System v. Concrete

District Court, D. New Hampshire·Decided July 26, 1999·No. CV-94-484-M·Published

Opinion

System v. Concrete CV-94-484-M 07/26/99 UNITED STATES DISTRICT COURT

DISTRICT OF NEW HAMPSHIRE

System Evergreen, A.G. and Michie Corporation, Plaintiffs

v. Civil No. 94-484-M

Concrete Systems, Inc., Cleco Corporation, and Methuen Construction Co., Inc., Defendants

O R D E R

This is an action for patent infringement. Plaintiffs, System Evergreen, A.G. and Michie Corporation, allege that defendants. Concrete Systems, Inc., Cleco Corp., and Methuen Construction Co., willfully infringed U.S. Patent No. 4,293,245 (the "'245 patent") through the manufacture, sale, and use of their "Eco-Wal" product. Pending before the court are the parties' cross-motions for partial summary judgment.

Plaintiffs argue that defendants' product infringes the '245 patent because the Eco-Wal system literally includes every limitation recited in the patent's third claim. They further claim that the defendants' behavior prior to commencement of this suit rises to the level of willful infringement. Defendants respond that claim 3 is invalid as a matter of law for failing both the enablement and written description reguirements as set forth in 35 U.S.C. § 112. In the alternative, defendants contend that if the validity of the claim is sustained and infringement

is found, defendants' reliance on the opinion of counsel precludes a finding of willful infringement.

INTRODUCTION

A. Factual Background Plaintiff, System Evergreen, is the assignee of the '245 patent, which issued to Felix Jaecklin on October 6, 1981. The patent is directed to an earth-filled structural system, composed of stackable concrete units that can be used as a retaining wall or free-standing sound barrier. Co-plaintiff, Michie Corporation, manufactures and sells precast concrete products pursuant to its exclusive license under the '245 patent.

Defendant, Concrete Systems, manufactures and sells the Eco-

Wal — an earth-filled, concrete retaining wall system. Cleco Corporation manufactures and sells molds used to create precast concrete forms that are incorporated in the Eco-Wal. The remaining defendant, Methuen Construction, purchased at least one Eco-Wal system and then, in turn, sold it to the State of New Hampshire.

B. History of the '245 Patent The patent originally issued with 27 claims, only one of which was independent (claim 1). At the outset of this suit, and at the parties' reguest, the court issued an order construing claim 1 of the patent. See System Evergreen v. Concrete Systems,

Inc., No. 94-484-M, slip op. (D.N.H. November 13, 1996) (hereinafter "Order of Nov. 13, 1996" or "Claim Construction Order"). Armed with this construction, defendants sought to have the patent reexamined in the Patent and Trademark Office ("PTO"). The PTO granted defendants' reguest and issued an Office Action in Reexamination, rejecting claims 1, 2, 4, 5, 9-13, 15, 20, 21, and 25-27; and confirming the patentability of claims 3, 6-8, 14, 16-19, and 22-24.

According to the Examiner:

Claims 3, 6-8, 14, 16-19, and 22-24 are confirmed because the prior art does not fairly teach a system such as taught by Velde [U.S. Patent No. 1,268,649]

having an L-type cross-section, as set forth in claims 3, 16 and 17; or covering slab elements, as set forth in claims 6-8, or the "elements" arranged in a vertical position, as recited in claim 14, a longitudinal beam having a canal, as set forth in claims 18 and 19, or the arrangement of elements as set forth in claims 22-

24 .

See Document No. 118, Defendants' Motion for Summary Judgment, Appendix, Exhibit D, Office Action in Reexamination, May 2, 1997, p . 5, 5 3.

Rather than continue prosecuting the patent, plaintiffs conceded the rejected claims, terminated the reexamination proceeding and asserted infringement of claims 18 and 19 against defendants in this court. In its order of September 30, 1998, the court construed claims 12, 18 and 19, concluding that defendants were not liable for infringement. See System

Evergreen v. Concrete Systems, Inc., No. 94-484-M, slip op. (D.N.H. September 30, 1998) (hereinafter "Order of Sept. 30, 1998" or "Infringement Order").

The parties now focus their attention on claim 3 of the '245 patent, which recites:

3. The system of claim 1 in which there is at least one longitudinal beam having an L-type cross-section with an upright L-portion extending upwards from said flat support portion and being positioned at the outer edge portion of the longitudinal beam, said upright L-

portion being arranged at an angle relative to said main plane of the frame or slab so as to form a sloping front and/or internal surface of said board retaining the earth material, said sloping being chosen so as to form an overhang to the front side of the wall.

DISCUSSION

Summary judgment is appropriate where the "pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law." Rule 56(c), Fed. R. Civ. P. It is well-established that this standard is egually applicable in patent infringement actions. See Johnston v. IVAC Corp., 885 F.2d 1574, 1576-77 (Fed. Cir. 1989).

Literal infringement is determined by a two-step analysis.

First, the claims of the patent must be properly construed to ascertain their scope and meaning. Second, a determination must

be made as to whether the accused product or process infringes the asserted claim as properly construed. See Vitronics Corp. v. Conceptronic, Inc., 90 F.3d 1576, 1581 (Fed. Cir. 1996) (citing Markman v. Westview Instruments, Inc., 52 F.3d 967, 976 (Fed. Cir. 1995), aff'd, 517 U.S. 370 (1996)).

I. Claim Construction A. Applicable Legal Standards for Construing Claims Courts have the "power and obligation to construe as a matter of law the meaning of language used in patent claims." Markman, 52 F.3d at 979. To determine the proper construction of a claim, the court first considers the intrinsic evidence — the claims, the written description, and if in evidence, the prosecution history. See Vitronics, 90 F.3d at 1582.

Even within the intrinsic evidence, however, "there is a hierarchy of analytical tools." Digital Biometrics, Inc. v. Identix, Inc., 149 F.3d 1335, 1344 (Fed. Cir. 1998). "The actual words of the claim are the controlling focus." Id. Words in a claim are generally given their ordinary and customary meaning, unless the patentee specifically defined those words differently in the patent specification. See Vitronics, 90 F.3d at 1582. The specification is, therefore, considered to determine whether the patentee used any words in a manner inconsistent with their ordinary meaning. See id. Likewise, the prosecution history is considered because "it may contain contemporaneous exchanges

between the patent applicant and the PTO about what the claims mean." Digital Biometrics, 149 F.3d at 1344. If the intrinsic evidence of record unambiguously describes the scope of the

patented invention, "resort to ’

'extrinsic' evidence, such as

treatises and technical references, as well as expert testimony when appropriate, should not be necessary." Id.

B. The Legal Construction of Claim 3 of the ’

'245 Patent

Because interpretation of patent claims turns on the actual wording of the claim, that is the place to start. As in many patent cases, the meaning of only a few words in the claims is at issue here. See, e.g.. Digital Biometrics, 149 F.3d at 1345. The parties have identified the meaning of the phrases "upright L-portion," "from said flat support portion," "arranged at an angle," and "front side of the wall" of claim 3 as being in dispute.

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