Odetics, Inc. v. Storage Technology Corp.

14 F. Supp. 2d 807, 1998 WL 439378
District Court, E.D. Virginia·Decided July 31, 1998·No. Civ.A. 95-881-A·Published·Cited by 4 cases

Opinion

MEMORANDUM OPINION

ELLIS, District Judge.

This patent infringement action is yet again before the Court following a jury verdict finding wilful literal infringement and awarding $70.6 million in damages. 1 Following the verdict, defendants filed a motion for judgment as a matter of law on the issue of infringement; this motion was denied. Since then, the Federal Circuit issued its decision in Chiuminatta Concrete Concepts, Inc. v. Cardinal Industries, Inc., 145 F.3d 1303 *809 (Fed.Cir.1998), reh’g en banc denied (Fed. Cir. July 2, 1998), which counsels reconsideration of that ruling, and indeed mandates entry of judgment as a matter of law in favor of defendants.

I

Plaintiff Odetics, Inc. is the owner of United States Letters Patent No. 4,779,151, issued on October 18, 1988. The ’151 patent teaches a system for transporting cassette tapes from a storage library to a tape player. By way of example, the preferred embodiment contains an octagonal housing (often referred to as a silo) inside of which are seven columns of tapes and one column of tape drives, or tape players. Within this housing is a robotic arm that retrieves the tapes from their storage bins and places them into the tape drives. Claims 9 and 14 of the ’151 patent, the claims-in-suit, describe a “rotary means” that (i) allows a cassette to be loaded from outside the library, for example by a human operator, and (ii) then rotates to allow the cassette to be accessed by the robotic manipulator located inside the silo. Specifically, the rotary means, as depicted in Figure 3 of the ’151 patent, consists of a set of bins to hold the cassettes, a rod around which these bins pivot, 2 and a gear that enables the bins to rotate. These rotary means components make up the bin array.

Storage Technology Corp. (“STK”) manufactures and sells certain library systems that Odetics alleged infringed the ’151 patent. STK’s systems are used to store and play computer data tapes. The accused STK systems contain pass-thru ports,” devices that connect multiple libraries or silos to each other so that tapes can be passed from one silo to another. In STK systems that include a pass-thru port, the tapes are placed in the pass-thru port in one library, and the pass-thru port then translates and rotates to deliver the tape to a second, adjacent library. The pass-thru port consists of several bins, a stem on which the bins are mounted, cam followers (or “pins”), a cam, a ball slide, and a lead screw. Odetics’s expert, Dr. McCarthy, testified that the bins, the stem, and the cam followers in the pass-thru port comprised the “bin array” in that device.

Odetics filed this patent infringement action against STK and two STK customers who use systems equipped with the pass-thru ports, Visa International and Crestar Bank. 3 The crux of Odeties’s infringement allegation was that the rotary means element of claims 9 and 14, both of which are § 112, ¶ 6 means-plus-funetion claims, 4 read on STK’s pass-thru ports. Specifically, Odetics alleged that the bin array of the pass-thru port (as defined by its expert) performed an identical function and was structurally equivalent to the bin array of the rotary means. As to structural equivalence, Odetics’s expert, Dr. McCarthy, testified that the bin array in the accused device — comprised of the bins, the stem, and the cam followers — was structurally equivalent to the bin array disclosed in the ’151 patent — comprised of the bins, the rod, and the gear. Thus, the structural analysis reduced to a comparison between the gear of the rotary means and the cam followers in the pass-thru port. 5 The jury found *810 that these components were indeed structurally equivalent. Accordingly, it concluded that STK, Visa, and Crestar literally infringed the patent, determined that a 4% running royalty rate was reasonable, and awarded Odetics $70.6 million in damages for STK’s manufacture and sale of the infringing products since June 29, 1995. The jury awarded no damages for Visa’s and Crestar’s use of the infringing devices. Finally, it found that STK, but not Visa and Crestar, wilfully infringed the patent.

Following the jury’s verdict, defendants 6 filed a motion for judgment as a matter of law (“JMOL”) and an alternative motion for a new trial on the issue of infringement. See Rules 50 and 59, Fed.R.Civ.P. These motions were originally denied. See Order, Odetics v. Storage Tech. Corp., No. 95-881 (E.D.Va. May 1, 1998). After denying the motions, the Court learned of the Federal Circuit’s decision in Chiuminatta Concrete Concepts, Inc. v. Cardinal Industries, Inc., 145 F.3d 1303 (Fed.Cir.1998), reh’g en banc denied (Fed. Cir. July 2, 1998). Because it appeared that Chiuminatta shed additional light on, and potentially counseled a contrary result in the disposition of, the JMOL motion, the Court ordered the parties to file supplemental memoranda discussing the effect of Chiumi-natta on the JMOL motion. See Order, Odetics v. Storage Tech. Corp., No. 95-881 (E.D.Va. June 8,1998). Because the parties have submitted these memoranda, and further because the issue has been argued orally, the matter is now ripe for disposition.

ll

At the threshold, Odetics asserts that the JMOL motion is proeedurally barred for two reasons. First, it claims that although STK moved for JMOL at the close of Odetics’s case, it did not renew that motion at the close of all the evidence. The general rule is that “if a motion for judgment as a matter of law was made at the end of one party’s case but not renewed at the close of all evidence, the movant is precluded from renewing that motion after the verdict is rendered.” 9 James Wm. Moore, Moore’s Federal Practice § 50.05[1], at 50-21 (3rd ed.1997). There is an exception, however, to the usual rule: A party need not renew its JMOL motion at the close of all the evidence if the Court states that renewal is unnecessary. See Singer v. Dungan, 45 F.3d 823, 829 (4th Cir.1995). In this regard, the Court stated to STK’s counsel in ruling on defendants’ JMOL motion at the close of Odetics’s case, “[Y]ou will have an opportunity to renew that motion in the event of an adverse verdict, and you’ll have an opportunity to argue it orally and in writing as well at that time.” March 25, 1998, Tr. at 139 (emphases added). Thus, it was unnecessary for STK to renew its JMOL motion at the close of all the evidence.

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Odetics, Inc. v. Storage Technology Corp., 14 F. Supp. 2d 807, 1998 WL 439378 (E.D. Va. 1998).

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