Cot'n Wash, Inc. v. Henkel Corp.

56 F. Supp. 3d 613
CourtDistrict Court, D. Delaware
DecidedJuly 11, 2014
DocketCiv. No. 12-650-SLR, Civ. No. 12-651-SLR
StatusPublished
Cited by8 cases

This text of 56 F. Supp. 3d 613 (Cot'n Wash, Inc. v. Henkel Corp.) 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
Cot'n Wash, Inc. v. Henkel Corp., 56 F. Supp. 3d 613 (D. Del. 2014).

Opinion

MEMORANDUM OPINION

SUE L. ROBINSON, District Judge

I. INTRODUCTION

On May 23, 2012, Big 3 Packaging, LLC (“B3P”) and Cot’n Wash, Inc. (“Cot’n Wash”) (collectively, “plaintiffs”) filed suit in this district against Henkel Corporation, The Dial Corporation (“Dial”), and Henkel Consumer Goods, Inc. (collectively, “the Henkel defendants”) alleging infringement of United States Patent No. 6,037,319 (“the ’319 patent”). (Civ. No. 12-650, D.I. 1) On the same day, plaintiffs asserted the ’319 patent against The Sun Products Corporation (“Sun”) in a related case before this court.1,2 (Civ. No. 12-651, D.I. 1) The ’319 patent is directed to “water-soluble packets containing liquid cleaning concentrates.” (D.I. 1 at ¶ 10; D.I. 1 at ¶ 10)3

The Henkel defendants and Sun (collectively, “defendants”) answered plaintiffs’ complaints on July 30, 2012 and asserted counterclaims against plaintiffs seeking declaratory judgments of non-infringement and invalidity of the ’319 patent. (D.I. 11' at 18-19, ¶¶ 17-27; D.I. 9 at 12-14, ¶¶ 13- ' 26) On August 21, 2012, plaintiffs answered defendants’ counterclaims. (D.I. 17; D.I. 13)

Pursuant to the court’s scheduling order, “[a]ll motions to ... amend the pleadings shall be governed by Rule 15,” with no specified deadline for amending. (D.I. 22 at ¶3; D.I. 20 at ¶3) On August 15, 2013, by stipulation, the Henkel defendants filed their first amended answer, affirmative defenses, and counterclaims, adding affirmative defenses of patent invalidity under 35 U.S.C. § 112 and inequitable conduct, as well as a counterclaim of patent unenforceability due to inequitable conduct. (Civ. No. -12-650, D.I. 56 at 14-23, ¶¶ 12-39; id. at 39-41, ¶¶ 59-69) On September 3, 2013, plaintiffs answered the Henkel defendants’ new affirmative defenses and counterclaim. (Civ. No. 12-650, D.I. 62)

In both cases, fact discovery for the liability phase concluded on January 20, 2014 pursuant to stipulation. (D.I. Ill at [618]*6182; D.I. 133 at 2) Expert discovery..concluded on March 1, 2014. (D.I. 22 at ¶ 2(d); D.I. 20 at ¶ 2(d)) Trial is scheduled for September 15,2014. (D.I. 22 at ¶ 11; D.I. 20 at ¶ 11)

Currently before the court are defendants’ motions to amend their answers to include counterclaims of false marking under 35 U.S.C. '§ 292. (D.I. 145; D.I. 152) The Henkel defendants also seek to add counterclaims of false advertising under 15 U.S.C. § 1125 and deceptive trade practices under 6 Del. C. § 2532. (Civ. No. 12-650, D.I. 145) Sun seeks to include a counterclaim of unenforceability due to inequitable conduct before the United States Patent and Trademark Office (“USPTO”). (Civ. No. 12-651, D.I. 152) The court has jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1338(a).

