National Graphics, Inc. v. Brax Ltd.

151 F. Supp. 3d 903, 2015 U.S. Dist. LEXIS 170698, 2015 WL 9413119
CourtDistrict Court, E.D. Wisconsin
DecidedDecember 22, 2015
DocketCase No. 12-C-1119
StatusPublished

This text of 151 F. Supp. 3d 903 (National Graphics, Inc. v. Brax Ltd.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Graphics, Inc. v. Brax Ltd., 151 F. Supp. 3d 903, 2015 U.S. Dist. LEXIS 170698, 2015 WL 9413119 (E.D. Wis. 2015).

Opinion

DECISION AND ORDER

William C. Griesbach, Chief Judge, United States District Court

The parties in this infringement 'action have filed cross motions for summary judgment. The Plaintiff seeks summary judgment as to both validity and infringement, while the Defendants’ motion limits itself to validity. This court previously addressed the patents in ah April 24, 2014 Decision and Order addressing claim construction as well as validity and infringement of some of the claims. For the reasons given below, the motions for summary judgment will be denied in most respects.

I. Analysis

Summary judgment is proper “if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(c). Summary judgment of infringement or non-infringement can only be granted if, after viewing the alleged facts in the light most favorable to the non-movant, there is no genuine issue whether the accused device is encompassed by the claims. Fed. R. Civ. P. 56(c); Pitney Bowes, Inc. v. Hewlett-Packard Co., 182 F.3d 1298, 1304 (Fed.Cir.1999). As for validity, because patents are presumed valid, “a moving party seeking to invalidate a patent at summary judgment must submit such clear and convincing evidence of facts underlying invalidity that no reasonably jury could find, otherwise.” SRAM Corp. v. AD-II Eng’g, Inc., 465 F.3d 1351, 1357 (Fed,Cir.2006).

II. Corresponding Patents

A. Validity

As relevant here, the ’185 patent teaches a .method of producing a corresponding lenticular image comprising the steps of:

providing an output device in connection with a computer; receiving into the computer memory an interlaced image file; converting the interlaced image file unto an output having an output resolution; varying the resolution -of the output to define a varied output resolution; and creating a corresponding lenticular image using the output* at the varied output-resolution; wherein the varying is accomplished using a Mainscale Scan Adjustment (“MSA”) clock. - -

(ECF No. 156-5.)

“While the ultimate question, of patent validity is one of law, there are a number of underlying inquiries that raise questions of fact. In addition to obviousness, these include anticipation, [and] prior public use or sale.” Markman v. Westview Instruments, Inc., 52 F.3d 967, 989 n. 1 (Fed.Cir.1995) aff'd, 517 U.S. 370, 116 S.Ct. 1384, 134 L.Ed.2d 577 (1996).

[907]*907The Defendants argue that claim 1 of the ’185 patent is invalid as obvious and / or anticipated by prior art. .The Defendants’ expert, David Roberts, reviewed the patents and the prior art and concluded that correspondence between the resolution of the interlaced image and the pitch of the lenticular lens was well known in the art, and it was also well known that variable resolution output devices could produce correspondence. In addition, he opined that NGI’s previous use of something called a Hell Scanner, and its more recent use of a Kodak Trendsetter, performed essentially the same function as its patented technology did. In short, he believes it would have been obvious to one skilled in the art to vary the resolution of variable output devices to produce a corresponding lenticular image, and in fact that is exactly what NGI had been doing itself for years prior to its patent application.

1. Prior Use

Before reaching the merits of the dispute, I.must.address NGI’s arguments.as to why the merits of the Defendants’ prior use defense should not even be reached.

a. Summary Judgment Already Granted

NGI first argues that this court already granted summary judgment on the prior use defense, concluding that the Defendants had failed to produce sufficient evidence to allow a jury to find in their favor on it. Accordingly, it argues that the present round of summary judgment briefing was not an opportunity to re-litigate that issue. The Defendants respond, however, that the. previous summary judgment motion was filed by NGI at a much earlier stage of discovery. They cannot be faulted, they argue, for the fact that the evidence was not fully developed at that time.

I am satisfied that, given the somewhat unusual circumstances of this case, -the better practice is to reach the merits rather-than become bogged down in procedural details, particularly when no suggestion of prejudice has been raised; The fact is that the evidence upon which the Defendants now rely had not been fully available in 2014, and the previous ruling came in the context of claim construction -and partial summary judgment motion filed -by NGI, a motion that did not give the Defendants a full opportunity to advance their defenses.

b. Public Use of Trendsetter

Under 35 U.S.G. § 102(b), “[a] -person shall be entitled to a patent- unless ... the invention was in public use or. on sale in this country,'more than one year.prior to the date of the application for patent in the United States....” 35 U.S.C. § 102(b).

-We look,to the totality of the circumstances when evaluating whether there has been a'public use within the meaning of section 102(b). The totality of the - circumstances -is considered in eónjunction with the-!policies- underlying -the public use bar,;-The circumstances may include: the nature- of the-activity that occurred in - public; the public access to and-knowledge of the public use; whether there was any confidentiality obligation imposed on persons who observed the use; whether persons other than the inventor performed the testing; , the number of tests; the length of the test period'in relation to tests of similar devices; and whether the inventor received payment for the testing.

Netscape Commc’ns Corp. v. Konrad, 295 F.3d. 1315, 1320 (Fed.Cir.2002) ‘(citations omitted).

, NGI argues that the Creo/Kodak Trendsetter was not used “publicly” because -the third party who used it (a company called Travel Tags) was using it in a confidential and propriety fashion, not shared with anyone outside of that com[908]*908pany except under a non-disclosure agreement. The Defendants- respond that although confidentiality might .be an exception to the “on sale” bar on patentability, 35 U.S.C.A. § 102(a)(1), it is not an exception to the public use bar, which is the defense the Defendants are relying on. That is, even if the third party took steps to keep its use of the Trendsetter private, that would not render that use a non-public use.

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Bluebook (online)
151 F. Supp. 3d 903, 2015 U.S. Dist. LEXIS 170698, 2015 WL 9413119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-graphics-inc-v-brax-ltd-wied-2015.