Status Time Corp. v. Sharp Electronics Corp.

95 F.R.D. 27, 33 Fed. R. Serv. 2d 1406, 217 U.S.P.Q. (BNA) 438, 10 Fed. R. Serv. 996, 1982 U.S. Dist. LEXIS 15706
CourtDistrict Court, S.D. New York
DecidedMarch 17, 1982
DocketNo. 81 Civ. 1051 (CLB)
StatusPublished
Cited by28 cases

This text of 95 F.R.D. 27 (Status Time Corp. v. Sharp Electronics Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Status Time Corp. v. Sharp Electronics Corp., 95 F.R.D. 27, 33 Fed. R. Serv. 2d 1406, 217 U.S.P.Q. (BNA) 438, 10 Fed. R. Serv. 996, 1982 U.S. Dist. LEXIS 15706 (S.D.N.Y. 1982).

Opinion

ORDER

NINA GERSHON, United States Magistrate:

The defendant, Sharp Electronics Corporation (“Sharp”), has moved pursuant to Rule 37(a) of the Federal Rules of Civil Procedure to compel production of documents. The plaintiff in this action, Status Time Corporation (“Status”), alleges that Sharp has infringed its United States patent entitled “Talking Solid State Timepiece” as follows: On December 21, 1976 the patent for the “Talking Solid State Timepiece” was issued in the name of Robert W. Lester to Camin Industries Corporation as the assignee thereof. The patent was then assigned to the plaintiff. Subsequent, to this assignment the defendant manufactured and sold talking solid state timepieces embodying the inventions of Claims 1 and 4 of the “Talking Solid State Timepiece” patent, thereby infringing the plaintiff’s patent.

The plaintiff now seeks to withhold 32 documents; these documents are divided into three groups. Documents A through S are documents that were found in a file belonging to Thomas B. Graham, Esq., the attorney who, until his death, prepared and prosecuted Mr. Lester’s patent application. Status withheld these documents from production at the deposition of Eugene E. Geoffrey, Jr., a former law partner of Mr. Graham, who had produced them in response to a subpoena duces tecum.

Documents Y through EE are correspondence between Pennie and Edmonds, the law firm that assumed responsibility for the prosecution of the Lester application after the death of Mr. Graham, and various foreign patent agents, relating to the foreign counterparts of the Lester patent application. Documents T through X are other documents relating to the Lester application that were found in the files of Pennie and Edmonds. Status withheld these documents from production at the deposition of Clyde C. Metzger, Esq., a member of the firm of Pennie and Edmonds.

Document FF, the final document withheld from production, is a letter from Steven Feldman, Esq., a patent attorney, to David Wolf, president of Status, expressing his opinion as to the validity of the Lester patent.

Status has withheld these documents, claiming that they are protected from disclosure by the attorney work-product doctrine and the attorney-client privilege. Sharp argues, first, that these documents are not protected by these privileges. Secondly, it argues that even if they did apply, the protection has been waived because document FF has been voluntarily produced to a third party. Lastly, Sharp argues that the attorney-client privilege has [29]*29been abrogated because the patent was fraudulently obtained in that two of the figures in the patent application, Figures 7 and 3, had been copied from a brochure written by the Master Specialties Company.

ATTORNEY WORK-PRODUCT DOCTRINE

The plaintiff claims that all of the withheld documents are protected from disclosure by the work-product doctrine. Federal Rules of Civil Procedure 26(b)(3) provides, in part, that

“. . . a party may obtain discovery of documents and tangible things otherwise discoverable under subdivision (b)(1) of this rule and prepared in anticipation of litigation or for trial by or for another party or by or for that other party’s representative ... only upon a showing that the party seeking discovery has substantial need of the materials . . . . ” (Emphasis added)

The sole claim advanced by the plaintiff in support of its argument that the documents were prepared in anticipation of litigation is that, because a patent is an instrument that prevents others from making, using or selling the patented invention, possible litigation in enforcement of the patent is contemplated at least as early as the time of preparation and filing of the patent application.

This clearly does not establish that the “documents [were] prepared in anticipation of litigation” within the meaning of Rule 26(b)(3), for “[i]t is not enough that the mere possibility of litigation exists”. Burlington Industries v. Exxon Corp., 65 F.R.D. 26, 43 (D.Md.1974). Rather, the test to be applied is whether, in light of the nature of the documents and the factual situation in the particular case, the document can fairly be said to have been prepared or obtained because of the prospect of litigation. 8 Wright & Miller, Federal Practice and Procedure: Civil § 2024 at pp. 197—199. “Materials assembled in the ordinary course of business, or pursuant to public requirements unrelated to litigation, or for other nonlitigation purposes are not under the qualified immunity provided by this subdivision [26(b)(3)].” Advisory Committee’s Notes to Rule 26(b)(3), 48 F.R.D. 487, 501.

The plaintiff has failed to show that the document was prepared with an eye toward litigation. All of the documents for which the privilege is claimed were generated before this lawsuit arose or was in prospect. They are not protected by the attorney work-product doctrine.

THE ATTORNEY-CLIENT PRIVILEGE

Sharp contends that the attorney-client privilege does not apply to any documents relating to the preparation or prosecution of a patent application. This argument is without merit.

In order for the privilege to apply, the following requirements (as stated by Judge Wyzanski in United States v. United Shoe Machinery Corp., 89 F.Supp. 357, 358-359 (D.C.Mass.1950)) must be met:

“(1) the asserted holder of the privilege is or sought to become a client; (2) the person to whom the communication was made (a) is a member of the bar of a court, or his subordinate and (b) in connection with this communication is acting as a lawyer; (3) the communication relates to a fact of which the attorney was informed (a) by his client (b) without the presence of strangers (c) for the purpose of securing primarily either (i) an opinion on law or (ii) legal services or (iii) assistance in some legal proceeding, and not (d) for the purpose of committing a crime or tort; and (4) the privilege has been (a) claimed and (b) not waived by the client.”

Early cases held that the privilege did not apply to communications arising out of the prosecution of patent applications, for in prosecuting them, the patent attorney was not “acting as a lawyer”. In Zenith Radio Corp. v. Radio Corp. of America, 121 F.Supp. 792 (D.Del.1954), relied upon by the defendant, the Court stated, at p. 794, that attorneys do not “act as lawyers” when:

“not primarily engaged in legal activities; when largely concerned with technical as[30]*30pects of a business or engineering character, or competitive considerations in their companies’ constant race for patent proficiency, or the scope of public patents, or even the general application of patent law to developments of their companies and competitors; when making initial office preparatory determinations of patentability based on inventor’s information, prior art, or legal tests for invention and novelty; when drafting or comparing patent specifications and claims; when preparing the application for letters patent or amendments thereto and prosecuting same in the Patent Office; when handling interference proceedings in the Patent Office concerning patent applications.” (Emphasis added)

Georgia-Pacific Plywood Co. v. United States Plywood Corp., 18 F.R.D.

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95 F.R.D. 27, 33 Fed. R. Serv. 2d 1406, 217 U.S.P.Q. (BNA) 438, 10 Fed. R. Serv. 996, 1982 U.S. Dist. LEXIS 15706, Counsel Stack Legal Research, https://law.counselstack.com/opinion/status-time-corp-v-sharp-electronics-corp-nysd-1982.