Asahi Glass Co. v. Guardian Industries Corp.
Asahi Glass Co. v. Guardian Industries Corp.
Opinion of the Court
* * AMENDED MEMORANDUM OPINION
I. INTRODUCTION
Asahi Glass Company, Ltd. and AGC Flat Glass North America, Incorporated (“plaintiffs”) brought this action for infringement of U.S. Patent Nos. 6,334,938 (“the '938 patent”) and 6,193,856 (“the '856 patent”) against Guardian Industries Corporation (“defendant”) on July 15, 2009. (D.I. 1) The patents are entitled “target and process for its production, and method for forming, a film having a highly refractive index,” and generally disclose a sputtering target to be used for forming a thin transparent oxide film having a high refractive index.
Defendant’s new defenses and counterclaims relate to two new theories of inequitable conduct, both relating to concealing or misrepresenting the true inventorship of pending claims to the PTO during prosecution of the '938 and '856 patents. Defendant asserts that plaintiffs filed false declarations and statements during prosecution of the '856 patent in order to overcome a § 102(a) prior art rejection. Specifically, several pending claims (directed to sputter targets) stood rejected based on prior art publication “JP-469,”
During his deposition, on November 17, 2010, Sasaki testified that he was not involved in making sputter targets and has no understanding of applying an undercoat to a substrate for a target (as issued claim 11 of the '856 patent and its dependents require). Sasaki emphasized that this is “outside [his] area.” (Id., ex. G) According to defendant, this testimony is directly contrary to Sasaki’s declarations to the PTO.
It is also defendant’s assertion that the inventorship of the '938 patent was falsified in order to obtain a priority date earlier than JP-469 and obtain issuance of plaintiffs’ claims. During prosecution of the '938 patent, the examiner rejected claims as anticipated and/or obvious in view of JP-469. According to defendant, this rejection was traversed when plaintiffs successfully claimed priority to “JP-074,”
On November 18, 2010, Suzuki-Komatsu testified that she did not “know what a target is,” or a “sputtering target,” did not know how they are used, and did not recall her contribution to the inventions. (Id., ex. K)
III. STANDARD
“[L]eave to amend ‘shall be freely given when justice so requires.’ ” Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962) (quoting Fed.R.Civ.P. 15(a)). The court may exercise its discretion to deny leave to amend in situations in which the moving party has delayed seeking leave and the delay “is undue, motivated by bad faith, or prejudicial to the opposing party.” Bjorgung v. Whitetail Resort, LP, 550 F.3d 263, 266 (3d Cir. 2008) (citation omitted). Put another way, where the non-moving party will not suffer “substantial or undue prejudice,” “denial [of leave to amend] must be based on bad faith or dilatory motives, truly undue or unexplained delay, repeated failures to cure the deficiency by amendments previously allowed, or futility of amendment.” USX Corp. v. Barnhart, 395 F.3d 161, 166 (3d Cir. 2004) (quoting Lorenz v. CSX Corp., 1 F.3d 1406, 1413-14 (3d Cir. 1993)). Delay is “undue” when an unwarranted burden is placed on the court or when the requesting party has had previous opportunities to amend. See Estate of Oliva ex rel. McHugh
IV. DISCUSSION
Defendant’s request came six months after the August 15, 2010 deadline to amend the pleadings and after the close of fact discovery (see D.I. 69); therefore, certain prejudice to plaintiff is inherent on this time-line. In determining whether defendant’s delay was undue or unexplained, the court considers the following arguments posed by defendant: (1) although plaintiffs produced their documents prior to November 2010, the majority of the documents were in Japanese and required review by language experts and translators; (2) Suzuki-Komatsu and Sasaki were deposed in November 2010; (3) plaintiffs supplemented their interrogatory responses in November 2010, adding twelve additional claims to the suit; and (4) the claim construction process started in November and continued through January 2011, when the parties filed their joint statement of finalized constructions. The motion at bar was filed shortly thereafter on March 4, 2011.
While plaintiffs do not specifically dispute that their discovery documents required translation, the critical documents to defendant’s new inequitable conduct claims — the inventor declarations — were part of the publicly-available file wrappers of the patents in suit. Defendant does not describe with any particularity which translations or analyses postponed its discovery of its new claims beyond November 2010 — when plaintiff added claim 10 of the '938 patent to the suit,
Plaintiffs state that their document production was substantially completed by July 16, 2010. (D.I. 97 at 4) Defendant does not argue to the contrary in its reply papers. Aside from a general assertion of delay required for translation and expert review of Japanese documents, there is no particular explanation for why defendant waited from at least November 2010
Pursuant to the foregoing, defendant’s delay in moving to amend until March 4, 2011 is largely unexplained. While defendant’s delay is not egregious, allowing defendant’s motion at this late stage would place an unwarranted burden on the court and prejudice plaintiffs in several respects, most notably, opening discovery for the purpose of allowing plaintiffs an opportunity to respond to the new claims cannot be accomplished while maintaining the current trial date.
Y. CONCLUSION
Consistent with the foregoing, defendant’s motion for leave to amend (D.I. 88) is denied. An appropriate order shall issue.
ORDER
At Wilmington this 8th day of August, 2011, consistent with the memorandum opinion issued this same date;
IT IS ORDERED that defendant’s motion for leave to amend (D.I. 88) is denied.
. The '938 patent was filed as a continuation application claiming priority to the now-issued '856 patent; the patents contain the same specification.
. Japanese Patent Abstract Publication No. 07-233469, published September 5, 1995.
. Ms. Suzuki has since been married and is now known as Ms. Komatsu. To minimize confusion, the court will refer to Ms. Komatsu as "SuzukiKomatsu.”
. Defendant cites this reference as Japanese Patent Abstract Publication No. 7-215074, however, this appears to be a mistranscription. JP-074 does not appear to be docketed with defendant's motion, and its publication date is unclear.
. Suzuki testified that she did recall "typing,” and that "it’s possible that [she] might have done analysis" or testing that produced the results reported in the patent, but she was not certain.
. Defendant asserts that claim 10 provides the "most serious instance of inequitable conduct.” (D.I. 100 at 4).
. These were fact depositions, as compared to, for example, a 30(b)(6) deposition relating more particularly to patent prosecution or a topic relating to inequitable conduct. The depositions were scheduled and occurred after the deadline for amending pleadings.
. Defendant states that it received the deposition transcripts on December 3, 2010. (D.I. 100 at 4).
. Plaintiffs' answer to interrogatory 15 states that "Mr. Kida, who was a plasma spray engineer, suggested the investigation of plasma-sprayed targets to overcome these problems [with sintered targets].” (D.I. 89, ex. F).
. The court is currently booked for trials through 2013; rescheduling a trial of this dura
Reference
- Full Case Name
- ASAHI GLASS CO., LTD. and AGC Flat Glass North America, Inc. v. GUARDIAN INDUSTRIES CORP.
- Cited By
- 8 cases
- Status
- Published