Ceeco MacHinery Manufacturing, Ltd. v. Intercole, Inc.

817 F. Supp. 979, 25 U.S.P.Q. 2d (BNA) 1774, 1992 U.S. Dist. LEXIS 20836, 1992 WL 465636
CourtDistrict Court, D. Massachusetts
DecidedNovember 16, 1992
DocketCiv. A. 91-40019-XX
StatusPublished
Cited by10 cases

This text of 817 F. Supp. 979 (Ceeco MacHinery Manufacturing, Ltd. v. Intercole, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ceeco MacHinery Manufacturing, Ltd. v. Intercole, Inc., 817 F. Supp. 979, 25 U.S.P.Q. 2d (BNA) 1774, 1992 U.S. Dist. LEXIS 20836, 1992 WL 465636 (D. Mass. 1992).

Opinion

MEMORANDUM AND ORDERS

WOODLOCK, District Judge.

In 1989, the defendant Intercole purchased wire manufacturing equipment allegedly infringing the plaintiff Ceeco’s patent. Ceeco sued for injunctive and monetary relief under the patent laws and ch. 93A. Intercole has moved for summary judgment, asserting that Ceeco had not complied with marking/notice requirements that are a prerequisite to the recovery of damages. For purposes of these motions, Intercole does not challenge the fact of infringement. Ceeco has cross moved for summary judgment on the grounds that it did furnish the appropriate notice and that its damages are clearly established on the record.

At a hearing on April 8, 1992, I found that the issue of damages was not an appropriate one for summary judgment, but took the issue of notice under advisement and directed the parties to submit additional briefs on the issue. I now find that, while a genuine dispute clouds the issue of proper marking, the plaintiff has met its alternative burden of showing actual notice. I also decline to provide interlocutory injunctive relief and leave the ch. 93A issues unresolved.

I. FACTUAL BACKGROUND

In assessing the parties’ respective motions for summary judgment, I must view the record in the light most favorable to the non-movant and indulge all inferences favorable to that party. Where parties on both sides move for summary judgment, I must “evaluate each motion separately, being careful to draw inferences against each movant in turn.” Griggs-Ryan v. Smith, 904 F.2d 112, 115 (1st Cir.1990). The motion should be granted only where “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). I summarize the factual record below, and highlight where the parties are in significant dispute.

The plaintiff, Ceeco Machinery Manufacturing Limited, is a Canadian manufacturer of machines that fabricate cable and wire products. On March 11, 1986, Ceeco received patent number 4,574,571 for an invention entitled “Apparatus for and Method of Manufacturing Taped Products with Double Twist Equipment.” Complaint at ¶ 10. The patent forms issued reveal the innovation of the method and apparatus as combining two previously distinct processes. Double twist twinners, bunchers, and closers had been in existence for many years as the fastest means of combining a plurality of wires by imparting a double twist to them. Electrical cables often require a protective shield or tape to prevent pick-up of external interference. This shield was traditionally applied on single twist machines, because double twist machines would typically stretch and crack the tape. The plaintiffs patent describes a machine and method that permits the manufacture of taped cables on double twist machinery, thereby significantly enhancing speed and efficiency. An essential component of the new apparatus was a device called a pretwister. See Exhibit 1, Ceeeo’s Appendix of Exhibits in Support of its Opposition to Intercole’s Motion for Summary Judgment (hereafter Ceeco’s Appendix).

The defendant, Intercole, Inc., is a Pennsylvania company that makes and sells wire and cables. It maintains three Massachusetts divisions that are relevant to this lawsuit: Montrose Products, Mohawk Wire and Cable, and West Penn Wire. Complaint at ¶¶ 3-5. While the chronology is not absolutely clear from the pleadings and memo-randa, it appears that, sometime during 1989, these divisions purchased from New England/CFL five machines equipped with pre-twisters that allegedly infringed Ceeco’s patent. 1 The earliest of these purchases appar *981 ently took place on January 12,1989. Exhibit 21, Ceeco’s Appendix. The defendant explains that, prior to suit, two of the machines were used with the accompanying pretwis-ters to make approximately 4,500,000 feet of electrical cable, while the other three were only used after the pretwisters were removed. For the purposes of its motion, In-tercole concedes that use of the two machines with the pretwister infringed Ceeco’s patent. Defendant’s Memorandum at 3. The remaining three, having never been used with pretwisters, allegedly never infringed. Defendant’s Concise Statement at ¶ 8. 2

The parties dispute the circumstances surrounding the purchase of the five machines. Ceeco asserts that, as early as 1987, it began promoting the sale of its patented machines to Montrose and Mohawk. Complaint at ¶ 15. Alec Knight, who was responsible for soliciting potential buyers of Ceeco’s products, states by declaration that on September 14, 1988, he visited Montrose and provided its employees with a brochure describing the taping machine and indicating that it was patented. Knight Declaration at ¶ 6, attached to Ceeco’s Memorandum and Supporting Declarations in Opposition to Inter-cole’s Motion for Summary Judgment or in the Alternative for Partial Summary Judgment and in Support of Cross Motion for Summary Judgment or in the Alternative for Partial Summary Judgment (hereafter Cee-co’s Memorandum); see Ceeco brochure, Exhibit 20, Ceeco’s Appendix. On February 23, 1989, Knight returned to Montrose and advised employees that Ceeco’s machine was patented and that taping machines using pretwisters would come within the scope of the patent. Id. at ¶8.

Sometime during early 1989, Knight heard that Montrose was considering purchasing a similar machine with a pretwister from a Ceeco competitor, and he reiterated that Ceeco had an exclusive lock on such equipment. He believed that Intercole was still interested in Ceeco’s machines, although they were reluctant to purchase one because of the high price tag. Despite the fact that Montrose and Mohawk did ultimately buy machines from New England/CFL, they deliberately led Knight to believe that such was not the case until October 18, 1989. Id. at ¶¶ 9-12. Ceeco suggests that Intercole was in fact using information provided by Ceeco during the sales meetings to help New England/CFL manufacture machines that, at $60,000 less than Ceeco’s, could perform the same patented processes. See Ceeco’s Memorandum at 13.

Intercole views the events of 1989 differently. The defendant does not dispute that Ceeco was soliciting its business, but insists that it never knew of Ceeco’s patent. Defendant’s Concise Statement at ¶ 12. Intercole argues that Ceeco’s machines were not marked with a patent number, and that Knight’s references in sales meetings to possible infringement were inadequate to notify Intercole of the existence of the patent. Defendant’s Memorandum at 9-10. Intercole further insists that it did not inform Knight that it had already bought taping machines from New England/CFL, because it considered its inventory of machines to be confi *982 dential, proprietary information. Luikey Deposition at 118, Exhibit 13, Ceeco’s Appendix; Defendant’s Concise Statement at ¶ 5.

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817 F. Supp. 979, 25 U.S.P.Q. 2d (BNA) 1774, 1992 U.S. Dist. LEXIS 20836, 1992 WL 465636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ceeco-machinery-manufacturing-ltd-v-intercole-inc-mad-1992.