Corning Incorporated v. Wilson Wolf Manufacturing Corporation

District Court, D. Minnesota·Decided November 4, 2022·No. 0:20-cv-00700·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

Corning Incorporated, Civil No. 20-700 (DWF/TNL)

Plaintiff,

v. MEMORANDUM Wilson Wolf Manufacturing Corp. OPINION AND ORDER and John R. Wilson,

Defendants.

Ivan Poullaos, Esq., and Kimball R. Anderson, Esq., Winston & Strawn LLP; Jeff M. Barron, Esq., Barnes & Thornburg, LLP; Lora Mitchell Friedemann, Esq., and Nirmani Chethana Perera, Esq., Fredrickson & Byron, PA, counsel for Plaintiff.

Britta S. Loftus, Esq., Devan V. Padmanabhan, Esq., Michelle E. Dawson, Esq., Sri K. Sankaran, Esq., and Paul J. Robbennolt, Esq., Padmanabhan & Dawson, PLLC, counsel for Defendants.

INTRODUCTION

This matter is before the Court on Plaintiff Corning Incorporated’s (“Corning” or “Plaintiff”) Motion to Dismiss Count Ten of the Amended Complaint Without Prejudice (Doc. No. 160) and Defendant Wilson Wolf Manufacturing Corp. and John R. Wilson’s (together, “Defendants” of “Wilson Wolf”) Motion to Dismiss (Doc. No. 179). For the reasons set forth below, the Court grants Corning’s motion and denies Defendants’ motion. BACKGROUND

I. General and Procedural History Wilson is the CEO of Wilson Wolf, a biotechnology firm that develops and manufactures cell culture devices. Corning manufactures and sells cell culturing vessels, including the HYPERStack product. The parties have been litigating over cell culture technology for several years. Much of the factual background to the parties’ dispute is set forth in the Court’s March 22, 2016 Memorandum Opinion and Order in the case captioned Wilson et al. v. Corning Inc., Case No. 13-cv-210 (D. Minn. filed Jan. 25,

2013) (the “2013 Lawsuit”) (see 2013 Lawsuit, Doc. No. 388), as well as the Court’s prior order in the present action (the “DJ Action” or the “Present Action”) granting in part and denying in part a motion to dismiss the original complaint. (Doc. No. 43.) In the 2013 Lawsuit, Wilson and Wilson Wolf sued Corning in Minnesota, asserting claims for patent infringement (alleging that Corning infringed two of their

patents (the “Wilson Wolf Patents”))1, breach of contract, misappropriation of trade secrets, and inventorship claims with respect to three Corning patents—U.S. Patent No. 7,745,209 (the “’209 Patent”), U.S. Patent No. 8,178,345 (the “’345 Patent”), and U.S. Patent No. 8,273,572 (the “’572 Patent”). In that case, Wilson and Wilson Wolf alleged that Corning obtained Wilson Wolf’s cell culture technology under a

confidentiality agreement and that Corning subsequently developed products using that

1 The patents asserted in the 2013 Lawsuit are U.S. Patent No. 8,158,426 (the “’426 Patent”) and U.S. Patent No. 8,158,427 (the “’427 Patent”). Specifically, Wilson and Wilson Wolf alleged that the manufacture and sale of Corning’s HYPERStack product infringed the Wilson Wolf Patents. technology. On March 17, 2015, the Court dismissed the claims for patent infringement of the ’426 and ’427 Patents with prejudice, after the Supreme Court disallowed divided infringement claims in Limelight Networks, Inc. v. Akamai Technologies, Inc., 572 U.S.

