Meridian Mfg., Inc. v. C&B Mfg., Inc.
This text of 340 F. Supp. 3d 808 (Meridian Mfg., Inc. v. C&B Mfg., Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
Leonard T. Strand, Chief Judge
I. INTRODUCTION
This patent case is before me on: (1) a motion (Doc. No. 90) for summary judgment on invalidity filed by defendant C & B Manufacturing, Inc. (HitchDoc), (2) a motion (Doc. No. 92) for summary judgment as to HitchDoc's affirmative defenses, filed by plaintiff Meridian Manufacturing Inc. (Meridian) and (3) a motion (Doc. No. 88) for summary judgment to limit damages filed by HitchDoc. Meridian filed resistances (Doc. Nos. 101, 107) to both of HitchDoc's motions and HitchDoc filed replies (Doc. Nos. 108, 109). HitchDoc filed a resistance (Doc. No. 99) to Meridian's motion for summary judgment but Meridian did not file a reply.1
Meridian holds United States Patent No. 6,964,551 B1 ('551 Patent), which involves component claims for an agricultural trailer. In its complaint (Doc. No. 2), Meridian alleges that HitchDoc is a competitor that makes agricultural equipment, including trailers that infringe on the '551 Patent. On June 9, 2017, after conducting a Markman hearing, I filed an order (Doc. No. 52) in which I construed certain claims contained in the '551 patent (the Markman order). The parties then filed motions (Doc. Nos. 55, 56) for summary judgment on infringement. On October 27, 2017, I entered an order (Doc. No. 75) granting Meridian's motion for summary judgment and finding, as a matter of law, that HitchDoc's trailer infringes on claims 1, 2, 3, 9, 10 and 11 of the '551 Patent. The parties then filed the present motions addressing invalidity and damages.
*823Trial is scheduled to begin on November 5, 2018. The motions are fully briefed and ready for decision. I find that oral argument is not necessary.
II. RELEVANT FACTS
The following facts are undisputed, except where noted otherwise:
A. The '551 Patent
The '551 Patent, entitled "Trailer for Transporting Bulk Seed Boxes," is an invention designed to help farmers transport large seed bags or boxes to planters in the fields. The following embodiment is depicted in Figure 1:
Meridian filed its complaint of patent infringement on November 23, 2015. Of the 19 claims contained in the '551 patent, Meridian alleged that HitchDoc's product, the Travis Seed Cart, infringes claims 1, 2, 3, 9, 10 and 11. These claims are:
1. An improved trailer for transporting a bulk seed box, the box having first and second sidewalls, a bottom, a top, and a flange extending along the sidewalls adjacent the bottom of the box, the trailer comprising:
a wheeled bed for supporting a bulk seed box, the bed having a perimeter edge;
a hopper extending below the bed for receiving seed from the bulk seed box;
a conveyor operatively connected to the hopper for unloading seed from the hopper; and
the bed having guide plates inclining upwardly and outwardly from the perimeter edge of the bed to facilitate centering of the box on the bed.
2. The improved trailer of claim 1 wherein the bed has four corners and the guide plates are located at the corners of the bed.
3. The improved trailer of claim 1 further comprising lock bars on the bed to overlappingly engage the flange of the seed box to secure the seed box to the bed.
9. The improved trailer of claim 1 wherein the conveyor is an auger including a first inner section and a second outer section pivotally attached to the first section for movement between transport and discharge positions, and including a gas cylinder to facilitate movement of the second section between the transport and discharge positions.
10. The improved trailer of claim 1 wherein each guide plate extends outwardly at an obtuse angle from the bed.
*82411. The improved trailer of claim 1 wherein the guide plates define an enlarged box entrance sloping downwardly and inwardly toward the bed so that the box will automatically center on the bed when loaded onto the bed.
Doc. No. 31 at 7-8.
Claim 1 is the only independent claim at issue. The bulk of the parties' arguments focus on the guide plates "inclining upwardly and outwardly from the perimeter edge of the bed." An example of a Meridian guide plate is circled in Figure 2:
B. History of the '551 Patent
Garry Friesen, the inventor of the '551 Patent, has no engineering degree and had never observed a seed tender before he worked on the project that resulted in the '551 Patent. He believed there was an issue with loading and positioning seed boxes on a seed cart. Friesen initially used perpendicular guide plates and straps to secure the boxes. To improve the design, he decided to provide a bigger target for the forklift operator to hit and allow the seed box to slide into position. He then switched to plates that extend upwardly and outwardly from the bed of the cart and exchanged the straps for lock bars.
Friesen filed his application for the '551 Patent on December 12, 2001. At that time, Claim 1 described the guide plates as "extending upwardly and outwardly to facilitate centering the box on the bed." Doc. No. 107-1 at 4. The patent examiner rejected the application because of Patent No. 6,092,974 (the Roth Patent). The Roth Patent had guide plates around the perimeter extending straight upwardly, as depicted in Figure 3.
*825To overcome the Roth patent, Friesen amended Claim 1 to state, in relevant part, that the guide plates incline upwardly and outwardly from the bed. The patent examiner rejected this second attempt because of the Roth patent and Patent No. 1,675,701 (the Fitch patent). The Fitch Patent is depicted in Figure 4:
While difficult to see in this depiction, the interior surfaces of the plates incline upwardly and outwardly from the bed. The Fitch patent is not directed toward an agriculture-specific device, but to trucks used to transport general containers.
Friesen then amended Claim 1 to its present form, stating the guide plates inclined "upwardly and outwardly from the perimeter edge of the bed. " (emphasis added) The patent examiner rejected Friesen's application for a third time. On appeal, however, the Board of Patent Appeals and Interferences (the Board) overturned the examiner's rejection, noting that the Fitch brackets had inclined walls that were within the perimeter edge of the bed. The '551 Patent issued on November 15, 2005. Meridian is the current owner.
C. Infringement
In late 2001 or early 2002, before the '551 Patent issued, Friesen began selling his seed tenders with the patented features and showing them at farm shows under the "Seed Titan" name. Wyman Travis, creator of the Travis Seed Cart now sold by HitchDoc, often attended the same farm shows. He designed the Travis Seed Cart in late 2004 or early 2005. The guide plates of the Travis Seed Cart are depicted in Figure 5.
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Leonard T. Strand, Chief Judge
I. INTRODUCTION
This patent case is before me on: (1) a motion (Doc. No. 90) for summary judgment on invalidity filed by defendant C & B Manufacturing, Inc. (HitchDoc), (2) a motion (Doc. No. 92) for summary judgment as to HitchDoc's affirmative defenses, filed by plaintiff Meridian Manufacturing Inc. (Meridian) and (3) a motion (Doc. No. 88) for summary judgment to limit damages filed by HitchDoc. Meridian filed resistances (Doc. Nos. 101, 107) to both of HitchDoc's motions and HitchDoc filed replies (Doc. Nos. 108, 109). HitchDoc filed a resistance (Doc. No. 99) to Meridian's motion for summary judgment but Meridian did not file a reply.1
Meridian holds United States Patent No. 6,964,551 B1 ('551 Patent), which involves component claims for an agricultural trailer. In its complaint (Doc. No. 2), Meridian alleges that HitchDoc is a competitor that makes agricultural equipment, including trailers that infringe on the '551 Patent. On June 9, 2017, after conducting a Markman hearing, I filed an order (Doc. No. 52) in which I construed certain claims contained in the '551 patent (the Markman order). The parties then filed motions (Doc. Nos. 55, 56) for summary judgment on infringement. On October 27, 2017, I entered an order (Doc. No. 75) granting Meridian's motion for summary judgment and finding, as a matter of law, that HitchDoc's trailer infringes on claims 1, 2, 3, 9, 10 and 11 of the '551 Patent. The parties then filed the present motions addressing invalidity and damages.
