Chiron Corp. v. Genentech, Inc.

268 F. Supp. 2d 1117, 2002 U.S. Dist. LEXIS 19185, 2002 WL 32124004
District Court, E.D. California·Decided June 24, 2002·No. CIV.S-00-1252 WBS GG·Published·Cited by 4 cases

Opinion

MEMORANDUM AND ORDER RE: WILLFUL INFRINGEMENT

SHUBB, District Judge.

In a separate, order, the court has determined that Genentech’s product, Hereep-tin, infringes Chiron’s U.S. Patent No. 6,054,561 (“ ’561 patent”). Genentech now moves for summary judgment on Chiron’s allegations of the willfulness of the infringement. 1

I. Factual and Procedural Background

The ’561 patent claims monoclonal antibodies that bind to a human breast cancer antigen known as HER2. In an order filed concurrently herewith, the court has found *1119 that Herceptin, a breast cancer drug composed of anti-HER2 monoclonal antibodies, infringes the ’561 patent. (See Mem. and Order Re: Infringement.) The court has also concluded that questions of the patent’s validity cannot be resolved on summary judgment. (See Mem. and Order Re: Priority, Anticipation.)

Genentech developed Herceptin in the early 1990s and has been selling it in the United States since 1998. (Cook Dep. at 41; Johnston Decl. ¶ 4.) The ’561 patent issued to Chiron on April 25, 2000. (’561 Patent.) Shortly thereafter, Chiron contacted Genentech and asserted that Her-ceptin infringed the patent. (Johnston Decl. ¶¶ 9, 10.) The parties entered into a litigation standstill agreement and commenced negotiations regarding the possibility of Genentech licensing the rights to the ’561 patent from Chiron. (Chiron Opp’n at 2; Genentech Reply at 3.) During this time, Genentech sought advice from its in-house patent attorneys, who concluded that Herceptin did not infringe the ’561 patent, and that the patent was invalid. (Juelsgaard Dep. at 19-10.) After six weeks of negotiations, Genentech declined to license the ’561 patent from Chiron. 2 (Id. at 47.)

On June 7, 2000, Chiron filed this lawsuit. Meanwhile, Genentech retained the law firm of Knobbe Martens, Olson & Bear, LLP (hereinafter “Knobbe Martens”) to analyze issues of validity and infringement related to the ’561 patent. (Johnston Decl. ¶¶ 9, 10; Johnston Dep. at 28-29, 46-47; Ceño Decl. Ex. J at 1.) On September 28, 2000, Knobbe Martens provided Genentech with a detailed opinion letter concluding that the ’561 patent was both invalid and not infringed. (Celio Decl. Ex. J.)

Chiron contends that, despite the opinions of in-house and outside counsel that the ’561 patent was invalid and not infringed, Genentech willfully disregarded Chi-ron’s rights in the ’561 patent by continuing to market Herceptin without a license.

II. Discussion

The court must grant summary judgment to a moving party “if 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). The party adverse to a motion for summary judgment may not simply deny generally the pleadings of the movant; the adverse party must designate “specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e); see Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Simply put, “a summary judgment motion cannot be defeated by relying solely on conclusory allegations unsupported by factual data.” Taylor v. List, 880 F.2d 1040, 1045 (9th Cir.1989). The non-moving party must show more than a mere “metaphysical doubt” as to the material facts. Matsushita Elec. Indus. Co. v. Zenith Radio, 475 *1120 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).

In addition, “the inquiry involved in a ruling on a motion for summary judgment ... necessarily implicates the substantive evidentiary standard of proof that would apply at the trial on the merits.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Chiron has the burden to prove willful infringement by clear and convincing evidence. Braun, Inc. v. Dynamics Corp. of America, 975 F.2d 815, 822 (Fed.Cir.1992). Therefore, the court must take this standard into account in ruling on this motion.

Upon a finding of infringement, section 284 of the Patent Act gives the court discretion to increase the compensatory damage award “up to three times the amount found or assessed.” 35 U.S.C. § 284. Two steps are involved in determining whether an award of increased damages is appropriate. First, the fact-finder must determine whether an infringer is guilty of culpable conduct upon which increased damages may be based. Jurgens v. CBK, Ltd., 80 F.3d 1566, 1570 (Fed.Cir.1996) Second, if the first requirement is met, the court must determine in the exercise of its discretion whether, and to what extent, to increase the damages award given the totality of the circumstances. Id.

An act of willful infringement is sufficient to meet the first requirement to increase a compensatory damages award. Id. If, on the other hand, infringement is innocent, increased damages are not awardable. Read Corp. v. Portec, Inc., 970 F.2d 816, 831 (Fed.Cir.1992). Infringement is willful if an infringer “proceeded without a reasonable belief that it would not be held liable for infringement.” Id.; see also SRI Int’l, Inc. v. Advanced Techn. Labs., 127 F.3d 1462, 1465 (Fed.Cir.1997) (“[Precedent displays the consistent theme of whether a prudent person would have had sound reason to believe that the patent was not infringed or was invalid or unenforceable, and would be so held if litigated”). Willful infringement is a question of fact that turns on the defendant’s state of mind, and “is often accompanied by questions of intent, belief, and credibility.” SRI, 127 F.3d at 1464; Read, 970 F.2d at 828.

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Chiron Corp. v. Genentech, Inc., 268 F. Supp. 2d 1117, 2002 U.S. Dist. LEXIS 19185, 2002 WL 32124004 (E.D. Cal. 2002).

268 F. Supp. 2d 1117 (Chiron Corp. v. Genentech, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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