ASETEK Danmark A/S v. CMI USA, Inc.

100 F. Supp. 3d 871, 2015 U.S. Dist. LEXIS 52989, 2015 WL 1848967
CourtDistrict Court, N.D. California
DecidedApril 21, 2015
DocketCase No. 13-cv-00457-JST
StatusPublished
Cited by5 cases

This text of 100 F. Supp. 3d 871 (ASETEK Danmark A/S v. CMI USA, 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
ASETEK Danmark A/S v. CMI USA, Inc., 100 F. Supp. 3d 871, 2015 U.S. Dist. LEXIS 52989, 2015 WL 1848967 (N.D. Cal. 2015).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW; ORDER ENTERING JUDGMENT IN FAVOR OF PLAINTIFF

Re: ECF Nos. 234, 235, 236

JON S. TIGAR, United States District Judge

This patent infringement case was tried to a jury in December 2014. ECF No. 189. On December 17, 2014, the jury returned a verdict in favor of Plaintiff Ase-tek Danmark A/S, finding that Defendant CMI USA, Inc.’s products infringed United States Patents No. 8,245,764 and 8,240,-362 (“’764 patent” and “’362 patent”). ECF Nos. 218, 219.

Now before the Court are the parties’ proposed findings of fact and conclusions of law, as well as CMI’s memorandum of points and authorities in support of its defenses of obviousness, indefiniteness, and lack of written description. ECF Nos. 234, 235, 236. The Court has adopted the proposed findings and conclusions as stated below, and concludes that neither the ’764 patent nor the ’362 patent are invalid for obviousness, lack of written description, or indefiniteness.

[876]*876I.FINDINGS OF FACT

A. Background and Procedural History

Asetek is a Denmark-based corporation that sells liquid cooling systems for data centers, servers, workstations, and personal computers. ECF No. 1, ¶¶ 1, 11, 12. It owns the ’764 and ’362 patents by assignment. ECF No. 118 at 1. The patents relate to devices that use liquid to cool computer components. See ECF No. 1, Exs. A, B.

On January 31, 2013, Asetek filed suit against CMI for infringement of claims 14, 15, and. 17-19 of the ’362 patent, and claims 1-15, 17, and 18 of the ’764 patent, by the following CMI products: (1) Cooler Master Seidon 120M, 120XL, and 240M; (2) Cooler Master Seidon 120V and 120V Plus; (3) Cooler Master Glacer 240L; and (4) Cooler Master Nepton 140XL and 280L. ECF No. 1; ECF No. 130 at 1. In its complaint, Asetek “demanded] a jury trial on all matters triable to a jury.” ECF No. 1 at 7.

1. Claim construction

This case was consolidated for claim construction with another patent-infringement suit brought by Asetek involving the ’362 and ’764 patents. ECF No. 35 at 1 & n.l. Judge Edward M. Chen presided over the joint claim construction proceeding. Id. In its claim construction brief, CMI argued that because “several key claim terms are found nowhere in the written description[,]” these “claims are likely invalid for indefiniteness and/or lack of written description.... ” Asetek Holdings, Inc. v. Coolit Sys. Inc., Case No. 3:12-cv-04498, ECF No. 137 at 1. But CMI suggested that “the Court may decide that issue at a later time.” Id. Judge Chen agreed, reasoning that “[ijnvalidity defenses are usually addressed at summary judgment.” ECF No. 35 at 13 (citation omitted).

Judge Chen’s claim construction order also addressed several terms relating to the claims in dispute at trial. See ECF No. 35. He construed the term “reservoir,” as used in both the ’362 and ’764 patents, to mean “a receptacle or chamber for holding a liquid or fluid.” Id. at 6, 8. Asetek asked Judge Chen to construe “reservoir” to mean a single receptacle, but he declined to do so, explaining that, “[t]o the extent Asetek puts a premium on the word ‘single,’ that word is unnecessary because the fact that the claim term is ‘reservoir’ (singular) and not ‘reservoirs’ (plural) indicates that a reservoir is only one receptacle and not many.” Id. at 8. Judge Chen also declined to construe the term “substantially circular passages,” and instead adopted the plain and ordinary meaning of that term. Id. at 12-14.

2. Summary judgment

After claim construction, CMI moved for summary judgment of invalidity of the ’362 and ’764 patents and non-infringement of the ’362 patent. ECF No. 86. CMI argued that the ’362 and ’764 patents were invalid as both anticipated and obvious. See ECF Nos. 86, 106. But despite the fact that CMI’s expert opined in his report — which CMI relied on to bring its motion for summary judgment — that Ase-tek’s patents were invalid for lack of a written description and indefiniteness, see ECF No. 99-7 at 36-42, CMI did not assert or even mention these defenses in its motion for summary judgment, see ECF Nos. 86, 106. The Court denied CMI’s motion for summary judgment in full, finding genuine disputes of material fact precluded judgment in CMI’s favor. ECF No. 126.

3. Pre-trial and trial

The matter then proceeded to trial. In the parties’ joint pre-trial statement, CMI revealed that it contested infringement only of the ’362 patent, and not of the ’764 [877]*877patent. See ECF No. 130 at 4-5. CMI also asserted that the ’764 and ’362 patents were invalid as anticipated, obvious, and indefinite, and because they lacked adequate written descriptions. See id. As to the defenses of lack of written description and indefiniteness in particular, the parties submitted (1) a joint pretrial statement, where the parties listed these defenses as “disputed factual issues,” ECF No. 130 at 4-5; (2) proposed joint jury instructions, where Final Instruction No. 23 addressed the lack of written description defense, see ECF No. 152 at 49; (3) a proposed jury verdict form, asking the jury to decide the lack of written description defense, ECF No. 155 at 6; and (4) a trial brief, explaining the law governing lack-of-written-description and indefiniteness defenses, ECF No. 181 at 8.

Jury selection began on December 2, 2014. On December 11, 2014, Asetek discovered that CMI had removed the lack of written description defense instruction from its final proposed jury instructions. ECF No. 236-2; see ECF No. 205 at 28. In response, Asetek’s counsel emailed CMI’s counsel, stating: “We gather from your verdict form that CMI USA is dropping its written description and indefiniteness defenses.” ECF No. 236-2. CMI’s counsel sent two emails in reply, but did not dispute or respond to Asetek’s counsel’s statement. Id. The next day, CMI also removed all mention of the lack of written description defense from its revised proposed jury verdict form. See ECF No. 206 at 3-5.

During trial, CMI did not present any evidence that the term “substantially circular” was indefinite or lacked a sufficient written description, failing to question either party’s expert regarding these topics.1 CMI also did not raise these defenses in its pre-verdict motion for judgment as a matter of law. See ECF No. 232. On December 17, 2014, the jury returned a verdict in Asetek’s favor. ECF No. 219.

The jury found that all of the accused products infringed the claims of the ’362 patent, and that CMI’s products contribu-torily infringed the asserted method claims of the ’362 patent. Id. at 1-2. Further, the jury found that the ’764 patent was not invalid as anticipated by the Koga prior art reference.2 Id. at 2.

The jury also rendered several decisions related to the question of obviousness. First, the jury found that a person of ordinary skill in the field of liquid cooling at the time of inventions claimed in the ’764 and ’362 patents was:

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Bluebook (online)
100 F. Supp. 3d 871, 2015 U.S. Dist. LEXIS 52989, 2015 WL 1848967, Counsel Stack Legal Research, https://law.counselstack.com/opinion/asetek-danmark-as-v-cmi-usa-inc-cand-2015.