ROSHKA DEWULF & PATTEN , PLC
ONE ARIZONA CENTER 400 EAST VAN BUREN STREET , SUITE 800 PHOENIX , ARIZONA 85004
TELEPHONE (602) 256- 6100 FACSIMILE (602) 256- 6800
Name and State Bar No.
John E. DeWulf, No. 006850 dewulf~rdp- law. com Darlene M. Wauro , No. 014697 wauro~rdp- law. com
Attorneys for Defendant Golden Peanut Company, LLC
IN THE UNITED STATE DISTRICT COURT
FOR THE DISTRICT OF ARIZONA
LEMELSON MEDICAL , EDUCATION & RESEARCH FOUNDATION , LIMITED PARTNERSHIP
No. CIV 00- 0661- PHX- HRH
Plaintiff
ALCON LABORATORIES , INC. , et aI.
Defendants.
In response to Plaintiffs Opposition to
DEFENDANT GOLDEN PEANUT COMPANY , LLC' S REPLY BRIEF IN SUPPORT OF ITS MOTION FOR AWARD OF ATTORNEYS' FEES AND RELATED NONTAXABLE EXPENSES
Motions for Attorneys ' Fees , Defendant
Golden Peanut Company, LLC (" Golden Peanut" ), hereby submits the following Reply
Brief, pursuant to Local Rule 54. 2.
As demonstrated in
Golden Peanut's " Memorandum in
Support of Motion for Award of Attorneys '
(hereinafter the " Motion
Fees and Related Non- Taxable Expenses
C. 9 285.
) and this Reply, this case is " exceptional" under 35 U.
Consequently, an award of attorneys ' fees and expenses is appropriate.
Judgment was entered in favor of Golden Peanut in this action as a result of
the Nevada District Court' s finding that the Lemelson patents asserted against Golden
Peanut in the present action are unenforceable under the equitable doctrine of prosecution
laches. (February 2 ,
2006 Order of the Court).
The
Nevada District Court' s finding of
Symbol
unenforceability was upheld by the U. S. Court of Appeals for the Federal Circuit.
Technologies
, Inc.
v.
Lemelson Medical
, Educ.
Research Foundation 422 F. 3d 1378
Case 2:00-cv-00661-HRH
Document 541
Filed 05/01/2006
Page 1 of 11
~ ~' ~' ~~~
";'
, "
(Fed. Cir. 2005),
amended on rehearing in part by, Symbol Technologies
Research Foundation,
Limited Partnership,
, Inc.
v.
Lemelson
Medical
, Education
429 F. 3d 1051 (Fed.
Cir. 2005).
As the prevailing party in this action , Golden Peanut is entitled to recover its
attorneys ' fees and expenses. 35 U. C. 9 285. In the interest of justice , an award of all
sums that Golden Peanut has incurred in preparation for and in the performance of legal
services relating to this case , including those post-judgment fees and expenses incurred in
connection with the filing of the Motion
A. Hormel , is appropriate.
See Central Soya Co. ,
Inc.
v.
Geo.
Co. 723 F. 2d 1573 , 1578 (Fed.
Cir. 1983). Fee shifting is warranted to
s unjust
compensate Golden Peanut for its monetary outlays arising from Lemelson
00 0
assertion of its portfolio of unenforceable U. S. patents.
~"TO
~ ~i-'6:;;6
i-' ~
:3 ~ ~U)
'" "" 00
The Nevada District Court opinion provided clear and convincing
sufficient to find the present action an exceptional case under 35 U.
Technologies
, Inc. v. C. 9 285.
evidence
'"'" ~;;JN 'DN ... 0 p;: H ~ "" Z:3 ~ Q:'E P'1
~ ~;:-Z~
~uZ08
See Symbol
301
~~ 14
Lemelson Medical
, Educ.
Research Foundation, Ltd
~ o
Vl
:I: 0
~t;;tJii113 ;;i g;i-'t;j ~
Supp. 2d 1147 , 1153 (D. Nev. 2004). The Nevada District Court clearly and forcefully
concluded that
Lemelson s 18 to 39 year delay in filing and prosecuting the asserted
claims under the fourteen patents- in-suit after they were first purportedly disclosed in the
1954 and 1956 applications was umeasonable and unjustified.
