Oreck Holdings, LLC v. Dyson, Inc.

434 F. Supp. 2d 385, 2006 U.S. Dist. LEXIS 36709, 2006 WL 1545506
CourtDistrict Court, E.D. Louisiana
DecidedJune 7, 2006
DocketCivil Action 05-0361
StatusPublished

This text of 434 F. Supp. 2d 385 (Oreck Holdings, LLC v. Dyson, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oreck Holdings, LLC v. Dyson, Inc., 434 F. Supp. 2d 385, 2006 U.S. Dist. LEXIS 36709, 2006 WL 1545506 (E.D. La. 2006).

Opinion

ORDER AND REASONS

VANCE, District Judge.

Before the Court are the submissions of plaintiff Oreck Holdings, LLC and defendant Dyson, Inc. concerning the construction of the disputed claim terms of U.S. Patent No. 5,016,315. Also before the Court are the parties’ cross motions for summary judgment on Oreck’s patent infringement claims. For the following reasons, the Court GRANTS Dyson’s motion for summary judgment of noninfringement and DENIES Oreck’s motion for summary judgment.

I. BACKGROUND

Oreck and Dyson are well-known vacuum cleaner companies that compete in the national market. Oreck Holdings, LLC filed this action against defendant Dyson, Inc. on February 10, 2005, alleging that Dyson’s DC14 vacuum cleaner infringes Oreck’s rights in U.S. Patent No. 5,016,315 (the “ '315 patent”). The parties have briefed the disputed claim language of the '315 patent. On the basis of their respective constructions of the disputed claims, Oreck and Dyson have each moved for summary judgment on Oreck’s patent infringement claims.

A. History of the '315 Patent

The '315 patent, titled “Floor Cleaning Device with Improved Handle Grip,” generally describes an upright floor cleaner, such as an upright vacuum cleaner, with an ergonomically designed grip that is intended to reduce the amount of force required when a user moves the cleaner across the floor. See generally '315 Patent. 1 The idea for what eventually became the '315 patent was first proposed at an October 1984 meeting between Oreck personnel, including David Oreck, the company’s founder and president, and personnel of Bissell, Inc. See David Oreck Aff. ¶ 5. At that time, Oreck did not have a manufacturing facility of its own, and it did not have engineers on staff. Id. ¶ 3. Bissell manufactured all of Oreck’s vacuum cleaners on a purchase order basis. Id. During this time period, Oreck and Bissell worked together closely in the process of designing and marketing vacuum cleaners. Id.

At the October 1984 meeting, David Oreck proposed a new type of handle that would make it easier for a user to push the vacuum cleaner across the floor. Id. ¶ 5 & Ex. A.; Brebner Decl. Ex. H. On April 23, 1985, Oreck personnel and Bissell personnel again discussed this new grip design, including the possibility of patenting the design. See David Oreck Aff. Ex. C, at 1-2. David Oreck was apparently dissatisfied with the discussion at the April 23, 1985 meeting. The next day, he wrote to Bissell that the idea for the new handle belonged to Oreck, not to Bissell. See id. Ex. A; Brebner Decl. Ex. H. In this letter, David Oreck asserted that the “entire approach was [his] original idea,” that he “did not intend to abdicate [his] position of [sic] the originator of th[e] grip,” and that he “would like this patent in [his] name.” David Oreck Aff. Ex. A; Brebner Decl. Ex. H. On May 10, 1985, Bissell responded that it would apply for the patent on the new grip in its own name and that it would give Oreck the exclusive right to use any patent that ultimately issued. David Oreck Aff. Ex. B; Brebner Decl. Ex. I.

Bissell first applied for the '315 patent on November 1, 1985, as assignee of *389 named inventors Susan G. Bledsoe and Gordon W. Goodrich, both Bissell employees. The Patent and Trademark Office rejected the original application several times as unpatentable over the prior art. See generally Brebner Decl. Ex. AA. Bis-sell filed a continuation application on November 24, 1997. The PTO also rejected the continuation application several times, but the '315 patent was ultimately issued on May 21, 1991. See generally id. Ex. BB.

Oreck was undoubtedly aware that Bis-sell had applied for the '315 patent and had listed its own employees as the named inventors. See David Oreck Aff. ¶ 12 (“I was aware that the invention was being prosecuted by Bissell in the name of its engineers.”). Indeed, David Oreck’s brother, Marshall Oreck, an Oreck executive vice president, submitted an affidavit to the PTO in support of Bissell’s application for the '315 patent. See Brebner Deck Ex. AA(7).

In or about October 1997, the relationship between Oreck and Bissell began to deteriorate, at least in part because Oreck informed Bissell that it would begin to manufacture its own vacuum cleaners. See David Oreck Aff. ¶ 15. As the relationship unraveled, the ownership and/or inventorship of the '315 patent became a particular point of contention, as each party claimed rightful ownership of the '315 patent. See id. Exs. F-J. The disputes between Oreck and Bissell ultimately ripened into litigation. On October 17, 1997, Bissell sued Oreck in the United States District Court for the Western District of Michigan. In its answer in that action, Oreck asserted that Oreck “invented and conceived” the '315 patent and that it was the true owner of the patent. See Brebner Deck Ex. J, ¶¶ 30-32. Around the same time, Oreck sued Bissell in this district. See id. Ex. K Oreck again asserted that it was the true owner of the '315 patent, but it also alleged, in the alternative, that the '315 patent was invalid and unenforceable “because Bissell applied for the patents in the name of the incorrect inventor and did so with deceptive intention.” Id. Ex. K, ¶ 27. Both of those lawsuits resulted in a settlement, under which Bissell assigned the '315 patent to Oreck. See David Oreck Aff. ¶ 17.

B. Claims of the '315 Patent

As noted above, the '315 patent describes an upright floor cleaning device with a handle grip designed to reduce the amount of force required for a user to move the cleaner across the floor. See '315 Patent at 1:47-49. The invention was intended “to provide a handle grip for an upright floor cleaning device ... wherein the operator’s wrist is disposed in a substantially stronger position than in the known upright cleaning devices .... [and] to provide a handle grip which permits the pivoting handle to be positioned at a smaller acute angle to the floor during use.” Id. at 1:40-47.

The specification describes an upright cleaner that includes “a base unit which is reciprocable over the floor by a standing operator, who manipulates the device through an elongated handle which is pivo-table on the base unit, and thus relative to the floor during use.” Id. at 1:14-17. The cleaner has a handle grip that contains “a generally straight first portion which is essentially coaxial with the pivotable elongated handle of the cleaning device and which ... forms an extension of the handle.” Id. at 1:51-54. This portion of the handle grip “connects with a second grip portion which comprises an arm which is graspable by the operator, with the arm extending forwardly ■ (upwardly when in use) of the handle.” Id. at 1:55-59. The far end of the graspable arm “merges into a third grip portion which forms a brace extending diagonally rearwardly (downwardly when in use) back to and connect *390

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434 F. Supp. 2d 385, 2006 U.S. Dist. LEXIS 36709, 2006 WL 1545506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oreck-holdings-llc-v-dyson-inc-laed-2006.