PainTEQ, LLC v. Omnia Medical, LLC

District Court, M.D. Florida·Decided November 20, 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 Exclude Omnia’s Damages Expert. (Doc. # 179). Defendant and Counterclaimant Omnia Medical, LLC responded in opposition on June 6, 2024. (Doc. # 184). PainTEQ filed one notice of supplemental authority. (Doc. # 216). 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-145 at Doc. # 102). The litigation between the parties has a long factual and procedural history, all of which the Court has recounted in its prior orders. Thus, the Court will only recite the facts relevant to this Motion. Both Omnia and PainTEQ are involved in the surgical device business, and they had a business relationship which turned sour. Non-party Orthocision Inc. owns several copyrights, trademarks, and patents (Doc. ## 179-6, 179-7, 179-19, 179-

20, 179-29, 179-30), and Omnia is the exclusive licensee for these copyrights, trademarks, and patents per a licensing agreement. (Doc. # 160-4). Orthocision created and Omnia now produces the PsiF™ product which incorporates the D232 Patent. (Doc. # 183-2 at 16:2-12). In a prior order, the Court found the scope of the D232 Patent to be “the dimensions of the barrel of the cannula, as well as the circularity and dimensions of the proximal end.” (Doc. # 88 at 25). PainTEQ created the LinQ™ procedure in 2019. (Doc. ## 174-1, 174-2, 174-3, 174-4, 174-5). Omnia alleges that the surgical canula contained within the LinQ™ procedure

infringes upon the D232 Patent. (Doc. # 20 at 30-33). When first selling the LinQ™ procedure, PainTEQ created and distributed a corresponding surgical guide which included a picture and illustrations of the PsiF™ implant and referenced PsiF™ twice on the last page of the guide. (Doc. ## 174-33; 183-5 at 74:18-75:25). Omnia obtained an expert, Graham D. Rogers, “to analyze accounting, financial, and other business data for purposes of assisting counsel in identifying damages, if any, arising from Omnia Medical, LLC[’s] litigation against PainTEQ, LLC, Sean LaNeve, and Charles Girsch.” (Doc. # 183 at Ex. I at ¶

4). Per his report, Mr. Rogers is “specifically experienced in consulting with respect to financial, accounting, and economic matters as they relate to the determination of damages in breach of contract and intellectual property disputes including patent infringement, trademark, and copyright matters similar to this matter.” (Id. at ¶ 2). Mr. Rogers submitted his report on March 29, 2024. (Id. at 2). On May 24, 2024, PainTEQ filed its Motion to Exclude Omnia’s Damages Expert. (Doc. # 179). Omnia responded in opposition on June 14, 2024. (Doc. # 184). PainTEQ filed a supplement to its Motion on October 25, 2024. (Doc. # 216).

On October 31, 2024, Omnia filed a motion to strike PainTEQ’s supplemental filing (Doc. # 217), which PainTEQ responded to on November 14, 2024. (Doc. # 220). As the Court does not find the supplement persuasive, the Court denies Omnia’s motion to strike as moot, and will address the merits of PainTEQ’s supplement. PainTEQ’s Motion is ripe for review. II. Legal Standard Federal Rule of Evidence 702 states: A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if: (a) the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue; (b) the testimony is based on sufficient facts or data; (c) the testimony is the product of reliable principles and methods; and (d) the expert has reliably applied the principles and methods to the facts of the case. Fed. R. Evid. 702. Implementing Rule 702, Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579 (1993), requires district courts to ensure that any scientific testimony or evidence admitted is both relevant and reliable. See Id. at 589–90. The Daubert analysis also applies to non-scientific expert testimony. Kumho Tire Co. v. Carmichael, 526 U.S. 137, 147 (1999). District courts must conduct this gatekeeping function “to ensure that speculative, unreliable expert testimony does not reach the jury under the mantle of reliability that accompanies the appellation ‘expert testimony.’” Rink v. Cheminova, Inc., 400 F.3d 1286, 1291 (11th Cir. 2005). The Eleventh Circuit “requires trial courts acting as gatekeepers to engage in a ‘rigorous three-part inquiry.’” Hendrix v. Evenflo Co., 609 F.3d 1183, 1194 (11th Cir. 2010). The district court must assess whether: (1) the expert is qualified to testify competently regarding the matters he intends to address; (2) the methodology by which the expert reaches his conclusions is sufficiently reliable as determined by the sort of inquiry mandated in Daubert; and (3) the testimony assists the trier of fact, through the application of scientific, technical, or specialized expertise, to understand the evidence or to determine a fact in issue. Id. The proponent of the expert testimony must show, by a preponderance of the evidence, that the testimony satisfies each requirement. Id. III. Analysis In its Motion, PainTEQ argues that certain opinions of Omnia’s damages expert, Mr. Rogers, should be excluded under Rule 702. (Doc. # 179 at 1). Specifically, PainTEQ argues that Mr. Rogers’s expert opinions on damages related to Omnia’s patent, trademark, and copyright infringement are unreliable. (Id. at 7-24). Since the filing of its Motion, the Court granted summary judgment for PainTEQ on Omnia’s claims related to copyright infringement. (Doc. # 212). Accordingly, the Court denies the portion of PainTEQ’s Motion related to copyright infringement damages as moot. As to the remaining portions of the Motion, Omnia argues in response that Mr. Rogers’s expert opinions are sufficiently reliable to be admitted under Rule 702, and that PainTEQ’s arguments are matters of weight rather than admissibility. (Doc. # 184 at 1). The Court partially agrees

with PainTEQ, finding that Mr. Rogers’s opinions on reasonable royalties damages for trademark infringement are unreliable, but concludes that the rest of PainTEQ’s challenges go to the weight of the expert opinions rather than their admissibility. A. D232 Patent Infringement Claim PainTEQ argues that Mr. Rogers’s opinions on reasonable royalties damages from the D232 Patent are unreliable because they lack a sufficient factual basis. According to PainTEQ, Mr. Rogers’s opinions fail to properly apportion the cannula’s impact on the overall LinQ™ procedure. (Doc. # 179

at 7-18). Omnia counters that Mr. Rogers’s opinions contain sufficient factual basis, such that his calculation of a reasonable royalty rate is legally permissible. (Doc. # 184 at 3-13). The Court agrees with Omnia and denies the Motion in this respect.

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