Intertech Licensing Corp. v. Brown & Sharpe Manufacturing Co.

708 F. Supp. 1423, 11 U.S.P.Q. 2d (BNA) 1258, 1989 U.S. Dist. LEXIS 2971, 1989 WL 26006
CourtDistrict Court, D. Delaware
DecidedMarch 8, 1989
DocketCiv. A. 83-220-JLL
StatusPublished
Cited by8 cases

This text of 708 F. Supp. 1423 (Intertech Licensing Corp. v. Brown & Sharpe Manufacturing Co.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Intertech Licensing Corp. v. Brown & Sharpe Manufacturing Co., 708 F. Supp. 1423, 11 U.S.P.Q. 2d (BNA) 1258, 1989 U.S. Dist. LEXIS 2971, 1989 WL 26006 (D. Del. 1989).

Opinion

OPINION

LATCHUM, Senior District Judge.

This patent infringement action involving U.S. Patent No. 3,226,833 (“the ’833 patent”) has an unusual history. It is remarkable because of the long delays surrounding its enforcement against the defendant and because plaintiff’s legal position has materially shifted over the years.

Defendant Brown & Sharpe Manufacturing Company, Inc. (“Brown & Sharpe”), throughout the life of this litigation, has asserted the equitable doctrine of laches as a bar to this infringement action. (Docket Item [“D.I.”] 39; D.I. 68.)

Following initial legal maneuvering by the parties, explained later, the Court, pursuant to Rule 42(b), Fed.R.Civ.P., tried, without a jury, the separate issue of laches on December 5, 1988. After considering the sufficiency and weight of the evidence adduced at trial, the demeanor of the witnesses who testified, and the post-trial memoranda filed by the parties, the Court enters the following findings of fact and conclusions of law embodied within this Opinion, as permitted by Rule 52(a), Fed.R. Civ.P.

I. FACTS

On January 4, 1966, the United States Patent Office issued the ’833 patent to Jerome H. Lemelson. (D.I. 1, Ex.) The ’833 patent, which is entitled “Automatic Inspection Apparatus and Method,” embodies 20 claims. (Id.)

Lemelson granted an exclusive license in the ’833 patent to plaintiff Intertech Licensing Corporation (“Intertech”) on July 1,1981. (See D.I. 50, Ex. A.) The transaction appears to have been tax-driven, because Intertech conducts no business other than enforcing and negotiating sublicenses on the ’833 patent and other Lemelson patents. (D.I. 50 at ¶113A & B.) Throughout this Opinion, Intertech, Lemelson, and various other agents and attorneys retained by Lemelson will be referred to collectively as Lemelson, unless otherwise specified. 1

Defendant Brown & Sharpe manufactures and sells an array of industrial products including machine tools and precision measuring equipment, such as coordinate measuring machines. (See Plaintiff’s Exhibit [“PX”] 7.) Brown & Sharpe’s coordinate measuring machines are highly accurate measuring instruments typically used in quality control labs where measurements of the utmost precision are required. See Lemelson v. United States, 3 Cl.Ct. 161, 181 (1983) (related litigation in which infringement of the same patent claim involved in this case was alleged), vacated in part, 752 F.2d 1538 (Fed.Cir.1985). ' The machines are capable of conducting a wide variety of measurements. 3 Cl.Ct. at 162. Brown & Sharpe’s line of coordinate measuring machines, which is sold primarily under the “Validator” trademark, has included model numbers 50, 100, 200, and 300.

During the period from 1969 through 1973, Lemelson and Brown & Sharpe exchanged a cross fire of correspondence. Lemelson in some letters suggested, in a somewhat understated tone, that Brown & Sharpe’s products might be infringing his patents. In other correspondence Lemel *1425 son expressly and unequivocally accused Brown & Sharpe of infringement and threatened litigation. The Lemelson correspondence and the procedural history of this case are set forth below in rather painstaking detail, in order to provide a flavor for Lemelson’s dilatory and inconsistent conduct.

A. The 1969 Correspondence

Plaintiffs initial contact with Brown & Sharpe was by letter dated March 12, 1969. The letter of March 12 called defendant’s attention to the ’833 patent, perhaps hinted that Brown & Sharpe products infringed the ’833 patent, and solicited Brown & Sharpe to enter into licensing negotiations with Lemelson. 2

Lemelson wrote Brown & Sharpe again on April 29, 1969:

Reference is made to your letter of March 24, 1969, ... concerning [the ’833 patent]____
In your aforesaid letter you state that you do not believe that your Validator100 is covered by the claims of [the ’833 patent].
It will be appreciated if you particularly point out those limitations of the claims in [the ’833 patent] that are not found in the Brown and Sharpe Validator-100.

(D.I. 37, Ex. D.)

Brown & Sharpe answered Lemelson with a letter dated May 9, 1969:

Replying to your letter of April 29, 1969 which deals with [the '833 patent] ..., we would restate our belief, contained in [our] letter of March 24, 1969 ..., that our Validator-100 does not use the features covered by the patent. ******
We enclose a copy of our Fact Sheet V-100 for your use.

(D.I. 37, Ex. E; PX 32; DX AY.) The Fact Sheet V-100 document mentioned in the May 9 letter describes Brown & Sharpe’s Validator-100 machine. The document reads in part:

The Validator-100 is a 4-mode coordinate and diameter measuring machine. The optimum in mechanical and electronic characteristics have been incorporated in design to provide a resolution of 50-millionths of an inch for measurements along three mutually perpendicular axes (X, Y and Z), and for hole diameter measurements (D).
******
The Validator-100 has a work size capacity of 36" X 24" x 18" with a corresponding measuring capacity of 36" (X), 24" (Y) and 8" (Z) and a hole diameter measuring capability of from .500" to 2.400". 3

(D.I. 37, Ex. E [footnote and emphasis added].)

B. The 1970 Trade Show

Following the 1969 correspondence, Lemelson’s next brush with Brown & Sharpe occurred in September, 1970, at a trade show in Chicago sponsored by the National Machine Tool Builders Association. Brown & Sharpe maintained a booth at the trade show, at which some of its machines were exhibited. (D.I. 79 at 2.)

The testimony of Mr. Kurt Businger, taken by deposition for use at trial, describes *1426 the Brown & Sharpe display at the 1970 trade show. 4

Q Did Brown & Sharpe have a machine, a coordinate measuring machine on display at [the 1970 trade] show?
A That’s correct.
Q And what type of probe 5 was on that coordinate measure machine at the tool show?

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708 F. Supp. 1423, 11 U.S.P.Q. 2d (BNA) 1258, 1989 U.S. Dist. LEXIS 2971, 1989 WL 26006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intertech-licensing-corp-v-brown-sharpe-manufacturing-co-ded-1989.