Hagenbuch v. Otto Environmental Systems North America

8/2/2019 Hagenbuch v. Otto Environmental Systems North America

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INTHEUNITEDSTATESDISTRICTCOURTFORTHENORTHERN DISTRICTOF LLINOIS

EASTERN DIVISION

LEROY .HAGENBUCH,P l a i n t i f f ,

v .C i v i l A c t i o n No.JURYTRIALDEMANDED

OTTOENVIRONMENTALSYSTEMSNORTHAMERICA, NC.,

D e f e n d a n t .

COMPLAINTFORPATENTINFRINGEMENTP l a i n t i f f , LeRoy G. Hagenbuch(Hagenbuch" o r " P l a i n t i f f ' ) , by h i s u n d e r s i g n e d

a t t o r n e y s , complains of Defendant O t t o Environmental Systems North America, n c .(Otto" r"Defendant" ) , and l l e g e s a s f o l l o w s :

PARTIES

1 . P l a i n t i f f Hagenbuch i s an I l l i n o i s r e s i d e n t w i t h an a d d r e s s a t 1425 East Glen Avenue,P e o r i a H e i g h t s , l l i n o i s 61616.

2 . Hagenbuch i s t h e named i n v e n t o r on , and owner o f , a s u b s t a n t i a l number of p a t e n t s ,i n c l u d i n g p a t e n t s d i s c l o s i n g and c l a i m i n g c e r t a i n t y p e s of m a t e r i a l c o l l e c t i o n systems(MCS a t e n t s" ) . The MCS a t e n t s i n c l u d e c l a i m s which cover c e r t a i n t y p e s of e f u s ec o n t a i n e r t r a c k i n g s y s t e m s .


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3 . On n f o r m a t i o n and b e l i e f , Defendant O t t o i s a North C a r o l i n a c o r p o r a t i o n and a c i t i z e no f North C a r o l i n a , w i t h i t s p r i n c i p a l p l a c e o f u s i n e s s a t 12700 General D r i v e , C h a r l o t t e ,North C a r o l i n a 28273.

4. Defendant O t t o i s engaged i n t h e b u s i n e s s , i n t e r a l i a , o f e l l i n g r e f u s e c o n t a i n e r t r a c k i n gsystems under t h e "Res-CT" r a d e n a m e(Re s-CT Systems")

5 . On n f o r m a t i o n and b e l i e f , O t t o emp l o ys a t l e a s t one s a l e s p e r s o n wh o o p e r a t e s fro m ana d d r e s s w i t h i n t h i s J u d i c i a l D i s t r i c t , namely, an a d d r e s s i n West Chicago, l l i n o i s . Oni n f o r m a t i o n and b e l i e f t h e s a l e s p e r s o n i s engaged i n t h e b u s i n e s s , i n t e r alia, ofm a r k e t i n g , o f f e r f o r s a l e and/ o r s e l l i n g Re s-CT Systems fro m w i t h i n t h i s J u d i c i a l D i s t r i c t .

JURISDICTIONAND VENUE

6 . This a c t i o n a r i s e s under t h e p a t e n t laws o f h e United S t a t e s , T i t l e 35 o f h e United S t a t e sCode.

7 . This Court has s u b j e c t m a t t e r j u r i s d i c t i o n over t h i s a c t i o n p u r s u a n t t o 28 U.S.C. 1331and 1 3 3 8 ( a ) .

8 . On n f o r m a t i o n and b e l i e f , Defendant i s s u b j e c t t o t h i s C o u r t ' s g e n e r a l and s p e c i f i cp e r s o n a l j u r i s d i c t i o n , p u r s u a n t t o due p r o c e s s and t h e I l l i n o i s Long Arm S t a t u t e ,r e s p e c t i v e l y .

9 . On i n f o r m a t i o n and b e l i e f , Defendant i s s u b j e c t t o t h e C o u r t ' s g e n e r a l p e r s o n a lj u r i s d i c t i o n because t s a c t i v i t i e s i n c l u d e r e g u l a r l y doing o r s o l i c i t i n g b u s i n e s s , engagingi n o t h e r p e r s i s t e n t c o u r s e s of c o n d u c t , and/ o r d e r i v i n g s u b s t a n t i a l revenue fro m good sand s e r v i c e s p r o v i d e d t o p e r s o n s o r e n t i t i e s i n I l l i n o i s .

