Optigen, LLC v. International Genetics, Inc.

777 F. Supp. 2d 390, 2011 U.S. Dist. LEXIS 23375, 2011 WL 841506
CourtDistrict Court, N.D. New York
DecidedMarch 8, 2011
Docket6:09-mj-00006
StatusPublished
Cited by2 cases

This text of 777 F. Supp. 2d 390 (Optigen, LLC v. International Genetics, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Optigen, LLC v. International Genetics, Inc., 777 F. Supp. 2d 390, 2011 U.S. Dist. LEXIS 23375, 2011 WL 841506 (N.D.N.Y. 2011).

Opinion

MEMORANDUM-DECISION and ORDER

GLENN T. SUDDABY, District Judge.

Currently before the Court in this patent infringement action filed by Optigen, LLC (“Plaintiff’), are the following three motions: (1) Plaintiffs motion to dismiss certain of the counterclaims and to strike certain of the affirmative defenses of International Genetics, Genetic Fulfillment USA, Pinpoint DNA Technologies and Richard Dobbins (“Defendants”) for failure to state a claim pursuant to Fed.R.Civ.P. 12(b)(6) (Dkt. No. 13); (2) a motion for summary judgment filed by Defendant International Genetics (“InGen”) (Dkt. No. 116); and (3) Plaintiffs cross-motion to amend its Complaint (Dkt. No. 162, 166). For the reasons set forth below, Plaintiffs motion to dismiss is granted; Defendant InGen’s motion for summary judgment is granted in part and denied in part; and Plaintiffs motion to amend is granted.

I. RELEVANT BACKGROUND

A. Plaintiffs Claims

Generally, Plaintiffs Complaint alleges as follows. (See generally Dkt. No. 1 [Plf.’s Compl.].)

Plaintiff is in the business of providing DNA-based diagnostic services to test for inherited diseases in dogs. On September 8, 1998, “United States Patent No. 5,804,-388, entitled ‘CHROMOSOME 9 AND PROGRESSIVE ROD-CONE DEGENERATION DISEASE GENETIC MARKERS AND ASSAYS’ (the “'388 patent”), [was] issued.” “Cornell Research Foundation, Inc. is the assignee of the '388 patent, [and Plaintiff] is the exclusive licensee of the '388 patent.” On December 25, 2007, “United States Patent No. 7,312,037, entitled ‘IDENTIFICATION OF THE GENE AND MUTATION RESPONSIBLE FOR PROGRESSIVE ROD-CONE DEGENERATION IN DOG AND A METHOD FOR TESTING SAME’ (the “'037 patent”), [was] issued.” “Cornell Research Foundation, Inc. is the assignee of the '037 patent, [and Plaintiff] is the exclusive licensee of the '037 patent.” The 388 patent and 037 patents relate to identifying whether a dog is a carrier of Progressive Rod-Cone Disease (“PRCD”), is predisposed to PRCD, or is genetically normal. 1

In 2006, Dobbins founded PinPoint, which offered a service called “Pawsitive I.D.” for the DNA testing of dogs and cats. “When Pawsitive I.D. was purchased by a customer, the customer was sent a kit that was used to collect a tissue sample[, which would] ... then [be] mailed ... back to PinPoint for analysis.” “In January 2008, [Plaintiff] notified PinPoint and Dobbins that their activity in selling, offering to sell, making and using genetic tests for PRCD by means of the Pawsitive I.D. testing kit constituted infringement of the *394 '388 and '037 patents.” “By April 15, 2008, PinPoint was no longer offering the PRCD test.”

At some point in 2008, “InGen was established in ... Freeport, Bahamas” by Dobbins. At approximately that time, “In-Gen purchased assets from PinPoint!,] including the Pawsitive I.D. product and trademark, database, and website domain names.” Furthermore, “Dobbins prepared the content of InGen’s website.”

