Control Laser Corporation v. Smith

CourtDistrict Court, N.D. California
DecidedDecember 8, 2023
Docket4:21-cv-01869
StatusUnknown

This text of Control Laser Corporation v. Smith (Control Laser Corporation v. Smith) 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
Control Laser Corporation v. Smith, (N.D. Cal. 2023).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 CONTROL LASER CORPORATION, Case No. 21-cv-01869-JST

8 Plaintiff, ORDER GRANTING IN PART AND 9 v. DENYING IN PART MOTION FOR PARTIAL SUMMARY JUDGMENT 10 WILLIAM FREDERICK SMITH dba BSET EQ, Re: ECF No. 74 11 Defendant.

13 Before the Court is Plaintiff Control Laser Corporation’s motion for partial summary 14 judgment. ECF No. 74. The Court will grant the motion in part and deny it in part. 15 I. BACKGROUND 16 Plaintiff, a laser technology developer, created a “method and system for decapsulation of 17 integrated circuits.” ECF No. 6 ¶ 11. Plaintiff’s president is RenJie Rodger Liu, and its vice 18 president is Fred Nielsen. ECF No. 74-20 at 5–6. Plaintiff is owned by Han Technology 19 Incorporated (“HTI”), ECF No. 74-20 at 13–16, HTI is owned by Han’s Technology Laser 20 Company, HK, Ltd. (“Han’s Technology Group”), and Han’s Technology Group is owned by 21 Han’s Laser Technology Industry Group Company, Ltd. (“Han’s Industry Group”). Id. at 15, 17– 22 18. Han’s Industry Group is located in Shenzhen, China. 23 In connection with its laser decapsulation technology, Plaintiff obtained the rights to U.S. 24 Patent No. 7,271,012 (“’012 patent”). ECF No. 74-20 at 36–44; see ECF No. 6 at 13–21. The 25 ’012 patent recites a laser-based method and apparatus for “exposing a structure encapsulated with 26 a material.” ’012 patent at 7:43; 8:33; see also ECF No. 74-20 at 28. Liu is the only individual 27 within Plaintiff authorized to grant a license to practice the ’012 patent, ECF No. 74-25 at 15, and 1 sells a number of products that practice the ’012 patent through a decapsulation tool named 2 FALIT. ECF No. 74-20 at 29–30. 3 Baublys Laser GmbH (“Baublys”) is a German company that manufactures several 4 systems that decapsulate semiconductor devices using laser technology. ECF No. 74-20 at 24–26; 5 ECF No. 74-7 at 2–6. Baublys is a subsidiary of Han’s Industry Group. ECF No. 74-20 at 21; 6 ECF No. 74-20 at 77. Defendant BSET EQ designs, manufactures, and distributes laser 7 decapsulation systems. ECF No. 74-11 at 2. Defendant holds itself out as “the exclusive 8 distributor for Baublys lasers in North America and for their laser decapsulation systems world 9 wide.” ECF No. 74-24 at 6. Defendant also sells its own gas plasma system, the PLASER, that 10 incorporates the Baublys systems. ECF No. 74-15 at 15–16. Defendant holds no patent licenses 11 or other patent rights. ECF No. 74-21 at 154–56. 12 Defendant “invested at least $15,000 in order to market, advertise, present, trade, import, 13 license, and/or sell the Baublys [systems].” Id. at 15. Defendant sold and distributed the Baublys 14 systems from 2015 to 2019. ECF No. 74-7 at 2–6; ECF No. 74-21 at 8, 20, 158–160, 163; see 15 generally ECF No. 74-16. Defendant also promoted the systems at trade shows. ECF No. 74-21 16 at 15, 46, 60, 172–73; see generally ECF No. 74-17. Defendant was “involved in training the 17 customer on how to use the system” once it was installed and would spend “a day or two” 18 “show[ing] [customers] how to deal with their parts.” ECF No. 74-21 at 29, 30. On one occasion, 19 Defendant provided “after-sale service.” Id. at 26. 