301 F. Supp. 2d
at 1155.
Plaintiff cannot and does
accordingly, that "
not
dispute this finding.
The Nevada District Court
held
the doctrine
of prosecution laches renders the asserted claims
unenforceable.
Id.
the doctrine of prosecution laches
, Inc. v.
As outlined by the Federal Circuit ,
has
been a part of patent law since
Medical 277 F. 3d
1361 ,
the 1920'
Symbol Technologies
Lemelson
1364 (Fed. Cir. 2002). The Federal Circuit concluded that " There
is nothing in the legislative history to suggest that Congress did not intend to carry forward
the defense of prosecution laches (with the passage of the
1952 Patent Act).
To the
contrary, a careful reading of the history and commentary on the 1952 Act shows an intent
Case 2:00-cv-00661-HRH Document 541 Filed 05/01/2006 Page 2 of 11
~ ~' ~' ~~~
";'
to maintain the defense.
Id.
at 1365. Further ,
the Federal Circuit confirmed that the
Id.
nonprecedential decisions cited by Plaintiff did not overturn this established precedent.
at 1366-
68. Accordingly, Plaintiff did not have good reason to believe that prosecution
laches did not exist , as a matter of law , when it filed the present action. The Nevada
District Court described the substantial evidence supporting its finding of laches:
The circumstances warranting application of prosecution laches here includes
not only the delay between the filing of the original application
and the
issuance of the claims , and the delay in presenting the claims to the patent
00 0
~"TO
~ ~i-'6:;;6
office for the first time , but the following combination of factors asserted by Symbol and Cognex which the Court finds are strongly supported by the evidence: (1) Mr. Lemelson s original disclosures were made public in the 1960' s and those patents expired by the early 1980' s; (2) before the asserted claims were filed numerous articles and patents describing machine vision and bar code scanning were published , and commercial products were developed and marketed; (3) Mr. Lemelson was aware of the developments in the machine vision and bar code fields , and yet he still waited; (4) Mr. Lemelson systematically extended the pendency of his applications by sitting on his
fIghts , and sequentially filing one application
at a time so that he could
i-' ~
:3 ~ ~U)
'" "" 00
'"'" ~;;JN 'DN ... 0 p;: H ~ "" Z:3 ~ Q:'E P'1
~ ~;:-Z~
~uZ08
maintain copendency while waiting for viable commercial systems to be designed and marketed; and , (5) Mr. Lemelson (and his new counsel) then
drafted and prosecuted hundreds of new claims in the late 1980' sand 1990' s specifically worded to cover those commercial systems.
~~ 14
~ o
Vl
:I: 0
~t;;tJii113 ;;i g;i-'t;j ~
301 F. Supp. 2d
at 1156.
In view of this
compelling evidence , the Federal
Circuit expanded the Nevada
District Court' s holding to apply to not just those claims that were at issue at the Nevada
District Court , but to all claims
the Federal Circuit held:
of the 14 asserted patents. 429 F.
3d 1052. Significantly,
umeasonably long period of time , and the delays in prosecution to issuance of the asserted 76 claims applied to all of the remaining this exceptional case prejudice to the public as a whole has been shown here in the long period of time during which parties , including (Symbol and its coplaintiffs), have invested in the technology described in the delayed patents. These are sufficient bases to extend the district court' s laches holding of unenforceability of the 76 asserted claims to all of the claims of the asserted patents.
claims. Accordingly, Id.
(A)ll of the subject
matter in the patents in
suit was pending
for an
(emphasis added).
The considerable evidence presented supports a finding by this
Court that this case is " exceptional" under 35 U. C. 9 285 and that the award of attorneys
fees is appropriate.
Case 2:00-cv-00661-HRH
Document 541
Filed 05/01/2006
Page 3 of 11
~ ~' ~' ~~~
";'
The statutory purpose of (the award of attorneys ' fees in patent cases) is to
reach cases where the interest of justice warrants
fee-shifting.
