CERNER CORPORATION v. Visicu, Inc.

667 F. Supp. 2d 1062, 2009 U.S. Dist. LEXIS 99376, 2009 WL 3526654
CourtDistrict Court, W.D. Missouri
DecidedOctober 26, 2009
DocketCase 04-1033-CV-W-GAF
StatusPublished
Cited by4 cases

This text of 667 F. Supp. 2d 1062 (CERNER CORPORATION v. Visicu, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CERNER CORPORATION v. Visicu, Inc., 667 F. Supp. 2d 1062, 2009 U.S. Dist. LEXIS 99376, 2009 WL 3526654 (W.D. Mo. 2009).

Opinion

ORDER

GARY A. FENNER, District Judge.

Now pending before the Court are six separate Motions for Summary Judgment concerning various issues present in this patent infringement case. 1 (Doc. ## 230, 232, 237, 241, 244, 269). After extensive briefing by the parties and careful consideration by the Court, Plaintifi/CounterDe-fendant Cerner Corporation’s (“Cerner”) Motion regarding non-infringement (Doc. #269) is DENIED; Cerner’s Motion regarding invalidity (Doc. #244) is DENIED; Cerner’s Motion regarding intervening rights (Doc. # 237) is GRANTED; Cerner’s Motion regarding willful infringement (Doc. #241) is DENIED; Cerner’s Motion regarding misappropriation of trade secrets (Doc. #230) is GRANTED in part and DENIED in part; and Defendant/Counterclaimant Visicu, Inc.’s (“Visi-cu”) Motion regarding no inequitable conduct (Doc. # 232) is DENIED.

DISCUSSION

I. Facts

A. Procedural History

Cerner initiated the instant action on November 12, 2004, seeking declarations that (1) it had not infringed and is not infringing Visicu’s United States Patent No. 6,804,656 (“the '656 patent”), either directly or contributorily; (2) the '656 patent is invalid; (3) the '656 patent is unenforceable due to patent misuse and/or inequitable conduct; and (4) Visicu engaged in unfair competition and tortious interference with Cerner’s contracts and business expectancies. (Doc. # 1). Two months later, Cerner filed its First Amended Complaint, seeking identical relief. (Doc. # 14). On October 23, 2005, Visicu answered and asserted the following counterclaims: (1) Patent Infringement; (2) Inducement of Patent Infringement; (3) Contributory Patent Infringement; (4) Trade Secret Misappropriation; (5) Breach of Contract; (6) Unfair Competition under the Lanham Act; (7) Common Law Unfair Competition; (8) Injurious Falsehood; and (9) Tortious Interference with Contract and Business Expectancy. (Doc. # 57). On December 6, 2005, the Court stayed the case pending reexamination of the '656 patent by the United States Patent and Trademark Office (“PTO”) and, approximately two years later, the stay was lifted. (Doc. ## 91, 103-04).

On January 7, 2008, Cerner filed its Second Amended Complaint, requesting additional declarations that it did not infringe Visicu’s United States Patent No. 7,256,708 (“the '708 patent”) and that the '708 patent is invalid and/or unenforceable. (Doc. # 116). Twenty-one days later, Visi-cu answered and amended its counterclaims to add claims of infringement, both direct and contributory, of the '708 patent. (Doc. # 117). On July 10, 2008, the Court held the Markman hearing and then is *1066 sued its Claim Construction Order on July-23, 2008. (Doc. ## 134-35).

On May 15, 2009, Cerner filed its Third Amended Complaint with leave from the Court, asserting additional allegations of inequitable conduct. (Doc. #204). Cer-ner filed its Fourth Amended Complaint on July 28, 2009, dropping its unfair competition and tortious interference claims. (Doc. # 252). Thereafter, Visicu abandoned its breach of contract, unfair competition, injurious falsehood, and tortious interference claims. (Doc. # 253).

