Unitherm Food Systems, Inc. And Jennie-O Foods, Inc. v. Swift-Eckrich, Inc. (Doing Business as Conagra Refrigerated Foods)

375 F.3d 1341
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 14, 2004
Docket03-1472, 03-1473
StatusPublished
Cited by55 cases

This text of 375 F.3d 1341 (Unitherm Food Systems, Inc. And Jennie-O Foods, Inc. v. Swift-Eckrich, Inc. (Doing Business as Conagra Refrigerated Foods)) 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
Unitherm Food Systems, Inc. And Jennie-O Foods, Inc. v. Swift-Eckrich, Inc. (Doing Business as Conagra Refrigerated Foods), 375 F.3d 1341 (Fed. Cir. 2004).

Opinion

GAJARSA, Circuit Judge.

Swift-Eckrich, Inc. (d/b/a ConAgra Refrigerated Foods) (“ConAgra”) appeals the judgment of the United States District Court for the Western District of Oklahoma following a jury verdict, granting the claims of Unitherm Food Systems, Inc. (“Unitherm”) and of Jennie-0 Foods, Inc. (“Jennie-O”) (collectively, “plaintiffs”) that ConAgra was liable for attempted monopolization and for tortious interference with prospective economic advantage, and that same court’s earlier partial summary judgment finding U.S. Patent No. 5,952,027 (“the '027 Patent”) invalid and unenforceable under 35 U.S.C. § 102(b) 1 and dismissing ConAgra’s counterclaim for infringement. Unitherm Food Systems, Inc. & Jennie-O Foods, Inc., v. Swift-Eckrich, Inc., Case No. CIV-01-347-C (W.D.Okla, March 27, 2003).

The district court construed the disputed claim terms in the '027 Patent correctly, and properly found the '027 Patent invalid and unenforceable for reasons of both prior use and prior sale under 35 U.S.C. § 102(b). The district court was also correct, under Oklahoma law, in allowing the jury to decide the issue of tortious interference and in accepting the jury’s findings on both liability and damages. The district court erred, however, in allowing the jury to decide Unitherm’s antitrust claims despite the total absence of economic evidence capable of sustaining those claims. We therefore affirm-in-part, vacate-in-part, and remand to the district court for further proceedings consistent with this opinion.

BACKGROUND

A. The '0%7 Patent

On May 11, 1998, a ConAgra engineer named Prem Singh filed a patent application for “A Method for Browning Precooked Whole Muscle Meat Products” with the United States Patent and Trademark Office (“PTO”). That application became the '027 Patent, which the PTO issued to Singh on September 14, 1999. Singh assigned the patent to ConAgra.

In early 2000, ConAgra wrote to several companies who sell equipment and/or processes for preparing and browning precooked meats. ConAgra attached a copy of the '027 Patent to that letter, which included the explicit warning: “Others in the industry may approach your company regarding this patent, and we would appreciate it if you would inform them that we intend to aggressively protect all of our rights under this patent.”

*1345 Unitherm, which describes itself as “a manufacturer and supplier of equipment and processes used in the food industry,” did not receive one of ConAgra’s letters. Unitherm, however, believed — and asserts as the basis of this suit — that its President, David Howard, had conceived the process claimed in the '027 Patent and reduced it to practice as the “Unitherm process” no later than September 1993.

In July 2000, ConAgra sent out another round of letters, this set to its direct competitors in the pre-cooked meats business. ConAgra attached both a copy of the patent and a blank license to this letter, and announced that it was “making the '027 Patent, and corresponding patents that may issue available for license at a royalty rate of 10<f per pound, adjusted for inflation, to all responsible parties who have not infringed these patents.” No one licensed the '027 Patent on these or any other terms.

Jennie-0 (a division of Hormel), a direct ConAgra competitor in the pre-cooked meats business, received one of these letters. Some time earlier, Jennie-0 had installed Unitherm equipment at its plant in Montevideo, MN, where it used the Unitherm process to brown roughly 18,-000,000 pounds of meat per year. Upon receiving ConAgra’s letter, Jennie-0 undertook an investigation to determine its rights and responsibilities. Jennie-0 executives later testified that their investigation led them to conclude that the Unit-herm process and the '027 Patent process were one and the same, that David Howard had invented that process no later than 1993, and that unless a court invalidated the '027 Patent, Jennie-0 would be infringing it by using the Unitherm process. According to Jennie-0 executive Robert Wood, ConAgra’s letter had “a chilling effect on any further possibility of Unitherm selling its products to Jennie-O.”

On February 23, 2001, Unitherm and Jennie-0 together sued ConAgra alleging numerous causes of action. Only three causes of action are relevant to this appeal: (1) a Declaratory Judgment Action for invalidity and unenforceability of the '027 Patent; (2) a state law claim for tortious interference with Unitherm’s prospective economic relationships; and (3) Unit-herm’s Walker Process claim that ConA-gra violated Section 2 of the Sherman Act. 2 All of the plaintiffs’ other claims were either dismissed or otherwise resolved in ways that the parties do not appeal. In addition, ConAgra counterclaimed that Jennie-0 infringed the '027 Patent. The district court granted Jennie-0 summary judgment of noninfringement. ConAgra does not appeal the summary judgment of ■ noninfringement.

B. Summary Judgment of Invalidity

Both parties moved for dismissal of and/or for summary judgment on various claims. The district court first considered the plaintiffs’ claim that the '027 Patent is invalid and unenforceable under § 102(b). The '027 Patent includes 36. claims. Claims 1 and 20 are independent. The *1346 other 34 claims are dependent. The independent claims read:

1. A process for browning precooked, whole muscle meat products comprising: coating a browning liquid pyrolysis product onto at least a portion of the surface of a precooked whole muscle meat product; and then exposing the coated surface to an energy source and selectively heating the coated surface of the whole muscle meat product at a temperature and for a time sufficient to develop a golden-brown col- or on the exposed surface, without substantial shrinking the precooked, whole muscle meat product.

'027 Patent, col. 8, 11. 4-14 (emphasis added).

20. A process for browning a precooked chicken breast or a turkey breast comprising: coating at least a portion of the surface of a precooked chicken breast or a precooked turkey breast with from about 0.05 to about 1.0 wt. %, based on the weight of the breast, of a browning liquid pyrolysis product obtained from hardwoods or sugars; and then selectively heating the coated surface of the breast in an environment having a temperature greater than about 60[deg] C. with energy provided by a circulating air oven, an impinging air oven, a laser light source, a medium wavelength energy infra red radiation source or a source of microwave radiation for a time sufficient to develop a golden-brown color on the coated surface, where the shrinkage of the precooked, whole muscle meat product is less than 4 wt. % based on the initial weight of the meat product.

'027 Patent, col. 9, 11. 17-33 (emphasis added).

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Bluebook (online)
375 F.3d 1341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/unitherm-food-systems-inc-and-jennie-o-foods-inc-v-swift-eckrich-inc-cafc-2004.