Fuji MacHine Manufacturing Co. v. Hover-Davis, Inc.

60 F. Supp. 2d 111, 1999 U.S. Dist. LEXIS 13090, 1999 WL 668899
CourtDistrict Court, W.D. New York
DecidedAugust 23, 1999
Docket6:96-cv-06087
StatusPublished
Cited by1 cases

This text of 60 F. Supp. 2d 111 (Fuji MacHine Manufacturing Co. v. Hover-Davis, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fuji MacHine Manufacturing Co. v. Hover-Davis, Inc., 60 F. Supp. 2d 111, 1999 U.S. Dist. LEXIS 13090, 1999 WL 668899 (W.D.N.Y. 1999).

Opinion

DECISION AND ORDER

LARIMER, Chief Judge.

This is a patent infringement action. Plaintiff, Fuji Machine Manufacturing Co., Ltd. (“Fuji”), commenced this action pursuant to 35 U.S.C. §§ 271 and 281 against Hover-Davis, Inc. (“Hover-Davis”), alleging that HD has infringed Patent No. 4,740,136 (“the ’136 patent”), which is held by Fuji. Several motions are now pending before the court. Fuji has filed a motion for summary judgment in its favor on the issue of infringement, and a separate motion for summary judgment seeking dismissal of Hover-Davis’s repair defense and its implied-license defense. Hover-Davis has also moved for summary judgment and for attorney’s fees.

FACTUAL BACKGROUND

The T36 patent is directed to tape feeders for chip placement machines. These machines produce circuit boards by removing electronic components, or chips, from their packaging and placing them on blank circuit boards. The chips come packaged in “carrier tapes,” which have pockets on them containing the individual chips. A strip of film on the outside of the carrier tape holds the chips in place. Each tape is wound on a reel, and may contain hundreds or thousands of chips.

Each chip placement machine contains a number of tape feeders. Each feeder unwinds a single carrier tape reel, removes the cover film to expose the pockets containing the chips, and positions the exposed pockets under suction members of the chip placement machine. The suction members then pick the components out of the carrier tapes and place them in the proper locations on the blank circuit boards.

The T36 patent includes apparatus claims 9-12 and method claims 1-8 (4-6 of which are not relevant to this case). The apparatus claims relate to an apparatus for removing electronic components from carrier tapes, specifically, the tape feeder described in the ’136 patent in combination with a suction member of a chip placement machine (neither the tape feeder, the suction member, nor the chip placement machine is separately patented). The method claims describe how this combination is used to remove the components from the carrier tapes.

Both Fuji and Hover-Davis manufacture tape feeders that are designed to be used in conjunction with certain Fuji chip placement machines. Fuji’s products are called “CP” tape feeders and chip placement machines, and Hover-Davis’s tape feeders are named “HDF” tape feeders. Fuji alleges that by selling the HDF tape feeders, Hover-Davis is infringing the ’136 patent in a number of ways. First, Fuji alleges, the *113 sale of and offers to sell the HDF feeders are acts of contributory infringement under 35 U.S.C. § 271(c) because the HDF tape feeders are: (1) a component of a patented combination, ie. the tape feeder and a suction member as defined by claims 9-12; (2) a material apparatus used to practice a patented process, ie., the method of using a tape feeder and suction member described in claims 1, 2, 3, 7 and 8; (3) a material part of the patented combination and process; and (4) not a staple article or commodity of commerce suitable for substantial noninfringing use, because the HDF feeders can only be used on a Fuji CP chip placement machine. Fuji also alleges that Hover-Davis has induced others to infringe claims of the ’136 patent through its sale, promotion, marketing, maintenance and service of the HDF tape feeders, in violation of 35 U.S.C. § 271(b).

DISCUSSION

I. Laches/Equitable Estoppel

Two of the primary bases for Hover-Davis’s motion for summary judgment dismissing Fuji’s complaint are its assertions that Fuji should be barred from bringing this action both by reason of laches and by the principle of equitable estoppel. According to Hover-Davis, Fuji waited an inordinately long time to commence this action, and in fact affirmatively led Hover-Davis to believe that Fuji did not consider Hover-Davis’s manufacture and sale of its HDF tape feeders to violate the ’136 patent.

Factual Contentions

Hover-Davis alleges that Fuji became aware of Hover-Davis’s intentions to sell tape feeders compatible with Fuji chip placement machines as early as 1991, but it took no steps to enforce its patent until late 1995. Hover-Davis and Fuji had had some prior contacts, dating back to about early 1990, relating to Hover-Davis’s development of “C-PAK” conversion kits, which were designed to modify tape feeders to accomodate a different type of carrier tape than had been used previously (the C-PAK products are not at issue in this lawsuit). Apparently Fuji had cooperated with Hover-Davis to some extent in the design of the C-PAK conversions, which presumably enhanced the usefulness, and therefore the marketability, of Fuji’s machines.

In a letter dated March 3, 1991, Hover advised Iwao Yamaguchi, who was then the president of Fuji America, that Hover-Davis had “introduced a feeder that is compatible with the [Fuji] CP series machine,” and that Hover “would like the opportunity to discuss the option of marketing this feeder through Fuji America.” John D. Hover Affidavit (Item 54) Ex. I. Hover and Yamaguchi apparently met on April 8, 1991, for in a letter dated April 12, 1991, referencing that meeting, Hover stated that Hover-Davis had “decided that it is our preference to continue to market a HOYER-DAVIS feeder product.” Id. Ex. J. Hover said that because Hover-Davis has “spent two years and considerable expense in developing” its feeder, “it is the opinion of HOVER-DAVIS that no monetary compensation should be forthcoming related to copying the Fuji design. However, we would agree to negotiate a level of monetary compensation for the cooperation in future development of feeders for the [Fuji] machines. The level of compensation would be tied to HOVER-DAVIS [Fuji-] compatible feeder sales only and directly related to the level of cooperation agreed upon.” Id. Hover added that Hover-Davis “would also like to explore the possibility of marketing our feeders through the Fuji manufacturing rep groups already established.” Id.

At some point in this process, Yamagu-chi advised Hover of the existence of the ’136 patent. Hover then contacted Howard Greenwald, Esq., an attorney who had done a patent infringement search for Hover in October 1989, when Hover was first considering developing a Fuji-compatible tape feeder. Greenwald’s prior report noted the ’136 patent, but concluded, with *114 out extensive discussion, that Hover-Davis’s “manufacture or sale of your device would not infringe any of the claims of this patent,” and that a “customer’s reconstruction and/or use of a modified Fuji CP-II machine also would not infringe the claims of this patent.” Id. Ex. D.

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60 F. Supp. 2d 111, 1999 U.S. Dist. LEXIS 13090, 1999 WL 668899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fuji-machine-manufacturing-co-v-hover-davis-inc-nywd-1999.