Washington State University v. Pro Orchard Management LLC

District Court, E.D. Washington·Decided November 2, 2020·No. 2:20-cv-00038·Unknown

Opinion

Nov 02, 2020 SEAN F. MCAVOY, CLERK

EASTERN DISTRICT OF WASHINGTON WASHINGTON STATE No. 2:20-cv-00038-SMJ

Plaintiff, ORDER DENYING MOTION FOR v. JUDGMENT ON THE PRO ORCHARD MANAGEMENT MOTION TO COMPEL LLC, a Washington limited liability company; and APPLE KING LLC, a Washington limited liability company.

Defendants.

To begin, the Court denied Pro Orchard Management LLC (“Pro Orchard”) and Apple King LLC’s (“Apple King”) (collectively, “Defendants”) motion for judgment on the pleadings under Federal Rule of Civil Procedure 12(c), ECF No. 37, at a hearing addressing other issues of concern. The motion addressed an inoperative complaint. Even so, the Court finds Plaintiff Washington State University (“WSU”) has pleaded enough facts in its First Amended Complaint, ECF No. 10, to satisfy the Iqbal standard. Also pending before the Court is WSU’s motion to compel discovery. ECF No. 49. The Court grants the motion to compel. WSU owns United States Plant Patent No. 21,710 (“Plant Patent”). ECF No.

10-1. The Plant Patent protects intellectual property developed by WSU called the “WA 2” apple cultivar. ECF No. 10 (“FAC”)1 ¶ 1. Breeding a new apple cultivar takes several years and involves many steps. See ECF No. 10-1. The WA 2 apple

originated from a seed collected from the fruit of the “Splendour” cultivar, which WSU researchers fertilized with a “Gala” male parent. ECF No. 10-1 at 2. According to the Plant Patent, “‘WA 2’ is an attractive apple that is distinct in appearance from that of other commercially grown apples and has outstanding

texture, being very firm, crisp and juicy, both fresh and after 60 days of regular cold storage.” Id. at 2–3. Before the Plant Patent issued, WSU assigned the patent application to

Washington State University Research Foundation (“Research Foundation”), a nonprofit corporation that formerly handled technology licensing for WSU. Id. ¶ 11. The Research Foundation thus owned the Plant Patent when it issued, but later reassigned it to WSU, and WSU continues to hold the Plant Patent today. Id.

In February 2011, the Research Foundation started entering Non-Exclusive License Agreements for WA 2 with Washington growers. Id. ¶ 12. The Research

1 Though this docket entry contains WSU’s First Amended Complaint, this memorandum will refer to it simply as the “Complaint” for clarity and brevity. Foundation entered a Non-Exclusive License Agreement (“Agreement”) for WA 2 apples with Keller Fruit, Inc. (“Keller Fruit”), a grower. Id. ¶ 14. Pro Orchard

likewise grows apples. Id. ¶ 3. Apple King packs and sells apples. Id. ¶ 3. Defendants have the same owners as Keller Fruit. Compare ¶¶ 3 & 4 with ¶ 14. The Agreement granted Keller Fruit the right to propagate, use, and sell WA

2 apple trees or apples. Id. ¶ 16. It did not grant any rights to Pro Orchard or Apple King. Id. ¶ 16. Defendants learned of the Plant Patent shortly after it was issued. Id. ¶ 18; see also ECF No. 27 ¶ 18 (Defendants admit in their Answer that “they ‘have been aware of Plant Patent No. 21,710.’”).

WSU alleges Pro Orchard “has grown WA 2 trees, asexually reproduced WA 2 trees, harvested apples from WA 2 trees, and consigned WA 2 apples for sale,” all without a license. Id. ¶ 19. WSU alleges in detail that Pro Orchard has (1) made

the patented plant by asexually reproducing WA 2 trees through grafting; (2) used the patented plant by growing WA 2 trees and harvesting their apples; and (3) sold the patented plant by consigning WA 2 apples for sale. Id. ¶¶ 20–23. Defendants admit these allegations in their Answer: “Keller Fruit Inc. d/b/a Defendant Pro

Orchard Management has grafted, planted, and grown WA 2 trees, and consigned them for sale to Apple King.” ECF No. 27 ¶ 21. WSU also alleges Defendants have induced third parties to infringe its Plant

Patent. FAC ¶ 24. By consigning WA 2 apples that Pro Orchard has harvested to Apple King for Apple King to sell, WSU alleges Pro Orchard has induced Apple King to infringe its Plant Patent. Id.

