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Georgia IP Litigation: October 2014

BLOGS: Georgia IP Litigation

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Friday, October 31, 2014, 9:42 AM

Gutter Battle Reignites With New Action

In the latest salvo exchanged between two competing drainage product companies, Invisaflow, LLC ("Invisaflow"), based in Alpharetta, Georgia, filed a complaint in the Northern District of Georgia against competitors Euramax International, Inc. and Euramax Holdings, Inc. (collectively "Euramax"), both based in Norcross, Georgia, alleging that Euramax infringes its patent directed to gutter downspout extension attachments.

Invisaflow asserts U.S. Patent No. 8,556,195 ("the '195 Patent"), entitled "Low Profile Attachment For Emitting Water," which issued on October 15, 2013.  As reported here, in August 2012 Invisaflow filed a similar action based on a parent patent of the '195 Patent, U.S. Patent No. 8,251,302.  Invisaflow voluntarily dismissed that action in November 2012 (see here).

The complaint alleges that Euramax's "Extend-A-Spout v2 Low Profile Drainage System" product infringes the '195 Patent, and further alleges that Invisaflow met with Euramax on May 22, 2014, to notify Euramax of its infringement and requested that Euramax cease and desist from further production and sale of the accused product.  Representative Figure 1 of the '195 Patent is shown below:

On October 27, Invisaflow filed an amended complaint, which revised some details regarding giving notice of the patent, but also added three new counts to the action for alleged trade dress protection relating to the StealthFlow downspout extension product.  The amended complaint added counts for federal trade dress infringement and unfair competition under Section 43(a) the Lanham Act (15 U.S.C. 1125(a)), and violation of the Georgia Deceptive Trade Practices Act (O.C.G.A. 10-1-370 et seq.).

Invisaflow alleges that the StealthFlow product incorporates a distinctive and nonfunctional "long low-profile shape beginning with a gradual transition that emanates from a round-shaped piping." Invisaflow claims that the StealthFlow trade dress has acquired secondary meaning among the consuming public and further alleges that Euramax purposefully designed the accused "Extend-A-Spout" product to replicate the unique look and feel of the StealthFlow product.  Invisaflow alleges that it has "received numerous inquiries from consumers who believe that the "Extend-A-Spout" product originates from, or is sponsored or approved by, Plaintiff Invisaflow."  A comparison of the two extension products is depicted below:

Invisaflow seeks injunctive relief, damages, including trebled damages for willful infringement, and attorneys' fees and costs.

The case is Invisaflow, LLC v. Euramax Int'l, Inc. et al., Case No. 1:14-cv-03026-WSD, filed on September 19, 2014 in the Northern District of Georgia, Atlanta Division, and is assigned to U.S. District Judge William S. Duffey, Jr.

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Thursday, October 30, 2014, 1:15 PM

Solo Inventor Files Two Suits Over Allegedly Infringing Uninterruptible Power Supply Systems

Walter Farmer, of Atlanta, Georgia, filed separate suits against Alpha Technologies, Inc, ("Alpha"), of Bellingham, Washington, and Aspin Kemp & Associates ("Aspin Kemp"), of Owen Sound, Ontario, Canada, alleging that each company infringes Farmer's patent directed to uninterruptable power supply systems.

Farmer is the sole named inventor of U.S. Patent No. 7,362,007 ("the '007 Patent"), entitled "Hybrid Uninterruptible Power Supply System."  The claimed system allows for a telecommunications system to alternate between AC and DC power systems based on unplanned interruptions and other events. Representative Figure 5 of the '007 Patent is reproduced below:

Alpha Micro 1000 UPS System

The complaints do not state whether Farmer practices the invention or licenses the patent to any other entities.  The complaints allege that Alpha and Aspin Kemp infringe the '007 patent by "developing, using, offering to sell and/or selling in the United States or importing into the United States" their Alpha Micro 1000 UPS System and Omni B System, respectively.[1]  The complaints allege, without detail, that Alpha and Aspin Kemp had "actual knowledge and/or notice of the '007 Patent from a time prior to the filing of the present Complaint," and thus are liable for willful infringement.  The complaints also allege that Farmer will suffer immediate and irreparable harm in the absence of an injunction.

The complaints request preliminary and permanent injunctions -- although no motion for preliminary injunctive relief has been filed in either case -- damages, including trebled damages for alleged willful infringement, and attorneys' fees and costs under 35 U.S.C. § 285.

The first case is Farmer v. Alpha Technologies, Inc., Case No. 1:14-cv-02958-SCJ, filed September 15, 2014 in the Northern District of Georgia, Atlanta Division, and is assigned to U.S. District Judge Steve C. Jones.  The second case is Farmer v. Aspin Kemp & Associates, Case No. 1:14-cv-02959-RWS, filed September 15, 2014 in the Northern District of Georgia, Atlanta Division, and is assigned to U.S. District Judge Richard W. Story.  One assumes that the two cases will be handled by the same judge, should they proceed, but no reassignments have been docketed to date.
[1] The Alpha complaint calls the allegedly infringing system the "Micro 1000 USB System," but after inspection of Alpha's website and the '007 Patent, it is evident that this is a typographical error and is intended to refer to the "UPS," or "Uninterruptible Power Supply," system.

