Vivus, Inc. v. Kercso

977 F. Supp. 1004, 97 Daily Journal DAR 14049, 1997 U.S. Dist. LEXIS 15471, 1997 WL 587010
CourtDistrict Court, N.D. California
DecidedSeptember 9, 1997
DocketNo. C-96-20422 EAI
StatusPublished
Cited by1 cases

This text of 977 F. Supp. 1004 (Vivus, Inc. v. Kercso) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vivus, Inc. v. Kercso, 977 F. Supp. 1004, 97 Daily Journal DAR 14049, 1997 U.S. Dist. LEXIS 15471, 1997 WL 587010 (N.D. Cal. 1997).

Opinion

ORDER DENYING COUNTERCLAIM DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT RE: INVENTOR-SHIP ISSUES

INFANTE, United States Magistrate Judge.

I. INTRODUCTION

Counterclaim defendants Vivus, Inc., Dr. Virgil A. Place, and Leland F. Wilson move for a summary judgment on Counterelaimant Josef E. Kercso’s First and Second Causes of Action. Counterclaim defendants request that summary judgment be entered on Kercso’s claim that he is the sole inventor, or at least a co-inventor, of the subject matter disclosed in the ’391 and ’535 patents, and on the claim that the patents should be declared invalid and/or unenforceable due to Kercso’s wrongful omission as a named inventor. For the reasons set forth below, the motion for summary judgment is DENIED.

II. BACKGROUND FACTS AND THE PARTIES’ CONTENTIONS

The central dispute in this inventorship ease involves the nature of the relationship between Dr. Place and Mr. Kercso in 1990 and 1991. Dr. Place, one of the named inventors on both U.S. Patent No. 5,242,391 (Urethral Insert for .Treatment of Erectile Dysfunction) and U.S. Patent No. 5,474,535 (Dosage and Inserter for Treatment of Erectile Dysfunction)1, claims that he merely consulted Mr. Kercso for assistance in building prototypes and models of his designs of devices for delivering medication into the urethra to treat erectile dysfunction. Dr. Place contends that Mr. Kercso made no inventive contribution. Mr. Kercso, on the other hand, [1006]*1006claims that Dr. Place invited him to be one of the founding members of Vivus and that he, not Dr. Place, came up with the breakthrough designs disclosed in the patents-in-suit.

Summary of the ’391 and ’535patents

The ’391 and ’535 patents both relate to the delivery of medication into the urethra of impotent men to allow them to achieve an erection. There are a total of three methods (with their corresponding apparatus) disclosed in the patents. The first method is referred to by the parties as the “dipstick” method. This method, which is described in claim 1 of the ’391 patent, calls for coating a thin shaft of material (such as plastic) with the medication and inserting the shaft into the urethra. The problem with the “dipstick” method is that it is difficult to control the dosage. The ability to precisely control the dosage is very important because if too little medication is applied, the patient will not be able to achieve an erection, and if too much is applied, the erection will last several hours.

The need to control the dosage of medication led to the development of the second delivery method, called the “plunger” or “plunger-injector” method. This second method, which is described in claim 6 of the ’391 patent and claim 18 of the ’535 patent, requires the medication to be formed into a pellet and placed at the end of a hollow shaft. As the hollow shaft is inserted into the urethra, the patient compresses a plunger which ejects the medication. Claim 7 of the ’391 patent discloses a locking mechanism which prevents the accidental ejection of the pellet of medication before the shaft is inserted into the urethra.

The third method is called the “tulip” method. The “tulip” method was developed in response to the discovery of a prior art patent, the “Voss patent”, on or about June 17, 1991, and is described in claim 19 of the ’535 patent. The “tulip” design is comprised of a hollow shaft with a plunger and a flexible closed end where the pellet is placed. The flexible end can be inverted to contain a pellet of medication, and the plunger or injector ejects the pellet by everting the flexible end.

The development of the “dipstick” and “plunger” devices

Dr. Place began work on the development of therapeutic agents and delivery systems to treat erectile dysfunction or impotence in 1987, when he was employed by Alza Corporation in Palo Alto.2 In April 1989, Dr. Place filed an Invention Disclosure Record (“IDR”) with Steve Stone, Alza’s in-house patent attorney, describing his technique of treating impotence through the transurethral administration of medication. Mr. Gale and Mr. Berggren, researchers at Alza, assisted with the formulation of the medication to be delivered. On April 25, 1990, the original patent application was filed naming Dr. Place, Mr. Gale and Mr. Berggren as inventors. Only the “dipstick” method was disclosed in the April 25, 1990 application. There is no dispute regarding Dr. Place’s invention of the original “dipstick” method.

Dr. Place contends that he invented the “plunger” method in the months after the original patent application was filed. Vivus Exh. 10, ¶3. Dr. Place’s claim, though supported by some documentary evidence, is unquestionably not established.3 The first supporting document is Dr. Place’s August 19, 1990 handwritten facsimile to Alza’s patent attorney, Steve Stone, regarding the anticipated filing of a continuation-in-part to the April 25, 1990 application. Vivus Exhs. 10, ¶4 and 10A. In the August 19, 1990 facsimile, Dr. Place states, “Another [design] is to take the present obturator and make hollow center and put plunger to eject dose— [1007]*1007the dose can be filled in tip or inserted into tip.” Vivus Exh. 10A. The second document is Dr. Place’s handwritten memorandum to Steve Stone dated October 3, 1990 which contains two crude drawings of the “plunger” device. Vivus Exh. 10B. Also, Dr. Place cites to the September 30, 1990 entry in his notebook in which he states that he spoke with Nathan Roth, an Alza employee, “about cap and cylinder of drug overcoat of rod of drug in inserter with plunger.” Vivus Exh. 10D.

During the fall of 1990, Alza apparently decided not to pursue Dr. Place’s erectile dysfunction therapy project. Dr. Place and Alza reached an agreement in which Alza would continue to assist Dr. Place in obtaining patent rights on his work. Alza allowed Dr. Place to use its office space and its laboratory facilities to conduct further experiments related to the project. However, Dr. Place was apparently not allowed to use Alza employees to assist in his experiments. Any patents issued to Dr. Place or his colleagues would still belong to Alza. However, Alza agreed to grant Dr. Place the option to obtain licenses under the patents. In February 1991, Dr. Place started Vivus, Inc.

Since Dr. Place could no longer use Alza employees to help in his project, he decided to consult Mr. Kercso. Dr. Place became acquainted with Mr. Kercso while both men worked for Syntex in the 1960’s. Although Dr. Place left Syntex to go to Alza in the late 1960’s, the two men apparently kept in touch over the years. Dr. Place knew that Mr. Kercso had set up a machine shop in his home and that he could construct models and make scale drawings.

Dr. Place went to Mr. Kercso’s Palo Alto home on November 23, 1990 to discuss the erectile dysfunction therapy project. The parties do not dispute that Mr. Kercso had no involvement in the project prior to November 23,1990. The parties disagree about the relationship established between the two men on that date. Dr. Place maintains that he merely hired Mr. Kercso as a design consultant to fabricate models and make scale drawings. Mr. Kercso contends that Dr. Place asked him to join him as a “founding member” of Vivus, Inc. The parties did not execute any written agreement on November 23,1990.

According to Mr. Kercso, he and Dr.

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977 F. Supp. 1004, 97 Daily Journal DAR 14049, 1997 U.S. Dist. LEXIS 15471, 1997 WL 587010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vivus-inc-v-kercso-cand-1997.