Schreiber Manufacturing Co. v. Saft America, Inc.

704 F. Supp. 759, 11 U.S.P.Q. 2d (BNA) 1439, 1989 U.S. Dist. LEXIS 856, 1989 WL 5967
CourtDistrict Court, E.D. Michigan
DecidedJanuary 9, 1989
DocketCiv. A. 86CV75113DT
StatusPublished
Cited by10 cases

This text of 704 F. Supp. 759 (Schreiber Manufacturing Co. v. Saft America, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schreiber Manufacturing Co. v. Saft America, Inc., 704 F. Supp. 759, 11 U.S.P.Q. 2d (BNA) 1439, 1989 U.S. Dist. LEXIS 856, 1989 WL 5967 (E.D. Mich. 1989).

Opinion

MEMORANDUM OPINION AND ORDER

FRIEDMAN, District Judge.

This matter is before the Court on defendant Saft America, Inc.’s [Saft] motion for summary judgment. Plaintiff Schreiber Manufacturing Co., Inc. [Schreiber] has filed a response, and Saft has submitted a reply brief. A hearing was held on Saft’s motion on December 7, 1988, and the Court now issues its opinion in this matter.

The present case involves a patent dispute between Schreiber and Saft with regard to two patents. 1 These are Schreiber’s Design Patent D281,968 [hereinafter *761 the ’968 patent] and a utility patent also issued to Schreiber, Utility Patent 4,599,283 [hereinafter the ’283 patent]. The two patents-in-suit were involved in the production of a portable nickel cadmium [Ni-Cad] battery pack. The ’968 patent is a design patent covering the design of the plastic case for the battery pack, while the ’283 patent covers the internal structure of the “ribs” and “end walls” which separate and insulate the ten individual D-cell batteries contained in the battery case. Originally, the Ni-Cad battery pack was used as an auxiliary source to power video cameras. However, with the development of an internal battery cartridge, use of the Ni-Cad battery packs for video cameras was rendered obsolete. Nonetheless, the Ni-Cad battery pack is currently heavily utilized in the cellular telephone industry. The ’968 and ’283 patents, therefore, remain useful.

Schreiber ceased making battery packs at some point after the onset of the current litigation. This cessation came about when Schreiber sold its battery pack tooling. Prior to its departure from the Ni-Cad battery business, Schreiber had produced battery power packs for Saft, among others. The battery packs were produced during the course of a joint venture involving Schreiber, Enertronics, Inc., Enerlite Manufacturing Co., and Enerlite Products Corp. Under the joint venture agreement, Lawrence Simpkin, president of Enerlite Manufacturing, was to provide engineering services; Albert Lee Taylor, president of En-erlite Products, was to provide marketing services; and Schreiber and its wholly-owned subsidiary, Enertronics, were to provide manufacturing services. Schreiber was headed by Karl 0. Thiele, its president, and Lawrence Toth, its vice-president. Of note, Schreiber contracted with Chivas Products, Ltd. for the design and cutting of dies for the battery pack’s plastic case. The battery pack produced under the joint venture agreement shall be referred to as the Schreiber battery pack.

Saft sold the Schreiber battery packs as their own, having Schreiber mark them with Saft’s trademark, “AGAIN & AGAIN.” During the course of this business relationship, demand for Saft’s battery pack rose. However, in the meantime, Saft concluded that Schreiber was an unreliable supplier. Injuries were sustained by Saft customers from Schreiber battery packs which lacked safety fuses and were, therefore, defective. Additionally, Schreiber began supplying an allegedly unreputa-ble distributor who told customers that it had the Saft battery pack at a lower cost. This battery pack varied from Saft’s pack and did not conform to Saft’s standards. Saft felt that its reputation was being damaged by Schreiber’s actions. To avoid further damage to its reputation, Schreiber began to design its own battery pack in late 1985. This battery pack was also marketed under Saft’s “AGAIN & AGAIN” trademark.

Unbeknownst to Saft, Schreiber had obtained design patent ’968 and utility patent ’283 from the Patent and Trademark Office in December 1985 and July 1986, respectively. In the instant lawsuit, Schreiber contends that Saft’s battery pack is a look-alike of the Schreiber battery pack. On this basis, Schreiber has instituted the present lawsuit against Saft for patent and trademark infringement, for unfair competition, and for violations of the Michigan Consumer Protection Act, M.C.L. A. sec. 445.901 et seq.

In the instant motion for summary judgment, Saft claims that the patents issued to Schreiber are invalid and unenforceable as barred under 35 U.S.C. sec. 102 or as fraudulently procured. Saft further asserts that there is no trademark or trade dress infringement either because Schreiber has no trademark rights or because no likelihood of confusion is present since the products involved are marketed under entirely different trademarks and trade dress. Notably, Saft’s argument also extends to Schreiber’s unfair competition claim which is based on trademark infringement. Additionally, Saft argues that the Michigan Consumer Protection Act does not apply under the facts of this case.

In response to the defendant’s motion, Schreiber generally contends that genuine issues of material fact exist such that summary judgment cannot be granted. Addi *762 tionally, Schreiber contends that the defendant’s motion is not properly supported, instead being based on attorney arguments. On these bases, Schreiber contends that summary judgment should be denied.

The standards which must be used in deciding this motion are clear. Pursuant to Fed.R.Civ.P. 56(c), summary judgment may be granted when there is no genuine issue of material fact. Atlas Concrete Pipe, Inc. v. Roger J. Au & Sons, Inc., 668 F.2d 905, 908 (6th Cir.1982). Additionally, under Fed.R.Civ.P. 56(e), the mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment. Anderson v. Liberty Lobby Inc., 477 U.S. 242, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The movant in a motion for summary judgment has the initial responsibility of informing the Court of the basis for the motion and demonstrating the absence of a genuine issue of material fact. Fed.R. Civ.P. 56(e). There is no express or implied requirement that the moving party support its motion with affidavits or similar materials negating the opponent’s claim. Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). If the non-movant cannot establish an essential element of his claim and summary judgment is appropriate, the movant is entitled to the entry of summary judgment as a matter of law. Id. Finally, the evidence of the non-movant is to be believed and all justifiable inferences are to be drawn in his favor. United States v. Diebold, 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962); Adickes v. S.H. Kress & Co., 398 U.S. 144, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970). These standards are applicable to patent cases, see Howes v.

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704 F. Supp. 759, 11 U.S.P.Q. 2d (BNA) 1439, 1989 U.S. Dist. LEXIS 856, 1989 WL 5967, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schreiber-manufacturing-co-v-saft-america-inc-mied-1989.