InterMetro Industries Corp. v. Capsa Solutions, LLC

50 F. Supp. 3d 657, 2014 WL 4919637
CourtDistrict Court, M.D. Pennsylvania
DecidedSeptember 30, 2014
DocketNos. 3:13-CV-02853, 3:13-CV-02854, 3:13-CV-02856
StatusPublished
Cited by1 cases

This text of 50 F. Supp. 3d 657 (InterMetro Industries Corp. v. Capsa Solutions, LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
InterMetro Industries Corp. v. Capsa Solutions, LLC, 50 F. Supp. 3d 657, 2014 WL 4919637 (M.D. Pa. 2014).

Opinion

OMNIBUS MEMORANDUM OPINION

ROBERT D. MARIANI, District Judge.

I. Introduction

Presently before the Court are three Motions to Dismiss, filed by the above-captioned defendants in their respective cases. This matter arises out of five separately-filed Complaints from Plaintiff In-terMetro Industries, each of which alleges, in nearly identical language, claims for direct, indirect, and willful infringement of six registered patents that the Plaintiff allegedly held.1 The Defendants’ respective Motions to Dismiss likewise raise overlapping issues. In the interests of judicial economy, the Court will therefore treat them together in this Omnibus Opinion. For the reasons discussed below, the Court will grant each Motion.

II. Factual Allegations

The three complaints2 allege the following well-pleaded facts.

Plaintiff InterMetro Industries is the owner of U.S. Patent Nos. 6,493,220 (“the '220 patent”), 6,721,178 (“the '178 patent”), 7,612,999 (“the '999 patent”), 7,791,866 (“the '866 patent”), 7,990,691 (“the '691 patent”), 8,526,176 (“the '176 patent”), and others not subject to this lawsuit. {See Capsa Compl., Doc. 1, at ¶¶ 9, 12, 23; Eno-vate Compl. at ¶¶ 10, 13, 24; Howard Compl. at ¶¶ 8, 11, 22.) These patents embody “point-of-care cart technology” developed over the course of a decade by Intermetro and its predecessors-in-interest. (Capsa Compl. at ¶¶ 10-12; Enovate Compl. at ¶¶ 11-13; Howard Compl. at ¶¶ 9-11.) More specifically, the patented inventions are mobile carts that carry a computer and display screen, primarily for use in medical settings, so that healthcare providers are able to move from patient to patient with full access to electronic files. {See Capsa Exs. 1, 3, 5-9; Enovate Exs. 1, 3, 5-9; Howard Exs. 1, 3, 5-9.) When [660]*660InterMetro’s first predecessor-in-interest, nonparty EMS Technologies, Inc., obtained the first patent (the '220 patent), it issued a press release describing the uses of the product and indicating its ownership of the patent. (Capsa Compl. at ¶ 10; Enovate Compl. at ¶ 11; Howard Compl. at ¶ 9.)

InterMetro and its various predecessors-in-interest continued to assert their ownership and prosecute violations of their patents over the years. EMS Technologies first sued a competitor for infringing the '220 patent in 2003. (Capsa Compl. at ¶ 13; Enovate Compl. at ¶ 14; Howard Compl. at ¶ 12.) This led to multiple other “patent infringement lawsuits that resolved on terms which included the infring-ers paying ‘undisclosed amounts’ to license the patents, and acknowledging the validity and enforceability of the patents.” (Capsa Compl. at ¶ 17; Enovate Compl. at ¶ 18; Howard Compl. at ¶ 16.) Flo Healthcare Solutions, which obtained ownership of the patents from EMS and later assigned them to InterMetro, also sued nonparties Rioux Vision, Inc. and Omnicell, Inc. for infringing the '178 patent in 2006 and 2008, respectively. (Capsa Compl. at ¶¶ 20, 22; Enovate Compl. at ¶¶ 21, 23; Howard Compl. at ¶¶ 19, 21.) InterMetro settled the cases against Rioux Vision and Omnicell in 2010, which included “granting them a license to the patents.” (Capsa Compl. at ¶ 25; Enovate Compl. at ¶ 26; Howard Compl. at ¶ 24.)

