Smith Corona Corp. v. Pelikan, Inc.

784 F. Supp. 452, 1992 U.S. Dist. LEXIS 752, 1992 WL 12734
CourtDistrict Court, M.D. Tennessee
DecidedJanuary 9, 1992
Docket3-90-0479
StatusPublished
Cited by22 cases

This text of 784 F. Supp. 452 (Smith Corona Corp. v. Pelikan, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith Corona Corp. v. Pelikan, Inc., 784 F. Supp. 452, 1992 U.S. Dist. LEXIS 752, 1992 WL 12734 (M.D. Tenn. 1992).

Opinion

MEMORANDUM

HIGGINS, District Judge.

Pursuant to Rules 50(b) and 59(a), Fed. R.Civ.P., the Court has before it the motion of defendant Pelikan, Inc., for judgment notwithstanding the verdict or, in the alternative, a new trial (filed April 8, 1991; Docket Entry No. 246), and an accompanying memorandum in support thereof (filed April 8, 1991; Docket Entry No. 247). On May 1, 1991, Smith Corona Corporation filed a memorandum in opposition to Peli-kan’s motion (Docket Entry No. 260). Thereafter, Pelikan submitted a reply memorandum (filed May 15,1991; Docket Entry No. 270).

In addition, the Court has before it Smith Corona’s motion for increased damages and prejudgment interest (filed March 25, 1991; Docket Entry No. 242); Smith Corona’s motion for interim damages (filed March 25, 1991; Docket Entry No. 240); Smith Corona’s motion for post-trial discovery regarding damages (filed March 25, 1991; Docket Entry No. 239); Smith Corona’s motion for post-trial discovery regarding Pelikan’s changed products and packaging (filed April 24, 1991; Docket Entry No. 254); Pelikan’s motion to clarify injunction (filed March 29, 1991; Docket Entry No. 245); and Pelikan’s motion to continue stay of injunction (filed May 29, 1991; Docket Entry No. 274).

For the reasons stated below, the Court denies Pelikan’s motion for JNOY/new trial, and assesses damages.

I. FACTS.

This is a civil action in which Smith Corona sued Pelikan. for injunctive relief and damages for infringement of one utility patent (No. 4,900,171) and two design patents (Nos. Des. 308,070 and Des. 310,384) in violation of the patent laws of the United States, 35 U.S.C. §§ 1, et seq., and for unfair competition and false or deceptive advertising under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), and the Tennessee Consumer Protection Act, Tenn. Code Ann. §§ 47-18-101, et seq.

Proof at trial revealed the following facts.

Smith Corona is a manufacturer of typewriters and typewriter ribbons for use in the equipment it markets. Smith Corona also makes and markets correction tapes, in spools and cassettes, used to correct the mistakes made by the typewriter during its use. Pelikan manufactures typewriter ribbons and correction tapes for use in equipment manufactured by others, including Smith Corona. Generally, these ribbons and correction tapes are sold as replacements for the supplies sold by the original equipment manufacturers. In the replacement market for typewriter ribbon and correction tapes, Smith Corona and Pelikan are direct competitors as to supplies for Smith Corona typewriters.

Typewriter ribbons come in two varieties: multi-strike ribbon and single strike film. 1 As a consequence, correction tapes also come in two varieties: cover-up type and lift-off type. Lift-off correction tape is compatible with single strike film, but is ineffective with multi-strike ribbon. Coverup correction tape is needed when multi-strike ribbon is used.

In 1988, Smith Corona began manufacturing and marketing ink ribbon cassettes and correction tape cassettes for use in its typewriters advertised as having the *458 “Right Ribbon System” feature. The “Right Ribbon System” feature was developed to ensure that the operator would always use compatible ink ribbon and correction cassettes in a Smith Corona typewriter. Smith Corona’s ’171 utility patent as a whole covers the use of matching structural attributes on the ink ribbon cassette and the correction cassette which ensure compatibility between these cassettes when used in the typewriter. One of the attributes patented is a tab on the ribbon cassette which, when passing through a corresponding notched opening on the roof-like structure of the compatible correction cassette, engages a switch on the typewriter itself. Smith Corona’s ’070 and ’384 design patents cover the physical appearance of the correction cassette.

In the summer and fall of 1988, Pelikan began manufacturing and marketing ink ribbon and correction cassettes for use in Smith Corona typewriters equipped with the “Right Ribbon System” feature. Peli-kan’s ink ribbon cassettes contained the same structural attributes as Smith Corona’s ink ribbon cassettes, i.e., a tab on the left side for multi-strike ribbon and a tab on the right side for single strike film. At this time, the ’171 utility patent had not been issued by the Patent and Trademark Office. However, after the issuance of the ’171 utility patent, Pelikan continued to manufacture its ink ribbon cassettes with the same structural attributes as Smith Corona’s cassettes.

Also, prior to the issuance of the three patents-in-issue Pelikan manufactured its correction tape cassettes with the same structural attributes as Smith Corona’s correction tape cassettes, i.e., a notch on the left side for cover-up correction cassettes and a notch on the right side for lift-off correction cassettes. In September of 1989, however, Pelikan learned that Smith Corona had applied for a European patent disclosing the same invention as claimed in its application for the ’171 utility patent. Upon learning of this application, Pelikan altered the design of its correction cassettes, placing two openings in the roof-like structure of its correction cassettes. This alteration, allowed the user to mismatch a Pelikan correction cassette with the incorrect ink ribbon cassette.

As one of its claims, Smith Corona alleged at trial that Pelikan willfully infringed the ’171 utility patent by making, using and selling ink ribbon cassettes embodying the patented invention of the ’171 utility patent, and by actively inducing others to infringe. Specifically, Smith Corona alleged that Pelikan’s ink ribbon cassettes infringed claims 11-15 of the ’171 utility patent.

Claim 11 of the ’171 utility patent reads as follows:

11. A ribbon cassette for a system including a device utilizing a ribbon cassette and a correction tape cassette having a correction tape which are inserted into the device for the operation thereof, the device operating on a flow of electricity and including a switch for controlling the flow of electricity thereto, said ribbon cassette comprising:

a housing having a bottom;
an ink ribbon substantially disposed within said housing; and
means on said ribbon cassette engaging an opening in the correction tape cassette to assure that said ribbon and the correction tape are functionally compatible, said assuring means conditioning the switch to control the flow of electricity to the device.

See exhibit A to Pelikan’s motion for summary judgment (filed November 26, 1990; Docket Entry No. 36).

Claims 12 and 13 are dependent on claim 11. Claim 14 is dependent on claim 13.

Claim 15 reads as follows:

15.

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Bluebook (online)
784 F. Supp. 452, 1992 U.S. Dist. LEXIS 752, 1992 WL 12734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-corona-corp-v-pelikan-inc-tnmd-1992.