Motorola, Inc. v. CBS, INC.

672 F. Supp. 1033, 1986 WL 6076, 1986 U.S. Dist. LEXIS 25501
CourtDistrict Court, N.D. Illinois
DecidedMay 14, 1986
Docket84 C 3427
StatusPublished
Cited by3 cases

This text of 672 F. Supp. 1033 (Motorola, Inc. v. CBS, INC.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Motorola, Inc. v. CBS, INC., 672 F. Supp. 1033, 1986 WL 6076, 1986 U.S. Dist. LEXIS 25501 (N.D. Ill. 1986).

Opinion

MEMORANDUM OPINION

GRADY, Chief Judge.

This patent infringement case is before us on the motion of defendant CBS, Inc. (“CBS”) for summary judgment. For the reasons given below, the motion is granted in part and denied in part.

FACTS

The facts are undisputed. The patent at issue, U.S. Patent No. 3,546,355 (“the “Maynard patent”) was issued on December 8, 1970, to Motorola, the assignee of the inventor Maynard. Oversimplified, the Maynard patent claims electronic circuitry which automatically controls organ music.

On July 27, 1972, the United States Patent and Trademark Office (“Patent Office”) declared an interference proceeding between the Maynard patent and a reissue application for U.S. Patent No. 3,548,066 by Alfred B. Freeman, not a party to this litigation. On April 11, 1975, the Board of Patent Interferences (“Patent Board”) held that the Maynard patent was prior to Freeman’s additional claims to his patent. On May 3, 1980, Judge Roszkowski of this court affirmed the holding of the Patent Board. Freeman v. Motorola, Inc., No. 75 C 1644, Memorandum op. (N.D.Ill. May 3, 1980).

In 1978, Donald J. Lisa, now a vice president of Motorola, began “licensing and enforcing the Maynard patent.” Lisa Affid. at 1. He did not begin a detailed infringement study, however, until the fall of 1980. Id. at 1, 2.

Licensing negotiations between Motorola and CBS began in January 1981 and appear to have been terminated in September 1982. On April 20, 1984, Motorola brought this action, alleging that CBS has infringed two claims of the patent since the date the Maynard patent issued. CBS filed this motion for summary judgment, claiming that Motorola’s action is barred by laches and estoppel. The issue has been fully briefed by the parties.

DISCUSSION

Laches and estoppel are equitable defenses whose appropriateness must be decided upon the facts of each particular case. Advanced Hydraulics, Inc. v. Otis Elevator Co., 525 F.2d 477, 479 (7th Cir.), cert. denied, 423 U.S. 869, 96 S.Ct. 132, 46 L.Ed.2d 99 (1975); Dana Corp. v. American Precision Co., 221 U.S.P.Q. 1098,1102 (N.D.Ill.1984). Though similar concepts, they are distinct defenses. Laches forecloses retroactive relief; estoppel bars prospective relief. See Naxon Telesign Corp. v. Bunker Ramo Corp., 517 F.Supp. 804, 807 (N.D.Ill.1981), aff'd, 686 F.2d 1258, 1261 *1035 (7th Cir.1982); Advanced Hydraulics, 525 F.2d at 479. Thus, under laches, if the patentee unduly delays bringing its claim to court, it is barred from recovering damages for infringements prior to the filing of the suit. A.C. Aukerman Co. v. Miller Formless Co., Inc., 693 F.2d 697, 699 (7th Cir.1982). Under estoppel, if the patentee additionally takes affirmative action to induce the belief that it has abandoned its claims against the alleged infringer, then it is also barred from obtaining an injunction or damages for post-filing infringements. Id. at 701.

Laches

For a claim to be barred by laches, the patentee’s delay must be unreasonable, inexcusable, and materially prejudicial to the alleged infringer. Id. at 699; Leinoff v. Louis Milona & Sons, Inc., 726 F.2d 734, 220 U.S.P.Q. 845 (Fed.Cir.1984). However, it is now well established in this circuit that a delay of over six years in asserting patent rights raises a presumption that the delay is both unreasonable and materially prejudicial to the defendant. Aukerman, 693 F.2d at 699; Naxon, 686 F.2d at 1263; Advanced Hydraulics, 525 F.2d at 479; Dana, 221 U.S.P.Q. at 1102; Technitrol, Inc. v. Memorex Corp., 376 F.Supp. 828, 831 (N.D.Ill.1974), aff'd. sub nom Technitrol, Inc. v. NCR Corp., 513 F.2d 1130 (7th Cir.1975). 1 Once the defendant has proved such delay, the burden shifts to the patentee to rebut the presumption. Aukerman, 693 F.2d at 699; Dana, 221 U.S.P.Q. at 1102.

Thus, the plaintiff will be barred from seeking past damages by laches unless it can (1) rebut the presumption of prejudice; (2) rebut the presumption of unreasonable delay by showing a good excuse for the delay; or (3) show that the infringer has engaged in particularly egregious conduct which would change the equities significantly in plaintiff's favor. Naxon, 686 F.2d at 1263 n. 7; Dana, 221 U.S.P.Q. at 1102.

The commencement date of laches delay is the date on which the patentee had knowledge of the defendant’s allegedly infringing activities or, in the exercise of reasonable diligence, should have known of defendant’s activities. Id. Motorola contends that it did not have knowledge of the alleged infringement by CBS until it completed its study sometime in 1981, and that the period of delay, if any, should not begin until then. We disagree. The evidence indicates that Motorola had knowledge of possible infringement since July 14, 1975. On that date, Richard Harasek, then manager of Motorola’s Scalatron Division, stated in an interoffice memorandum:

Motorola, Inc. has a patent, No. 3546355, in Fred Maynard’s name____ This patent covers virtually the entire consumer organ industry on the automatic accompaniment section____ Number of infringing companies [are] 21-25, we currently have 19 identified with model numbers.

On the cover page to this memorandum, Mr. Harasek states: “We will be working with Vince Rauner [Vice President for Patents, Trademarks, and Licensing] to determine the best plan of action in regards to the known infringement cases.” CBS’ Memorandum in Support, Appendix E.

Motorola thus had sufficient knowledge of potential infringement to inform alleged infringers of its intention to enforce its patent rights as early as July 1975. This date is eight years and nine months prior to the filing of suit against CBS and is suffi *1036 cient to raise the presumptions of unreasonableness and prejudice.

In attempting to rebut the presumption, Motorola argues that the delay between 1975 and 1980 was not unreasonable because the Maynard patent was the subject of a patent interference proceeding that was not finally resolved until 1980. Motorola apparently relies on the principle that delay in suing an infringer is not unreasonable when the party asserting the patent is engaged in other litigation against other infringers.

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Bluebook (online)
672 F. Supp. 1033, 1986 WL 6076, 1986 U.S. Dist. LEXIS 25501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/motorola-inc-v-cbs-inc-ilnd-1986.