Billy K. Watkins v. Northwestern Ohio Tractor Pullers Association, Inc.Billy K. Watkins v. Northwestern Ohio Tractor Pullers Association, Inc.
Plaintiff Billy K. Watkins appeals the dismissal by summary judgment of his action for patent infringement. Watkins, a small Livingston, Illinois farmer, is the inventor and patentee of a tractor sled, a device used in contests at county fairs and other exhibitions to determine which trac-
I. Findings of the District Court and Disputed Issues of Fact
There are a number of facts which are not in dispute. In August 1967, plaintiff demonstrated his tractor sled in Bowling Green, Ohio. Merle Grimm, one of defendant’s founders, saw the demonstration. At that time, Grimm was a member of an unincorporated club which was defendant’s predecessor. In the fall of 1967, Grimm built a sled (Heartbreaker I) for the club. December 30, 1969, plaintiff wrote to the club, in care of Grimm, that a patent would be issued to him shortly on his sled and that plaintiff learned defendant intended to use the Grimm sled at the forthcoming National Farm Machinery Show at Louisville, Kentucky, February 11 and 12,1970. The letter stated the use of the Grimm sled without a license would be an infringement and threatened suit. Plaintiff also wrote the National Farm Machinery Show, warning of the possible infringement.
Plaintiff’s patent was issued January 27, 1970 (Patent # 3,491,590). The sled was not used at the February 1970 show and plaintiff was so advised by his attorney. Grimm did not respond to the December 30, 1969 letter. Grimm wrote other sled owners in February 1970 to ask their help in challenging plaintiffs patent, but no concrete action was taken. June 23, 1970, the club incorporated as Northwestern Ohio Tractor Pullers Association, Inc., and Grimm became the first president. The Grimm sled was transferred to the corporation. September 1972, plaintiff wrote to defendant in care of the person he believed to be president, a Mr. Chamberlain, but the letter was returned. In 1974, defendant sold its first sled and built another sled (the Heartbreaker II). Contracts for the use of both sleds were filed with defendant’s answer. The earliest date legible was August 11, 1970. January 21, 1976, plaintiff sued another alleged infringer named Lloyd Luedtke. Plaintiff, on advice of his counsel, wrote a letter to Grimm and others who might be infringing, advising that he was presently suing on his patent and intended to enforce his rights against other infringers upon completion of the Luedtke suit. This letter to Grimm was undated but was given by Grimm to defendant’s attorneys May 27, 1976. Grimm did not answer this letter. Plaintiff’s attorney wrote Grimm again June 15, 1977 inquiring as to the relationship between Grimm and defendant, offering to license, and threatening immediate suit for patent infringement if no response was received. Grimm’s attorneys did respond at this point to say the matter had been referred to them. A substantive response was written by Grimm’s attorneys, claiming laches and estoppel, October 11, 1977. Suit was filed against defendant December 2, 1977.
Defendant has no post office box, no office, no phone. It does have officers and a statutory agent, but no mailing address other than through the statutory agent or the officers.
The District Court found that there were no disputed facts and defendant was entitled to summary judgment. Based on the depositions, exhibits, and answers to interrogatories, it found the following facts were undisputed. Plaintiff built his sled June 1967 and demonstrated it in Bowling Green, Ohio August 1967, where it was examined by Grimm. Grimm'' constructed his sled, tested it March 1968, and used it July 4, 1968. Plaintiff filed for his patent April 24, 1968. By December 30, 1969, certain of plaintiff’s claims had been deemed allowable by the patent examiner. The Court held the December 30,1969 letter could only be characterized as a Notice of Infringement and Offer to License. The Court found that Grimm, without knowing the merits of plaintiff’s claim, desisted from using his sled at the February 1970 show.
Plaintiff argues several material issues of fact are in dispute and should not have been decided by the District Court on a motion for summary judgment. Specifically, plaintiff argues that no evidence supports the Court’s findings of similarity between the unincorporated club and defendant and between Heartbreaker I and Heartbreaker II. It argues that whether or not defendant is easily ascertainable and whether or not defendant was injured by the delay are also disputed facts.
He also urges that he is not guilty of laches as the applicable period did not start running until the first threatened use after issuance of the patents. The delay in suing was not unreasonable, he argues, as he could not locate defendant earlier. Moreover, defendant was not harmed by the delay. He further argues the applicable period is tolled because he was involved in other litigation concerning the same patent. He claims he is not estopped as defendant did not rely to its detriment on any action or representation of plaintiff.
