Veolia Water Solutions & Technologies North America, Inc. v. Aquatech International Corp.

123 F. Supp. 3d 695, 2015 U.S. Dist. LEXIS 106717, 2015 WL 4863594
District Court, W.D. Pennsylvania·Decided August 13, 2015·No. Civil Action No. 10-484·Published·Cited by 3 cases

Opinion

MEMORANDUM OPINION

CONTI, Chief Judge.

In this action, Veolia Water Solutions & Technologies North American, Inc.1 (“Veolia”) seeks a declaratory judgment that two patents owned by Debasish Muk-hopadhyay (“Mukhopadhyay”) and exclusively licensed to Aquatech International Corporation * (“Aquatech International,” and together with Mukhopadhyay, “Aqua-tech”), are not infringed by Veolia’s OPUS process and are invalid. (ECF No. 60; ECF No. 267 ¶3.) The two patents identified in Veolia’s declaratory judgment complaint are United States Patent Number 5,925,255 (the “'255 Patent”), and United States Patent Number 6,537,456 (the “'456 Patent”). (ECF No. 60 ¶9; ECF No. 63 at 15-16.) Veolia’s complaint also asserts state law tort claims, sounding in tortious interference with prospective contractual relations and defamation, against Aquatech. (ECF Nos. 60.) Aquatech, in response to Veolia’s complaint, asserts counterclaims that accuse Veolia’s OPUS process of infringing the HERO patents. (ECF No. 63; ECF No. 267 ¶ 4.)

Pending before the court are three motions for summary judgment: (1) Veolia’s motion for judgment as a matter of law that it does not infringe the '255 Patent or the '456 Patent (ECF No. 241); (2) Aqua-tech’s motion for judgment as a matter of law that Veolia is not entitled to relief on its state law tort claims (ECF No. 246); and (3) Aquatech’s motion for judgment as a matter of law that the '255 Patent is not obvious (ECF No. 279). All three motions have been fully briefed and will be disposed of in this opinion.2 For the reasons set forth below, all motions, with one exception, will be denied because there are evidentiary disputes about material facts that require resolution by a jury. The sole exception is that this court grants Veolia’s [698] motion for summary judgment of nonin-fringement with respect to the OPUS water treatment system installed at a project for Kennecott .Eagle -Minerals Company because there is no factual or legal dispute that infringement, of claim 98 of the '255 Patent must be determined by measuring the percentage of total organic carbon (“TOC”) removed at the point .after the solution passes through the first reverse osmosis system. See infra Sec. III.B.2(a).

I. Factual Background

The two patents identified in the parties’ initial pleadings are the '255 Patent and the '456 Patent.' (ECF No. 60 ¶ 9; ECF No. 63 at 15-16.) These patents are referred to as the HERO patents and relate to reverse osmosis (“RO”) technology, which purifies water by pumping-feedwa-ter, under pressure, through a semipermeable membrane. (ECF No. 127 at 2.) The membrane allows water to’ pass through, but is able to prevent passage of, or reject, most solutes dissolved in the water. (Id.) This process concentrates the feedwater into , a reject stream of solute-containing water that does not pass through the membrane, and produces a product, or permeate, stream of relatively pure water that passes through the membrane. (Id.) Aquatech calls its brand of RO water treatment the HERO process. Veolia’s competing brand of RO water treatment is called the OPUS process. (ECF Nos. 60 and 63 ¶ 11.) The OPUS process implements an improvement upon United States Patent- Number 5,250,185, issued to Fansbeng Tao (the “Tao Patent”), which is exclusively licensed to Veo-lia. (ECF Nos. 60 and 63 ¶¶ 21-22.) HERO and OPUS are trademarks federally registered to Mukhopadhyay and Veolia, respectively, for goods and services related to wastewater treatment systems. U.S. Trademark No. 78,204,498 (HERO), U.S. Trademark No. 75,977,148 (HERO), and U.S. Trademark No. 77,248,615 (OPUS).

In 2009, Veolia and Aquatech submitted competing bids to install a water treatment system at a plant owned by Idaho Power Company (“Idaho Power”). Kiewit Power Engineers (“Kiewit”) was the general contractor on the project. (ECF Nos. 60 and 63 ¶¶ 34-37; ECF No. 302 ¶5.) On December 11, 2009, Aquatech International sent a letter to Kiewit, stating Mukhopa-dhyay’s and its belief that the OPUS system being proposed to Idaho Power by Veolia infringed the HERO patents (the “Kiewit Letter”). (ECF No. 60-6 at 2-3; ECF Nos. 60 and 63 ¶38; ECF No. 302 ¶¶ 5, 8, 20.) Veolia contends that the Kiewit Letter included false statements and misrepresentations about the HERO patents, the OPUS process, and the validity of the Tao Patent. (ECF No, 60 ¶¶ 34-71, 84-110.) Aquatech was awarded the Idaho Power contract after the Kiewit Letter was sent. (ECF Nos. 60 and 63 ¶ 59; ECF No. 302 ¶ 26.)

II. Legal Authority

Summary judgment may only be granted where the moving party shows that there is no genuine dispute as to any material fact, and that judgment' as a matter of law is warranted. Fed. R. Civ. P. 56(a). Pursuant to Federal Rule of Civil Procedure 56, the court must enter summary judgment against a party who fails to make a showing sufficient to establish an element essential to his or her case, and on which he or- she will bear the burden of proof at trial. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). In evaluating the evidence, the court must interpret the facts in the light most favorable to the nonmoving party, drawing all reasonable inferences in his or her favor. Watson v. Abington Twp., 478 F.3d 144, 147 (3d Cir.2007). The burden is initially on the moving party to demonstrate that the evidence contained in the reeord does not create a genuine issue of [699] material fact. Conoshenti v. Pub. Serv. Elec. & Gas Co., 364 F.3d 135, 140 (3d Cir.2004). A dispute is “genuine” if the evidence is such that a reasonable trier of fact could render a finding in favor of the nonmoving party. McGreevy v. Stroup, 413 F.3d 359, 363 (3d Cir.2005).

Where the nonmoving party will bear the burden of proof at trial, the moving party may meet its burden by showing that the admissible evidence contained in the record would be insufficient to carry the nonmoving party’s burden of proof. Celotex Corp., 477 U.S. at 322, 106 S.Ct. 2548. Once the moving party satisfies its burden, the burden shifts to the nonmov-ing party, who must go beyond his or her pleadings and designate specific facts by the use of affidavits, depositions, admissions or answers to interrogatories showing that there is a genuine issue of material fact for trial. Id. at 324, 106 S.Ct. 2548. The nonmoving party cannot defeat a well-supported motion for summary judgment by simply reasserting unsupported factual allegations contained in his or her pleadings. Williams v. Borough of West Chester, 891 F.2d 458, 460 (3d Cir.1989).

III. The Motions for Summary Judgment

A. Aquatech’s Motion — State Law Tort Claims

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Veolia Water Solutions & Technologies North America, Inc. v. Aquatech International Corp., 123 F. Supp. 3d 695, 2015 U.S. Dist. LEXIS 106717, 2015 WL 4863594 (W.D. Pa. 2015).

123 F. Supp. 3d 695 (Veolia Water Solutions & Technologies North America, Inc. v. Aquatech International Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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