*823Trial is scheduled to begin on November 5, 2018. The motions are fully briefed and ready for decision. I find that oral argument is not necessary.
II. RELEVANT FACTS
The following facts are undisputed, except where noted otherwise:
A. The '551 Patent
The '551 Patent, entitled "Trailer for Transporting Bulk Seed Boxes," is an invention designed to help farmers transport large seed bags or boxes to planters in the fields. The following embodiment is depicted in Figure 1:
Meridian filed its complaint of patent infringement on November 23, 2015. Of the 19 claims contained in the '551 patent, Meridian alleged that HitchDoc's product, the Travis Seed Cart, infringes claims 1, 2, 3, 9, 10 and 11. These claims are:
1. An improved trailer for transporting a bulk seed box, the box having first and second sidewalls, a bottom, a top, and a flange extending along the sidewalls adjacent the bottom of the box, the trailer comprising:
a wheeled bed for supporting a bulk seed box, the bed having a perimeter edge;
a hopper extending below the bed for receiving seed from the bulk seed box;
a conveyor operatively connected to the hopper for unloading seed from the hopper; and
the bed having guide plates inclining upwardly and outwardly from the perimeter edge of the bed to facilitate centering of the box on the bed.
2. The improved trailer of claim 1 wherein the bed has four corners and the guide plates are located at the corners of the bed.
3. The improved trailer of claim 1 further comprising lock bars on the bed to overlappingly engage the flange of the seed box to secure the seed box to the bed.
9. The improved trailer of claim 1 wherein the conveyor is an auger including a first inner section and a second outer section pivotally attached to the first section for movement between transport and discharge positions, and including a gas cylinder to facilitate movement of the second section between the transport and discharge positions.
10. The improved trailer of claim 1 wherein each guide plate extends outwardly at an obtuse angle from the bed.
*82411. The improved trailer of claim 1 wherein the guide plates define an enlarged box entrance sloping downwardly and inwardly toward the bed so that the box will automatically center on the bed when loaded onto the bed.
Doc. No. 31 at 7-8.
Claim 1 is the only independent claim at issue. The bulk of the parties' arguments focus on the guide plates "inclining upwardly and outwardly from the perimeter edge of the bed." An example of a Meridian guide plate is circled in Figure 2:
B. History of the '551 Patent
Garry Friesen, the inventor of the '551 Patent, has no engineering degree and had never observed a seed tender before he worked on the project that resulted in the '551 Patent. He believed there was an issue with loading and positioning seed boxes on a seed cart. Friesen initially used perpendicular guide plates and straps to secure the boxes. To improve the design, he decided to provide a bigger target for the forklift operator to hit and allow the seed box to slide into position. He then switched to plates that extend upwardly and outwardly from the bed of the cart and exchanged the straps for lock bars.
Friesen filed his application for the '551 Patent on December 12, 2001. At that time, Claim 1 described the guide plates as "extending upwardly and outwardly to facilitate centering the box on the bed." Doc. No. 107-1 at 4. The patent examiner rejected the application because of Patent No. 6,092,974 (the Roth Patent). The Roth Patent had guide plates around the perimeter extending straight upwardly, as depicted in Figure 3.
*825To overcome the Roth patent, Friesen amended Claim 1 to state, in relevant part, that the guide plates incline upwardly and outwardly from the bed. The patent examiner rejected this second attempt because of the Roth patent and Patent No. 1,675,701 (the Fitch patent). The Fitch Patent is depicted in Figure 4:
While difficult to see in this depiction, the interior surfaces of the plates incline upwardly and outwardly from the bed. The Fitch patent is not directed toward an agriculture-specific device, but to trucks used to transport general containers.
Friesen then amended Claim 1 to its present form, stating the guide plates inclined "upwardly and outwardly from the perimeter edge of the bed. " (emphasis added) The patent examiner rejected Friesen's application for a third time. On appeal, however, the Board of Patent Appeals and Interferences (the Board) overturned the examiner's rejection, noting that the Fitch brackets had inclined walls that were within the perimeter edge of the bed. The '551 Patent issued on November 15, 2005. Meridian is the current owner.
C. Infringement
In late 2001 or early 2002, before the '551 Patent issued, Friesen began selling his seed tenders with the patented features and showing them at farm shows under the "Seed Titan" name. Wyman Travis, creator of the Travis Seed Cart now sold by HitchDoc, often attended the same farm shows. He designed the Travis Seed Cart in late 2004 or early 2005. The guide plates of the Travis Seed Cart are depicted in Figure 5.
*826HitchDoc acquired the right to sell the Travis Seed Cart in 2009. HitchDoc has known about the '551 Patent since at least July 1, 2011, when it submitted the '551 Patent to the United States Patent and Trademark Office (USPTO) as part of an information disclosure statement.
Between November 20, 2005, and September 24, 2008, Meridian purchased 1,000 patent decals for its tenders.2 Between 2005 and 2009, Meridian sold 2,283 box seed tenders. The parties dispute how many of the tenders sold had patent decals. On September 17, 2015, Meridian gave HitchDoc actual notice of infringement by sending HitchDoc a cease and desist letter.3 HitchDoc continued selling the Travis Seed Cart after receiving the cease and desist letter and did not seek counsel's opinion regarding infringement of the '551 Patent before Meridian filed its complaint. At no time has Meridian affirmatively consented to HitchDoc's infringement.
Meridian filed its complaint for patent infringement on November 23, 2015. At the Markman stage, I found that "perimeter edge of the bed" meant the planar boundary around the bed, rather than the physical point where the side and top surfaces of the bed intersect. With that understanding, I found that HitchDoc's seed tenders literally infringed on Claim 1 (and by extension claims 2, 9, 10 and 11) of the '551 Patent. Doc. No. 75 at 16. I also found that Claim 3, which describes lock bars that "overlappingly engage the flange of the seed box," was infringed. Id. at 18-19. After my ruling that the Travis Seed Cart infringed the '551 patent, HitchDoc started a redesign of its seed cart.4
Additional facts will be discussed below as necessary.
III. SUMMARY JUDGMENT STANDARDS
Any party may move for summary judgment regarding all or any part *827of the claims asserted in a case. Fed. R. Civ. P. 56(a). Summary judgment is appropriate when "the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, show that there is no genuine issue of material fact and that the moving party is entitled to a judgment as a matter of law." Celotex Corp. v. Catrett ,
A material fact is one that " 'might affect the outcome of the suit under the governing law.' " Anderson v. Liberty Lobby, Inc. ,
An issue of material fact is genuine if it has a real basis in the record, Hartnagel v. Norman ,
As such, a genuine issue of material fact requires "sufficient evidence supporting the claimed factual dispute" so as to "require a jury or judge to resolve the parties' differing versions of the truth at trial." Anderson , 477 U.S. at 248-49,
In determining if a genuine issue of material fact is present, I must view the evidence in the light most favorable to the nonmoving party. Matsushita ,
On cross motions for summary judgment, the "court must rule on each party's motion on an individual and separate basis, determining, for each side, whether a judgment may be entered in *828accordance with the Rule 56 standard." 10A Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure § 2720 (3d ed. 1998). Because the parties seek summary judgment on the same issue, I will consider all the parties' arguments, keeping in mind the separate inferences that are to be drawn from each motion. See Wright v. Keokuk Cnty. Health Ctr. ,
IV. DISCUSSION
A. Invalidity Under Section 103
HitchDoc argues that all infringed claims (1, 2, 3, 9, 10 and 11) are invalid as obvious pursuant to
A patent for a claimed invention may not be obtained ... if the differences between the claimed invention and the prior art are such that the claimed invention as a whole would have been obvious before the effective filing date of the claimed invention to a person having ordinary skill in the art to which the claimed invention pertains.
