Inguran, LLC v. Abs Global, Inc.

Procedural entryThis page is a short order in Inguran, LLC v. Abs Global, Inc.. Read the opinion of the Court — 72 F.4th 1272
Court of Appeals for the Federal Circuit·Decided July 5, 2023·No. 22-1385·Published

Opinion

United States Court of Appeals for the Federal Circuit

INGURAN, LLC, DBA STGENETICS, Plaintiff-Appellant

v.

ABS GLOBAL, INC., GENUS PLC, Defendants-Appellees

2022-1385

Appeal from the United States District Court for the Western District of Wisconsin in No. 3:20-cv-00085-wmc, Judge William M. Conley.

Decided: July 5, 2023

Z.W. JULIUS CHEN, Akin Gump Strauss Hauer & Feld LLP, Washington, DC, argued for plaintiff-appellant. Also represented by KRISTEN LOVELAND, PRATIK A. SHAH; DANIEL LYNN MOFFETT, San Antonio, TX.

STEVEN J. HOROWITZ, Sidley Austin LLP, Chicago, IL, argued for defendants-appellees. Also represented by STEPHANIE P. KOH, THOMAS D. REIN.

Before LOURIE, BRYSON, and REYNA, Circuit Judges.

2 INGURAN, LLC v. ABS GLOBAL, INC.

REYNA, Circuit Judge.

Appellant Inguran, LLC appeals the dismissal by the Western District of Wisconsin of the induced infringement suit it brought against Appellee ABS Global, Inc. The district court found that Inguran’s claim was precluded by res judicata based on an earlier judgment the court entered against Appellee. On appeal, Inguran challenges the district court’s res judicata finding and the court’s interpretation of the scope of its earlier judgment. We reverse.

BACKGROUND

The patent at issue, U.S. Patent No. 8,206,987 (the “’987 patent”), titled “Photo-Damage Method for Sorting Particles,” is directed to a method for sorting bull sperm cells according to a specific DNA characteristic in order to preselect the gender of a domestic animal’s offspring. ’987 patent, col. 19 ll. 40–44. Claim 1 of the ’987 patent recites:

1. A method of sorting a mixture of stained sperm cells having either characteristic A or characteristic B into at least one population, the method comprising the steps of:

a. flowing a fluid stream containing stained sperm cells through a flow path at a fluid delivery rate; b. exciting fluorescence emissions from the stained sperm cells having characteristic A and the stained sperm cells having characteristic B flowing in the flow path; c. detecting the fluorescence emissions from the excited sperm cells; d. classifying the stained sperm cells as either having characteristic A or having characteristic B based upon the fluorescence emissions;

INGURAN, LLC v. ABS GLOBAL, INC. 3

e. selecting stained sperm cells in the flow path based on their classification; and f. photo-damaging the selected sperm cells to produce an enriched population of sperm with respect to either characteristic A or characteristic B.

Id. at col. 212 l. 57–col. 213 l. 8. Appellant Inguran, LLC is the patent holder of the ’987 patent. Inguran, doing business as STGenetics (“ST”), provides bull semen-processing services, including to, at one time, Appellee ABS Global, Inc. and Appellee’s parent company Genus PLC (“ABS”). J.A. 6776–78.

ABS is a “bull stud.” A bull stud is a specialized business that sells semen drawn from its own bulls that is packaged in small tubes, or “straws,” for use in artificial insemination. J.A. 6777; Appellee’s Br. 4. Artificial insemination is needed by, for example, dairy farmers and beef producers to increase fertility rates of female calves, which is profitable for milk production. Appellee’s Br. 4. “Conventional ” bovine straws tend to produce an offspring of each sex approximately 50% of the time, since it has approximately 50% of each X-chromosome and Y-chromosome -bearing sperm cells. Id. ST provides bull studs like ABS with “sexed semen straws,” which consist either of predominantly male or female sperm cells. J.A. 6777. This appeal focuses on “sexed semen straws.”

PROCEDURAL HISTORY

The parties have a lengthy litigation history that stems from a contractual relationship. J.A. 6777. In 2006, ABS and ST entered into a contract for sorting semen. Id. The parties entered into another related agreement in 2012. Id.

ABS I

In 2014, ABS filed an antitrust lawsuit in the Western District of Wisconsin, ABS Global Inc. v. Inguran, LLC, No.

4 INGURAN, LLC v. ABS GLOBAL, INC.

14-cv-503 (W.D. Wis. 2014) (“ABS I”), against ST alleging that ST was maintaining a monopoly power for sexed semen processing by its contractual terms and acquisition of patents on the technology. J.A. 6777. ST brought counterclaims and third-party claims for trade secret misappropriation , breach of contract, and, relevant here, patent infringement. J.A. 6778. ST alleged, in a counterclaim, that ABS’s competing GSS System or technology directly infringed at least one claim of the ’987 patent. J.A. 6798. ABS stipulated to direct infringement of claims 1, 2, and 7 of the ’987 patent. See J.A. 3, 271, 3439, 6798; Appellant’s Br. 3.

