Avocent Redmond Corp. v. United States

93 Fed. Cl. 399, 2010 U.S. Claims LEXIS 436, 2010 WL 2640631
CourtUnited States Court of Federal Claims
DecidedJune 30, 2010
DocketNo. 08-69C
StatusPublished
Cited by5 cases

This text of 93 Fed. Cl. 399 (Avocent Redmond Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Avocent Redmond Corp. v. United States, 93 Fed. Cl. 399, 2010 U.S. Claims LEXIS 436, 2010 WL 2640631 (uscfc 2010).

Opinion

OPINION

MARGOLIS, Senior Judge.

The parties’ cross-motions for summary judgment regarding the affirmative defense of laches are before the Court. Oral argument was held in court on May 26, 2010. Because material facts remain in dispute, Avocent Redmond’s Motion for Partial Summary Judgment of No Laches, filed March 12, 2010, is DENIED; Rose Electronics’ Motion for Summary Judgment Based on Lach-es, filed March 26, 2010, is DENIED; and the United States’ Cross-Motion for Laches, filed April 12, 2010, is DENIED.

FACTUAL BACKGROUND

This is a patent infringement action brought under 28 U.S.C. § 1498.1 Plaintiff Avocent Redmond Corp. (“Avocent”) is seeking to recover just compensation for the government’s unauthorized taking and use of the inventions claimed in the 5,884,096 (“'096 patent”) and 6,112,264 (“'264 patent”).2 See Motorola, Inc. v. United States, 729 F.2d 765, 768 (Fed.Cir.1984) (theoretical basis for recovery is the doctrine of eminent domain). As part of its defense, defendant United States has asserted the affirmative defense of laches, as has defendant-intervenor Rose Electronics (“Rose”).

[402]*402In its motion for summary judgment of no laches, Avocent contends that laches is not available to the United States because it is a limitation on damages according to the Federal Circuit’s decision in A.C. Aukerman Co. v. Chaides Construction Co., 960 F.2d 1020 (Fed.Cir.1992) (en banc). Avocent also argues that even if laches is available to the United States, the delay should be measured from February 8, 2007, the date Rose asserted 28 U.S.C. § 1498 as a defense in its answer in Avocent Redmond v. Rose Electronics, No. C06-1711, 2007 WL 4892714, the Seattle district court ease. Avocent also argues that, in any event, it has not unreasonably or inexcusably delayed because it has been involved in other litigation protecting its patents. Avocent also disputes that the United States and Rose have suffered evi-dentiary prejudice from any delay.

Rose argues that laches is available to the government under Aukerman, because lach-es is a defense, distinguished from a limitation on damages. Rose also argues that depositions of Avocent representatives show that Avocent believed the United States was purchasing the accused devices as far back as 1997 but failed to sue or notify the United States at anytime prior to filing suit in this Court in 2008. Rose contends that Avocent’s delay in filing is not excused by the other litigation involving the same patents and also asserts that the delay resulted in prejudice because the United States has accrued more liability from on-going purchases and certain items of evidence important to the United States’ defense of invalidity have been lost or destroyed.

Similarly, the United States contends that Avocent waited to file the present complaint for more than six years from the date it knew that the accused KVM switches were first obtained by the government and that evidence pertaining to the validity of the patents was lost during that time. Specifically, the United States argues that the defense of laches is available to it because it is a partial defense and not a limitation on damages; delay is not measured from the date that Rose pled 28 U.S.C. § 1498 but rather when Avocent learned of the infringing activity; and Avocent’s other litigation obligations do not excuse its delay in bringing suit against the United States because the United States was never notified regarding its alleged infringement. The United States identifies the same alleged economic and evidentiary prejudice as was claimed by Rose.

DISCUSSION

Summary judgment is appropriate when there is no genuine issue of material fact, and the moving party is entitled to judgment as a matter of law. See RCFC 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). On summary judgment, the evidence must be viewed in the light most favorable to the party opposing the motion, with doubts resolved in favor of the nonmovant. Crown Ops. Intern., Ltd. v. Solutia Inc., 289 F.3d 1367, 1375 (Fed.Cir.2002). The party seeking summary judgment bears the burden of demonstrating the absence of a genuine issue of material fact. Celotex Corp., 477 U.S. at 323, 106 S.Ct. 2548. If the moving party satisfies its initial burden, the opposing party must “set out specific facts showing a genuine issue for trial.” RCFC 56(e)(2); see Crown Ops., 289 F.3d at 1375. Issues of fact are genuine only if the evidence is such that a reasonable factfinder could return a verdict for the nonmoving party. Id. “A disputed fact is material if it might affect the outcome of the suit such that a finding of that fact is necessary and relevant to the proceeding.” Id.

A. The availability of laches

Avocent argues that laches is not available to the United States as a defense because it is a limitation on damages. Lach-es is “the neglect or delay in bringing suit to remedy an alleged wrong, which taken together with lapse of time and other circumstances, causes prejudice to the adverse party and operates as an equitable bar [to suit].” Aukerman, 960 F.2d at 1028-29. Contrary to Avocent’s arguments, case law makes clear that laches is available to the United States as a partial defense to a suit brought under § 1498.

[403]*40335 U.S.C. § 282 governs defenses in a patent infringement ease, and although not listed, laches is nonetheless cognizable under § 282 as an equitable defense. Aukerman, 960 F.2d at 1029 (noting that the Section Commentary explicitly retains the affirmative defense of laches and characterizing laches as a “defense”). In a § 1498 suit, the United States may avail itself of any defense that is available to a private party. Pratt & Whitney Canada, Inc. v. United States, 12 Cl.Ct. 221, 222 (1987) (citing 28 U.S.C. § 1498 Revisor’s Notes at 467 (1973)); see Motorola, 729 F.2d at 770 (§ 282 defenses are available to the government). Accordingly, laches is available to the government as a defense in a patent infringement action. Pratt & Whitney, 12 Cl.Ct. at 222 (so holding); see, e.g., Raitport v. United States, 33 Fed.Cl. 155, 159-63 (1995), aff'd 74 F.3d 1259, 1996 WL 15909 (Fed.Cir.1996) (unpublished) (patent suit against government barred by laches).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

TRAVERS v. FEDEX CORPORATION
E.D. Pennsylvania, 2021
Katzin v. United States
120 Fed. Cl. 199 (Federal Claims, 2015)
Lamson v. United States
117 Fed. Cl. 755 (Federal Claims, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
93 Fed. Cl. 399, 2010 U.S. Claims LEXIS 436, 2010 WL 2640631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/avocent-redmond-corp-v-united-states-uscfc-2010.