"Once issued, a patent is presumed valid ... and the challenging party has the heavy burden of proving invalidity by substantial evidence." Saturn Mfg., Inc. v. Williams Patent Crusher & Pulverizer Co. ,
Whether an invention is obvious under § 103 is a legal conclusion based on the underlying facts of record. Velander v. Garner ,
Before I can address the parties' arguments on invalidity, I must determine the applicable record. Two of the four contested expert witnesses, James Heise and John Hamilton, have provided opinions regarding certain elements of the obviousness analysis. Meridian filed a motion *829(Doc. No. 118) to exclude Heise, to which HitchDoc resisted (Doc. No. 127). Meridian filed a reply (Doc. No. 132). HitchDoc filed a motion (Doc. No. 111) to exclude Hamilton, which Meridian resisted (Doc. No. 123). HitchDoc filed a reply (Doc. No. 134).
1. The Daubert Analysis
Federal Rule of Evidence 702 governs the admission of expert testimony. The rule states that a qualified expert may testify "in the form of an opinion or otherwise" if:
(a) the expert's scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
(b) the testimony is based on sufficient facts or data;
(c) the testimony is the product of reliable principles and methods; and
(d) the expert has reliably applied the principles and methods to the facts of the case
Fed. R. Evid. 702. To be admissible, expert testimony must be both relevant and reliable. Weisgram v. Marley Co. ,
Evidence is reliable if it is useful to the finder of fact in deciding an ultimate issue of fact, the expert is qualified and the evidence used by the expert is reliable. Peters v. Woodbury Cty., Iowa ,
Federal Rule of Evidence 704 provides that expert evidence is admissible even if it embraces an ultimate issue in the case. Fed. R. Evid. 704(a). Thus, to the extent an expert lays proper foundation by demonstrating an adequate basis for an opinion, the opinion may be admissible. Langenbau ,
Under Daubert v. Merrell Dow Pharm., Inc. ,
The objective of the Daubert inquiry "is to make certain that an expert, whether basing testimony upon professional studies or personal experience, employs in the courtroom the same level of intellectual rigor that characterizes the practice of an expert in the relevant field." Kumho Tire Co., Ltd. v. Carmichael ,526 U.S. 137 , 152,119 S.Ct. 1167 ,143 L.Ed.2d 238 (1999). [T]his is a flexible, case-specific inquiry. "The trial court ha[s] to decide whether this particular expert had sufficient specialized knowledge to assist the jurors in deciding the particular issues in the case."Id. at 156 ,119 S.Ct. 1167 (quotation omitted); see Fed. R. Evid. 702 and Advisory Committee Notes.
American Auto. Ins. Co. v. Omega Flex, Inc. ,
2. James Heise
a. Opinion
James Heise's testimony consists of an expert report (Doc. No. 91-21) as well as deposition testimony (Doc. No. 117-14). A summary of his opinions are as follows:
• All the claims of the '551 Patent are invalid as obvious under prior art. Doc. No. 91-21 at 8, 38.
• He declines to provide an opinion on any "secondary considerations" because Meridian did not provide sufficient evidence of those considerations.Id.
• A person of ordinary skill in the art is "a person who has designed seed carts or similar devices ... as would a mechanical designer or engineer with 2 to 4 years of formal technical/engineering education or 5 to 7 years of on-the-job training in product design and/or a person with equivalent training and experience in the field of invention." Id. at 9.
• Prior art does include products other than "mobile seed carts for transporting bulk seed containers," because using guide plates is a common practice in many industrial and agricultural settings. Id. at 11.
• The problem the '551 Patent attempts to solve is placing a box or container safely, efficiently and accurately onto an elevated platform, or a "defined zone." Id. at 11-13.
• A detailed breakdown of the differences and disclosures between the prior art and each claim of the '551 Patent. Id. at 16-38.
Heise has 38 years of experience in mechanical engineering, including industrial design and manufacturing. Doc. No. 91-21 at 4. He is the named inventor of subject matter covered by six patents. Id. He has an associate degree in mechanical engineering and a Bachelor of Science and Master of Science in mechanical engineering. Id. However, he is not a licensed Professional Engineer. Doc. No. 117-14 at 2. There is no evidence that he has specific experience with seed tenders or agricultural machinery.
Meridian argues that Heise's testimony should be excluded because he is not qualified to testify on the validity of a patent. Doc. No. 118-1 at 9. Meridian also contends that his opinion is not based on sufficient facts or data, but rather on flawed methodology and misunderstanding. Id. Meridian faults Heise for (1) applying *831the wrong standard of "person of ordinary skill in the art," (2) ignoring secondary indicia of nonobviousness, (3) not applying the "presumed validity" standard, (4) not using a "clear and convincing" standard of proof, (5) supplying a legal conclusion, (6) using an improper obviousness rationale, (7) employing the wrong scope of prior art and (8) mischaracterizing prior art. Id. at 11-12, 17, 19.
b. Qualification
Meridian argues that Heise is not qualified to offer an opinion on obviousness because he has no legal training. Id. at 10. However, while the question of obviousness is a question of law, it is perfectly appropriate for a non-legal expert in the field to use his expertise to explain why earlier technology makes the claims of a patent obvious. The proper question is whether the expert is qualified in the area of the pertinent art, not whether the witness is a legal expert. See Sundance, Inc. v. DeMonte Fabricating Ltd. ,
A witness may qualify as an expert in the relevant field if they, at the least, have ordinary skill in the pertinent art. Sundance ,
c. Person of ordinary skill
Meridian argues that Heise (1) used the wrong standard for a person of ordinary skill in the art and (2) the standard he used was not based on sufficient facts and data. Doc. No. 118-1 at 11. Meridian claims he used the wrong standard because it includes unrelated prior art and does not include the inventor of the patent. Id. at 11.
Whether the inventor meets the standard for person of ordinary skill is irrelevant because the standard is based on a hypothetical person. Life Techs., Inc. v. Clontech Labs., Inc. ,
d. Secondary considerations of nonobviousness
The court or finder of fact must examine the secondary considerations, if present, before coming to a conclusion about obviousness. See Transocean Offshore Deepwater Drilling, Inc. v. Maersk Drilling USA, Inc. ,
In his report, Heise stated that he understood secondary considerations may also bear on obviousness and that Meridian has the burden of production on those considerations. Doc. No. 91-21 at 8. He stated that Meridian's documents available at the time he made his report were not clear as to what those considerations were, so he was unable to respond to any secondary considerations.
e. Legal standards
"Once issued, a patent is presumed valid." Saturn Mfg. ,
I find that even if Heise did not consider the presumption of validity or the clear and convincing standard, these omissions would not render his opinions inadmissible. In any event, he testified that he had a general understanding of the burden of proof, but focused on prior art and standard knowledge of engineering design. Doc. No. 117-14 at 6. He stated that he "hold[s] no opinion as to [the patent's] validation at this time" Id. at 13. His opinion is not inadmissible on this issue.
