Precision Links Inc. v. USA Products Group, Inc.

800 F. Supp. 2d 706, 2011 U.S. Dist. LEXIS 77702, 2011 WL 2791133
CourtDistrict Court, W.D. North Carolina
DecidedJuly 14, 2011
DocketCivil Case 3:08cv576
StatusPublished

This text of 800 F. Supp. 2d 706 (Precision Links Inc. v. USA Products Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Precision Links Inc. v. USA Products Group, Inc., 800 F. Supp. 2d 706, 2011 U.S. Dist. LEXIS 77702, 2011 WL 2791133 (W.D.N.C. 2011).

Opinion

ORDER

MARTIN REIDINGER, District Judge.

THIS MATTER is before the Court on the Defendants’ Motion for Costs and Attorneys’ Fees [Doc. 93].

I. PROCEDURAL BACKGROUND

This is an action for patent infringement involving U.S. Patent No. 5,673,464 (“the '464 Patent”). The invention disclosed in the '464 Patent relates to a “Cargo Securement System and Tie Down Strap,” which is essentially a tie-down strap used to restrain cargo during transport. Plain *708 tiff Precision Links Incorporated is the owner of the patent-in-suit and the manufacturer of the adjustable tie-down strap that is claimed to be covered by the Patent. [Doc. 1 at ¶ 8]. Defendant USA Products Group, Inc. (“USA Products”) is alleged to import the CARGO BOSS cargo strap (“the accused strap”). [Doc. 1 at ¶ 15]. USA Products is alleged to have sold the accused strap to Defendant Home Depot USA, Inc. (“Home Depot”), which is alleged to have sold the accused strap in several of its stores. [Doc. 1 at ¶ 15].

The Plaintiff initiated this action against the Defendants on December 15, 2008, asserting a claim for infringement of the '464 Patent (Count One) and a claim for unfair and deceptive trade practices under N.C. Gen.Stat. § 75-1.1 et seq. (“Count Two”). [Doc. 1]. The Plaintiff alleged literal infringement of Claims 1, 2, and 4 by a single Accused Strap and of Claims 1, 2, 3, 4, 6, 7, and 8 by use of two of the Accused Straps together. [Doc. 1 at ¶¶ 17, 18]. Claims 1, 6, and 8 are independent claims. Claims 2, 3, 4, and 7 are dependent claims of Claims 1, 6, and 8.

On February 27, 2009, the Defendants moved to dismiss Count Two for failing to state a claim upon which relief could be granted. [Doc. 14]. On March 25, 2009, 2009 WL 801781, the Court granted the Defendants’ motion and ordered an answer to be filed by April 8, 2009. [Doc. 18]. The Defendants filed their Answer as instructed, denying liability and asserting counterclaims for declaratory judgments of non-infringement and invalidity. [Doc. 20]. Thereafter, the Court entered a Pretrial Order and Case Management Plan [Doc. 24], setting certain scheduling deadlines and establishing a claim construction schedule. [Doc. 24],

On May 19, 2009, the Plaintiff filed a motion for a preliminary injunction [Doc. 25], but this motion was stricken due to its failure to comply with the type requirement and page limitation set forth in the Pretrial Order and Case Management Plan. [Doc. 37]. The Plaintiff subsequently re-filed its motion in conformity with the type requirement and page limitation on June 16, 2009. [Doc. 38]. The Court denied the Plaintiffs request for preliminary injunctive relief on September 22, 2009, 2009 WL 3076114. [Doc. 46]. 1

On May 28, 2009, the Defendants moved for entry of default against the Plaintiff on the Defendants’ counterclaims. [Doc. 32], Finding the Plaintiffs failure to answer the counterclaims “to be more of a technical oversight than a failure ‘to plead or otherwise defend’ the action,” [Doc. 41 at 4], the Court denied the Defendants’ motion on July 2, 2009, 2009 WL 1940055. [Id. at 5].

In December 2009, the parties moved for construction of the claims. [Docs. 52, 55]. On June 10, 2010, the Court held a claim construction hearing. On June 17, 2010, 2010 WL 2509977, the Court issued its Claim Construction Order construing the terms of the '464 Patent. [Doc. 71]. In light of the Court’s claim construction ruling, the Defendants renewed their motion for summary judgment on June 30, 2010. [Doc. 72], Citing the parties’ settlement negotiations, the Plaintiff filed a consent motion for an extension of time to respond to the summary judgment motion [Doc. 77], which was granted. On July 23, 2010, the Plaintiff filed a response to the summary judgment motion, noting its *709 agreement with the Defendants “that the claim construction entered by the Court clearly excludes the accused straps from coverage by” the '464 Patent. [Doc. 78 at 1]. The Court therefore entered summary judgment in favor of the Defendants on August 3, 2010. [Doc. 80].

On August 10, 2010, the Defendants, with the consent of the Plaintiff, filed a motion for an extension of time to file a motion for costs and attorneys’ fees. [Doc. 81]. On August 11, 2010, the Court allowed a limited extension, giving the Defendants until sixty days after entry of Judgment to file their motion. In the event that a notice of appeal was filed, the Court instructed the Defendants to seek an additional extension of this deadline. [Doc. 82].

The Plaintiff filed a Notice of Appeal to the Federal Circuit on September 7, 2010, 35 days after entry of judgment. [Doc. 83].

On September 30, 2010, the Defendants filed another consent motion for an extension of time in which to file their motion for fees and costs. [Doc. 87]. On October 1, 2010, the Court granted the Defendants’ motion and extended the deadline for filing such motion to sixty days after resolution of the Federal Circuit appeal. [Doc. 88].

The Defendants moved to dismiss the Plaintiffs appeal in the Federal Circuit on the grounds of untimeliness. In response to this motion, the Plaintiff filed a “motion for miscellaneous relief’ in this Court, asking the Court to characterize Plaintiffs July 23, 2010 summary judgment response as a notice of appeal. Alternatively, the Plaintiff moved the Court to amend its August 11, 2010 Order to explicitly extend the time for filing an appeal or to treat the Plaintiffs Notice of Appeal as a motion for extension of time in which to file a notice of appeal. [Doc. 89].

On December 8, 2010, the Federal Circuit dismissed the Plaintiffs appeal as untimely. Precision Links Inc. v. USA Prods. Group, Inc., 404 Fed.Appx. 478 (Fed.Cir.2010). Thereafter, this Court denied the Plaintiffs motion for miscellaneous relief as moot. [Doc. 92].

On February 7, 2011, the Defendants filed the present motion for an award of fees and costs, arguing that this case is “exceptional” within the meaning of 35 U.S.C. § 285. [Doc. 93]. The Plaintiff filed a response opposing the Defendants’ motion on February 25, 2011. [Doc. 97]. The Defendants filed a reply on March 7, 2011. [Doc.98].

Having been fully briefed, this matter is now ripe for disposition.

II. DISCUSSION

A district court has the authority to award attorneys’ fees to a prevailing party in a patent case upon determining that the case is “exceptional.” 35 U.S.C. § 285. A finding that a case is exceptional is warranted “when there has been some material inappropriate conduct related to the matter in litigation, such as willful infringement, fraud or inequitable conduct in procuring the patent, misconduct during litigation, vexatious or unjustified litigation, conduct that violates Fed.R.Civ.P. 11, or like infractions.” Brooks Furniture Mfg., Inc. v. Dutailier Int'l, Inc.,

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800 F. Supp. 2d 706, 2011 U.S. Dist. LEXIS 77702, 2011 WL 2791133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/precision-links-inc-v-usa-products-group-inc-ncwd-2011.