Ardisam, Inc. v. Ameristep, Inc.

302 F. Supp. 2d 991, 2004 U.S. Dist. LEXIS 1905, 2004 WL 257247
CourtDistrict Court, W.D. Wisconsin
DecidedFebruary 6, 2004
Docket03-C-553-C
StatusPublished
Cited by1 cases

This text of 302 F. Supp. 2d 991 (Ardisam, Inc. v. Ameristep, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ardisam, Inc. v. Ameristep, Inc., 302 F. Supp. 2d 991, 2004 U.S. Dist. LEXIS 1905, 2004 WL 257247 (W.D. Wis. 2004).

Opinion

OPINION AND ORDER

CRABB, District Judge.

In this civil action for declaratory, monetary and injunctive relief, plaintiffs Ardi-sam, Inc. and Spring Form, Inc. contend that defendants Ameristep, Inc., Hunter’s View, Ltd. and Eastman Outdoors infringed plaintiffs’ U.S. Patent No. 5,038,812 (the ’812 patent), by making, using, selling *993 and offering for sale hunting blinds that utilize and embody the patented invention. The ’812 patent discloses a “quickly erecta-ble, quickly collapsible,' self supporting portable structure.” Plaintiffs bring their claim under 35 U.S.C. § 271. Jurisdiction is present. See 28 U.S.C. §§ 1331 and 1338.

Presently before the court are plaintiffs’ motion to dismiss counts V (laches), VI (equitable estoppel) and' VII (standing) of defendant Ameristep’s counterclaim under Fed.R.Civ.P. 12(b)(6) and to strike Ameris-tep’s factually-related affirmative defenses of laches, unclean hands, acquiescence, es-toppel and express or implied license. Dft.’s Counterclaims and Affirmative Defenses, dkt. ## 6 & 7. (Because Ameristep is the only defendant involved with plaintiffs’ motion, I will refer to Ameristep as “defendant.”) Defendant has moved for a continuance under Fed.R.Civ.P. 56(f). Plaintiffs support their motion with evidence outside the pleadings and ask the court to convert their motion to dismiss to one for summary judgment. Fed.R.Civ.P. 12(b).

As an initial matter, I note that defendant has mislabeled its defenses as “counterclaims.” Standing is a jurisdictional issue, not a counterclaim. Laches and equitable estoppel are affirmative defenses; one may not sue another under the doctrines of laches or equitable estoppel. I will consider plaintiffs’ motion to dismiss defendant’s affirmative defenses of laches and equitable estoppel.

Because both sides have approached plaintiffs’ motion to dismiss as one for summary judgment by submitting proposed findings of fact that cite materials outside the pleadings, I will convert plaintiffs’ motion to dismiss to one for partial summary judgment. Because the license agreement unambiguously provides plaintiff Ardisam the right to sue and the ’812 patent holder is joined as a plaintiff in this suit, I will grant plaintiffs’ motion for partial summary judgment on the standing issue. Because defendant fails to specify why it requires more discovery and how that discovery will help support its affirmative defenses of laches and equitable estoppel, I will deny defendant’s request for a continuance. Because defendant fails to adduce enough evidence to show unreasonable conduct by plaintiffs or economic prejudice as a result of any delay, I will grant plaintiffs’ motion for partial summary judgment on defendant’s laches and equitable estoppel defenses and deny plaintiffs’ motion to strike those defenses as unnecessary. Finally, because motions to strike are generally disfavored and defendant’s affirmative defenses of acquiescence, express or implied license and unclean hands are not insufficient on their face, I will deny plaintiffs’ motion to strike those defenses.

From the parties’ proposed findings of fact and the record, I find the following facts to be material and undisputed.

UNDISPUTED FACTS

A. The Parties

Plaintiff Ardisam, Inc., d/b/a Yukon Tracks, is a Wisconsin corporation with its principal place of business in Cumberland, Wisconsin. Plaintiff Spring Form, Inc. is a California corporation with its principal place of business in Los Angeles, California. Charles Gayton is the president of Spring Form. Spring Form owns the rights and title to the ’812 patent. In addition, Gayton is president of Pure Concepts, Inc. and owns the rights and title to U.S. Patent No. 4,825,892. Defendant Ameristep, Inc. is a Michigan corporation with its principal place of business in Clio, Michigan. Ameristep’s products are readily observable and available at national retail chains, on the internet and at trade shows throughout the country.

*994 B. The ’812 Patent License Agreement

On May 8, 2003, plaintiffs Spring’ Form and Ardisam entered into a license agreement concerning the ’812 patent. The agreement states, in relevant part:

2.01 Licensor ... hereby grants to Licensee, and Licensee hereby accepts, an exclusive, non-divisible, non-assignable, non-sublicensable license under the Intellectual Property to manufacture, distribute and sell the Licensed Structures in the Territory. Licensee’s rights and duties pursuant to this Agreement shall start on the Commencement Date and end on the Termination Date, unless terminated sooner as hereinafter provided.
11.02 Licensee will use its best efforts to detect every suspected infringement of the Intellectual Property in the Territory and on discovery of any suspected infringement, Licensee, at its sole cost and expense, shall undertake all necessary proceedings for effectively protecting and defending the Intellectual Property. Upon the occurrence of such an event, Licensor shall render assistance to Licensee in protecting and defending the Intellectual Property in the Territory provided no cost to Licensor is incurred. Licensor agrees that Licensee may use Licensor’s name in such litigation relative to protecting the Intellectual Property in the Territory. Licensor agrees to execute documents necessary thereto and to take rightful oaths and declarations in order to assist the Licensee in protecting the Intellectual Property; provided, however, that Licensor shall not be at no expense in providing such assistance ... Should Licensee fail to defend any possible infringement of the Intellectual Property in the manner outlined above, Licensee’s failure shall be deemed a material default of this Agreement and result in its automatic termination, without notice. 20.07 This Agreement shall be considered to have been executed in the County of Orange, State of California, United States of America, and shall be governed and construed by and in accordance with the laws of the State of California wherever possible and the parties hereby submit to the jurisdiction of the courts in the United States of America in the State of California as well as the courts of the State of California.

The agreement defines “Licensed Structures” as “Hunting and ice fishing blinds ONLY. Not for Camping or any other use.” The agreement defines “Intellectual Property as US Patent # 5,038,812 and Canadian Patent # 2,065,019.” The agreement defines “Territory” as “USA and Canada ONLY.” The agreement’s commencement date is April 30, 2003 and the termination date is April 13, 2008.

C. Current Lawsuit

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302 F. Supp. 2d 991, 2004 U.S. Dist. LEXIS 1905, 2004 WL 257247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ardisam-inc-v-ameristep-inc-wiwd-2004.