Speller v. United States

14 Cl. Ct. 170, 10 Fed. R. Serv. 3d 242, 1988 U.S. Claims LEXIS 4, 1988 WL 1469
CourtUnited States Court of Claims
DecidedJanuary 13, 1988
DocketNo. 116-85C
StatusPublished
Cited by4 cases

This text of 14 Cl. Ct. 170 (Speller v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Speller v. United States, 14 Cl. Ct. 170, 10 Fed. R. Serv. 3d 242, 1988 U.S. Claims LEXIS 4, 1988 WL 1469 (cc 1988).

Opinion

ORDER

BRUGGINK, Judge.

Pending before the court is the October 14, 1987 motion of non-party Litton Industries, Inc. (“Litton”) to Quash Subpoena as it relates to plaintiffs written deposition question # 3(a).1 Alternatively, Litton asks for a protective order to deny this discovery until after liability is established by plaintiff (“Speller”). After consideration of the parties’ submissions regarding the propriety of question # 3(a), including supplemental briefs discussing the impact of two recent decisions of the Court of Appeals for the Federal Circuit, American Standard Inc. v. Pfizer Inc., 828 F.2d 734 (Fed.Cir.1987); Truswal Sys. Corp. v. Hydro-Air Eng’g, Inc., 813 F.2d 1207 (Fed.Cir.1987), the court concludes that Litton’s motion should be denied.

Speller seeks discovery of Litton’s sales data regarding ring laser gyroscopes (“RLG’s”), the alleged infringing invention.2 Specifically, Speller’s written deposition question # 3(a) asks Litton to disclose, “by year, the number of RLGs provided to any entity other than the United States Government and/or any of its agencies and departments.” Speller desires this information as evidence of the commercial success of RLG’s. Litton argues that the sales information is confidential and, if disclosed to a competitor, would harm Litton. Litton also alleges that RLG sales data is not relevant to the subject matter involved in the present action because Speller has failed to demonstrate a nexus between his invention and the commercial success of the RLG’s; therefore, disclosure would not lead to the discovery of admissible evidence. Litton further argues that the information sought would be burdensome to obtain3 and would be premature because it relates only to damages.4 The Government supports Litton’s motion.

To determine whether Litton’s motion to quash should be granted, the court must balance “the relevance of the discovery sought, the requesting party’s need, and the potential hardship to the party subject to the subpoena.” Heat & Control, Inc. v. Hester Indus., Inc., 785 F.2d 1017, 1024 (Fed.Cir.1986) (citing Dutchman v. E.R. Squibb & Sons, Inc., 740 F.2d [172]*172556, 560, 564 (7th Cir.1984)), quoted in Truswal, 813 F.2d at 1210; see also American Standard, Inc., 828 F.2d at 741 (“Where a party seeking a protective order has shown that the information sought is confidential and that its disclosure might be harmful, the burden shifts to the party seeking discovery to establish that disclosure of trade secrets and confidential information is relevant and necessary to its case.”).

A. Motion to Quash

1. Relevance—Rule of the United States Claims Court (“RUSCC”) 26(b)(1) provides:

Parties may obtain discovery regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action.... It is not ground for objection that the information sought will be inadmissible at trial if the information sought appears reasonably calculated to lead to the discovery of admissible evidence.

Relevance in a discovery context is construed more broadly than is relevance for trial. See Heat & Control, Inc., 785 F.2d at 1024 (citing Centurion Indus., Inc. v. Warren Steurer and Assocs., 665 F.2d 323, 326 (10th Cir.1981)), cited with approval in Truswal, 813 F.2d at 1211. “WTiere there is doubt over relevance, [Rule 26(b)(1)] indicates that the court should be permissive.” Heat & Control, Inc., 785 F.2d at 1024 (citing Deitchman, 740 F.2d at 566), cited with approval in Truswal, 813 F.2d at 1212.

The gravamen of this action is Speller’s claim that his Patent No. 3,395,270, issued July 30, 1968 for a “Relativistic Inertial Reference Device,” was infringed by inertial guidance devices manufactured for and used by defendant. Speller’s complaint recites that the patent “relates broadly and specifically to a non-mechanical ‘gyroscope’ of the type that has come to be known as a ring laser gyro.”

There are three legal requisites to patent validity: utility, novelty, and nonobviousness. General Motors Corp. v. Toyota Motor Co., 667 F.2d 504 (6th Cir.1981), cert. denied, 456 U.S. 937, 102 S.Ct. 1994, 72 L.Ed.2d 457 (1982); Radio Steel & Mfg. Co. v. MTD Prods. Inc., 566 F.Supp. 609 (N.D.Ohio 1983), aff'd in part and rev’d in part, 731 F.2d 840 (Fed.Cir.), cert. denied, 469 U.S. 831, 105 S.Ct. 119, 83 L.Ed.2d 62 (1984); see Bowser, Inc. v. United States, 181 Ct.Cl. 834, 840-41, 388 F.2d 346, 350-51 (1967); 35 U.S.C. §§ 101-103 (1982). Assuming that there is a nexus between the Speller patent and an RLG, then evidence of the commercial success of RLG’s serves as a relevant secondary consideration in determining the nonobviousness of the patent. See Graham v. John Deere Co., 383 U.S. 1, 17-18, 86 S.Ct. 684, 693-94, 15 L.Ed.2d 545 (1966); Truswal, 813 F.2d at 1212. This court in Pacific Technica Corp. v. United States, 2 Cl.Ct. 170, 172-73 (1983), explained how such evidence potentially bears on liability:

The purpose of resorting to commercial success is, of course, to demonstrate that the invention covered by a patent was not obvious at the time that it was conceived. The theory underlying the doctrine is that an invention enjoys commercial success because a need for the invention existed. From the existence of this need and the readily available rewards, courts have been urged to conclude that a plaintiff’s invention must be patentable, since the need would have been filled by others, at a much earlier date, if the solution was obvious. Put another way, courts are urged to conclude that an invention which enjoys commercial success is nonobvious for, if the invention were obvious to make, it would have been discovered and exploited in the marketplace, long before plaintiff came along.

See also Graham, 383 U.S. at 17-18, 86 S.Ct. at 693-94. In its answer, defendant, among other defenses, contends that if it is assumed that the patent in question describes a process or technology that is incorporated by the RLG, then the subject matter of Speller’s claims was “obvious under the provisions of 35 U.S.C. § 103.” Consequently, if Speller can prove at trial that the RLG invention incorporates his [173]*173patent, Litton’s sales data indicating commercial success could be relevant in defending against a claim of the obviousness of the Speller patent.

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14 Cl. Ct. 170, 10 Fed. R. Serv. 3d 242, 1988 U.S. Claims LEXIS 4, 1988 WL 1469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/speller-v-united-states-cc-1988.