Methode Electronics, Inc. v. DPH-DAS LLC

679 F. Supp. 2d 828, 94 U.S.P.Q. 2d (BNA) 1467, 2010 U.S. Dist. LEXIS 3604, 2010 WL 174554
CourtDistrict Court, E.D. Michigan
DecidedJanuary 19, 2010
DocketCivil Action 09-CV-13078, 09-14303
StatusPublished
Cited by1 cases

This text of 679 F. Supp. 2d 828 (Methode Electronics, Inc. v. DPH-DAS LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Methode Electronics, Inc. v. DPH-DAS LLC, 679 F. Supp. 2d 828, 94 U.S.P.Q. 2d (BNA) 1467, 2010 U.S. Dist. LEXIS 3604, 2010 WL 174554 (E.D. Mich. 2010).

Opinion

OPINION AND ORDER

(1) AFFIRMING AND MODIFYING THE MAGISTRATE JUDGE’S NOVEMBER 17, 2009 OPINION AND ORDER GRANTING IN PART DELPHI’S MOTION FOR PROTECTIVE ORDER AND DENYING METHODE’S MOTION FOR PROTECTIVE ORDER (DKT. NO. 12) AND (2) DENYING METHODE’S OBJECTIONS TO THE MAGISTRATE JUDGE’S NOVEMBER 17, 2009 OPINION AND 0RDER(DKT. NO. 11)

PAUL D. BORMAN, District Judge.

Before the Court are Plaintiff Methode Electronics, Inc.’s (“Methode”) Objections to the Magistrate Judge’s November 17, 2009 Opinion and Order Granting in Part and Denying in Part Delphi’s Motion for Protective Order and Denying Methode’s Motion for Protective Order. 1 2009 WL 3875980, (Dkt. No. 44.) This Court held a hearing on January 8, 2010. For the reasons stated herein, the Court affirms and modifies the Magistrate Judge’s November 17, 2009 Opinion and Order and denies Methode’s objections to that Order.

1. BACKGROUND

In this patent action, Defendant DPH-DAS LLC f.k.a. Delphi Automotive Systems LLC (“DPH”) and Plaintiff Methode both hold patents related to technology involving bladders in automobile car seats that detect the weight of a passenger. Methode claims that DPH is infringing its patent and DPH responds that it is not guilty of infringement and that Methode’s patent is invalid. The parties agree that a protective order is necessary to protect the parties’ confidential commercial information and intellectual property but disagree on the terms of such an order. Specifically, the parties cannot agree on the appropriate terms of the provision of the protective order which restricts access to Attorneys Eye Only (“AEO”) information by litigation counsel who are also patent prosecution counsel.

The essence of the dispute is whether Mr. Wolfe, who serves as both litigation and patent prosecution counsel for Methode, or someone acting in his same capacity, should be considered a “competitive decisionmaker” and therefore should be barred from prosecuting patents and at the same time participating in litigation involving the same or similar patents and/or technology. 2 The principal para *830 graph at issue, as proposed by DPH, provides:

5. Access to Confidential-Attorneys Only Information. Access to information designated as ‘ATTORNEYS EYES ONLY’ shall be limited to, and only to, those persons listed in paragraphs 4(a) through 4(c) and 4(e) through 4(g), except that no person for the defendant, including attorneys, who participates in, aides in, advises or counsels concerning the preparation, filing and/or prosecution of patent applications in any country, including any interference, reissue, reexamination or other proceeding, relating to occupant sensing technologies and/or the subject matter of U.S. Patent Nos. 5, 975, 568, 7, 237, 443, Des 409, 935 and/or related patents and patent applications shall be permitted access to documents marked “ATTORNEYS EYES ONLY.” Further, persons described in paragraph 4(d) shall not be given access to documents marked “ATTORNEYS EYES ONLY.” (Emphasis added).

On November 17, 2009, the Magistrate Judge entered an Opinion and Order which adopted this language, deleting the italicized words “the defendant” and substituting the words “any party,” thereby making the provisions of this paragraph applicable to both Methode and DPH. (Dkt. No. 42.)

Methode objects to the Magistrate Judge’s November 17, 2009 Opinion and Order arguing that the Opinion and Order is clearly erroneous and contrary to applicable law because: (1) “it fails to apply the ‘competitive business decisionmaker test’ to all parties equally and because the patent prosecution bar adopted by the Court does' not comport with the ‘competitive business decisionmaker’ test established by the Federal Circuit for use in patent cases”; and (2) “it failed to adopt a protective order that implemented reciprocal restrictions on the parties’ selection of consultants and experts under the Federal Circuit’s competitive decisionmaking test.” (Methode Br. Support Obj., Dkt. No. 45, p. iii.) 3

II. ANALYSIS

The Court finds that the Magistrate Judge’s November 17, 2009 Opinion and Order was not clearly erroneous or contrary to applicable law and that the Magistrate Judge correctly applied the “competitive business decisionmaker test” to the facts of this case, in adopting in part DPH’s proposed protective order and denying Methode’s motion for a protective order. The Court, however, modifies the Magistrate Judge’s November 17, 2009 Opinion and Order to clarify the parameters of that Opinion and Order relating to paragraph 5 of DPH’s proposed protective order, and provides the necessary discussion of the “harm” factor insofar as it applied to Methode under this Order.

1. The Competitive Decisionmaker Test

The competitive decisionmaker test was first articulated by the Federal Circuit in United States Steel Corp. v. United States, 730 F.2d 1465 (Fed.Cir.1984). Discussing the “problem and importance of avoiding inadvertent disclosure” of a party’s highly confidential material in the course of litigation, the court refused to draw a bright line distinction between in-house and retained counsel, and cautioned that determining whether there was an “unacceptable opportunity for inadvertent disclosure” was a case-by-case, fact-specific task. (Id. *831 at 1468). The court then acknowledged that the “competitive decisionmaking” inquiry could be a meaningful basis for determining whether or not access to highly confidential material should be granted:

The parties have referred to involvement in “competitive decisionmaking” as a basis for denial of access. The phrase would appear serviceable as shorthand for a counsel’s activities, association, and relationship with a client that are such as to involve counsel’s advice and participation in any or all of the client’s decisions (pricing, product design, etc.) made in light of similar or corresponding information about a competitor.

730 F.2d at 1468 n. 3. This test has been employed, with widely varying results, in the context of patent litigation, to determine whether or not a court should adopt a protective order that restricts an accused infringer’s litigation counsel access to certain confidential information, i.e. a “patent prosecution bar.”

Methode argues that the unpublished decision of the Federal Circuit in In Re Sibia Neurosciences, Inc., 1997 WL 688174, 1997 U.S.App. LEXIS 31828 (Fed. Cir. Oct. 22, 1997), is “controlling authority,” and that the Magistrate Judge failed to follow this decision in her Opinion and Order. The court in In Re Sibia cautioned that denying access to a party’s outside counsel solely on the ground that such counsel also prosecute patents is “the type of generalization counseled against in U.S. Steel. The facts, not the category, must inform the result.” Id. at *3, 1997 U.S.App. LEXIS 31828 at *6.

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679 F. Supp. 2d 828, 94 U.S.P.Q. 2d (BNA) 1467, 2010 U.S. Dist. LEXIS 3604, 2010 WL 174554, Counsel Stack Legal Research, https://law.counselstack.com/opinion/methode-electronics-inc-v-dph-das-llc-mied-2010.