Engate, Inc. v. Esquire Deposition Services, L.L.C.

331 F. Supp. 2d 673, 2004 U.S. Dist. LEXIS 16659, 2004 WL 1858401
CourtDistrict Court, N.D. Illinois
DecidedAugust 20, 2004
Docket01 C 6204
StatusPublished
Cited by2 cases

This text of 331 F. Supp. 2d 673 (Engate, Inc. v. Esquire Deposition Services, L.L.C.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Engate, Inc. v. Esquire Deposition Services, L.L.C., 331 F. Supp. 2d 673, 2004 U.S. Dist. LEXIS 16659, 2004 WL 1858401 (N.D. Ill. 2004).

Opinion

AMENDED MEMORANDUM OPINION AND ORDER 1

KENNELLY, District Judge.

Engate, Inc. holds the rights to several patents covering certain functions that can be used by court reporters and attorneys to enhance the utility of real-time transcription services. Engate sued several court reporting services, including the only two remaining defendants, Esquire Deposition Services, L.L.C., and Atkinson-Baker, Inc., alleging that they infringed the patents. The Court has construed several disputed elements of the patents, such as what “real time” means. Engate, Inc. v. Esquire Deposition Services, L.L.C., No. 01 C 6204, 2003 WL 223306 (N.D.Ill. Jan. 30, 2003) (defining “real time” to mean “as instantaneously as possible, limited by the ability of the reporter to transcribe text, the ability of the [computer-aided transcription] system to convert the transcribed text into readable text, and the ability of the software/hardware that is directly connected to the transcription means to display the converted text”).

The defendants sought partial summary judgment on Engate’s claim of direct infringement, and the Court granted the motion, finding the defendants could not be held vicariously liable for any infringement by independent contractor court reporters who provide the bulk of the defendants’ deposition services. Engate, Inc. v. Esquire Deposition Services, L.L.C., 236 F.Supp.2d 912 (N.D.Ill.2002). The Court subsequently granted the defendants’ motion for summary judgment on Engate’s claim that the defendants’ employee court reporters infringed Engate’s patents, holding Engate had failed to offer any evidence that the employees “have actually performed the feature functionalities disclosed in Engate’s patents.” Engate, Inc. v. Esquire Deposition Services, L.L.C., No. 01 C 6204, 2003 WL 22117805, at *8 (N.D.Ill. Sept. 10, 2003). Most recently, the Court granted the defendants’ motion for summary judgment on Engate’s claim that the defendants induced court reporters and lawyers to directly infringe Engate’s patents. Engate, Inc. v. Esquire Deposition Services, L.L.C., 01 C 6204, 2004 WL 609800 (N.D.Ill. March 26, 2004).

Although all of Engate’s claims against the defendants have been adjudicated, the case remains before the Court on two counterclaims filed by the defendants. The first counterclaim alleges that twenty-two of the twenty-six claims Engate contended the defendants had infringed are *678 invalid because, among other reasons, they were in public use, on sale or described in a printed publication at least one year before Engate filed its patent applications. See 35 U.S.C. § 102(b). The second counterclaim — filed exclusively by Esquire — alleges in essence that Engate sued the defendants for infringement, knowing it could not prove its case, in hopes of forcing the defendants to sign licensing agreements with Engate to avoid costly litigation. Engate asks the Court to dismiss Esquire’s unfair competition claim. Esquire, in turn, has moved for summary judgment on its unfair competition claim and, with Atkinson-Baker, seeks summary judgment on the invalidity claim. For the reasons explained below, the Court grants in part and denies in part the defendants’ motion for summary judgment as to their counterclaim of invalidity. The Court grants Engate’s motion to dismiss Esquire’s unfair competition claim and denies Esquire’s motion for summary judgment on the same claim.

Standard of Review

As we have stated previously, summary judgment is appropriate in a patent case, as in any other case, “ ‘where the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.’ ” C.R. Bard, Inc. v. Advanced Cardiovascular Systems, Inc., 911 F.2d 670, 672 (Fed.Cir.1990) (quoting Fed.R.Civ.P. 56(c)). In assessing a summary judgment motion, the Court’s “function is not to weigh the evidence but merely to determine if ‘there is a genuine issue for trial.’ ” Bennett v. Roberts, 295 F.3d 687, 694 (7th Cir.2002) (citation omitted). The Court evaluates admissible evidence in the record in the light most favorable to the nonmoving party. Chiuminatta Concrete Concepts, Inc. v. Cardinal Industries, Inc., 145 F.3d 1303, 1307 (Fed.Cir.1998). But “[t]he non-movant will successfully oppose summary judgment only when it presents ‘definite, competent evidence to rebut the motion.’ ” Vukadinovich v. Board of School Trustees of North Newton School Corp., 278 F.3d 693, 699 (7th Cir.2002) (citation omitted). The Court must keep in mind that “[t]he purpose of the summary process is to avoid a clearly unnecessary trial; it is not designed to substitute lawyers’ advocacy for evidence, or affidavits for examination before the fact-finder, when there is a genuine issue for trial.” Continental Can Co. USA v. Monsanto Co., 948 F.2d 1264, 1265 (Fed.Cir.1991) (citations omitted).

Invalidity

The Court must presume Engate’s patents are valid. 35 U.S.C. § 282. “The statutory presumption of validity under 35 U.S.C. § 282 puts the burden of proving invalidity on the party asserting it and the burden never shifts to the patentee.” Sinskey v. Pharmacia Ophthalmics, Inc., 982 F.2d 494, 498 (Fed.Cir.1992) (citing Stratoflex, Inc. v. Aeroquip Corp., 713 F.2d 1530, 1534 (Fed.Cir.1983)). The presumption of validity “can be overcome only through clear and convincing evidence.” Eli Lilly & Co. v. Barr Laboratories, Inc., 251 F.3d 955, 962 (Fed.Cir.2001) (citing U.S. Surgical Corp. v. Ethicon, Inc., 103 F.3d 1554, 1563 (Fed.Cir.1997)). “Thus, a moving party seeking to invalidate a patent at summary judgment must submit such clear and convincing evidence of invalidity so that no reasonable jury could find otherwise.” Id.

The defendants argue that twenty-two claims in Engate’s patents are invalid because they were in public use, on sale or described in a printed publication at least one year before Engate filed its patent applications. The defendants’ argument is based on 35 U.S.C. § 102

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331 F. Supp. 2d 673, 2004 U.S. Dist. LEXIS 16659, 2004 WL 1858401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/engate-inc-v-esquire-deposition-services-llc-ilnd-2004.