Gyrodata Inc. v. Gyro Technologies, Inc.

679 F. Supp. 2d 774, 2009 U.S. Dist. LEXIS 118816, 2009 WL 5195975
CourtDistrict Court, S.D. Texas
DecidedDecember 22, 2009
DocketCivil Action H-09-1005
StatusPublished

This text of 679 F. Supp. 2d 774 (Gyrodata Inc. v. Gyro Technologies, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gyrodata Inc. v. Gyro Technologies, Inc., 679 F. Supp. 2d 774, 2009 U.S. Dist. LEXIS 118816, 2009 WL 5195975 (S.D. Tex. 2009).

Opinion

MEMORANDUM OPINION AND ORDER

KENNETH M. HOYT, District Judge.

I. INTRODUCTION

Before the Court is the plaintiff, Gyro-data Incorporated’s (“Gyrodata”) first amended application for preliminary injunction (Docket Entry No. 62), the defendants’, Gyro Technologies, Inc. and Dataflow Measurement Systems, Limited (collectively, “Gyro Tech”), memorandum of law regarding issues presented in the application for preliminary injunction (Docket Entry No. 77), Gyrodata’s memorandum of law in support of its application (Docket Entry No. 79), Gyro Tech’s proposed findings of fact and conclusions of law (Docket Entry No. Ill), Gyrodata’s proposed findings of fact and conclusions of law (Docket Entry No. 115), and Gyro Tech’s rebuttal to Gyrodata’s proposed findings of fact and conclusions of law (Docket Entry No. 121). Also before the Court are the parties’ responses, replies, memoranda and the testimony of witnesses. The Court, taking all matters under advisement, determines that Gyro-data’s application for a preliminary injunction should be denied.

II. FACTUAL BACKGROUND

A. The '195 Patent and the Alleged Infringement

On September 15, 1998, United States Patent No. 5,806,195 (the '195 Patent), en *777 titled “Rate Gyro Wells Survey System Including Nulling System,” was issued to Gary Uttecht, James Brosnahan, Eric Wright and Greg Allen Neubauer. The patent was subsequently assigned to Gyro-data.

The '195 patent claims an oil and gas wellbore surveying tool that can map a borehole without being connected to a surface power supply or data connection. This is an improvement over past technologies because the unit does not rely on a wireline to operate. A wireline is a cable containing electrical and data wiring that runs from the surface to the surveying tool in the wellbore. The claimed invention utilizes rate gyroscopes and gravity sensors (e.g. accelerometers) to map the surveyed wellbore.

In the present suit, Gyrodata asserts that Gyro Tech’s Gyroflex Navigator and Gyroflex Explorer surveying units infringe claims 53, 54, 55 and 56 of the '195 patent. Claim 53 is an independent claim and 54-56 are dependent claims. The claimed subject matter consists of:

53.An apparatus for measuring a sequence of data from within a well borehole, comprising:
(a) a sonde which is conveyed within said borehole, wherein said sonde comprises
(i) a rate gyro comprising at least one axis,
(ii) a power supply to operate said rate gyro,
(in) a memory for recording response of said rate gyro, and
(iv) means for measuring the direction of gravity acting upon said sonde;
(b) a CPU for
(i) combining a first and a second measurement from said rate gyro to obtain a measure of true north,
(ii) combining a third and a fourth measurement from said rate gyro with said first and second measurements to reduce systematic instrument error in said measure of true north; and
(iii) combining said measure of gravity direction and said measure of true north to obtain said measured sequence of data; and
(c)means for conveying said sonde within said well borehole.
54. The apparatus of claim 53 wherein said means for conveying said sonde comprises a slick line.
55. The apparatus of claim 53 wherein said means for conveying said sonde comprises a drill string.
56. The apparatus of claim 53 wherein said means for conveying said sonde comprises the force of gravity.

Pursuant the '195 patent’s specification, a slickline is “a support line to enable the sonde to be lowered to the bottom of the well borehole,” and a drill string is a line running into the borehole that is utilized to “change the drill bit [as] is periodically required.” Neither of these lines have data or electrical wiring contained therein.

B. The Prior Art

Two pieces of prior art are of significance to the present discussion. Uttecht is an author of Application of Small-Diameter Inertial Grade Gyroscopes Significantly Reduced Borehole Position Uncertainty (the “SPE article”), which is a Society of Petroleum Engineers article published in 1983. The SPE article describes the design of, and results collected from, the Wellbore Surveyor (an early downhole survey tool produced by Gyro-data). The Wellbore Surveyor utilized a “rate gyro and accelerometer to measure earth forces at each survey station.” “As a result [of the unit’s design], major sys *778 tematic errors such as geographical reference and unaccountable drift [were] eliminated.” The surveying mechanism was connected to the surface via a wireline.

Second, the Ferranti FINDS wellbore surveyor (the “Ferranti tool”) was described in the article High Accuracy Directional Surveying of Wells Employing Inertial Techniques by D.G. Morgan and A. Scott (Offshore Technology Conference, 1979). 1 The Ferranti tool was an inertial navigation system that derived its survey measurements from accelerometer readings and utilized gyroscopes to detect tool misalignment. The system utilized rate integrating gyroscopes, as opposed to the high accuracy rate gyroscopes utilized in the '195 patent and the SPE article. Due to the large diameter of the unit, the Ferranti tool was limited in how deep it could survey (because wellbores become narrower as they become deeper). The Ferranti tool was conveyed into a wellbore utilizing a slickline and it contained an onboard power supply (battery). This setup eliminated the need to utilize a wireline.

III. CONTENTIONS OF THE PARTIES

A. Gyrodata’s Contentions

Gyrodata asserts that this Court should approve its application for a preliminary injunction. Initially, it argues that it is likely to succeed on the merits at trial with regard to the validity and enforceability of its patent and with regard to infringement by Gyro Tech. Gyrodata also asserts that it will be irreparably harmed should a preliminary injunction not issue, that the balance of potential harms to each party favors issuance, and that public policy favors issuance. Lastly, Gyrodata sets forth several proposed claim constructions, including that, with regard to the “means for measuring the direction of gravity acting upon said sonde,” the function is “measuring the direction of gravity acting upon said sonde” and “[t]he corresponding structure includes ‘one or more accelerometers’ and structural equivalents.’ ”

B. Gyro Tech’s Contentions

Gyro Tech asserts that a preliminary injunction is improper.

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Bluebook (online)
679 F. Supp. 2d 774, 2009 U.S. Dist. LEXIS 118816, 2009 WL 5195975, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gyrodata-inc-v-gyro-technologies-inc-txsd-2009.