“The Pawsitive I.D. website (www. pawsitiveid.net) directs visitors to InGen’s website (www.ingen.bs).” “The InGen website states that ‘InGen now offers the test for ... [ ]PRCD! ] that PinPoint was forced to withdraw in April 2008 due to patent issues.... InGen does not have these issues and has recommended the testing for this eye disease.’ ” “On the InGen website, there is a question and answer column for InGen’s customers!, which] includes” statements acknowledging that InGen’s services would amount to patent infringement if offered in the United States, Canada and/or European Union. 2 “InGen offers the Pawsitive I.D. testing service (including the PRCD test) for purchase through its website, including to customers in the United States.” j‘In-Gen also advertises the Pawsitive I.D. testing service (including the PRCD test) for sale within the United States.” “InGen has sold the Pawsitive I.D. testing service (including the PRCD test) to customers in the United States.”

“InGen contracts with Genetic Fulfillment as a shipping contractor to fill the orders placed with InGen.” “When a customer places an order through InGen’s website, Genetic Fulfillment ships the kit to the customer from Marietta, Georgia.” “Once the customer collects the sample from the dog or cat, the customer ships the sample to Genetic Fulfillment at a post office box in Atlanta, Georgia!, and] Genetic Fulfillment then forwards the sample to InGen in The Bahamas for performance of tests that infringe the '388 and '037 patents.”

Based on these factual allegations, Plaintiffs Complaint asserts the following five claims against Defendants: (1) patent infringement and inducing infringement under Sections 271(a), 271(b) and 271(f) of the United States Patent Act against Defendants Pinpoint DNA Technologies (“Pinpoint”) and Richard Dobbins (“Dobbins”); (2) patent infringement and inducing infringement under Sections 271(a), 271(b) and 271(f) of the United States Patent Act against Defendants InGen and Dobbins; (3) inducing infringement under Section 271(b) of the United States Patent Act against Defendant Genetic Fulfillment USA (“Genetic”); (4) false advertising under the Lanham Act against Defendants InGen and Dobbins; and (5) unfair competition against Defendants InGen, Dobbins and Pinpoint. {See generally Dkt. No. 1 [Plf.’s Compl.].) 3

*395 B. Undisputed Material Facts

The following is a general summary of material facts that are undisputed by the parties. (Compare Dkt. No. 116, Attach. 3 [Defs.’ Rule 7.1 Statement] with Dkt. No. 127 [Plf.’s Rule 7.1 Response] and Dkt. No. 162, Attach. 14 [Plf.’s Suppl. Rule 7.1 Response].)

Richard B. Dobbins is the Chief Executive Director of InGen, which is a Bahamian corporation with an address of The Bloneva Building, Freeport, The Bahamas. InGen offers diagnostic services to test for genetic diseases in dogs, including the testing for PRCD. InGen was established in 2008, in direct response to Plaintiffs allegation of patent infringement, in its cease- and-desist letter, and for the sole purpose of offering patent-protected genetic tests from an offshore country, in which the patents-in-suit were not registered.

InGen operates out of an office at 1395 Cobb Parkway, N.W., Marietta, Georgia, where shipments are received and sent. InGen’s phone number begins with a 678 area code, which is the area code for the Atlanta area. Sherrill Williams is the Operations Manager and sole employee of InGen. She works exclusively out of the Marietta office, and has never traveled to the Bahamas. Ms. Williams was a PinPoint employee until December 31, 2009.

InGen has no, and has never had any, employees or operations in the Bahamas. Mr. Dobbs conducts most of his supervision of InGen’s business from Georgia and infrequently goes to the Bahamas.

InGen maintains a website accessible to customers located in the United States. The website allows anyone viewing it, including those located in the United States, to order InGen’s genetic testing products.

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777 F. Supp. 2d 390, 2011 U.S. Dist. LEXIS 23375, 2011 WL 841506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/optigen-llc-v-international-genetics-inc-nynd-2011.