Boost Oxygen, LLC v. Oxygen Plus, Inc.

CourtDistrict Court, D. Minnesota
DecidedAugust 10, 2020
Docket0:17-cv-05004
StatusUnknown

This text of Boost Oxygen, LLC v. Oxygen Plus, Inc. (Boost Oxygen, LLC v. Oxygen Plus, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boost Oxygen, LLC v. Oxygen Plus, Inc., (mnd 2020).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

BOOST OXYGEN, LLC, a Connecticut Case No. 17‐CV‐5004 (PJS/DTS) Limited Liability Company, Plaintiff, v. ORDER OXYGEN PLUS, INC., a Minnesota Corporation, Defendant.

Robert Neuner, HOFFMANN & BARON, LLP; Barry M. Landy, Esther Agbaje, and Jan M. Conlin, CIRESI CONLIN LLP, for plaintiff. Loren L. Hansen, Brian A. Dillon, and Dion Farganis, LATHROP GPM LLP, for defendant. In November 2017, plaintiff Boost Oxygen, LLC (“Boost”) brought suit against defendant Oxygen Plus, Inc. (“Oxygen Plus”) for infringement of a design patent and trade dress. The lawsuit was meritless, as Oxygen Plus’s product clearly did not infringe Boost’s patent or trade dress. But Oxygen Plus did not have a lot of money to

spend on lawyers, and the lawyer whom it did hire apparently gave it questionable advice.1 Based on that questionable advice, Oxygen Plus entered into a settlement agreement and consent judgment. Oxygen Plus agreed that its product infringed

1To be clear: The questionable advice came from a former attorney, not from Lathrop GPM, which now represents Oxygen Plus. Boost’s patent and trade dress (even though it didn’t), and Oxygen Plus agreed to redesign its product. Oxygen Plus also agreed to be enjoined from further infringement

of Boost’s patent or trade dress. Oxygen Plus redesigned its product and brought it to market. The redesigned product is not much different from the original product; indeed, on quick glance, it is

difficult to tell the two apart. Boost now alleges that the redesigned product infringes its patent and trade dress, and it asks this Court to hold Oxygen Plus in contempt. Because the consent judgment orders Oxygen Plus not to infringe Boost’s patent or trade dress—and because Oxygen Plus’s redesigned product does not infringe Boost’s

patent or trade dress—the Court declines to hold Oxygen Plus in contempt. I. BACKGROUND Boost and Oxygen Plus both sell lightweight, portable oxygen canisters. ECF

No. 1 at ¶¶ 1, 3. The oxygen canisters can serve as a source of supplemental oxygen for runners, hikers, and others engaged in intense aerobic activity. ECF No. 79‐3 at 39. The oxygen canisters consist of two parts: (1) a tubular portion in which oxygen is stored and (2) a “mask” that attaches to the top of the tubular portion and allows the user to

breathe in oxygen. ECF No. 1 at ¶ 1. This lawsuit concerns masks.

-2- Boost owns U.S. Design Patent D610,250 (“the ‘250 patent”), which covers a design for an oxygen-canister mask. ECF No. 28 at 1;* ECF No. 1-1. Boost sued Oxygen Plus alleging (among other things) that one of Oxygen Plus’s masks (the “O+ Biggi mask”) infringed the ‘250 patent and Boost’s trade dress. See ECF No. 1. Depicted below (from left to right) are Boost’s patented mask design, Boost’s commercial embodiment of that design, and Oxygen Plus’s allegedly infringing O+ Biggi mask:

Oxygen Plus decided that, ’[r]ather than spend a small fortune on attorneys,” it would enter into a settlement agreement and consent judgment. ECF No. 80-6 at 3. As

part of the deal, Oxygen Plus agreed that its O+ Biggi mask infringed the ‘250 patent and Boost’s trade dress. ECF No. 28 at 1, 3. Oxygen Plus also “agreed to change the design of the O+ Biggi mask in a way that avoids infringement of [the] ‘250 Patent and the trade dress of Boost Oxygen’s oxygen canisters.” Id. at 3. Oxygen Plus was

*The Court cites to this document’s internal pagination. -3-

“enjoined from further infringing the ‘250 Patent”and from using any “product design that is confusingly similar to the trade dress of Boost Oxygen’s oxygen mask.” Id. at 2,

3. There was one exception: Oxygen Plus was granted a “limited term license” to sell a limited quantity of its O+ Biggi masks for a limited amount of time, as long as it paid substantial royalties to Boost. Id. at 2.

