Automated Merchandising Systems Inc. v. Crane Co.

279 F.R.D. 366, 2011 U.S. Dist. LEXIS 122166, 2011 WL 5025907
CourtDistrict Court, N.D. West Virginia
DecidedOctober 21, 2011
DocketCivil Action Nos. 3:03-cv-88, 3:08-cv-97, 3:04-cv-80, 3:04-cv-75, 3:04-cv-48
StatusPublished

This text of 279 F.R.D. 366 (Automated Merchandising Systems Inc. v. Crane Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Automated Merchandising Systems Inc. v. Crane Co., 279 F.R.D. 366, 2011 U.S. Dist. LEXIS 122166, 2011 WL 5025907 (N.D.W. Va. 2011).

Opinion

MEMORANDUM OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO COMPEL

JAMES E. SEIBERT, United States Magistrate Judge.

This matter comes before the Court on Defendant Crane Co.’s (“Crane”) Motion to Compel Discovery from Plaintiff Automated Merchandising Systems (“AMS”) filed on September 19, 2011.1 The Court held an evidentiary hearing and argument on Defendant’s Motion on October 12, 2011. Defendant, Crane Co., appeared by John S. Torkelson, Esq., in person, Michael T. Smith, Esq., in person, and Jamil N. Alibhai, in person. Plaintiff appeared by Charles F. Printz, Jr., Esq., in person, and James D. Berquist, Esq., in person. At the hearing, the Court admitted the following exhibits submitted by Defendant: the affidavit of Sharon Shull as Exhibit one, Michele Riley’s expert report on damages as Exhibit two, and a patent license agreement as Exhibit three, each without objection. At Court also admitted the following exhibits submitted by the Plaintiff: a non-infringement claim chart as Exhibit one, a sales chart as Exhibit two, and a letter from Mr. Berquist to Mr. Alibhai and Mr. Torkelson as Exhibit three, each without objection. No testimony was taken nor was any other evidence adduced.

I. INTRODUCTION

A. Background

AMS filed this action on December 29, 2003 alleging patent infringement by Defendant, Crane Co., of four of Plaintiffs patents. A detailed history of this litigation is set forth in the Order denying Plaintiffs Motion to Lift Stay (Dkt. No. 185), which was entered February 2, 2009. This action was stayed by Order of Court entered on December 2, 2008 and the stay was subsequently lifted on April 5, 2011 (Dkt. No. 218). Crane filed the instant Motion to Compel on September 19, 2011 requesting the Court to compel AMS to provide complete answers to Crane’s discovery requests.

B. The Motion

1. Defendant’s Motion to Compel Discovery From Plaintiff Automated Merchandising Systems.2

C. Decision

Defendant’s Motion to Compel is hereby GRANTED, with the exception of Defendant’s request for paper copies of source code documents, because AMS failed to adequately respond to Defendant’s Request for Production of Documents Numbers 10, 12, 33, 38, 40, 42, 63, 76, 77, 79, 93, 101, 122, 133, 134,145,155, and 156, and to Interrogatories 20 and 21.

II. FACTS

AMS filed this action on December 29, 2003 alleging Defendant Crane Co. Infringed four of Plaintiffs patents in a lead case numbered 3:03-cv-88. Although the present litigation has a lengthy history, the salient facts for the present issue include the fact that this action was stayed by Order of Court entered on December 2, 2008 and that the stay was lifted on April 5, 2011 (Dkt. No. 218).

As discovery continued after the stay was lifted, certain discovery disputes arose and Crane filed the instant Motion to Compel on September 19, 2011, requesting the Court to compel AMS to provide complete answers to Crane’s discovery requests. On October 11, [369]*3692011, AMS filed its Opposition to Crane’s Motion to Compel Discovery.3 On October 11, 2011, Crane filed its Reply in Support of its Motion to Compel Discovery from Plaintiff. A hearing was held on the Motion on October 12, 2011, at the conclusion of which this Court advised the parties that an order would be forthcoming.

III. PLAINTIFF’S MOTION TO COMPEL

A. Contentions of the Parties

In its Motion, Defendant Crane requests the Court to compel certain discovery requests from AMS. Defendant requests that this Court compel Plaintiff to produce documents pursuant to Request for Production of Documents Numbers 33, 38, 40, 42, 63, 76, 77, 79, 93, and 101. Defendant argues these documents relate to patent licensing and settlement negotiations and are thus relevant to royalty rate calculations, because they are either not privileged or claims of privilege have been waived, and because AMS’s basis for withholding, a Rule 408 argument, is misplaced because the current dispute has arisen in a discovery context as opposed to in an evidentiary context.

Defendant also argues Plaintiff should be ordered to produce documents pursuant to Request for Production of Documents Numbers 155 and 156. More specifically, Crane asks this Court to compel production of paper copies of (1) the pic.h source file, (2) the source code for the main vending machine controller (VMC), and (3) the source code for Sensit I because they provide evidence of how AMS’s vend-sensing systems work, which is relevant to the Crane’s claim that AMS infringes its '014 Patent and to Crane’s defenses to AMS’s infringement allegations.

Defendant also requests the Court to compel Plaintiff to provide documents in response to Requests for Production of Documents 10 and 12. Defendant argues, more specifically, that the Court should compel the production of: (1) documents related to the testing of the Tal sensor by Ellenby, (2) documents related to Paul Mason’s testing and examination of the Tal sensor, (3) communications between Ellenby and AMS relating to the testing of the Tal sensor, and (4) communications between Ellenby and Mr. Berquist or other counsel relating to the testing of the Tal sensor. Defendant argues these should be produced because this information is relevant to Crane’s allegation of infringement of its '014 Patent.

Finally, Defendant contends the Court should compel AMS to respond to Interrogatories 20 and 21. Defendant argues that it needs responses to Interrogatory 20, which asks Plaintiff to identify each allegedly infringing product, device or apparatus, so that it can perform its damages analysis. As to Interrogatory 21, Crane argues AMS should be required to identify where each claim element is located in its vending machines and whether the claim element literally infringes or infringes based on the doctrine of the equivalents so that it can prepare its defense.

In opposition, as to the documents regarding settlement and licensing negotiations Crane requested, AMS contends Crane waived any demand for settlement negotiation documents because it failed to make a demand for the disputed discovery within thirty days. In addition, AMS argues that the settlement discussion materials are irrelevant and protected. Plaintiff argues these are irrelevant because the settlement agreement documents were created years after Crane’s infringement began, so they are not relevant to the computation of royalty rates. Plaintiff also argues that under Goodyear settlement discussion materials are protected. Finally, Plaintiff argues that its expert did not rely on the terms of any of the settlement agreements, but rather used licenses negotiated at arms’ length in determining the range for a hypothetical negotiation.

In regard to Requests for Production of Documents 155 and 156, Plaintiff argues that it does not have paper copies of the source code for the pic.h file or the main VMC, because these are only in Ellenby’s posses[370]*370sion. Plaintiff also argues that it only objects to the medium in which the source code should be produced to Crane, it does not object to the production itself.

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Bluebook (online)
279 F.R.D. 366, 2011 U.S. Dist. LEXIS 122166, 2011 WL 5025907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/automated-merchandising-systems-inc-v-crane-co-wvnd-2011.