Corning Inc. v. SRU BIOSYSTEMS

400 F. Supp. 2d 653, 2005 U.S. Dist. LEXIS 27752, 2005 WL 3046664
CourtDistrict Court, D. Delaware
DecidedNovember 15, 2005
DocketCIV.A. 03-633-JJF
StatusPublished

This text of 400 F. Supp. 2d 653 (Corning Inc. v. SRU BIOSYSTEMS) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Corning Inc. v. SRU BIOSYSTEMS, 400 F. Supp. 2d 653, 2005 U.S. Dist. LEXIS 27752, 2005 WL 3046664 (D. Del. 2005).

Opinion

MEMORANDUM OPINION

FARNAN, District Judge.

This action was brought by Corning Incorporated and Artificial Sensing Instru- *656 merits ASI AG (collectively “Corning”) against SRU Biosystems, LLC, SRU Bios-ystems, Inc. and SRU Biosystems Holdings, LLC (collectively, “SRU”) for infringement of U.S. Patent No. 4,815,843 (the “ ’843 patent”). Corning contends that SRU directly infringed and induced infringement of the ’843 patent. SRU denies infringement and has filed counterclaims for declaratory judgment that the ’843 patent is not infringed and is invalid for lack of a written description and obviousness, and unenforceable as a result of inequitable conduct. SRU also contends that it is entitled to attorneys’ fees, because this case is an “exceptional case” under 35 U.S.C. § 285.

The Court has subject matter jurisdiction over this action pursuant to 28 U.S.C. §§ 1331 and 1338, because this action arises under the patent laws of the United States. In addition, the Court has subject matter jurisdiction over SRU’s counterclaims pursuant to 28 U.S.C. §§ 1338, 2201 and 2202, because SRU seeks declaratory judgment with regard to claims arising under the patent laws of the United States.

The Court conducted a five-day bench trial on the claims, counterclaims and defenses raised by the parties. This Memorandum Opinion constitutes the Court’s Findings of Fact and Conclusions of Law on the issues tried before the Court.

BACKGROUND

I. Procedural Background

On July 10, 2003, Corning filed this action alleging direct, induced, and contributory infringement of claims 1, 2, 23, 24, 25, and 30 of the ’843 patent and seeking monetary damages. On August 29, 2003, SRU answered the Complaint and filed counterclaims for breach of contract, trade secret misappropriation, tortious interference with advantageous relationship, and declaratory judgments of noninfringement and invalidity of the ’843 patent and U.S. Patent No. 5,071,248 (the “’248 patent”). On June 14, 2004, SRU requested leave to amend its Answer to add an affirmative defense and counterclaim asserting inequitable conduct. The Court granted SRU’s motion for leave to amend its answer. (D.I.237).

On September 14, 2004, the Court entered a.Stipulated Order dismissing with prejudice SRU’s breach of contract, trade secret misappropriation, and tortious interference counterclaims (D.I.197). On November 5, 2004, the Court entered an Order granting SRU’s Motion For Summary Judgment regarding claims 23, 24, 25, and 30 of the ’843 patent. (D.I.234). On November 16, 2004, the Court entered a Stipulated Order dismissing SRU’s counterclaims on the ’248 patent. (D.I.256). As a result, the only remaining issues to be resolved by the Court are the issues of infringement, validity, and enforceability of claims 1 and 2 of the ’843 patent. Further, Plaintiffs no longer seek monetary damages, but only injunctive relief. (D.I.236).

II. Factual Background

A. The Parties

Plaintiff Artificial Sensing Instruments ASI AG (“ASI”) is a corporation organized and existing under the laws of Switzerland, with offices in Zurich, Switzerland. ASI is the owner, by assignment from the inventors, of the ’843 patent. Plaintiff Corning Incorporated is a New York corporation with offices in Corning, NY. Corning Incorporated is the exclusive licensee of the ’843 patent throughout the United States.

Defendant SRU Biosystems, LLC and Defendant SRU Biosystems Holdings, LLC are Delaware limited liability compa *657 nies with offices in Woburn, Massachusetts. Defendant SRU Biosystems, Inc., is the successor in interest to these limited liability companies, and all three entities have conducted their business under the name “SRU Biosystems.”

B. The Technology Generally

This action arises in connection with technology used in the pharmaceutical industry for identifying chemical compounds which may be useful drugs. Drugs work in the body by binding to certain target molecules to affect the function and operation of that molecule. A molecule that binds to another molecule is referred to as a ligand. A ligand and its target molecule are shaped complementary such that they fit together like a hand in a glove. Tr. 52-107. In a healthy person, a naturally occurring ligand in the environment binds to a target molecule to produce a normal physiological response. For example, a pollen ligand binds to a histamine receptor to cause an immune response. In a person suffering from a disease, a ligand similarly binds to a target molecule, but the target molecule transmits an excessive signal, causing an abnormal physiological response. Id.

In the drug discovery process, pharmaceutical companies look for drugs that will bind with the malfunctioning target molecules. Such binding can block the natural ligand from binding and thus prevent the abnormal physiological response. Id. Pharmaceutical companies keep libraries of up to 2 million different drug compounds. Thus, efficient drug discovery requires that each drug be tested quickly. Tr. at 61:12-15.

To identify which compounds might solve a particular problem, companies use a process called high-throughput screening (“HTS”) to screen large numbers of compounds against a particular target molecule. Tr. at 96:20-23. Until recently, pharmaceutical companies used only one form of HTS, a process called label dependent detection. Such detection uses radioactive or fluorescent labels to observe binding. First, researchers attach labels to the ligands. Next, the researchers attach the labeled ligands to the target molecules. The drug candidate is then introduced. If a positive reaction occurs, the labeled ligand is knocked off the target and replaced by the drug candidate. Binding is detected by determining whether the label is still present in the sample after the drug candidate is introduced. Tr. at 68:10-17, 69:13-19. Problems associated with label dependent technology include health and safety concerns from the use of radioactive labels, difficulty attaching fluorescent tags to natural ligands, and difficulty reading fluorescent tags accurately because many compounds fluoresce at the same wavelength as the tags. Tr. 67:19-68:9.

The technology at issue in this case utilizes a newer form of HTS called label independent detection (“LID”). LID can detect binding without preparing and attaching labels, and thus, LID requires fewer steps and takes less time. Tr. at 77:16-79:13, 69:24-70:10. LID technology also overcomes the problems associated with using radioactive or fluorescent material as tags. LID utilizes optics to determine whether binding has occurred.

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400 F. Supp. 2d 653, 2005 U.S. Dist. LEXIS 27752, 2005 WL 3046664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corning-inc-v-sru-biosystems-ded-2005.