915 (2014). (See 2013 Lawsuit, Doc. No. 299 at 5 (explaining that the claims cannot succeed under the governing law).) Further, the Court dismissed the trade secret claim with prejudice insofar as it is based on misappropriation after April 21, 2005, the date Wilson published his alleged trade secrets in a patent application. (2013 Lawsuit, Doc. No. 388 at 26 (holding that Wilson Wolf had not established and could not claim

any trade secret “separate from the information disclosed in [the Wilson Wolf] patents”).) The claims remaining in the 2013 Lawsuit include correction of inventorship, breach of contract, and trade secret misappropriation. That case is set for trial beginning on November 7, 2022. In November 2015, Corning requested an interference proceeding between another

Wilson Wolf cell culture patent—U.S. Patent No. 8,809,044 (the “’044 Patent”)—and Corning’s U.S. Patent Application No. 14/814,267 under 35 U.S.C. § 135(a). Wilson v. Martin, 789 F. App’x 861, 866 (Fed. Cir. 2019). The U.S. Patent and Trial Appeal Board (“PTAB”) issued a decision and judgment invalidating all challenged claims of the ’044 Patent on the ground that they were anticipated by prior art. Id. at 866-68. That decision

was affirmed by the Federal Circuit. Id. at 873. Subsequently, in or around late 2019 and early 2020, Wilson Wolf filed several federal patent infringement actions against customers and end-users of Corning’s HYPERStack product.2 These include lawsuits against Brammer Bio, LLC (“Brammer”), Sarepta Therapeutics, Inc. (“Sarepta”), and Nationwide Children’s Hospital, Inc. and The Research Institute at Nationwide Children’s Hospital (together,

“Nationwide”) (collectively “Customers”). See Wilson Wolf Mfg. Corp. v. Brammer Bio, LLC, Civ. No. 1:19-2315 (D. Del.); Wilson Wolf Mfg. Corp. v. Nationwide Children’s Hosp., Inc. et al., Civ. No. 20-192 (S.D. Ohio); Wilson Wolf Mfg. Corp. v. Sarepta Therapeutics, Inc., Civ. No. 1:19-2316 (D. Del.) (together “Customer Lawsuits”). In each of these cases, Wilson Wolf alleges that the user of Corning’s HYPERStack product

(or a user of cells manufactured using the HYPERStack product) directly infringes the claims of the one or all of the patents-in-suit—U.S. Patent No. 9,441,192 (the “’192 Patent”), U.S. Patent No. 8,697,443 (the “’443 Patent”), and U.S. Patent No. 9,732,317 (the “’317 Patent”) (the “patents-in-suit”).3 The Customers have asserted defenses, including noninfringement and invalidity, and Sarepta and Nationwide both assert the

“safe harbor” defense. Each of the Customer Lawsuits has been stayed. Both Brammer and Nationwide agreed to be bound by the findings related to infringement and validity in the DJ Action. Sarepta also moved to stay after the court in that case denied its motion to

2 Corning asserts that before these lawsuits were filed, Wilson Wolf threatened to sue Corning’s customers and end-users. (Doc. No. 73 (“Am. Compl.”) ¶ 19.) 3 Corning asserts that the complaints in the Customer Lawsuits all rely on an article written by Corning employees and a YouTube video produced by Corning to support the patent infringement allegations. Thus, Corning asserts that the issues in those suits, namely how the HYPERStack products are used in accordance with Corning’s own instructions, are common to all of the Customer Lawsuits. dismiss brought on the grounds that the accused conduct fell within the scope of the “safe harbor.” In this DJ Action, Corning seeks a declaration resolving questions of patent

infringement and validity with respect to the patents-in-suit. In short, Corning alleges that, having suffered invalidation of the ’044 Patent, Wilson and Wilson Wolf launched a retaliatory litigation campaign against its Customers. Corning seeks a declaration that the use of Corning’s HYPERStack cell culture device by Brammer, Sarepta, and Nationwide does not infringe the patents-in-suit, that the patents-in-suit are invalid, and that

Defendants tortiously interfered with Corning’s existing and prospective customers. In Count Ten, Corning seeks a declaration that the safe harbor defense immunizes Brammer, Sarepta, and Nationwide from Wilson Wolf’s claim of infringement. Corning alleges, on information and belief, that the HYPERStack users employ HYPERStack vessels solely for uses reasonably related to the development and submissions of information under

federal laws regulating the manufacture, use, or sale of drugs or veterinary biological products, including the Food and Drug Administration (“FDA”). (Doc. No. 73, Am. Compl.

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