On-Line Technologies, Inc. v. Perkin-Elmer Corp.

253 F. Supp. 2d 313, 2003 U.S. Dist. LEXIS 5161, 2003 WL 1730680
CourtDistrict Court, D. Connecticut
DecidedMarch 31, 2003
Docket3:99CV2146(JBA)
StatusPublished
Cited by6 cases

This text of 253 F. Supp. 2d 313 (On-Line Technologies, Inc. v. Perkin-Elmer Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
On-Line Technologies, Inc. v. Perkin-Elmer Corp., 253 F. Supp. 2d 313, 2003 U.S. Dist. LEXIS 5161, 2003 WL 1730680 (D. Conn. 2003).

Opinion

Ruling on Motions for Summary Judgment [Doc. 160, 164 & 169]

ARTERTON, District Judge.

On-Line Technologies (“OLT”) asserts that defendants misappropriated trade secrets during a series of visits to OLT’s laboratory in 1994 and designed a product that infringes one of its patents. The patent infringement claim relates to defendants’ gas cell, and the state law trade secret misappropriation and associated claims (fraud, breach of contract, and unfair trade practices) are based on OLT’s allegation that its trade secrets were used in the development of two instruments designed and/or manufactured by defendants (the Spectrum One and the MCS100E). For the reasons set out below, defendants’ motions for summary judgment on all claims in the Third Amended Complaint are granted.

I. Background 1

OLT, a small company that survived over the years primarily on government grants, planned to grow its business by entering into strategic alliances with larger, more experienced companies. OLT envisioned supplying its core technology, which it claims is superior to other technology available in the marketplace, to companies with established marketing and manufacturing cápabilitiés. To that end, OLT arid the defendants explored a possible licensing agreement, but after a series of visits to OLT’s laboratory in 1994, defendants refused to license OLT’s technology and the prospect of any planned collaboration between the companies ended.

While the technology at issue has expanded, OLT’s theory of this case has remained the same: that in licensing negotiations with the defendants, it opened its laboratory doors to scientists associated with the Perkin Elmer entities in a series of visits in 1994, giving the scientists free reign (after executing a non-disclosure agreement) to learn its trade secrets, and that even though OLT met or exceeded defendants’ “performance criteria” for the efficacy of OLT’s technology required for a licensing agreement, defendants refused to license OLT’s technology, but instead un *316 lawfully used what they learned from OLT in the development of their own products.

OLT points, in particular, to three occurrences: (1) defendants’ assertion, in late 1994, that a satisfactory agreement could not be reached because OLT’s technology was not up to par, even though internal documents and a subsequent letter from one of defendants’ scientists show that defendants believed OLT’s product was “a winner” 2 ; (2) defendants’ failure to return OLT’s technical documents in its possession related to OLT’s technology, despite representation that it had returned all documents; and (3) an email from Dr. Wolfgang Berkhahn, associated with the defendants, in which Berkhahn claims that he copied OLT’s technology in the design of defendants’ gas cell. 3

II. Standard

Under Fed.R.Civ.P. 56(c), summary judgment is proper “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.”

In moving for summary judgment against a party who will bear the ultimate burden of proof at trial, the movant’s burden of establishing that there is no genuine issue of material fact in dispute will be satisfied if the movant can point to an absence of evidence to support an essential element of the non-moving party’s claim. Celotex Corp. v. Catrett, 477 U.S. 317, 322-323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Parker v. Sony Pictures Entm’t, Inc., 260 F.3d 100, 111 (2d Cir.2001) (“A defendant need not prove a negative when it moves for summary judgment on an issue that the plaintiff must prove at trial. It need only point to an absence of proof on the plaintiffs part, and, at that point, plaintiff must ‘designate specific facts showing that there is a genuine issue for trial.’ ”) (quoting Celotex, 477 U.S. at 324, 106 S.Ct. 2548); Gallo v. Prudential Residential Servs., Ltd. P’shp., 22 F.3d 1219, 1223-1224 (2d Cir.1994) (“the moving party may obtain summary judgment by showing that little or no evidence may be found in support of the nonmoving party’s case”) (citations omitted).

The non-moving party, in order to defeat summary judgment, must then come forward with evidence that would be sufficient to support a jury verdict in its favor. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986) (“there is no issue for trial unless there is sufficient evidence in the record favoring the nonmoving party for a jury to return a verdict for that party”); Matsu *317 shita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (“Where the record taken as a whole could not lead a rational trier of fact to find for the nonmoving party, there is no genuine issue for trial.”) (citation and internal quotation omitted). In making this determination, the Court draws all reasonable inferences in the light most favorable to the party opposing the motion. Id. However, a party opposing summary judgment “may not rest upon the mere allegations or denials of the adverse party’s pleading,” Fed.R.Civ.P. 56(e), and “some metaphysical doubt as to the material facts” is insufficient. Matsushita Elec., 475 U.S. at 586, 106 S.Ct. 1348 (citations omitted).

III. Patent Claims

OLT holds a patent (“the ’143 patent”) 4 on a particular variation of the White cell (“Folded Path Optical Analysis Gas Cell”), and claims that defendants manufacture a product that infringes, both literally and under the doctrine of equivalents, the ’143 patent.

A. Background

The White cell, first described in a 1942 article by John White, 5 is essentially a vessel with light entrance and exit openings that is used to test samples of gas by measuring the optical absorption of the gas sample trapped in the cell. Gas is captured in the cell, and when fight is directed into the vessel, the light bounces off mirrors located on either end, and is analyzed upon exiting the cell.

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Bluebook (online)
253 F. Supp. 2d 313, 2003 U.S. Dist. LEXIS 5161, 2003 WL 1730680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/on-line-technologies-inc-v-perkin-elmer-corp-ctd-2003.