Asius Technologies, LLC v. Sonion US, Inc.

835 F. Supp. 2d 554, 2011 WL 6182354, 2011 U.S. Dist. LEXIS 143008
CourtDistrict Court, N.D. Illinois
DecidedDecember 13, 2011
DocketNo. 10 C 7838
StatusPublished
Cited by2 cases

This text of 835 F. Supp. 2d 554 (Asius Technologies, LLC v. Sonion US, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Asius Technologies, LLC v. Sonion US, Inc., 835 F. Supp. 2d 554, 2011 WL 6182354, 2011 U.S. Dist. LEXIS 143008 (N.D. Ill. 2011).

Opinion

MEMORANDUM OPINION

JOHN F. GRADY, District Judge.

Before the court are defendant Sonion US, Inc.’s (“Sonion US”): (1) motion to dismiss plaintiffs first amended complaint; and (2) motion for sanctions. For the reasons explained below, we grant its motion to dismiss and deny its motion for sanctions.

BACKGROUND

Plaintiff Asius Technologies, LLC (“Asius”) designs products relating to hearing aids and related devices. (Am. Compl. ¶ 39.) It has filed provisional patent applications for its “Ambrose Diaphonic Ear Lens and Pump” (“ADEL”) technology, and has marketed that technology to third parties under confidentiality agreements. (Id. at ¶¶ 43, 46-47, 50.) Those third parties include one or more of the named defendants — Sonion US, Sonion Nederland BV (“Sonion Nederland”), and Sonion Roskilde A/S (“Sonion Roskilde”). (Id. at ¶ 43.) We gather from the parties’ Rule 12(b)(1) materials that Asius had a joint-development agreement with Sonion Nederland. (See Decl. of William J. Taylor ¶ 11 (hereinafter, “Taylor Decl.”).) But Asius alleges that the three defendants operate “as a single homogenized business unit,” sharing officers, websites, etc. (Am. Compl. ¶¶ 12-21.) After exploring a business relationship with Asius for several months, “Sonion” declared that it was no longer interested in February 2010. (Id. at ¶¶ 44-45, 49.) Asius alleges that in June 2010 it learned that Sonion had told one of Asius’ potential business partners that Asius infringed U.S. Patent Nos. 7,227,968 (the “'968 patent”) and 7,425,196 (the “'196 patent”). Sonion Roskilde, Son-ion US’s parent company, is the assignee of both patents. (See '968 patent and '196 patent, attached as Exs. A and B to Am. Compl.) In its response to Sonion US’s [557]*557motion, Asius identifies Siemens as its prospective partner. (See Decl. of Stephen D. Ambrose, attached as Ex. K to Pl.’s Resp., ¶ 2 (hereinafter, “Ambrose Decl.”).) Stephen Ambrose, Asius’ cofounder, describes a telephone conference that he had with representatives of Siemens’ hearing-aid division. At that meeting, Siemens’ representatives told him that Sonion’s Chief Technology Officer, Art Van Halteren, had convinced them that “Sonion, not Asius, possessed the core intellectual property encompassing the ADEL technology via Sonion’s issued patents.” (Ambrose Decl. ¶¶ 6-7; see also id. at ¶ 9.) At some point after this meeting, “Siemens backed away from the commercialization of Asius’ ADEL technology.” (Id. at ¶ 8.)

Asius seeks declaratory judgments that it does not infringe the '968 and '196 patents (Counts I and III) and that those patents are invalid (Counts II and IV). It has also filed state-law claims for tortious interference with prospective economic advantage (Counts V and VI), and separately requests its attorneys fees under 35 U.S.C. § 285 (Count VII). Asius’ original complaint named only Sonion U.S. as a defendant. In its motion to dismiss the original complaint, Sonion U.S. argued (among other things) that Asius had sued the wrong party because Sonion U.S. is not the patentee, assignee, or “virtual assignee” of the patents. See 35 U.S.C. § 281 (“A patentee shall have remedy by civil action for infringement of his patent.”); Enzo APA & Son, Inc. v. Geapag A.G., 134 F.3d 1090, 1093 (Fed.Cir.1998) (only a patentee, an assignee, or a “virtual assignee” has standing to sue for patent infringement); Fina Research, S.A. v. Baroid Ltd., 141 F.3d 1479, 1480-81 (Fed.Cir.1998) (indicating that there is no “controversy” supporting declaratory-judgment jurisdiction in a suit alleging non-infringement or invalidity against a party that cannot sue for infringement). In response to the motion, Asius amended its complaint to add Sonion Nederland and Sonion Roskilde as defendants. See Fed.R.Civ.P. 15(a)(1)(B). Asius’ apparent failure to serve the foreign defendants is problematic: for reasons that we are about to discuss, Asius’ standing to continue pursuing this lawsuit depends in part on its properly joining those defendants. At the same time, they are obviously aware of this lawsuit. The three named defendants in this case are corporate affiliates, and shortly after Asius filed this lawsuit Sonion Nederland sued Asius for breach of contract in the District of Delaware. Sonion US’s attorneys in this case represent Sonion Nederland in the Delaware action, and the parties in that case have briefed Asius’ motion to transfer that action to this court.1 In short, the absent defendants will not be prejudiced if we rule on Sonion US’s motions at this time.

DISCUSSION

A. Legal Standard

Sonion U.S. argues that the amended complaint fails to remedy the standing problem that it identified in its previous motion to dismiss. Federal Circuit law governs whether Asius has standing to seek declaratory judgments concerning the patents. See WiAV Solutions LLC v. Motorola, Inc., 631 F.3d 1257, 1263 (Fed.Cir.2010); see also Schreiber Foods, Inc. v. Beatrice Cheese, Inc., 402 F.3d 1198, 1202 (Fed.Cir.2005). Both parties rely on Seventh Circuit authority to establish the proper scope of the jurisdictional inquiry, (see Def.’s Mem. at 8 n. 3; Pl.’s Resp. at 7), but there does not appear to be a [558]*558substantive difference between the two Circuits on this issue. Under either Circuit’s law, we may look beyond the complaint’s allegations and consider affidavits and other evidence to determine whether subject-matter jurisdiction exists. See Capitol Leasing Co. v. FDIC, 999 F.2d 188, 191 (7th Cir.1993); Reynolds v. Army and Air Force Exchange Service, 846 F.2d 746, 747 (Fed.Cir.1988). Asius bears the burden of establishing subject-matter jurisdiction. See Muscarello v. Ogle County Bd. of Com’rs, 610 F.3d 416, 425 (7th Cir.2010); Reynolds, 846 F.2d at 748.

B. Whether Asius Has Properly Sued a Party Entitled to Enforce the Patents

The Declaratory Judgment Act provides:

In a case of actual controversy within its jurisdiction ... any court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party seeking such declaration, whether or not further relief is or could be sought.

28 U.S.C. § 2201. The Declaratory Judgment Act provides a remedy, not an independent source of subject-matter jurisdiction. See Prasco, LLC v. Medicis Pharmaceutical Corp.,

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835 F. Supp. 2d 554, 2011 WL 6182354, 2011 U.S. Dist. LEXIS 143008, Counsel Stack Legal Research, https://law.counselstack.com/opinion/asius-technologies-llc-v-sonion-us-inc-ilnd-2011.