Tulip Computers International B v. v. Dell Computer Corp.

262 F. Supp. 2d 358, 2003 WL 21000873
District Court, D. Delaware·Decided May 1, 2003·No. CIV.A.00-981-KAJ·Published·Cited by 2 cases

Opinion

*359 MEMORANDUM ORDER

JORDAN, District Judge.

I. INTRODUCTION

This is a patent infringement lawsuit involving U.S. Patent No. 5,594,621 (issued Jan. 14, 1997) (“the ’621 patent”) owned by Tulip Computer International B.V. (“Tulip”), a Dutch corporation with its principal place of business in the Netherlands. 1 (Docket Item [“D.I.”] 1.) On November 24, 2000, Tulip filed its complaint, asserting that Dell Computer Corporation (“Dell”), a Delaware corporation with its principal place of business in Texas, is infringing the ’621 patent. (Id.) Dell answered Tulip’s allegations of infringement on June 19, 2001, denying Tulip’s claims of infringement and asserting the invalidity and the unenforceability of the ’621 patent. (D.I.6.)

The magistrate judge issued a February 4, 2003, Report and Recommendation (“the Report”) (D.I.454) and accompanying Order (D.I. 453) addressing, among other things, Dell’s motion for partial summary judgment on failure to mark and nonin-fringement (D.I.344) and Tulip’s cross-motion for summary judgment on failure to mark (D.I 363). Both Tulip and Dell have objected to the Report. 2 (D.I. 460; D.I. 463.) Accordingly, the Court has conducted a de novo review, informed by the parties’ submissions to date, to address those objections. The Court concludes that Tulip’s objection is partially well-founded and that the Report should be rejected in so far as it recommends that Tulip’s damages be limited under 35 U.S.C. § 287(a).

II. BACKGROUND

The ’621 patent is entitled “Motherboard for a Computer of the AT Type, and a Computer of the AT Type Comprising Such Motherboard.” The invention concerns the placement of a riser card connector at a specific location on a computer motherboard and the arrangement of expansion board connectors on a riser card. (D.I. 454; see also ’621 Patent at col. 4 I. 36 to col. 5'I. 61.) On October 1, 1994, Tulip entered into a cross-license agreement (“the 1994 Agreement”) with International Business Machines Corporation (“IBM”) under which IBM was granted a license pertaining to “all [Tulip] patents ... issued or issuing on patent applications entitled to an effective filing date prior to October 1st, 1999.... ” (D.I. 346, Ex. 4 at § 1.8.) On January 1, 1998, the 1994 Agreement was replaced with a new cross-licensing agreement between Tulip and IBM (“the 1998 Agreement”) granting IBM a license pertaining to “all patents ... of TULIP ... issued or issuing on patent applications entitled to an effective filing date prior to December 31, 2002....” (Id., Ex. 5 at § 1.3.) The ’621 patent was filed with the United States Patent and Trademark Office on June 13, 1995 and issued on January 14, 1997 and was, therefore, covered by the 1994 Agreement and is now covered by the 1998 Agreement.

Of importance to the issue presently before the Court, the 1998 Agreement contains the following provisions:

*360 2.1 Each party, as Grantor, on behalf of itself and its Subsidiaries grants to the other, as Grantee, a worldwide, nonexclusive License under Grantor’s Licensed Patents:
(a) to make (including the right to use any apparatus and practice any method in making), use, import, offer for sale and lease, sell and/or otherwise transfer Grantee’s Licensed Products; and
(b) to have Grantee’s Licensed Products made by another manufacturer for the use and/or lease, sale or other transfer by Grantee only when the conditions set forth in Section 2.2 are met.
2.2 The license to have products made granted in Section 2.1(b) to Grantee: (a) shall only apply when the specifications for such Grantee’s Licensed Products were created by Grantee (either solely or jointly with one or more third parties);
(d) shall not apply to any products in the form manufactured or marketed by said other manufacturer prior to Grantee furnishing of said specifications.

(Id., Ex. 5 at §§ 2.1, 2.2.)

Section 1.7 of the 1998 Agreement describes products subject to Section 2.1 of the. agreement as “IHS Product.” (Id., Ex. 5 at § 1.7.) An “IHS Product” “mean[s] an Information Handling System” (Id., Ex. 5 at § 1.2) which, in turn, is defined as “any instrumentality or aggregate of instrumentality primarily designed to compute, classify, process, transmit, receive, retrieve, originate, switch, store, display, manifest, measure, detect, record, reproduce, handle or utilize any form of information, intelligence or data for business, scientific, control or other purposes.” (Id., Ex. 5 at § 1.1.) Computer and computer components covered by the ’621 patent fit the category of “IHS Products” as defined in Section 1.1 of the 1998 Agreement.

Patentees, and persons making, offering for sale, or selling within the United States any patented article for or under them, or importing any patented article into the United States, may give notice to the public that the same is patented, either by fixing thereon the word “patent” or the abbreviation “pat.”, together with the number of the patent, or when, from the character of the article, this can not be done, by fixing to it, or to the package wherein one or more of them is contained, a label containing a like notice. In the event of failure so to mark, no damages shall be recovered by the pat-entee in any action for infringement, except on proof that the infringer was notified of the infringement and continued to infringe thereafter, in which event damages may be *361 recovered only for infringement occurring after such notice. Filing of an action for infringement shall constitute such notice. 35 U.S.C. § 287(a) (2003).

*360 On July 21, 1994, IBM entered into a remarketing agreement with Dell to act as a reseller of computer equipment manufactured by Dell. (Id., Ex. 12.) Pursuant to this agreement, IBM made off-the-shelf purchases of products manufactured by Dell and resold them to its customers. 3 (D.I. 345 at 5-8.) Tulip asserts that some of those products infringe its ’621 patent. 4 (D.I. 364 at 1.) Dell asserts that IBM’s sale of Dell products that allegedly infringe the ’621 patent creates a limitation on Tulip’s potential damages in this case. (D.I. 344.) Dell reasons that because IBM, as Tulip’s licensee, sold those products without placing a patent mark on them, the provisions of 35 U.S.C. § 287(a) are applicable. 5 (Id.) Accordingly, Dell moved the

Free access — add to your briefcase to read the full text and ask questions with AI

Tulip Computers International B v. v. Dell Computer Corp., 262 F. Supp. 2d 358, 2003 WL 21000873 (D. Del. 2003).

262 F. Supp. 2d 358 (Tulip Computers International B v. v. Dell Computer Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Carnegie Mellon University v. Marvell Technology Group, Ltd.
906 F. Supp. 2d 399 (W.D. Pennsylvania, 2012)
Inline Connection Corp. v. AOL Time Warner Inc.
465 F. Supp. 2d 312 (D. Delaware, 2007)