Middleton, Inc. v. Minnesota Mining & Manufacturing Co.

842 F. Supp. 2d 1133, 2012 U.S. Dist. LEXIS 95442, 2012 WL 273687
CourtDistrict Court, S.D. Iowa
DecidedJanuary 26, 2012
DocketCivil No. 4:03-CV-40493-MWB-TJS
StatusPublished

This text of 842 F. Supp. 2d 1133 (Middleton, Inc. v. Minnesota Mining & Manufacturing Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Middleton, Inc. v. Minnesota Mining & Manufacturing Co., 842 F. Supp. 2d 1133, 2012 U.S. Dist. LEXIS 95442, 2012 WL 273687 (S.D. Iowa 2012).

Opinion

MEMORANDUM OPINION AND ORDER REGARDING MIDDLETON’S MOTION FOR SUMMARY JUDGMENT THAT IT HAS STANDING TO MAINTAIN THIS ACTION

MARK W. BENNETT, District Judge.

TABLE OF CONTENTS

I. INTRODUCTION.........................................................1135

A. Procedural Background...............................................1135

B. Factual Background..................................................1137

1. Middleton’s corporate history.....................................1137

2. The '514 patent..................................................1137

3. The licensing agreements.........................................1138

II. ANALYSIS...............................................................1141

A. Legal Standards......................................................1141

B. Middleton’s Constitutional Standing Theories...........................1143

1. Standing based on the 1992 and 1996 agreements ...................1144

a. Arguments of the parties......................................1144

b. Analysis ....................................................1145

2. Standing based on the 1987 agreement.............................1147

a. Arguments of the parties......................................1147

b. Analysis ....................................................1149

III. CONCLUSION...........................................................1151

I. INTRODUCTION

The seminal case explicating federal judicial power, Marbury v. Madison, 5 U.S. (1 Cranch) 137, 2 L.Ed. 60 (1803), teaches the indelible lesson that, while “[i]t is emphatically the province and duty of the judicial department to say what the law is,” the federal courts are, nonetheless, of limited jurisdiction. Id. at 176-77, 179-80. Before me now, on plaintiff Middleton, Inc.’s Motion For Summary Judgment That It Has Standing To Maintain This Action (docket no. 221), this patent infringement case, while not as hoary as Marbury (but getting close after a nearly sixteen-year tenure in the federal courts), is a potent reminder of this court’s limited jurisdiction. As this case demonstrates, constitutional standing, no matter when it is raised — and in spite of the enormous resources expended by the parties in the last decade and a half — is an uncompromising requirement for any lawsuit in federal court.

A. Procedural Background

This case presents a long and storied procedural background. I do not recite all of its chapters in detail here but, instead, provide sufficient background to frame the motion currently before me. I quote from Chief Judge James Gritzner’s August 24, 2004, 2004 WL 1968669, Order to explain the early stages of this case:

The Plaintiff, Middleton, Inc. (“Middleton”), commenced this action against the Defendant, Minnesota Mining and Manufacturing Co. (“3M”), in the United States District Court for the Northern District of Illinois, Chicago Division, on October 17, 1996. After much litigation activity in that district, the Honorable James F. Holderman of the Northern District of Illinois transferred the action to this Court on August 29, 2003. Jurisdiction is proper pursuant to 28 U.S.C. [1136]*1136§ 1331, the federal question statute, and 28 U.S.C. § 1338(a), as this case arises under the federal patent laws, 35 U.S.C. §§ 101 et seg.
The lawsuit alleges infringement of a patent held by Middleton, specifically, U.S. Patent No. 4,944,514 (“the '514 patent”), by 3M.... 3M filed an application for reexamination and learned on July 26, 2004, that the PTO had granted the request. The pending reexamination prompted [3M’s] motion to stay, which Middleton has resisted.

(docket no. 178, p. 2.) In his August 24, 2004, Order, Chief Judge Gritzner granted 3M’s motion to stay the case pending the PTO’s reexamination of the '514 patent. Id. at 26. The PTO concluded its reexamination on September 20, 2011. Shortly thereafter, upon Middleton’s unopposed motion, Chief Judge Gritzner lifted the stay in this case on October 20, 2011 (docket no. 210). On October 26, 2011, Chief Judge Gritzner transferred this case to me, pursuant to my cross-designation in the United States District Court for the Southern District of Iowa (docket no. 217).1

On November 9, 2011, 3M’s counsel sent Middleton’s counsel a letter, asserting that Middleton does not have standing to sue 3M for infringement of the '514 patent and requesting that Middleton dismiss this case. See Middleton Appendix at 76. On November 10, 2011, the parties appeared for a scheduling conference before Chief United States Magistrate Judge Thomas J. Shields, during which the parties apprised Judge Shields of their dispute regarding Middleton’s standing and discussed briefing the issue (docket no. 219).

On November 15, 2011, Middleton filed its Motion For Summary Judgment That It Has Standing To Maintain This Action (docket no. 221), in which it presents two alternate theories of standing, each based on a series of licensing agreements. On November 30, 2011, 3M filed its Brief In Opposition To Middleton’s Standing Brief And In Support Of Dismissal Of Case For Lack of Subject Matter Jurisdiction Under Article III And Rule 12(h)(3) (docket no. 230). Middleton submitted its reply on December 6, 2011 (docket no. 232).

I heard oral arguments on these issues on January 18, 2012.2 George Summer-field (argued) and Joseph Grear of Stadheim & Grear, Chicago, and Gregory Brown of Duncan Green Brown Langeness & Eckley, Des Moines, appeared on behalf of Middleton. James Poradek (argued) and Katherine Razavi of Faegre Baker Daniels, Minneapolis, and Ross Johnson of Faegre Baker Daniels, Des Moines, appeared on behalf of 3M. The briefing on this motion was exceptional, and the oral arguments crystallized the issues with precision. The oral arguments in this case were some of the finest I have heard in my nearly eighteen-year career as a federal district court judge. The hallmark of most lawyers is that they excel at making simple things unduly complicated. It is the rare lawyer who has the uncanny ability to make the unusually complicated simple. In my view, this is the sign of a great lawyer. The advocates who argued this motion are great lawyers.

[1137]*1137 B. Factual Background

As with the procedural background, I do not attempt a complete recitation of the factual background of this case. Rather, I set forth sufficient facts, both undisputed and disputed, to put in context the parties’ arguments regarding Middleton’s pending motion for summary judgment that it has standing.

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Bluebook (online)
842 F. Supp. 2d 1133, 2012 U.S. Dist. LEXIS 95442, 2012 WL 273687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/middleton-inc-v-minnesota-mining-manufacturing-co-iasd-2012.