Everlight Electronics Co. v. Nichia Corp.

907 F. Supp. 2d 866, 2012 WL 5389696, 2012 U.S. Dist. LEXIS 157379
CourtDistrict Court, E.D. Michigan
DecidedNovember 2, 2012
DocketCivil Action No. 12-cv-11758
StatusPublished

This text of 907 F. Supp. 2d 866 (Everlight Electronics Co. v. Nichia Corp.) 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
Everlight Electronics Co. v. Nichia Corp., 907 F. Supp. 2d 866, 2012 WL 5389696, 2012 U.S. Dist. LEXIS 157379 (E.D. Mich. 2012).

Opinion

[868]*868 OPINION AND ORDER GRANTING NICHIA CORPORATION’S MOTION TO DISMISS EVERLIGHT’S CLAIMS FOR DECLARATORY JUDGMENT OF UNENFORCEABILITY OF NICHIA’S PATENTS L#24]

GERSHWIN A. DRAIN, District Judge.

I. Introduction

Plaintiff, Everlight Electronics Co., Ltd. (“Everlight”), filed the instant action seeking a declaratory judgment of non-infringement, invalidity, and unenforceability of Defendant Nichia Corporation’s (“Nichia”) United States Patent Nos. 5,998,925 (the “ '925 Patent”) and 7,531,960 (the “ '960. Patent”) pursuant to the Declaratory Judgment Act, 28 U.S.C. §§ 2201 and 2202, and the patent laws of the United States, 85 U.S.C. § 1 et seq. Everlight and Plaintiff Emcore Corporation (“Em-core”) also seek a judgment of infringement against Nichia and its subsidiary, Defendant Nichia America Corporation (“Nichia America”),1 of United States Patent No. 6,653,215 (the “ '215” Patent”) pursuant to 35 U.S.C. §§ 271 and 281, and damages resulting therefrom.

Presently before the court is Nichia’s motion to dismiss Everlight’s claims for declaratory judgment of unenforceability of Nichia’s '925 and '960 Patents (the “patents-in-suit”), counts III and VI of the Amended Complaint.2 Nichia argues that Everlight is unable to raise any meritorious defenses to its infringement of Nichia’s patents-in-suit — two patents in Nichia’s patent portfolio encompassing the field of high brightness LED technology. Therefore, Everlight resorts to the “common litigation tactic” of alleging inequitable conduct during procurement of Nichia’s patents-in-suit to support its contention that the patents are unenforceable. Due to the abusive use of this defense, the Federal Circuit recently tightened the pleading standards for alleging inequitable conduct in Exergen Corp. v. WalMart Stores, Inc., 575 F.3d 1312 (Fed.Cir.2009) and Therasense, Inc. v. Becton, Dickinson & Co., 649 F.3d 1276 (Fed.Cir.2011).

Nichia contends that Everlight’s inequitable conduct allegations are the type of overplayed and overblown allegations that Therasense and Exergen sought to curb by tightening the standard for alleging inequitable conduct. Thus, dismissal of these claims is warranted out of fairness to Nichia so that this matter can proceed without the additional cost and distraction of Ever-light’s malicious allegations. Pursuant to this court’s local rules, it is hereby ordered that the motions be resolved on the briefs submitted. See E.D. Mich. L.R. 7.1(f)(2)

II. Factual Background

Everlight is a corporation organized and existing under the laws of Taiwan and it is a leading manufacturer of light-emitting diode (“LED”) products with customers around the world. See Am. Comp., ¶ 1,12. Nichia, a Japanese corporation, is also in the business of manufacturing and supplying LED products. Id., ¶ 3, 13.

The '925 Patent was issued on December 7, 1999 to assignee Nichia and is entitled “Light Emitting Device Having a Ni[869]*869tride Compound Semiconductor and a Phosphor Containing a Garnet Fluorescent Material,” listing Yoshinori Shimizu, Kensho Sakano, Yasunobu Noguchi, and Toshio Moriguchi as the inventors of the patent. Id., ¶ 9. The '960 Patent was issued on May 12, 2009 to assignee Nichia and is entitled “Light Emitting Device with Blue Light LED and Phosphor Components,” and names Yoshinori Shimzu, Kensho Sakano, Yasunobu Noguchi, and Toshio Moriguchi as the inventors of the patent. Id., ¶ 10. The '925 Patent is the parent of the '960 Patent, and the '960 Patent is a division of the application that resulted in the '925 Patent. Id., ¶ 18. Plaintiff Emcore is the owner by assignment, and Everlight is the exclusive licensee, of the '215 Patent, issued on November 25, 2003, entitled “Contact to N-GaN with Au Termination.”3 Id., ¶ 11.

Plaintiffs allege that in 2005, Nichia began systematically and aggressively pursuing Everlight and its customers through litigation in various forums, including courts in the United States, as well as in Japan, Germany, and Taiwan alleging infringement of Nichia’s Japanese Patent No. 4530094, a Japanese counterpart of the '960 Patent, and infringement of Nichia’s European Patent No. EP 0936682, a European counterpart of the '925 Patent. Id., ¶¶ 14-16, 22, 27-29. Nichia has also filed patent infringement actions concerning Niehia’s patents-in-suit against manufacturers, users, and/or distributors of competitive LED products in the United States. Id., ¶ 22. Additionally, Everlight has initiated over 20 patent reexamination proceedings concerning Nichia’s patents-in-suit, which are currently pending in several different countries. Id., ¶21. According to Everlight, Nichia’s systematic and aggressive pursuit of Everlight, its customers and other third parties in the LED industry through litigation has created a substantial and immediate dispute between Everlight and Nichia’s patents-in-suit.

III. Law & Analysis

A. Standard of Review

Federal Rule of Civil Procedure 12(b)(6) allows the court to make an assessment as to whether the plaintiff has stated a claim upon which relief may be granted. See Fed.R.Civ.P. 12(b)(6). “Federal Rule of Civil Procedure 8(a)(2) requires only ‘a short and plain statement of the claim showing that the pleader is entitled to relief,’ in order to ‘give -the defendant fair notice of what the ... claim is and the grounds upon which it rests.’ ” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (citing Conley v. Gibson, 355 U.S. 41, 47, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957)). Even though the complaint need not contain “detailed” factual allegations, its “factual allegations must be enough to raise a right to relief above the speculative level on the assumption that all of the allegations in the complaint are true.” Ass’n of Cleveland Fire Fighters v. City of Cleveland, 502 F.3d 545, 548 (6th Cir.2007) (quoting Bell Atlantic, 550 U.S. at 555, 127 S.Ct. 1955).

The court must construe the complaint in favor of the plaintiff, accept the allegations of the complaint as true, and determine whether plaintiffs factual allegations present plausible claims.

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Related

Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Exergen Corp. v. Wal-Mart Stores, Inc.
575 F.3d 1312 (Federal Circuit, 2009)
Therasense, Inc. v. Becton, Dickinson and Co.
649 F.3d 1276 (Federal Circuit, 2011)
Application of Walter L. Borkowski and John J. Van Venrooy
422 F.2d 904 (Customs and Patent Appeals, 1970)
Application of Jean Clement Louis Fouche
439 F.2d 1237 (Customs and Patent Appeals, 1971)

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907 F. Supp. 2d 866, 2012 WL 5389696, 2012 U.S. Dist. LEXIS 157379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/everlight-electronics-co-v-nichia-corp-mied-2012.