Green Mountain Glass LLC v. Saint-Gobain Containers, Inc.
This text of 300 F. Supp. 3d 610 (Green Mountain Glass LLC v. Saint-Gobain Containers, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
Gregory M. Sleet, UNITED STATES DISTRICT JUDGE
I. INTRODUCTION1
In this patent infringement action, Plaintiffs Green Mountain Glass LLC, and CulChrome, LLC (collectively, "Plaintiffs") allege that Saint-Gobain Containers, Inc., d/b/a/ Verallia North America, now known as "Ardagh" ("Defendant") infringes U.S. Patent Nos. 5,718,737 ("the '737 Patent") and 6,230,521 ("the '521 Patent"). (D.I. 1.)2
*617The court held a five-day jury trial in this matter on April 17 through April 21, 2017. (D.I. 268-272.) At trial, Defendant properly moved for judgment as a matter of law ("JMOL") at the end of Plaintiffs' case pursuant to Rule 50(a) of the Federal Rules of Civil Procedure and again at the close of evidence. Tr. 687:8-17; 1200:14-21.3
On April 21, 2017, the jury returned a verdict in favor of Plaintiffs on the issue of infringement with respect to all claims of the '737 Patent. Tr. 1374:15-25, 1376:1-25; (D.I. 240.) The jury found that Defendant willfully infringed claims 1, 18, 20, 21, 22, and 24 of the '737 Patent, but that Defendant did not infringe the '521 Patent. Id. The jury also found that the claims of the '737 Patent were valid, not obvious, and not anticipated by the prior art. Id. The court entered judgment on the verdict on April 26, 2017. (D.I. 242.)
Presently before the court is Defendant's motion for judgment as a matter of law or alternatively for a new trial on the issues of infringement and willful infringement and Plaintiffs' motions for prejudgment interest, attorney's fees, enhanced damages, and, alternatively, a new trial. (D.I. 248); (D.I. 251.) Having considered the entire record in this case, the substantial evidence in the record, the parties' post-trial submissions, and the applicable law, the court will grant Plaintiffs' motion for prejudgment interest and deny all other motions.4 The court's reasoning follows.
II. BACKGROUND OF THE TECHNOLOGY
The patents-in-suit relate to a method of recycling batches of mixed colored cullet5 into amber, green, or flint glass by selectively decolorizing the color green from the mixed colored cullet and then colorizing the mixed colored cullet. '737 Patent. The technology described in the patents-in-suit includes efforts to turn a waste product of glass recycling of unsorted mixed colored glass cullet into a product useful to glass manufacturers. Id. At trial, the main focus of both the parties' invalidity and infringement arguments focused on the requirement, appearing in one form or another in each of the asserted claims, that the colors "of said ... cullet" are or are not "selectively colorized." Id. at Claims 1, 18.
III. STANDARD OF REVIEW
A. Renewed JMOL Motions
To prevail on a renewed motion for judgment as a matter of law following a jury trial and verdict, the moving party "must show that the jury's findings, presumed or express, are not supported by substantial evidence or, if they were, that the legal conclusion(s) implied [by] the jury's verdict cannot in law be supported by those findings." Pannu v. Iolab Corp. ,
The court should only grant the motion "if, viewing the evidence in the light most favorable to the nonmovant and giving it the advantage of every fair and reasonable inference, there is insufficient evidence from which a jury reasonably could find liability." Lightning Lube, Inc. v. Witco Corp. ,
"The question is not whether there is literally no evidence supporting the party against whom the motion is directed but whether there is evidence upon which the jury could properly find a verdict for that party." Lightning Lube ,
B. New Trial
Pursuant to Federal Rule of Civil Procedure 59, a court may grant a new trial "for any of the reasons for which a new trial has heretofore been granted in an action at law in federal court." Fed. R. Civ. P. 59(a)(1)(A). The decision to grant or deny a new trial is within the sound discretion of the trial court. See Allied Chem. Corp. v. Daiflon, Inc. ,
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Gregory M. Sleet, UNITED STATES DISTRICT JUDGE
I. INTRODUCTION1