The District Court may grant a motion for summary judgment only if it finds from the whole record before it that there are no material facts which are in dispute.
See
Rule 56(c), Fed.R.Civ.Pro. It may not make findings of disputed facts on a motion for summary judgment. The movant has the burden of showing conclusively that there exists no genuine issue as to a material fact and the evidence together with all inferences to be drawn therefrom must be considered in the light most favorable to the party opposing the motion. The movant’s papers are to be closely scrutinized while those of the opponent are to be viewed indulgently.
See Smith v. Hudson,
Upon a review of the entire record in this case, this Court must agree with the plaintiff that the District Court made findings with respect to facts which were in dispute. Grimm testified that Heartbreaker II was similar in some respects to Heartbreaker I, but he also said it was bigger, carries more weight, has more gears, and carries the sled as a self-contained unit which Heartbreak-er I did not do.
Grimm said defendant was easily located through its officers, and defendant’s name, although not its address or officers’ names, was on the side of the tractor sled. He said Heartbreaker I was used in about 10-15 pulls the first couple of years and 15-25 the next. The sponsoring organizations of the pulls were aware of defendant and knew how to contact it. Plaintiff, by affidavit, stated that after February 1970 he was not sure about defendant’s existence or the continued use of the Grimm sled. He heard about the sled being used in 1971 and wrote to defendant in care of Dan Chamberlain
Plaintiff stated that he believed Heartbreaker I was not used at the February 1970 show, but no evidence indicates why defendant did not use its sled. Defendant built a bigger sled in 1974, but Grimm testified at his deposition that after the February contacts, neither he nor the organization took any further action with respect to plaintiff’s patent. Indeed, the existence or non-existence of plaintiff’s patent had no influence on their subsequent activities, according to Grimm. The District Court should not have in ruling on the motion for summary judgment made findings of fact about the similarity of Heartbreaker I and Heartbreaker II, whether or not defendant is easily ascertainable with diligent search, and whether or not defendant was injured in reliance upon plaintiff’s actions or delay as these findings were either unsupported by the record or were disputed. The grant of summary judgment is in error, however, only if these disputed issues are material.
II. Laches and Plaintiffs Claim for Injunctive Relief
Plaintiff sued for damages for past infringement and injunctive relief against future infringement. This Court recently summarized the law regarding delay in filing infringement actions in
TWM Manufacturing Co., Inc. v. Dura Corp.,
The present case discloses no evidence or disputed issues of fact of plaintiff’s misrepresentations, misconduct, or intentionally misleading silence. At most, the record shows silence by a party who claims not to have known where defendant was or whether or not defendant was infringing. Thus, this Court must reverse the summary judgment for defendant against plaintiff’s claims for injunction and for damages suffered after this action was filed. See TWM, supra. 5
III. Laches and Plaintiffs Claim for Damages
There remains the question whether or not summary judgment was proper on plaintiff’s claim for damages for alleged infringement occurring before the lawsuit was filed. This question involves three sub-issues:
1) When does the six-year period start running?
2) Is the six-year period tolled by filing another lawsuit?
3) Whether or not the six-year period has been tolled, has plaintiff rebutted the presumption of laches or shown a material issue of fact is in dispute?
A. Running of the Six-Year Period
This Court held in
TWM
that the six-year period began running from the date
Plaintiff attacks the characterization of the letter as a Notice of Infringement. He does not dispute the contents of the letter, but only disputes whether or not the letter can legally serve as a Notice of Infringement as it was sent before the patent was issued.
This Court need not decide whether or not the December 30, 1969 letter constitutes statutory notice required under 35 U.S.C. § 287. The issue before the Court is, regardless of whether or not the letter serves as a Notice of Infringement, should it serve to start running the six-year period for the presumption of laches.
Decisions in this Court and elsewhere have generally charged the patentee with delay from the time when the patentee had knowledge of the defendant’s allegedly infringing activities or had access to facts by which he reasonably should have known of the defendant’s activities.
6
The December 30, 1969 letter indicates that plaintiff had knowledge of defendant’s allegedly infringing activities. Plaintiff claims not to have known about any further allegedly infringing activities after February 1970, but admits that as of the issue date of the patent he knew about the intended use at the National Farm Machinery Show in February 1970. Plaintiff cannot claim lack of knowledge after December 30, 1969.
