Canon, Inc. v. Color Imaging, Inc.

227 F. Supp. 3d 1303, 2016 U.S. Dist. LEXIS 185237, 2016 WL 8578002
CourtDistrict Court, N.D. Georgia
DecidedDecember 14, 2016
DocketCIVIL ACTION NO. 1:11-CV-3855-AT
StatusPublished
Cited by3 cases

This text of 227 F. Supp. 3d 1303 (Canon, Inc. v. Color Imaging, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Canon, Inc. v. Color Imaging, Inc., 227 F. Supp. 3d 1303, 2016 U.S. Dist. LEXIS 185237, 2016 WL 8578002 (N.D. Ga. 2016).

Opinion

ORDER

Amy Totenberg, United States District Judge

This matter is before the Court on Plaintiffs five motions in limine [Doc. 483]. Plaintiff seeks to exclude (1) arguments or evidence of the patent or patent application belonging to Defendant General Plastic Industrial Co., Ltd. (“GPI”) and allegedly covering the accused toner bottles, including U.S. Patent No. 8,422,910 (“the ’910 patent”); (2) arguments or evidence of either Defendant seeking legal advice, or of either Defendant’s communications with legal counsel, relating to the accused products or ’910 patent, and of GPI’s consideration of a Chinese translation of claims within U.S. Patent No. 7,647,012 (“the ’012 patent”); (3) arguments or evidence regarding the “radially inward” non-infringement theory; (4) arguments or evidence regarding the “free end” non-infringement theory; and (5) Dr. Springett’s expert testimony on the ultimate conclusions of exhaustion, implied license, and repair. The Court addresses each of these motions in limine below.

I. Discussion of Plaintiffs Motions in Limine

A. Arguments or Evidence of GPI’s Patent or Patent Application Allegedly Covering the Accused Toner Bottles

Plaintiff seeks to prevent Defendants from introducing arguments or evidence of any GPI patent or patent application, including the ’910 patent, that allegedly covers the accused toner bottles. Plaintiff contends that such arguments or evidence are irrelevant and likely to mislead the jury because the existence of Defendants’ own patent has no bearing on whether Defendants literally infringed Plaintiffs patent. Plaintiff also contends that Defendants’ patent is irrelevant to the issue of willfulness, because Defendants’ patent issued after they had already been engaging in infringing activities. In addition, Plaintiff states that Defendants have shown no evidence of what the ’910 patent actually covers, and that Defendants have failed to timely disclose their intent to rely on such evidence to rebut Plaintiffs indirect infringement and willfulness claims.

Defendants counter that they are not introducing the ’910 patent to show lack of literal infringement of the ’012 patent. Rather, they are introducing it to show Defendants’ lack of willful infringement— in particular, that GPI has a corporate culture of innovation. (Defs.’ Opposition, at 2-4.) Defendants also counter that Plaintiff knew about the ’910 patent for years and Defendants’ introduction of it now is harmless. (Id. at 7-12.)

The Court agrees with Defendants that evidence of the ’910 patent and patent application could potentially be rel[1306]*1306evant to the issue of 'willful infringement of the ’012 patent. See Abbott Point of Care, Inc. v. Epocal, Inc., 868 F,Supp.2d 1310, 1328 (N.D. Ala. 2012) (finding that although a defendant’s own patent cannot be a defense to patent infringement, it is relevant to claims of willfulness) (citing to King Instrument Corp. v. Otari Corp., 767 F.2d 853, 867 (Fed. Cir. 1985) (abrogated on other grounds)). “[T]here cannot be hard and fast per se rules” in the willfulness context. Rolls-Royce Ltd. v. GTE Valeron Corp., 800 F.2d 1101, 1110 (Fed. Cir. 1986). Willfulness is a particularly fact-based inquiry, where a court must consider the “totality of the circumstances” in making a determination. King Instrument Corp. v. Otari Corp., 767 F.2d 853, 860 (Fed. Cir. 1985) (abrogated on other grounds); Gustafson, Inc. v. Intersystems Indus. Prod., Inc., 897 F.2d 508, 510 (Fed. Cir. 1990). Courts have considered several factors in determining whether infringement was willful, including whether the alleged infringer reasonably believed its activities were patentably distinct, whether the alleged infringer attempted to design around the patent, and whether the alleged infringer mounted good faith, non-frivolous defenses to the existence of infringement. See, e.g., Rolls-Royce, 800 F.2d at 1110; King Instrument Corp., 767 F.2d at 867; Union Carbide Corp. v. Tarancon Corp., 742 F.Supp. 1565, 1577 (N.D. Ga. 1990).

Plaintiff argues, based, on Rolls-Royce Ltd. v. GTE Valeron Corp., that the ’910 patent evidence is per se not probative of willfulness because the ’910 patent issued after Defendants’ infringing activities. 800 F.2d at 1110 n.9. In Rolls-Royce, the Federal Circuit reviewed . a district court’s finding that the defendant GTE had not willfully infringed the plaintiffs patent based on evidence showing the defendant tried to design around the patent and did not intentionally copy the patent. Id. at 1110. The Federal Circuit upheld the district court’s decision, stating that “the intent-implicating question such as willfulness[ ] is peculiarly within the province of the fact finder that observed the witnesses,” and it was not error for the district court to find no willfulness based on all the evidence before it. Id. In reaching this decision, the Federal Circuit acknowledged in a footnote GTE’s argument that the district court could have inferred that GTE reasonably believed it was not infringing because of its own separate patent on the accused device. Id. at n.9. The Federal Circuit rejected this argument, on the grounds that GTE’s own patent did not issue until nearly two years after its infringing activities began. Id, Plaintiff points to this case as holding that a defendant’s own patent is irrelevant to willfulness if the patent issued after the defendant’s infringing activities.

However, the Federal Circuit in Rolls-Royce did not establish a firm rule when it addressed GTE’s argument about its own patent, especially in light of its statement that there are no “hard and fast per' se rules” in the willfulness context. Id, The Federal Circuit emphasized it was not its place to reweigh the evidence presented to the district court. It stated that the district court must make a case-by-case determination, “considering the evidence before it and the testimony and demeanor of the witnesses,” as to whether the accused in-fringer acted willfully. Id. While the Federal Circuit rejected GTE’s argument about possible inferences from its own patent—based on the fact that GTE obtained the patent almost two years after the infringing conduct at issue—this was solely an evidentiary footnote to the Federal Circuit’s decision. The Federal Circuit concluded that the totality of the evidence actually established that GTE did not engage in willful infringement.

[1307]*1307Defendants’ argument as to the ’910 patent’s relevance differs somewhat from the argument made in Rolls-Royce. Defendants assert that their development of the ’910 patent, in combination with other evidence of their overall business focus on technology and patent development, will demonstrate GPI’s general corporate culture as an innovator and refute Plaintiffs contention that GPI is a rank patent “pirate.” (Doc.

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227 F. Supp. 3d 1303, 2016 U.S. Dist. LEXIS 185237, 2016 WL 8578002, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canon-inc-v-color-imaging-inc-gand-2016.