Hillman Grp., Inc. v. Minute Key Inc.

317 F. Supp. 3d 961
CourtDistrict Court, S.D. Ohio
DecidedMarch 28, 2018
DocketCase No. 1:13-cv-00707
StatusPublished
Cited by3 cases

This text of 317 F. Supp. 3d 961 (Hillman Grp., Inc. v. Minute Key Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hillman Grp., Inc. v. Minute Key Inc., 317 F. Supp. 3d 961 (S.D. Ohio 2018).

Opinion

2. The Jury Instructions Regarding Bad Faith12

The Federal Circuit's decision in Zenith governs the bad faith inquiry. Zenith holds that "[e]xactly what constitutes bad faith remains to be determined on a case by case basis. Obviously, if the patentee knows that the patent is invalid, unenforceable, or not infringed , yet represents to the marketplace that a competitor is infringing the patent, a clear case of bad faith representations is made out." 182 F.3d at 1354 (emphases added). Hence this Court instructed the jury:

[I]f a patent holder knows that its patent is not infringed and yet represents to the market that a competitor is infringing its patent, then a clear case of bad faith is made out. If Hillman has proved by clear and convincing evidence that Minute Key knew that the '809 patent was not infringed by Hillman's FastKey kiosk and yet represented to Walmart that it was, then you may conclude that Minute Key acted in bad faith.

(Trial Tr. at 9-20:14-21, Doc. 238 at PageID 12338; Doc. 264-1 at PageID 13076.) A "clear case" instruction essentially collapses the objective and subjective components of bad faith13 into one inquiry. However, the Court also instructed the jury that bad faith could be proved "through a different method, one that has both objective and subjective components." (Trial Tr. at 9-21:3-5, Doc. 238 at PageID 12339; Doc. 264-1 at PageID 13077.) Continuing:

*971The objective component requires a showing by Hillman by clear and convincing evidence that Minute Key's infringement allegation to Walmart was objectively baseless. An allegation is objectively baseless if a reasonable company could not realistically expect to succeed in litigation on the merits of its infringement allegation. In other words, Minute Key must have made the infringement allegation to Walmart having no reasonable basis to believe that Hillman's FastKey kiosk could have infringed the '809 patent.
Now, Bad Faith, Subjective Intent. If you find that Minute Key's infringement allegation to Walmart was objectively baseless, then you may continue to the second component of bad faith, one that allows you to consider subjective intent. This second component, like the first, also must be established by clear and convincing evidence. In this regard, you may consider evidence of Minute Key's motivation, including whether its allegation of patent infringement by Hillman was an attempt to interfere with Hillman's business relationship with Walmart.

(Trial Tr. at 9-21:5-23, Doc. 238 at PageID 12339; Doc. 264-1 at PageID 13077.) Neither Minute Key nor Hillman objected to the "Clear Case"14 or the "Objective Baselessness/Subjective Intent"15 jury instructions at the charge conference.

Regarding patent infringement generally, the Court instructed the jury as follows:

I instruct you that patent infringement is assessed on a claim-by-claim basis. The claim elements within a patent are often analogized to the metes and bounds of a property deed. The claim elements of a patent serve to outline and describe the scope of the invention that the patent protects. A patent cannot be infringed if even a single claim element is missing in an accused infringing product.
The parties dispute whether the patent claims at issue here require a, quote, "fully automatic," unquote, kiosk in order for the '809 patent to be infringed.
The scope of a claim element of a patent and its meaning is a question of law for me. In the case of the '809 patent, I instruct you to give the claim [element] "fully automatic" its plain meaning.

(Trial Tr. at 9-19:23-9-20:12, Doc. 238 at PageID 12337-38 (emphasis added); Doc. 264-1 at PageID 13075 (emphasis added).) The second paragraph of this instruction, emphasized above, was proposed by Minute Key at the charge conference as a substitute for the sentence, "Each 'claim' element of the '809 patent, all of which require a 'fully-automatic' kiosk, would have to be found in Hillman's FastKey kiosk-the 'accused' infringing product-in order for the '809 patent to be infringed." (Trial Tr. at 8-18:10-8-24:23, Doc. 231 at PageID 12279-85; Doc. 267 at PageID 13487.) Hillman objected. (Trial Tr. at 8-24:19-20, Doc. 231 at PageID 12285 ("Your Honor, we object. We think your instruction as written is the correct one.").)

Finally, all three of these instructions were preceded by an introductory one:

As you have heard during the trial, this case originally began as a patent case. Hillman filed a lawsuit asking this Court to declare that its FastKey kiosk did not infringe the '809 patent belonging to Minute Key. Minute Key responded by filing a counterclaim asking the Court to *972declare that the FastKey kiosk did infringe its '809 patent. Eventually both of those claims were dismissed, and what remains for your deliberations are only Hillman's federal and state claims of false advertising against Minute Key. In this case, therefore, you are not being asked to decide whether Hillman's FastKey kiosk infringed the '809 patent. Rather, you are being asked to decide whether the infringement allegations made by Minute Key to Walmart were made in bad faith.
A patent holder is permitted under the law to make statements about its patent rights and about infringers that are true. A patent holder is even allowed to make representations that turn out to be false or misleading as long as the representations are not made in bad faith.

(Trial Tr. 9-19:4-21, Doc. 238 at PageID 12337 (emphasis added).) Neither party objected to this instruction. (Trial Tr. 8-17:15-8-18:9, Doc. 231 at PageID 12278-79.)

3. Minute Key's Repackaged Arguments Regarding Claim Construction Fail

For the jury to find a clear case of bad faith, Minute Key contends that "the jury first must have conducted its own claim construction in Hillman's favor and, then, simply compared the kiosks to each other." (Doc. 255 at PageID 12696-97.) This was error, it believes, for two reasons. First, a jury cannot perform claim construction. See Markman, supra , 517 U.S. at 372, 116 S.Ct. 1384. Second, product-to-product comparison is improper when analyzing infringement. Zenith Labs. v. Bristol-Myers Squibb Co. , 19 F.3d 1418, 1423 (Fed. Cir. 1994). Hillman responds that "Minute Key's motion attempts to yet again re-litigate claim construction, consistent with virtually every paper it has filed in this case since losing summary judgment." (Doc.

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Bluebook (online)
317 F. Supp. 3d 961, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hillman-grp-inc-v-minute-key-inc-ohsd-2018.