Group One Ltd. v. GTE GmbH

CourtDistrict Court, E.D. New York
DecidedMarch 30, 2023
Docket1:20-cv-02205
StatusUnknown

This text of Group One Ltd. v. GTE GmbH (Group One Ltd. v. GTE GmbH) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Group One Ltd. v. GTE GmbH, (E.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK --------------------------------------------------------------- GROUP ONE LTD.,

Plaintiff, MEMORANDUM & ORDER 20-CV-2205 (MKB) v.

GTE GmbH and RALPH WEIGEL, in his corporate capacity as owner of GTE and in his individual capacity,

Defendants. --------------------------------------------------------------- MARGO K. BRODIE, United States District Judge: Plaintiff Group One Ltd. (“Group One”) commenced the above-captioned action on May 15, 2020, against Defendants GTE GmbH (“GTE”) and Ralf Weigel, and filed an Amended Complaint on April 16, 2021, alleging that Defendants infringed Plaintiff’s patents for tennis let- detection systems and knowingly spread malicious falsehoods about the capabilities of Plaintiff’s systems. (See generally Compl., Docket Entry No. 1; Am. Compl., Docket Entry No. 39.) Plaintiff brings claims of direct, induced, and contributory patent infringement under the Patent Act, 35 U.S.C. § 271(a)–(c); false advertising and use of false descriptions and false representations under section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); tortious interference with prospective business relations and unfair competition under the New York common law; deceptive trade practices and false advertising under sections 349(h) and 350(e)(3) of the New York General Business Law (“GBL”), respectively; and trade libel under the New York common law. (Am. Compl. ¶¶ 51–155.) After initially appearing in the case, Defendants defaulted, and the Clerk of Court entered default against them on June 30, 2021. (Clerk’s Entry of Default, Docket Entry No. 46.) On July 9, 2021, Plaintiff moved for a default judgment, (Pl.’s Mot. for Default J., Docket Entry Nos. 47–48), and, on July 10, 2021, the Court referred Plaintiff’s motion to Magistrate Judge James R. Cho for a report and recommendation, (Order dated July 10, 2021).1 On August 18, 2021, Plaintiff moved ex parte for an order to show cause for a temporary

restraining order and preliminary injunction on the grounds that Defendants are “making, using, importing, distributing, offering for sale, and selling let detection systems that infringe two patents owned by Group One.” (Pl.’s Mot. for Order to Show Cause for Prelim. Inj. and TRO, Docket Entry No. 51.) On August 23, 2021, the Court issued a temporary restraining order. (Mem. & Order of Aug. 23, 2021, Docket Entry No. 55; TRO, Docket Entry No. 55-1.) On August 30, 2021, Plaintiff filed an emergency motion to enforce the TRO to “restrain the United States Tennis Association (“USTA”) from its continued use of the Trinity let detection system at the 2021 U.S. Open tennis tournament.” (Pl.’s Emergency Mot. to Enforce TRO, Docket Entry No. 58.) The next day, on August 31, 2021, the Court ordered USTA to “show cause in writing by September 2, 2021, why the Court should not hold the USTA in contempt for failing to

1 By report and recommendation dated February 28, 2022, Judge Cho recommended that the Court (1) deny Plaintiff’s motion as to Plaintiff’s claims of patent infringement, deceptive trade practices and false advertising under GBL §§ 349 and 350, and trade libel under the New York common law; (2) grant Plaintiff’s motion as to its claims of false advertising and use of false descriptions and false representations under the Lanham Act and tortious interference with prospective business relations and unfair competition under the New York common law; and (3) deny without prejudice Plaintiff’s requests for a permanent injunction and patent infringement damages, and for an award of lost profits in connection with its non-patent claims (the “R&R”). (R&R 32, 36–37, Docket Entry No. 92.) On September 2, 2022, the Court adopted in part the R&R and (1) granted Plaintiff’s default judgment motion with respect to Plaintiff’s claims of patent infringement under the Patent Act, tortious interference with prospective business relations and unfair competition under the New York common law, and false advertising claims under the Lanham Act; (2) denied default judgment with respect to Plaintiff’s deceptive trade practices and false advertising claims under the GBL and claim of trade libel under the New York common law; (3) granted Plaintiff’s request for a permanent injunction; and (4) deferred ruling on Plaintiff’s requests for damages. (Order dated Sept. 2, 2022, Docket Entry No. 108.) comply with the Court’s TRO.” (Order of Aug. 31, 2021 at 4–5, Docket Entry No. 61.) USTA responded on September 2, 2021, (Non-Party USTA Resp. to Order to Show Cause, Docket Entry No. 65), and Plaintiff responded on September 6, 2021 (Pl.’s Resp. to USTA’s Resp. to Order to Show Cause, Docket Entry No. 66).