In this patent infringement action, Plaintiffs Green Mountain Glass LLC, and CulChrome, LLC (collectively, "Plaintiffs") allege that Saint-Gobain Containers, Inc., d/b/a/ Verallia North America, now known as "Ardagh" ("Defendant") infringes U.S. Patent Nos. 5,718,737 ("the '737 Patent") and 6,230,521 ("the '521 Patent"). (D.I. 1.)2
*617The court held a five-day jury trial in this matter on April 17 through April 21, 2017. (D.I. 268-272.) At trial, Defendant properly moved for judgment as a matter of law ("JMOL") at the end of Plaintiffs' case pursuant to Rule 50(a) of the Federal Rules of Civil Procedure and again at the close of evidence. Tr. 687:8-17; 1200:14-21.3
On April 21, 2017, the jury returned a verdict in favor of Plaintiffs on the issue of infringement with respect to all claims of the '737 Patent. Tr. 1374:15-25, 1376:1-25; (D.I. 240.) The jury found that Defendant willfully infringed claims 1, 18, 20, 21, 22, and 24 of the '737 Patent, but that Defendant did not infringe the '521 Patent. Id. The jury also found that the claims of the '737 Patent were valid, not obvious, and not anticipated by the prior art. Id. The court entered judgment on the verdict on April 26, 2017. (D.I. 242.)
Presently before the court is Defendant's motion for judgment as a matter of law or alternatively for a new trial on the issues of infringement and willful infringement and Plaintiffs' motions for prejudgment interest, attorney's fees, enhanced damages, and, alternatively, a new trial. (D.I. 248); (D.I. 251.) Having considered the entire record in this case, the substantial evidence in the record, the parties' post-trial submissions, and the applicable law, the court will grant Plaintiffs' motion for prejudgment interest and deny all other motions.4 The court's reasoning follows.
II. BACKGROUND OF THE TECHNOLOGY
The patents-in-suit relate to a method of recycling batches of mixed colored cullet5 into amber, green, or flint glass by selectively decolorizing the color green from the mixed colored cullet and then colorizing the mixed colored cullet. '737 Patent. The technology described in the patents-in-suit includes efforts to turn a waste product of glass recycling of unsorted mixed colored glass cullet into a product useful to glass manufacturers. Id. At trial, the main focus of both the parties' invalidity and infringement arguments focused on the requirement, appearing in one form or another in each of the asserted claims, that the colors "of said ... cullet" are or are not "selectively colorized." Id. at Claims 1, 18.
III. STANDARD OF REVIEW
A. Renewed JMOL Motions
To prevail on a renewed motion for judgment as a matter of law following a jury trial and verdict, the moving party "must show that the jury's findings, presumed or express, are not supported by substantial evidence or, if they were, that the legal conclusion(s) implied [by] the jury's verdict cannot in law be supported by those findings." Pannu v. Iolab Corp. ,
The court should only grant the motion "if, viewing the evidence in the light most favorable to the nonmovant and giving it the advantage of every fair and reasonable inference, there is insufficient evidence from which a jury reasonably could find liability." Lightning Lube, Inc. v. Witco Corp. ,
"The question is not whether there is literally no evidence supporting the party against whom the motion is directed but whether there is evidence upon which the jury could properly find a verdict for that party." Lightning Lube ,
B. New Trial
Pursuant to Federal Rule of Civil Procedure 59, a court may grant a new trial "for any of the reasons for which a new trial has heretofore been granted in an action at law in federal court." Fed. R. Civ. P. 59(a)(1)(A). The decision to grant or deny a new trial is within the sound discretion of the trial court. See Allied Chem. Corp. v. Daiflon, Inc. ,
Similarly, Federal Rule of Civil Procedure 60 permits a court to relieve a party from final judgment and even grant a new trial due to "fraud ..., misrepresentation, or other misconduct by an adverse party." Fed. R. Civ. P. 60(b)(3) ; see Bethel v. McAllister Bros., Inc. ,
IV. DISCUSSION
Having considered the substantial evidence in the record, the parties' post-trial *619submissions, and the applicable law, the court will deny all of Defendant's motions. The court will deny Plaintiffs' motions for enhanced damages, attorney's fees, and a new trial and grant Plaintiffs' motion for prejudgment interest. The court's reasoning follows.
