UUSI, LLC v. United States
1:12-cv-00216
| Fed. Cl. | Apr 25, 2013Background
- Uusi, LLC and OLDNAR Corporation hold patents relating to Humvee engine starting systems.
- OLDNAR assigned five related patents to Uusi between 1994 and 2000.
- KDS, GHSP, AM General supplied or used engine starting systems in Government Humvees, with possible indemnification obligations.
- Government moved to notice third parties AM General and GHSP under Rule 14(b) to protect indemnification interests.
- Plaintiffs moved to dismiss third parties or challenge their pleadings, arguing Rule 14 was undermined after repeal of 41 U.S.C. § 114.
- Court held Rule 14 remains viable, subject-matter jurisdiction exists, and third parties properly participated under Rule 14.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Rule 14 jurisdiction after repeal | Rule 14 invalid after §114 repeal; no jurisdiction for third parties. | Rule 14 remains independent; third parties have interests and can be noticed. | Rule 14 remains viable; jurisdiction not implicated by third-party notice. |
| Effect of Rule 14 on third-party standing | Third parties need a third-party plaintiff to invoke jurisdiction; improper pleadings. | Notice and appearance confer standing to protect indemnification interests. | Third parties have standing via Rule 14 and their answers; no jurisdictional defects. |
| Whether third-party notices create new claims | Answers to notice create claims between plaintiffs and third parties improperly. | Answers protect interests; no new claims against plaintiffs created. | No new claims; participation is to protect indemnification interests. |
| Indemnification interests as basis for participation | Indemnification issues do not justify third-party participation. | AM General and GHSP have indemnification obligations and related interests warrant notice. | Interests sufficiently established; third parties properly joined. |
Key Cases Cited
- Advanced Software Design Corp. v. Fed. Reserve Bank of St. Louis, 583 F.3d 1371 (Fed. Cir. 2009) (exclusive jurisdiction under 1498; standards for pleading)
- Hughes Aircraft Co. v. United States, 534 F.2d 889 (Ct. Cl. 1976) (court authority over patent infringement against government)
- Allied Oil & Supply, Inc. v. United States, 60 Fed. Cl. 223 (2004) (distinction between notice and jurisdiction in Rule 14)
- Bowser, Inc. v. United States, 190 Ct. Cl. 441 (1970) (third-party indemnitor may participate to protect interests)
- USHIP Intellectual Props., LLC, 98 Fed. Cl. 396 (2011) (third party filed an Answer; standing to seek adjudication)