*833f. Legal opinion
An expert may testify as to a fact-based opinion but cannot state legal conclusions. Transamerica Life Ins. Co. v. Lincoln Nat. Life Ins. Co. , No. C 06-110-MWB,
Heise concluded that the '551 Patent is obvious over prior art. Doc. No. 91-21 at 8. He stated he was advised on the legal definition of obviousness but does not attempt to explain that definition.
g. Impermissible obviousness rationale
Meridian argues that Heise's obviousness rationale is improper because it (1) relies on impermissible hindsight and (2) does not state a reason or motivation a person of ordinary skill in the art would have to combine features of other patents. Doc. No. 118-1 at 19; Doc. No. 132 at 7. Evidence as to the subjective motivations of inventors is not material to obviousness because the analysis is based on a hypothetical person. Life Techs. ,
While not an enumerated element, a "motivation to combine" can be an important piece of the obviousness analysis. See KSR ,
Heise states that he reviewed Friesen's testimony and that this testimony provides evidence of design need and design expedience that was lacking when the Board approved the '551 Patent. Doc. No. 91-21 at 20. He explains that Friesen's testimony confirms that it was "natural for a person of skill in the art" to combine elements from prior patents, modify them and create the '551 Patent. Id. at 21. I find that reliance on Friesen's testimony is hindsight, *834and so that portion of the report is inadmissible. However, that is not the only evidence Heise relied upon to conclude the patent is obvious. At the beginning of his report, Heise discussed generally the geometric considerations and principles of guiding objects onto surfaces that go towards the "common sense" category of motive to combine. Id. at 12-15. While not determinative, and certainly subject to cross-examination and rebuttal, this is sufficient to permit Heise's obviousness opinion to be admitted into evidence.
h. Scope of prior art
Courts use two tests to define the scope of analogous prior art: "(1) whether the art is from the same field of endeavor, regardless of the problem addressed and, (2) if the reference is not within the field of the inventor's endeavor, whether the reference still is reasonably pertinent to the particular problem with which the inventor is involved. Smartdoor Holdings, Inc. v. Edmit Indus., Inc. ,
Heise explained how he determined the scope of prior art, which he defines as "the art of bulk material handling." Doc. No. 117-14 at 7-8. In his report he states:
I have been told to assume that, from a legal standpoint, the scope and content of the prior art includes all available prior art form the same filed as the claimed invention, or, if not from the same field, art reasonably pertinent to the problem the inventor was attempting to solve.
Doc. No. 91-21 at 9. This is the proper legal standard for scope of the prior art. Meridian argues that Heise did not consider the '551 Patent as a whole, but considered it on a "feature-by-feature" basis. Doc. No. 118-1 at 18. Heise subdivided his report by each claim in the '551 Patent. See Doc. No. 91-21 at 16, 34, 35, 38. After reviewing his report, I find that Heise ultimately considered each claim as a whole. His opinion is not inadmissible on this basis.
i. Incorrect construction of claims
Meridian contends that Heise makes two factual mistakes fatal to the admissibility of his opinion when identifying components of prior art. Doc. No. 118-1 at 18. First, Meridian argues that in Patent No. 4,163,425 (Bedard), Heise improperly identified the baseplate (claim 10) as the bed, when the bed is really claim 2.
Second, Meridian argues that Heise drew an uneven line on the Roberts patent to improperly show that the guide plates extend past the planar boundary of the bed.6 Doc. No. 118-1 at 18. Meridian's argument *835is best depicted in Figure G at Doc. No. 107-3 at 56. HitchDoc provides a response drawing in Doc. No. 127 at 18. Heise specifically addresses the difference between the two parties' construction in his report. Doc. No. 91-21 at 24. Both drawings are so specific that I find this issue is best resolved through cross-examination, as it goes more toward the weight of Heise's opinion than to admissibility.
3. John Hamilton
Hamilton has provided an opinion on the existence of acceptable, noninfringing alternatives and on secondary characteristics of nonobviousness. His opinions are summarized as follows:
• Other seed tender manufacturers "produce bulk seed tenders which are non-acceptable alternatives" because they do not provide for the ability to use seed boxes. Doc. No. 111-3 at 17-18.
• Some products are non-acceptable alternatives because the caddy does not provide the "filling/convey aspect of the '551 Patent." Id.
• Some products are unacceptable alternatives because "they do not provide the self-aligning function of the '551 Patent." Id.
• There is evidence of long felt need, failure of others, teaching away, copying by competitors, praise by others and commercial success in the documents and testimony that was available when Heise made his report. Doc. No. 11-4 at 36-39.
Hamilton is a licensed Professional Engineer, a mechanical engineer instructor and has worked as a consulting engineer. Doc. No. 111-3 at 27. He has technical design experience and extensive teaching experience. Id. at 27-28.
a. Acceptable noninfringing alternatives
HitchDoc argues Hamilton's opinions on acceptable alternatives are inadmissible because (1) he is not qualified as a marketing expert, (2) his opinions are based on an incorrect view of the law and (3) his opinion is contrary to other facts in the record. Doc. No. 111-1 at 8-11.
The existence of acceptable, noninfringing alternatives to the patent affects whether damages are available. See Standard Havens Prods., Inc. v. Gencor Indus., Inc. ,
Hamilton is not qualified to testify about consumer behavior or demand. His expertise is in the engineering and mechanical fields. He is a professional engineer and instructor and has worked as a consulting engineer. However, I find that Hamilton is *836not offering an opinion on consumer behavior in his acceptable alternatives analysis. Rather, his opinions focus on the technical advantages of the '551 Patent and whether competing products contain those advantages. Doc. No. 111-3 at 17-18. It appears that Hamilton did not consider or rely on any consumer market analysis. Because consumer demand is a necessary part of the overall acceptability analysis, I will exclude those portions of Hamilton's opinions in which he concludes that certain competitors' products are acceptable alternatives.7 However, those portions of his opinions describing advantages that are present (or not) in the competitor products are technical issues, on which I find he is qualified to testify.
Hamilton acknowledged "that to be an acceptable non-infringing alternative, a product must be acceptable to a user as a substitute for the product covered by the patent in suit (namely, having the advantages offered by the patented product. ) The mere existence of a competing product is not enough." Id. at 6 (emphasis added). He provided an overview of the '551 Patent and discussed its advantages. Id. at 7-11. This demonstrates an accurate understanding of the law regarding the limited portion of the analysis on which I find Hamilton is qualified to testify.