A. Infringement
First, Defendant moves for judgment as a matter of law or, alternatively, a new trial on infringement. (D.I. 249.) Defendant's sole challenge to the jury's infringement verdict is that Plaintiffs "failed to prove that it 'selectively decolorized' one of the colors of the unsorted mixed color cullet, which is a required element of every asserted claim." (D.I. 249 at 3.)6 Both of the asserted independent claims, 1 and 18, require "selectively" decolorizing and enhancing "at least one of the colors of said unsorted mixed color glass cullet." '737 Patent at Claims 1, 18. Thus, to infringe, Defendant must use colorizers or decolorizers in a selective way to remove and enhance only a particular color cullet. (D.I. 249 at 3.) Defendant argues that there is no evidence in the record that its glassmaking process selectively uses decolorizers or colorizers to act on the cullet. Id. at 3-4. Specifically, Defendant argues that the evidence only shows that it used the same colorizers and decolorizers that are well-known in the prior art, that these colorizers and decolorizers acted on all colors in all materials in the batch as a whole, and were not selective. Tr. 263:4-264; 265:10-266.
Plaintiffs assert that they presented substantial evidence "through exhibits, fact, and expert testimony," which provided the jury reasonable grounds to find that Defendant infringed all asserted claims of the '737 Patent. (D.I. 260 at 3-4.) The court agrees. Plaintiffs' expert, Dr. Steve Martin, testified extensively as to Defendant's infringement finding that "all of the steps [of the independent claims asserted] have been practiced by [Defendant]'s accused methods." (D.I. 260 at 4); Tr. 400:24-433; 424:2-3.7 While Dr. Martin's testimony alone provided a sufficient basis for a reasonable jury to find Defendant infringed the '737 Patent, Plaintiffs submitted considerable additional evidence. (D.I. 260 at 4.) For example, Plaintiffs' technical director, Dr. Lehman, testified that Defendant's Manager of Glass Technology told him they used mixed color cullet with colorizers and decolorizers. Tr. 201:1-9. At trial, Plaintiffs presented testimony from Defendant's corporate head, James Keener, who testified that "[Defendant] practiced every limitation of the '737 Patent's independent claims." Tr. 711:22-712:20. The jury also heard evidence about an internal email stating that "[Defendant] would not seek a license on any color control technology because [they] are already" using the technology. DX-134; (D.I. 260 at 4.) Lastly, the court recognized at trial that "asserting a defense of anticipation based on Ardagh's prior public use could seriously undermine the infringement position in the eyes of the jury." Tr. 762:10-15. Despite this warning, Defendant proceeded with their defense. Accordingly, a reasonable jury could have found *620infringement based on all the aforementioned evidence.
Defendant argues, alternatively, that the court should grant a new trial on infringement because "Plaintiffs' counsel questioned [Defendant]'s lay witness Mr. Keener on the claim elements and concluded with [the question] 'you have just proven infringement [....] correct?' " (D.I. 249 at 4); Tr. 711:22-712:22. Despite the court's admonishment of Plaintiffs' counsel and its curative instruction, Plaintiffs' counsel repeated this statement in his closing. Id. ; Tr. 713:5-714:9, 1289:18-20. While counsel behaved inappropriately and unprofessionally at this and other times during the trial, after much thought the court believes its curative instructions sufficed to adequately ameliorate the harm caused by counsel. See Inter Digital Commc'ns, Inc. v. ZTE Corp. ,
For these reasons, the court will deny Defendant's motion for judgment as a matter of law or, alternatively, for a new trial on the issue of infringement.