See Gillons
v.
Shell Co. of California,
This Court has not found a case which charged the patentee with delay occurring prior to the issuance of the patent.
Cf. Tripp v. United States,
Plaintiff would have this Court go further and hold that in this case the six-year period did not start running until the earliest contract date established in the rec
B. Tolling of the Period by Plaintiffs Other Litigation
Plaintiff argues the burden of proof should not shift to him as he was involved in other litigation concerning the same patent in question here. He argues the six-year period should be tolled while the patentee is involved in other litigation.
Courts have generally held that a patentee need not sue more than one infringer at a given time. Any delay due to involvement in other litigation is considered excusable and hence not chargeable to the patentee as unreasonable delay.
7
However, this Court and others have refused to toll the six-year period where the patentee fails to notify the other alleged infringers of his pending lawsuit and his intent to enforce the patent against other infringers upon its completion.
8
The present case presents circumstances not heretofore considered. The prior cases involved either no notice of the other litigation
9
or notice of the other liti
We apply the presumption of injury after a delay of six years because after six years an alleged infringer could reasonably believe the patentee did not intend to enforce his rights and, thus, could reasonably expend money and effort to expand his use of the infringed product or method. If the patentee does act to enforce his patent and the alleged infringer is informed of it, he cannot reasonably expect his business will remain unmolested. However, if the alleged infringer does not know about the patentee’s actions to enforce the patent, the belief that he will be left alone is still reasonable. The alleged infringer cannot know the patentee’s intentions unless the patentee tells him. Notice of the other litigation informs the alleged infringer that the patentee does not intend to leave him alone and allows the alleged infringer to sue for declaratory judgment should he choose not to wait until the patentee is ready to bring suit. See
American Home Products Corp. v. Lockwood Mfg. Co.,
C. Laches as a Question of Fact
However, that the defendant has been presumptively injured does not, itself, decide this case. Laches is an equitable doctrine which depends on consideration of all the facts in the case.
11
A finding of laches based on all the circumstances in the case is a matter within the trial court’s discretion and will not be set aside unless an abuse of discretion has been shown.
12
Notes
.
See Studiengesellschaft Kohle [SGK] v. Eastman Kodak Co.,
. In addition,
see Jensen v. Western Irrigation & Mfg., Inc.,
No. 78-1550, (9th Cir., July 3, 1980);
SGK v. Eastman Kodak Co.,
. For example,
see General Electric Co. v. Sciaky Bros., Inc.,
. In addition,
see Jensen v. Western Irrigation & Mfg.,
Inc., - F.2d -, No. 78-1550, (9th Cir., July 3, 1980);
SGK v. Eastman Kodak Co.,
. Some cases have found silence to be an estoppel where the patentee threatened immediate enforcement but then did nothing for an unreasonably long time.
See Jensen v. Western Irrigation & Mfg., Inc.,
No. 78-1550, slip op. (9th Cir., July 3, 1980);
Advanced Hydraulics, Inc.
v.
Otis Elevator Co.,
.
See Jensen v. Western Irrigation & Mfg., Inc.,
No. 78-1550, (9th Cir., July 3, 1980);
SGK
v.
Eastman Kodak Co.,
.
See Moore v. Shultz,
.
See Jensen v. Western Irrigation & Mfg., Inc.,
No. 78-1550, (9th Cir., July 3, 1980);
SGK v. Eastman Kodak Co.,
. See
Minnesota Mining & Mfg. Co. v. Berwick Industries, Inc.,
.
See SGK
v.
Eastman Kodak Co.,
.
See SGK v. Eastman Kodak Co.,
.
See SGK v. Eastman Kodak Co.,
. Plaintiff also claims the District Court erred in denying his post judgment motion without allowing him to file a brief. Plaintiff’s post judgment motion was allegedly brought .under Rules 59, 60, 62, Fed.R.Civ.Pro., to set aside the judgment and findings of fact and conclusions of law made by the District Court. The only possible rule to support such a motion is Rule 60(b)(6), which provides for relief from judgment based on “any other reason justifying relief from the operation of the judgment.” But Rule 60(b)(6) should not be used to grant relief if the same relief could reasonably be sought on appeal. Rule 60(b)(6) will not give relief from judgment for legal error,
see Martinez McBean v. Government of Virgin Islands,