Maxtech Consumer Products, Ltd. v. Robert Bosch Tool Corp.

255 F. Supp. 3d 833, 2017 U.S. Dist. LEXIS 94865
CourtDistrict Court, N.D. Illinois
DecidedMay 18, 2017
Docket15 C 5951
StatusPublished
Cited by8 cases

This text of 255 F. Supp. 3d 833 (Maxtech Consumer Products, Ltd. v. Robert Bosch Tool Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maxtech Consumer Products, Ltd. v. Robert Bosch Tool Corp., 255 F. Supp. 3d 833, 2017 U.S. Dist. LEXIS 94865 (N.D. Ill. 2017).

Opinion

Memorandum Opinion and. Order

Judge Gary Feinerman

Maxtech Consumer Products, Ltd., a manufacturer of power tools and related accessories, sued Robert Bosch GmbH (“Bosch GmbH”) and Robert Bosch Tool Corp. (“Bosch Tool”) (together, “Bosch”) for trade secret misappropriation, breach of contract, and fraud, and also for an order amending a Bosch GmbH patent to include a Maxtech engineer as a co-inventor. Doc. 50. A jury trial is set for June 19, 2017. Doc. 209. Bosch has moved for summary judgment on all claims. Doc. 117, The motion is granted in part and denied in part.

Background

The following facts are set forth as favorably to Maxtech as the record and Lo[837]*837cal Rule 56.1 permit. See Hanners v. Trent, 674 F.3d 683, 691 (7th Cir. 2012). On summary judgment, the court must assume the truth of those facts, but does not vouch for them. See Arroyo v. Volvo Grp. N. Am., LLC, 805 F.3d 278, 281 (7th Cir. 2015).

Bosch objects to several paragraphs of Maxtech’s Local Rule 56.1(b)(3)(C) statement of additional facts on the ground that they are insufficiently concise. E.g., Doc. 187 at ¶ 6. None of those objections has merit. Although some paragraphs could have been shorter, that is primarily because Maxteeh reproduced relevant deposition testimony in the body of the statement itself, not because it was combining several disparate facts into a single paragraph. And where Maxteeh did combine multiple facts in a single paragraph, it did not do so in such a manner as would frustrate the “purpose of Rule 56.1,” which “is to have the litigants present to the district court a clear, concise list of material facts that are central to the summary judgment determination.” Curtis v. Costco Wholesale Corp., 807 F.3d 215, 219 (7th Cir. 2015). Accordingly, Bosch’s request to disregard certain paragraphs of Maxtech’s Local Rule 56.1(b)(3)(C) statement is denied.

Bosch GmbH is an international business conglomerate based in Germany. Doc. 173 at ¶¶ 2, 14. One of its businesses is the sale of power tools and related products, which it carries on in North America through Bosch Tool, an Illinois-based affiliate. Id. at ¶¶ 1-2. Maxteeh is a Canadian company that sells power tools and related products in North America. Id. at ¶¶ 3-4. Maxteeh has sold products to Bosch and to retailers like Home Depot and Lowe’s. Id. at ¶ 3.

In 2007, Maxteeh and Bosch Tool began exploring potential business relationships. Id. at ¶¶ 5-7. As part of those efforts, the companies signed a Non-Disclosure Agreement (“NDA”) in June 2007. Id. at ¶5. In late- 2008, after Maxteeh lost a crucial contract with Home Depot, it hired Drake Pelham as its new Vice President of Sales and tasked him with working on the company’s efforts to collaborate with Bosch Tool. Id. at ¶¶ 8-9. The parties executed a second, superseding NDA in early 2009. Id. at ¶ 10.

This lawsuit concerns three different product collaborations that Maxteeh and Bosch explored between 2007 and 2012, involving spade bits, inclinometers, and shell packaging.

A. Spade Bits

A spade bit is a special type of drill bit that creates a' hole with a wider diameter than a conventional drill bit; Id. at ¶ 18. In January 2007, Maxteeh engineer Satnam Singh designed a new spade bit with a threaded, conical tip and' reamers on its sides, which he believed could outperform the then-industry-leading spade bit. 'Doc. 187 at ¶¶ 2-6. Singh’s design allowed the spade bit to work faster than existing technology without sacrificing steadiness of the drill or cleanliness of the bore hole. Id. at ¶ 11. His conclusions were memorialized in a drawing supplemented with handwritten notes. Doc. 173-3; Doc. 187 at ¶ 5.