B. Willful Infringement
Next, Defendant moves for judgment as a matter of law or, alternatively, a new trial on willful infringement. (D.I. 249.) Defendant asserts that Plaintiffs failed to prove willful infringement of the '737 Patent because (1) its glassmaking process predates the '737 Patent's. priority date; (2) it did not use unsorted cullet; and (3) Plaintiffs' actions demonstrate that it did not willfully infringe the '737 Patent. (D.I. 249 at 5.) Generally, a finding of willful infringement should be reserved for "egregious cases of misconduct beyond typical infringement." Halo Elecs., Inc. v. Pulse Elecs., Inc. , --- U.S. ----,
*6211. The Priority Date & Mixed Cullet
Defendant asserts that because their glassmaking process predated the '737 Patent's priority date, it reasonably believed it could not be liable for infringement. (D.I. 249 at 5.) Defendant further contends that testimony by their former Senior Vice President for Supply Chain, Mr. Rhea, establishes that Defendant's glassmaking process had not materially changed since at least 1986, and the process used mixed color cullet prior to Plaintiffs' patent.
2. The Unsorted Cullet
Next, Defendant argues that it believed it was not liable for patent infringement because it does not and has not used unsorted cullet. (D.I. 249 at 7.) At trial, the evidence from both Defendant's witnesses and third parties established that Defendant used sorted mixed color cullet before Plaintiffs' patent.
3. Plaintiffs' Actions & Documents
Among other things, the jury heard evidence on (1) Defendant's deliberate copying, including that, a mere eight days after learning about the patent, Defendant drafted a secret dossier in which it sought information regarding nineteen different aspects about Plaintiffs' technology; (2) Defendant's failure to investigate the scope of the patent or form a good faith belief that it was invalid or not infringed; (3) Defendant's failure to take remedial action, including continued post-suit infringement; and (4) Defendant's attempts to conceal its infringement, including a letter sent to Plaintiffs denying infringement pre-suit and a letter post-suit denying it used "mixed color cullet." Tr. 593:11-15. After considering the evidence, the jury, under a heightened willfulness instruction, found that "Ardagh was especially worthy of punishment." Tr. at 1250:23-24.11
*622Other than presenting conflicting testimony from their own experts, Defendant has not demonstrated that a reasonable jury could not have found that it willfully infringed the patent. It is not the court's role to second guess the credibility determinations of the jury. See SIBIA Neuroscis. Inc., v. Cadus Pharms. ,
C. Invalidity of '737 Patent Claims
1. Anticipation
At trial, Defendant asserted that three separate references (hereinafter "the 1995 Process," "Duckett," and "Ross") anticipate the asserted claims of the '737 patent -in-suit. Proving that a patent is invalid based on anticipation "requires that the four corners of a single , prior art document describe every element of the claimed invention, either expressly or inherently, such that a person of ordinary skill in the art could practice the invention without undue experimentation." EMC Corp., et al. v. Zerto, Inc. ,
i. The 1995 Process
Defendant asserts that their pre-1995 glassmaking process used mixed color cullet colorizers, and decolorizers. (D.I. 249 at 9.) Specifically, Defendant asserts the result of the broad construction of unsorted mixed color cullet is that their pre-1995 process anticipates the '737 Patent. (D.I. 249 at 11.) Plaintiffs argue that the 1995 Process cannot anticipate the '737 Patent because "trial proved that Ardagh's alleged invalidating reference, DX-16, did not anticipate the '737 [P]atent." (D.I. 260 at 13.) Defendant did not, and cannot, prove anticipation for six distinct reasons.
First, Defendant's expert, Dr. Carty, admitted on direct examination that he predicated his anticipation opinions on ignoring the "selectivity limitation." Tr. 1073:4-114. Second, Dr. Carty admitted that DX-16 does not explicitly disclose mixed color cullet. Tr. 1127:18-1129:22. Third, more than sufficient evidence existed for a reasonable jury to reject Dr. Carty's assertion that the "cullet" listed in DX-16 was mixed color cullet. For example, Dr. Carty admitted that as of 1994 Defendant's trade association confirmed that mixed color cullet in container manufacturing could not be used. Tr. 1125:6-21. Fourth, Dr. Carty showed batch records containing greater than 50 percent internal cullet added to the batch. Tr. 1130:3-13. Fifth, the jury instructions properly instructed that an anticipating reference must be "reasonably accessible to the public," or "not subsequently abandoned, suppressed, or concealed." Tr. 1254:11-1255:19; (D.I. 260 at 16.) Sixth, Defendant introduced no evidence that the pre-1995 process anticipated dependent claim 20, which adds the limitation that the "mixed color cullet" comprise flint, green, and amber glass.
