PainTEQ, LLC v. Omnia Medical, LLC

District Court, M.D. Florida·Decided August 27, 2024·No. 8:20-cv-02805·Unknown

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

PAINTEQ, LLC,

Plaintiff,

v. Case No. 8:20-cv-2805-VMC-AAS

OMNIA MEDICAL, LLC,

Defendant. ______________________________/

ORDER This matter comes before the Court upon Plaintiff and Counterclaim-Defendant PainTEQ, LLC’s Motion to Dismiss for Lack of Subject Matter Jurisdiction, filed on April 8, 2024. (Doc. # 160). Defendant and Counterclaimant Omnia Medical, LLC responded in partial opposition on April 29, 2024. (Doc. #168). For the reasons set forth below, the Motion is granted in part and denied in part. I. Background This matter is based upon two separate cases, the present case and 8:22-cv-145-VMC-TGW, which has been consolidated into the present case. (Doc. # 101; 8:22-cv-00145 at Doc. # 102). PainTEQ is a Florida limited liability company with its principal place of business in Hillsborough County, Florida. (Doc. # 10 at 1). PainTEQ’s members are Florida citizens. (Id.). Omnia Medical is an Ohio limited liability company with its principal place of business in West Virginia. (Id. at ¶ 3). Omnia Medical’s members are Ohio, West Virginia, and California citizens. (Id.). Omnia “develops novel products that reduce operative time through safe and reproducible instrumentation, while achieving superior surgical outcomes. It produces, sells, and

distributes the PsiFTM System for use in surgical procedures for sacroiliac (‘SI’) joint repair.” (Doc. # 20 at 24). At issue in this Motion, Omnia represents that non-party Orthocision Inc. owns the U.S. Trademark Registration No. 4,646,387 (“‘387 Registration”) and U.S. Trademark Registration No. 4,646,388 (“‘388 Registration”), Copyright Registration Number VA 2-209-321 (“‘321 Registration”) and Copyright Registration Number VA 2-212-904 (“‘904 Registration”), and that Omnia is the exclusive licensee for each of these items. (Doc. # 20 at 25). As the exclusive licensee, Omnia argues that it has the right to use the

licensed intellectual property and to enforce, litigate, initiate court proceedings, and/or settle all past, present, and future claims arising from or related to the licensed intellectual property. (Id.). Omnia also asserts that this contract is governed by Ohio law. (Id. at 27). A more detailed history of the ‘321 and ‘904 copyright registrations mentioned above is necessary. The ‘321 registration was authored by Troy Schifano, Steve Anderson, and Adam Young. (Doc. # 20-7). The ‘904 registration was authored by Adam Young alone. (Doc. # 20-9). The ‘321 was registered by Orthocision on July 3, 2020. (Doc. # 20-7). The ‘904 registration was registered by Orthocision on July 11,

2020. (Doc. # 20-9). PainTEQ “provides services and solutions to the interventional pain management community, including interventional spine specialist physicians.” (Doc. # 1-1 at 2). PainTEQ and Omnia entered into a business relationship beginning around December 2016. (Doc. # 20 at 25). This relationship was solidified by a written contract between the companies called the Stocking Agreement. (Id. at 25-26). Pursuant to this agreement, PainTEQ served as the exclusive distributor for Omnia implants and instrumentation for SI

joint fusion procedures in the interventional pain community. (Doc. # 10 at 3). Additionally, Omnia provided access and knowledge of its PsiFTM Surgical Technique Guide, the PsiF™ System, as part of its relationship with PainTEQ. (Doc. # 20 at 27). According to PainTEQ, Omnia was unable to supply enough implants to meet demand, leading PainTEQ to end the relationship with Omnia. (Doc. # 10 at 3-4). While searching for a new supplier, PainTEQ created a new SI procedure called the LinQ™ procedure. (Id.) According to Omnia, the LinQ™ procedure is “substantially similar” to equipment they sell. (Doc. # 20 at 27). Omnia also alleges that in conjunction

with this procedure, PainTEQ began using a LinQ™ Surgical Technique Guide, which included copied images of drawings of tools from Omnia Medical’s PsiF™ System and the copying of Omnia Medical’s trademarked name. (Id. at 34). Following the dissolution of their business relationship, PainTEQ alleges that Omnia engaged in a “revenge campaign” against PainTEQ. (Doc. # 1-1 at 9). This campaign allegedly included hiring several former PainTEQ employees and encouraging current PainTEQ employees to join Omnia, and then having these individuals use their insider information gained from PainTEQ to Omnia’s benefit and

