Wilson v. Corning, Inc.

171 F. Supp. 3d 869, 2016 U.S. Dist. LEXIS 37731, 2016 WL 1122022
CourtDistrict Court, D. Minnesota
DecidedMarch 22, 2016
DocketCivil No. 13-210 (DWF/FLN)
StatusPublished
Cited by5 cases

This text of 171 F. Supp. 3d 869 (Wilson v. Corning, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilson v. Corning, Inc., 171 F. Supp. 3d 869, 2016 U.S. Dist. LEXIS 37731, 2016 WL 1122022 (mnd 2016).

Opinion

MEMORANDUM OPINION AND ORDER

DONOVAN W. FRANK, United States District Judge

INTRODUCTION

This matter is before the Court on a Motion for Partial Summary Judgment Regarding (1) Breach of Contract and (2) Incorrect Inventorship Regarding U.S. Patent No. 7,745,209 (the “’209 Patent”) brought by Plaintiffs John R. Wilson (“Wilson”) and Wilson Wolf Manufacturing Corp. (“Wilson Wolf’) (together, “Plaintiffs”) (Doc. No. 320), and a Motion for Summary Judgment on Plaintiffs’ Unjust Enrichment Claims and Partial Summary Judgment on Plaintiffs’ Trade Secret Misappropriation Claims brought by Defendant Corning, Inc. (“Corning”) (Doc. No. 307).

For the reasons discussed below, the Court denies Plaintiffs’ motion and grants Coming’s motion.

BACKGROUND

This action involves technologies for cell culture, which is the growth of cells in a laboratory environment. In this case, Plaintiffs allege that Corning obtained Plaintiffs’ cell culture technology under a confidentiality agreement and subsequently filed for and obtained patents claiming Plaintiffs’ technology as its own. (Doc. No.l (“Compl.”) ¶¶ 125-140.) Related to these allegations, Plaintiffs assert claims for Breach of Contract (Count IV), and Unjust Enrichment and Constructive Trust (Count V). Id. Plaintiffs also allege that Wilson Wolf employees should be named as inventors on three Corning patents — the ’209 Patent, U.S. Patent No. 8,178,345, and U.S. Patent No. 8,273,572. (Id. ¶¶ 102-24.) Finally, Plaintiffs assert a claim for Misappropriation of Trade Secrets, Minn. Stat. § 325C.01 (Count VI). (Id. ¶¶ 141-163.)1

Wilson is the founder and CEO of Wilson Wolf. (Doc. No. 315 (‘Wilson Decl.”) ¶ 3.) Wilson Wolf is a biotechnology firm located in New Brighton, Minnesota, that develops and manufactures cell culture devices and, in particular, cell culture devices that “bridge the gap” between traditional cell cultureware (such as T-flasks and roller bottles) and more complex systems. (Id. ¶ 7.) Wilson Wolf systems are used in many types of cell therapy treatments, including immunotherapy for various can[872]*872cers, Type 1 diabetes, and autoimmune diseases. (Id. ¶ 13.)'

Corning is a multi-national corporation that operates several divisions in areas of technology, including life sciences, display technologies, and environmental technologies. (Doc. No. 314 (“Young Decl. I”) ¶ 3, Ex. 2.) In 2003, a representative of Coming’s Life Sciences division visited a Wilson Wolf booth at a trade show in San Francisco that was operated by Wilson. (Id. ¶ 4, Ex. 3 (“Walsh Dep.”) at 24-25.) Wilson invited Corning to visit Wilson Wolf in Minnesota to learn more about Wilson Wolfs cell culturing. (Id. at 27.)