*623ii. Duckett
Defendant's post-trial brief asserts that Duckett discloses the use of colorizers with mixed color cullet to make amber and green bottles. (D.I. 249 at 16.) Specifically, Defendant argues that Duckett disclosed selective colorizing in 1979, including "selenium and cobalt oxide and manganese as the decolorizing agents [to] compensate for iron and flint glass."
Plaintiffs assert that Defendant's invalidity defenses regarding the Duckett and Ross references, were so meritless that Defendant did not even mention them in their opening statement or closing argument. (D.I. 260 at 18.) Additionally, Plaintiffs point out that Defendant's expert, Dr. Carty, only testified about Duckett on direct for three minutes. (D.I. 260 at 18); Tr. 1090:12-1094:2. Dr. Carty gave an analysis of claim 18 and was asked "[i]f we march through the rest of the limitations for claim 18, do you find any of limitation that has not been disclosed in Duckett for claim 18?" to which he responded, "No, I do not." Tr. 1093:14-17. Such testimony is insufficient as a matter of law to prove anticipation. See Schumer v. Lab. Computer Sys., Inc. ,
Because Defendant failed to present sufficient evidence at trial to support a conclusion that any of the three references anticipate the '737 Patent, the court concludes that the evidence at trial was sufficient to support a verdict that the '737 Patent was not anticipated.
2. Obviousness
*624Defendant asserts that when combined with Duckett and the knowledge of a skilled artisan, the Ross Batch Calculation renders the '737 Patent obvious. (D.I. 249 at 17.) At trial, Mr. Ross, an independent consultant in glass manufacturing, testified that his 1994 batch calculation for Coors proved that he helped Coors make glass including mixed cullet, decolorizers, and colorizers, including salt cake, graphite, and melite. Tr. 917:14-25-918:1-25. Defendant asserts that while Plaintiffs contend that the Ross Batch Calculations were secret, Mr. Ross testified that they were not confidential when he shared them with Coors. (D.I. 249 at 17); Tr. 920:16-18. In response, Plaintiffs argue that there was no evidence regarding a motivation to combine Duckett and the Ross Batch Calculation. (D.I. 260 at 18-19.) Additionally, Plaintiffs assert that Dr. Carry's testimony regarding the alleged obviousness in light of the combination of Duckett, Ross, and the knowledge of a POSA was equally deficient as a matter of law because he did not analyze any of the four Graham Factors. (D.I. 260 at 19); Kinetic Concepts, Inc. v. Smith & Nephew, Inc. ,
D. Defendant's Motion for Claim Construction Reconsideration
In its motion, Defendant asks the court to revisit its April 12, 2017 claim construction order regarding "unsorted mixed color cullet" if the court does not grant JMOL of non-infringement or invalidity. (D.I. 249 at 18.) Specifically, Defendant argues that "[s]ubstantial extrinsic trial evidence undermines the Plaintiffs' construction of 'unsorted mixed color cullet' that was proposed and accepted on the eve of trial."
E. Defendant's Invalidity Motion under 35 U.S.C. § 101
In its motion, Defendant asks that the court reconsider its holding as a matter of law "that the '521 patent falls within the *625§ 101 categories of patentable subject matter." (D.I. 183 at n.1); (D.I. 249 at 22); (D.I. 260 at 20.) When Defendant moved to have the issue reconsidered by the jury at trial the court responded that "as a matter of law, this is patentable subject matter. That is the end of that." Tr. 992:6-8. While Defendant now claims the analysis turns on subsidiary facts, it previously represented to the court that there are no such disputes here. (D.I. 139 at 9.) The court, therefore, need not reconsider this issue and Defendant's motion for reconsideration pursuant to
F. Defendant's Motion for Equitable Estoppel
Defendant contends that equitable estoppel and Plaintiffs' alleged failure to mitigate bar recovery. (D.I. 249 at 28.) In a patent case, equitable estoppel contains three elements: "(1) the patentee, through misleading conduct, led the alleged infringer to reasonably believe that the patentee did not intend to enforce its patent against the infringer; (2) the alleged infringer relied on that conduct; and (3) due to its reliance, the alleged infringer would be materially prejudiced if the patentee were permitted to proceed with its charge of infringement." Aspex Eyewear Inc. v. Clariti Eyewear, Inc. ,
Defendant argues it relied on Plaintiffs' silence from 2003-2011, which allegedly suggested Plaintiffs were simply trying to sell Defendant something it did not own. (D.I. 249 at 29.) Defendant also asserts that Plaintiffs failed to mitigate damages by waiting over fifteen years to file suit or putting Defendant on notice that Plaintiffs believed it infringed the '737 Patent. Id. at 30. Defendant believes the delay resulted in severe prejudice at trial because many of the documents, witnesses, and defenses previously available to Defendant were unusable. Id.
