Capstan AG Systems, Inc. v. Raven Industries, Inc.

228 F. Supp. 3d 1235, 2017 U.S. Dist. LEXIS 4349, 2017 WL 106839
CourtDistrict Court, D. Kansas
DecidedJanuary 11, 2017
DocketCase No. 16-cv-04132-DDC-KGS
StatusPublished
Cited by4 cases

This text of 228 F. Supp. 3d 1235 (Capstan AG Systems, Inc. v. Raven Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Capstan AG Systems, Inc. v. Raven Industries, Inc., 228 F. Supp. 3d 1235, 2017 U.S. Dist. LEXIS 4349, 2017 WL 106839 (D. Kan. 2017).

Opinion

MEMORANDUM AND ORDER

Daniel D. Crabtree, United States District Judge

On August 1, 2016, plaintiff Capstan AG Systems, Inc. filed a Complaint, alleging that defendants Raven Industries, Inc. and CNH Industrial America, LLC (collectively “defendants”) have infringed on two of plaintiffs patents. Doc. 1. On August 23, 2016, defendants filed a Motion to Dismiss (Doc. 18). In their Motion, defendants assert that the court should dismiss the Complaint because plaintiffs patents are invalid under 35 U.S.C. § 101. Defendants also request oral argument. After considering the parties’ submissions, the court finds that oral argument would not inform its decision materially. The court thus denies the request for oral argument. And, for reasons explained below, the court denies defendant’s Motion to Dismiss.

I. Background

Because defendants bring this motion under Federal Rule of Civil Procedure 12(b)(6), the court takes these facts from plaintiffs Complaint and the two exhibits attached to it. See Smith v. United States, 561 F.3d 1090, 1098 (10th Cir. 2009).

Plaintiff is a Kansas corporation that began as a start-up in 1992. Today, plaintiff creates and sells agricultural products, [1238]*1238specializing in agrochemical1 spraying applications. Plaintiff “is responsible for introducing pulse-width-modulated (PWM) spraying technology to the agricultural market.” Doc. 1 ¶ 13. PWM is a technique used to control the amount of power provided to electronic devices. See U.S. Patent No. 8,191,795 at 1:16-19, Doc. 1-1 at 17 [hereinafter ’795 Patent].2 For instance, the valves connected to the spray nozzles in agrochemical spraying systems use PWM control to vary spray-rates in different sections of the system, which allows the nozzles to take turns spraying the chemical. Doc. 1 ¶¶ 13-14; ’795 Patent at 1:16-27; Doc. 28 at 7.3 So, PWM control allows farmers to reduce overlap when applying agrochemicals. ’795 Patent at 1:18-19, 6:15-26; Doc. 1 ¶ 14. By reducing overlap, farmers spray more precisely and thus are able to reduce waste and misapplication, which in turn increases crop yields and reduces costs. Doc. 28 at 7; ■ see also ’795 Patent at 6:15-26 (discussing “the prior art[’s]” ability to reduce overlap).

In 1996, plaintiff began selling its first PWM sprayer system. Plaintiffs PWM technology soon caught the attention of Tyler Industries, a sprayer and fertilizer application company. Plaintiff and Tyler entered into an agreement, making Tyler the principal commercial distributor of plaintiffs PWM technology. The pair named them joint-PWM product “AIM Command,” and plaintiffs PWM technology soon became the industry standard.

Sometime later, Case Corporation purchased Tyler. Case Corporation later became CNH Industrial America, LLC (“CNH”)—one of the two- defendants sued here. These ownership and name changes notwithstanding, plaintiff continued to hon- or its agreement with Tyler, and both Case and CNH sold plaintiffs PWM system on their sprayers.

In 2011, plaintiff created a new sprayer technology—PinPoint®. Id. ¶ 17. In 2012 and- 2013, plaintiff obtained two patents related to the technology: U.S. Patent Numbers 8,191,795 (“the ’795 patent”) and 8,523,085 (“the ’085 patent”). Id. ¶¶25, 28. Plaintiffs PinPoint® technology allows agrochemical-application rates to vary “across the width of the -[spraying] system in response to one or more conditions or parameters that may exist in the field.” ’795 Patent at 1:59-62. For example, as a tractor carrying a spraying system turns corners in the field, the nozzles on the outside of -the system speed up, while the nozzles closer to the tractor slow down. Id. at 2:54-67. To maintain even coverage of the agrochemical, the flow rate of the outer nozzles must increase, while the flow rate of the inner nozzles must decrease. Id. The PinPoint® technology adjusts the spray rate for each nozzle to compensate for this problem, while controlling the overall flow rate for the spraying system as a- whole. Id. at 1:62-65, 2:63-67. Not long after its release, “[flarmers and professional sprayers alike demanded” this “nozzle-by-nozzle turn compensation feature,” allowing PinPoint® to enjoy “phenomenal success in the agriculture industry.” Doc. 1 ¶ 18.

In 2012, defendant CNH and plaintiff entered into an agreement allowing CNH to offer PinPoint® as a factory-installed [1239]*1239option on CNH sprayers. CNH adopted the name AIM Command PRO for the PinPoint® technology. The PinPoint® technology became extremely popular, and CNH eventually featured the technology on more than 80% of CNH sprayers. Despite the technology’s success, CNH ended its agreement with plaintiff in 2016 and began using a recently-introduced system—the Hawkeye system—manufactured by defendant Raven Industries, Inc. (“Raven”). CNH named its new system AIM Command FLEX.

Plaintiff alleges that Raven’s Hawkeye system and CNH’s AIM Command FLEX system infringe on plaintiffs two PinPoint®-related patents. Specifically, plaintiff alleges that these systems infringe on claims 1-6, 8-9, 12, 14, and 84 of plaintiffs ’795 patent and claims 1-4, 6, 8, 12, 14-16, and 19 of plaintiffs ’085 patent.4 Defendants contend that plaintiffs ’795 and ’085 patents are invalid and so, they ask the court to dismiss plaintiffs Complaint under Rule 12(b)(6) for failing to state a claim. Doc. 19.

II. Rule 12(b)(6) Motion to Dismiss Standard

Federal Rule of Civil Procedure 8(a)(2) provides that a complaint must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Although this Rule “does not require ‘detailed factual allegations,’ ” it demands more than “[a] pleading that offers ‘labels and conclusions’ or ‘a formulaic recitation of the elements of a cause of action.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)).

“To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Id. (quoting Twombly, 550 U.S. at 570, 127 S.Ct. 1955). “A claim has facial plausibility when the' plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556, 127 S.Ct. 1955). “Under this standard, ‘the complaint must give the court reason to believe that this plaintiff has a reasonable likelihood of mustering factual support for these claims.’” Carter v. United States, 667 F.Supp.2d 1259, 1262 (D. Kan. 2009) (quoting Ridge at Red Hawk, LLC v. Schneider, 493 F.3d 1174

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228 F. Supp. 3d 1235, 2017 U.S. Dist. LEXIS 4349, 2017 WL 106839, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capstan-ag-systems-inc-v-raven-industries-inc-ksd-2017.