Krauser v. Evollution IP Holdings, Inc.

975 F. Supp. 2d 1247, 2013 WL 5313403, 2013 U.S. Dist. LEXIS 134888
CourtDistrict Court, S.D. Florida
DecidedSeptember 20, 2013
DocketCase No. 12-80977-CIV
StatusPublished
Cited by4 cases

This text of 975 F. Supp. 2d 1247 (Krauser v. Evollution IP Holdings, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krauser v. Evollution IP Holdings, Inc., 975 F. Supp. 2d 1247, 2013 WL 5313403, 2013 U.S. Dist. LEXIS 134888 (S.D. Fla. 2013).

Opinion

OPINION AND ORDER

KENNETH A. MARRA, District Judge.

This cause is before the Court upon Defendants’ Joint Motion to Dismiss or Transfer (DE 45). The Court has reviewed the briefs and the record, and is otherwise advised in the premises.

I. Background

This case involves competing claims of ownership and inventorship of a dental implant system. Plaintiff Jack T. Krauser, D.M.D. (“Dr. Krauser”) is a noted periodontist and implant surgeon, a lecturer, author, and educator, and a consultant to several major dental implant companies. He alleges that he “first conceived” the dental implant system in question in 1987. (DE 35: Am. Compl. ¶ ll).1

In 1988, Dr. Krauser retained a medical job and machine shop to produce drawings and manufacture prototypes of the system, including implants, attachments, and related products. (Am. Compl. ¶ 12). To assist the shop in performing its work, Dr. Krauser provided the shop with written [1250]*1250memoranda, initial drawings and sketches, work product, and intellectual property, including copyrighted materials expressing his ideas in connection with the system. (Am. Compl. ¶ 13). The shop was not manufacturing or selling any dental implant systems of its own at that time. (Am Compl. ¶ 12).

Once the manufacturing process began, Dr. Krauser worked with the shop’s principals and employees to develop the system. (Am. Compl. ¶ 14). According to the complaint, “[t]his collaboration included face-to-face communications as part of a broader exchange of documents, sketches, drawings and ongoing discussions pertinent to in vitro and in vivo animal studies and human clinical evaluations.” Id. Dr. Krauser alleges that he contributed to the evolution and improvement of the system with his experience in the implant field, his prior consulting with other dental implant manufacturers, his knowledge and ideas gained through giving and attending lectures in the field, “and his thoughts generating further ideas for such improvements.” (Am. Compl. ¶ 15).

While Dr. Krauser and the shop’s principals and employees developed the system over the next several years, some of the principals and employees applied for and received five patents on different aspects of it. (Am. Compl. ¶ 16).2 Dr. Krauser was not named as an inventor on the applications, and he now seeks to correct the inventorship of four of the five patents.3 He alleges that he has a reputational interest in correcting the omission of his name because of his stature in the dental implant field, and he further claims that he has an economic interest in the patents and, by extension, Article III standing to bring this action. (Am. Compl. ¶¶ 20-21).

This is not the first time Dr. Krauser has initiated an action related to the system. In an earlier case before this Court, Dr. Krauser brought a claim for declaratory relief seeking a declaration that he was both the inventor and owner of the system.4 He also sought attorney’s fees. The inventorship claim was voluntarily dismissed without prejudice, but the Court addressed the remaining ownership claim at summary judgment. The Court concluded that “it is not enough for [Dr. Krauser] to claim ownership of the at-issue intellectual property by stating that the dental implant system incorporates certain features that reflect his ideas. The Court therefore finds, as a matter of law, that [Dr. Krauser] has no ownership rights to the aforementioned intellectual property,” i.e., the dental implant system. (Case No. 10-CV-80454-KAM: DE 169 at 20).

In this case, Dr. Krauser seeks an order directing the USPTO to correct the pat[1251]*1251ents by naming him an inventor pursuant to 35 U.S.C. § 256. That statute provides:

(a) Correction — Whenever through error a person is named in an issued patent as the inventor, or through error an inventor is not named in an issued patent, the Director may, on application of all the parties and assignees, with proof of the facts and such other requirements as may be imposed, issue a certificate correcting such error.
(b) Patent valid if error corrected — The error of omitting inventors or naming persons who are not inventors shall not invalidate the patent in which such error occurred if it can be corrected as provided in this section. The court before which such matter is called in question may order correction of the patent on notice and hearing of all parties concerned and the Director shall issue a certificate accordingly.5

Section 256 “provides a cause of action to interested parties to have the inventor-ship of a patent changed to reflect the true inventors of the subject matter claimed in the patent.” Larson v. Correct Craft, Inc., 569 F.3d 1319, 1324 (Fed.Cir.2009) (citation and internal quotations omitted). The Federal Circuit has interpreted § 256 broadly “as a ‘savings provision’ to prevent patent rights from being extinguished simply because the inventors are not correctly listed.” Id. (quoting Chou v. Univ. of Chi., 254 F.3d 1347, 1358 (Fed.Cir.2001)).

Defendants Evollution IP Holdings, Inc. (“Evollution”) and BioHorizons Implant Systems, Inc. (“BioHorizons”) move to dismiss Dr. Krauser’s inventorship claim on three grounds: first, it is barred by the doctrine of res judicata; second, Dr. Krauser is collaterally estopped from asserting any ownership interest in the patents, and his alleged reputational injury is insufficient to establish standing under Article III; and third, Evollution is not subject to personal jurisdiction in Florida.6 As to this last argument, Defendants, request that the Court transfer this action to the District of Delaware — which presumably has jurisdiction over both defendants — as opposed to dismissing Evollution and subjecting Defendants to two lawsuits in two separate venues.

II. Legal Standards

Defendants move to dismiss Dr. Krauser’s claim as barred by res judicata under Federal Rule of Civil Procedure 12(b)(6). A motion to dismiss based on res judicata is problematic in the sense that res judicata is an affirmative defense that requires the Court to look outside of the pleadings, and Federal Rule of Civil Procedure 12(d) instructs the Court to convert such a motion into one for summary judgment.7 But “[a] district court may take judicial notice of certain facts without converting a motion to dismiss into a motion for summary judgment,” Home v. Potter, 392 Fed.Appx. 800, 802 (11th Cir.2010) (citing Bryant v. Avado Brands, Inc., 187 [1252]*1252F.3d 1271, 1278 (11th Cir.1999)), and the Court accordingly takes judicial notice of the pleadings and documents in Dr. Krauser’s first case before this Court (Case No. 10-CV-80454-KAM) as public records, see Home, 392 Fed.Appx. at 802; see also Lobo v. Celebrity Cruises, Inc.,

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Cite This Page — Counsel Stack

Bluebook (online)
975 F. Supp. 2d 1247, 2013 WL 5313403, 2013 U.S. Dist. LEXIS 134888, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krauser-v-evollution-ip-holdings-inc-flsd-2013.