Greatbatch Ltd. v. AVX Corporation et al

Filing 547

MEMORANDUM ORDER denying re 514 MOTION to Stay Litigation as to U.S. Patent No. 5,905,627 filed by AVX Corporation, AVX Filters Corporation and scheduling oral argument on pending 507 Motion for Sanctions on 12/22/15 at the pretrial conference. Signed by Judge Leonard P. Stark on 12/10/2015. (rpg)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
GREATBATCH LTD.,
Plaintiff,
V.

C.A. No. 13-723-LPS
A VX CORPORATION and
AVX FILTERS CORPORATION,
Defendants.

MEMORANDUM ORDER
At Wilmington this 10th day of December, 2015:
Having reviewed the parties' filings (D.I. 515, 534, 535, 543, 545) related to Defendants
AVX Corporation and AVX Filters Corporation's ("AVX" or "Defendants") motion to stay
litigation (D.I. 514) ("Motion") of U.S. Patent No. 5,905,627 (the '"627 patent") pending
(1) appeal of a final written decision by the Patent Trial and Appeal Board ("PTAB") in an inter
partes review ("IPR") proceeding related to the '627 patent and (2) resolution of proceedings
related to an application for reissue of the '627 patent (see D.I. 535 at 1),

IT IS HEREBY ORDERED that, for the reasons stated below, Defendant's Motion
(D.I. 514) is DENIED.
1.

Defendants seek a stay oflitigation relating to the '627 patent in light of the

above-mentioned appeal and reissue proceedings. (D.I. 535 at 1) The PTAB did not institute
IPR with respect to claim 12 of the '627 patent -the sole claim of the '627 patent currently
asserted in this case - having found that A VX failed to show a reasonable likelihood that claim
1

12 was anticipated or obvious. (See D.I. 536-1 Ex.Lat 23-24)
2.

The Court typically considers three factors when deciding whether to stay

litigation: "(1) whether a stay would unduly prejudice or present a clear tactical disadvantage to
the non-moving party; (2) whether a stay will simplify the issues in question and trial of the case;
and (3) whether discovery is complete and whether a trial date has been set." Neste Oil OYJv.
Dynamic Fuels, LLC, 2013 WL 3353984, at *1 (D. Del. July 2, 2013).

3.

Regarding the first factor, whether a stay would unduly prejudice or present a

clear tactical disadvantage to Plaintiff Greatbatch Ltd. ("Greatbatch" or "Plaintiff''), the Court
notes that Defendants filed their petition for IPR on the last day permitted by statute (see 35
U.S.C. § 315(b)). (See D.I. 534 at 9) Moreover, Defendants delayed moving for a stay until after
completion of discovery, after completion of the parties' briefing for summary judgment and
Daubert motions, almost a year after the PTAB instituted IPR, and less than two months before

the pre-trial conference. While delay, by itself, is insufficient to find undue prejudice, see Neste
Oil Oyj v. Dynamic Fuels, LLC, 2013 WL 424754, at *2 (D. Del. Jan. 31, 2013) (citing
Enhanced Sec. Research, LLC v. Cisco Sys., Inc., 2010 WL 2573925, at *3 (D. Del. June 25,

2010)), here Defendants' delay in combination with the parties' status as competitors (or
potential competitors) (D.I. 534 at 11), 1 persuade that Court that this first factor weighs against a
stay. Taking as true Defendants' assertion that they are no longer producing the accused
products, however, the Court will give this factor less weight in its analysis than the other two
factors.

1

Defendants do not appear to dispute Plaintiffs characterization of the market as
consisting of two competitors. Moreover, while it appears that Defendants may no longer be
making the accused products (see D.I. 535 at 8-9; D.I. 536-1 Ex.Pat 1), Defendants have
declined to state categorically that they no longer compete with Plaintiff in the relevant market.

4.

The second factor, whether a stay will simplify the issues, relates to the issues that

may be resolved by other tribunals during a stay. See Mission Abstract Data L.L. C. v. Beasley
Broad. Grp., Inc., 2011WL5523315, at *2 (D. Del. Nov. 14, 2011). As noted, the IPR was not

instituted as to claim 12, and the PTAB's final written decision did not directly address claim 12.
Any appeal from the PTAB's decision will also not directly address claim 12. See ZOLL Lifecor
Corp. v. Philips Elecs. N Am. Corp., 577 F. App'x 991, 993 (Fed. Cir. 2014) (ruling that PTAB

non-institution decisions in IPR proceedings are not appealable ). Defendants nevertheless argue
that the Federal Circuit's analysis with respect to claims 11and13 (like the PTAB's analysis of
those unasserted claims) may illuminate issues with respect to the validity of claim 12. (See D.I.
535 at 2-3) In addition, Defendants argue that claim 12 may be rejected or amended during
reissue proceedings involving the '627 patent. (Id. at 2) Because the Court already has the
benefit of the PTAB' s final written decision, and because any forthcoming insight regarding the
validity of claim 12 from the Federal Circuit or reissue proceedings is wholly speculative at this
point, 2 the Court determines that this factor weighs against a stay.
5.

Finally, considering the status of discovery and whether a trial date has been set,

the Court notes that discovery is complete,3 the Court has construed the disputed claim terms (see
D.I. 282) and ruled on the parties' multitude of motions (see, e.g., D.I. 546), the pretrial
conference is less than two weeks away, and a jury trial (which has been on the schedule since
April 2014 (see D.I. 79)) begins in a month (January 11, 2016). Hence, the third factor weighs
2

Defendants do not cite any rejection by the Patent Office or proposed amendment to
claim 12 resulting from the reissue proceedings.
3

The discovery process involved at least five discovery teleconferences, an indication of
the vast amount of party and judicial resources that have been expended on this litigation, factors
that - in the overall balancing here - favor staying on course and proceeding to trial on all of the
remaining patents-in-suit.

heavily against a stay.
6.

Weighing the pertinent factors, the Court concludes that they do not favor

granting the requested stay. Accordingly, Defendants' Motion is DENIED.
IT IS FURTHER ORDERED that the parties shall present oral argument with respect to
Greatbatch's Motion for Sanctions Under Rule 37(b) for AVX's Violation of the Court Order to
Produce Ingenio Core Technical Documents (D.I. 507) at the pretrial conference scheduled for
December 22, 2015.

HON. LEONARD P. STARK
UNITED STA TES DISTRICT JUDGE