On September 9, 2021, the Court held a hearing regarding the preliminary injunction and Plaintiff’s motion to hold USTA in contempt of the Court’s TRO (the “September 2021 hearing”). (Minute Entry dated Sept. 9, 2021.) The Court denied Plaintiff’s motion to hold USTA in contempt, denied Plaintiff’s motion to enforce the TRO against USTA, and deferred ruling on Plaintiff’s request for a preliminary injunction in view of Defendant’s nonappearance (the “September 9, 2021 Order”). (Id.) On December 23, 2021, Plaintiff moved for reconsideration of the Court’s September 9, 2021 Order denying the motion for contempt and motion to enforce the TRO against USTA (Pl.’s Mot. for Recons. Pursuant to Rule 60(b)(1) (“Pl.’s 60(b)(1) Mot. for Recons.”), Docket Entry No. 81), and then again moved for reconsideration on December 27, 2021. (Pl.’s Mot. for

Recons. Pursuant to Rule 60(b)(3) (“Pl.’s 60(b)(3) Mot. for Recons.”), Docket Entry No. 83). USTA responded on January 13, 2022 and January 17, 2022,2 and Plaintiff filed replies on January 24, 2022 and January 28, 2022.3 USTA filed a sur-reply to both of Plaintiff’s replies on

2 (Non-Party USTA Opp’n to Pl.’s Mot. for Recons. Citing Rule 60(b)(1) (“USTA 60(b)(1) Opp’n”), Docket Entry No. 84; Non-Party USTA Opp’n to Pl.’s Mot. for Recons. Citing Rule 60(b)(3) (“USTA 60(b)(3) Opp’n”), Docket Entry No. 85.)

3 (Pl.’s Reply in Supp. of 60(b)(1) Mot. for Recons., Docket Entry No. 87; Pl.’s Reply in Supp. of 60(b)(3) Mot. for Recons., Docket Entry No. 88.) February 4, 2022 and filed a letter motion to strike a late-attached exhibit by Plaintiff on February 11, 2022.4 For the reasons discussed below, the Court denies Plaintiff’s motions for reconsideration and grants USTA’s motion to strike.

I. Background At the September 2021 hearing, the Court found that there was not a “sufficient basis before the Court,” to hold USTA in contempt of the TRO. (Tr. of September 9, 2021 Hearing (“Tr.”) 27:11–14, annexed to Pl.’s 60(b)(1) Mot. for Recons., Docket Entry No. 81-2.) The Court accordingly denied Plaintiff’s application to hold USTA in contempt of the TRO. First, the Court found that it was undisputed that the legacy system USTA used prior to 2021 did not infringe on Plaintiff’s patent. (Tr. 8:7–9.) Second, the Court heard argument from the parties on whether the addition of the secondary handset or joystick with a control button to the legacy system created an infringing product. (Tr. 8–15.) The Court found that there was “a factual dispute,” (Tr. 10:19–20), because the parties disputed whether the shot clock control

feature “was already in use before the patent was issued as part of the legacy system,” (Tr. 10:15–17). The Court found that Plaintiff had the burden to “prove noncompliance [with the TRO] by clear and convincing evidence.” (Tr. 12:13–16.) Next, the Court heard from the parties as to whether USTA was acting “in concert” with Defendants. (Tr.

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Group One Ltd. v. GTE GmbH, Counsel Stack Legal Research, https://law.counselstack.com/opinion/group-one-ltd-v-gte-gmbh-nyed-2023.