Thus the trial court has
broad discretion in the criteria by which it determines whether to award attorney fees.
Brooktree Corp. v.
Advanced Micro Devices , Inc. 977 F. 2d
1555 , 1582 (Fed. Cir. 1992).
Contrary to Plaintiffs assertion , the Federal Circuit's precedent does not prevent this Court
from awarding attorneys ' fees in this case. In view of the totality of the circumstances
there is considerable evidence that Plaintiffs conduct before the U. S. Patent and
Trademark Office warrants equitable relief.
See Symbol Technologies 422 F. 3d
at 1385-
86.
Additionally, Plaintiff s shotgun
00 0
approach to the
present action further
supports the award of attorneys ' fees. In its Opposition , Plaintiff provided no evidence to
suggest that it conducted a detailed pre- filing investigation with respect to each of the 400
defendants , including Golden Peanut ,
April 14 , 2000.
accused in the five actions filed in this Court on
~"TO
~ ~i-'6:;;6
i-' ~
:3 ~ ~U)
'" "" 00
'"'" ~;;JN 'DN ... 0 p;: H ~ "" Z:3 ~ Q:'E P'1
~ ~;:-Z~
~uZ08
~~ 14
Similarly, Plaintiff did not dispute that it used the present
action as
~ o
Vl
:I: 0
~t;;tJii113 ;;i g;i-'t;j ~
leverage to convince unsuspecting defendants to take a license to its
unenforceable U. S. patents ,
portfolio of
rather than be faced
with the
uncertainty and expense of
complex patent litigation.
F or
at least the above reasons ,
in the interest of justice , the award of
attorneys ' fees and related non- taxable expenses is appropriate in this action.
DATED this 1st day of May, 2006.
ROSHKA DeWULF & PATTEN, PLC
sf John E. DeWulf John E. DeWulf Darlene M. Wauro One Arizona Center 400 East Van Buren Street , Suite 800 Phoenix , Arizona 85004
Attorneys for Defendant Golden Peanut Company, LLC
Case 2:00-cv-00661-HRH
Document 541
Filed 05/01/2006
Page 4 of 11
~ ~' ~' ~~~
";'
CERTIFICA TE OF SERVICE
I hereby
certify that on May 1 ,
2006 , I electronically transmitted the
attached
document to the Clerk' s Office using the CM/ECF System for filing and transmittal of a
Notice of Electronic Filing to the following CM/ECF registrants:
Louis 1. Hoffman , Esq.
HOFFMAN & ZUR
14614 North Kierland Boulevard , Suite 300 Scottsdale , AZ 85254 ih~patentit. com
Victoria Gruver Curtin , Esq.
VICTORIA GRUVER CURTIN PLC
14614 North Kierland Boulevard , Suite 300 Scottsdale , AZ 85254 vgc~patentit. com
00 0
Peter C. Warner , Esq.
PETER C. WARNER PC
~"TO
~ ~i-'6:;;6
i-' ~
:3 ~ ~U)
'" "" 00
'"'" ~;;JN 'DN ... 0 p;: H ~ "" Z:3 ~ Q:'E P'1
~ ~;:-Z~
~uZ08
1723 West 4th Street Tempe , AZ 85281- 2404
pcw~warnerpatents. com
Attorneys for Plaintiff
Lemelson
~~ 14
Charles Bradley, Esq.
~ o
Vl
:I: 0
~t;;tJii113 ;;i g;i-'t;j ~
Attorney at Law 33 Mt. Green Road Croton-on- Hudson , NY 10520 cwbradle verizon. net
Attorneys or Defendants Alcon Laboratories,
Inc. and Nestle USA , Inc.
Jonathan M. James , Esq.
PERKINS COlE BROWN & , BAIN P A
2901 North Central Avenue O. Box 400 Phoenix , AZ 85001- 0400
11 ames~perkinscoie. com Attorneys for Defendants Allied Domecq, Ocean Spray and Dole Foods Company
Jennifer Van Kirk , Esq.
