Auto-Dril, Inc. v. Nat'l Oilwell Varco, LP.

304 F. Supp. 3d 587
CourtDistrict Court, S.D. Texas
DecidedApril 11, 2018
DocketCIVIL ACTION NO. H–16–280, H–16–293
StatusPublished
Cited by2 cases

This text of 304 F. Supp. 3d 587 (Auto-Dril, Inc. v. Nat'l Oilwell Varco, LP.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Auto-Dril, Inc. v. Nat'l Oilwell Varco, LP., 304 F. Supp. 3d 587 (S.D. Tex. 2018).

Opinion

Lee H. Rosenthal, Chief United States District Judge

This patent-infringement case involves braking and feedback technology for oil and gas drilling-control systems. Lowering pipe down an oil or gas drilling well puts pressure on the drill bit. Too much weight can damage the bit, costing time and money while it is repaired or replaced. To little weight results in slower drilling and less efficient production, both costly. To maximize efficiency and decrease costs, drillers need to put the "just right" weight on a drill bit.

Auto-Dril's U.S. Patent No. 6,994,172 (the '172 Patent) claims a system for more precise weight-on-bit measurement and control that achieves a better balance between *594the goals of increasing drilling speed and reducing damage to drilling components. (Docket Entry No. 21-1). The '172 Patent attempts to solve the problem of finding the Goldilocks "just right" weight-on-bit. The '172 Patent claims sensors that produce electronic signals indicating the weight-on-bit. The signals are received by a computer-based drilling system, which transmits them to an electric motor. The motor either increases the amount of brake applied to the drill string, reducing the weight-on-bit, or reduces the amount of brake, increasing the weight-on-bit. The system auto-adjusts by comparing the actual bit weight with an operator-selected weight previously set in the system.

Auto-Dril alleges that National Oilwell Varco's "e-Wildcat" electronic autodrilling system and Canrig Drilling Technology's "DrillSmart" automatic drilling system infringes the '172 Patent. (Docket Entry Nos. 21, 45). The parties have asked the court to construe several disputed terms in the '172 Patent. Both parties filed opening claim-construction briefs, responses, and supplemental briefs. (Docket Entry Nos. 134, 135, 141, 142, 168, 171). The court held a Markman hearing on November 28, 2017, at which counsel argued their competing constructions. (Docket Entry Nos. 189, 188). Each party filed a posthearing brief. (Docket Entry Nos. 194, 195). The parties have also submitted multiple summary judgment filings on indefiniteness. Auto-Dril filed three motions for partial summary judgment on indefiniteness, the defendants responded, and Auto-Dril replied. (Docket Entry Nos. 175, 176, 179, 180, 182, 183, 184, 185, 186).

Based on the parties' claim-construction and summary judgment motions and briefs, counsels' arguments, the record, and the applicable law, the court construes the disputed claims as set out in detail below. Based on the construction, the court:

• denies Auto-Dril's first motion for partial summary judgment, (Docket Entry No. 175);
• grants Auto-Dril's second motion for partial summary judgment as to the claim terms "electronic weight-on-bit comparison means" and "programmable logic controller," (Docket Entry No. 176);
• denies Auto-Dril's second motion for partial summary judgment as to the claim terms "programmable control means," "motor control signal output means," and "signal output means," (Docket Entry No. 176); and
• denies Auto-Dril's third motion for partial summary judgment, (Docket Entry No. 179).

The court also sets a status and scheduling conference on Wednesday, April 18, 2018 at 9:00 a.m. The reasons for the court's claim-construction and summary judgment rulings are explained below.

I. Background

A. The parties

Auto-Dril is a corporation organized under Texas law and headquartered in Odessa, Texas. (Docket Entry No. 45 at 1). National Oilwell is a limited partnership organized under Delaware law and headquartered in Houston, Texas. Id. Canrig is a corporation organized under Delaware law, with its principal office in Houston. Id.

B. The infringement allegations

Auto-Dril alleges patent infringement, induced infringement, and contributory infringement under 35 U.S.C. § 271. Auto-Dril alleges that National Oilwell and Canrig infringed the '172 Patent by "making, using, selling, offering for sale, and/or importing in or into the United States, without *595authority, products that fall within the scope of one or more claims of the '172 Patent," including National Oilwell's "e-Wildcat" electronic autodrilling system and Canrig's "DrillSmart" automatic drilling system. Auto-Dril alleges that National Oilwell has known of the '172 Patent since at least 2010 and that Canrig has known of the Patent or has been "willfully blind" to its existence. Despite this knowledge, Auto-Dril alleges that the defendants have actively promoted sales of their infringing products to, and use by, third parties. Auto-Dril alleges that these third parties have used the defendants' technology to directly infringe one or more claims of the '172 Patent and that the defendants have sold automatic drilling-control system components and accessories to third parties that have been used with other components to assemble an apparatus that falls within and infringes the '172 Patent claims. (Docket Entry No. 21 at 2-4; Case 4:16-cv-293, Docket Entry No. 1 at 2-4). Auto-Dril also asserts claims for fraud and breach of contract against National Oilwell. (Docket Entry No. 21 at 9-11. Against both defendants, Auto-Dril seeks damages and an injunction prohibiting future direct infringement, inducement of infringement, and contributory infringement of the '172 Patent. (Docket Entry No. 21 at 12; Case 4:16-cv-293, Docket Entry No. 1 at 7).

C. The disputed terms

The parties dispute 17 terms in claims 1, 2, and 3.1 The meaning or definiteness of the following claim terms are disputed:

• "braking means" (claims 1 and 3);
• "electronic bit weight comparison means" (claims 1 and 2);
• "drill stem" (claim 1);
• "alternatively move said stem upward and downward" (claim 1);
• "a bit weight sensor" (claim 1);
• "a signal proportionate to any difference between said actual bit weight and said pre-selected bit weight value" (claim 1);
• "programmable control means" (claim 1);
• "in said upward or downward direction" (claim 1);
• "said signal" (claim 1);
• "programmable logic controller" (claim 2);
• "sensor means" (claim 3);
• "electronic weight-on-bit comparison means" (claim 3);

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Bluebook (online)
304 F. Supp. 3d 587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/auto-dril-inc-v-natl-oilwell-varco-lp-txsd-2018.