Daneshvar v. Kipke

266 F. Supp. 3d 1031
CourtDistrict Court, E.D. Michigan
DecidedJuly 19, 2017
DocketCase No. 2:13-cv-13096
StatusPublished
Cited by4 cases

This text of 266 F. Supp. 3d 1031 (Daneshvar v. Kipke) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daneshvar v. Kipke, 266 F. Supp. 3d 1031 (E.D. Mich. 2017).

Opinion

OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS11 MOTION FOR SUMMARY JUDGMENT [134]

STEPHEN J. MURPHY, III, United States District Judge

The case concerns a dispute between a former student at the University of Michigan and his faculty advisor. Plaintiff Eugene Daneshvar alleges that Defendant Daryl Kipke stole and patented Danesh-var’s idea for a device used to facilitate deep brain stimulation. Neuronexus Technologies — a company founded by Kipke that researches and patents medical devices — is a co-defendant. Daneshvar brought an action for correction of inven-torship and also raised three tort claims: fraud, breach of fiduciary duty, and unjust enrichment. Defendants raised a counterclaim seeking a declaratory judgment that Daneshvar is not an inventor of the disputed patent, and Kipke raised a counterclaim for defamation. Mediation was attempted and failed and. Defendants now move for summary judgment. The Court will grant the motion in part and deny it in. part.

BACKGROUND

I. Intellectual Property at the University of Michigan

Significant amounts of intellectual property are created at the University of Michigan and the various colleges within it. Accordingly, the University has a host .of rules, policies,; and institutions to determine ownership of the property and facilitate its transfer. The Board of Regents governs the University,as a whole and sets its rules and policies. ECF 134-2, ¶¶ 5-6, 8. The Regents adopted or approved two documents relevant to the case: the Bylaws of the Board of Regents and the University of Michigan Standard Practice Guide (“SPG”). Id. ¶¶6, 8. Section 3.10 of the Bylaws governs the ownership of patents and other property and SPG Number 303.4 (“the Policy”) implements Section 3.10. ECF 134-4, PgID 6518.

The University’s Office of Technology Transfer (“OTT”) administers the Policy and periodically updates it. Id. For instance, one version of the Policy took effect January 1, 2007, and another version was issued in 2009. ÉCF 134-2, ¶¶8-9. The Policy “is applicable to all units of the University including its colleges, schools, departments, centers, institutes, and hospitals, and to- all of its Employees.” ECF 134-4, PgID 6518. The Policy defines an “employee” as:

a person who receives a salary or other' consideration ‘from the University for performance of' services, part-time or full time. A University employee with less than a full year (e.g., 9-month) appointment shall be considered1 an “Employee” for acts during a period of appointment. A student that is compensated1 ■ (e.g., financially through a stipend, tuition, etc., including graduate student research assistants and graduate student instructors) is considered an Employee under this Policy.

Id. at 6522-23. A “student” is defined as “a person enrolled in University courses for credit except when that person is an Employee.” Id. at 6519.

The Policy also defines “intellectual property” and “inventor.” Intellectual property under the Policy means “inventions, processes, compositions, life forms, [1038]*1038computer software, copyrighted works, mask works, research tools and data, certain defined trade and service marks, Tangible Materials, and legal rights to the same.” Id. at 6523. In the patent context, an “inventor” is “an Employee who has made an inventive contribution to the Intellectual Property as defined under U.S. patent laws, meaning that an Inventor must have contributed to the conception of ideas claimed in a patent.” Id.

Additionally, the Policy explains what intellectual property is owned by the University and the steps creators of intellectual property should take. On ownership, it states:

Intellectual Property made (e.g., conceived or first reduced to practice) by any person, regardless of employment status, with the direct or indirect support of funds administered by the University (regardless of the source of such funds) shall be the property of the University, except as provided by this or other University policy. Funds administered by the University include University resources, and funds for employee compensation, materials, or facilities.

Id. at 6518. In regard to intellectual property created by students, the Policy also notes that, although the University “will not generally claim ownership of Intellectual Property created by Students,” it “does claim ownership of Intellectual Property created by students in their capacity as Employees or with direct or indirect support of funds administered by the University.” Id. at 6519. In those cases, “students shall be considered to be Employees for the purposes of this Policy.” Id. Employees are directed to disclose their creations and co-inventors to OTT even when they believe the creations are not owned by the University. Id.

Finally, section IV of the Policy addresses commercialization of intellectual property. That section contemplates that the University will sometimes transfer ownership of its intellectual property and explains who makes transfer decisions. Pursuant to the Policy, OTT, “[i]n consultation with Inventors, ... [has] authority for decisions concerning the route of commercializing or transferring a particular Intellectual Property, as well as the selection and use of outside resources, including outside legal counsel, to assist in commercialization.” Id. at 6520. OTT also has the “authority for those agreements that are primarily transfer of University-owned ... patent rights[.]” Id. “Responsibility for patent administration, including the retention of patent counsel, is shared by OTT and the Offices of the Vice President for Research and the General Counsel.” Id.

II. Timeline

200J/.-2007: NeuroNexus and its Patents

Sometimes, the creation of intellectual property at the University results in spinoff companies. For example, NeuroNexus “was formed in 2004 to commercialize neural probe technologies that were developed in the College of Engineering at Michigan.” ECF 134-28, PgID 6695. Prior to 2007, Kipke and others at NeuroNexus secured various patents in the neural-probe field. See generally ECF 134-16, PgID 6576-88.

NeuroNexus’s patents would sometimes build on their previous work. According to Jamille Hetke, a NeuroNexus employee, in 2005 the NeuroNexus team was in the early stages of developing what it called a “Deep Brain Mapping Array'’ or “DBMA.” ECF 134-16, ¶ 14. That work led to another idea, the “Deep Brain Stimulating Array” or “DBSA,” in 2006. Id. ¶19. The DBSA is a “neural interface system” where the electrode sites are arranged circumferentially and axially around and along a cylindrical carrier. ECF 134-29.

[1039]*1039On February 26, 2007, members of the NeuroNexus team filed a patent application for the DBSA concept, which was assigned number 60/891,641 (the ’641 application). EOF 134-28. The ’641 application would lead to the issuance of Patent No. 8,731,673 (the ’673 patent) seven years later, ECF 134-29, but a great deal happened in the interim.

Summer 2007: Daneshvar Has An Idea and Shares It

In 2006 and early 2007, Eugene Danesh-var was a student pursuing a master’s degree in Biomedical Engineering, from the University of Michigan College of Engineering.

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Bluebook (online)
266 F. Supp. 3d 1031, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daneshvar-v-kipke-mied-2017.