Sabasta v. Buckaroos, Inc.

507 F. Supp. 2d 986, 2007 U.S. Dist. LEXIS 64834, 2007 WL 2458408
CourtDistrict Court, S.D. Iowa
DecidedAugust 31, 2007
Docket4:06-cr-00180
StatusPublished

This text of 507 F. Supp. 2d 986 (Sabasta v. Buckaroos, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sabasta v. Buckaroos, Inc., 507 F. Supp. 2d 986, 2007 U.S. Dist. LEXIS 64834, 2007 WL 2458408 (S.D. Iowa 2007).

Opinion

ORDER

ROBERT W. PRATT, Chief Judge.

Before the Court is Defendant, Bueka-roos, Inc.’s Motion for Summary Judgment of Invalidity and Non-Infringement *988 (Clerk’s No. 26), filed on November 6, 2006. Plaintiffs, Steven W. Sabasta and Sioux Falls Insulation Supply, Inc. (“Plaintiffs” or “Sabasta”), filed a response to the motion on March 9, 2007 (Clerk’s No. 62), and Defendant replied on March 15, 2007 (Clerk’s No. 64). Plaintiffs filed a Cross Motion for Summary Judgment (Clerk’s No. 48) on February 28, 2007. Defendant filed a resistance to the motion on March 9, 2007 (Clerk’s No. 64) and Plaintiffs replied on March 23, 2007 (Clerk’s No. 66). A hearing was held on the cross-motions for summary judgment on August 2, 2007. Clerk’s No. 76. The matters are fully submitted.

I. FACTUAL BACKGROUND

Plaintiffs filed the present action for patent infringement on April 17, 2006. Clerk’s No. 1. Plaintiffs’ Complaint alleges that Sabasta is the original inventor of a roll-bending die used to make saddles for pipe insulation. Compl. ¶ 2. Sabasta was granted United States Patent No. 6,751,-995 (“the '995 Patent”) on June 22, 2004. According to the Complaint, Defendant has commercially exploited Sabasta’s invention since March 2005 “by manufacturing and selling certain pipe insulation saddles that were made with a process that infringes upon the '995 Patent.” Id. ¶ 7. Jurisdiction is proper in this Court pursuant to 28 U.S.C. §§ 1331 and 1338(a). Venue is proper in the Southern District of Iowa under 28 U.S.C. § 1400(b).

Pipe saddles are essentially bent or curved pieces of metal designed to support hanging pipes, with or without insulation. The metal saddle shape is commonly produced using a “roll-bending” process, whereby a blank piece of metal is run through a machine that forms the metal into an arcuate shape. Pipe saddles often have flared ends, and some pipe saddles have radial “ribs” in them, intended to strengthen the saddle and inhibit the hanger from sliding. Ribbed saddles, as end products, have been publieally known and sold from at least as far back as 1993. Def.’s Statement of Material Facts ¶ 2.

Steven Sabasta is the founder and owner of Sioux Falls Insulation, Inc., which does business as Sioux City Insulation in Sioux City, Iowa. Pl.’s Statement of Material Facts ¶ 1. Sioux City Insulation is in the business of selling roofing materials, mechanical insulation, and tools related to these trades. Id. As part of its mechanical insulation business, Plaintiffs manufacture and sell pipe saddles. Id. ¶2. Plaintiffs claim that they first started making and selling pipe saddles under the trade name Centerline Saddles, in approximately May 2000. Id. ¶ 3.

Buckaroos, owned and operated by Jeff Rebholz, and co-founded by Mack Deich-man, also manufactures and sells pipe saddles. Id. ¶¶ 22, 28. As early as April 1994, Buckaroos began purchasing roll-bending machines from a company called Acrotech. Def.’s Statement of Material Facts ¶ 7. Shortly thereafter, Buckaroos began making flared pipe saddles. Id. Buckaroos has always used a roll-bending process in manufacturing its pipe saddles, and makes and uses its own dies for use in the roll-bending machines. Id. ¶¶ 8-9. Indeed, on June 14, 1999, Buckaroos purchased a Cincinnati lathe to make dies for its Acrotech roll-bending machines. Id. ¶11.

In mid-2000, one of Plaintiffs’ customers requested an enhanced product, and in response, Sabasta claims to have designed a prototype saddle with flared ends and two ribs in the center. Pl.’s Statement of Material Facts ¶ 4. Since Plaintiffs could not mass produce the prototype saddle with its current equipment, Sabasta began searching for a company that could manufacture a machine to mass produce the *989 product. Id. ¶ 5. In approximately March 2001, Sabasta was told that Acrotech made a machine that might work for the production of his prototype pipe saddles. Id. ¶ 6. Sabasta viewed the Acrotech Model 1618 on an internet site and claims to have conceived the idea of fabricating the top roll, or die, of the Acrotech 1618, so that the machine could mass produce his prototype pipe saddle. Id. Specifically, Sabasta claims to have come up with the idea of putting ridges in the center of the die so that when metal blanks were rolled between the die and the urethane roll of the roll-bending machine, ridges would be pressed into the metal blanks. Id. ¶7. Sabasta further believed that if the die was designed to have flared ridges on the ends, the ends of the metal blanks would flare downward when fed between the die and the urethane roll. Id. Sabasta claims to have communicated the details of his idea to Larry Aakhus (“Aakhus”) at the time he came up with the idea. Id. ¶ 8. 1

On May 28, 2001, Sabasta and Aakhus visited Acrotech and presented Sabasta’s prototype saddle, along with the specifications for the dies that would be needed to mass produce them. Id. ¶ 10. Sabasta claims that, during his visit to Acrotech, he used a modified die to press a rib into a saddle rolled through the Acrotech machine. Id. ¶ 11. On June 4, 2001, Acro-tech prepared a written quotation for an Acrotech Model 1618 machine and for the various shafts and tubes to be fabricated in accordance with the specifications Plaintiffs had provided. Id. ¶ 12. Acrotech presented Plaintiffs with a second quotation for additional shafts and tubes on June 21, 2001. Id. ¶ 13. On June 22, 2001, Sabasta sent a Confidential Disclosure Agreement to Acrotech, which Acro-tech executed and returned to Sabasta. Id. ¶ 14. On June 25, 2001, Plaintiffs ordered the Acrotech Model 1618 and the shafts and tubes as quoted by Acrotech. Id. ¶ 15. The dies for the machine were manufactured by Acrotech in July and August 2001, and the machine and dies were shipped to Plaintiffs on September 4, 2001. Id. ¶¶ 16-17. Plaintiffs immediately put the equipment into service, and first sold ribbed saddles with flared ends made with the specially fabricated dies on October 9, 2001. Id. ¶ 17. Sabasta, then, claims to have conceived of the device to make ribbed/flared pipe saddles in March 2001, and to have reduced his activity to practice “at least as early as May 23, 2001.” Pl.’s Response to Def.’s Statement of Material Facts ¶¶ 4-5-.

In late 2001 or early 2002, Sabasta contacted an attorney regarding the patenta-bility of his invention. Pl.’s Statement of Material Facts ¶ 18. A patent application was filed with the United States Patent and Trademark Office (the “PTO”) on August 9, 2002, and Sabasta was granted the '995 Patent on June 22, 2004. Id. ¶¶ 20-21.

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507 F. Supp. 2d 986, 2007 U.S. Dist. LEXIS 64834, 2007 WL 2458408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sabasta-v-buckaroos-inc-iasd-2007.