Indium Corp. of America v. Semi-Alloys, Inc.

611 F. Supp. 379, 225 U.S.P.Q. (BNA) 1159, 1985 U.S. Dist. LEXIS 22548
CourtDistrict Court, N.D. New York
DecidedFebruary 15, 1985
Docket82-CV-482
StatusPublished
Cited by7 cases

This text of 611 F. Supp. 379 (Indium Corp. of America v. Semi-Alloys, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indium Corp. of America v. Semi-Alloys, Inc., 611 F. Supp. 379, 225 U.S.P.Q. (BNA) 1159, 1985 U.S. Dist. LEXIS 22548 (N.D.N.Y. 1985).

Opinion

*380 MEMORANDUM-DECISION AND ORDER

McCURN, District Judge.

Plaintiff Indium Corporation of America [“Indium”] brings this action seeking a declaration of patent invalidity, treble damages for alleged violations of the antitrust laws, and damages based on a pendant state law claim for unfair competition. Presently before the court is defendant Semi-Alloys’ motion for summary judgment. Fed.R.Civ.P. 56. For the reasons set forth below, defendant’s motion is granted.

The facts of this case are fully set forth in this court’s two previous decisions, Indium v. Semi-Alloys, 566 F.Supp. 1344 (N.D.N.Y.1983) [“Indium I” ] and Indium v. Semi-Alloys, 591 F.Supp. 608 (N.D.N.Y.1984) [“Indium II”], familiarity with which is assumed. Briefly stated, Indium challenges the validity and enforceability of defendant’s patents for “tack-welded frame lids” or “combination covers” 1 and contends that Semi-Alloys’ attempted enforcement of the allegedly fraudulent patents constitutes an unlawful restraint of trade in violation of the antitrust laws.

Semi-Alloys asserts that this court does not have subject matter jurisdiction over the declaratory judgment action and that Indium lacks standing to bring the antitrust action. These threshold issues were previously addressed in Indium I and Indium II.

In Indium I, the court granted Semi-Alloys’ motion to dismiss the complaint, holding that Indium’s allegations failed to establish a case or controversy concerning the patents sufficient to invoke the court’s subject matter jurisdiction and failed to establish Indium’s standing to assert antitrust claims. The claims were dismissed without prejudice and Indium was afforded an opportunity to file an amended complaint.

In Indium II the court held that Indium alleged sufficient additional facts in the amended complaint which, if true, would establish jurisdiction and standing. Accordingly, the court denied Semi-Alloys’ motion to dismiss the amended complaint.

The court then limited initial discovery to the questions of jurisdiction and standing in anticipation of summary judgment motions on these threshold issues. That discovery has now been completed. 2 Semi-Alloys contends that the facts uncovered in discovery do not support the allegations contained in Indium’s amended complaint and therefore summary judgment in favor of Semi-Alloys must be granted. Indium contends that there are disputed issues of material fact which make summary judgment inappropriate.

It is well established that the party moving for summary judgment must demonstrate the absence of genuine issues of material fact. Fed.R.Civ.P. 56(c); Project Release v. Prevost, 722 F.2d 960, 968 (2d Cir.1983); Cooper v. Ford Motor Co., 748 F.2d 677, 679 (Fed.Cir.1984); F.H. Cobb Co. v. New York State Teamsters Conference and Retirement Fund, 584 F.Supp. 1181, *381 1184 (N.D.N.Y.1984). Although it is clear that the burden of demonstrating the absence of material fact is on the moving party, the non-moving party “may not rest upon mere conclusory allegations or denials.” Quinn v. Syracuse Model Neighborhood Corp., 613 F.2d 438, 445 (2d Cir.1980) (iquoting SEC v. Research Automation Corp., 585 F.2d 31, 33 (2d Cir.1978)). The party opposing summary judgment must come forward with “concrete particulars” demonstrating that there are genuine issue of disputed fact for trial. Project Release v. Prevost, 722 F.2d at 969, (quoting SEC v. Research Automation Corp., 585 F.2d 31, 33 (2d Cir.1978)). See also F.H. Cobb Co. v. New York State Teamsters Conference Pension and Retirement Fund, 584 F.Supp. at 1184; Tirolerland, Inc. v. Lake Placid 1980 Olympic Games, Inc., 592 F.Supp. 304, 310 (N.D.N.Y.1984).

I. Declaratory Judgment Jurisdiction

The parties do not dispute the law applicable to the issue of declaratory judgment jurisdiction. In order to establish subject matter jurisdiction on its declaratory judgment claims, Indium must show that when it filed this lawsuit, it believed it would be sued for patent infringement by Semi-Alloys. As this court stated in Indium I:

The plaintiff must show “a well-grounded fear that should he continue or commence the activity in question, he or one or more of his customers face an infringement suit.” Williams Gold Refining Co., Inc. v. Semi-Alloys, Inc., 434 F.Supp. 453, 456 (W.D.N.Y.1977), or stated differently, “a reasonable apprehension of an infringement suit or threat of one to itself and its customers if plaintiff continues the activity in question.” Nippon Elec. Glass Co., Ltd. v. Sheldon, 489 F.Supp. 119, 122 (S.D.N.Y.1980).

Indium I at 1346. See also Indium II at 611. The test is an objective one; a purely subjective apprehension, without objective reasons for fearing suit, is insufficient to invoke jurisdiction. See e.g. Indium I at 1346; Tubeco, Inc. v. Crippen Pipe Fabrication, Corp., 402 F.Supp. 838, 844-45 (E.D.N.Y.1975) aff'd mem., 538 F.2d 314 (2d Cir.1976).

In its original complaint Indium alleged that it feared suit because Semi-Alloys had asserted its patent rights against competitors in previous lawsuits and because Semi-Alloys sent Indium a letter offering to license Indium. Additionally, Indium presented documentation that Semi-Alloys commenced suit against Indium and Semi-Alloys’ former employee Jack Paschall for theft of trade secrets and breach of an employment contract in connection with Indium’s hiring of Paschall [“Paschall action”].

In Indium I this court held that, assuming the truth of these allegations, Semi-Alloys’ conduct was not sufficiently threatening to induce reasonable apprehension of an infringement suit in Indium. Specifically, in discussing the allegations concerning prior patent litigation the court stated:

The patentee’s record of commencing two suits on the patents in 1975 could hardly have been a source of great intimidation when this complaint was filed in 1982. At most, the record “indicates that under certain circumstances [Semi-Alloys] will pursue patent infringement litigation to defend what it perceives as an infringement of its patents.” International Harvester Co. v. Deere & Co.,

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Bluebook (online)
611 F. Supp. 379, 225 U.S.P.Q. (BNA) 1159, 1985 U.S. Dist. LEXIS 22548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indium-corp-of-america-v-semi-alloys-inc-nynd-1985.