InterMetro further alleges that “Competitors in the point-of-care-cart market have long been on notice of InterMetro’s patents for the point-of-care-cart technology and its intent to enforce these patents.” (Capsa Compl. at ¶ 29; Enovate Compl. at ¶ 30; Howard Compl. at ¶ 28.) The first lawsuit initiated by EMS in 2003 was covered in an article published by the Atlanta Business Chronicle, in which an EMS representative stated that, “We are quite determined to enforce our patent rights.” (Capsa Compl. at ¶ 14; Enovate at ¶ 15; Howard Compl. at ¶ 13.) EMS further “issu[ed] press release and published] product brochures with notice of its patents.” (Capsa Compl. at ¶ 15; Enovate Compl. at ¶ 16; Howard Compl. at ¶ 14.) EMS also “marked its point-of-care carts with its patent numbers; approached competitors at trade shows to inform them of its patents; and sent letters to competitors offering an opportunity to license its patent rights,” (Capsa Compl. at ¶ 16; Eno-vate Compl. at ¶ 17; Howard Compl. at ¶ 15.) Flo also “sent notice letters to competitors in the point-of-care-cart market” and to a predecessor of Defendant Eno-vate, which letters included “the related patents and patent applications,” offered the opportunity to license the '220 and '178 patents, and “pointed out that other competitors were licensed under the patents.” (Capsa Compl. at ¶¶ 18-19; Eno-vate Compl. at ¶¶ 19-20; Howard Compl. at ¶¶ 17-18.) Finally, “[s]ince the '220 patent issued ..., InterMetro and its predecessors have continuously marked their point-of-care carts with the '220 patent and related patents.” (Capsa Compl. at ¶ 28; Enovate Compl. at ¶ 29; Howard Compl. at ¶ 27.)

Nonetheless, InterMetro alleges that the Defendants infringed each of the six named patents. In relatively sparse allegations, it states that the Defendants have been “directly infringing” its patents “by making, using, offering for sale and selling, without InterMetro’s authority, computer carts that embody one or more of [each of its patents’] claims,” (Capsa Compl. at ¶¶ 33, 50, 68, 84,102, 122; Enovate Compl. at ¶¶ 34, 50, 70, 85, 100, 120; Howard Compl. at ¶¶ 32, 49, 65, 81, 97, 113), and indirectly infringing the patents by inducing and contributing to other forms of similar infringement, (Capsa Compl. at [661]*661¶ 35, 53, 70, 87, 106, 125; Enovate Compl. at ¶¶ 36, 54, 72, 87, 104, 122; Howard Compl. at ¶¶ 34, 51, 67, 83, 99, 115). Moreover, the Defendants advertise each of the offending products by extolling benefits that “could not be realized” without infringing on InterMetro’s patent claims. (Capsa Compl. at ¶¶ 39, 58, 74, 92, 112, 130; Enovate Compl. at ¶¶ 39, 60, 75, 90, 110, 125; Howard Compl. at ¶¶ 38, 55, 71, 87, 103, 119.) Indeed, the Defendants’ products had no “substantial non-infringing use.” (Capsa Compl. at ¶¶ 40, 59, 75, 93, 113, 131; Enovate Compl. at ¶¶ 40, 61, 76, 91, 111, 126; Howard Compl. at ¶¶ 39, 56, 72, 88, 104, 120.) InterMetro further alleges that all such infringements were willful and deliberate. (Capsa Compl. at ¶¶ 42, 61, 77, 95, 115,133; Enovate Compl. at ¶¶ 42, 63, 78, 93, 113, 128; Howard Compl. at ¶¶ 41, 58, 74, 90, 106, 122.) It seeks equitable and monetary remedies. (See Capsa Compl. at pp. 25-26; Enovate Compl. at pp. 25-27; Howard Compl. at pp. 24-25.)

III. Standard of Review

The Federal Rules of Civil Procedure generally require only that a “pleading that states a claim for relief must contain ... a short and plain statement of the claim showing that the pleader is entitled’ to relief.” Fed.R.Civ.P. 8(a)(2). A pleading that does not so provide is subject to dismissal under Federal Rule 12(b)(6).

The cases Bell Atlantic Gorp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) and Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) lay out the requirements to survive a Rule 12(b)(6) Motion to Dismiss in most civil cases.

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50 F. Supp. 3d 657, 2014 WL 4919637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intermetro-industries-corp-v-capsa-solutions-llc-pamd-2014.