed gas, usually worn on the diver’s back, is connected to the diver’s mouth via a hose. At each end of this hose, there is a device called a regulator. The regulator at the “tank end” of the hose is called the first stage regulator, and that at the “mouth end” is called the second stage regulator. The two regulators work together to reduce the pressure of the compressed gas from the scuba tank as it travels the length of the hose, such that by the time the gas enters the diver’s mouth, it is breathable. This lawsuit concerns the design of a valve that is intended to link the first stage (tank-end) regulator to the scuba tank. Oceanic contends that Aqua-Lung’s Kronos, Legend, and Titan families of regulators each include valves employing an “automatic closure device” that infringes on Oceanic’s patents.

The basic purpose of the disputed valve is to prevent water and debris from entering the first-stage regulator when the hose/regulator assembly is detached from the scuba tank. The valve may be activated, among other methods, by gas pressure in the hose or by mechanical means. A mechanically-activated valve is designed to open automatically every time the scuba tank is connected to the hose/regulator assembly and close whenever the scuba tank is detached. A gas-pressure activated valve, by contrast, is designed to close when the air pressure on the downstream side of the valve equalizes with the air pressure on the upstream side of the valve. In practice, this means the valve opens and closes every time the diver inhales and draws air from the pressurized scuba tank. *777 Aqua-Lung’s valve is mechanically activated.

Aqua-Lung filed a complaint in April 2007 and an amended complaint in July 2007. The amended complaint sought a declaratory judgment that Aqua-Lung’s valve does not infringe the three patents-in-suit. It also sought a declaratory judgment of invalidity as to all three Oceanic patents. Oceanic counter-claimed for infringement, for misappropriation of trade secrets in violation of Cal. Civil Code § 3426, and for fraud/misrepresentation. The Court issued its claim construction order in February 2009. Aqua-Lung seeks summary judgment rejecting Oceanic’s fraud and trade secret misappropriation claims and invalidating the patents-in-suit. The parties have also brought cross-motions seeking to have infringement resolved one way or another, as a matter of law. The parties presented argument on these motions on March 24, 2010.

III. LEGAL STANDARDS

A. Summary Judgment Generally

A motion for summary judgment should be granted if there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Fed. R.Civ.P. 56(c); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The purpose of summary judgment “is to isolate and dispose of factually unsupported claims or defenses.” Celotex v. Catrett, 477 U.S. 317, 323-24, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party bears the initial burden of informing the Court of the basis for the motion and identifying those portions of the pleadings, depositions, answers to interrogatories, admissions, or affidavits which demonstrate the absence of a triable issue of material fact. Id. at 323, 106 S.Ct. 2548.

If the moving party meets its initial burden, it then shifts to the non-moving party to present specific facts showing that there is a genuine issue of material fact for trial. Fed.R.Civ.P. 56(e); Celotex, 477 U.S. at 324, 106 S.Ct. 2548. The evidence and all reasonable inferences therefrom must be viewed in the light most favorable to the non-moving party. T.W. Elec. Serv., Inc. v. Pac. Elec. Contractors Ass’n, 809 F.2d 626, 630-31 (9th Cir.1987). The opposing party “must do more than simply show that there is some metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co. v. Zenith Radio, 475 U.S. 574, 588, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). Summary judgment is not appropriate if the nonmoving party presents evidence from which a reasonable jury could resolve the disputed issue of material fact in his or her favor. Anderson, 477 U.S. at 248, 106 S.Ct. 2505; Barlow v. Ground, 943 F.2d 1132, 1136 (9th Cir.1991). Nonetheless, “[wjhere the record taken as a whole could not lead a rational trier of fact to find for the nonmoving party, there is no genuine issue for trial.” Matsushita, 475 U.S. at 587, 106 S.Ct. 1348 (internal quotation marks omitted).

B. Summary Judgment Standards Regarding Patent Infringement and Invalidity

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709 F. Supp. 2d 773, 2010 U.S. Dist. LEXIS 41830, 2010 WL 1734969, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aqua-lung-america-inc-v-american-underwater-products-inc-cand-2010.