Kenall Mfg. Co. v. Cooper Lighting, LLC

354 F. Supp. 3d 877
District Court, E.D. Illinois·Decided December 10, 2018·No. 17 C 4575·Published·Cited by 20 cases

Opinion

Gary Feinerman, United States District Judge *881Kenall Manufacturing Company brought this suit against Cooper Lighting, LLC and Eaton Corporation (together, "Cooper"), alleging patent infringement and breach of contract. Doc. 1. The court granted Kenall's unopposed motion under Civil Rule 12(f) to strike Cooper's affirmative defenses, but gave Cooper leave to file amended affirmative defenses. Doc. 67. The court then granted in part Cooper's motion for judgment on the pleadings under Civil Rule 12(c), dismissing Kenall's patent infringement claims except insofar as they pertain to Subject Single Products that Cooper sold after April 1, 2008. Docs. 86-87 (reported at 338 F.Supp.3d 841 (N.D. Ill. 2018) ). At the same time, the court denied Kenall's Rule 12(c) motions for judgment as to liability without prejudice to renewal after Cooper repleaded its affirmative defenses. Ibid.

Cooper filed an amended answer and affirmative defenses, Doc. 93, and Kenall now moves under Rule 12(f) to strike the affirmative defenses, Doc. 95, and under Rule 12(c) for partial judgment as to liability, Docs. 98, 101. The Rule 12(f) motion is granted in part and the Rule 12(c) motions are denied.

Background

In resolving Kenall's Rule 12(c) and Rule 12(f) motions, the court assumes the truth of the well-pleaded factual allegations in Cooper's pleadings, though not their legal conclusions, and draws all reasonable inferences in Cooper's favor. See Adams v. City of Indianapolis , 742 F.3d 720, 727-28 (7th Cir. 2014) ; United States v. 416.81 Acres of Land , 514 F.2d 627, 631 (7th Cir. 1975) (Clark, J.). The court must also consider "documents attached to the [pleadings], documents that are critical to the [pleadings] and referred to in [them], and information that is subject to proper judicial notice," along with additional facts set forth in Cooper's opposition briefs, so long as those facts "are consistent with the pleadings." Phillips v. Prudential Ins. Co. of Am. , 714 F.3d 1017, 1020 (7th Cir. 2013) (internal quotation marks omitted). The facts are set forth as favorably to Cooper as those materials allow. See Meade v. Moraine Valley Cmty. Coll. , 770 F.3d 680, 682 (7th Cir. 2014). In setting forth those facts, the court does not vouch for their accuracy. See Goldberg v. United States , 881 F.3d 529, 531 (7th Cir. 2018).

Cooper is a commercial lighting manufacturer. Doc. 93 at ¶ 20. In February 2005, Cooper launched its Fail-Safe Harmony VR Linear Series lighting fixtures. Id. at ¶ 26. On January 10, 2006, Kenall was issued U.S. Patent No. 6,984,055 ("the '055 patent"), which covers a "modular lighting fixture adaptable for being implemented in various shapes and configurations." Doc. 1-2 at 11; Doc. 93 at ¶ 21. The next week, Kenall informed Cooper of its newly issued patent. Doc. 93 at ¶ 27.

Just over a year later, Kenall filed a patent infringement suit against Cooper. Kenall Mfg. Co. v. Cooper Lighting, Inc. , No. 07 C 603 (N.D. Ill. filed Jan. 31, 2007). The parties resolved that suit pursuant to a Settlement Agreement that incorporated a Confidential License Agreement. Doc. 1-1; Doc. 93 at ¶ 29. The Settlement Agreement provides: "Subject to full compliance by Cooper with this Agreement and with the terms of the Confidential License *882Agreement, Kenall waives ... its claims against Cooper for patent infringement damages with respect to manufacture and sale occurring before the date of this Agreement...." Doc. 1-1 at p. 3, ¶ 3. The Settlement Agreement also provides that "[f]ailure by Cooper to meet any payment or other obligation of the License Agreement shall be deemed a breach of" both agreements. Id. at p. 3, ¶ 2.

The License Agreement granted Cooper "a worldwide, nonexclusive license" under the '055 patent and any patents stemming from it (collectively, the "Subject Patents") and "[s]ubject to the terms, conditions and limitations in th[e] Agreement," to manufacture and sell Cooper's "Linear Continuous" and "Linear Single" products, which the Agreement refers to as the "Subject Continuous Products" and "Subject Single Products," respectively, and collectively as the "Subject Products." Id. at pp. 35-36, § 1. In return, Cooper agreed to place a patent notice on every licensed product starting no later than December 31, 2007; to make a one-time payment of $ 30,000 within seven days of executing the License Agreement; and to make quarterly royalty payments of five percent of net sales of the Subject Continuous Products starting on January 1, 2008 and continuing through the expiration of the last Subject Patent. Id. at pp. 37-39, §§ 5.A, 5.B, 9. Cooper also agreed to redesign its Subject Single Product "to have a one-piece end unit instead of the current two-piece end unit, such re-designed product being referred to ... as the 'Re-Designed Single Product,' " by January 1, 2008. Id. at p. 36, § 2. If Cooper needed additional time for the redesign, it could continue to sell the Subject Single Product until April 1, 2008, subject to a five percent royalty. Id. at pp. 36-37, §§ 2, 5.C.

The License Agreement includes a "No Challenge Clause," which provides:

Cooper does not admit infringement, validity or enforceability of the Subject Patents, and reserves all defenses to any allegation of infringement related thereto; provided, however, that Cooper shall refrain from contesting the validity, enforceability, or infringement of the Subject Patents in any court of law or other forum unless Kenall asserts the Subject Patents against Cooper products other than the Subject Products.

Id. at pp. 41-42, § 15. The Agreement also includes an Illinois choice-of-law provision. Id. at p. 41, § 14.

After Kenall and Cooper executed the Settlement Agreement, Kenall obtained additional patents for modular lighting technology stemming from the '055 patent, including U.S. Patent No. 7,494,241 ("the '241 patent"), issued on February 24, 2009, Doc. 1-4 at 2; Doc.

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Kenall Mfg. Co. v. Cooper Lighting, LLC, 354 F. Supp. 3d 877 (illinoised 2018).

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