Transco Products Inc. v. Performance Contracting, Inc.

821 F. Supp. 537, 28 U.S.P.Q. 2d (BNA) 1739, 1993 WL 170414, 1993 U.S. Dist. LEXIS 7080
District Court, N.D. Illinois·Decided May 18, 1993·No. No. 89 C 8001·Published·Cited by 5 cases

Opinion

MEMORANDUM OPINION AND ORDER

SHADUR, District Judge.

This Court has now been thrice blessed (?) with what have been labeled summary judgment motions in this action between Transco Products Inc. (“Transco”) and Performance Contracting, Inc. and Performance Contracting Group, Inc. (collectively “Performance Contracting,” treated as a singular noun). Although the first two sets of submissions did not lead to a definitive resolution of the lawsuit, this third time proves the charm.

Transco originally filed suit (1) seeking a declaratory judgment of invalidity, noninfringement and unenforceability of United States Patent No. 4,009,735 (the “Pinsky patent”) owned by Performance Contracting, and (2) relatedly charging Performance Contracting with infringement of Transco’s United States Patent No. 3,941,159 (the “Toll patent”)/ Performance Contracting counterclaimed, seeking a declaratory judgment of invalidity and unenforceability of the Toll patent and charging Transco with infringement of the Pinsky patent.

This Court’s May 12,1992 “Opinion 1” (792 F.Supp. 594) (1) denied Performance Contracting’s motion for summary judgment on the issue of invalidity - of the Toll patent and (2) granted Performance Contracting’s motion for summary judgment as to its noninfringement of the Toll patent. Then the January 28, 1993 “Opinion 2” (813 F.Supp. 613) dealt with another set of cross-motions, [540] this time respectively seeking a judgment of infringement or noninfringement of'the Pin-sky patent by Transco’s products. Opinion 2 denied both those motions.1

In briefing that last set of motions, Transco raised but did not squarely address the possibility of the Pinsky patent’s invalidity because of its noncompliance with 35 U.S.C. § 112 (“Section 112”): that is, whether inventor Pinsky had failed to disclose the best mode of practicing the invention. At this Court’s request the parties have now confronted that issue in the form of Transco’s motion for partial summary judgment under Fed.R.Civ.P. (“Rule”) 56,2 asserting invalidity of the Pinsky patent on that ground. Their briefing has been more extensive than the three-memorandum pattern normally followed on any motion other than simultaneous cross-motions:

1. On February 10, 1993 each side submitted an initial memorandum: Transco’s (cited “P. Mem. 1 at—”) in support of its Rule 56 motion, and Performance Contracting’s (its “D. Mem. 1”) also addressing the best mode question.
2. On February 24 Performance Contracting filed its memorandum (cited “D. Mem. 2 at —”) in opposition to Transco’s summary judgment motion.3
3. On March 15 Transco filed its reply memorandum (cited “P. Mem. 2 at —”) in support of its motion.
4. Finally, Performance Contracting requested and was granted leave to file a surreply memorandum, which it submitted on April 9.

Based on its consideration of all the parties’ filings, this Court grants Transco’s motion.

Rule 56 Standards

Rule 56 principles impose on the movant the burden of establishing the lack of a genuine issue of material fact (Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986)). For that purpose this Court is “not required to draw every conceivable inference from the. record—only those inferences that are reasonable”—in the light most favorable to the nonmovant (in this case Performance Contracting) (Bank Leumi Le-Israel, B.M. v. Lee, 928 F.2d 232, 236 (7th Cir.1991) (citations omitted)).

This District Court’s General Rules 12(M) and 12(N) require factual statements in support of and in opposition to Rule 56 motions, and both sides have once again tendered such statements.4 Transco’s statement in support of its motion is cited as “P. 12(m) —while Performance Contracting’s responsive statement is cited as “D. 12(n) ¶—.”

Facts

On October 2, 1974 Gordon Pinsky (“Pin-sky”) filed a continuation of his original October 24, 1973 application with the United States Patent Office covering a pipe insulation design (P. 12(m), D. 12(n) ¶¶4, 5). On March 1, 1977 the Pinsky “Thermal Insulation” patent (the “Pinsky patent”) issued, containing these four claims (P.Ex. 35, col. 4):

1. Readily removable and replaceable rewettable thermal insulation for use on vessels and piping within reactor containment areas of nuclear power plants comprising high temperature resistant mineral [541] fiber or glass fiber encapsulated within rewettable, high temperature resistant, asbestos -free glass cloth held in place with a plurality of spaced quick release and engage fasteners, wherein the glass cloth can withstand repeated wettings from spray systems within the reactor containment areas of nuclear power plants and wherein the fasteners are two woven nylon, hook and loop mating strips; wherein the glass cloth has a finish of a leachable, organic silicate carried in a fatty and mineral oil vehicle.
2. Thermal insulation according to claim 1 wherein the encapsulated fiber is a fine fiber and is in the form of tangled or felted mats.
3. Thermal insulation according to claim 2 wherein the mats are quilted.
4. Thermal insulation according to claim 1 wherein the strips comprise a hook strip covered with stiff little hooks and a loop strip covered with tiny, soft loops.

Transco began marketing blanket-type insulation for nuclear power plant containment areas as early as 1982 (D.Ex.M). In three letters dated February 13, March 8 and September 11, 1989 (Complaint Exs. B, C, D)‘ Performance Contracting notified Transco that it believed Transco was infringing the Pinsky patent. That led to Transco’s October 25, 1989 Complaint in this action.

Best Mode

In exchange for the fixed term of monopoly rights granted by the patent laws, Section 112 requires that “[t]he specification shall contain a written description of the invention ... and shall set forth the best mode contemplated by the inventor of carrying out his invention.” Its “purpose ... is to restrain inventors from applying for a patent while at the same time concealing from the public preferred embodiments their inventions which they have in fact conceived” (Wahl Instruments, Inc. v. Acvious, Inc., 950 F.2d 1575, 1579 (Fed.Cir.1991)). There are two steps to a best mode analysis (Chemcast Corp. v. Arco Industries Corp., 913 F.2d 923, 927-28 (Fed.Cir.1990)):

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Transco Products Inc. v. Performance Contracting, Inc., 821 F. Supp. 537, 28 U.S.P.Q. 2d (BNA) 1739, 1993 WL 170414, 1993 U.S. Dist. LEXIS 7080 (N.D. Ill. 1993).

821 F. Supp. 537 (Transco Products Inc. v. Performance Contracting, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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