Plaintiffs assert that Defendant's equitable defenses are meritless and that "failure to mitigate" is not a cognizable defense to reasonable royalty damages for patent infringement. Romag Fasteners, Inc. v. Fossil, Inc. ,
G. Defendant's Motion for Remittitur on Damages and a New Trial
Defendant argues that damages should be remitted or that it should receive a new trial. (D.I. 249 at 28.) Specifically, Defendant argues that Plaintiffs failed to apportion: (1) the cost savings of using cullet to arrive at the incremental value of the patent; and (2) the asserted damages to account for other unpatented features, benefits, and methods related to the accused Defendant processes. Id. at 23. "A jury award of damages is reviewed by [the district court] for substantial evidence. That award is entitled to deference."
*626Honeywell Int'l, Inc. v. Universal Avionics Sys. Corp. ,
Here, the jury's verdict demonstrates that it did not fully agree with the damages or royalty numbers proposed by either party. See Energy Transp. Grp. v. Sonic Innovations, et al. ,
In light of the record, the court does not find that the jury's verdict is excessive and finds that substantial evidence supports the jury's damages verdict. (D.I. 260 at 21.) The court, therefore, will not allow remittitur at this time and finds that no basis exists for a new trial.
H. Green Mountain's Motions
Plaintiffs filed four post-trial motions that remain pending: A motion for prejudgment interest, enhanced damages, attorney's fees, and a conditional motion for new trial. (D.I. 251.) The court will deny the motions for enhanced damages and attorney's fees and grant the motion for prejudgment interest. The court will deny Plaintiffs' conditional motion for a new trial without ruling on its substance.13
1. Prejudgment Interest
Plaintiffs seek an award of prejudgment interest pursuant to
"As a general matter, prejudgment interest should ordinarily be awarded in patent cases to provide patent owners with complete compensation." LG Display Co. v. AU Optronics Corp. ,
The Defendant opposes the motion for prejudgment interest, arguing that (1) Plaintiffs' undue delay in instituting suit warrants denial of prejudgment interest; and (2) if granted, the court should apply the Treasury Bill ("T-Bill") rate. (D.I. 257 at 27-28.) "In cases of patent infringement, 'prejudgment interest should be awarded [under
Next, the court must determine whether to award prejudgment interest at the prime rate or the one-year U.S. Treasury Bill ("T-Bill") rate. Defendant argues that if the court awards prejudgment interest, it should apply the T-Bill rate "because plaintiffs never produced evidence (1) that they borrowed at a higher rate; (2) what that rate was; or (3) that there was any causal connection between borrowing and losing the use of the money due to [Defendant]'s infringement." (D.I. 257 at 27-28.); Schering Corp. v. Precision-Cosmet Co., Inc. ,
*628The court disagrees with Defendant's argument that the Plaintiffs provide no justification for compounding quarterly. (D.I. 257 at 28.) Plaintiffs submitted the declaration of Anthony Lame confirming that it was forced to borrow at a rate of 9% during the damages period, which would add more to the verdict than the compounded quarterly rate. (D.I. 262 at 2.)15 Therefore, Plaintiffs' motion for prejudgment interest will be granted in accordance with the compounding quarterly calculations set forth by Michael Lasinski, Plaintiffs' damages expert, in his declarations. Accordingly, the court will order Defendant to pay prejudgment interest at the prime rate, compounded quarterly of $10,347,899.18 as of June 30, 2017, plus 6,479.00 (daily interest rate) times 251 (days since June 30, 2017), for a total of $ 11,974,128.18.
