ArcherDX, LLC v. QIAGEN Sciences, LLC

CourtDistrict Court, D. Delaware
DecidedSeptember 30, 2022
Docket1:18-cv-01019
StatusUnknown

This text of ArcherDX, LLC v. QIAGEN Sciences, LLC (ArcherDX, LLC v. QIAGEN Sciences, LLC) 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
ArcherDX, LLC v. QIAGEN Sciences, LLC, (D. Del. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

ARCHERDX, LLC and THE GENERAL ) HOSPITAL CORPORATION d/b/a ) MASSACHUSETTS GENERAL ) HOSPITAL, ) ) Plaintiffs, ) ) v. ) C.A. No. 18-1019 (MN) ) QIAGEN SCIENCES, LLC, QIAGEN LLC ) f/k/a QIAGEN, INC., QIAGEN BEVERLY, ) LLC F/K/A QIAGEN BEVERLY, INC., ) QIAGEN GAITHERSBURG, LLC f/k/a ) QIAGEN GAITHERSBURG, INC., ) QIAGEN GMBH, QIAGEN N.V. and ) JONATHAN ARNOLD, ) ) Defendants. )

MEMORANDUM OPINION

Daniel M. Silver, Alexandra M. Joyce, MCCARTER & ENGLISH, LLP, Wilmington, DE; Leigh J. Martinson, Keith Toms, Jill Mello, Ph.D., Wyley S. Proctor, MCCARTER & ENGLISH, LLP, Boston, MA; Michael A. Albert, Eric J. Rutt, WOLF, GREENFIELD & SACKS, P.C., Boston, MA – Attorneys for Plaintiffs

Edward R. Reines, WEIL, GOTSHAL & MANGES LLP, Redwood Shores, CA – Attorney for Plaintiff ArcherDX, LLC

David E. Moore, Bindu A. Palapura, POTTER ANDERSON & CORROON LLP, Wilmington, DE; David Bilsker, Andrew Naravage, QUINN EMANUEL URQUHART & SULLIVAN LLP, San Francisco, CA; Anne Toker, James E. Baker, Anastasia M. Fernands, QUINN EMANUEL URQUHART & SULLIVAN LLP, New York, NY; Jeffrey C. Wu, QUINN EMANUEL URQUHART & SULLIVAN LLP, Salt Lake City, UT – Attorneys for Defendants

September 30, 2022 Wilmington, Delaware OREIKA, U.S. DISTRICT JUDGE The Court presided over a five-day jury trial from August 23, 2021 to August 27, 2021. (See D.I. 485, 486, 487, 488, 489). At the end, the jury found Defendants Qiagen Sciences, LLC, Qiagen LLC f/k/a Qiagen, Inc., Qiagen Beverly, LLC f/k/a Qiagen Beverly, Inc., Qiagen Gaithersburg, LLC, f/k/a Qiagen Gaithersburg, Inc., Qiagen GmbH, Qiagen N.V. and Jonathan Arnold (collectively “Defendants” or “Qiagen”) to have willfully infringed claims of two patents of Plaintiffs ArcherDX, LLC and the General Hospital Corporation (collectively, “Plaintiffs’). (See D.I. 465). Presently before the Court are Defendants’ renewed motion for judgment as a matter of law or, alternatively, for a new trial on infringement, invalidity and damages, motion for a new trial on willfulness and motion for remittitur (See D.I. 495). In addition, Plaintiffs move for injunctive relief, ongoing royalty, enhanced damages, supplemental damages and pre- and post- judgment interest. (See D.I. 494). For the reasons set forth below, the Court will deny Defendants’ motions for judgment as a matter of law and new trial, grant Defendants’ motion for remittitur, deny Plaintiffs’ motion for enhanced damages, deny Plaintiffs’ motion for injunction with leave to renew after an evidentiary hearing, grant-in-part Plaintiffs’ motion for ongoing royalty and grant Plaintiffs’ motions for supplemental damages and pre- and post-judgment interest. 1. BACKGROUND Plaintiffs and Defendants are in the business of biomedical technology. Plaintiffs and Defendants provide products referred to as assay “kits” that allow users to prepare and analyze nucleic acids using next generation sequencing technology. (See DI. 1 PP 19-20, D.I. 330 at 1). The kits enable users to detect gene mutations associated with various cancers and have applications in both the clinical and research space. (See DI. 1 P 1, DI. 130 P 19, □□□ 330 at 1). At issue in this case are two of Plaintiffs’ patents: U.S. Patent No. 10,017,810 (‘the □□□□ patent”) and U.S. Patent No. 10,450,597 (“the °597 patent”). The °810 patent is directed to

methods of determining oligonucleotide sequences. (See D.I. 130 ⁋ 18). The ’597 patent is directed to methods of preparing and analyzing nucleic acids. (See id.). Plaintiffs have developed and now sell various assay kits that use technology covered by both patents. (Id. ⁋⁋ 19-20). Defendants also developed and now sell kits used to detect gene mutations. (See D.I. 330 at 1). On July 10, 2018, Plaintiffs filed suit alleging that Defendants infringed the ’810 patent.1

