(PS) American Int'l Industries v. Stiles

District Court, E.D. California·Decided February 14, 2025·No. 2:19-cv-01218·Unknown

Opinion

AMERICAN INTERNATIONAL No. 2:19-cv-1218 DAD AC PS INDUSTRIES, a California General Partnership, Plaintiff, FINDINGS AND RECOMMENDATIONS v. SHARIDAN STILES, an individual, Defendant.

Defendant is proceeding in this action pro se and the case was accordingly referred to the undersigned by Local Rule 302(c)(21). Plaintiff American International Industries (“AI”) moves for summary judgment in its favor on the following claims raised in its First Amended Complaint (ECF No. 10) and in defendant Sharidan Stiles’ (“Stiles”) Answer and Counterclaims thereto (ECF No. 30): (1) AI’s First Cause of Action for Declaratory Judgment of Non-Infringement regarding Stiles’ Patent No. 9,707,689 (the “689 Patent”); and (2) Stiles’ Count I for Willful Infringement of the 689 Patent. ECF No. 81. Defendant failed to oppose the motion. See ECF No. 84. Having carefully considered plaintiff’s motion on the merits1, for the

1 A district court may not grant a motion for summary judgment solely because it is unopposed. Cristobal v. Siegel, 26 F.3d 1488, 1494–95 & n. 4 (9th Cir.1994) (unopposed motion may be granted only after court determines that there are no material factual issues of fact). However, if movant’s papers are themselves sufficient to support the motion and do not on their face reveal a genuine issue of material fact, the motion may be granted on the merits. Id. reasons explained below, the undersigned recommends that the motion be GRANTED. I. Procedural Background Plaintiff filed this action for declaratory relief on July 1, 2019. ECF No. 1. By the complaint, plaintiff seeks a declaratory judgment of non-infringement of Stiles’ 689 Patent. Id. at 3. According to the complaint, this lawsuit arises out of a lengthy litigation history between plaintiff and Stiles, in which Stiles has repeatedly filed lawsuits claiming that plaintiff has infringed on her patents via its products, including a product known as the “Ardell Precision Shaper.” Id. at 2. On September 25, 2014, Stiles filed complaint in the Eastern District of California against plaintiff and its retailer, Wal-Mart Stores, Inc. (“Walmart”). See Stiles v. Walmart Stores, Inc., et al., E.D. Cal. Case No. 14-cv-2234-DAD-DMC (“Stiles I”). The Stiles I case asserted claims for trade secret and patent infringement arising from the sale of both the Ardell Precision Shaper and plaintiff’s “Salon Perfect Micro Razor” product, and was later amended to include additional claims for trade dress infringement and antitrust violations. Stiles I, ECF No. 1, 142 (Fourth Amended Complaint). On November 8, 2022, the court granted defendants’ motions for partial summary judgment in Stiles I and ordered that, inter alia, judgment be granted in favor of defendants on plaintiff’s patent infringement claims. Stiles I, ECF No. 588 at 37. On March 30, 2023, judgment was entered in favor of AI and Walmart and against Stiles on all of Stiles’ claims, consistent with the court’s November 8, 2022 order. Stiles I, ECF Nos. 608, 610. The case was closed on November 2, 2023. Stiles I, ECF No. 637. In the case at bar, AI “seeks summary judgment of non-infringement on a second-filed continuation patent for the same reasons that summary judgment was sought—and granted—on similar infringement claims arising from the parent patent.” ECF No. 81 at 6. As stated above, in its complaint for declaratory judgment, plaintiff seeks a declaration that its Precision Shaper product does not infringe Stiles’ United States Patent No. 9,707,689 (the “689 Patent” or “Patent-in-Suit”). ECF No. 10 (Operative First Amended Complaint). In her Answer (ECF No. 30), Stiles included a Counterclaim for infringement of the 689 Patent by AI’s Precision Shaper product. II. Applicable Legal Standard Summary judgment is appropriate when the moving party “shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). Under summary judgment practice, “[t]he moving party initially bears the burden of proving the absence of a genuine issue of material fact.” In re Oracle Corp. Sec. Litig., 627 F.3d 376, 387 (9th Cir. 2010) (citing Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986)). The moving party may accomplish this by “citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for purposes of the motion only), admissions, interrogatory answers, or other materials” or by showing that such materials “do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissible evidence to support the fact.” Fed. R. Civ. P. 56(c)(1). “Summary judgment is as appropriate in a patent case as in any other.” Barmag Barmer Maschinenfabrik AG v. Murata Mach., Ltd., 731 F.2d 831, 835–36 (Fed. Cir. 1984). Further, the Federal Circuit has made clear that a finding of noninfringement on summary judgment is available in patent cases. Becton Dickinson and Co. v. C.R. Bard, Inc., 922 F.2d 792, 795 (Fed. Cir. 1990) (affirming summary judgment of noninfringement); Nike Inc. v. Wolverine World Wide, 43 F.3d 644, 646 (Fed. Cir. 1994) (“summary judgment is appropriate in a patent case”). “A critical factor in a motion for summary judgment in a patent case, as in any other, is the determination by the court that there is no genuine issue of material fact. With respect to whether there is a genuine issue, the court may not simply accept a party’s statement that a fact is challenged.” Barmag Barmer Maschinenfabrik AG, 731 F.2d at 835-36. The party opposing entry of summary judgment must point to a specific evidentiary conflict; “mere denials or conclusory statements are insufficient.” Id. “In evaluating the evidence to determine whether there is a genuine issue of fact, [the court] draw[s] all inferences supported by the evidence in favor of the non-moving party.” Walls v. Cent. Costa County Transit Auth., 653 F.3d 963, 966 (9th Cir. 2011) (citation omitted). It is the opposing party’s obligation to produce a factual predicate from which the inference may be drawn. See Richards v. Neilsen Freight Lines, 810 F.2d 898, 902 (9th Cir. 1987). Finally, to demonstrate a genuine issue, the opposing party “must do more than simply show that there is some metaphysical doubt as to the material facts.” Matsushita, 475 U.S. at 586 (citations omitted). “Where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party, there is no ‘genuine issue for trial.’” Id. at 587 (quoting First Nat’l Bank, 391 U.S. at 289). III. Judicial Notice Plaintiff submits multiple documents for judicial notice, which are attached as exhibits to its motion for summary judgment. ECF No. 81-3. Exhibits 1, 2, 9, 10, 11, 12, and 13 are records from the United States Patent and Trademark Office. Such records are subject to judicial notice under Rule 201(b) of the Federal Rules of Evidence, which provide that

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