II. BACKGROUND

A. Parties

B3P is a limited liability company organized and existing under the laws of the State of New Jersey, with its principal place of business in Philadelphia, Pennsylvania. (D.I. l at ¶ 5; D.I. 1 at ¶ 5) B3P is the assignee of the ’319 patent. (Id.) Cot’n Wash is a corporation organized and existing under the laws of Pennsylvania, with its principal place of business in Philadelphia, Pennsylvania. (D.I. 1 at ¶ 6; D.I. 1 at ¶ 6) Cot’n Wash is an exclusive licensee of the ’319 patent in the laundry products field. (Id.)

Henkel Corporation, a subsidiary of the German company Henkel AG & Co. KGaA, is a corporation organized and existing under the laws of the State of Delaware with a place of business in Rocky Hill, Connecticut. (Civ. No 12-650, D.I. 1 at ¶ 9) Henkel Consumer Goods, a subsidiary of Henkel Corporation, is a corporation organized and existing under the laws of the State of Delaware, with its principal place of business in Scottsdale, Arizona. (Id. at ¶ 8) Dial, a subsidiary of Henkel Consumer Goods, is a corporation organized and existing under the laws of the State of Delaware, with a place of business in Scottsdale, Arizona. (Id. at ¶ 7) Sun is a private company organized and existing under the laws of the State of Delaware, with its principal place of business in Wilton, Connecticut. (Civ. No. 12-651, D.I. 1 at 117)

B. Alleged Facts Related to Amendments

1. False marking, false advertising, and deceptive trade practices

In early October 2013, while reviewing plaintiffs’ document productions, defendants became aware of emails sent in 2010 and 2011 demonstrating that plaintiffs had marked their Dropps laundry product with the ’319 patent despite knowledge that the liquid cleaning concentrate in the Dropps packets had a water content greater than 7.5%. (See Civ. No. 12-650, D.I. 147 at ¶ 3; id., exs. A-D; Civ. No. 12-651, D.I. 154, exs. K, L) Plaintiffs had produced these emails in March, May, and June 2013. (D.I. 147 at 1Í8; D.I. 158 at 17)

2. Unenforceability due to inequitable conduct

In August 2013, plaintiffs asked Sun to stipulate to plaintiffs amending their complaint to include a claim regarding the alleged breach of a confidentiality agreement between Sun and Cot’n Wash. (Civ. No. 12-651, D.I. 153 at 2; Civ. No. 12-651, D.I. 154, ex. B) On September 9, 2013, Sun agreed to the amendment as long as plaintiffs allowed Sun to amend its answer, affirmative defenses, and counterclaims within one month of the close of fact discovery and to postpone consideration of the breach of confidentiality claim until the willfulness and damages phase of litigation. [619]*619(Civ. No. 12-651, D.I. 154, ex. B) On October 10-11, 2013, plaintiffs agreed to stay the breach of contract claim but did not agree to Sun’s proposed stipulation to amend its answer and counterclaims. (Id., ex. D at 2-3)

On October 7, 2013, Sun interviewed Thomas Cicini, a former employee of Dick-ler Chemical, the original assignee of the '319 patent. (See id., ex. I) Through this interview, Sun became aware of evidence to state a claim of inequitable conduct against plaintiffs; specifically, that Mr. Ci-cini should have been named as an inventor of the ’319 patent, that he demonstrated the product claimed in the ’319 patent publicly more than one year prior to the filing of the patent, and that relevant prior art that was not disclosed in the ’319 patent application was available at Diekler Chemical prior to the filing of the patent. (See id.; see also Civ. No. 12-651, D.I. 163, ex. C)4

3. Interactions among the parties regarding new counterclaims

On October 15, 2013, Sun emailed plaintiffs its proposed amended answer and counterclaims, including new counterclaims of inequitable conduct and false marking. (Civ. No. 12-651, D.I. 154, ex. D at 2) Sun stated it would agree to plaintiffs’ amended complaint if plaintiffs consented to Sun’s amended answer and counterclaims. (Id.) On October 25, 2013, plaintiffs proposed staying the new counterclaims until the damages phase of litigation. (Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
56 F. Supp. 3d 613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cotn-wash-inc-v-henkel-corp-ded-2014.