Chip-Mender, Inc. v. Sherwin-Williams Co.

458 F. Supp. 2d 994, 2006 U.S. Dist. LEXIS 77487, 2006 WL 2956553
CourtDistrict Court, N.D. California
DecidedOctober 16, 2006
DocketC 05-3465 PJH
StatusPublished

This text of 458 F. Supp. 2d 994 (Chip-Mender, Inc. v. Sherwin-Williams Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chip-Mender, Inc. v. Sherwin-Williams Co., 458 F. Supp. 2d 994, 2006 U.S. Dist. LEXIS 77487, 2006 WL 2956553 (N.D. Cal. 2006).

Opinion

*997 ORDER CONSTRUING CLAIMS

HAMILTON, District Judge.

Plaintiff Chip-Mender, Inc. (“Chip-Mender”), owns two utility patents for paint applicator systems used to apply automotive touch-up paint to cover chips and scratches on the painted surface of vehicles. The patents are U.S. Patent No. 6,254,299 B1 (“the '299 patent”) and U.S. Patent No. 6,283,663 B1 (“the '663 patent”). The inventor is Timothy M. Russo, who is also the president of Chip-Mender, to whom he assigned the patents.

Chip-Mender filed this action on August 26, 2005, alleging that defendant The Sher-win-Williams Company (“Sherwin-Williams”) had infringed Chip-Mender’s patents. On May 5, 2006, pursuant to the local rules of this court, the parties filed a joint claims construction statement. Chip-Mender has given Sherwin-Williams a broad covenant not to sue with regard to the '633 patent, and now asserts only certain claims of the '299 patent.

On September 13, 2006, following the filing of briefs by the parties, the court heard argument regarding the construction of nine disputed terms in the claims of the '299 patent. Chip-Mender appeared by its counsel Kenneth B. Wilson and Dieter Hellmoldt, and Sherwin-Williams appeared by its counsel Regan J. Fay, Peter N. Larson, and Anthony T. Jacono. At the conclusion of the hearing, the court took the matter under submission, and now rules as follows.

BACKGROUND

At the time the complaint was filed, Chip-Mender was in the business of selling automotive touch-up pens, based on the system described in the patents-in-suit. It had two employees — Russo and his wife. Chip-Mender ceased operations in mid-2006.

Russo filed the application that led to the issuance of the '299 patent, which is entitled “Paint Applicator System,” on November 29, 1999. The original application contained 11 claims (1 independent claim and 10 dependent claims), which were broader than, but similar to, the 22 claims that ultimately issued. In his November 29, 1999, identification of prior art, Russo disclosed 10 prior art references.

On August 16, 2000, the PTO issued an initial Office Action in which it rejected each of the original 11 claims, based on 35 U.S.C. § 103(a), on the ground that they were unpatentable in light of certain prior art. The examiner found that it would have been obvious to one of ordinary skill in the art at the time the invention was made to employ the same paint composition described in two of the prior art references (“Kremer in view of Saad” and “in further view of Nakai”).

On February 9, 2001, Russo submitted a written response to the August 16, 2000, Office Action, and also submitted amended claims. In the written response, Russo challenged the rejection of claims 1 though 11 on the basis that both the paint composition described in the Saad reference and that described in the Nakai reference contained a catalyst, which, if used in the paint composition in the Paint Applicator System, would turn the liquid compound into a solid material and render the applicator useless. Russo also asserted that the paint composition described in the Na-kai reference contained an acid that could not be used in conjunction with the automotive paint composition in the Paint Applicator System without severely damaging the paint composition in the applicator and the painted surface.

In addition, Russo amended independent claim 1 as follows. He modified the preamble, “A paint applicator system for repairing a painted body, comprising ...,” to read, “A paint applicator system for applying automotive touch-up paint to the *998 painted surface of a vehicle, comprising .... ” He changed “paint composition” to “automotive paint composition,” and changed “said paint at said nib intended to be transferred to said body” to “said paint at said nib intended to be transferred to the painted surface of a vehicle.” Russo also added new independent claim 12, a method claim that includes the same new “automotive paint” and “surface of a vehicle” limitations, plus 14 additional claims (claims 13-26) that depended from new independent claim 12.

The Examiner issued a Notice of Allow-ability on March 29, 2001, with an amendment stating that “[c]laims 1-22 are allowed,” but that the application had been amended to “[c]ancel claims 23-26.” The Examiner’s reason for allowance of claims 1-22 was that

the prior art of record does not render obvious the claimed device containing the claimed paint composition because the prior art paint compositions having the viscosity adjusted via addition of a solvent as claimed include a catalyst, and such compositions would harden while stored in the applicator rendering the applicator inoperative.

The prosecution history is silent with regard to the Examiner’s reasons for cancel-ling claims 23-26. Chip-Mender speculates that they were likely cancelled due to patent drafting errors, as each of those claims depended from more than one claim, which violates certain provisions of the Manual of Patent Examining Procedure. Claims 12 through 22 were all allowed as written with no modifications requested by the Examiner or made by Russo.

In 2002, Russo became aware of Sher-win-Williams’ automotive touch-up pen, the Dupli-Color Scratch Fix 2-in-l Pen, while attending an automotive trade show in Las Vegas. According to Chip-Mender, up until that time, Sherwin-Williams’ automotive touch-up products were primarily brush-and-cap based, and employed the systems of the prior art. Russo subsequently advised Sherwin-Williams that he had two patents that he believed covered Sherwin-Williams’ products, and offered to license his patents to Sherwin-Williams, but Sherwin-Williams refused.

DISCUSSION

A. Legal Standard

Patent infringement analysis involves a two-step process. First, the court must determine as a matter of law the correct scope and meaning of disputed claim terms. Second, the properly construed claims are compared to the accused device to see whether the device contains all the limitations (literally or by equivalents) in the claims at issue. Markman v. Westview Instruments, Inc., 517 U.S. 370, 384, 116 S.Ct. 1384, 134 L.Ed.2d 577 (1996).

“[T]he claims of a patent define the invention to which the patentee is entitled the right to exclude.” Phillips v. AWH Corp., 415 F.3d 1303, 1312 (Fed.Cir.2005), cert. denied, — U.S.-, 126 S.Ct. 1332, 164 L.Ed.2d 49 (2006). (citation and quotation omitted); see also Renishaw PLC v. Marposs Societa’ per Azioni, 158 F.3d 1243, 1248 (Fed.Cir.1998) (claim construction “begins and ends” with the actual words of the claims). “The terms used in the claims bear a ‘heavy presumption’ that they mean what they say and have the ordinary meaning that would be attributed to those words by persons skilled in the relevant art.”

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458 F. Supp. 2d 994, 2006 U.S. Dist. LEXIS 77487, 2006 WL 2956553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chip-mender-inc-v-sherwin-williams-co-cand-2006.