Robertson Transformer Co. v. General Electric Co.

149 F. Supp. 3d 919, 2015 U.S. Dist. LEXIS 186768, 2015 WL 8481952
CourtDistrict Court, N.D. Illinois
DecidedDecember 10, 2015
DocketNo. 12 C 8094
StatusPublished
Cited by1 cases

This text of 149 F. Supp. 3d 919 (Robertson Transformer Co. v. General Electric Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robertson Transformer Co. v. General Electric Co., 149 F. Supp. 3d 919, 2015 U.S. Dist. LEXIS 186768, 2015 WL 8481952 (N.D. Ill. 2015).

Opinion

MEMORANDUM OPINION AND ORDER

Elaine E. Bucklo, United States District Judge

On October 10, 2012, plaintiff sued General Electric Company, GE Lighting, LLC, H.B. Etlin Company, Ltd., Hatch Transformers, Inc., Howard Industries, Inc., Keystone Technologies, LLC., and ARN Industries, Inc. (collectively, the [922]*922“Customer-Defendants”1), to enforce U;S. Patent Nos. 6,366,032 (the ’032 Patent) and 6,420,838 (the ‘838 Patent) (collectively, the Asserted Patents). These patents claim improvements to electronic ballasts for -fluorescent lamps, including multiple start attempts, automatic restart after shutdown, and end-of-life protection circuitry. Before me is plaintiffs motion for summary judgment of no laches,, equitable estoppel, or waiver — three affirmative defenses defendants have raised in answer to plaintiffs claims of infringement. For the. reasons that follow, I grant the motion.

I.

. On September 18, 2015, I resolved a number of summary judgment motions brought by defendants, including one asserting an entitlement to judgment based on the equitable doctrines of laches, equitable estoppel, and waiver. In my decision denying that motion, I' examined the evidence that defendants identified to supp'ort their argument that plaintiff knew as early as 2005 that Super X was selling the accused products to plaintiffs competitors and acquiesced in the sales, and I concluded that “much of it does not support, much less does it conclusively establish, that plaintiff knew Super X was selling accused products (as opposed to .other products not covered by the asserted patents) to third parties for resale in the United States (as opposed to in geographic regions outside the scope of plaintiffs patent protection).” DN 332 at 2 (original emphasis). In other words, I determined that while plaintiff undisputedly knew that Super X was selling some products to plaintiffs competitors in the U.S. market at that time, and may have known that Super X was selling the accused products to third parties, the evidence to which defendants pointed did not inform plaintiff of all of the facts it would have needed to put them on-notice that defendants were infringing the asserted patents.

I illustrated the point with specific examples of the Shortcomings in defendants’ evidence. See 9/18/20Í5 Order, DN 332 at 2-3 (citing Lovsin' Deck, Exhs '6, 7, 29, 30, DN 184-1). I then pointed to affirmative evidence tending to show that plaintiff did not know about defendants’ allegedly infringing activities at any point before 2009. Id. at 3-4 (citing Bezdon Deck ¶ 22, DN 185-2, and Hartsell Deck, Exhs. 105, DN 262-13 and 143, DN 263-7). I further explained that undisputed evidence that the parties discussed an arrangement in which defendants would sell plaintiffs' patented products to others in exchange for royalties was inconsistent with defendants’ assertion that plaintiff granted Super X permission to sell the accused products, royalty-free, to plaintiffs competitors in the U.S. market. 9/18/15 Order, at 4-5. Finally, I determined that evidence of plaintiffs assistance to Super X in a “multiple listing” process did not establish that plaintiff knew or should have known about the allegedly infringing activity prior to 2008-or 2009. 9/18/2015 Order, DN 332 at 5-6. ,

In addition to identifying these “fundamental shortcoming^]” in defendants’ proof on the issue of when plaintiff knew or should have known about Super X’s infringing activities, I noted that several of defendants’ arguments overstated, mis-characterized, or were otherwise estranged from the factual record. For all of these reasons, I concluded that defendants had not established their entitlement to summary judgment based on any of the equitable defense^ they assert.

Now before me: is plaintiffs motion for summary judgment of no laches, estoppel, [923]*923or waiver, which requires me to return to the evidence I previously examined, and to consider it through a somewhat different lens. To deny defendants’ motion, which was premised on “Robertson’s actual knowledge of Super X’s offers for sale of the Accused Products to other Super X customers for more than 6 years before filing suit,” Def. Mem. at 20 (DN 176-1), I had only to determine that- some admissible, material -evidence supported plaintiffs claim that it did not know about Super X’s infringement until several years after defendants claimed (i.e., that there is a genuine dispute over when plaintiff discovered the infringement), since that factual dispute alone precluded the determination, as a matter of law, that the delay between the time plaintiff discovered its claim against defendants and the time it filed suit was unreasonable and unexcused.2 To resolve plaintiffs summary judgment motion on the same issue, however, I must determine whether, viewing all of- the evidence in the light most favorable to defendants, it is possible to conclude the contrary: that plaintiff unreasonably and unjustifiably delayed filing suit after discovering their claim, and that defendants were materially prejudiced as a result. Before proceeding to the evidence, however, I set forth the legal framework that guides my analysis.

' II. '

In AC. Aukerman Co. v. R.L. Chaides Const. Co., 960 F.2d 1020 (Fed.Cir.1992) (en banc), the Federal Circuit held that the equitable defense of laches may be invoked to defeat a claim of patent infringement, and that to prevail on this defense, the defendant must , show that “the plaintiff delayed filing suit for an unreasonable and inexcusable length of time from the time -the plaintiff knew or reasonably should have known of its claim against the defendant, and...the delay operated to the prejudice or injury of the defendant.” Id. at 1032 (citations omitted). Although laches has long been recognized as a defense to patent infringement, see Gasser Chair Co., Inc. v. Infanti Chair Mfg. Corp., 60 F.3d 770, 773 (Fed.Cir.1995), the Supreme Court’s decision in Petrella v. Metro-Goldwyn-Mayer, Inc., — U.S. —, 134 S.Ct. 1962, 188 L.Ed.2d 979 (2014), which held that laches is not a, defense to a copyright infringement action brought within the Copyright Act’s limitations period, cast doubt on the doctrine’s continuing viability in the patent context. Accordingly, the Federal Circuit convened en banc “to resolve whether... laches remains a defense to legal relief in a patent infringement suit.” SCA Hygiene Products Aktiebolag v. First Quality Baby Products, LLC, 807 F.3d 1311, 1315, 2015 WL 5474261, at *1 (Fed.Cir. Sept. 18, 2015) (en banc). It answered the question in the affirmative, leaving Aukerman intact in all respects relevant to plaintiffs motion.3

Under Aukerman and its progeny, a delay longer than six years from [924]*924discovery of a patentee’s infringement claim “raises a presumption that it is unreasonable, ■ inexcusable, and prejudicial.” Wanlass v. Gen. Elec. Co., 148 F.3d 1334, 1337 (Fed.Cir.1998) (quoting Gasser Chair Co., Inc. v. Infanti Chair Mfg. Corp.,

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149 F. Supp. 3d 919, 2015 U.S. Dist. LEXIS 186768, 2015 WL 8481952, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robertson-transformer-co-v-general-electric-co-ilnd-2015.