Norian Corp. v. Stryker Corp.

252 F. Supp. 2d 945, 2002 WL 32065827
CourtDistrict Court, N.D. California
DecidedJune 13, 2002
DocketC 01-00016 WHA
StatusPublished
Cited by3 cases

This text of 252 F. Supp. 2d 945 (Norian Corp. v. Stryker Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norian Corp. v. Stryker Corp., 252 F. Supp. 2d 945, 2002 WL 32065827 (N.D. Cal. 2002).

Opinion

ORDER DENYING MOTION FOR NEW TRIAL AND GRANTING IN PART AND DENYING IN PART MOTION FOR JUDGMENT

ALSUP, District Judge.

INTRODUCTION

As this order on post-trial motions will be the last ruling by the district court before appeal, the following procedural summary may assist the court of appeals. Although some relief is required under FRCP 50, the ultimate outcome is not changed. Judgment for defendant is still required.

PROCEDURAL HISTORY

On January 3, 2001, plaintiff Norian Corporation commenced this action against defendant Stryker Corporation, alleging that its BoneSource product infringes United States Patent Nos. 5,336,264 and 6,002,065. The ’264 patent is entitled “Situ Prepared Calcium Phosphate Composition and Method.” It is directed to methods for preparing calcium-phosphate compositions that form hydroxyapatite, a fundamental building block of human bone. The ’065 patent is entitled “Kits for Preparing Calcium Phosphate Materials.” It is directed to kits for preparing calcium-phosphate compositions. Both concern compositions for medical applications, ie., to repair bones. One alleged point of novelty was the use of a sodium-phosphate solution to achieve short setting times for the compositions.

*948 In response, Stryker alleged counterclaims as to noninfringement, invalidity and unenforceability. On the same day that Stryker filed its answer, it moved for a summary judgment of noninfringement. An order dated April 20, 2001, denied summary judgment as to Claims 1-8 of the ’264 patent but granted it as to Claims 1-10 of the ’065 patent. In particular, the order held that: (1) monetite may be a “phosphoric acid source” as that term is used in Claim 1 of the ’264 patent; and, (2) in the ’065 patent, the phrase “consisting of’ means the claimed “kit” exclusively includes the items enumerated thereunder and does not include unspecified items, like a spatula (which the BoneSouree kit had). From this point on, the ’264 patent was the only patent litigated.

There were two full rounds of extensive briefing and oral argument on the meaning of the ’264 patent — once on Stryker’s referenced motion for summary judgment and later on for the Markman hearing. A final claim-construction order was issued on October 12, 2001. Nine disputed claim phrases and terms from Claims 1, 2, 3 and 7 were construed.

On February 13, 2002, three orders on four motions for summary judgment were issued. The first order, entitled “Order Granting in Part Summary Judgment on Infringement in Plaintiffs Favor,” held that Stryker’s sale (beginning in December 1998) of both (1) its BoneSouree powder with instructions for obtaining and adding a commereially-available sodium-phosphate solution to that powder, and (2) its so-called BoneSouree Cement Kits with instructions for adding an included sodium-phosphate solution to the BoneSouree powder induced infringement of Claims 1, 7 and 8 of the ’264 patent. The order pertained only to Stryker’s own conduct, not alleged infringement by predecessors, the latter being reserved for trial.

The second order, entitled “Order on Summary Judgment re Equitable Defenses,” disposed of Stryker’s equitable-estop-pel defense. Norian’s parallel attack on laches was denied. Evidence on laches was to be received at trial, although the issue was to be decided by the Court.

The third order, entitled “Order Denying Plaintiffs Motion for Partial Summary Judgment re Extended Abstracts and Denying Defendant’s Motion for Summary Judgment,” ruled on the sufficiency of Stryker’s invalidity defenses and Stryker’s motion for summary judgment of invalidity, noninfringement and unpatentability. It held that triable issues existed on whether: (1) certain references — including the 1991 IADR Extended Abstract and the 1992 AADR Extended Abstract — advanced by Stryker were “printed publications” under § 102(a) or § 102(b); (2) certain coauthors of the 1991 IADR Extended Abstract (namely, Drs. Chow and Tagaki) were prior inventors of the subject matter of the ’264 patent under § 102(g); (3) the subject matter of the ’264 patent was previously known or used by the authors of the IADR and AADR Extended Abstracts under § 102(a); (4) the ’264 patent was anticipated under § 102(b) by United States Patent No. 33,161 (161 Brown and Chow patent); and, (5) Claim 2 of the ’264 patent was not infringed. In addition, the order held that Claim 7 of the ’264 patent did not improperly claim unpatentable subject matter in violation of Section 101. The defense of obviousness was not presented for ruling.

On March 13, 2002, an order issued eliminating Stryker’s inequitable-conduct defense. It held that the applicants’ incorrect statements to the PTO distinguishing the 161 Brown and Chow patent could not support an inequitable-conduct finding. Specifically, the 161 Brown and Chow patent was clearly before the examiner as it *949 was significantly and actively debated and twice solely relied on to disallow the pending claims.

To settle a standing question, an order filed on March 27, 2002, held that Norian had standing to assert the ’264 patent herein. It concluded that there were no triable issues concerning Pennsylvania State University’s legal title to the ’264 patent. Specifically, any factual dispute at most pertained to whether the university had a possible equitable interest in the ’264 patent. As such, Norian’s legal title and, thus, standing was not undercut.

Trial commenced on April 15, 2002, and lasted ten days (plus jury deliberations). Infringement having been established on summary judgment, at least from the date Stryker acquired BoneSource rights, what remained for the jury were the issues of willful infringement, invalidity and damages concerning Claims 1, 7 and 8 of the ’264 patent, the specific claims Norian chose to prosecute at trial. During trial, pursuant to FRCP 50, the Court granted Stryker’s motion to dismiss willful infringement and Norian’s motion to reject the laches defense.

The case went to the jury on the issues of invalidity (as to three theories) and reasonable royalty. By a special verdict returned on May 2, 2002, the jury found that: (1) Stryker had proven by clear and convincing evidence that Claims 1, 7 and 8 of the ’264 patent were anticipated by the 1991 IADR Extended Abstract; (2) Stryker had not proven by clear and convincing evidence that Claims 1, 7 and 8 were invented by Drs. Chow and Tagaki before July 23, 1992 (the filing date of the ’264 patent application); (3) Stryker had proven by clear and convincing evidence that Claims 1, 7 and 8 would have been obvious to one of ordinary skill in the art on or before July 23, 1992, in light of the T61 Brown and Chow patent or the T61 Brown and Chow patent plus United States Patent No. 5,092,888 (’888 Iwamoto patent); and (4) Norian had not carried its burden to prove up a reasonable royalty rate. The jury had been instructed to reach the last issue regardless of its verdict as to invalidity.

Norian has now filed two post-trial motions: one for judgment as a matter of law and the other for a new trial. Both are now addressed, organized by substantive trial issues, most of which issues arise under both motions.

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Bluebook (online)
252 F. Supp. 2d 945, 2002 WL 32065827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norian-corp-v-stryker-corp-cand-2002.