Kustom Signals, Inc. v. Applied Concepts, Inc.

181 F.R.D. 489, 1998 U.S. Dist. LEXIS 19517, 1998 WL 454829
District Court, D. Kansas·Decided July 27, 1998·No. No. Civ.A. 96-2296-EEO·Published·Cited by 2 cases

Opinion

MEMORANDUM AND ORDER

EARL E. O’CONNOR, District Judge.

This matter is before the court on plaintiffs motion for reconsideration of partial summary judgment and for sanctions (Doc. # 75). After careful consideration of the parties’ briefs and submissions, the court is now prepared to rule. For the reasons set forth below, plaintiffs motion for reconsideration will be denied and plaintiffs motion for sanctions will be granted.

Factual Background

The factual background of this matter is set forth in the court’s February 9, 1998 Memorandum and Order and is incorporated by reference. Plaintiff Kustom Signals, Inc. (“Kustom”) and defendant Applied Concepts, Inc. (“ACI”) manufacture and sell traffic radar and other equipment used by law enforcement agencies. Defendant John L. Aker is an independent contractor who has designed traffic radar for ACI since 1978. Kustom alleges that ACI’s Stalker Dual radars infringe Kustom’s patent for such a radar device, specifically, U.S.Patent 5,528,-246 (the “ ’246 patent” or “Kustom radar”). On a very general level, both the Kustom and Stalker Dual radars (1) measure the Doppler shift of vehicles within the radar’s range, (2) convert the Doppler shift of a reflected signal from an analog signal to a digital signal, (3) use a method called a fast fourier transform to analyze the digital data and transform it into the frequency domain, (4) employ various measures to qualify the data so as to eliminate false signals or noise, and (5) display the speed of the target vehicle for the operator.

On February 9, 1998, the court granted defendants’ motion for summary judgment with respect to plaintiffs claim of literal infringement of claims 1, 16, and 20 of the ’246 patent. In particular, the court held that while the ’246 patent discloses a method and apparatus for the search and display of a single fastest or strongest target (an “or-type” radar), the Stalker Dual radars always perform a search for both a fastest and strongest target (an “and-type” radar). See Feb. 9 Order, 995 F.Supp. 1229, 1239. The court denied defendants’ motion for summary judgment with respect to plaintiffs claim of infringement under the doctrine of equivalents of the same claims. Kustom moves for reconsideration of the court’s February 9 Order based on its discovery of certain representations ACI made in a patent application for the Stalker Dual radars which was only recently disclosed to Kustom.

On February 10, 1995, ACI filed five patent applications including Serial No. 386,545, which issued as patent No. 5,525,996 (the “’996 patent”) on June 11, 1996, and Serial No. 386,552, which issued as patent No. 5,570,093 (the “ ’093 patent”) on October 29, 1996. Prior to issuance of the ’093 patent, ACI filed a continuation of the 386,552 application in August 9, 1996, Serial No. 695,333, which issued as the ’724 patent on November 25, 1997. The ’724 patent became the sixth patent to issue. The description in the specification of the ’724 patent is the same as the ’996 patent. Mr. Aker stated in an affidavit that the Stalker Dual radars “are structured and work substantially in accordance with the disclosure of the ’996 patent.”

Kustom’s motion is based on defendants’ failure to reveal the ’724 patent application until February 20, 1998, approximately three months after the patent was issued and eleven days after the court entered its ruling on defendants’ motion for summary judgment. ACI notified Kustom of the ’724 patent through a general industry-wide notification.

The original ’724 patent application disclosed both “and-type” radars and “or-type” radars. The ’724 patent application was amended, however, so that it would read on the actual Stalker Dual radars made by ACI.

[492]*492ACI’s patent counsel explained this amendment in the file wrapper for the ’724 patent:

Claim 40 has also been amended voluntarily to remove an inaccuracy of the claims since this claims covers the commercial embodiment, and the commercial embodiment does not have separate search modes for strongest or fastest and always searches for both the fastest and strongest targets and displays both speeds. The fastest speed display can be turned off, but the computer still finds the fastest target.

In December 1996, ACI answered interrogatory number 8 of Kustom’s first interrogatories as follows:

Int. No. 8: State whether or not ACI has sought patent protection for its traffic radar systems that employ digital signal processing, or any components thereof, other than U.S.Patent No. 5,525,996, and, if it has, identify any patents that have issued and any patent applications that have been filed.
Answer: Objection, this interrogatory is not reasonably calculated to lead to the discovery of admissible evidence. Without waiving and subject to said objection, Defendant states that five patent applications have been submitted and patents issued. Patent numbers are: 5,563,603 5,570,093 5,525,996 5,565,871 5,528,245. (emphasis added).

On July 30, 1997, counsel for Kustom took the deposition of defendant John Aker. The following exchange took place:

Mr. Chase: What patent or patents have grown out of this contract?
Mr. Aker: There are about five that have come. The first was our 996 patent which was issued in 1996.
Mr. Chase: There’s some other patents that have issued also, they were identified in interrogatory answers. I don’t happen to have them with me, but have the other four patents issued or are some of them still pending?
Mr. Aker: Well, there may be one or two pending, but there are-I’m told that there mil be five that will issue altogether.

(Emphasis added).

Analysis

I. Motion For Reconsideration.

A. Legal Standards.

A motion for reconsideration is the opportunity for the court to (1) correct manifest errors of law or fact; (2) review newly discovered evidence; or (3) review a prior decision in light of a recent change in the law. See Cross Timbers Oil Co. v. Rosel Energy, Inc., 168 F.R.D. 649, 650 (D.Kan. 1996) (citing Major v. Benton, 647 F.2d 110, 112 (10th Cir.1981)). Appropriate circumstances for a motion to reconsider are where the court has obviously misapprehended a party’s position on the facts or the law, or the court has mistakenly decided issues outside of those the parties presented for determination. See Anderson v. United Auto Workers, 738 F.Supp. 441, 442 (D.Kan.1990); Refrigeration Sales Co., Inc. v. Mitchell-Jackson, Inc., 605 F.Supp. 6, 7 (N.D.Ill.1983), aff'd, 770 F.2d 98 (7th Cir.1985). A party cannot invoke Rule 59(e) to raise arguments or present evidence that should have been raised in the first instance, or to rehash arguments previously considered and rejected by the court. A party’s failure to present its strongest case in the first instance does not entitle it to a second chance in the form of a motion to reconsider. See Renfro v. City of Emporia, Kan., 732 F.Supp. 1116, 1117 (D.Kan.1990), aff'd, 948 F.2d 1529 (10th Cir. 1991).

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Kustom Signals, Inc. v. Applied Concepts, Inc., 181 F.R.D. 489, 1998 U.S. Dist. LEXIS 19517, 1998 WL 454829 (D. Kan. 1998).

181 F.R.D. 489 (Kustom Signals, Inc. v. Applied Concepts, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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