LEWIS & ROCA
40 North Central Avenue Phoenix , AZ 85004- 4429 JV ankirk~lrlaw. com Attorneys for Alpharma, Inc. , Diageo PLC, Guinness LTD, Kraft Foods Inc. Miller Brewing Company, Phillip Morris Company, Inc.
, and United Distillers
Vintners Ltd.
Case 2:00-cv-00661-HRH
Document 541
Filed 05/01/2006
Page 5 of 11
~ ~' ~' ~~~
";'
Don Bivens , Esq. Jennifer P. Nore , Esq.
BIVENS & NORE , P.
3003 North Central Avenue , Suite 1200 Phoenix , AZ 85012- 2915 dwbivens~bivens- nore. com
Ralph C. Francis , Esq.
FRANCIS LAW GROUP 1942 Embarcadero
Oakland , CA 94606 rcf~francislaw. com
Attorneys for Defendants Amway Corporation and Glaxo Wellcome, Inc.
Michael 1. O' Connor , Esq.
JENNINGS , STROUSS & SALMON
00 0
Attorneys or Defendant Anheuser-Busch
Mark A. Nadeau , Esq.
SQUIRE SANDERS & DEMPSEY , LLP
The Collier Center , 11 th Floor 201 East Washington Street Phoenix , AZ 85004- 2385 moconnor . sslaw. com
Companies
~"TO
~ ~i-'6:;;6
i-' ~
:3 ~ ~U)
'" "" 00
'"'" ~;;JN 'DN ... 0 p;: H ~ "" Z:3 ~ Q:'E P'1
~ ~;:-Z~
~uZ08
~~ 14
Two Renaissance Square 40 North Central Avenue , Suite 2700 Phoenix , AZ 85004- 4441
mnadeau~ssd. com
~ o
Vl
:I: 0
~t;;tJii113 ;;i g;i-'t;j ~
Attorneys for Defendants Campbell Soup, Hershey, Tyson , Lee Corporation Hormel, IBP, Dean Foods, Lorillard, Gilster-Mary Lee and McCormick
Brett L. Dunkelman , Esq.
OSBORN MALEDON , P.
2929 North Central Avenue , Suite 2100 Phoenix , AZ 85012- 2794 bdunkelman~omlaw. com
Attorneys for
Defendant Chiquita Brands International, Inc.
Bennett Evan Cooper , Esq.
STEPTOE & JOHNSON , LLP
Collier Center 201 East Washington , Suite 1600 Phoenix , AZ 85004- 2382
bcooper~steptoe. com
Robert A. Schroeder , Esq.
BINGHAM , MCCUTCHEN , LLP
355 South Grand Avenue , Suite 4400
Los Angeles , CA 90071
Robert. Schroeder~bingham. com
Attorneys for Defendants ConAgra, Inc. and Sunkist Growers, Inc.
Case 2:00-cv-00661-HRH
Document 541
Filed 05/01/2006
Page 6 of 11
~ ~' ~' ~~~
";'
James W. Armstrong, Esq.
SACKS TIERNEY , P A
4250 North Civic Center Boulevard , 4th Floor Scottsdale , AZ 85251 J ames. Armstrong~sackstierney. com Attorneys for Defendant Del Laboratories, Inc.
David Berten , Esq.
COMPETITION LAW GROUP
120 South State Street , Suite 300 Chicago , IL 60603
berten~competelaw. com
Attorneys for
Defendant Del Monte Foods
Doug Seitz , Esq.
SNELL & WILMER L.L.P. One Arizona Center 400 East Van Buren Phoenix , AZ 85004- 2202 dcseitz~swlaw. com
00 0
Attorneys for
~"TO
~ ~i-'6:;;6
Defendant Forest Laboratories, McKee Foods Corporation , Nabisco Holdings, and WLR Foods
John W. Kozak , Esq. David M. Airan , Esq.
