Ingevity Corporation v. BASF Corporation

District Court, D. Delaware·Decided November 17, 2020·No. 1:18-cv-01391·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

INGEVITY CORPORATION, INGEVITY SOUTH CAROLINA, LLC,

Plaintiffs; Civil Action No. 18-cv-1391-RGA v. BASF CORPORATION, Defendant.

MEMORANDUM OPINION Karen E. Keller, Jeffrey T. Castellano, SHAW KELLER LLP, Wilmington, DE; Brian M. Buroker, GIBSON, DUNN & CRUTCHER LLP, Washington, DC; Eric T. Syu, Frank P. Coté, GIBSON, DUNN & CRUTCHER LLP, Irvine, CA; Stuart Rosenberg, GIBSON, DUNN & CRUTCHER LLP, Palo Alto, CA.

Attorneys for Plaintiffs.

Rodger D. Smith II, Anthony D. Raucci, MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Wilmington, DE; Angela C. Tarasi, Brian Eutermoser, Mikaela Stone, KING & SPALDING LLP, Denver, CO; Bobby R. Burchfield, Christopher C. Yook, Norm A. Armstrong, KING & SPALDING LLP, Washington, DC; James P. Brogan, Thomas J. Friel, Jr., KING & SPALDING LLP, Palo Alto, CA.

Attorneys for Defendant.

November 17, 2020 /s/ Richard G. Andrews ANDREWS, U.S. DISTRICT JUDGE:

Before the Court are Defendant’s Motion for Summary Judgment (D.I. 289) and Plaintiffs’ Motion for Summary Judgment (D.I. 291). The motions are fully briefed. (D.I. 290, 293, 305, 309, 317, 320). I heard oral argument on October 26, 2020. (D.I. 417). I. BACKGROUND Plaintiffs Ingevity Corporation and Ingevity South Carolina, LLC filed suit against Defendant BASF Corporation asserting infringement of U.S. Patent No. RE38,844 (“the ʼ844 patent”). (D.I. 1 at 5-8). The ʼ844 patent discloses a “method for sharply reducing diurnal breathing loss emissions from automotive evaporative emissions control systems by providing multiple layers, or stages, of adsorbents.” (D.I. 1, Exh. A at 2 of 13). Specifically, the ʼ844 patent claims “[a] method for reducing fuel vapor emissions in automotive evaporative emissions control systems,” which requires contacting the fuel vapor with an initial adsorbent volume having an incremental adsorption capacity (“IAC”) of greater than 35 g n-butane/L and at least one subsequent adsorbent volume with an IAC less than 35 g n-butane/L. (Id. at 11 of 13). Plaintiffs claim that Defendant is manufacturing, testing, and marketing a new generation of Defendant’s product EvapTrap XC, which is a “bleed trap that can be used as part of, or in conjunction with, a fuel vapor canister.” (D.I. 1 at 4). Plaintiffs allege that Defendant and its customers and vendors have “performed and are currently performing testing for the New

EvapTrap XC in conjunction with a fuel vapor canister.” (Id.). Plaintiffs claim that Defendant has infringed claims 1, 4, 11, 18, 19, 24, 43, and 48 of the ʼ844 patent by conducting this testing. (Id. at 5-6; see D.I. 406-1 at 27 of 36).

1 Defendant filed a motion for summary judgment and to exclude the opinions of Plaintiffs’ damages expert. (D.I. 289). Defendant argues for summary judgment on invalidity for indefiniteness, invalidity for lack of written description and failure to enable the invention, invalidity as a third party, Delphi Technologies, was a prior inventor of the invention, and that

the patent is unenforceable due to patent misuse. (D.I. 290 at 11, 15, 24). Defendant further asserts that the opinions of Plaintiffs’ damages expert should be excluded for being unreliable and moves for summary judgment of no damages. (Id. at 31). Plaintiffs also moved for summary judgment. (D.I. 291). Plaintiffs contend that they are entitled to summary judgment on Defendant’s equitable defenses (patent misuse, unclean hands, waiver, implied waiver, and equitable estoppel) and its enablement defense. (D.I. 293). Plaintiffs further argue for summary judgment that EvapTrap XC is not a staple article of commerce. (Id. at 29-31). Lastly, Plaintiffs move to exclude the testimony of two of Defendant’s expert witnesses, one for unreliability and the other under Daubert. (Id. at 31, 34-35). At oral argument, I denied both parties’ summary judgment motions on enablement and

written description. (D.I. 417 at 79: 7-11). I also denied Defendant’s motion for summary judgment on indefiniteness. (Id. at 79-80). After oral argument, I denied Plaintiffs’ Daubert motions to exclude Defendant’s expert witnesses’ testimony. (D.I. 410). Still pending are Defendant’s motion for summary judgment due to prior invention, both parties’ motions regarding patent misuse, Plaintiffs’ motion for summary judgment that EvapTrap XC is not a staple article of commerce, and Defendant’s motion to exclude the opinion of Plaintiffs’ expert witness on damages.

2 II. LEGAL STANDARD “The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” FED. R. CIV. P. 56(a). The moving party has the initial burden of proving the absence of a genuinely

disputed material fact relative to the claims in question. Celotex Corp. v. Catrett, 477 U.S. 317, 330 (1986). Material facts are those “that could affect the outcome” of the proceeding, and “a dispute about a material fact is ‘genuine’ if the evidence is sufficient to permit a reasonable jury to return a verdict for the nonmoving party.” Lamont v. New Jersey, 637 F.3d 177, 181 (3d Cir. 2011) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986)). The burden on the moving party may be discharged by pointing out to the district court that there is an absence of evidence supporting the non-moving party’s case. Celotex, 477 U.S. at 323. The burden then shifts to the non-movant to demonstrate the existence of a genuine issue for trial. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586–87 (1986); Williams v. Borough of West Chester, Pa., 891 F.2d 458, 460–61 (3d Cir. 1989). A non-moving

party asserting that a fact is genuinely disputed must support such an assertion by: “(A) citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations . . . , admissions, interrogatory answers, or other materials; or (B) showing that the materials cited [by the opposing party] do not establish the absence . . . of a genuine dispute . . . .” FED. R. CIV. P. 56(c)(1). If the non-moving party fails to make a sufficient showing on an essential element of its case with respect to which it has the burden of proof, the moving party is entitled to judgment as a matter of law. See Celotex Corp., 477 U.S. at 322.

3 When determining whether a genuine issue of material fact exists, the court must view the evidence in the light most favorable to the non-moving party and draw all reasonable inferences in that party’s favor. Scott v. Harris, 550 U.S. 372, 380 (2007); Wishkin v. Potter, 476 F.3d 180, 184 (3d Cir. 2007).

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