The parties presented to a jury expert testimony as to damages. ST’s damages expert based his proposed royalty rate by considering many factors, including by conducting a hypothetical negotiation based on the framework in Georgia -Pacific Corp. v. United States Plywood Corp., 318 F. Supp. 1116 (S.D.N.Y. 1970) (“Georgia-Pacific factors”). 1 J.A. 7227–28. ST’s expert highlighted agreements between ABS and prospective licensees to show what royalty rates ST would expect to receive in exchange for giving another company the right to use its technology to process and sell sexed straws. Appellant’s Br. 32; Appellee’s Br. 11; J.A. 7300. ST’s expert calculated that ABS would charge a

1 The fifteen Georgia-Pacific factors set out an analytical framework for assessing a reasonable royalty and for determining the value of the patented technology to parties in the marketplace. Georgia-Pacific Corp., 318 F. Supp. at 1120; see also LaserDynamics, Inc. v. Quanta Comput., Inc., 694 F.3d 51, 60, 60 n.2, 76 (Fed. Cir. 2012). Relevant here is factor 6: “[t]he effect of selling the patented specialty in promoting sales of other products of the licensee; that existing value of the invention to the licensor as a generator of sales of his non-patented items; and the extent of such derivative or convoyed sales.” Georgia-Pacific , 318 F. Supp. at 1120.

INGURAN, LLC v. ABS GLOBAL, INC. 5

royalty rate of $2.05 per straw. Appellant’s Br. 9–10; Appellee ’s Br. 11. ST’s expert testified that ABS’s licensing plan would open additional lines of revenue for ABS. Appellee ’s Br. 10. ST’s expert further opined that the parties would have agreed in a hypothetical negotiation to a perstraw royalty rate of $1.50. Appellant’s Br. 10.

The jury found that claim 2 of the ’987 patent was invalid and that the remaining claims were infringed. J.A. 3, 6798. The jury awarded ST a “lump sum for ABS’s past infringement in the amount of $750,000, and a per straw royalty on future sales of sexed semen straws sold by ABS of $1.25.” J.A. 3802.

The district court provided that: Judgment is entered for ABS or Genus’s future infringement of the ’987 patent, granting ST an ongoing royalty of One Dollar and Twenty-Five Cents ($1.25) per straw of sexed semen sold by ABS that was processed with the infringing GSS technology, or any technology not more than colorably different , where such sale or processing took place in the United States through the remaining life of the ’987 patent.

J.A. 7503. Both parties disputed the scope of the ongoing royalty, and the district court issued an order attempting to resolve the dispute, stating: “th[e] ongoing royalty covers straws sold by ABS that were processed with GSS technology and imported into the United States for sale.” J.A. 5.

The judgment was appealed to the Seventh Circuit.

ABS Glob., Inc. v. Inguran, LLC, 914 F.3d 1054 (7th Cir. 2019). The Seventh Circuit affirmed the district court’s validity findings for the claims and issued a remand order that did not concern judgment of the ongoing royalty of ABS I. Appellant’s Br. 12–13.

6 INGURAN, LLC v. ABS GLOBAL, INC.

ABS II

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

Inguran, LLC v. Abs Global, Inc., (Fed. Cir. 2023).

Inguran, LLC v. Abs Global, Inc. (Inguran, LLC v. Abs Global, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Gillig v. Nike, Inc.
602 F.3d 1354 (Federal Circuit, 2010)
ACUMED LLC v. Stryker Corp.
525 F.3d 1319 (Federal Circuit, 2008)
Amado v. Microsoft Corp.
517 F.3d 1353 (Federal Circuit, 2008)
Forest Laboratories, Inc. v. Ivax Pharmaceuticals, Inc.
501 F.3d 1263 (Federal Circuit, 2007)
Advanced Software Design Corp. v. Fiserv, Inc.
641 F.3d 1368 (Federal Circuit, 2011)
Aspex Eyewear, Inc. v. Marchon Eyewear, Inc.
672 F.3d 1335 (Federal Circuit, 2012)
Jet, Inc. v. Sewage Aeration Systems
223 F.3d 1360 (Federal Circuit, 2000)
International Rectifier Corporation v. Ixys Corporation
383 F.3d 1312 (Federal Circuit, 2004)
Laserdynamics, Inc. v. Quanta Computer, Inc.
694 F.3d 51 (Federal Circuit, 2012)
Georgia-Pacific Corp. v. United States Plywood Corp.
318 F. Supp. 1116 (S.D. New York, 1970)
Brain Life, LLC v. Elekta Inc.
746 F.3d 1045 (Federal Circuit, 2014)
Frederick Grede v. FCStone LLC
746 F.3d 244 (Seventh Circuit, 2014)
Kendale L. Adams v. City of Indianapolis
742 F.3d 720 (Seventh Circuit, 2014)
Simpleair, Inc. v. Google LLC
884 F.3d 1160 (Federal Circuit, 2018)