Finally, I do not agree that the Line of Sight Group (LOSG) study contradicts Hamilton's opinions so as to render them inadmissible, as Hamilton's report and the LOSG study address distinct issues. Hamilton's report focuses on technical advantages while the LOSG study focuses on the commercial aspect - the subject on which Hamilton will not be permitted to testify. The impact of the LOSG study on Hamilton's opinions, if any, goes toward the weight of the opinions, not their admissibility.
b. Secondary considerations
Hamilton provides an opinion on the following secondary considerations: long-felt need, failure of others, teaching away, commercial success, praise of others and copying. Doc. No. 111-4 at 37-38, 39. HitchDoc argues that Hamilton's opinions on secondary considerations are inadmissible because (1) he is not qualified in marketing, economics or finance areas, (2) his opinions are contrary to law, (3) his opinions are contrary to other facts of record and (4) his opinions lack methodology. Doc. No. 111-1 at 11-12.
i. Long-felt need
To demonstrate long felt need, there must be an "articulated identified problem and evidence of efforts to solve that problem." Perfect Web Techs., Inc. v. InfoUSA, Inc. ,
ii. Failure of others
The purpose of evidence showing the "failure of others" is to show "indirectly the presence of a significant defect *837in the prior art, while serving as a simulated laboratory test of the obviousness of the solution to a skilled artisan." In re Cyclobenzaprine Hydrochloride Extended-Release Capsule Patent Litig. ,
iii. Teaching away
A reference "teaches away" when it discourages a person of ordinary skill from following a certain path, or leads that person in a "direction divergent from the path that was taken by the applicant." DePuy Spine, Inc. v. Medtronic Sofamor Danek, Inc. ,
This factor relies on technical aspects of a patent. Hamilton states that in his opinion, Roth would teach one skilled in the art away from guide plates extending upwardly and outwardly from the perimeter edge of the bed. Doc. No. 111-4 at 37. He then explains what Roth teaches. I find that Hamilton's opinion on this point, does have a factual basis (albeit a limited one) and relies on technical expertise about the components of both the Roth and the '551 Patent that would be helpful to the jury. I find Hamilton's opinions on the teaching away issue to be admissible.
iv. Commercial success and praise of others
Commercial success is relevant only if there is a nexus between the success and the claimed invention. Tokai Corp. v. Easton Enters., Inc. ,
Hamilton states that Wyman Travis' testimony provides evidence of both commercial success and praise of others because his sales began to pick up when he redesigned the seed cart and as a result "he received praise from others." Doc. No. 111-4 at 38. He also states that he understood Meridian enjoyed commercial success because of the patented technology. Id. at 39. As noted above, however, Hamilton's expertise is limited to the technical and engineering aspects of the patent. He does not have the requisite expertise in market forces or consumer expectations to provide opinions as to commercial success or other commercial aspects of an invention. His *838opinions as to commercial success and praise of others are inadmissible.
v. Copying
"[C]opying requires the replication a specific product." Iron Grip Barbell Co., Inc. v. USA Sports, Inc. ,
I find that Hamilton's opinions on the copying factor are conclusory, would not be helpful to the jury and are beyond the scope of expertise. As such, those opinions are not admissible.
4. Scope of prior art
Now that I have determined which expert opinions are admissible with regard to the validity of the '551 Patent, I will turn to the substance of the parties' summary judgment arguments. As explained above, one of the inquires relating to obviousness is the proper scope of prior art. PAR Pharm. ,
The two tests for defining the scope of analogous prior art are (1) field of endeavor and (2) problem addressed by the invention. Smartdoor Holdings ,
HitchDoc contends that the scope of prior art is broad and pertains to the problem of centering containers on a vehicle, not just boxes on an agricultural seed cart. Id. at 21. HitchDoc argues the range of prior references must be broad because Meridian claims the level of ordinary skill is high. Id. at 22. HitchDoc argues that the Fitch Patent, Patent No. 3,449,801 (LaFont), Bedard, Patent No. 5,000,633 (Kowalik), Patent No. 1,710,7373 (Kiesel) and Patent No. 2,017,414 (Liebegott) are all included in the scope of prior art and render the '551 Patent invalid due to obviousness. See Doc. No. 91-1 at 25-42.
Meridian argues that the scope of prior art is narrow and includes only trailers for transporting bulk seed boxes. Doc. No. 107 at 11. But even if the field of endeavor is broadened to include "agricultural implements," Meridian claims that the only proper prior art is the Roth patent. Id. Meridian contends that the problem addressed by the '551 Patent is the narrow problem of placing seed boxes on the trailer *839bed of a seed tender while using a forklift, and notes that none of the references asserted by HitchDoc relate to that particular problem. Id. at 12. Meridian thus argues that Fitch, which it referenced in its claim interpretation arguments, is not prior art. Id. at 14.
Meridian cites to Garry Friesen's deposition to demonstrate the specific problem solved by the '551 Patent.8 Doc. No. 107-2 at 3 ¶ 14. Friesen testified that the guide plates were placed in a way to give the forklift more space for the boxes and to maximize the support from the legs of the seed tender. Doc. No. 107-3 at 92. Meridian also cites the patent itself and Hamilton's expert opinions. Doc. No. 107-2 at 2 ¶ 13. The '551 Patent states that an objective of the invention is to "facilitate loading of the box on the bed." Doc. No. 91-19 at 7. Hamilton's report states that Friesen was attempting to "develop a means of placing a box containing seed onto a cart in as effective manner as possible while minimizing the risk of damaging the boxes." Doc. No. 107-3 at 46.
HitchDoc cites the Fitch patent and the '551 Patent. Doc. No. 91-1 at 21. HitchDoc also refers to Heise's expert report. Id. at 29-32, 34, 37, 39-48 (cited as Morehead Aff. Ex. Q). Heise's report states that the problem is placing a box or container safely, efficiently and accurately on an elevated surface, meaning that the scope of prior art should include art from non-agricultural industries. Id. HitchDoc argues that the '551 Patent states that the problem it solves is centering and maintaining containers on a vehicle. Id. at 21. The language of the patent, however, discusses only flat trailer beds and a "trailer for bulk seed boxes." Doc. No. 31-19 at 7. This language could support either Meridian's or HitchDoc's interpretation.
As noted above, the parties dispute whether Fitch is prior art. HitchDoc argues that Meridian must concede Fitch is prior art because it relied on Fitch in arguing the interpretation of claim 1. Doc. No. 91-1 at 21, 29. HitchDoc does not cite any law for this argument. Meridian argues that the prosecution history is not determinative because prior art was never part of the discussion. Doc. No. 107 at 14.
HitchDoc is correct that Meridian relied on the Fitch patent in arguing for summary judgment on the issue of infringement. See Doc. No. 57 at 13-14. In addition, during the prosecution history, the patent examiner identified Fitch as being prior art. Doc. No. 91-10 at 7-8. Fitch deals with positioning a container on a freight truck and uses four brackets to center the freight containers. Doc. No. 91-15 at 55. Nothing indicates that the Fitch invention is specific to the field of agriculture.
I relied on Fitch to help define "perimeter edge," as that term is used in the '551 Patent. Doc. No. 75 at 13-14. I noted that the patent examiner identified that it would have been obvious for a person of ordinary skill in the art to modify Fitch to create the invention described in the '551 Patent. Id. at 14. However, I find that the patent examiner's conclusion that Fitch is prior art is not determinative. Nor, as noted above, has HitchDoc provided legal support for the argument that Fitch must be considered prior art because Meridian relied on it when arguing that infringement occurred. Because the scope of the prior art is a factual question for the jury, *840I will not undertake to determine that scope as a matter of law.9
5. Content of prior art
Because the scope of prior art must be determined by the jury, I need not address the content of the prior art at this time. I will also not separately address the dependent claims because if there is a question of fact on the scope of prior art on claim 1, there is a question of scope of prior art for the other claims as well.
6. Motivation to combine
I have previously addressed the standard for determining a motive to combine in discussing the admissibility of James Heise's expert opinion. See Section IV(A)(2)(g), supra . A patent claim can be proved to be obvious by showing that there was a known problem at the time of the invention for which an obvious solution existed. KSR ,
HitchDoc argues that the evidence, including Fitch, shows that the guide plates resulted from design expediency. Id. at 26-27. HitchDoc also argues that multiple prior art references "teach the precise limitation Friesen relied upon for a finding of patentability."Id. HitchDoc contends the location of the guide plates was merely a modification of Fitch's guides in response to his particular design needs and so there must be a finding of obviousness. Id. at 27-29.