2. Enhanced Damages
Next, Plaintiffs seek treble damages for Defendant's willful infringement of the '737 Patent. (D.I. 252 at 5.) It is within the court's discretion to award enhanced damages under
The first Read Factor is "whether the infringer deliberately copied the ideas or design of another." As to this factor, Plaintiffs contend that Defendant's deliberate copying and misuse of Plaintiffs' invention presents a quintessential basis to enhance damages. (D.I. 252 at 14.) Defendant counters that it did not copy the patent at issue because it has been making glass using mixed color cullet long before the '737 Patent. (D.I. 257 at 2.) While substantial evidence was presented at trial on both sides of the dispute, the jury presumably found the facts to be more consistent with Plaintiffs' characterization than Defendant's. The court, therefore, concludes that the "deliberate copying" factor must, based on the jury verdict, be deemed to favor enhancement.
Turning to the second Read Factor-"whether the infringer, when he knew of the other's patent protection, investigated the scope of the patent and formed a good-faith belief that it was invalid or that it was not infringed"-the record shows that Defendant did not have a "good faith belief"
*629that the '737 Patent was invalid or not infringed. On November 25, 1998, Mr. Rhea told Plaintiffs that it "had been working with mixed cullet for 'five or six years' ..." Tr. 265:10-266:10. Defendant, however, maintains that it continuously told Plaintiffs that their patent could not cover Defendant's "long-standing processes." (D.I. 257 at 6.) The jury, however, returned a verdict finding willful infringement "especially worthy of punishment." Tr. 1250:21-24, 1375: 8-11. This factor, therefore, weighs in favor of enhancement.
Defendant's "behavior as a party to the litigation," the next Read Factor, disfavors enhancement. Plaintiffs assert that Defendant's counsel "conceded that Ms. Flight's testimony was 'terrible,' but then falsely told the jury, '[t]hat testimony does not have anything to do with any issue you have to decide in this case.' " (D.I. 252 at 12); Tr. 1325:16-23.16 Defendant, however, asserts that Plaintiffs inappropriately suggest that its counsel lied during closing arguments, and that Ms. Flight's deposition testimony was and remains irrelevant to infringement, invalidity, and willful infringement since she was not an officer who had any authority to decide how Defendant made glass. (D.I. 257 at 9.) Ms. Flight, however, admitted that if she were "to sign a declaration today, it would say something completely different than what th[e] declaration [regarding mixed color cullet] said" when she signed it. Tr. 294:17-295:2. In sum, the litigation conduct factor does not favor enhancement.
Defendant is a large and healthy business entity. This fact might, as a general matter, support enhancement. Under the circumstances here, however, these considerations do not merit any weight. Plaintiffs agreed with Defendant to exclude reference to Defendant's size and financial condition in the parties' proposed pre-trial order. (D.I. 212 at 4, Schedule N1 ¶¶ 3-4); (D.I. 257 at 10.) As such, there was no evidence presented that Ardagh "exploited its size and wealth" over Plaintiffs in refusing to license or use the '737 Patent. (D.I. 252 at 13.) Therefore, this factor is neutral.
The next Read Factor, "closeness of the case," is neutral. Defendant prevailed at trial on non-infringement on one of the two patents at issue. (D.I. 257 at 10.) The court denied Plaintiffs' request for summary judgment on all claims and defenses. Id. ; (D.I. 211.) Plaintiffs, however, prevailed at trial on willful infringement of the '737 Patent as to all claims. (D.I. 252 at 14.) The jury's deliberation was relatively brief-approximately three hours. Nevertheless, the case presented a number of close calls for the court. See Tr. 763:22-764:19 (discussing claim construction), 1243:6-11, 1359:7-1360:3, 1373:21; (D.I.
*630183.)17 The court, however, finds this factor to be neutral as there is evidence that could weigh in favor of each side.