WSU alleges it has not licensed Apple King to sell the WA 2 apples. Id. ¶ 26. Apple King packs the unlicensed WA 2 apples that it receives on consignment from Pro Orchard and then sells them to third parties. Id. Apple King sells these

consigned WA 2 apples through brokerage firms. Id. Right now, WSU does not know the persons or entities that bought the WA 2 apples from Apple King. Id. In sum, WSU claims Defendants have directly infringed its patents and induced others to infringe its patent. See generally id.

Defendants move for judgment on the pleadings under Federal Rule of Civil Procedure 12(c). ECF No. 37. Defendants argue WSU has failed to allege they make, use, offer to sell, or sell WA 2 apples; Apple King cannot be a direct infringer

because, as consignee, it did not sell any WA 2 apples; providing scion wood is not an infringing act; and neither Apple King nor Pro Orchard has induced infringement even if either provided WA 2 scion wood to third-party growers. See generally id. It also claims WSU omits several necessary parties requiring mandatory joinder. Id. at

19–21. WSU opposes the motion. ECF No. 41. WSU argues it has plausibly alleged direct infringement against both Pro Orchard and Apple King. Id. at 12–19. Pro

Orchard (1) grafted the patented plant, which constitutes asexual reproduction; (2) grew WA 2 fruit trees and harvested the fruit, which constitutes use of patented plant; and (3) sold the patented plant by consigning WA 2 apples to Apple King for

sale. Id. at 13. WSU alleges that “Apple King packs the unlicensed WA 2 apples that it receives on consignment from Pro Orchard Management and then sells them to third parties,” without a license to do so. Id. at 14. It further contends it has

plausibly alleged induced infringement. Id. at 19–24. And other potentially infringing growers are neither necessary nor indispensable parties. Id. at 24–27. In the event the Court grants Defendants’ motion, WSU finally asks the Court to grant it leave to amend. Id. at 24.

WSU also moves to compel Defendants to respond to seven interrogatories and six requests for production (“RFP”) seeking discovery on Defendants’ infringing activities and affirmative defenses. Defendants responded to the motion

to compel, ECF No. 54, WSU replied, ECF No. 57, and Defendants filed a surreply, ECF No. 60. Under Federal Rule of Civil Procedure 8(a)(2), a complaint must contain a

“short and plain statement of the claim showing that the pleader is entitled to relief.” The complaint need not provide “detailed factual allegations,” but it “requires more than labels and conclusions, and a formulaic recitation of the

elements of a cause of action will not do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). Plaintiffs must plead enough facts “to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting

Twombly, 550 U.S. at 570). Though Iqbal announced the standard governing a Rule 12(b)(6) motion, the Ninth Circuit has “said that Rule 12(c) is ‘functionally identical’ to Rule 12(b)(6) and that ‘the same standard of review’ applies to motions

brought under either rule.” U.S. ex rel. Cafasso v. Gen. Dynamics C4 Sys., Inc., 637 F.3d 1047, 1054 n.4 (9th Cir. 2011). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the

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

Washington State University v. Pro Orchard Management LLC, (E.D. Wash. 2020).

Washington State University v. Pro Orchard Management LLC (Washington State University v. Pro Orchard Management LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Bauer & Cie v. O'Donnell
229 U.S. 1 (Supreme Court, 1913)
United States v. Dubilier Condenser Corp
289 U.S. 178 (Supreme Court, 1933)
Hickman v. Taylor
329 U.S. 495 (Supreme Court, 1947)
United States v. Bryan
339 U.S. 323 (Supreme Court, 1950)
Perrin v. United States
444 U.S. 37 (Supreme Court, 1979)
Diamond v. Chakrabarty
447 U.S. 303 (Supreme Court, 1980)
Watters v. Wachovia Bank, N. A.
550 U.S. 1 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Rhodes v. Robinson
621 F.3d 1002 (Ninth Circuit, 2010)
Vita-Mix Corp. v. Basic Holding, Inc.
581 F.3d 1317 (Federal Circuit, 2009)
Ntp, Inc. v. Research in Motion, Ltd.
418 F.3d 1282 (Federal Circuit, 2005)
Michael Lacey v. Joseph Arpaio
693 F.3d 896 (Ninth Circuit, 2012)
Van Well Nursery, Inc. v. Mony Life Insurance
421 F. Supp. 2d 1321 (E.D. Washington, 2006)
Avid Technology, Inc. v. Harmonic, Inc.
812 F.3d 1040 (Federal Circuit, 2016)