(See D.I. 1 ⁋⁋ 41-55). On October 30, 2019, after the ’597 patent had issued, Plaintiffs filed an amended complaint, adding a claim for infringement of the ’597 patent. (See D.I. 130 ⁋⁋ 41-55). On August 21, 2021 the Court reversed its previous denial of summary judgment of no literal infringement of the ’810 patent after further argument. (See D.I. 447). Thus, the issues left for trial were literal infringement of the ’597 patent and infringement under the doctrine of equivalents for the ’810 patent. From August 23, 2021 to August 27, 2021, the Court presided over a jury trial. (See D.I. 485, 486, 487, 488, 489). The jury found that Defendants willfully infringed claims 16, 17 and 19 of the ’810 patent and claims 1, 5 and 19 of the ’597 patent. (See D.I. 465 at 2-4). In addition, the

jury found none of these claims invalid. (See id. at 5-7). The jury awarded Plaintiff $841,756 in lost profits damages for sales of RNA-related products in the United States, $1,593,762 in royalty damages for sales of DNA-related products in the United States and $2,240,303 in royalty damages for sales outside the United States. (See id. at 8).

1 Plaintiff also initially asserted claims of misappropriation of trade secrets, false advertising, breach of fiduciary duty, deceptive trade practices and tortious conduct. (See D.I. 1 at ⁋ 1). Prior to trial, Plaintiffs elected to withdraw their claims of trade secret misappropriation, false advertising, deceptive trade practices and tortious interference. (See D.I. 413). On August 3, 2021, Plaintiffs accepted an offer of judgment from Defendants pursuant to Rule 68 of the Federal Rules of Civil Procedure for their breach of fiduciary duty claims. (See D.I. 423). On September 20, 2021, the Court entered judgment on the jury verdict under Rule 58(b) of the Federal Rules of Civil Procedure. (See D.I. 482). On October 18, 2021, Defendants renewed their motion for judgment as a matter of law on the issues of infringement, invalidity and damages, or, in the alternative, moved for a new trial. (See D.I. 495). In addition, Defendants moved for a new trial on willfulness and remittitur of damages. (See id.). On October 18, 2021, Plaintiffs

moved for enhanced damages, injunction, ongoing royalty, supplemental damages and pre- and post-judgment interest. (See D.I. 494). The parties briefing on post-trial motions was completed on December 15, 2021. (See D.I. 513, 514). II. LEGAL STANDARDS A. Judgment as a Matter of Law Judgment as a matter of law may be entered against a non-moving party if the Court “finds that a reasonable jury would not have a legally sufficient evidentiary basis to find for the party on [an] issue.” FED. R. CIV. P. 50(a)(1). Judgment as a matter of law is appropriate “only if, viewing the evidence in the light most favorable to the nonmovant and giving it the advantage of every fair and reasonable inference, there is insufficient evidence from which a jury reasonably could find liability.” Lightning Lube, Inc. v. Witco Corp., 4 F.3d 1153, 1166 (3d Cir. 1993). Entry of

judgment as a matter of law is a remedy to be invoked only “sparingly.” CGB Occupational Therapy, Inc. v. RHA Health Servs. Inc., 357 F.3d 375, 383 (3d Cir. 2004). Following a jury trial, a renewed motion for judgment as a matter of law under Rule 50(b) may be granted only if the movant demonstrates “that the jury’s findings, presumed or express, are not supported by substantial evidence or, if they were, that the legal conclusion(s) implied [by] the jury’s verdict cannot in law be supported by those findings.” Pannu v. Iolab Corp., 155 F.3d 1344, 1348 (Fed. Cir. 1998) (alteration in original) (internal quotation marks omitted).

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ArcherDX, LLC v. QIAGEN Sciences, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/archerdx-llc-v-qiagen-sciences-llc-ded-2022.