Meridian argues that the extension of guide plates beyond the perimeter was not a design expediency but, instead, was done to improve the performance of the seed tender and improvement does not mean it was a design need. Doc. No. 107 at 22. Meridian argues that HitchDoc has failed to show any evidence of a design need to extend the plates beyond the perimeter. Id. at 23. Therefore, there is no evidence of a motivation to combine the Roth and Fitch patents. Id. at 24. Meridian also argues that there is evidence of nonobviousness that creates a question of fact. Id. at 24-26.
HitchDoc relies on the patent examiner's conclusion that it would "have merely been a design expediency" to extend the plates beyond the bed perimeter by combining Roth, Fitch and then shifting the *841position of the plates. Doc. No. 91-9 at 3. HitchDoc contends that the Board applied the TSM test too rigidly when it disagreed with the patent examiner and stated the determination of design expediency was not supported by any evidence. Doc. No. 91-14 at 10. However, the Board clearly stated that evidence could come from the prior art references, knowledge of someone of ordinary skill or from the nature of the problem. Id. The Board characterized the sources of evidence as "broad" but indicated some evidence was still required. Id. This seems to be in line with KSR 's mandate of applying the TSM test flexibly.
HitchDoc relies on Friesen's deposition testimony, along with Heise's opinion that it would have been obvious to combine elements of certain pieces of prior art. Doc. No. 91-21 at 20. Meridian relies on Friesen's testimony as well, arguing that the design of the guide plates was "not an expedient choice" because there were other ways Friesen could achieve his goals. Doc. No. 107 at 22. Meridian also relies on Hamilton's opinion that the guide plate extension was not a design expediency but, instead, "an intentional part of the problem solving" that resulted in "a lower cost and less labor intensive manufacturing process." Doc. No. 107-3 at 50.
The parties disagree on the definition of "design expediency." Meridian argues it is the "convenient, though perhaps not optimal, design choice" but does not cite any sources. Doc. No. 107 at 22. HitchDoc appears to use the "design need" definition as used in KSR. Doc. No. 91-1 at 23. The dictionary definition of "expediency" is "the quality of being suited to the end in view." Merriam-Webster Dictionary https://www.merriam-webster.com/dictionary/expediency. I find "design expediency" for purposes of an obviousness analysis is more in line with the "design need," so the fact that the choice to extend the guide plates was not necessarily the most convenient or the only option does not prohibit a finding of obviousness.
However, there remains a question of fact as to whether a person of ordinary skill would be motivated to combine features of prior art. First, as stated above, the jury must make factual findings concerning the scope and content of the prior art. Second, the parties have presented conflicting expert testimony as to whether a design need and common sense would prompt the combination of certain features taught by the prior art.
For all of the reasons set forth above, HitchDoc's motion for summary judgment as to the validity of the '551 Patent will be denied.
B. Damages
HitchDoc seeks to bar Meridian's recovery of damages for infringement that incurred prior to September 17, 2015, and also argues that Meridian is not entitled to enhanced damages based on willful infringement. Doc. No. 89-1 at 3. I will address these issues separately. I will then address the parties' motions to exclude certain expert opinions that go to the issue of damages.
1. Limitation on Damages
Patentees, and persons making, offering for sale, or selling within the United States any patented article for or under them, or importing any patented article into the United States, may give notice to the public that the same is patented, either by fixing thereon the word "patent" or the abbreviation "pat.", together with the number of the patent, or by fixing thereon the word "patent" or the *842abbreviation "pat." together with an address of a posting on the Internet, accessible to the public without charge for accessing the address, that associates the patented article with the number of the patent, or when, from the character of the article, this can not [sic] be done, by fixing to it, or to the package wherein one or more of them is contained, a label containing a like notice. In the event of failure so to mark, no damages shall be recovered by the patentee in any action for infringement, except on proof that the infringer was notified of the infringement and continued to infringe thereafter, in which event damages may be recovered only for infringement occurring after such notice. Filing of an action for infringement shall constitute such notice.
Here, the parties agree that Meridian gave HitchDoc actual notice of infringement on September 17, 2015. Doc. No. 101 at 5. The parties also agree that Meridian may recover damages only for infringement occurring after November 23, 2009.
On the issue of whether the seed tenders were marked, there is evidence that Meridian ordered patent decals in November 2002, December 2007 and September 2008. Doc. No. 89-13 at 10-11. Some decals were not used. Id. at 12-13; Doc. No. 89-17. Mark Loewen, Meridian's Director of Engineering, wrote in 2014: "Historically, Meridian has not placed patent markings on its products, but that is about to change." Doc. No. 89-18 at 4. Peter Trebuschnoj, Meridian's Director of US Operations, indicated that Meridian stopped applying patent decals sometime around 2011. Doc. No. 89-20. In approximately 2014, the plan was to use a standardized patent decal that would refer customers to a website where the specific patents would be listed. Doc. No. 103 at 48, 73. However, it is unclear whether that plan was actually implemented. Doc. No. 89-18 at 10, 13 (Loewen does not recall whether the plan was actually implemented); Doc. No. 89-10 at 5 (Trebuschnoj is "fairly sure" the plan *843was followed but did not inspect all units). Curtis Famer testified that he believed at least some products were marked with patent stickers prior to May 2014, but not all. Doc. No. 103 at 73.
Surprisingly, in the midst of both parties' citations to the record, there is only a single photo of a product that is marked with the phrase "patent protected." Doc. No. 103 at 57-58. Other pictures show seed tenders with a "Meridian" label but no patent decal. Id. at 60-65. Based on the record before me, no reasonable fact finder could find that Meridian "consistently marked substantially all of the patented products" in a way that was substantially consistent and continuous before September 17, 2015.
As for Meridian's argument that it sufficiently "marked" its products by providing a patent number in the user manuals, the statute requires that the marking be affixed to the article itself.
Moreover, Meridian has not generated a genuine issue of fact as to whether the user manuals actually contained a reference to the patent. Meridian has not provided a copy of any such manual containing a reference to the patent. While Meridian cites Trebuschnoj's testimony that the user manuals included the patent number, he wrote in a 2015 email message that Meridian's user manuals had "no reference" to any patents. See Doc. No. 103 at 53; Doc. No. 89-20. Thus, even if Meridian could have complied with § 287(a) by marking its user manuals, rather than the product itself, it has failed to produce sufficient evidence to show that it did so.
HitchDoc has shown, as a matter of law, that Meridian did not mark its products in accordance with § 287(a). As such, Meridian is not entitled to recover damages based on infringement that occurred before September 17, 2017, when it provided HitchDoc with actual notice of infringement.
2. Enhanced Damages
"Upon finding for the claimant" in a patent infringement action, "the court may increase the damages up to three times the amount found or assessed."
"Willfulness turns on the actual knowledge of the infringer, and is *844unrelated to the adequacy of constructive notice by the patentee." Nike ,
HitchDoc argues that enhanced damages are not appropriate because there is no evidence that its infringement was willful. Doc. No. 89-1 at 12. Meridian notes, among other things, that HitchDoc cited the '551 Patent in the prosecution of HitchDoc's own patent and argues that HitchDoc's infringement was both willful and egregious. Doc. No. 101 at 10-17. I find the summary judgement record to be insufficient for me to make a finding, as a matter of law, that enhanced damages under § 284 are not recoverable. If the jury finds willful infringement, I will consider an award of enhanced damages based on the entire trial record. HitchDoc's motion for summary judgment on this issue will be denied.
