Tavory v. Ntp, Inc.

297 F. App'x 976
CourtCourt of Appeals for the Federal Circuit
DecidedOctober 27, 2008
Docket2007-1527
StatusUnpublished
Cited by11 cases

This text of 297 F. App'x 976 (Tavory v. Ntp, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tavory v. Ntp, Inc., 297 F. App'x 976 (Fed. Cir. 2008).

Opinions

MICHEL, Chief Judge.

Plaintiff-Appellant Oren Tavory appeals from the grant of summary judgment in favor of Defendant-Appellee NTP, Inc., on his claim for correction of inventorship of U.S. Patent Nos. 5,436,960; 5,438,611; 5,625,670; 5,631,946; 5,819,172; 6,076,451; and 6,317,592 (collectively, “patents-in-suit”).1 Tavory also appeals the district court’s dismissal of his state law unjust enrichment claim, and its denial of leave to amend the complaint to add a claim for “federal equitable relief.”

We affirm the grant of summary judgment because Tavory failed to raise a genuine issue of material fact as to his alleged contribution to the conception of the inventions claimed in the patents-in-suit. We also affirm; the district court’s dismissal of Tavory’s unjust enrichment claim because it is preempted by 35 U.S.C. § 262. Finally, we affirm the district court’s denial of leave to amend the complaint because the court did not abuse its discretion in holding that Tavory’s “federal equitable relief” claim was duplicative of his already-pled claims and thus futile.

I. BACKGROUND

The facts of this case are related to those in NTP, Inc. v. Research in Motion, Ltd., 418 F.3d 1282 (Fed.Cir.2005) (“RIM litigation”). In late 1989, Tavory was hired as a consultant by Telefind, a small telecommunications start-up based in Florida that was engaged in the operation of a nationwide paging network. Tavory was an experienced computer programmer, particularly in the UNIX operating system environment. At that time, Tom Campana was an executive at Telefind but was also the president of ESA, a small engineering consulting firm based in Chicago. ESA had a close working relationship with Tele-find at all times relevant to this appeal.

Telefind employees used an internal email system in 1990. This e-mail system was not connected to the Internet, as it existed at the time, but operated entirely on an internal computer network. Tele-find also issued its employees pagers. Pri- or to 1990, these pagers were only used to receive traditional phone number pages. In early 1990, Telefind employees began to use a new capability wherein they could address e-mails from their usual computer e-mail programs to pagers as well as other computers. When such an e-mail was sent, the recipient pager would beep and receive the e-mail automatically without any action from the user. The e-mail would be displayed serially across the single-line display of the pager.

According to former Telefind employees, Tavory was generally considered at Tele-find to be the person who had created the computer program that provided this new e-mail-to-pager functionality. He demonstrated the first such e-mails to colleagues at Telefind, and the President of Telefind, Andy Andros, publicly acknowledged Tavo-ry’s work at a Telefind staff meeting in early 1990.

Also in 1990, Campana and others at Telefind became involved in an effort to [978]*978secure new investment from AT & T. These efforts resulted in a development project wherein Telefind and ESA worked to create a system for AT & T to take email from a conventional e-mail system, transmit it wirelessly to a pager via the Telefínd network, and then transfer the email from the pager to a laptop computer. Tavory was involved as a programmer for this project, as were Mike Ponschke and Gary Thelen, two programmers at ESA. The project team was able to create a working system before November 1990 when Campana demonstrated it at a large trade show to much acclaim.

Nevertheless, Telefínd ran out of funds in 1991 and began to collapse. Tavory thus left Telefínd. Meanwhile, Campana and Telefind’s attorney, Donald Stout, formed NTP in early 1991. In May 1991, Stout filed a patent application on behalf of Campana generally claiming the system Telefind and ESA had developed during the AT & T project. Campana, Ponschke, and Thelen were listed as co-inventors. Among other things, Stout appended a copy of code Tavory helped write for the AT & T project to the application. Ultimately, this patent application resulted in all of the patents at issue in this appeal.

In November 2001, NTP filed suit against Research in Motion, Ltd. (“RIM”) accusing RIM’s Blackberry systems of infringing the same patents at issue here. See NTP, Inc., 418 F.3d at 1287, 1290 (Fed.Cir.2005). As part of that litigation, in 2002, Tavory was deposed as a witness for NTP. He did not make any claim of inventorship at his deposition. NTP won a jury verdict awarding over $50 million in damages, and the district court awarded a permanent injunction, which it stayed pending appeal.2 On appeal, this court affirmed-in-part, reversed-in-part, vacated-in-part, and remanded. Id. at 1287. RIM elected to settle and agreed to take a license to resolve all past and future infringement. The settlement paid NTP $612.5 million. Campana died prior to the settlement.

In September 2006, less than a year after the RIM settlement, Tavory filed the present suit claiming: (1) correction of inventorship to add Tavory as a co-inventor to each of the patents at issue, (2) copyright infringement, and (3) unjust enrichment. NTP moved to dismiss the copyright and unjust enrichment claims. On December 26, 2006, the district court dismissed the state law unjust enrichment claim as preempted by both federal patent and copyright law. Tavory soon thereafter moved for leave to amend his complaint to add a claim for “federal equitable relief,” but the district court denied leave on March 6, 2007, on futility grounds. After the close of discovery, NTP moved for summary judgment as to the inventorship and copyright claims. The district court granted summary judgment, holding that (1) it lacked subject matter jurisdiction over the copyright infringement claim because Tavory obtained his copyright registration using a facially inadequate copy of his software, thus rendering the registration invalid; (2) in the alternative, NTP was entitled to judgment on the copyright claim under the doctrines of equitable estoppel, judicial estoppel, laches, and fair use; and (3) Tavory had failed to present sufficient independent evidence to corroborate his inventorship allegations. Tavory v. NTP, Inc., 495 F.Supp.2d 531 (E.D.Va.2007). Tavory then timely filed this appeal.3 We have jurisdiction under 28 U.S.C. § 1295(a)(1).

[979]*979II. DISCUSSION

A. Inventorship

The district court granted summary judgment rejecting Tavory’s inventorship claim, holding that Tavory had failed to adduce sufficient independent evidence corroborating his own testimony that he was a co-inventor of the patents-in-suit to raise a genuine issue of material fact. We review a district court’s grant of summary judgment de novo. Teleflex, Inc. v. Ficosa N. Am. Corp., 299 F.3d 1313, 1323 (Fed.Cir.2002).

A patent is presumed to name the correct inventors, thus a putative unnamed co-inventor must prove his inventorship by clear and convincing evidence. Hess v. Adv. Cardiovascular Sys., Inc.,

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