Virginia Panel Corp. v. Mac Panel Co.

887 F. Supp. 880, 1995 U.S. Dist. LEXIS 8265, 1995 WL 355606
CourtDistrict Court, W.D. Virginia
DecidedJune 5, 1995
DocketCiv. A. 93-0006-H
StatusPublished
Cited by10 cases

This text of 887 F. Supp. 880 (Virginia Panel Corp. v. Mac Panel Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Virginia Panel Corp. v. Mac Panel Co., 887 F. Supp. 880, 1995 U.S. Dist. LEXIS 8265, 1995 WL 355606 (W.D. Va. 1995).

Opinion

MEMORANDUM OPINION

MICHAEL, District Judge.

The plaintiff in this ease, Virginia Panel Corporation (VPC), filed a complaint and amended complaint against the defendant, Mac Panel Company (MPC), for patent infringement and false advertising. MPC responded with several counterclaims and affirmative defenses. The court decided several of the issues at the summary judgment stage and bifurcated the trial into two phases: 1) patent infringement issues; and 2) all remaining issues. Following a jury trial of the patent infringement phase of this case in which the jury found that MPC had willfully infringed two of VPC’s patents, the parties have filed several post-trial motions. The second trial has not yet occurred. For each motion filed by VPC, VPC has submitted a supporting memorandum, MPC has submitted a response to the motion, VPC has replied to MPC’s response to the motion, MPC has objected to VPC’s reply to MPC’s response to the motion, and VPC has replied to MPC’s objection to VPC’s reply to MPC’s response to the motion. Although some of the motions are related, the court will address each in turn.

I.

Although some of the issues remain to be decided at the second trial, VPC has submitted a motion for entry of judgment as to the patent infringement issues. Fed. R.Civ.P. 54(b) states:

When more than one claim for relief is presented in an action, ... the court may direct the entry of final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reason for delay and upon an express direction for the entry of judgment.

In applying Rule 54(b), the court must determine whether there is a “final judgment,” an ultimate disposition of an individual claim; and if so, whether there is any just reason for delay. Curtiss-Wright Corp. v. General Electric Co., 446 U.S. 1, 6, 8, 100 S.Ct. 1460, 1463, 1464, 64 L.Ed.2d 1 (1980). VPC cites W.L. Gore & Assocs., Inc. v. IMPRA, Inc., 975 F.2d 858 (Fed.Cir.1992), in support of its position. In W.L. Gore, the court bifurcated the plaintiffs patent infringement claims from the defendant’s patent misuse defense and antitrust counterclaims, just as in this case. The first phase of the trial, however, resulted in findings that the defendant had not infringed the patent, that the patent was invalid, and that the plaintiff was guilty of laches. The court then entered final judgment on the patent infringement claim to allow the plaintiff to appeal the decision. The Federal Circuit stated that courts “must focus on both the finality of the judgment and the separateness of the claims for relief.” Id. at 862. Applying this standard, the court found that the entry of final judgment as to the patent infringement claim was proper because the patent claim was finally adjudicated and the claims were separate, despite any factual overlap with the patent misuse defense. Id. at 864. Notwithstanding VPC’s assertion that this case is factually indistinguishable from W.L. Gore, this case presents a different situation. In W.L. Gore, the plaintiff lost on the patent infringement claim, whereas here VPC’s patent has been found to be infringed. The patent misuse defense still could affect the patent infringement claim by making the patent unenforceable. In W.L. Gore, however, the patent misuse defense became superfluous because the defendant already had prevailed on the patent infringement claim. See id. at 863.

VPC contends that MPC’s patent misuse defense is no longer in the case be *884 cause MPC wanted to assert a patent misuse defense to infringement during the first trial and the court did not permit it. Despite VPC’s belief to the contrary, MPC consistently has asserted patent misuse as a defense to patent infringement. The court bifurcated the patent misuse defense from the patent infringement trial and decided to try that issue in the second trial because it is much more factually related to MPC’s antitrust counterclaims than to VPC’s patent infringement claims. Although as a legal matter, the patent misuse defense has more impact upon the infringement issues than upon the antitrust issues, when considering the orderly presentation of evidence the patent misuse defense is more appropriately tried along with the antitrust issues. VPC also asserts that the patent misuse defense is no longer in the case because the jury has found patent infringement by MPC, and VPC contends that the basis for the patent misuse defense was VPC’s assertion of its patent rights and threats to sue for infringement. In addition to this basis for its patent misuse defense, however, MPC also continuously has asserted its patent misuse defense based upon what it alleges is VPC’s expansion of its patent rights over unpatented devices, such as component parts that are used along with the devices covered by VPC’s ’005 patent. Expansion of patent monopoly rights over unpatented devices can constitute patent misuse and act as a defense to patent infringement. See, e.g., Dawson Chemical Co. v. Rohm & Haas Co., 448 U.S. 176, 180, 100 S.Ct. 2601, 2605, 65 L.Ed.2d 696 (1980). MPC still can assert a successful patent misuse defense, notwithstanding the jury’s finding that MPC’s devices infringe VPC’s patents, and this issue could affect the finding of patent infringement. 1

Another substantial consideration is the avoidance of piecemeal litigation. Although entry of final judgment would allow VPC to begin pursuing collection of the judgment, it also would allow MPC to appeal without awaiting the resolution of the remaining issues. Based upon the zealousness with which the parties have pursued this matter up to this point, the court has full confidence that virtually all of the issues in this case will be appealed by the party which does not prevail. The court of appeals should not be burdened with multiple appeals for no good reason. The minor benefit to be gained from entering final judgment at this point on the patent infringement claim is far outweighed by the apparent lack of finality of the patent claim and the waste of judicial resources. VPC’s motion for entry of judgment is denied.

II.

VPC next moves for treble damages. In this case, the jury awarded VPC $1,207,534.00 for MPC’s infringement of VPC’s ’005 patent, and $20,300.00 for MPC’s infringement of VPC’s ’530 patent. After compensatory damages for patent infringement are determined, “the court may increase the damages up to three times the amount found or assessed.” 35 U.S.C. § 284. Whether to enhance, and the extent of any enhancement, is committed to the sound discretion of the trial court. Read Corp. v. Portec, Inc., 970 F.2d 816, 826 (Fed.Cir. 1992).

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Cite This Page — Counsel Stack

Bluebook (online)
887 F. Supp. 880, 1995 U.S. Dist. LEXIS 8265, 1995 WL 355606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/virginia-panel-corp-v-mac-panel-co-vawd-1995.