Ideal Instruments, Inc. v. Rivard Instruments, Inc.

434 F. Supp. 2d 598, 2006 U.S. Dist. LEXIS 28334, 2006 WL 1217201
CourtDistrict Court, N.D. Iowa
DecidedMay 8, 2006
DocketC 05-3079 MWB
StatusPublished
Cited by16 cases

This text of 434 F. Supp. 2d 598 (Ideal Instruments, Inc. v. Rivard Instruments, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ideal Instruments, Inc. v. Rivard Instruments, Inc., 434 F. Supp. 2d 598, 2006 U.S. Dist. LEXIS 28334, 2006 WL 1217201 (N.D. Iowa 2006).

Opinion

MEMORANDUM OPINION AND ORDER REGARDING DEFENDANTS’ MOTION TO DISMISS AND PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT

BENNETT, Chief Judge.

TABLE OF CONTENTS

I. INTRODUCTION..........................................................604

A. Background And Allegations Of The Complaint..........................604

B. Procedural Background ...............................................605

II. THE DEFENDANTS’ MOTION TO DISMISS................................607

A. Personal Jurisdiction..................................................607

1. Arguments of the parties...........................................607

2. Applicable standards...............................................609

3. Application of the standards........................................612

a. The “purposefully directed” factor ..............................612

b. The “claim arising from contacts” factor........................615

c. The “reasonable and fair” factor................................615

4. Summary.........................................................616

B. Failure To State Claims Upon Which Relief Can Be Granted.............616

1. Arguments of the parties...........................................616

2. Applicable standards...............................................617

3. Application of the standards........................................619

a. The infringement claim ........................................619

b. The defamation and disparagement claims.......................622

i. The “corporate defamation” claim ..........................623

ii. The “product disparagement/trade libel” claim...............625

c. The tortious interference claims.................................626

C. Jurisdiction Over The Foreign Patent Claim.............................627

1. Arguments of the parties...........................................628

2. Analysis ..........................................................629

a. Application of existing precedent................................629

b. Ideal’s “wait and see” argument ................................631

D. Forum Non Conveniens................................................633

1. Arguments of the parties...........................................633

2. Applicable standards...............................................634

3. Weighing of the factors............................................635

a. “Private interest” factors.......................................635

b. “Public interest” factors .......................................636

III. THE PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT..................637

A. Arguments Of The Parties.............................................637

B. Analysis..............................................................637

1. The language of Rule 12(a).........................................637

2. The interpretation on which Ideal relies.............................638

3. The interpretation by the majority of courts .........................638

4. This court’s interpretation..........................................639

IV. CONCLUSION............................................................640

*604 The defendants in this action assert fairly comprehensive challenges to the plaintiffs claims of infringement by the defendants of the plaintiffs United States patent, non-infringement by the plaintiff of the defendants’ Canadian patent, and various commercial torts. One theme running through the parties’ arguments on the defendants’ motion to dismiss is whether the claims presented-with the exception of the claim that the corporate defendant is infringing the plaintiffs United States patent-should be litigated in this forum or in a pre-existing lawsuit brought by the corporate defendant in the Federal Court of Canada.

I. INTRODUCTION

A. Background And Allegations Of The Complaint

Plaintiff Ideal Instruments, Inc., is a Michigan corporation with its principal place of business in Lansing, Michigan. In its Complaint, Ideal alleges that defendant Rivard Instruments, Inc., is a closely held for profit Canadian corporation and that defendant Meril Rivard, who is a citizen of Canada and resident of Winnipeg, Manitoba, is the president and majority, if not sole, shareholder of Rivard Instruments. Both Ideal and Rivard Instruments manufacture “detectable” hypodermic needles for use, for example, in hypodermic syringes for livestock. The needles are “detectable” in the sense that they are made to be easily detected in the carcasses of slaughtered animals, if they break off or are otherwise inadvertently left behind. Neither Ideal nor Rivard Instruments has any manufacturing or distribution facilities or corporate offices in Iowa. Ideal nevertheless argues that Iowa is a center of the dispute between the parties, because it is a center of the livestock industry in which both parties’ products are used.

More specifically, Ideal is the assignee of United States Patent No. 6,488,668 (the '668 patent) for a “detectable heavy duty needle.” The '668 patent issued on December 3, 2002, and was upheld on ex parte reexamination on December 23, 2004. However, the focus of this litigation is another, subsequent patent for a “detectable heavy duty needle,” for which Ideal is also the assignee, United States Patent No. 6,960,196 (the '196 patent), which issued on November 1, 2005. The Abstract for the '196 patent describes the patented invention as follows:

The present invention provides a detectable heavy duty needle cannula for use in hypodermic syringes and the like. Needle cannula comprises a magnetizable or magnetized stainless steel alloy, which enables needle cannula to be detectable in metal detectors that are commonly used in the meat processing industry to detect broken needle cannulas in the flesh of slaughtered animals.

Complaint, Exhibit A (the '196 patent) (component numbers deleted). Ideal manufactures, sells, and distributes a product exploiting the inventions disclosed in the '668 and the '196 patents under the commercial name “D3 Detectable Needles.”

Similarly, Rivard Instruments owns Canadian Patent No. 2,298,277 (the '277 patent), which submissions by the defendants reveal is a patent for “detectable stainless steel needles for meat packing,” issued March 16, 2004. See Defendants’ Motion to dismiss (docket no.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
434 F. Supp. 2d 598, 2006 U.S. Dist. LEXIS 28334, 2006 WL 1217201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ideal-instruments-inc-v-rivard-instruments-inc-iand-2006.