Mallinckrodt, Inc. v. EZ-EM INC.

670 F. Supp. 2d 349, 93 U.S.P.Q. 2d (BNA) 1592, 2009 U.S. Dist. LEXIS 108696, 2009 WL 4023134
CourtDistrict Court, D. Delaware
DecidedNovember 20, 2009
DocketC.A. 09-228-JJF
StatusPublished
Cited by29 cases

This text of 670 F. Supp. 2d 349 (Mallinckrodt, Inc. v. EZ-EM INC.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mallinckrodt, Inc. v. EZ-EM INC., 670 F. Supp. 2d 349, 93 U.S.P.Q. 2d (BNA) 1592, 2009 U.S. Dist. LEXIS 108696, 2009 WL 4023134 (D. Del. 2009).

Opinion

MEMORANDUM OPINION

FARNAN, District Judge.

Presently before the Court are the following motions filed by Defendants E-ZEM, Inc. and ACIST Medical Systems, Inc.: 1) Motion To Dismiss For Failure To State A Claim Under Federal Rule of Civil Procedure Rule 12(b)(6)(D.I. 7); and 2) Motion To Transfer Action Pursuant To 28 U.S.C. § 1404(a)(D.I. 9). For the reasons discussed, the Motion to Transfer will be denied, and the Motion to Dismiss will be granted in part and denied in part. Specifically, the Motion to Dismiss will be granted as to the indirect infringement claims, but denied as to the direct infringement claim. Plaintiffs will be given leave to amend.

I. BACKGROUND

On April 4, 2009, Plaintiffs Mallinckrodt Inc. (“Mallinckrodt”) and Liebel-Flarsheim Company (“Liebel-Flarsheim”)(eolleetively, “Plaintiffs”) filed suit in this Court against Defendants E-Z-EM, Inc. (“E-Z-EM”) and ACIST Medical Systems, Inc. (“ACIST”)(collectively, “Defendants”). (D.I. 1.) Plaintiffs allege Defendants are infringing U.S. Patent No. 7,512,434 (the “'434 Patent”), which was issued on March 31, 2009. (Id. at 2.) The '434 Patent relates to remotely powered magnetic resonance (“MR”) injectors, and the accused device is E-Z-EM’s EmpowerMR injector system. (D.I. 26, at 6.)

The parties to the present action are also involved in ongoing litigation in the Eastern District of Texas. (Id. at 5.) Plaintiffs filed a patent infringement suit against Defendants on June 20, 2007 in the Eastern District of Texas (the “Texas Action”) alleging infringement of U.S. Patent No. 5,868,710 (the “'710 Patent”). (Id.) The accused devices in the Texas Action are the EmpowerCT and EmpowerCTA injector systems, which are used in connection with computerized tomography (“CT”) procedures (D.I. 10, at 5), as well as the EmpowerMR injector system (D.I. 26, at 20). Discovery has begun in the Texas Action, with a Markman hearing scheduled for January 2010, and a trial scheduled for June 2010. (Id. at 6.) On April 24, 2009, Defendants filed a declaratory judgment action in the Eastern District of Texas seeking declarations of non-infringement and invalidity of the '434 Patent. (D.I. 27, Ex. 1.) On the same day, Defendants concurrently filed the pending Motion to Transfer (D.I. 9) and Motion to Dismiss (D.I. 7) in this Court.

All four parties to the present action are incorporated in Delaware. (D.I. 10, at 2.) E-Z-EM maintained a principal place of business on Long Island, N.Y. until 2008, when ACIST acquired all rights, titles and interests of E-Z-EM, including the property and assets which are the subject of the Texas Action and the present action. *352 (Id. at 3.) ACIST’s principal place of business is Eden Prairie, MN. (Id.) Liebel-Flarsheim is a wholly owned subsidiary of Mallinckrodt, and is the assignee of the '434 Patent. (D.I. 26, at 4.) Liebel-Flarsheim is headquartered in Cincinnati, OH, and Mallinkrodt maintains its principal place of business in Hazelwood, MO. (Id.)

II. Defendants’ Motion To Dismiss For Failure To State A Claim Under Federal Rule Of Civil Procedure Rule 12(b)(6)

A. Parties’ Contentions

By its Motion, Defendants contend this action should be dismissed for failure to state a claim upon which relief can be granted because Plaintiffs have failed to allege essential elements and sufficient facts to meet the minimum pleading requirements for a patent infringement claim. (D.I. 8, at 1.) With regard to the direct patent infringement claim, Defendants contend that Plaintiffs did not, and cannot, allege that Defendants have infringed the patent “by making, selling, and using [the device] embodying the patent.” (Id. at 5.) Specifically, Defendants contend that the EmpowerMR injector, standing alone, is not alleged to infringe the '434 Patent because its claims cover multi-component systems, of which an injector is only one portion. (Id. at 6.) Further, Defendants contend that they do not manufacture or sell this multi-component system. (Id.)

With regard to the inducement of infringement claim, Defendants contend that Plaintiffs have failed to meet minimum pleading requirements by not explicitly alleging the requisite intent, and by failing to allege that Defendants had knowledge of the patent-in-suit. (Id. at 9-10.) With regard to the claim for contributory infringement, Defendants also contend that Plaintiffs’ failure to allege Defendants’ knowledge of the '434 Patent equates to a failure to state a claim upon which relief can be granted. (Id. at 11.)

Plaintiffs first respond that an allegation that Defendants have infringed the patents by “making, selling, and using the device embodying the patent” was made in paragraph 12 of the Complaint. Plaintiffs further contend that, although Defendants only manufacture the EmpowerMR injector (and not all components of the multicomponents systems claimed in the '434 Patent), Defendants assemble and configure the components so as to make an infringing suite. (D.I. 28, at 4-5.) With regard to the inducement of infringement claim, Plaintiffs contend they have stated a claim upon which relief can be granted because intent to induce infringement need not be explicitly pleaded, as that element can be proven through circumstantial evidence. (Id. at 6.) Plaintiffs contend that public records demonstrate Defendants’ awareness of the '434 Patent, and moreover, that Defendants obtained the requisite knowledge of the '434 Patent from the filing of the Complaint. (Id. at 7-8.) For the same reasons, Plaintiffs further contend that the Complaint sufficiently states a claim for contributory infringement. (Id. at 8-9.)

B. Legal Standard

Under Rule 12(b)(6) of the Federal Rules of Civil Procedure, a defendant may move for dismissal based on a plaintiffs “failure to state a claim upon which relief can be granted.” Fed.R.Civ.P. 12(b)(6). When reviewing a motion to dismiss under Rule 12(b)(6), the Court must accept all factual allegations in a complaint as true and view them in the light most favorable to the plaintiff. Christopher v. Harbury, 536 U.S. 403, 406, 122 S.Ct. 2179, 153 L.Ed.2d 413 (2002). A complaint must contain “a short and plain statement of the claim showing that the pleader is entitled *353 to relief.” Fed.R.Civ.P. 8(a). Assuming the factual allegations are true, even if doubtful in fact, the “factual allegations must be enough to raise a right to relief above the speculative level.” Bell Atl. Corp. v. Twombly,

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670 F. Supp. 2d 349, 93 U.S.P.Q. 2d (BNA) 1592, 2009 U.S. Dist. LEXIS 108696, 2009 WL 4023134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mallinckrodt-inc-v-ez-em-inc-ded-2009.