Cyntec Company, Ltd. v. Chilisin Electronics Corp.

District Court, N.D. California·Decided May 6, 2022·No. 3:18-cv-00939·Unknown

Opinion

Case No. 18-cv-00939-PJH Plaintiff,

v. ORDER RE POST-TRIAL MOTIONS

CHILISIN ELECTRONICS CORP., et al., Re: Dkt. Nos. 285, 286, 288, 294 Defendants.

Before the court are the post-trial motions filed by the parties in the above- captioned case. Defendants Chilisin Electronics Corp. and Chilisin America Ltd. (collectively “Chilisin”) filed a renewed motion for judgment as a matter of law under Rule 50(b) (Dkt. 285) and a motion for a new trial under Rule 59 (Dkt. 286). Plaintiff Cyntec Company Ltd. (“Cyntec”) filed a motion for permanent injunction and enhanced damages (Dkt. 288). Chilisin also filed a motion to seal in connection with its opposition to Cyntec’s motion for permanent injunction and enhanced damages (Dkt. 294). The matters are fully briefed and suitable for resolution without oral argument. Having read the papers filed by the parties and carefully considered their arguments and the relevant legal authority, and good cause appearing, the court rules as follows. This is a patent case, in which Cyntec filed suit against Chilisin for infringement of patents relating to electronic chokes. After a seven-day trial, a jury returned a verdict in Cyntec’s favor, finding that Chilisin willfully infringed every asserted claim of the patents- namely, $1,552,493 in lost profits and $320,463 in reasonable royalties, for a total damages award of $1,872,956. See id. Before the court are the parties’ post-trial motions, as described above. Chilisin’s renewed motion for judgment as a matter of law under Rule 50 (Dkt. 285) A. Legal standard Judgment as a matter of law is appropriate when “a party has been fully heard on an issue during a jury trial and the court finds that a reasonable jury would not have a legally sufficient evidentiary basis to find for the party on that issue ....” Fed. R. Civ. P. 50(a)(1); see also Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 149 (2000). A party must make a motion for judgment as a matter of law under Rule 50(a) before a case is submitted to the jury. If the judge denies or defers ruling on the motion, and if the jury then returns a verdict against the moving party, the party may renew its motion under Rule 50(b). In ruling on the renewed motion, the court may either “allow judgment on the verdict, if the jury returned a verdict,” or “order a new trial,” or “direct the entry of judgment as a matter of law.” Fed. R. Civ. P. 50(b). The standard for judgment as a matter of law “mirrors” that for granting summary judgment. Reeves, 530 U.S. at 150. The court “should review all of the evidence in the record,” but “may not make credibility determinations or weigh the evidence.” Id.; see also Josephs v. Pac. Bell, 443 F.3d 1050, 1062 (9th Cir. 2006). The court should give credence to the evidence favoring the non-moving party, as well as that evidence supporting the moving party that is uncontradicted and unimpeached, to the extent that it comes from disinterested witnesses. Reeves, 530 U.S. at 151. The test applied is whether the evidence permits only one reasonable conclusion, and that conclusion is contrary to the jury's verdict. Josephs, 443 F.3d at 1062. The verdict must be upheld if the evidence is adequate to support the jury’s conclusion, even if it is also possible to draw a contrary conclusion from the same evidence. Johnson v. not substitute its view of the evidence for that of the jury.” Id. (citing Gilbrook v. City of Westminster, 177 F.3d 839, 856 (9th Cir. 1999)). Because it is a renewed motion, a proper post-verdict Rule 50(b) motion is limited to the grounds asserted in the pre-deliberation Rule 50(a) motion. Thus, a party cannot properly “raise arguments in its post-trial motion for judgment as a matter of law under Rule 50(b) that it did not raise in its pre-verdict Rule 50(a) motion.” EEOC v. Go Daddy Software, Inc., 581 F.3d 951, 961 (9th Cir. 2009) (citing Freund v. Nycomed Amersham, 347 F.3d 752, 761 (9th Cir.2003)). While Rule 50(b) “may be satisfied by an ambiguous or inartfully made motion” under Rule 50(a), a party must still put the opposing party and the court on adequate notice of the basis for its motion. See Go Daddy Software, 581 F.3d at 961; Freund, 347 F.3d at 761. B. Analysis 1. Infringement a. Specific accused products Chilisin’s first argument is that the court should enter judgment as a matter of law “on products Cyntec did not analyze.” Dkt. 285 at 8. Specifically, Chilisin argues that fourteen of the 310 accused products contain at least one powder that Cyntec did not test. See Dkt. 25 at 8. Cyntec first responds that Chilisin has waived its argument with respect to the fourteen accused products in question by not raising it as part of its original Rule 50(a) motion. See Dkt. 297 at 8 (citing Trial Transcript (Trial Tr.) at 866:1-879:21, 1260:10- 1262:23). Cyntec further argues that Chilisin’s argument fails on the merits, because Cyntec’s expert, Dr. Paul Kohl, testified that he analyzed the characteristics of all accused products, including the fourteen products in Chilisin’s motion. The court agrees that Chilisin’s Rule 50(a) motion did not raise the issue of whether Cyntec failed to test powders included in fourteen of the accused products. Chilisin’s “renewed” Rule 50(a) motion on August 31, 2021 raise the issue. See Trial Tr. vol. 5 (Dkt. 260) at 866-81; vol. 7 (Dkt. 266) at 1260-63. Accordingly, this argument is waived and may not be raised on this renewed motion under Rule 50(b). See Freund, 347 F.3d at 761. Moreover, even if the court were to consider the merits of Chilisin’s motion on this issue, giving credence to the evidence of the non-moving party, Chilisin has not shown that the evidence permits only one reasonable conclusion, and that conclusion is contrary to the jury's verdict. As Cyntec argued, its expert testified that he reviewed the material specifications for each of the powders used in the accused products, and that “the larger alloy powder is harder in every case than the smaller iron powder.” See Trial Tr. vol. 3 (Dkt. 255) at 378:25-379:2, 404:1-19. Accordingly, Chilisin’s renewed motion for judgment as a matter of law is DENIED as to its argument that Cyntec did not prove infringement for fourteen of the accused products. b. Infringement of the ’037 patent by direct sales Next, Chilisin argues that the court should grant judgment as a matter of law that direct sales do not infringe the ’037 patent. See Dkt. 285 at 9. Chilisin argues that the ’037 patent is a method patent, and that “there is no dispute Chilisin manufactures the accused chokes entirely outside of the United States,” and “thus Cyntec’s only viable theory at trial was that Chilisin induced others to import chokes.” Id. Chilisin’s argument relies on a quotation from Cyntec’s counsel during trial stating that “with regard to the ’037 patent, we are only asserting induced infringement.” See Dkt. 285 at 9 (citing Trial Tr. vol. 5 at 868:23-869:3). However, the full trial transcript shows that Cyntec’s counsel corrected himself, stating “with regards to the ’037 patent . . . we did assert [direct] infringement under 271(g) in our infringement contentions, just to be clear.” See Trial Tr. vol. 5 (Dkt. 260) at 869:18-23. Cyntec’s opposition brief further argues that, after the hea

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Cyntec Company, Ltd. v. Chilisin Electronics Corp., (N.D. Cal. 2022).

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