Sealant Systems International v. Tek Global, S.R.L.

616 F. App'x 987
CourtCourt of Appeals for the Federal Circuit
DecidedJune 11, 2015
Docket2014-1405, 2014-1428
StatusUnpublished
Cited by5 cases

This text of 616 F. App'x 987 (Sealant Systems International v. Tek Global, S.R.L.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sealant Systems International v. Tek Global, S.R.L., 616 F. App'x 987 (Fed. Cir. 2015).

Opinion

WALLACH, Circuit Judge.

In this patent infringement suit, each side asserts the other infringed its patent on tire repair technology. Because the district court erred in certain aspects of its claim construction and obviousness analysis, this court reverses the summary judgment of obviousness with respect to the asserted claims of U.S. Patent No. 7,789,-110 (the “'110 patent”). This court also reverses the district court’s denial of judgment as a matter of law (“JMOL”) on obviousness with respect to the asserted claims of U.S. Patent No. 6,789,581 (the “'581 patent”), vacates the injunction imposed by the district court, affirms the district court’s denial of attorney fees, and remands for further proceedings.

Background

TEK Global, S.R.L. (“TEK Global”) is an Italian limited liability company and assignee of the '110 patent, which is generally directed to a kit for repairing and *989 inflating inflatable articles, particularly tires. See '110 patent col. 1 11. 1-3. In November 2010, TEK Global sued Sealant Systems International, Inc. (“Sealant”), a California corporation engaged in the sale and manufacture of tire repair kits, for infringement of the '110 patent in the United States District Court for the Southern District of New York.

In February 2011, Sealant filed suit against TEK Global in the United States District Court for the Northern District of California, seeking declaratory judgment of invalidity and noninfringement of the '110 patent. Asserting a lack of personal jurisdiction in the New York court, Sealant successfully moved to transfer the New York case to the Northern District of California and the two cases were consolidated in May 2011. TEK Global’s’ affiliate TEK Corp., a Michigan corporation (collectively, “TEK”), was later named as a defendant in Sealant’s Second Amended Complaint.

Accessories Marketing Inc. (“AMI”) is the “manufacturing arm” of Sealant, and the two entities are described as “sister companies.” J.A. 72 n. 187. Both AMI and Sealant are owned by Illinois Tool Works, and both are California corporations with their principal place of business in Grover Beach, California.

On April 29, 2011 — two months after Sealant’s initial complaint for declaratory relief was filed — AMI purchased the '581 patent, which also claims a kit for repairing and inflating tires, from non-party IDQ Operating, Inc. AMI was added as a plaintiff in Sealant’s consolidated action in a First Amended Complaint dated June 17, 2011, which asserted AMI (but not Sealant) suffered damages caused by TEK Global’s infringement of the '581 patent.

In March 2014, the district court granted Sealant and AMI’s motion for summary judgment of invalidity of the '110 patent and denied TEK’s motion for summary judgment of invalidity of the '581 patent. The district court found substantial evidence supported the jury’s infringement verdict as to the '581 patent, and thus declined to grant JMOL that the '581 patent was invalid and not infringed, and entered a permanent injunction. Sealant Sys. Int’l, Inc. v. TEK Global, S.R.L., No 5:11-ev-0074-PSG (N.D.Cal. Mar. 7, 2014) (“Order Granting Post-Trial' Motions”) (J.A. 31-94).

TEK appeals the district court’s (1) denial of its motion for JMOL that the '581 patent is invalid and not infringed, (2) damages award based on the '581 patent, (3) issuance of a permanent injunction based on the '581 patent, and (4) grant of summary judgment of invalidity of the '110 patent. Sealant and AMI cross-appeal the denial by the district court of their motion for attorney fees. This court has jurisdiction under 28 U.S.C. § 1295(a)(1) (2012).

DISCUSSION

I. Although Sealant Lacks Standing to Assert the '581 Patent, AMI Properly Asserted It

“[A] suit for infringement of patent rights [must] ordinarily be brought by a party holding legal title to the patent.” Propat Int’l Corp. v. Rpost, Inc., 473 F.3d 1187, 1189 (Fed.Cir.2007). “The question of standing to sue is a jurisdictional one, which we review de novo.” Rite-Hite Corp. v. Kelley Co., 56 F.3d 1538, 1551 (Fed.Cir.1995) (en banc). “‘[Jurisdiction of the [c]ourt depends upon the state of things at the time of the action brought.’ ” Karstens Prods., Inc. v. Fed. Deposit Ins. Corp., 74 F.3d 1258,1995 WL 769019, at *3 (Fed. Cir.1995) (unpublished) (quoting Keene Corp. v. United States, 508 U.S. 200, 207, 113 S.Ct. 2035, 124 L.Ed.2d 118 (1993)). “The party bringing the action bears the burden of establishing that it has *990 standing.” Sicom Sys. v. Agilent Techs., Inc., 427 F.3d 971, 976 (Fed.Cir.2005).

TEK argues Sealant does not have standing to assert claims based on the 581 patent because Sealant has never held title to that patent, and AMI lacks standing because it did not own the '581 patent when the suit was originally filed by Sealant. In Morrow v. Microsoft Corp., 499 F.3d 1332 (Fed.Cir.2007), this court explained how standing requirements apply to three categories of patent plaintiffs: (1) patentees; (2) exclusive licensees; and (3) “those that hold less than all substantial rights to the patent and lack exclusionary rights under the patent statutes to meet the injury in fact requirement.” Id. at 1340. Sealant is not an owner or assignee of the '581 patent, nor does it allege it is an exclusive licensee under the '581 patent. Under Morrow, Sealant cannot cure a standing deficiency with respect to the '581 patent by adding AMI to the suit. See id. at 1341 (A “standing deficiency cannot be cured by adding the patent title owner to the suit.”).

Although Sealant’s standing to request declaratory relief with respect to the '110 patent is not in dispute, Sealant cannot establish standing to assert the '581 patent based on the case or controversy associated with the '110 patent. “[Standing is not dispensed in gross. Rather, a plaintiff must demonstrate standing for each claim he seeks to press and for each form of relief that is sought.” Davis v. Fed. Election Comm’n, 554 U.S. 724, 734, 128 S.Ct. 2759, 171 L.Ed.2d 737 (2008) (internal quotation marks and citations omitted). Sealant therefore lacks standing to assert the '581 patent.

The more relevant dispute over standmg, however, centers not on sealant but on AMI. TEK acknowledges AMI’s assertion that it could have brought a separate suit following its purchase of the '581 patent, but argues this is irrelevant because AMI instead elected to assert its claims in Sealant’s previously-filed suit.

It is true the Supreme Court has stated “the standing inquiry ...

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616 F. App'x 987, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sealant-systems-international-v-tek-global-srl-cafc-2015.