LEYDIG , VOlT & MAYER
i-' ~
:3 ~ ~U)
'" "" 00
'"'" ~;;JN 'DN ... 0 p;: H ~ "" Z:3 ~ Q:'E P'1
~ ~;:-Z~
~uZ08
~~ 14
~t;;tJii113 ~ o ;;i g;i-'t;j ~
Vl
:I: 0
Two Prudential Plaza , Suite 4900 Chicago , IL 60601- 6780 kozak Ie di . com dairan Ie di . com Attorneys for Defendants Frito-Lay and Pepsico
Timothy 1. Burke , Esq. FENNEMORE CRAIG , P. 3003 North Central Avenue , Suite 2600 Phoenix , AZ 85012- 2913
tburke~fclaw. com
Attorneys for Defendants Brown
Williamson Tobacco Company
James R. Higgins , Esq.
MIDDLETON & REUTLINGER, PSC 401 South 4th Avenue , Suite 2500
Louisville , Kentucky 40202- 3410 ihiggins~middreut. com
Attorneys for Defendants Brown
Williamson Tobacco Company and H.J. Heinz
James F. Polese , Esq.
POLESE , PIETZSCH , WILLIAMS & NOLAN , P A
2702 North Third Street , Suite 3000 Phoenix , AZ 85004- 4607
polese~ppwn. com
Case 2:00-cv-00661-HRH
Document 541
Filed 05/01/2006
Page 7 of 11
~ ~' ~' ~~~
";'
John W. Pelino , Esq. Howard A. Rosenthal , Esq. Edward L Ciemniecki , Esq.
PELINO & LENTZ , P.
1650 Market Street , 32nd Floor Philadelphia , P A 19103- 7393
e li
~ li
elciemnieckl elino. com Attorneys for Keystone Foods Corp.
CASEBOLT , GERMAINE & DRIGGS , P. LC.
~~ om
Sanford 1. Germaine , Esq.
11811 North Tatum Boulevard , Suite 3051 Phoenix , AZ 85028
sgermpc~aoI. com
Attorneys for Liggett
Group Inc.
Charles W. Wirkin , Esq.
GUST ROSENFIELD ,
00 0
PLC
~"TO
~ ~i-'6:;;6
i-' ~
:3 ~ ~U)
'" "" 00
201 West Washington , Suite 800 Phoenix , AZ 85004 cwirken~gustlaw. com Attorneys for Defendant Cargill
Steven M. Weinberg, Esq.
WEINBERG LEGAL GROUP
'"'" ~;;JN 'DN ... 0 p;: H ~ "" Z:3 ~ Q:'E P'1
~ ~;:-Z~
~uZ08
~~ 14
Biltmore Financial Center
2390 East Camelback Road , Suite 250
~t;;tJii113 ~ o ;;i g;i-'t;j ~
Vl
:I: 0
Phoenix , AZ 85016 weinber s tlaw. com
Attorneys or Defendant Seneca
Foods
Timothy Casey, Esq.
One Arizona Center 400 East Van Buren Phoenix , AZ 85004- 2202
tcasey~swlaw. com
SNELL & WILMER LLP.
Aaron Myers , Esq.
ROBINS , KAPLAN , MILLER & CIRESI , L.
2800 LaSalle Plaza 800 LaSalle Avenue Minneapolis , MN 55402- 2015
aamyers~rkmc. com
Attorneys for
Defendant Schwan s Sales Enterprises, Inc.
Case 2:00-cv-00661-HRH
Document 541
Filed 05/01/2006
Page 8 of 11
~ ~' ~' ~~~
";'
With a copy served by u. s. mail to the following who are not registered
CM/ECF System:
participants of the
James B. Bear , Esq. Paul A. Stewart , Esq.
KNOBBE , MARTENS , OLSON & BEAR, LLP
2040 Main Street , 14th Floor Irvine , CA 92614- 7216
David K. Callahan
KIRKLAND & ELLIS , LLP
200 East Randolph Street , Suite 5800 Chicago , IL 60601
Annamarie A. Daley
ROBINS , KAPLAN , MILLER & CIRESI , LLP
2800 LaSalle Plaza 800 LaSalle Avenue Minneapolis , MN 55402- 2015
00 0
~"TO
~ ~i-'6:;;6
Albert E. Fey, Esq.
i-' ~
~ ~U)
:3 '" "" 00
Charles Quinn , Esq.
