Ion Beam Applications S.A. v. Titan Corp.

156 F. Supp. 2d 552, 2000 U.S. Dist. LEXIS 21538, 2000 WL 33399962
CourtDistrict Court, E.D. Virginia
DecidedSeptember 26, 2000
Docket2:00CV14
StatusPublished
Cited by11 cases

This text of 156 F. Supp. 2d 552 (Ion Beam Applications S.A. v. Titan Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ion Beam Applications S.A. v. Titan Corp., 156 F. Supp. 2d 552, 2000 U.S. Dist. LEXIS 21538, 2000 WL 33399962 (E.D. Va. 2000).

Opinion

ORDER AND OPINION

FRIEDMAN, District Judge.

The plaintiffs in this case seek a declaratory judgment of invalidity and nonin-fringement regarding the defendants’ patent, No. 5,396,074 for “Irradiation System Utilizing Conveyor Transformed Article Carriers” (issued March 7, 1995), and a claim under the common law for unfair competition. The complaint in this case was filed on January 6, 2000, in Alexandria, Virginia. 1 The primary plaintiff, Ion Beam Applications (IBA), is a Belgium corporation with its primary place of business in Belgium. The plaintiffs, Griffith Micro Science International, Inc. and Ster-iGenics International, Inc., are wholly-owned subsidiaries of IBA and are incorporated in Delaware with primary places of business in Illinois. SteriGenics also operates businesses in California. Radiation Dynamics, Inc. is also a subsidiary of IBA, and is incorporated in New York, with its place of business in New York.

IBA was founded in 1986 and works with particle acceleration systems. See Affidavit of Arnold Herrer, IBA Product Manager. In particular, IBA works in industrial sterilization/ionization, medical imaging and cancer radiotherapy. Since acquiring Griffith, SteriGenics and Radiation Dynamics, IBA has started focusing on food treatment. See Herrer Affidavit. The use of the irradiation treatment in the food processing industry is the subject of the perceived dispute between IBA and the defendants.

The defendant Titan Corporation’s primary place of business is in San Diego, California, and it is incorporated in Delaware. The defendant Titan Scan is a wholly-owned subsidiary of Titan Corporation (collectively referred to as Titan), and also has its primary place of business in San Diego, California. See Declaration of John Allen, Vice President of Titan Scan. Titan has offices in Northern Virginia (Alexandria and Reston). However, the functions of the Virginia offices are unrelated to the subject matter of this litigation. See Declaration of John Allen, Titan Vice President (dated Feb. 24, 2000) (attached to Defs’ Memorandum). The defendants’ alleged patent is for an “Irradiation System Utilizing Conveyor Transformed Article Carriers,” and was issued by the Patent Office on March 7,1995.

Apparently like Titan, IBA has recently become involved in the manufacture, sale and use of irradiation systems in the United States due to its acquisitions of the subsidiaries listed above. According to the allegations in the complaint, Titan has informed IBA of its contention that IBA is infringing on its patent. Amd. Complaint at ¶ 11. Based on information received from a third party, BetaBeam, IBA believes that Titan intends to file suit for infringement when IBA opens a manufacturing plant in New Jersey in or around February 2001. Amd. Complaint at ¶ 12. Additionally, IBA claims that Titan has threatened IBA’s potential customers with infringement suits if they use IBA’s product. See Amended Complaint pp. 1-3.

*554 Rather than answering the complaint, Titan moved pursuant to Rule 12 for dismissal of the case or for transfer to the Southern District of California. IBA responded to the motions, and then, filed an amended complaint. Both motions were set for hearing. As the Court noted on the record at the hearing, the motion to dismiss was effectively mooted by the plaintiffs’ amended complaint; neither party opposed the Court’s interpretation of the status of the motion to dismiss, and instead the parties argued the motion to transfer. The Court took the motion to transfer under advisement. Almost immediately after the Court heard the motion to transfer, the defendants filed a second (renewed) motion to dismiss relying on the argument set forth in its memorandum in support of its first motion to dismiss. Titan did not specifically ask the Court to withhold ruling on the motion to transfer until ruling on the motion to dismiss pursuant to Rule 12(b)(1) which is based on Titan’s position that the Court lacks subject matter jurisdiction based on the absence of an actual controversy between the parties. However, the Court wrote the parties notifying them that it would withhold ruling on the motion to transfer until it decided the motion to dismiss, which raises jurisdictional arguments. The motion to dismiss is now fully briefed and argument is unnecessary. Therefore, this Opinion addresses both the motion to dismiss, and to the extent necessary, the motion to transfer.

ANALYSIS

I. Titan’s Motion to Dismiss

The defendants argue that the Court lacks subject matter jurisdiction and that the plaintiffs’ claims should be dismissed pursuant to Federal Rule Civil Procedure 12(b)(1). Specifically, the defendants contend that the facts alleged by the plaintiff do not support a justiciable case and controversy for the Court to consider. The defendants originally argued this basis for a motion to dismiss as to the original complaint, and then after the complaint was amended, the defendants moved to dismiss the amended complaint relying solely on its previous argument. Docket Number 17 (motion to dismiss amended complaint). More specifically, Titan argues that an actual controversy does not exist between the parties sufficient to place this matter within the Court’s jurisdiction.

The standard for judging whether a complaint states a justiciable controversy pursuant to the Declaratory Judgement Act for an action of patent non-infringement or invalidity is a two-part test requiring (1) that the patentee create a reasonable apprehension on the part of the plaintiff that the patentee will initiate suit of the allegedly infringing activity if it continues, and (2) that the plaintiff bringing an action for a declaratory judgment of non-infringement or invalidity produce or be in the process of producing an infringing product. See Fina Research v. Baroid Ltd., 141 F.3d 1479 (Fed.Cir.1998) (utilizing two-part test to determine jurisdiction) (citations omitted); EMC Corp. v. Norand Corp., 89 F.3d 807, 810 (Fed.Cir.1996), cert. denied, 519 U.S. 1101, 117 S.Ct. 789, 136 L.Ed.2d 730 (1997); BP Chem. Ltd. v. Union Carbide Corp., 4 F.3d 975, 978 (Fed.Cir.1993) (using two-part test).

Titan argues that neither of these two factors are met in this case. First, Titan argues that the plaintiffs failed to adequately allege that it has engaged in conduct subject to a charge of patent infringement or that it has made meaningful preparation to do so. Second, Titan argues that it has not threatened the plaintiffs with an action for patent infringement. Finally, Titan argues that because the Court lacks subject matter jurisdiction *555 over IBA’s patent claims, it should not exercise jurisdiction over the pendent and supplemental claim of unfair competition. Each of Titan’s arguments is addressed below in light of the allegations contained in the Amended Complaint filed by IBA.

A. Apprehension of Suit

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156 F. Supp. 2d 552, 2000 U.S. Dist. LEXIS 21538, 2000 WL 33399962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ion-beam-applications-sa-v-titan-corp-vaed-2000.