Harris Corp. v. Federal Express Corp.

670 F. Supp. 2d 1306, 2009 U.S. Dist. LEXIS 113494, 2009 WL 4016108
CourtDistrict Court, M.D. Florida
DecidedAugust 26, 2009
DocketCase 6:07-cv-1819-Orl-28KRS
StatusPublished
Cited by5 cases

This text of 670 F. Supp. 2d 1306 (Harris Corp. v. Federal Express Corp.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris Corp. v. Federal Express Corp., 670 F. Supp. 2d 1306, 2009 U.S. Dist. LEXIS 113494, 2009 WL 4016108 (M.D. Fla. 2009).

Opinion

ORDER

JOHN ANTOON, II, District Judge.

In this patent infringement suit, Plaintiff has filed a motion to dismiss certain of Defendant’s counterclaims for declaratory judgment of non-infringement, invalidity, and unenforceability. The challenged counterclaims are directed to patents asserted in the original Complaint but not reasserted in the pending Amended Complaint. Plaintiff has also filed a qualified Covenant Not to Sue Defendant for infringement of these now unasserted patents. The issue before the Court is whether deletion of the claims of infringement from the Amended Complaint and the Covenant Not to Sue have divested this Court of subject matter jurisdiction because there is no longer a justiciable controversy with regard to the unasserted patents. Under the circumstances of this case, subject matter jurisdiction survives and the motion to dismiss must be denied.

BACKGROUND

On November 16, 2007, Plaintiff Harris Corporation (“Harris”) filed the instant suit, alleging that Defendant Federal Express (“FedEx”) had infringed eight of its patents 1 relating to wireless communication technologies used on FedEx’s Boeing 727 aircraft. (Doc. 1). On February 1, 2008, FedEx filed its Answer and counterclaims seeking declaratory judgments that: 1) FedEx was not infringing the asserted patents; and 2) that the asserted patents were invalid. (Doc. 10 at 6-7). In its prayer for relief, FedEx also requested an award of attorneys’ fees pursuant to 35 U.S.C. § 285. {Id. at 11). In April 2008, Harris filed an Amended Complaint (Doc. 32), in which Harris added two additional patents that it claimed FedEx also infringed. 2 On March 27, 2009, after conducting extensive discovery, Harris filed a Second Amended Complaint (Doc. 75) in which Harris added three newly-issued patents 3 and removed five patents listed in the two prior complaints. In the motion to dismiss the counterclaims and the response thereto, both parties refer to these five patents (044, '159, '523, '545, and '636) as the “Unasserted Patents.” {See Docs. 81 & 84). Harris claims that it decided to remove the Unasserted Patents to avoid jury confusion at trial and to focus on the pat *1308 ents “where infringement is more straightforward.” (Doc. 81 at 3). FedEx offered to permit Harris to dismiss the Unasserted Patents with prejudice or stipulate to non infringement of these patents, but Harris refused. (Doc. 84 at 18).

On April 13, 2009, FedEx filed its Answer to the Second Amended Complaint (Doc. 77), which included fifteen counterclaims seeking declaratory judgments of non-infringement, invalidity, and unenforceability due to inequitable conduct pursuant to 28 U.S.C. § 2201. Count One seeks declaratory judgment that FedEx did not infringe any of Harris’s thirteen patents, the eight listed in the Second Amended Complaint plus the five Unasserted Patents, (id. at 8). Count Two seeks a declaratory judgment that all thirteen patents are invalid. (Id. at 11). Counts Eight through Twelve lists the Unasserted Patents individually and requests declarations from the Court that each of the Unasserted Patents is unenforceable due to Harris’s inequitable conduct, namely, that Harris breached its duty of candor and failed to disclose material prior art references to the United States Patent and Trademark Office (“USPTO”) during the prosecution of its patent applications. (Id. at 32-42).

On April 21, 2009, Harris filed its Motion to Dismiss FedEx’s Counterclaims 1, 2 and 8-12 (Doc. 81), claiming that this Court lacked subject matter jurisdiction over the Unasserted Patents because they were no longer in controversy. 4 Subsequently, on April 30, 2009, Harris issued a qualified Covenant Not to Sue FedEx for infringement of the Unasserted Patents (“the Covenant”), signed by Brian P. Holt, Harris Corporation’s Director of IP Licensing. (Covenant, attached as Ex. A to Doc. 90). The Covenant provides:

HARRIS CORPORATION, the owner of U.S. Patent Nos. 6,108,523; 6,775,545; 6,154,636; 6,308,044; and 6,173,159 (“the unasserted patents”), hereby covenants not to sue FEDERAL EXPRESS for infringement of the claims of the unasserted patents for the ground data link systems installed or previously installed on Boeing 727 aircraft of Federal Express as specifically described by Federal Express’ corporate representatives Robert Swanson and Derek R. Wickens in sworn testimony in this case.
Provided, however, nothing in this Covenant shall be construed so as to encompass any other ground data link system. This Covenant is limited to the as-installed system on FedEx’s Boeing 727 aircraft and shall not include future systems, modified systems, systems installed on aircraft other than FedEx’s 727 aircraft, or systems installed differently than how Federal Express has testified the system is or was installed. No other Harris patents are included in this Covenant.

(Id.). Harris insists that the Covenant eliminates any controversy with respect to the Unasserted Patents, rendering FedEx’s counterclaims moot and divesting the Court of subject matter jurisdiction. FedEx argues in its Memorandum in Opposition to the Motion (Doc. 84) that there is still a sufficiently concrete dispute over the Unasserted Patents to allow the Court to retain jurisdiction over FedEx’s counterclaims. At FedEx’s request, the Court held oral arguments limited to the issue of the effectiveness of the Covenant.

*1309 DISCUSSION

I. Legal Standards

The Declaratory Judgment Act, 28 U.S.C. § 2201(a), under which FedEx brings its counterclaims, provides, in relevant part: “In a case of actual controversy within its jurisdiction ... any court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party seeking such declaration, whether or not further relief is or could be sought.” 28 U.S.C. § 2201(a) (emphasis added). Consequently, “[d]eclaratory judgment jurisdiction pursuant to 28 U.S.C. § 2201[] must be predicated on the existence of a case or controversy between the parties.” Jervis B. Webb Co. v. Southern Sys., Inc., 742 F.2d 1388, 1398 (Fed.Cir.1984) (footnote omitted).

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670 F. Supp. 2d 1306, 2009 U.S. Dist. LEXIS 113494, 2009 WL 4016108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-corp-v-federal-express-corp-flmd-2009.