Oxygen Plus was not well advised during the underlying litigation. Had Oxygen Plus filed a motion to dismiss, that motion would almost certainly have been granted, as Oxygen Plus’s original O+ Biggi mask differed in significant respects from the patented design. Instead of moving to dismiss the lawsuit, however, Oxygen Plus

entered into a consent judgment in which it agreed that its O+ Biggi mask infringed the ‘250 patent and Boost’s trade dress. Oxygen Plus also agreed to make royalty payments to Boost totaling $150,000—money that could have been used to pay an attorney to

bring a motion to dismiss. ECF No. 28 at 2; ECF No. 82 at 1.3 Oxygen Plus further agreed to redesign its O+ Biggi mask—and it did so without meaningful guidance or protection. ECF No. 28 at 3. The consent judgment provided that:

Oxygen Plus has agreed to change the design of the O+ Biggi mask in a way that avoids infringement of Boost Oxygen’s ‘250 Patent and the trade dress of Boost Oxygen’s oxygen canisters. A rough sketch of the redesigned O+ Biggi 3The Court cites to this document’s internal pagination. -4- mask is shown in Exhibit B. It is anticipated that in its final form, the redesigned O+ Biggi mask will look even more like the prior art and less like Boost Oxygen’s patented mask design. With this understanding, Boost Oxygen has agreed that the redesigned mask would not infringe its ‘250 Patent and/or its trade dress. ECF No. 28 at 3. Curiously, however, the “rough sketch of the redesigned O+ Biggi mask” (which appears below) consisted of a single sketch, from a single angle, which essentially depicted the original O+ Biggi mask with slightly more rounded sides. Id.

at Ex. B.

ESSE □□□□□□□□□□□□□□□□□□□□□□□

Basically, then, Oxygen Plus agreed to make a slight change to its O+ Biggi mask—and vaguely said that it “anticipated” making other (unspecified) changes that would cause the redesigned mask to look more like (unspecified) prior art—and Boost agreed that this redesigned mask would not infringe the ‘250 patent or its trade dress. As promised, Oxygen Plus redesigned its mask, and at considerable expense. ECF No. 40-1. Oxygen Plus made the sides of the redesigned mask slightly more rounded, precisely as called for by the rough sketch. Oxygen Plus also made a couple

_5-

of other minor changes. On the whole, though, the redesigned O+ Biggi mask looks a lot like the original O+ Biggi mask. The two masks appear below, with the original mask on the left and the redesigned mask on the right.

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Boost now alleges that Oxygen Plus has violated the consent judgment by continuing to infringe Boost’s patent and trade dress. Boost asks the Court to hold Oxygen Plus in contempt.

-6-

II. ANALYSIS A. Contempt for Continued Patent Infringement

Boost asks that Oxygen Plus be held in contempt for continuing to infringe the ‘250 patent after the entry of a permanent injunction barring such infringement. Under TiVo Inc. v. EchoStar Corp., Boost “must prove both that [1] the newly accused product is

not more than colorably different from the product found to infringe and that [2] the newly accused product actually infringes.” 646 F.3d 869, 882 (Fed. Cir. 2011) (en banc). Both elements must be proven by clear‐and‐convincing evidence. Id. at 883; see also Acosta v. La Piedad Corp., 894 F.3d 947, 951 (8th Cir. 2018).

The parties agree that the redesigned O+ Biggi mask is not more than colorably different from the original O+ Biggi mask. The question, then, is whether the redesigned mask “actually infringes” the ‘250 patent. TiVo Inc., 646 F.3d at 882. The

parties disagree about whether Oxygen Plus is collaterally estopped from arguing that its redesigned mask does not infringe the ‘250 patent.

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Boost Oxygen, LLC v. Oxygen Plus, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/boost-oxygen-llc-v-oxygen-plus-inc-mnd-2020.