Roche Diagnostics GmbH v. Enzo Biochem, Inc.

992 F. Supp. 2d 213, 2013 WL 6987614, 2013 U.S. Dist. LEXIS 183607
CourtDistrict Court, S.D. New York
DecidedDecember 6, 2013
DocketNo. 04 Civ. 4046(RJS)
StatusPublished
Cited by15 cases

This text of 992 F. Supp. 2d 213 (Roche Diagnostics GmbH v. Enzo Biochem, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roche Diagnostics GmbH v. Enzo Biochem, Inc., 992 F. Supp. 2d 213, 2013 WL 6987614, 2013 U.S. Dist. LEXIS 183607 (S.D.N.Y. 2013).

Opinion

MEMORANDUM AND ORDER

RICHARD J. SULLIVAN, District Judge:

Defendants Enzo Biochem, Inc. and Enzo Life Sciences, Inc. (collectively, “Enzo”) bring counterclaims against Plaintiffs Roche Diagnostics GmbH and Roche Molecular Systems, Inc. (collectively, “Roche”), for breach of contract, tortious interference, and unfair competition under New York law, as well as for patent infringement under federal law.1 Now before the Court is Roche’s motion for summary judgment with respect to these counterclaims. For the reasons set forth below, the Court denies the motion in part and grants it in part.

I. Background

A. Facts2

Enzo and Roche are biotechnology companies involved in the research, development, manufacture, and sale of biotechnology products. (First Am. Compl. ¶¶ 1, 4) In April 1994, Roche — by way of its predecessor-in-interest, Cornage International Ltd. — entered into a distribution and supply agreement with Enzo (the “Distribution Agreement” or the “Enzo-Roche Agreement”) regarding certain products (the “Products”) used in nucleic acid labeling and detection. (56.1 Stmt. ¶ 1, 3.)

Under the Agreement, Roche was authorized, to sell and distribute the Products, subject to various restrictions based on the type of Product and its use. (Id. ¶ 2.) In particular, the Agreement divided the Products into eight groups — A, A’, C, D, K, K’, El, and E2 — and imposed group-specific restrictions on each. Additionally, all of the Products were limited to “research use only and [were] not intended for or to be used for diagnostic or therapeutic use.” (Decl. of Robert J. Gunther, dated Dec. 21, 2011,3 Doc. No. 112 (“Gunther Deck”), Ex. 2 (the Distribution Agreement (“DA”)) §§ II, XV.)

[216]*216Between 1998 and 2002, Roche manufactured ten to eleven grams of biotinylated nucleotides (“bio-nucleotides”), which the Distribution Agreement classifies as Group A Products. (56.1 Stmt. ¶ 39; Decl. of Jennifer R. Moore, dated May 1, 2013, Doc. No. 105 (“Moore Decl.”), Ex. 4 at 114:5-20; id. Ex. 19 at 40:3-44:9; DA § II.A, App’x at 1-2.) The record also indicates that Roche may have provided these bio-nucleotides to Affymetrix — another biotechnology company — in order to help Affymetrix develop a product that would compete with one of Enzo’s. (Moore Decl. Ex. 19 at 53:5-20.) In addition to competing with Enzo, Affymetrix also had its own distribution agreement with Enzo (the “Affymetrix Agreement”), under which Affymetrix was to purchase terminal transferase, another biotechnology product, exclusively from Enzo. (Id. Ex. 32 § l.a, l.c; id. Ex. 32 at Ex. B (list of products under the Affymetrix Agreement).) Notwithstanding the Affymetrix Agreement, Affymetrix used Roche’s terminal transferase rather than Enzo’s. (Id. Exs. 35-38 (e-mails indicating Affymetrix’s use of Roche’s terminal transferase).)

The Enzo-Roche Agreement became effective on April 25, 1994 and was scheduled to terminate upon the expiration of the last Enzo patent listed in Exhibit A to the Agreement. (DA § XIV.) As certain Enzo patents expired, however, Roche began to withhold some payments and to make others under reservation, and by July 2004, Roche altogether ceased making payments to Enzo under the Distribution Agreement. (56.1 Stmt. ¶¶ 10-11.)

B. Procedural History

Roche commenced this action by filing the Complaint on May 28, 2004 (Doc. No. 1), and on January 21, 2005, it filed the Amended Complaint (Doc. No. 16). Enzo filed its First Amended Answer and Counterclaims (the “FAAC”) on February 22, 2005 (Doc. No. 18), asserting the claims for breach of contract, patent infringement, tortious interference, and unfair competition that are at the heart of the instant motion.

This case was originally assigned to the Honorable John E. Sprizzo, District Judge, but after Judge Sprizzo passed away in December 2008, the case was reassigned to my docket on January 8, 2009. (Doc. Nos. 5, 39.) From March 13, 2009 until August 25, 2011, this action was stayed while a related case was appealed to the Federal Circuit. (Doc. Nos. 44, 65, 67.) On September 24, 2012, following a renewed round of briefing by Roche and the defendants in related patent-infringement cases, the Court granted in part and denied in part Roche’s motion for summary judgment with respect to multiple patent claims asserted by Enzo. (Doc. No. 83.)

Roche filed the instant motion for summary judgment on April 11, 2013, focusing on Enzo’s non-patent claims and asserting a contractual basis for dismissing Enzo’s remaining patent claims. (Doc. No. 102.) After receiving leave to take additional discovery ahead of Roche’s motion, Enzo filed its opposition on May 2, 2013. (Doc. No. 107.) Roche replied on May 16, 2013. (Doc. No. 111.) On August 21, 2013, Roche submitted supplemental authority in support of its motion (Doc, No. 116), to which Enzo responded on August 28 (Doc. No. 118). Finally, on October 7, 2013, Roche sought leave to supplement the summary judgment record, which the Court denied on October 23, 2013. (Doc. No. 126.)

II. Legal Standard

Pursuant to Federal Rule of Civil Procedure 56(a), a court may not grant a motion for summary judgment unless “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a mat[217]*217ter of law.” Fed.R.Civ.P. 56(a); see Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party bears the burden of showing that it is entitled to summary judgment. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 256, 106 S.Ct. 2505, 91 L.Edüd 202 (1986). The Court “is not to weigh evidence but is instead required to view the evidence in the light most favorable to the party opposing summary judgment, to draw all reasonable inferences in favor of that party, and to eschew credibility assessments.” Amnesty Am. v. Town of W. Hartford, 361 F.3d 113, 122 (2d Cir.2004) (internal quotation marks omitted); accord Anderson, 477 U.S. at 249, 106 S.Ct. 2505. As such, “if there is any evidence in the record from any source from which a reasonable inference in the [nonmoving party’s] favor may be drawn, the moving party simply cannot obtain a summary judgment.” Binder & Binder PC v. Barnhart, 481 F.3d 141, 148 (2d Cir.2007) (internal quotation marks omitted).

III. Discussion

Roche moves for summary judgment on Enzo’s counterclaims for breach of contract, patent infringement, tortious interference, and unfair competition. The Court will address these claims in turn.

A. Breach of Contract

Enzo asserts three distinct breaches of the Distribution Agreement. (Mem. at 1-2.)4 First, it claims that Roche violated the Agreement’s research-only use restrictions.

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992 F. Supp. 2d 213, 2013 WL 6987614, 2013 U.S. Dist. LEXIS 183607, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roche-diagnostics-gmbh-v-enzo-biochem-inc-nysd-2013.