On January 6, 2004, the parties entered into a Confidential Disclosure Agreement (“CDA”). (Compl. ¶ 41, Ex. C (“CDA”).)2 The CDA, which included a Minnesota choice of law provision and was effective for two years, permitted “exchanges of information which may be confidential for the purpose of enabling [Wilson Wolf] to provide design, engineering or other services for Corning.” (See generally CDA and CDA ¶ 8.) The CDA provided that:

“Confidential Information” shall mean only that information relating to selling, inventing, and developing cell culture devices and processes for growing cells ... and information relating to expertise in inventing and developing cell culture devices and processes for growing cells

(Id. ¶ 1). Further, the CDA provided:

All Confidential Information shall be disclosed to the receiving party in a writing reasonably identifying it as confidential or, if first orally or visually disclosed, shall be identified confidential in a writing delivered to the receiving party within thirty (30) days of first oral or visual disclosure.

(Id. ¶ 2.)

Pursuant to the CDA, once Confidential Information was disclosed, it was to be treated as Confidential for five years from the date of disclosure. (Id. ¶ 3.) The party receiving Confidential information was required to:

a) limit the dissemination of received Confidential Information within its organization to only those employees having a need for access,
b) protect Confidential Information from disclosure to third parties with at least the same degree of care (but no less than a reasonable degree of care) as it uses to protect its own Confidential Information of like kind from unauthorized use or disclosure, and
c) not use received Confidential Information for any purpose other than for the express purpose recited above.

(Id.) The CDA also covered how a party should treat information disclosed as Confidential when that party believed the information is not actually confidential; for example, in situations where information designated Confidential was developed by the receiving party by employees not exposed to Confidential Information or was publicly available. (Id. ¶ 4 (a)-(d).) Even so, in such a situation, the receiving party could not use or disclose any Confidential Information “without first notifying the other party in writing of its intended reliance [on any of the foregoing exemptions] at least fourteen (14) days in advance of use or disclosure.” (Id.)

On or around March 3, 2004, Corning representatives traveled to Minnesota to [873]*873meet Wilson at Wilson Wolf headquarters. (Young Decl. I ¶¶ 5, 6, Exs. 4, 5.) Plaintiffs contend that, at the meeting, Wilson disclosed the results of Wilson Wolfs research regarding the use of gas permeable technologies in tissue and cell culture vessels. The information disclosed included Wilson Wolf innovations that included various combinations of features, including for example, a static cell culture device, with multiple shelves or scaffolds, gas permeable materials, no gas liquid interface, unconventional medium height, and medium height more than 2.0 cm from the bottom, of the device. (Id. ¶ 8, Ex. 7 at Answer No. 1.) Plaintiffs contend that this information was disclosed both in person and in documents labeled “CONFIDENTIAL INFORMATION PROVIDED BY WILSON WOLF” at the March 2004 meeting. (Id. ¶ 10, Ex. 9.) Wilson Wolf also provided Corning with documents designated “Confidential” that disclosed combined features and noted patent protection expected from a U.S. Provisional Application filed by Wilson and co-inventors. (Id.) Wilson Wolf also identified and disclosed certain product designs and concepts, including a design for the “multi-layer flask,” along with a drawing and detailed description of the multi-layer flask concept (also referred to as the Enhanced Roller Bottle, Gas Transfer Fixture, and Wilson Wolf Flask). (Wilson Decl. ¶ 9; Young Decl. I ¶ 6, Ex. 5.) Wilson Wolf noted that the multi-layer flask design could provide “10X-20X [greater cell yield] relative to T-175 [flasks].” (Doc. No. 324 (‘Young Decl. II”) ¶ 2, Ex. 63 at COR009287.)

At the meeting, Corning requested prototypes for testing. (Young Decl. I ¶ 11, Ex. 10.) Wilson Wolf provided Corning with two “Vertical Bag” prototypes and two multi-layer flasks with gas permeable material. (Id. ¶¶ 12, 13, Exs. 11, 12.) Wilson described the virtues of the multi-layer flask, and on May 10, 2004, sent two Gas Transfer Fixtures to Corning. (Id.)

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171 F. Supp. 3d 869, 2016 U.S. Dist. LEXIS 37731, 2016 WL 1122022, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-v-corning-inc-mnd-2016.