Shaunnessey v. Monteris Medical, Inc.

554 F. Supp. 2d 1321, 2008 U.S. Dist. LEXIS 37740, 2008 WL 1994923
CourtDistrict Court, M.D. Florida
DecidedMay 8, 2008
Docket6:07-cv-01401
StatusPublished
Cited by2 cases

This text of 554 F. Supp. 2d 1321 (Shaunnessey v. Monteris Medical, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaunnessey v. Monteris Medical, Inc., 554 F. Supp. 2d 1321, 2008 U.S. Dist. LEXIS 37740, 2008 WL 1994923 (M.D. Fla. 2008).

Opinion

ORDER

JAMES D. WHITTEMORE, District Judge.

BEFORE THE COURT is the Report and Recommendation (Dkt. 32) submitted by Magistrate Judge Mark A. Pizzo recommending that Defendants’ Motion to Dismiss or, In the Alternative, for Summary Judgment (Dkt. 10) be granted. Plaintiff has filed objections to the Report and Recommendation (Dkt. 34) and Defendants have filed a response (Dkt. 35). 1

The District Court is required to “make a de novo determination of those portions of the magistrate’s report or ... recommendation to which objection is made.” .28 U.S.C. § 636(b)(1). The District Court may reconsider a report and recommendation where it has been shown that the magistrate’s order is clearly erroneous or contrary to law. 28 U.S.C. § 636(b)(1)(A). The court may “accept, reject or modify in whole or in part; the findings or recommendations made by the magistrate.” 28 U.S.C. § 636(b)(1)(C).

Plaintiffs Objections

Plaintiff contends the magistrate judge incorrectly concluded that declaratory judgment jurisdiction is lacking. The Declaratory Judgment Act requires that an “actual controversy” exist before a court considers granting declaratory relief. MedImmune Inc. v. Genentech, Inc., 549 U.S. 118, 127 S.Ct. 764, 771, 166 L.Ed.2d 604 (2007). To satisfy this requirement, *1324 there must be a finding of a substantial controversy having sufficient “immediacy” and “reality” to warrant relief. Id. The magistrate judge, in a though and well reasoned analysis, concluded that Plaintiff failed to meet this standard, in part because the approval process of the Federal Drug Administration (“FDA”), which has not yet commenced, may result in changes to the accused device’s design. Specifically, the magistrate judge concluded that since Defendant is several years away from submitting an application for FDA approval, the device ultimately approved by the FDA may not be substantially the same device Plaintiff alleges infringes on his patent. Plaintiff disagrees with the magistrate judge’s conclusion. Relying on Defendant’s “marketing literature,” Plaintiff argues that the evidence “tends to prove that no substantial change could be made that would make the accused device not infringing.” (Dkt. 34, p. 2).

Contrary to Plaintiffs contention, at this juncture, it simply cannot be known whether the FDA will require changes to Defendant’-s device, as it is undisputed that Defendant has not submitted the requisite FDA application and Defendant estimates that it is at least three years away from submitting an application. 2 The magistrate judge correctly concluded that Class HI medical devices, such as the accused device, cannot be commercialized without proper FDA approval. Regardless of Defendant’s marketing claim that it has a “go-to-market” design, it is cannot be known whether Defendant’s current design will be approved by the FDA or whether Defendant will eventually produce and market the device in its current state. Moreover, because Defendant is several years away from submitting an application for FDA approval, the date on which the potentially infringing activities will begin (if ever) will inevitably be several years from the date on which Plaintiff filed his First Amended Complaint.

Given these circumstances, the magistrate judge correctly concluded that Plaintiff failed to meet the “immediacy” and “reality” criteria necessary to find an “actual controversy” within the meaning of the Declaratory Judgment Act. Essentially, Plaintiff s complaint seeks nothing more than an advisory opinion. See Sierra Applied Sciences, Inc. v. Advanced Energy Industries, Inc., 363 F.3d 1361, 1378 (Fed. Cir.2004) (when making a determination on “immediacy,” a court should look to the period of time between the date on which the party filed the complaint and the date on which potentially infringing activities will begin; the greater the length of time, the more likely the case lacks “immediacy”); Id. (“[f]or a decision in a case such as this to be anything other than an advisory opinion, the plaintiff must establish that the product presented to the court is the same product which will be produced if a declaration of noninfringement is obtained”); Telectronics Pacing Systems, Inc. v. Ventritex, Inc., 982 F.2d 1520, 1527 (Fed.Cir.1992) (actual controversy lacking in case involving defibrillator when suit was commenced after clinical trials began, but device was still “years away from potential FDA approval”).

Plaintiff also contends that there is no evidence to support the magistrate *1325 judge’s conclusion that “most of [Defendant’s] exhibitions are better described as ‘investment shows’ because Defendant attended those shows to seek out potential investors.” (Dkt. 32, p. 5). Plaintiffs argument is not convincing. James W. Duncan, the Chief Executive Officer of Monteris Medical, Inc. (US), avers - that Defendant did not exhibit the device system, but merely exhibited one component, “a probe”, and distributed literature describing the system and the status of the development process. According to Duncan, Defendant did so as part of “fund-raising efforts” and in an effort to search for and select “qualified investigators to conduct clinical testing.” (Duncan Decl. ¶¶ 11, 12). Duncan avers that the probe and literature were distributed at “investor forums” and possibly two medical conferences. (Duncan Decl. ¶ 12). According to Duncan, Defendant has not offered to sell or sold the accused device. (Duncan Decl. ¶¶ 9, 12).

It is undisputed that 35 U.S.C. § 271(e)(1) exempts activities that “would otherwise constitute patent infringement as non-infringing if they are undertaken for the purpose of developing and submitting to the Food and Drug Administration information necessary to obtain marketing approval for a medical device under § 515 of the Federal Food, Drug, and Cosmetic Act, 90 Stat. 552, 21 U.S.C. § 360e (FDCA).” See Eli Lilly & Co. v. Medtronic, Inc., 496 U.S. 661, 663-64, 110 S.Ct. 2683, 110 L.Ed.2d 605 (1990). Based in part on Duncan’s declaration, the magistrate judge concluded that Defendant’s actions were in furtherance of Defendant’s development of the device to submit to the FDA for approval. Plaintiffs arguments to the contrary, including his argument that Defendant’s actions are not exempt under § 271(e)(1), are not persuasive. Accordingly, Plaintiffs objection in this regard is overruled.

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Bluebook (online)
554 F. Supp. 2d 1321, 2008 U.S. Dist. LEXIS 37740, 2008 WL 1994923, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaunnessey-v-monteris-medical-inc-flmd-2008.