Sioux Steel Company v. Prairie Land Millwright Services, Inc.

District Court, N.D. Illinois·Decided August 13, 2020·No. 1:16-cv-02212·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

SIOUX STEEL COMPANY,

Plaintiff, Case No. 16-cv-2212 v. Judge Mary M. Rowland PRAIRIE LAND MILLWRIGHT SERVICES, INC. and DUANE CHAON,

Defendants.

MEMORANDUM OPINION AND ORDER

Plaintiff Sioux Steel Company (Sioux Steel) brings this suit against Defendants, Prairie Land Millwright Services, Inc. and Duane Chaon (collectively, Prairie Land), accusing them of infringing on Sioux Steel’s intellectual property rights. As set forth in Sioux Steel’s First Amended Complaint (Dkt. 165), Sioux Steel is pursuing claims of patent infringement under 35 U.S.C § 271; false advertising under the Lanham Act, 15 U.S.C. § 1125(a); and state law claims. As for the patent claims, Sioux Steel alleges that Prairie Land has infringed U.S. Patent No. 8,967,937 (“the ‘937 Patent”). Prairie Land denies infringement and argues that the disputed claim terms should be analyzed under 35 U.S.C. § 112(f). A. Background and Procedural History Sioux Steel, a South Dakota corporation, developed a modular storage bin sweep that utilizes interconnected paddles to sweep and empty grain bins. The use of paddles allows grain bins to be emptied more efficiently and is a safer system than the previous systems.1 The ‘937 Patent discloses a “modular storage bin sweep system.” U.S. Patent 8,967,937, Abstract. (Dkt. 174-1). This system “utiliz[es] paddles to sweep particulate matter across a floor [and] may comprise a sweep assembly

including at least two units connectable together.” Id. The system may be comprised of a “power unit configured to the paddles, a drive unit configured to move the sweep assembly,” and in some instances “a traction enhancement structure” and/or “a pivot unit . . . to permit a degree of pivotability.” Id. The ‘937 Patent was issued on March 3, 2015, with Sioux Steel as the sole assignee. Id. The ‘937 Patent contains twenty- eight claims—one independent claim and twenty-seven dependent claims.

In filing this lawsuit, Sioux Steel alleged that Prairie Land’s “Bin Gator” bin paddle sweep products infringe the ‘937 Patent. On April 28, 2016, Prairie Land raised the invalidity of the ‘937 Patent in its Answer and Counterclaims (Dkt. 22); it did not raise non-infringement based on a § 112(f) interpretation of the patent claims. (Id.). However, in responding to a dismissal motion, Prairie Land amended their pleadings to include the § 112(f) non-infringement defenses. (Dkt. 32). On August 8, 2016, the parties stipulated to the dismissal of the non-infringement claim including

Prairie Land’s § 112(f) argument. (Dkt. 38). On September 21, 2016, Prairie Land petitioned for Inter Partes Review (IPR) with the Patent and Trial Appeals Board (“PTAB”) seeking to invalidate the ‘937 Patent. See IPR2016–01873 (Dkt. 169-2). This proceeding was conducted pursuant to the standard outlined in Phillips v. AWH

1 Previously, mechanical sweeps used an auger system that relied on an exposed helical blade that could cause serious injury. Auger sweeps also had the disadvantage of not being able to reach the entire bin floor, therefore preventing them from removing the maximum amount of grain. (Dkt. 174 at 9-10). Corp., 415 F.3d 1303 (Fed. Cir. 2005) (en banc), requiring claim terms to receive the “broadest reasonable construction in light of the specification as it would be interpreted by one of ordinary skill in the art.” Id. at 1316 (citation omitted). See also

Deep Green Wireless LLC v. Ooma, Inc., 809 F. App'x 804, 806 (Fed. Cir. 2020) (“When an IPR is instituted from a petition filed before November 13, 2018, as here, the claims are given the ‘broadest reasonable interpretation’ consistent with the specification.”). In its April 4, 2018 decision, the PTAB ruled that Prairie Land did not show that claims 1–28 were unpatentable and found Patent ‘937 to be valid. The Board

construed the term “carry” as “supporting the paddles while they move”. (Dkt. 169-2 at 15). The Federal Circuit recently affirmed the Board’s decision. Prairie Land Millwright Servs. v. Sioux Steel Co., No. 2019-1668, 2020 U.S. App. LEXIS 18770 (Fed. Cir. June 15, 2020) (per curium). Following PTAB’s decision, Prairie Land reasserted their non-infringement and non-patentability counterclaims and affirmative defenses, including that based on 35 U.S.C. § 112(f). (Dkt. 172). The parties have presented their respective views on the disputed claims in

briefing and in a joint claim construction chart (Dkt. 178) and the Court held a claim construction hearing on February 4, 2020. (Dkt. 216). This Court now construes the disputed claim terms.2

2 Prior to the hearing the parties agreed that a “pivot structure” which appears in claim 1 will be construed to mean a “structure containing a pin or shaft that allows for movement about such pin or shaft.” (Dkt. 180). Further, at the start of the hearing, without objection from Prairie Land, the Court determined that “weight support” used in claim 14 will be construed as “an extended support for a weight” and the term “weight support” used in claim 21 requires no construction. (Dkt. 216, 2/4/20 Tr. at 5). B. Applicable Standard 1. Claim Construction “It is a ‘bedrock principle’ of patent law that ‘the claims of a patent define the

invention to which the patentee is entitled the right to exclude.’” Phillips, 415 F.3d at 1312 (citation omitted). Claim construction is a matter of law for the Court to determine. Markman v. Westview Instruments, Inc., 517 U.S. 370, 391, 116 S. Ct. 1384, 134 L. Ed. 2d 577 (1996); Marine Polymer Techs., Inc. v. HemCon, Inc., 672 F.3d 1350, 1357-58 (Fed. Cir. 2012); see also AFG Indus. v. Cardinal IG Co., 239 F.3d 1239, 1247 (Fed. Cir. 2001) (“the claim construction becomes the basis of the jury

instructions, should the case go to trial.”). Claim construction analysis begins with the words of the claims themselves, giving those words their ordinary and customary meaning, which is the “meaning that the term would have to a person of ordinary skill in the art in question at the time of the invention.” Phillips, 415 F.3d at 1312-13; see also InterDigital Communs., LLC v. ITC, 690 F.3d 1318, 1324 (Fed. Cir. 2012). A court interpreting a claim “should look first to the intrinsic evidence of record, i.e., the patent itself, including the claims,

the specification and, if in evidence, the prosecution history.” Wenger Manufacturing, Inc. v. Coating Machinery Systems, Inc., 239 F.3d 1225, 1232 (Fed. Cir. 2001) (quoting Vitronics Corp. v. Conceptronic, Inc., 90 F.3d 1576, 1582 (Fed. Cir. 1996)).

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Sioux Steel Company v. Prairie Land Millwright Services, Inc., (N.D. Ill. 2020).

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