B. Factual Background

In 1998, Drs. Brian A. Rosenfeld and Michael Breslow founded Visicu for the purpose of developing and distributing an intensive care unit (“ICU”) system to assist clinicians with the monitoring and management of ICU patients. (Henkind Rpt., ¶¶ 19, 21). Visicu’s ICU solution, the elCU remote monitoring system, featured both remote monitoring capabilities and clinical decision support (e.g. clinical content, algorithms, decision flowcharts, etc.) to help clinicians make decisions and guide care. Id. at ¶ 21. Visicu installed its first system in 2000. Id. at ¶ 19.

Cerner’s ICU product is built around a core module called INET, which was first installed in 1999. (Henkind Rpt., ¶ 25). INET, as it stood prior to 2001, has been described as “weak,” “inadequate for the critical care market space,” and consisting of only “a nursing documentation system.” (CERN057223-27; Fackler Depo., 15:7-12).

In the Spring of 2001, Visicu and Cerner commenced discussions regarding a possible partnership between the two parties, wherein Visicu’s elCU remote monitoring system, then known as Argus, would be built upon Cerner’s existing architecture. (Bowerman Depo., 36:19-37:6; Super Depo., 133:3-19; VIS0212261-62, 69, 76-79). While the partnership never came to fruition, Visicu and Cerner exchanged information regarding their respective systems, including the Gap Analysis and the Future Feature List documents. (Gap Analysis; Future Features List). Some of this information was or became public. (Henkind Depo., 132:7-24). Following the discussions, Cerner identified some features of Visicu’s elCU remote monitoring system as “key” or “significant.” (CERN017059; CERN010464-66).

Visicu attempted to keep detailed information about its product confidential. It was standard operating procedure at Visi-cu for contractors to sign a non-disclosure agreement prior to being shown any Visicu confidential information. (Bowerman Depo., 201:2-202:15). In fact, the discussions between Visicu and Cerner were covered by two confidentiality agreements, executed on April 18, 2001, and January 23, 2002. (4/18/01 Non-Disclosure Agreement (“NDA”); 1/23/02 NDA). Additionally, Visicu’s technology team would not provide lists of features or screen shots of its elCU remote monitoring system without a confidentiality agreement in place and did not send electronic user manuals to its clients for fear of dissemination to individuals not under a NDA. (Bowerman Depo., 182:21-184:9). Visicu asserts that at all sales presentations in which purported confidential information was revealed, potential customers were required to sign a NDA. (Rosenfeld Depo., 295:15-296:20, 297:11-298:14; Doerfler Depo., 269:1-273:6).

Nevertheless, some information did become publicly available despite Visicu’s practices to keep information confidential. A sales power-point presentation, which included screen shots, was available on the Internet beginning in 2004. (Internet Archive Wayback Machine, http://web. archive.org/web/20041011195036/http:// www.nocalhimss.org/new/presentations/ *1067 10040511 — Meyers.pdf). 2 Additionally, Visi-cu’s December 28, 2000, Patent Cooperation Treaty (“PCT”) Application disclosed certain concepts of its elCU remote monitoring system. (Henkind Depo., 225 13:227-:, 228:1-7, 228:19-24, 230:11-22; PCT App. WO 00/79466). Visicu also conducted public trade show demonstrations of its ICU solution at conferences without requiring potential buyers to sign a NDA. (Larsen Depo., 73:4-75:24, 76:23-77:21, 78:22-79:1; 80:23-81:3, 81:21-82:11). Furthermore, Visicu permitted CNN and a local broadcast station to publicly broadcast a news story about its elCU remote monitoring system, which disclosed elements listed in the Gap Analysis. (IC-USA video).

In 2004, Cerner installed its first ICU remote monitoring solution, named INET Virtual, 3 at Borgess Medical Center (“Bor-gess”).

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667 F. Supp. 2d 1062, 2009 U.S. Dist. LEXIS 99376, 2009 WL 3526654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cerner-corporation-v-visicu-inc-mowd-2009.