The next two factors-the "duration" of the infringer's "misconduct" and "[r]emedial action" it has taken-do not favor enhancement. Even accepting Plaintiffs' position that Defendant's misconduct began in March 2008,18 when the '737 Patent expired (see Tr. 353:14-16), the record cannot be reasonably understood to show an uninterrupted 7-year period of un-remediated wrongs. In 1998, Plaintiffs approached Defendant with their patents and explained their glassmaking process. Tr. 775:8-24. Subsequently, according to Defendant, Plaintiffs threatened them with a patent infringement action. Id. Defendant explained that it did not infringe and did not need a license because it was using the same process well before Plaintiffs. (D.I. 257 at 11.) For 15-years, Plaintiffs did not make another infringement assertion and never disputed Defendant's contentions of non-liability prior to filing suit in 2014. Id.
Similarly, there is no evidence of a "motivation for harm" that would support enhancement. Plaintiffs rely on the rebuttal expert report of Defendant's damages expert, Mr. Schoettelkotte, to support their position. (D.I. 152 at 15.) The statement upon which Plaintiffs rely says that "no Ardagh customers or end users have indicated they would pay more for glass containers simply due to the presence of recycled glass within the containers, much less one with the accused unsorted mixed color cullet." Id. The statement further explains that there was no evidence that "any such success or popularity is based on the allegedly infringing manufacturing process." Id. This is not enough. "[T]he fact that the infringer acted pursuant to a financial motive does not distinguish this case from the garden-variety infringement case." Idenix Pharms. ,
The court next considers evidence concerning any attempted concealment by Defendant of its misconduct. The jury heard evidence that in 2005 Defendant's lawyer sent Plaintiffs a letter to make clear they had no intentions of using the technology found in the patents. Tr. 325:21-326:22. The jury also learned from Green Mountain's president that this is why Plaintiffs did not seek redress earlier. Tr. 325:21-326:22. The jury also heard evidence that the parties had discussed the '737 Patent over the course of some 13 years. Tr. 330:1-14. Defendant, however, maintains that it did not conceal their process, thus, concealment cannot be a basis to enhance Plaintiffs' damages. (D.I. 257 at 12.) Given the history between these parties, the court believes that if this factor weighs in favor of an enhanced award, it is only ever so slightly.
Having assessed and weighing each of the Read Factors, the court concludes that an award of enhanced damages is not warranted. Only three factors favorite enhancement: deliberate copying, investigation and good faith belief, and attempts to conceal misconduct. Most of the other factors-a good faith belief in non-infringement, behavior in the litigation, the duration *631of misconduct and remedial actions taken by Defendant, and the lack of a motivation to harm Plaintiffs-disfavor enhancement. The remaining factors, Defendant's size and financial condition, and the closeness of the case are essentially neutral. In sum, the Read Factors demonstrate that the court should exercise its discretion to deny Plaintiffs' request for enhanced damages.
3. Attorney's Fees
Section 285 provides that "[t]he court in exceptional cases may award reasonable attorney fees to the prevailing party."
The parties do not dispute that Plaintiffs are the prevailing party as required by § 285. The award of attorneys' fees therefore turns on whether this case is exceptional. In light of the totality of the circumstances, the court finds that it is not exceptional. Octane Fitness, LLC ,
The court, therefore, finds that no party is entitled to an award for attorneys' fees and costs in this case.
V. CONCLUSION
For the reasons stated above, the court will deny all of Defendant's post-trial motions and Plaintiffs' motions for enhanced damages, attorney's fees, and a new trial and grant Plaintiffs' motion for prejudgment interest.
ORDER
At Wilmington this 8th day of March, 2018, IT IS HEREBY ORDERED THAT:
*6321. Defendant's Motions (D.I. 249) are DENIED;
2. Plaintiffs' Motions (D.I. 251) for enhanced damages, attorney's fees, and a conditional new trial are DENIED;
3. Plaintiffs Motion for prejudgment interest is GRANTED; and
4. Defendant shall pay prejudgment interest at a prime rate compounded quarterly.
Related
Cite This Page — Counsel Stack
300 F. Supp. 3d 610, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-mountain-glass-llc-v-saint-gobain-containers-inc-ded-2018.