3. Expert Opinions on Damages
If a patent has been infringed, the patentee is entitled to "damages adequate to compensate for the infringement." AstraZeneca AB v. Apotex Corp. ,
a. Carol Ludington
Ludington was retained by HitchDoc to present opinions on "financial and analytical projects related to damages." Doc. No. 117-1 at 4. She has provided financial analyses to clients for over thirty years, is a certified public accountant and is certified in financial forensics, among other licenses and titles. Id. at 5-7. Ludington has provided opinions as to both lost profits and a reasonable royalty. Meridian contests certain portions of her opinions on grounds of both her expertise to issue the opinions and the methodology she employed. The contested aspects of Ludington's opinions are, in summary form, as follows:11
• The patentable feature is only a portion of HitchDoc's product and the damages should be apportion between the guide plates and other features. Doc. No. 117-1 at 19.
• The cost differences between HitchDoc's infringing design and its post-infringement order redesign provides the most useful information for apportionment. Doc. No. 117-2 at 15-16.
• A chart comparing various product features between different companies. Doc. No. 117-1 at 13-14.
• A reasonable royalty would not be more than the cost to HitchDoc to develop and implement an alternative design. Doc. No. 117-2 at 16-17.
*845• A reasonable royalty would be a lump sum of $15,000 to $30,000. Id. at 18-19.
Meridian argues that these opinions should be excluded because (1) Ludington is unqualified to testify on scientific and technical matters, (2) the opinions are based on insufficient facts and unreliable methodology and (3) the opinions are unreliable because Ludington ignored pertinent facts and assumed that Meridian is not entitled to recover damages for infringement that occurred before September 2015. Doc. No. 118-1 at 20, 22-27. HitchDoc argues that the challenged opinions are admissible because Ludington is a qualified damages expert, she did not provide opinions on technical issues and the methodology she used is reliable. Doc. No. 127 at 19, 21, 26.
i. Qualifications
Meridian contends that Ludington is not qualified to testify (1) about a "patentable feature" or (2) about product features that other competitor's products have because she is not a technical expert. Doc. No. 118-1 at 20. On the first issue, Ludington states in her report that she has been retained by HitchDoc and advised that of the various features listed on the seed tenders, the "key feature at issue is guide plates that incline upwardly and outwardly from the perimeter edge of the bed." Doc. No. 117-1 at 4. She then identifies the guide plates as the "Patentable Feature." Ludington is not a legal expert, but here she is not providing an expert opinion on a legal issue. Instead, she is relying on information from other sources to inform her conclusions about her area of expertise, which is appropriate. See Apple Inc. v. Motorola, Inc. ,
With regard to the second issue, Ludington provided a chart summarizing the features and attributes that are reflected in "marketing literature and other documents." Doc. No. 117-1 at 12-14. The chart shows various attributes of seed tenders sold by HitchDoc, Meridian and other competitors.
ii. Methodology
Meridian argues that it is improper to limit reasonable royalty damages to the cost of developing a redesigned seed tender. Doc. No. 118-1 at 22. Meridian also argues that Ludington improperly treated HitchDoc's redesign as an available, non-infringing alternative. Id. at 23.
Reasonable royalty cap. "A reasonable royalty can be calculated from an established royalty, the infringer's profit projections for infringing sales, or a hypothetical negotiation between the patentee and infringer." Wordtech Sys., Inc. v. Integrated Networks Sols., Inc. ,
Ludington states that she "understand[s] that HitchDoc's redesigned seed cart has been favorably received by dealers and customers, that it is perceived as more sturdy, and that it is less expensive to produce," relying on a deposition of Chad Mohns and an interview with Brad Mohns and Chad Mohns. Doc. No. 117-2 at 14. She goes on to state that apportionment is appropriate, but there is no information available to "provide a basis for apportionment of profits between the features of the '551 patent and other considerations." Id. at 16. Instead, the production cost differences between the infringing design and the re-design is the most useful guidance. Id. She states that due to this information, and because there were available, acceptable non-infringing alternatives, "a reasonable royalty would not be more than the cost to HitchDoc to develop and implement an alternative, non-infringing design." Id.
Ludington's opinion does not place an automatic cap on damages at the cost of redesign. Rather, she concludes based on the facts and circumstances of this case that a reasonable royalty would not exceed the cost of redesigning the HitchDoc seed tender. She can be cross-examined on this conclusion, but the conclusion is not inadmissible.
Redesign as acceptable alternative. Lost profits ordinarily cannot be recovered if acceptable non-infringing alternatives were available during the period of infringement. Micro Chem., Inc. v. Lextron, Inc. ,
In discussing lost profits, Ludington references acceptable non-infringing substitute products that were on the market, as identified by Zach Eubank and John Hamilton. Doc. No. 117-1 at 32-33. She adds that Eubank neglected to identify HitchDoc's redesigned seed tender as an acceptable non-infringing alternative. Id. at 33. Ludington was advised that dealer and customer reactions to the redesign were positive and that the re-design could have been developed and implemented earlier, "[h]ence, the re-design represents an available, *847acceptable non-infringing alternative." Id. ; see also Doc. No. 117-2 at 14. She concludes that because "there were available, acceptable non-infringing alternatives" a reasonable royalty would not be more than the cost of developing and implement an alternative. Id. at 16.
If the necessary equipment, know-how and experience were available at the time of infringement, a substitution may be considered an acceptable, available alternative even if it was not on the market. Micro Chem. , 318 F.3d at 1123. Whether the redesigned product is an acceptable, available alternative is ultimately a question of fact for the jury. DePuy Spine ,
iii. Reliability
Meridian argues that Ludington ignored the costs of the retrofit, focusing only on the cost of the redesign, and provided no sources for the costs she did consider. Doc. No. 118-1 at 26-27. Meridian also claims she ignored the cost of having counsel review the design and the present litigation costs. Id. at 26. Meridian contends her reasonable royalty rate is inadmissible because it is significantly less than the revenue HitchDoc made from its infringing product. Id. at 27.
At the outset, I note that litigation costs are irrelevant to the reasonable royalty consideration. The hypothetical reasonable calculation must occur before the litigation because litigation can "skew the results" of the negotiation. ResQNet.com, Inc. v. Lansa, Inc. ,
Second, Ludington did not ignore HitchDoc's retrofit. She acknowledges that it occurred but notes that there is a dispute about whether the retrofitted units still infringe the '551 Patent. Doc. No. 117-1 at 10, 34. Whether Ludington should have included the costs that resulted from the retrofit of existing infringing products, in addition to the cost of redesign, goes to the weight of the evidence, not its admissibility. She used reliable methods and legally sufficient facts to come to her conclusions. She also provided sources for the costs she did consider. See Doc. No. 117-2 at 17 n. 93-97, 113.
Finally, the fact that Ludington's proposed, reasonable royalty is less than the revenue HitchDoc made from the infringing product also goes to weight, not admissibility, as she has provided sufficient support for her opinion. The issues Meridian raises are proper grounds for cross-examination but do not render Ludington's opinion inadmissible.
iv. Damages before September 2015
Meridian argues Ludington's opinion is inadmissible because it assumes Meridian is not entitled to damages from before September 17, 2015. Doc. No. 118-1 at 28. However, I have already found that this assumption is correct. See Section IV(B)(1), supra . As such, I reject Meridian's argument on this issue.
