MGA, INC. v. Centri-Spray Corp.

699 F. Supp. 610, 7 U.S.P.Q. 2d (BNA) 1861, 1987 U.S. Dist. LEXIS 14380, 1987 WL 49224
CourtDistrict Court, E.D. Michigan
DecidedDecember 22, 1987
DocketCiv. 83-CV-2641-DT
StatusPublished
Cited by8 cases

This text of 699 F. Supp. 610 (MGA, INC. v. Centri-Spray Corp.) 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.

Bluebook
MGA, INC. v. Centri-Spray Corp., 699 F. Supp. 610, 7 U.S.P.Q. 2d (BNA) 1861, 1987 U.S. Dist. LEXIS 14380, 1987 WL 49224 (E.D. Mich. 1987).

Opinion

*612 MEMORANDUM OPINION AND ORDER

PHILIP PRATT, Chief Judge.

OVERVIEW

Plaintiff MGA, Inc.’s (“MGA”) patent infringement action against defendant Cen-tri-Spray, Inc. (“Centri-Spray”) is before the court following a trial of issues relevant to Centri-Spray’s affirmative defense of laches and estoppel. MGA had claimed that two products of the defendant, its Rudlaff and Plumridge design mechanical accumulators 1 , infringe its U.S. Patent No. 3,570,656 (“’656”). Centri-Spray moved for summary judgment on that basis, and the court found that the plaintiff’s claim ydth regard to the Rudlaff based products was barred by laches and estoppel. The court found with regard to the claim against the Plumridge device that a material issue of fact was in dispute and that summary judgment was, accordingly, unwarranted. In particular, the court held that the defendant could not “tack” onto the laches period established with regard to the Rudlaff claim unless it was shown that the nature of the infringing activity was substantially similar in the Plumridge device. 2 Since it was unclear whether the nature of Centri-Spray’s conduct had substantially changed, the court denied that part of defendant’s motion for summary judgment.

As the court previously noted, laches and estoppel are distinct concepts in patent law. Laches arises from an unreasonable delay by the patentee in enforcing its rights that has materially prejudiced the alleged infringer. Watkins v. Northwestern Ohio Tractor Pullers, 630 F.2d 1155 (6th Cir.1980). Material prejudice to the 4efendant is presumed if there is an unexcused six-year delay in filing suit. Id. at 1159. A finding of laches works to prevent the. plaintiff from recovering any damages for infringement that occur prior to the filing of the suit. If estoppel is established, the plaintiff may not obtain prospective relief. Id. at 1159-60. To show estop-pel, the defendant must first establish lach-es and must additionally show that the patentee had made representations which indicated that it was abandoning the claim or which indicated that the defendant could “believe that its business would be unmolested.” TWM Mfg. Co., Inc. v. Dura Corp., 592 F.2d 346, 350 (6th Cir.1979). A finding of estoppel, since it presupposes laches, effectively bars the patentee’s entire claim for infringement. In this case, Centri-Spray has put forth no evidence which would independently establish laches and estoppel with respect to plaintiff’s Plumridge based claims. Thus, to make out the affirmative defense with respect to this claim, it was required to show that the nature of its alleged infringing activity had not changed with the introduction of the Plumridge model conveyor. Watkins, supra; Celotex Corp. v. Jacuzzi Whirlpool Bath, Inc., 211 U.S.P.Q. 232 (N.D.Ohio 1980); Nordson Corp. v. Graco, Inc., 187 U.S.P.Q. 119 (N.D.Ohio 1975); Reiser v. J. Wiss & Sons Co., 173 U.S.P.Q. 594, 340 F.Supp. 41 (1972). Two questions are raised: firstly, which aspect of the Rudlaff device plaintiff originally alleged to be infringing, and, secondly, whether this aspect changed in the Plumridge device.

The first question is made difficult by the fact that the communications between the parties in 1969-1970 found to establish the laches and estoppel defenses with regard to the Rudlaff-based claims were general allegations of infringement of the soon-to-be issued patent. Defendant’s request that MGA’s predecessor in interest specify the infringement claims went unanswered. The issue was developed somewhat in the course of communications between MGA and Centri-Spray in the late seventies. In his letter of October 2, 1978, MGA counsel indicated his belief that the Rudlaff device, in particular one configuration of it installed for the Pontiac division of General Motors, infringed specific claims *613 of the ’656 patent. After consulting Cen-tri-Spray’s designs, the list of allegedly infringed claims was revised. Laches and estoppel were not found with regard to these specific allegations; however, the court has held that the defendant could justifiably rely on the earlier generalized claims of infringement. When MGA instituted suit in 1983, the allegations of infringement were similarly unspecified. In the most recent pretrial order, MGA indicates that both devices infringe “at least” Claim 13 of the patent in suit. Almost by default, then, the laches and estoppel issue still left to be decided centers around Claim 13 3 and the accumulation control feature of the device which it describes.

Since the plaintiff alleges that both devices infringe the same claim of the patent, the defendant takes the position that the nature of the alleged infringement is the same as a matter of law. While Centri-Spray acknowledges numerous physical differences between the devices, it argues that these may only alter the method of proof of the alleged infringement but not its nature. The defendant bases its argument on the structure of the patent law. The scope of a patent holder’s monopoly right are defined and limited by the claims of the patent. Aro Manufacturing Co. v. Convertible Top Co., 365 U.S. 336, 81 S.Ct. 599, 5 L.Ed.2d 592 (1961). Additionally, the plaintiff may only recover for infringement if it is able to show the presence of each element of the patent claim asserted to be infringed (or its substantial equivalent) in the suspect device. Lemelson v. United States, 752 F.2d 1538 (Fed.Cir.1985). Infringement is, as a matter of law, only determined with reference to particular claims of the patent. From this concise statement of the law, the defendant concludes that the infringement has not changed unless the plaintiff shows that some other claim is infringed by the Plum-ridge device. Stripped to its bare bones, defendant’s assertion is that since plaintiff contends that both Rudlaff and Plumridge, which is a modification of Rudlaff, infringe Claim 13, ipso facto any alleged Plumridge infringement is absolved by virtue of the Court’s ruling that laches and estoppel preclude the advancement of plaintiff’s infringement claim against Rudlaff.

While the defendant’s theory offers a clear path through the thicket of the laches and estoppel issue raised in this case, the court declines to adopt it. The defendant has not cited any decision which embraces its position. The view is not espoused in the authority the court relied on for its prior decision that the defendant could only “tack” onto the laches clock established with regard to the Rudlaff design if the character of the allegedly infringing conduct was substantially similar in the Plum-ridge device.

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699 F. Supp. 610, 7 U.S.P.Q. 2d (BNA) 1861, 1987 U.S. Dist. LEXIS 14380, 1987 WL 49224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mga-inc-v-centri-spray-corp-mied-1987.