QUANTRONIX, INC. v. Data Trak Technologies, Inc.

503 F. Supp. 2d 1152, 2007 U.S. Dist. LEXIS 56279, 2007 WL 2249133
CourtDistrict Court, D. Minnesota
DecidedAugust 1, 2007
DocketCivil 07-1799 (DWF/AJB)
StatusPublished

This text of 503 F. Supp. 2d 1152 (QUANTRONIX, INC. v. Data Trak Technologies, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
QUANTRONIX, INC. v. Data Trak Technologies, Inc., 503 F. Supp. 2d 1152, 2007 U.S. Dist. LEXIS 56279, 2007 WL 2249133 (mnd 2007).

Opinion

MEMORANDUM OPINION AND ORDER

FRANK, District Judge.

INTRODUCTION

The above-entitled matter came before the Court pursuant to Plaintiff Quantronix, Inc.’s (“Quantronix”) Motion for Preliminary Injunction and Request for Eviden- *1156 tiary Hearing 1 and Defendant Data Trak Technologies, Inc., Data Trak Solutions NA, Inc., Wildwood Technology, LLC, Robert Tessier, Michael Everson, and Troy Buchholz’s (collectively “Data Trak”) Motion for a Stay of Litigation on the '464 Patent Pending Completion of Reexamination of the '464 Patent. In its Complaint, Quantronix asserts the following counts against Data Trak: (1) patent infringement of United States Patent No. 5,042,-015 (the “’015 patent”); (2) patent infringement of United States Patent No. 5,105,392 (the “'392 patent”); and (3) patent infringement of United States Patent No. 6,850,464 (the “'464 patent”). For the reasons stated below, the Court grants Quantronix’s Motion for Preliminary Injunction. Also, consistent with the Court’s statements and ruling made during oral argument on July 26, 2007, the Court denies Data Trak’s Motion for a Stay.

BACKGROUND

Quantronix is a corporation that develops, manufacturers, markets, and sells equipment and apparatuses for measuring, dimensioning, cubing, sizing, and weighing packages and objects. The '015 patent (issued August 20, 1991, and entitled “Measuring Method and Apparatus”), the '392 patent (issued April 14, 1992, and entitled “Measuring Method and Apparatus”), and the '464 patent (issued February 1, 2005, and entitled “Dimensioning System and Method of Dimensioning”), all relate to measuring, dimensioning, cubing, sizing, and weighing packages and objects. Quantronix owns the '015, '392, and '464 patents by assignment. The '015 and '392 patents expire in 2009 and the '464 patent expires in 2023.

Starting in January 2007, certain package carriers such as United Parcel Service (“UPS”) and Federal Express Corporation (“FedEx”) changed the manner in which they charge clients for ground freight package shipments. Now, dimensional weight calculations are a requirement for most packages shipped. Both UPS and FedEx have instituted dimensional weight requirements on all ground shipping and express overnight packages. It is undisputed that these changes have increased the demand for dimensional data-acquisition systems.

In January 2007, Clark Skeen, President of Quantronix, attended a trade show in Chicago. There, Skeen observed a Data Trak dimensioning system (the “Dimmer”). Thereafter, Quantronix determined that Defendants Data Trak Technologies, Inc., Data Trak Solutions NA, Inc., and/or Michael Everson, 2 use and offer to sell and/or lease “Package Dimen-sioner” apparatuses, including the Dimmer, on the website www.dtsna.com/ dimmer.cfm. (Compl-¶ 17.) Quantronix also determined that Defendants Wildwood Technology, LLC and/or Robert Tessier 3 manufacture these apparatuses. {Id. ¶ 22.)

On March 19, 2007, Quantronix learned that Johnstone Supply — a company that Quantronix had previously sold and leased package-dimensioning systems to — had declined Quantronix’s offer to purchase or lease Quantronix’s products. Instead, Johnston purchased eight Dimmer dimensioning systems from Data Trak. On March 29, 2007, and thereafter, Data Trak *1157 issued several press releases in which it offered to sell an automated dimensional data-acquisition system called the “Dimmer.” 4

On April 6, 2007, Quantronix filed the above-entitled action. 5 Quantronix contends that Data Trak’s apparatuses, and specifically the Dimmer, use ultrasonic transducers that are capable of emitting ultrasonic waves toward an object or package from multiple directions, receiving ultrasonic waves reflected from the object or package, and estimating, calculating, and/or determining the dimensions of the object or package using the reflected ultrasonic waves. Accordingly, Quantronix asserts that the Dimmer infringes the claims of the patents-at-issue. In addition, Quan-tronix asserts that Data Traks’ infringing activities are eroding Quantronix’s market position and undermine the strength of the patents-at-issue and Quantronix’s credibility and good will.

DISCUSSION

I. Standard of Review

Federal Circuit law governs the issuance of preliminary injunctions in patent cases. “[A] preliminary injunction is a drastic and extraordinary remedy that is not to be routinely granted.” Intel Corp. v. ULSI Sys. Tech., Inc., 995 F.2d 1566, 1568 (Fed.Cir.1993). “A decision to grant or deny a preliminary injunction is within the sound discretion of the district eourt[.]” Oakley, Inc. v. Sunglass Hut Int’l, 316 F.3d 1331, 1338 (Fed.Cir.2003). A moving party is entitled to a preliminary injunction if it can succeed in showing the following four factors: (1) a reasonable likelihood of success on the merits; (2) irreparable harm if the injunction is not granted; (3) balance of harms tipping in its favor; and (4) that the public interest is impacted favorably by an injunction. Purdue Pharma L.P. v. Boehringer Ingelheim GMBH, 237 F.3d 1359, 1363 (Fed.Cir. 2001). “These factors, taken individually, are not dispositive; rather, the district court must weigh and measure each factor against the other factors and against the form and magnitude of the relief requested.” Amazon.com, Inc. v. Barnesandnoble.com, Inc., 239 F.3d 1343, 1350 (Fed.Cir.2001) (quotations omitted). However, “a movant cannot be granted a preliminary injunction unless it establishes both of the first two factors[.]” Amazon.com, Inc., 239 F.3d at 1350 (emphasis in original).

II. Analysis

Quantronix has moved for a preliminary injunction based on Data Trak’s alleged infringement of the '015, '392, and '464 patents. For purposes of its preliminary-injunction motion, Quantronix focuses its infringement analysis on Claim 21 of the '015 patent, Claim 6 of the '392 patent, and Claim 1 of the '464 patent.

A. Likelihood of Success on the Merits

“[B]ecause of the extraordinary nature of the relief, the patentee carries the burden of showing likelihood of success on the merits with respect to the patent’s validity, enforceability, and infringement.” Nutrition 21 v. United States, 930 F.2d 867

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