PainTEQ’s detriment. (Id.). According to PainTEQ, Omnia employees contacted PainTEQ customers and distributors to provide false information about PainTEQ in an effort to persuade these customers and distributors to provide their business to Omnia instead of PainTEQ. (Id. at 9-11). PainTEQ initiated the present action in state court against its former employee, Chad Subasic, on April 8, 2020. (Doc. # 1 at 1). PainTEQ amended its complaint on June 2, 2020, to add Omnia Medical as a defendant. (Id. at 1-2; Doc. # 1-1). On October 29, 2020, PainTEQ and Subasic filed a stipulation of dismissal, and the claims against Subasic were dismissed. (Doc. # 1 at 2). On November 30, 2020, Omnia

Medical removed the case to this Court on the basis of diversity jurisdiction. (Doc. # 1). On December 4, 2020, PainTEQ filed a second amended complaint, including the following claims against Omnia Medical: violation of the Florida Uniform Trade Secrets Act (Count I), tortious interference with a business relationship (Count II), tortious interference with a contractual relationship (Count III), and defamation (Count IV). (Doc. # 10). On December 18, 2020, Omnia Medical filed its answer and counterclaims. (Doc. # 20). The counterclaim includes the following causes of action against PainTEQ: patent

infringement (Counts I and II), copyright infringement (Counts III and IV), trademark infringement (Counts V and VI), breach of contract (Count VII), violations of the Ohio Deceptive Trade Practices Act (Count VIII), violations of the Florida Deceptive and Unfair Trade Practices Act (Count IX), and common law unfair competition (Count X). (Id.) On December 18, 2020, Omnia Medical moved to transfer this case to the Southern District of Ohio. (Doc. # 21). PainTEQ responded on February 5, 2021. (Doc. # 42). The Court denied the motion on March 30, 2021. (Doc. # 44). On January 18, 2022, Omnia initiated an action against

PainTEQ and two of its agents, Sean LaNeve and Charles Girsch, in 8:22-cv-145. (8:22-cv-145 at Doc. # 1-1). Omnia alleged infringement of the D568 and ‘511 Patents (Counts VI and VII) and also asserted twelve non-patent claims related to the Stocking Agreement. (Id.). On March 28, 2022, PainTEQ, Mr. LaNeve, and Mr. Girsch filed a motion to dismiss the complaint. (Doc. # 18). The Court dismissed Counts I-V and VIII-XIV of Omnia’s complaint for improper claim-splitting, based on the still- pending suit between the two parties in the present action. (Doc. # 45). PainTEQ answered the complaint on August 17,

2022, asserting four counterclaims, each for a declaratory judgment. (Doc. # 48). Counts I and II seek a declaratory judgment of invalidity and non-infringement, respectively, of the ‘511 Patent. (Id.). Counts III and IV seek a declaratory judgment of invalidity and non-infringement, respectively, of the D568 Patent. (Id.). On January 30, 2023, the Court held a Markman hearing, where the parties discussed all matters related to claim construction for each case. (8:20-cv-2805 at Doc. # 80; 8:22- cv-145 at Doc. # 91). On June 30, 2023, the Court entered its order on claim construction in each case respectively. (8:20-

cv-2805 at Doc. # 88; 8:22-cv-145 at Doc. # 91). On August 18, 2023, the Court held a joint Case Management Hearing, in which the Court granted the joint oral motion of the parties to consolidate the cases for trial purposes only. (8:20-cv-2805 at Doc.

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