20 On November 9, 2018, Liu sent Defendant an email in which he asserted that Defendant 21 was “agenting the infringed product of FALIT.” ECF No. 74-26 at 5. Defendant received this 22 correspondence but took no action in response. ECF No. 74-21 at 43–46. Liu and Defendant 23 subsequently met at a trade show in Portland, Oregon, in 2019. Id. at 46. The two engaged in “a 24 three-minute confrontation,” id. at 46, in which Liu referred to Defendant as “a patent infringer” 25 and told Defendant that he would “send a letter,” id. at 47. Defendant responded that he “would 26 throw [the letter] in the trash because there would be no reason for it.” Id. at 54. 27 Plaintiff filed suit on March 17, 2021, ECF No. 1, and alleges that Defendant’s conduct 1 direct infringement pursuant to 35 U.S.C. § 271(a), induced infringement pursuant to 35 U.S.C. 2 § 271(b), and contributory infringement pursuant to 35 U.S.C. § 271(c). Id. ¶¶ 41–42, 44. 3 Plaintiff filed the instant motion on April 27, 2023 and seeks partial summary judgment only on 4 the issue of Defendant’s liability. ECF No. 74. The Court took the motion under submission 5 without a hearing on June 23, 2023. ECF No. 77. 6 II. JURISDICTION 7 The Court has jurisdiction under 28 U.S.C. § 1331. 8 III. LEGAL STANDARD 9 A party is entitled to summary judgment “only if, taking the evidence and all reasonable 10 inferences in the light most favorable to the non-moving party, there are no genuine issues of 11 material fact, and the movant is entitled to judgment as a matter of law.” Karasek v. Regents of 12 Univ. of Cal., 956 F.3d 1093, 1104 (9th Cir. 2020) (quoting Tauscher v. Phx. Bd. of Realtors, Inc., 13 931 F.3d 959, 962 (9th Cir. 2019)). A dispute is genuine only if there is sufficient evidence “such 14 that a reasonable jury could return a verdict for the nonmoving party,” and a fact is material only if 15 it might affect the outcome of the case. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 16 (1986). 17 Where the party moving for summary judgment would bear the burden of proof at trial, 18 that party “has the initial burden of establishing the absence of a genuine issue of fact on each 19 issue material to its case.” C.A.R. Transp. Brokerage Co. v. Darden Rests., Inc., 213 F.3d 474, 20 480 (9th Cir. 2000). If the moving party satisfies its initial burden of production, the nonmoving 21 party must produce admissible evidence to show that a genuine issue of material fact exists. 22 Nissan Fire & Marine Ins. Cos., Ltd. v. Fritz Cos., Inc., 210 F.3d 1099, 1102–03 (9th Cir. 2000). 23 That party must “identify with reasonable particularity the evidence that precludes summary 24 judgment.” Keenan v. Allan, 91 F.3d 1275, 1279 (9th Cir. 1996) (quoting Richards v. Combined 25 Ins. Co., 55 F.3d 247, 251 (7th Cir. 1995)). It is not the duty of the court “to scour the record in 26 search of a genuine issue of triable fact.” Id. (quoting Richards, 55 F.3d at 251). “[A] mere 27 ‘scintilla’ of evidence will not be sufficient to defeat a properly supported motion for summary 1 tending to support the complaint.’” Summers v. Teichert & Son, Inc., 127 F.3d 1150, 1152 (9th 2 Cir. 1997) (quoting Liberty Lobby, 477 U.S. at 252, 249). If the nonmoving party fails to make 3 this showing, the moving party is entitled to summary judgment. Celotex Corp. v. Catrett, 477 4 U.S. 317, 322–23 (1986). 5 IV. DISCUSSION 6 The validity of the ’012 patent is undisputed, and the parties stipulated that Defendant’s 7 conduct infringes claims 1 and 12 of the patent. See ECF No. 38 at 2; ECF No. 36 at 2; see also 8 ECF No. 75 at 8. The principal dispute between the parties is whether Defendant was authorized 9 to sell the infringing systems.

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