Grantley Patent Holdings, Ltd. v. Clear Channel Communications, Inc.

540 F. Supp. 2d 724, 2008 WL 901175, 2008 U.S. Dist. LEXIS 25583
CourtDistrict Court, E.D. Texas
DecidedMarch 31, 2008
DocketCivil Action 9:06CV259
StatusPublished
Cited by4 cases

This text of 540 F. Supp. 2d 724 (Grantley Patent Holdings, Ltd. v. Clear Channel Communications, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grantley Patent Holdings, Ltd. v. Clear Channel Communications, Inc., 540 F. Supp. 2d 724, 2008 WL 901175, 2008 U.S. Dist. LEXIS 25583 (E.D. Tex. 2008).

Opinion

ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT OF NO INEQUITABLE CONDUCT

RON CLARK, District Judge.

Plaintiff Grantley Patent Holdings, Ltd. moves for summary judgment on the inequitable conduct claims advanced by Defendants (collectively referred to as “Clear Channel”), arguing that Clear Channel has produced no evidence of materiality or intent to deceive. Inequitable conduct must be proven by clear and convincing evidence. Clear Channel has provided scant evidence of the failure to disclose material information or of submission of false information, and virtually no evidence of intent to deceive. Under the governing eviden-tiary standard, this exiguous record demonstrates no genuine issue of material fact regarding the inequitable conduct claims. Grantley’s motion for summary judgment is granted.

I. Background

The patents-in-suit generally relate to methods and systems of integrating a radio station’s traffic-billing and yield management systems, as well as inventory management and revenue projection. 1 Each patent claims different aspects of the disclosed systems and methods. All four patents share the same specification, and are all continuations-in-part of an earlier application, 09/143,586. The '586 application was filed on August 31, 1998 with a provisional application date of January 2, 1998. .The '586 application eventually issued as U.S. Patent No. 6,260,047, which is not asserted by Grantley in this suit.

II. Standard of Review for Summary Judgment

The party moving for summary judgment under Fed.R.Civ.P. 56 has the initial burden of demonstrating that there is no genuine issue as to any material fact and that it is entitled to judgment as a matter of law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 256, 106 S.Ct. 2505, 2514, 91 L.Ed.2d 202 (1986). Movant may show that the undisputed material facts affirmatively establish a right to judgment. Alternatively, movant may establish that the other party has the burden of proof at trial, and has failed to “make a showing sufficient to establish the existence of an element essential to [its] case.” Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986).

In order to avoid summary judgment, the party opposing the motion must come forward with competent summary judgment evidence of the existence of a genuine fact issue. See Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 585-86, 106 S.Ct. 1348, 1355, 89 L.Ed.2d 538 (1986); Anderson, 477 U.S. at 257, 106 S.Ct. at 2514. The nonmoving party “must do more than simply show that there is some metaphysical doubt as to the material facts.” Matsushita, 475 U.S. at 586, 106 S.Ct. at 1356. Fed.R.Civ.P. 56 requires Clear Channel set forth specific facts showing that there is a genuine issue for trial. Anderson, 477 U.S. at 256, 106 S.Ct. at 2514. Only a genuine dispute over a material fact (a fact which might affect the outcome of the suit under the governing substantive law) will *728 preclude summary judgment. Anderson, 477 U.S. at 248, 106 S.Ct. at 2510. The dispute in this case is genuine if the evidence is such that a reasonable jury, properly instructed on the clear and convincing evidentiary standard, could return a verdict for Clear Channel on the issue of inequitable conduct. Anderson, 477 U.S. at 255, 106 S.Ct. at 2514 (“determination of whether a given factual dispute requires submission to á jury must be guided by the substantive evidentiary standards that apply to the case.”). If the factual context renders a claim implausible (for example if the claim simply makes no economic sense) nonmovants “must come forward with more persuasive evidence to support their claim than would otherwise be necessary.” Matsushita, 475 U.S. at 587, 106 S.Ct. at 1356.

Fed.R.Civ.P. 56(c) requires the court to look at the full record, including the pleadings, depositions, answers to interrogatories, admissions, and affidavits. All reasonable inferences to be drawn from the underlying facts must be viewed in the light most favorable to the party opposing the motion, and any doubt must be resolved in its favor. Matsushita, 475 U.S. at 587, 106 S.Ct. at 1356. Only reasonable inferences in favor of the nonmoving party can be drawn from the evidence. Eastman Kodak Co. v. Image Tech. Servs., Inc., 504 U.S. 451, 468, 112 S.Ct. 2072, 2083, 119 L.Ed.2d 265 (1992).

III. Inequitable Conduct

Applicants for patents have a duty to prosecute patent applications in the Patent Office with candor, good faith, and honesty. Molins PLC v. Textron, Inc., 48 F.3d 1172, 1178 (Fed.Cir.1995); see also 37 C.F.R. § 1.56. A breach of this duty constitutes inequitable conduct. Honeywell Int’l, Inc., v. Universal Avionics Sys., 488 F.3d 982, 999 (Fed.Cir.2007).

In order to hold a patent unenforceable because of inequitable conduct, “there must be clear and convincing evidence that the applicant (1) made an affirmative misrepresentation of material fact, failed to disclose material information, or submitted false material information, and (2) intended to deceive the U.S. Patent and Trademark Office.” Cargill, Inc. v. Canbra Foods, Ltd., 476 F.3d 1359, 1363 (Fed. Cir.2007). Misrepresentation or non-disclosure must meet “threshold levels” of both materiality and intent. Honeywell, 488 F.3d at 999. After these threshold levels have been met, the court should weigh the materiality and intent in order to determine “whether the equities warrant a conclusion that inequitable conduct occurred.” Id. The greater the materiality of the information misrepresented or withheld by the applicant, the less evidence of intent the court will require in order to find inequitable conduct. Id.

Materiality is “determined from the viewpoint of a reasonable patent examiner, and not the subjective beliefs of the patentee.” Cargill, 476 F.3d at 1366.

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540 F. Supp. 2d 724, 2008 WL 901175, 2008 U.S. Dist. LEXIS 25583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grantley-patent-holdings-ltd-v-clear-channel-communications-inc-txed-2008.