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Monday, October 27, 2014, 10:59 AM

Court Crushes Krush’s Motions for Preliminary Injunction on Patent Infringement and Trade Secret Misappropriation

Krush Communications, LLC (“Krush”) brought suit in New Jersey in 2013 against Lunex Telecom, Inc., a Georgia corporation (“Lunex”), for patent infringement and misappropriation of trade secrets.  After the case was transferred to the Northern District of Georgia, Judge Jones considered Krush motions for a preliminary injunction on its trade secret and patent claims and a motion to strike inequitable conduct allegations from the complaint.  In a 45-page opinion, Judge Jones deconstructed Krush’s arguments and the factual basis for its position.

Both Krush and Lunex are in the pre-paid telephone charges business.  They provide customers with a highly automated system that does not require a card and utilizes the phone number of the purchaser to track the balance remaining and a SMS Text messaging system to confirm purchases of prepaid time.  Krush obtained patent U.S. Patent No. 8,295,805 relating to its system and initiated this action based on Lunex’s product, as well as the conduct of an individual who had a brief (less than 3 month) relationship with Krush in 2010.
Krush efforts to strike inequitable conduct allegations were rebuffed on the following grounds: (1)  Lunex met the threshold higher pleading requirement s of Exergen Corp. v. Wal-Mart Stores, Inc., 575 F.3d 1312, 1326 (Fed. Cir. 2009) by disclosing the who, what, when, where , and how of Krush’s conduct and evidence of Krush’s deceptive intent.  [Krush failed to disclose information gathered about Lunex’s system to the PTO and “intentionally refrained from circulating a detailed letter of patent counsel until the day after the ‘805 Patent issued.”  Order, at p. 11]; (2) the material is related to whether or not the matter will be found to be an exceptional case, a prosecution estoppel claim, or a sufficiently pleaded inequitable conduct defense; and (3) the Court rejected Lunex’s assertion that Krush advanced “generalized and gratuitous facts, none of which correspond to a particular Defense.”  Id., at 13.

The patent infringement claims failed to meet the likelihood of success requirement based on the Court’s preliminary construction of the claims.  Under the Court’s preliminary analysis two limitations of the patent were not met by the Lunex system.  Specifically the Court found (1) the patent required that each individual phone number have a unique pin number, while the Lunex system allowed different phone numbers to use the same pin; and (2) the patent required that the unique pin for each phone number be the phone number itself, while the Lunex system used a randomly generated 12-digit pin number.

The thorough analysis of the ruling on the trade secret injunction motion reviews the elements required and details Krush’s failures to prove those elements.  The general allegations were not sufficiently supported by details to enable the Court to determine what was alleged stolen, how or when it was accessed, at what level of security the allegedly stolen materials resided, or what differed from materials in the public domain.  What is not entirely clear from the record or apparently to the Court is whether the failure to prove the case was due to a failure to present all the relevant facts or whether there were no additional relevant facts that could have been offered as evidence in support of the motion.  While there are references to different levels of security, the Court was unable to determine how the information at each level differed or which level information was allegedly misappropriated from.  Similarly, references were made to confidentiality and nondisclosure agreements, but none were produced and the allegedly misbehaving third-party was not shown to have signed any of them.

This ruling is an important lesson to all attorneys in two key ways: (1) before bringing a motion, assemble receivable evidence of each and every element necessary to prevail on the motion; and (2)  when the motion is filed ensure that evidence of each and every element necessary to prevail is clearly and effectively presented to the Court for consideration.

Krush Communications, LLC v. Lunex Telecom, Inc.., Case No. 1:13-cv-03167-SCJ, Dkt. No. 89 (Sep. 12, 2014).

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Friday, October 10, 2014, 1:08 PM

Order Pierces Allegations Unsupported By Receivable Evidence In Granting Summary Judgment To All Parties In IP Dispute

This blog post is authored by Kirk Watkins and posted by the Womble Carlyle Team.

In 2011 EarthCam, Inc. (“EarthCam”) brought suit against Richard Hermann (“Hermann”), OxBlue Corporation, Chandler McCormarck, John Paulson, and Brian Mattern (collectively “OxBlue”) asserting corporate espionage to misappropriate trade secrets.  OxBlue filed counterclaims for copyright infringement, trademark infringement, false advertising, false designation of origin, unfair competition, and violation of the Georgia Uniform Deceptive Trade Practices Act.

EarthCam is a New Jersey privately held company in the high-end web-based cameral system business.  OxBlue is an Atlanta based company in the same business focusing primarily on the construction industry.  Hermann is an independent contractor for OxBlue who was formerly employed by EarthCam as a product technician and camera installer.
Judge Duffey addressed summary judgment motions filed by all the parties and granted all of them.  How did that happen?  Read on.

Read more »

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