B.E. Meyers & Co. v. United States

47 Fed. Cl. 375, 2000 U.S. Claims LEXIS 167, 2000 WL 1207177
United States Court of Federal Claims·Decided August 21, 2000·No. No. 97-120C·Published·Cited by 2 cases

Opinion

OPINION

BRUGGINK, Judge.

This action is brought by plaintiff1 pursuant to 28 U.S.C. § 1498(a) (1994). Plaintiff alleges that certain infrared illuminators purchased by defendant from non-party Insight Technology Corporation infringe on four of plaintiffs patents. Currently pending are defendant’s motion in limine to exclude evidence of trade secrets, Insight’s motion for a protective order, and defendant’s motion to compel production of plaintiffs documents and appendix.

The motions are fully briefed, and argument is deemed unnecessary. For the following reasons, defendant’s motion in limine is granted, Insight’s motion for a protective order is denied, and defendant’s motion to compel is granted in part and denied in part.

BACKGROUND2

Plaintiff seeks damages from the United States based on alleged infringement of four of its patents for certain night vision devices. These devices, referred to as “infrared illuminators,” are designed to brighten the low-light level images seen by night vision equipment. Plaintiffs original illuminator patent issued in 1987, and plaintiff obtained a reissue patent in 1991. The three other patents claimed by plaintiff in the suit were also issued in 1991, and all three were based on a common application filed in early 1990.

After obtaining its patents, plaintiff continued to fine-tune its devices, and in 1994 plaintiff began discussions with the Navy regarding the Navy’s possible interest in purchasing a number of plaintiffs infrared illuminators. The parties’ discussions focused largely on a night vision telescope or weapon sight generally referred to by the plaintiff as the AN/TVS-5. Naval personnel visited plaintiffs manufacturing facility in June 1994, and prior to touring the facility the two Navy representatives signed a standard BEM document entitled “Non-Disclosure Agreement.” Following this visit, contacts between plaintiff and the Navy continued, culminating in the Navy’s decision to purchase several TVS-5s with laser illuminator systems. Plaintiff referred to the complete product offered for sale to the Navy as the [377] TVS-5 Super-Biocular Laser Illuminator System (“TSLIS”).

In September 1994, the Navy executed a sole source contract for the procurement of five TSLISs from BEM. The contract called for BEM to execute certain modifications to its standard TSLIS, including use of a more advanced image intensifier tube, inclusion of a mounting bracket for mounting the TSLIS onto a machine gun, and inclusion of an extra large eyepiece called the “Super Biocular” that is attached to the TVS-5 to permit easy viewing of the night scene by the illuminator’s operator. Another sole source contract was executed in early 1995, resulting in the purchase of seven additional TSLISs from BEM.

Also in early 1995, the Navy began preparing draft specifications that it intended to use to facilitate competitive procurement of future infrared illuminators. Plaintiff received a copy of the draft specifications in July 1995, and returned the draft along with plaintiffs suggestions shortly thereafter. In mid-1996, the Navy issued solicitation No. N00164-96R-0003, which contained performance specifications for an Advanced Crew Served Weapon Sight/Laser Illuminator System (“ACSWS/LIS”). It was during the preaward stage of this procurement that plaintiff notified the Navy of its belief that the performance specifications listed in the solicitation were directed towards a device that would infringe plaintiffs patents and proprietary designs. Both plaintiff and non-party Insight Technology submitted proposals. The Navy awarded the contract to Insight in April 1997. Plaintiff filed suit in this court on February 25, 1997, seeking damages for infringement of its patents.

DISCUSSION

Defendant’s motion in limine

Defendant moves to exclude evidence of trade secrets alleged to have been misappropriated as a result of the specifications followed by Insight in manufacturing illuminators pursuant to its 1997 contract with the Navy. Defendant’s belief that plaintiff will seek to introduce evidence of misappropriated trade secrets is based on plaintiffs responses to defendant’s interrogatories. Defendant inquired as to whether plaintiff contends that defendant improperly disseminated plaintiffs trade secrets, and plaintiff responded in the affirmative:

The trade secrets [which were improperly disseminated] consist of the proprietary know-how and concepts disclosed in the Performance Specifications for the development and manufacture of the ACSWS/ LIS systems described in government contract numbers, N00164-97-D-0008 (PS/94/8852/004 & PS/95/8852/008), N00104-94-C-K840 and N00104-95-C-K812.3

In response to another interrogatory, plaintiff also provided specific examples of trade secrets it contends were improperly disseminated. This list of trade secrets is drawn from a 1994 letter sent by plaintiff to one of the Navy representatives involved in the Navy’s early efforts to procure illuminators from BEM.

Along with the interrogatories described above, defendant inquired as to plaintiffs views on why the alleged improper dissemination of trade secrets was relevant to the patent infringement issues in the current action. Plaintiffs initial contention, in response to defendant’s interrogatory, was that “The existence, procurement, utilization and dissemination of Meyers’ trade secrets by the Government ... rebuts Defendant’s affirmative defenses of obviousness and prior art with regard to invalidity and un-enforeeability of the patents at issue. Secondary considerations of non-obviousness are highly relevant to those allegations.” Plaintiffs response to defendant’s motion in limine offers two additional arguments in support of relevance. The first is that proof of improper dissemination of plaintiffs trade secrets is relevant to proving that the government copied plaintiffs device and thus infringed plaintiffs patents. The second is that copying of [378] plaintiffs trade secrets can be evidence of intentional infringement, which plaintiff argues is relevant to the possibility of an award of attorney’s fees under 28 U.S.C. § 1498(a).

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B.E. Meyers & Co. v. United States, 47 Fed. Cl. 375, 2000 U.S. Claims LEXIS 167, 2000 WL 1207177 (uscfc 2000).

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