The drawing is undated, but Singh remembers creating it in January 2007, during or immediately after a trip to China, where testing on the new design occurred. Doc. 187 at ¶¶ 2, 5. Maxtech’s CEO, Kai-lash Vasudeva, testified that Singh gave him the drawing in February 2007, at which point Maxteeh commissioned a physical prototype. Id. at ¶6. Singh had no further involvement in the project after giving the drawing to Vasudeva. Doc. 173 at ¶ 131.

Meanwhile, Bosch Tool had begun an effort to develop a “next generation spade bit” of its own, which eventually came to [838]*838be known as the “Daredevil” spade bit. Id. at ¶ 19; Doc. 187 at ¶ 12. It is undisputed that the Daredevil project was underway at least as early as 2005. Doc. 173 at ¶¶ 40-41. It is also undisputed that the final version of the Daredevil included both a “full-cone threaded tip” and a reamer. Id. at ¶ 19; Doc. 187 at ¶ 19. But the parties have different accounts of how the Daredevil project got from Point A to Point B, and they disagree in particular over the point at which the full-cone threaded tip feature came into the picture.

They can agree on at least this much: the two companies arranged a meeting on June 20, 2007 at Bosch Tool’s offices in Illinois, where Maxtech made a presentation regarding spade bits. Doc. 187 at ¶ 7. The day before the meeting, the parties executed the 2007 NDA, which protected Maxtech’s confidential information — including its “trade secrets, design rights, patent or invention rights, and/or copyrights” — against misappropriation by Bosch. Id. at ¶ 8. The 2007 NDA, however, exempted Bosch from liability for using ideas it developed independently. Doc. 173 at If 107. The parties dispute how far along Bosch was in its development of the Daredevil spade bit prior to the June 2007 meeting.

Bosch asserts that it had, well in advance of that meeting, already come up with the ideas that Maxtech alleges were its trade secrets. Doc. 153 at ¶ 39. It points, for example, to documents dated in 2005 that describe a threaded tip, such as an October 2005 “Invention Record” for a “Spade Bit with Cupped Cutting Faces” that “may be threaded or unthreaded” and “may or may not have cutting spurs at the ends” (the latter being a description that roughly fits reamers). Id. at ¶¶ 41-42; Doc. 156-5 at 4. Maxtech counters that there is a crucial difference between a “flat” threaded tip and a threaded conical (or “full cone”) tip, the utility of which. Maxtech claims was its insight. Doc. 173 at ¶¶-40, 42. Bosch does not disagree, so the heart of the dispute is over when Bosch’s threaded tips became conical.

Bosch relies on the testimony of Javier Ibarra, an engineer involved with the Daredevil project, who testified that he and his colleagues had the idea to thread a conical tip by 2005 and had made a prototype with all the features the Daredevil bit would ultimately contain — including a “full cone threaded tip” — by February 2007. Doc. 153 at ¶¶ 43-44; Doc. 154-15 at 5-6, 38-40. Maxtech counters with the testimony of Ken Osberg, a Bosch Tool product manager who was Project Leader for the Daredevil project. Doc. 187 at ¶ 15-16. Osberg testified that putting the full-cone threaded tip on the Daredevil was his idea (not, apparently, Ibarra’s), although he could not recall when that idea arose. Ibid. Also relevant is a Bosch document dated June 18, 2007 — two days before the meeting with Maxtech — which reflects the results of earlier “predevelopment” testing for the Daredevil project. Doe. 173 at ¶47; Doc. 156-2 at 2. That document has a section entitled, “Next Steps — Final Daredevil Protos.” Doc. 156-2 at 6.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
255 F. Supp. 3d 833, 2017 U.S. Dist. LEXIS 94865, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maxtech-consumer-products-ltd-v-robert-bosch-tool-corp-ilnd-2017.