*848b. Zach Eubank
Eubank was retained by Meridian and has provided opinions on both reasonable royalty and lost profits damages. He estimates four potential damages rates based on reasonable royalties. Doc. No. 114-7 at 24. These rates are 3.0%, 5.0%, 8.2% and 10% of sales. Id. He states that this range established the minimum amount of compensation to which Meridian is due. Id. at 7. His second conclusion is that Meridian would have likely "captured a portion of [HitchDoc's] box tender sales if the infringement had not occurred" and thus is entitled to lost profits. Doc. No. 114-7 at 28. Eubank states that based on John Hamilton's expert report and a report by the Line of Sight Group, Meridian would have "captured at least 24 to 44 percent" of HitchDoc's sales. Id. Therefore, Meridian would have made $2,847,300 in profits if the infringement had not occurred. Based on the combination of a reasonable royalty and lost profits damages, Eubank states that Meridian is entitled to damages in a range of $3,704,200 to $5,703,500. Id. at 29.
i. Reasonable royalty rates
HitchDoc argues that Eubank's opinion is unreliable because it is based on unrelated and irrelevant license agreements and are not apportioned to the patented feature alone. Doc. No. 121 at 28-33, 36. HitchDoc also argues that Eubank did not perform any research or market analyses to come to his conclusion. Id. at 35. HitchDoc claims that Eubank's opinions are merely conclusory and that he did not reliably apply the appropriate factors. Doc. No. 137 at 19-22. Meridian argues that his comparisons with other licensing agreements are reasonable and Eubanks sufficiently explained the factors he used to come to his conclusion. Doc. No. 125 at 13-14. Additionally, apportionment to the patented feature is not necessary because, according to Meridian, the smallest salable unit is the box tender. Id. at 15-17.
As noted above, there are several approaches for calculating a reasonable royalty. Lucent Techs., Inc. v. Gateway, Inc. ,
The Second Georgia-Pacific factor. The plaintiff has the burden of proving that the licenses relied upon are sufficiently comparable and how any differences would affect the appropriate royalty. Lucent Techs. ,
ResQNet found that licenses had no relationship to the invention when they did not mention the patent in suit or "showed any other discernable link to the claimed technology."
Eubank stated that he "examined market rates for similar royalties paid in the industry." Doc. No. 121-6 at 23. To do so, he searched the RoyaltySource Intellectual Property Database and searched for rates "in the machinery, agricultural, forestry and fishing industries."
These descriptions do not show how the technologies are comparable to the technology at issue or how Eubank accounted for the differences. "[A]lleging a loose or vague comparability between different technologies or licenses does not suffice." LaserDynamics, Inc. v. Quanta Comput., Inc. ,
The agreement between Wyman Travis and HitchDoc is a closer question. Doc. No. 121-6 at 19. Eubank discusses how HitchDoc agreed to purchase the Travis Seed Cart business, which included box tenders, and the amount HitchDoc ultimately paid for the seed cart design.
The Other Georgia-Pacific factors. While Eubank testified that his royalty rates were "primarily" based on the six other licenses discussed above, his report does mention other Georgia-Pacific factors. Doc. No. 121-20 at 102; Doc. No. 121-6 at 17-18. However, a "superficial recitation of the Georgia-Pacific factors, followed by conclusory remarks" is not sufficient. Exmark ,
As in Exmark , Eubank listed the factors and discussed what was included in those categories but did not complete the crucial step of explaining how those factors would influence the parties in a hypothetical negotiation to reach agreement as to his proposed reasonable royalty rates. See Exmark ,
ii. Lost profits
As explained above, the second element of proving lost profits is showing that there are no acceptable, non-infringing alternatives to the patented technology. However, a patent owner may satisfy that element by "substituting proof of its market share," which allows the patentee to recover lost profits "despite the presence of acceptable, noninfringing substitutes, because it nevertheless can prove with reasonable probability sales it would have made 'but for' the infringement." BIC Leisure Prod., Inc. v. Windsurfing Int'l, Inc. ,
HitchDoc also argues that Eubank's lost profits calculations are unreliable because he "blindly relied" on a flawed market share analysis conducted by LOSG and information from Meridian, did not consider sales from a different company and improperly assumed the percentage of Meridian's market decline without performing any independent analysis. Id. at 17-20. In addition, HitchDoc contends that Eubank's assumed profit margins are unreliable because he improperly combined the profit margins of other products and improperly assumed profit margin changes without supporting evidence. Id. at 20-27. Meridian argues that Eubank properly calculated lost profits and properly relied on the LOSG study because it was the best available evidence and is of a kind that experts in Eubank's field typically rely on. Doc. No. 125 at 8-10. Meridian claims that Eubank sufficiently explained his estimates, assumptions and reasons for the combined profit margins. Id. at 11-13.
When opposing experts rely on conflicting sets of facts, it is not the court's role to evaluate the correctness of the facts underlying one expert's testimony. Micro Chem. ,
"Experts routinely rely upon other experts hired by the party they represent for expertise outside of their field." Apple Inc. ,
Eubank testified that he assumed the LOSG study was valid and relied on its findings. Doc. No. 121-20 at 48. He also stated that he believes the analysis LOSG used is laid out in the report.
Based on my review of his report and the parties' arguments, I find that Eubank's opinions as to market share and lost profits are not so "fundamentally unsupported" that they must be excluded. He reviewed data presented from multiple sources and reached conclusions based on the data. See Williams v. Sec. Nat. Bank of Sioux City, Iowa ,
Nor does relying on sales data documents produced by Meridian render Eubank's testimony unreliable. This situation is not analogous to that in US Salt , in which the expert simply adopted internal estimates and projections based on the owner's opinion about the company's expected sales and the nature of the market.
Finally, the fact that Eubank applied a historical average profit to hypothetical sales absent infringement, rather than the actual profit margin for sales allegedly affected *852by infringement, does not demonstrate that his opinion is so unreliable as to be inadmissible. HitchDoc seems to be contesting the reasonableness of choosing that method over another. Eubank explained why he did not use the actual profit margins for 2011 and instead used an adjust profit margin. He testified it was to adjust for "industry factors and economic factors" in a pre-damage period. Doc. No. 121-20 at 80. Whether that choice was accurate or reasonable is a topic for cross-examination. The same is true of HitchDoc's complaint that Eubank did not properly account for the impact of the downturn of the agricultural economy, as Eubank specifically noted that "[b]oth companies appear to have been affected by the recent downturn in agriculture." Doc. No. 121-6 at 12.
C. HitchDoc's Other Defenses and Counterclaims
In its motion for summary judgment, Meridian argues that HitchDoc's defenses and counterclaims alleging invalidity under
V. CONCLUSION
For the reasons set forth herein:
1. HitchDoc's motion (Doc. No. 90) for summary judgment on invalidity under
2. Meridian's motion (Doc. No. 92) for summary judgment on certain of HitchDoc's defenses and counterclaims is granted in its entirety . HitchDoc's affirmative defenses and/or counterclaims of invalidity under
3. HitchDoc's motion (Doc. No. 88) to limit damages is granted in part and denied in part . The motion is granted with regard to actual damages arising from infringement that occurred before September 17, 2015. As a matter of law, those damages are not recoverable in this action. The motion is denied with regard to enhanced damages under
4. Meridian's motion (Doc. No. 118) to exclude the expert testimony of James A. Heise and Carol Ludington is granted in part and denied in part , as set forth in this order.
5. HitchDoc's motion (Doc. No. 111) to exclude the expert testimony of John Hamilton is granted in part and denied in part , as set forth in this order.
6. HitchDoc's motion (Doc. No. 113) to exclude the expert testimony of Zach Eubank is granted in part and denied in part , as set forth in this order.
IT IS SO ORDERED.
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