FISH & NEA VE
'"'" ~;;JN 'DN ... 0 p;: H ~ "" Z:3 ~ Q:'E P'1
~ ~;:-Z~
~uZ08
1251 Avenue of the Americas New York , NY 10020
Jesse 1. Jenner , Esq.
ROPES & GRAY LLP
~~ 14
~ o
Vl
:I: 0
~t;;tJii113 ;;i g;i-'t;j ~
1251 Avenue of the Americas New York , NY 10020
Christopher T. Griffith , Esq. Wesley O. Mueller , Esq.
LEYDIG , VOlT & MAYER
Two Prudential Plaza , Suite 4900 Chicago , IL 60601- 6780
Roy E. Hofer , Esq. Gustavo Siller , Jr. , Esq.
BRINKS , HOFER, GILSON & LIONE
NBC Tower , Suite 3600 455 North Cityfront Plaza Drive Chicago , IL 60611- 5599
Joseph P. Lavelle , Esq. Laura C. Miller , Esq. Peter E. Moll , Esq.
HOWREY , SIMON , ARNOLD & WHITE LLP
1299 Pennsylvania Avenue NW Washington , DC 20004- 2402
Case 2:00-cv-00661-HRH
Document 541
Filed 05/01/2006
Page 9 of 11
~ ~' ~' ~~~
";'
Gary D. Lueck , Esq.
BINGHAM MCCUTCHEN LLP 355 South Grand Avenue , Suite 4400
Los Angeles , CA 90071
Kevin M. Rose , Esq.
WHARTON , ALDHIZER & WEAVER, PLC
100 South Mason Street Harrisonburg, VA 22801
John F. Salazar , Esq.
MIDDLETON & REUTLINGER, PSC 401 South 4th Avenue , Suite 2500
Louisville , Kentucky 40202- 3410
Martin W. Schiffmiller , Esq. Lisa A. Pieroni , Esq.
Floor New York , NY 10017
489 5
, 1 ih
KIRSCliSTEIN OTTINGER ISRAEL & SCHIFFMILLER, PC t Avenue
00 0
~"TO
~ ~i-'6:;;6
Regis E. Slutter , Esq.
BURNS DOANE SWECKER & MATHIS LLP
i-' ~
~ ~U)
:3 '" "" 00
'"'" ~;;JN 'DN ... 0 p;: H ~ "" Z:3 ~ Q:'E P'1
~ ~;:-Z~
~uZ08
O. Box 1404 Alexandria , VA 22313 - 1404
~~ 14
~t;;tJii113 ~ o ;;i g;i-'t;j ~
Vl
Kevin S. Sprecher , Esq. Ann G. Robinson , Esq.
FROST BROWN TODD LLC
:I: 0
2200 PNCth Street Center
201 East 5
Cincinnati , OH 45202
Jay Todd Stewart , Esq.
PERKINS COlE BROWN & BAIN P A
O. Box 400 Phoenix , Arizona 85001- 0400
Stephen P. Swinton , Esq.
COOLEY GODW ARD LLP
4401 Eastgate Mall San Diego , CA 92121- 1909
William M. Wesley, Esq. Christopher C. Winslade , Esq.
McANDREWS HELD & MALLOY LTD.
500 West Madison , Suite 3400 Chicago , IL 60661
Case 2:00-cv-00661-HRH
Document 541
Filed 05/01/2006
Page 10 of 11
~ ~' ~' ~~~
";'
And a courtesy copy mailed via priority mail to:
The Honorable H. Russel Holland United States District Court 222 West 7th Avenue , Unit 54 Anchorage , AK 99513
s/John E. DeWulf
00 0
~"TO
~ ~i-'6:;;6
i-' ~
:3 ~ ~U)
'" "" 00
'"'" ~;;JN 'DN ... 0 p;: H ~ "" Z:3 ~ Q:'E P'1
~ ~;:-Z~
~uZ08
~~ 14
~ o
Vl
:I: 0
~t;;tJii113 ;;i g;i-'t;j ~
Case 2:00-cv-00661-HRH
Document 541
Filed 05/01/2006
Page 11 of 11