Mimedx Grp., Inc. v. Tissue Transplant Tech., Ltd.

354 F. Supp. 3d 742
CourtDistrict Court, W.D. Texas
DecidedDecember 11, 2018
DocketCivil Case No. 5:14-cv-719 (RCL)
StatusPublished
Cited by1 cases

This text of 354 F. Supp. 3d 742 (Mimedx Grp., Inc. v. Tissue Transplant Tech., Ltd.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mimedx Grp., Inc. v. Tissue Transplant Tech., Ltd., 354 F. Supp. 3d 742 (W.D. Tex. 2018).

Opinion

Royce C. Lamberth, United States District Judge

I. INTRODUCTION

In this patent case, plaintiff MiMedx sued defendants Bone Bank Allografts ("Bone Bank") and Texas Human Biologies, Ltd. ("THB") for infringement of United States Patent Nos. 8,597,687 ("the '687 Patent") and 8,709,494 ("the '494 Patent"). These patents pertain to a product line of tissue grafts that are processed from human amniotic membranes derived from donated placentas. On May 2, 2017, Magistrate Judge Primomo issued a Report and Recommendation advising this Court as to the disposition of various motions filed under seal, including plaintiff's motion for summary judgment regarding the eligibility of the '494 Patent, ECF No. 108, and defendants' motion for summary judgment regarding non-infringement, ECF No. 116. On September 7, 2017, this Court adopted the analysis in Magistrate Judge Primomo's Report and Recommendation. Accordingly, this Court granted plaintiff's motion for summary judgment, and granted in part and denied in part defendants' motion for summary judgment.

Since this Court issued its Memorandum Opinion and Order, the parties have filed various additional motions. On October 4, 2017, plaintiff filed a motion for reconsideration of summary judgment regarding the validity of the '494 Patent, ECF No. 205. On October 25, 2017, defendants filed an opposed motion for entry of final judgment and dismissal of certain counterclaims, ECF No. 207. On September 19, 2018, based on a recent decision by the Patent Office, plaintiff filed a second motion for reconsideration, ECF No. 211, averring that the determination by the Patent Office stands in direct opposition to this Court's previous Opinion and Order and demonstrates error by this Court. In light of this second motion for reconsideration, this Court ordered on September 27, 2018, ECF No. 212, that plaintiff's prior motion for reconsideration [ECF No. 205] be denied without prejudice, and that this Court would consider the parties' positions with respect to that prior motion along with the new arguments made by the parties upon conclusion of the briefing for the second motion. The Court in its September 27, 2018 Order, ECF No. 212, also denied without prejudice defendants' motion for entry of final judgment and dismissal of certain counterclaims [ECF No. 207], stating that it will determine whether to enter final judgment upon adjudication of the second motion for reconsideration.

*745After consideration of these submissions, and in light of the entire record and applicable law, this Court will uphold its prior grant of defendants' motion for summary judgment concerning the invalidity of the '494 Patent on the question of whether the patent requires the substantial removal of the spongy layer. However, this Court is revisiting its Opinion and Order and denying defendants' motion for summary judgment concerning invalidity of the '494 patent on the question of whether Vishwakarma inherently disclosed retention of the epithelial layer. As such, defendants' motion for entry of final judgment and dismissal of certain counterclaims is denied.

II. BACKGROUND

This case involves claims for infringement of the '687 Patent and the '494 Patent under the patent laws of the United States, 35 U.S.C. §§ 100, et. seq. Am. Compl. 1, ECF No. 17. Plaintiff MiMedx is a corporation that develops bio-medical products from placental tissues. Relevant to this case, MiMedx manufactures and markets "EpiFix" and "AmnioFix," two tissue grafts processed from the membranes of human placenta. The Patents-in-Suit cover placental tissue-based products: the '687 Patent is entitled "Methods for Determining the Orientation of a Tissue Graft," and the '494 Patent is entitled "Placental Tissue Grafts." The '687 Patent was filed on August 7, 2013, and the United States Patent and Trademark Office ("USPTO") issued the '687 Patent on December 3, 2013. The '494 Patent was filed on July 30, 2013, and the USPTO issued the '494 Patent on April 29, 2014.

On May 16, 2014, MiMedx filed suit asserting infringement on the Patents-in-Suit. Orig. Compl. 1. The original venue was the Austin Division of the Western District of Texas, but the case was transferred to the San Antonio Division in the interests of justice under 28 U.S.C. § 1404(a). ECF No. 24. In its amended complaint, MiMedx alleged that THB and Bone Bank process and prepare a line of products known as "SteriShield I," "SteriShield II," "Cygnus," and "Cygnus Solo," which are tissue graft products that infringe on Claims 1,3,4,6, and 7 of the '687 Patent and Claim 9 of the '494 Patent. Am. Compl. 1, 6. On December 1, 2015, the defendants filed a petition for Inter Partes Review ("IPR") by the United States Patent Trials and Appeals Board ("PTAB") concerning the claims at issue here.1 The PTAB denied IPR regarding the '494 Patent but granted IPR regarding the '687 Patent. On July 7, 2016, the PTAB invalidated the '687 Patent pursuant to 35 U.S.C. § 103(a), finding that Claims 1-7 were obvious in light of prior art. Tissue Transplant Tech., Ltd. v. MiMedx Group, Inc. , Case IPR 2015-00420, Patent 8,597,687 B2, 2016 WL 3648420, at *27-28 (Patent Tr. & App. Bd. July 7, 2016). As such, the validity of the '687 Patent is no longer before the Court.

The instant motions concern only the validity of the '494 Patent with regard to Claim 9. In September 2016, the parties filed motions for summary judgment regarding the eligibility of Claim 9 of the '494 Patent. Pl.'s Mot. 1, ECF No. 108; Defs.' Mot. 1, ECF No. 116. Claim 9, in its entirety, reads:

A dehydrated, laminated, placental tissue graft which is a laminate comprising two or more separated and washed layers which layers are selected from amnion and/or chorion wherein the layers are directly laminated to each other *746and at least one of said layers is an amnion layer which retains an epithelial cellular layer.

ECF No. 96 (emphasis added). Magistrate Judge Primomo issued a Report and Recommendation advising this Court as to the disposition of those motions. This Court adopted the Magistrate Judge's Report and Recommendation, for reasons detailed more fully in this Court's Memorandum Opinion, ECF No. 200. Relevant to the instant motions, however, the Court adopted two of Magistrate Judge Primomo's determinations. First, the Court found that Magistrate Judge Primomo did not err in construing the terms of Claim 9 not to include a limitation requiring the removal of the spongy tissue.

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Bluebook (online)
354 F. Supp. 3d 742, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mimedx-grp-inc-v-tissue-transplant-tech-ltd-txwd-2018.