Automated Layout Technologies, LLC v. Precision Steel Systems, LLC, et al.

District Court, D. Nebraska·Decided September 2, 2026·No. 4:20-cv-03127·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEBRASKA

AUTOMATED LAYOUT TECHNOLOGIES, LLC,

Plaintiff and counterclaim defendant,

vs.

PRECISION STEEL SYSTEMS, LLC, 4:20-CV-3127 et al.,

Defendants, MEMORANDUM AND ORDER ON counterclaimants, CLAIM CONSTRUCTION and third-party plaintiffs,

vs.

STEPHEN LAWRENCE CHASSE and JOHN MICHAEL EVANS,

Third-party defendants.

This action is before the court to resolve issues of claim construction after a hearing pursuant to Markman v. Westview Instruments, Inc., 517 U.S. 370 (1996). The defendants—Precision Steel Systems, Donner Steel Works, and Nicholas Donner—have asked the Court to construe three sets of claim terms in the '588 patent: "adjustors" and its related terms and phrases, "ink dispenser" or "device" and their related terms and phrases, and "controller" or "control panel" and their related terms and phrases. Filing 195 at 7. Similarly, the defendants have identified three sets of claim terms in the '826 patent that they think the Court should construe: "marking device" and its related terms and phrases, "ink dispenser" and its related terms and phrases, and "controller" and its related terms and phrases. Filing 195 at 25-26. The plaintiff, Automated Layout Technologies ("ALT"), submits that none of those terms require construction—that it's unnecessary to construe terms present in the allegedly infringing product, and that the ordinary and customary meaning of the claim terms are sufficient in any event. See filing 231 at 1-3. The Court has carefully reviewed the parties' submissions and pleadings, reviewed the relevant caselaw, and makes the following findings regarding claim construction. I. EVIDENTIARY OBJECTIONS Before reaching the claim construction, however, there are some preliminary evidentiary issues that must be addressed. First, the defendants object to the opinions of Mark Webster, one of ALT's experts. See filing 219; filing 230 at 2-4; filing 250; filing 252 at 8-16. The defendants also object to the opinions of Stephen Chasse. See filing 201 at 3-4; filing 230 at 4. For its part, ALT objects to evidence adduced from Donald Volentine and Robert Gaskins. See filing 203 at 34-37.

1. MARK WEBSTER The defendants' motion to exclude (filing 250)1 asserts that Webster's testimony should be excluded because of his alleged failure to sufficiently

1 The motion to exclude was filed well after the claim construction hearing, but the Court finds one basis for the subsequently filed motion to be relevant to the weight the Court gives Webster's testimony as it relates to claim construction—so, the Court discusses this aspect of the defendants' motion here. explain "the ordinary level of skill in the art." Filing 252 at 7-17. It matters because generally, as will be explained in more detail below, a claim term is given the ordinary and customary meaning as understood by a person of ordinary skill in the art at the time of invention. InTouch Techs., Inc. v. VGO Commun., Inc., 751 F.3d 1327, 1339 (Fed. Cir. 2014); Sundance, Inc. v. DeMonte Fabricating Ltd., 550 F.3d 1356, 1361 n.3 (Fed. Cir. 2008). "Here," the defendants claim, "Webster has failed to offer a sufficient explanation of the level of skill in the art, despite his admitted reliance on the perspective of a hypothetical [person of ordinary skill in the art]. His opinion merely recites the factors that he understands are relevant to that determination, without actually applying them." Filing 252 at 11. In his expert report, Webster said that "[t]he level of ordinary skill in the art here is experience with metal railing assembly, including layouts and understanding drawings, and [computer numerical control] machine and computer controlled positioning machine experience." Filing 254-1 at 17. Webster's opinion, the defendants argue, is "devoid of any description of the education or experience required of a [person of ordinary skill in the art]." See filing 252 at 13 n. 3.2 Factors that may be considered in determining level of ordinary skill in the art include the: (1) educational level of the inventor; (2) type of problems encountered in the art; (3) prior art solutions to those problems; (4) rapidity

2 The Court does not understand the defendants to be objecting to the sufficiency of Webster's own experience as a mechanical engineer to establish foundation for his opinions. See filing 252 at 2-3; see also filing 254-1 at 8-10 (describing Webster's background and experience); Kyocera Senco Indus. Tools Inc. v. Intl. Trade Comm'n, 22 F.4th 1369, 1376-77 (Fed. Cir. 2022) (to offer expert testimony from perspective of a skilled artisan in a patent case, witness must at least have ordinary skill in the art). with which innovations are made; (5) sophistication of the technology; and (6) educational level of active workers in the field. Daiichi Sankyo Co. v. Apotex, Inc., 501 F.3d 1254, 1256 (Fed. Cir. 2007).3 Webster's declaration substantially recites these factors, and Webster says he considered them. Filing 204-1 at 6. But it's not clear how. In his declaration, Webster describes himself as "both an expert and a person of at least ordinary skill in the art in the field of the inventions." Filing 204-1 at 3. It's difficult to evaluate his opinions without knowing the difference—that is, where the line is drawn between someone with ordinary skill in the art and someone with extraordinary skill in the art. And Webster's deposition testimony didn't help: After an extensive and largely fruitless colloquy on the subject, Webster ended up at "the person of ordinary skill in this art would be someone who has the experience and the knowledge to be able to combine the different elements of the patent or the different components of the patent." Filing 254-5 at 92-93.4 But that just creates a tautology: When the question is whether and how a person of ordinary skill in the art would understand patent language, it's hard for the Court to credit Webster's opinion on that question when his definition of "person of ordinary skill in the art" is essentially "someone who

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Automated Layout Technologies, LLC v. Precision Steel Systems, LLC, et al., (D. Neb. 2026).

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