Jennings v. Auto Meter Products, Inc.

495 F.3d 466, 83 U.S.P.Q. 2d (BNA) 1577, 2007 U.S. App. LEXIS 17618, 2007 WL 2120337
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 25, 2007
Docket06-2466
StatusPublished
Cited by85 cases

This text of 495 F.3d 466 (Jennings v. Auto Meter Products, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jennings v. Auto Meter Products, Inc., 495 F.3d 466, 83 U.S.P.Q. 2d (BNA) 1577, 2007 U.S. App. LEXIS 17618, 2007 WL 2120337 (7th Cir. 2007).

Opinion

WOOD, Circuit Judge.

Plaintiff Douglas M. Jennings designed an aftermarket dashboard bezel — that is, a molded shape that fits over an automobile’s instrument panel. Hoping to make money from his design through manufacturing and selling his bezels in the auto parts aftermarket and to forestall copycats, Jennings applied to the U.S. Patent and Trademark Office (“PTO”) for a patent. As part of her review of Jennings’s application, the patent Examiner contacted defendants Auto Meter Products, Inc. (“Auto Meter”), Gauge Works, LLC (“Gauge Works”), and Gregory Day to inquire whether the bezel they were selling was on sale or publicly available before Jennings applied for his patent. Jennings believes that the defendants, in response to the Examiner’s inquiries, fraudulently misled her into believing that Jennings was not in fact the inventor of the. bezel.

In addition to continuing to pursue his patent application, Jennings filed this action against the defendants under the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. §§ 1962(a)-(d), as well as its Indiana counterpart, Ind.Code §§ 35-45-6-2. RICO fit the bill, in Jennings’s opinion, because the defendants were engaged in “the type of unfair competition that one would expect from a Mafia family or narcotics cartel.” His complaint alleged that the defendants had commandeered the PTO through a pattern of racketeering activity by flooding it (via mail and wire transmissions) with false information in order to deny Jennings á patent and thereby “exploit the market for the bezel without compensating Jennings for use of his invention.” In addition to his federal and state RICO theories, Jennings asserted various grounds for recovery under Indiana state law, such as unauthorized control of his property, conversion, and fraud.

The defendants moved to dismiss on various grounds. They argued that the RICO counts failed to state a claim upon which relief could be granted, see FED. R. CIV. P. 12(b)(6), because Jennings had not adequately alleged a pattern of racketeering activity. They also maintained that the state-law claims were unripe, because Jennings’s patent application was still pending before the Board of Patent Appeals and Interferences (“BPAI”) at the time. Defendants also moved to disqualify Jennings’s attorney, claiming that he was a necessary fact witness under Indiana Rule of Professional Conduct 3.7. A magistrate judge granted the defendants’ Rule 12(b)(6) motion, stayed the state-law claims, and granted the motion to disqualify Jennings’s attorney. After a joint motion by the parties, the court issued a final judgment dismissing all claims. For the following reasons, we, affirm the dismissal of all claims. Because we have resolved Jennings’s appeal this way, we have no need to reach the attorney-disqualification issue.

I

Briefly, a dashboard bezel is the structure that surrounds the instrument gauges *470 on a car’s dashboard and holds the gauges in place. Jennings’s bezel replaces a car’s original dashboard bezel. More than that, it improves the bezel, because it has room for more automotive gauges than were included in the original design of the car and it still allows the driver to see the entire panel of instruments. In early 2000, Jennings advertised and sold his product on the Internet at www.clubsi.com. He alleges that sometime in January 2000 — about nine months before he applied for his patent — Day, the president and sole owner of Gauge Works, noticed the. bezel for the first time on www.clubsi.com and decided to manufacture and sell a nearly identical one of his own. Day and his company partnered with Auto Meter, a wholesaler of aftermarket auto parts, to distribute an aftermarket dashboard bezel that Jennings claims was simply a replica of his bezel. Auto Meter, Day and Gauge Works first displayed their bezel at a trade show known as the SEMA International Auto Salon, which was held at the end of March 2000 in Pomona, California. Seven months later, on October 25, 2000, Jennings filed an application' for a utility patent on his bezel.

According to Jennings, the defendants then began engaging in a series of fraudulent acts aimed at “corrupting” his patent application and sabotaging his ability to establish himself as the inventor of his aftermarket dashboard bezel. In the course of reviewing Jennings’s patent application, the patent Examiner contacted Auto Meter requesting evidence that the aftermarket dash-board bezel was, on sale or publicly available "before October 25, 2000. Auto Meter referred the Examiner to Day, who told the Examiner on October 21, 2002, that he, not Jennings, was the inventor of the bezel that was the subject of Jennings’s patent application. Because Jennings believes that Day was lying, and the conversation occurred on the telephone, Jennings asserts that the communication was an act of wire fraud. Jennings also claims that Day subsequently contacted Auto Meter, and the two parties conspired to fabricate a product flyer purportedly for the 2000 SEMA show, to demonstrate that the bezel was indeed publicly available before the date on which Jennings filed his application. (The date of first public use matters, as inventors have only one year after that date in which to file a patent application. See 35 U.S.C. § 102(b).) The allegedly fraudulent flyer identified Auto Meter’s bezel and displayed a date of October 24, 2000. On October 31, 2002, Auto Meter faxed the contested document to the Examiner. Jennings asserts that this too was an act of wire fraud. The Examiner relied on the product flyer in concluding that the aftermarket dashboard bezel was “prior art” under 35 U.S.C. § 102(a), and on that ground she rejected Jennings’s patent claims in an Office Action issued on November 13, 2002.

In response to the Office Action, Jennings furnished the Patent Office with evidence that he had invented his bezel before January 2000. Following up on this information, the Examiner again contacted Auto Meter seeking additional evidence that its bezel was publicly availablé before June 1999. Auto Meter in turn contacted Day and Gauge Works and relayed to them its recent conversation with the Examiner. Jennings claims that the group of defendants then agreed to fabricate a second false product flyer, which showed that Day’s bezel was in fact available to the public prior to June 1999, even though they knew that it was not until at least early 2000 that they first began manufacturing the bezel. The second flyer was mailed to the PTO sometime. between April 15, 2003, and August 13, 2003, another purported act of mail fraud. The Ex *471 aminer issued a second non-final Office Action, mailed on August 13, 2003, once again rejecting Jennings’s patent claims, this time relying on the later-filed flyer, which established (fraudulently according to Jennings) that Day’s bezel was available in June 1999.

On September 11, 2003, Jennings’s attorney, Paul Maginot, attempted to convince the examiner in an interview that she had relied on false information in rejecting Jennings’s claims.

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495 F.3d 466, 83 U.S.P.Q. 2d (BNA) 1577, 2007 U.S. App. LEXIS 17618, 2007 WL 2120337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jennings-v-auto-meter-products-inc-ca7-2007.