Serby v. First Alert, Inc.

934 F. Supp. 2d 506, 2013 WL 1281561, 2013 U.S. Dist. LEXIS 45942
CourtDistrict Court, E.D. New York
DecidedMarch 27, 2013
DocketNo. 09-cv-4229 (WFK)
StatusPublished
Cited by6 cases

This text of 934 F. Supp. 2d 506 (Serby v. First Alert, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Serby v. First Alert, Inc., 934 F. Supp. 2d 506, 2013 WL 1281561, 2013 U.S. Dist. LEXIS 45942 (E.D.N.Y. 2013).

Opinion

DECISION AND ORDER

WILLIAM F. KUNTZ, II, District Judge.

Victor M. Serby (“Piaintiff”), an attorney proceeding pro se, brought this action in the . Supreme Court of the State of New York, Kings : County, against First Alert, Inc. (“First Alert”) and its subsidiary BRK Brands, Inc. (“BRK”) (collectively “Defendants”), which then -removed the case to this Court. Plaintiff alleges Defendants manufacture, distribute, and sell various smoke detectors without payment of royalties to Plaintiff, in breach of a pre-existing settlement agreement from a prior, related, patent infringement litigation. See Notice of Removal, Dkt. 1, at 7-10 (“Complaint”) ¶¶ 10-16. Currently before the Court is Plaintiffs motion for summary judgment and to strike Defendant’s affirmative defenses pursuant to Rule 56 of the Federal Rules of Civil Procedure. For the reasons that follow, Plaintiffs motion is denied in its entirety.

BACKGROUND

The following facts are either undisputed or described in the light most favorable to Defendants, the non-moving parties. See Capobianco v. City of New York, 422 F.3d 47, 50 n. 1 (2d Cir.2005). Plaintiff is the owner of U.S. Patent No. 5,444,434 (“the '434 Patent”), entitled “Extended Life Smoke Detector.” Resp. of Defs.’/Counterclaimants to Pl.’s St. of Material Facts and Counterst. of Facts Pursuant to Local R. 56.1(b) (“Defs.’ 56.1 St” and “Defs.’ 56.1 Counterst.”),1 Dkt. 44, at ¶ 1; Deck of Gerard Schiano-Strain in Opp. to PL’s Mot. for Summ. J. (“Schaino[510]*510Strain Deck”), Ex. A (U.S. Patent No. 5,444,434). BRK is. a manufacturer and distributor of home safety and security products, including smoke detectors. Defs.’ 56.1 Counterst., at ¶ 1. Defendant First Alert is the parent company of Defendant BRK. Serby v. First Alert, Inc., et al, 09-cv-4229, 2011 WL 4464494, at *1 (E.D.N.Y. Sept. 26, 2011) (Mauskopf, J.). BRK sells its products under the “First Alert” brand name. Id.

Previous Litigation and Settlement

In. 1995, Plaintiff brought an action in the Eastern District of New York (the “1995 Action” alleging, inter alia, that Defendants’ SA10YR model smoke detector infringed the '434 Patent. PL’s 56.1 St., at ¶ 5; Defs.’ 56.1 Counterst. at ¶ 2. The SA10YR model smoke detector had a cover attached to a base, which cover was not intended to be removed by the consumer. Defs.’ 56.1 Counterst. at ¶ 3. The smoke detector also had a battery compartment containing a lithium battery with a working life of at least ten years. Serby, 2011 WL 4464494, at *1.

Defendants filed an answer to the 1995 Action and interposed various affirmative defenses, including: (1) they had not infringed the '434 Patent; (2) the '434 Patent was invalid and unenforceable because it failed to satisfy the conditions of patent-ability and failed to comply with the requirements of Title 35 of the United States Code; (3) the '434 Patent was unenforceable due to Plaintiffs inequitable conduct; (4) Plaintiff was not entitled to enhanced damages because any infringement was neither willful, deliberate, nor intentional; and (5) Plaintiffs conduct entitled Defendants to an award of attorneys’ fees. Notice of Removal, Dkt. 1, at 27-32 (Defs.’ answer in the 1995 Action). Defendants also asserted a counterclaim for a declaration of patent non-infringement and invalidity. Id.

In April 1997, Plaintiff and Defendants entered into a Settlement, License and Mutual Release Agreement (the “Settlement Agreement”), requiring Defendants to pay Plaintiff a 5% royalty on Defendants’ “net sales of smoke detectors which incorporate a lithium battery, meet all other limitations of Claims 5 or 10 of the Serby Patent and which have a battery compartment that is unopenable.” Settlement Agreement at ¶ 4. The Settlement Agreement further stated that Defendants could manufacture, sell, distribute, or otherwise deal in lithium batteries for use in smoke detectors, as well as smoke detectors with openable battery compartments that require lithium batteries, without paying royalties. Id.

Current Dispute

Defendants made royalty payments under the Settlement Agreement until 2008. Compl. at ¶ 13. Defendants claim to have ceased the production and sale of the SA10YR smoke1 detector in response to changed industry standards. Defs.’ 56.1 Counterst, ¶ 7-10. Defendants replaced the SA10YR model with the SA340 model smoke alarm. Defs.’ 56.1 Counterst. ¶ 10. Unlike the SA10YR model, the SA340 model allows a consumer to open the case, remove the battery compartment, and open the battery compartment. Id. at ¶ 11. Because of these changes, Defendants claim that the SA340 is not “unopenable” under the terms of the Settlement Agreement and therefore they are not required to pay royalties on the SA340 model. Id. at ¶ 17. Plaintiff disagrees and asserts that Defendants are required to pay him royalties on the SA340 under the terms of the Settlement Agreement. PL’s 56.1 St. at ¶ 9.

In August 2009, Plaintiff filed this action for breach of the Settlement Agreement in the Supreme Court of the State of New York, Kings County, seeking $5 million in [511]*511damages. Compl., at ¶ 18. Defendants removed the action to this Court pursuant to 28 U.S.C. ■§ 1446(b) on the basis of diversity jurisdiction under 28 U.S.C. § 1332. Notice of Removal, at ¶ 5. After removing, Defendants filed an answer which alleged various affirmative defenses, including, inter alia: (1) the complaint fails to state a cause of action; (2) Plaintiff breached the Settlement Agreement by disclosing its terms and existence without first obtaining the prior written approval of Defendants; (3) Plaintiffs claims are barred by the doctrines of waiver, estoppel, and/or clean hands; (4) all claims of the '434 Patent are invalid under 35 U.S.C. § 101 because Plaintiff did not invent or discover any new and useful process or machine, or any new and useful improvements thereof; (5) all claims of the '434 Patent are invalid under 35 U.S.C. § 102 because, inter alia, Plaintiff is not the first inventor of the subject matter of the '434 Patent and the invention was known or used by others before Plaintiffs alleged invention; (6) the '434 Patent is invalid under 35 U.S.C. § 103 because the differences between its subject matter and prior art are obvious to a person having ordinary skill; (7) Plaintiff failed to disclose material information that would have prevented issuance of the '434 Patent, rendering the patent unenforceable; and (8) estoppel. Schiano-Strain. Deck, Ex. E (Defs.’ Answer). Defendants also counterclaimed for a declaration of unenforeeability and invalidity of the '434 Patent. Id.

Presently before the Court is Plaintiffs motion for summary judgment and to strike Defendants’ affirmative defenses.

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934 F. Supp. 2d 506, 2013 WL 1281561, 2013 U.S. Dist. LEXIS 45942, Counsel Stack Legal Research, https://law.counselstack.com/opinion/serby-v-first-alert-inc-nyed-2013.