Solaia Technology, LLC v. Specialty Publishing Co.

826 N.E.2d 1208, 357 Ill. App. 3d 1, 292 Ill. Dec. 772
CourtAppellate Court of Illinois
DecidedMarch 31, 2005
Docket1-03-3089
StatusPublished
Cited by5 cases

This text of 826 N.E.2d 1208 (Solaia Technology, LLC v. Specialty Publishing Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Solaia Technology, LLC v. Specialty Publishing Co., 826 N.E.2d 1208, 357 Ill. App. 3d 1, 292 Ill. Dec. 772 (Ill. Ct. App. 2005).

Opinions

PRESIDING JUSTICE BURKE

delivered the opinion of the court:

Plaintiffs Solaia Technology, LLC (Solaia), the law firm of Niro, Scavone, Haller, & Niro, Ltd., and Raymond Niro (collectively plaintiffs) appeal from an order of the circuit court dismissing with prejudice their claims of defamation per se and tortious interference with prospective economic advantage against defendants Specialty Publishing Company, Peggy Smedley, John Buell and John Doe. On appeal, plaintiffs contend that the trial court erred (1) in dismissing their claim for defamation pursuant to section 2 — 615 of the Illinois Code of Civil Procedure (Code) (735 ILCS 5/2 — 615 (West 2002)) and section 2 — 619(a)(9) of the Code (735 ILCS 5/2 — 619(a)(9) (West 2002)) because the statements made by defendants fell within the category of statements recognized as defamatory per se, defendants cannot claim the fair report privilege and, alternatively, plaintiffs’ allegations of malice defeated any claim of the fair report privilege and (2) in dismissing their claim for tortious interference with prospective economic advantage pursuant to section 2 — 615 of the Code because plaintiffs adequately pleaded the elements of their claim. For the reasons set forth below, we affirm in part, reverse in part, and remand the cause for further proceedings.

STATEMENT OF FACTS

Solaia owns United States Patent No. 5,038,318 (the ‘318 patent) and its sole business involves the licensing and enforcement of its patent. The ‘318 patent “relates to a system for communicating real-time data between a programmable logic controller (PLC) and a program operating in a central controller.” According to plaintiffs, the ‘318 patent’s technology has “broad application in the manufacturing industry and is used by virtually every manufacturing company that uses a network of PLCs and a computer for control of a manufacturing operation.”

On January 21, 2003, plaintiffs filed a complaint against Specialty Publishing Company, a corporation that publishes Start Magazine (Start); Smedley, the editorial director of Start; Buell, an editor of Start; and John Doe, an author of a letter published in Start. Plaintiffs alleged that certain statements published in various articles of Start defamed plaintiffs per se, constituted tortious interference with prospective economic advantage and, with respect to Raymond Niro, constituted a false light invasion of privacy. One article upon which the complaint was based was printed in Start’s April 2002 issue. The article, entitled “Chaos in Manufacturing,” first explained that the “OPC Foundation” was founded by a group of companies that, in 1996, developed and released a common standard interface for communication between process control devices used in manufacturing. The article also noted that this standard became very successful and was adopted by hundreds of products. The article further stated:

“Clearly, on the surface, the goal of this group was to enable the staunchest of competitors to play nice in the sandbox and develop an elusive open [i.e., nonproprietary] standard. In the end, an open standard would mean less expense for vendors and more solutions for users.
Thus, came the birth of what is known as the OPC Foundation today. It all seemed so perfect. *** Sharing data and information that was once was proprietary. Innocent enough. And it was, in the beginning.
*** [L]ast year, *** a lawsuit was filed against world-class manufacturers, BMW, Jefferson Smurfit, Clorox, and Konica. ***
Solaia *** filed the lawsuit alleging that all three end user manufacturers are violating a patent that it purchased from Schneider Electric’s Automation Business [(Schneider)]. Schneider sold the rights to its patent to Solaia ***. Now Solaia, aided by the legal firm of Niro, Scavone, Haller & Niro, Chicago, Illinois is on a legal campaign targeting manufacturers who might be infringing on its patent.
But that’s not all. *** [T]hree end user companies filed counter lawsuits against their supplier, Rockwell Automation [(Rockwell)]. The suits claim that Rockwell will not indemnify them for use of the technology that Rockwell sold them.
5*: #
The manufacturing mob is baying for blood, and many companies blame Schneider. In fact, just about everyone Start spoke with either on or off the record within the manufacturing community is furious over Schneider’s initial actions. Their anger is only being fanned by Solaia’s lawsuits against leading manufacturers.
❖ *!<
*** Schneider allegedly did not publicly reveal that it had a patent. And what seems to be in dispute today is why Schneider did not reveal it had a patent on technology that might be incorporated in the OPC standard?
Attorneys from Niro, Scavone, Haller & Niro reiterate that they are just following the law and that its clients should not be punished for taking advantage of the rules.
It seems that new patents are issued monthly, if not weekly, granting more and more patents. Some argue that the U.S. Patent And [sic] Trademark Office is not supposed to issue patents on ideas, however, many contend that is what it is doing with software patents. The end result is having a chilling effect on the software industry as more and more companies file lawsuits to defend these so-called patents.
$ $ ^
Watergate spawned campaign-finance reform, perhaps the Solaia lawsuits will spawn patent reform.”

The January 2003 issue also contained an article entitled “Conspiracy of a Shakedown.” The article stated:

“Rockwell, Milwaukee, Wis., turned the tables on Solaia Technology, Chicago, Ill., Schneider Automation, North Andover, Mass., and attorney Raymond Niro, Niro, Scavone, Haller & Niro, Chicago, Ill., filing a lawsuit charging the aforementioned with unfair business practices.
On Dec. 10, 2002, Rockwell filed a lawsuit *** claiming that Solaia, Schneider, and Niro’s law firm have conspired in violation of antitrust laws to ‘shakedown’ Rockwell’s customers with baseless patent infringement claims.
:■{ #
*** [Rockwell’s suit alleges that], as part of the plan to injure Rockwell and disrupt competition, the ‘conspirators’ have made, ‘baseless threats and allegations against manufacturing entities that those manufacturers are infringing the [‘318 patent] by, among other things, using Rockwell-Allen-Bradley products; have overstated in a reckless and misleading fashion the scope, applicability and importance of the ‘318 patent to suppliers and users of industrial automation equipment in general; and have instituted repetitive, baseless, sham patent infringement litigation against those manufacturers.’
Rockwell filed its complaint under the federal antitrust laws: the Sherman Antitrust Act, the Clayton Act, and Lanham Act.

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826 N.E.2d 1208, 357 Ill. App. 3d 1, 292 Ill. Dec. 772, Counsel Stack Legal Research, https://law.counselstack.com/opinion/solaia-technology-llc-v-specialty-publishing-co-illappct-2005.