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1 0 . On i n f o r m a t i o n and b e l i e f , Defendant i s s u b j e c t t o t h e C o u r t ' s s p e c i f i c p e r s o n a lj u r i s d i c t i o n b e c a u s e i t s a c t i v i t i e s i n c l u d e r e g u l a r and s u b s t a n t i a l a d v e r t i s i n g , promotionand/ o r s a l e s i n I l l i n o i s o f r o d u c t s and/ o r systems t h a t i n f r i n g e t h e p a t e n t s - i n - s u i t ow n e dby Hagenbuch.

1 1 . On n f o r m a t i o n and b e l i e f , venue i s p r o p e r i n t h i s d i s t r i c t under a t l e a s t 28 U.S.C. 1391(c) and 1400(b) because Defendant has committed o ne o r m o r e a c t s o f n f r i n g e m e n to f Hagenbuch's MCS a t e n t s w i t h i n t h i s J u d i c i a l D i s t r i c t .

THEPATENTS-IN- S U IT ANDDEFENDANT'S NOTICETHEREOF

1 2 . P l a i n t i f f Hagenbuch i s t h e i n v e n t o r and owner of United S t a t e s P a t e n t No . 5 , 6 4 4 , 4 8 9(t h e `489 P a t e n t") n t i t l e d "Apparatus and M eth o d For I d e n t i f y i n g C o n t a i n e r s F r o mWh ic h M a t e r i a l I s C o l l e c t e d and Loaded Onto A aulage V e h i c l e . " The `489 a t e n t wasd u l y and l e g a l l y i s s u e d by t h e United S t a t e s P a t e n t &T r a d e m a r k O f f i c e o n J u l y 1 , 1997.A r u e and c o r r e c t c opy o f h e `489 a t e n t i s a t t a c h e d a s E x h i b i t 1 .

1 3 . P l a i n t i f f Hagenbuch i s t h e i n v e n t o r and owner of United S t a t e s P a t e n t N o . , 4 1 6 , 7 0 6 C 1(t h e `706 P a t e n t") n t i t l e d "Apparatus For d e n t i f y i n g C o n t a i n e r s F r o m Wh ic h Refuse sC o l l e c t e d and Compiling A i s t o r i c a l Reco r d o f Th e C o n t a i n e r s . " Th e `706 P a t e n t wasd u l y and l e g a l l y i s s u e d by t h e United S t a t e s P a t e n t & T r a d e m a r k O f f i c e o n May 1 6 ,1995. A r u e and c o r r e c t c opy o f h e `706 P a t e n t i s a t t a c h e d h e r e t o a s E x h i b i t 2 .

1 4 . On r around A p r i l 25 , 2011, c o u n s e l f o r Hagenbuch s e n t a l e t t e r t o O t t o s e t t i n g f o r t ha l l e g a t i o n s t h a t O t t o ' s R e s- C T systems i n f r i n g e a t l e a s t c l a i m s 1 and 6 f h e `489 a t e n t ,

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and p r o v i d i n g p r e l i m i n a r y i n f r i n g e m e n t c o n t e n t i o n s i n s u p p o r t of Hagenbuch's p o s i t i o n .The A p r i l 25, 2011 l e t t e r a l s o put Otto on n o t i c e of h e `706 a t e n t .

1 5 . On une 2, 2011, counsel f o r Hagenbuch r e c e i v e d an email from O t t o ' s General Counselmaking a s s u r a n c e s t h a t Otto " w i l l study t h i s m a t t e r c a r e f u l l y and w i l l p r o v i d e[Hagenbuch] with a f u l l response i n t h e coming weeks." The promised " f u l l response"never came.

1 6 . On r around June 17 , 2011, u t s i d e counsel f o r Otto telephoned counsel f o r Hagenbuchr e q u e s t i n g time t o review t h e Hagenbuch p a t e n t s and t o respond d u r i n g t h e second w e e kof u l y 2011. Outside counsel o r Otto provided no w r i t t e n s u b s t a n t i v e r e s p o n s e .

1 7 . I n s t e a d , on o r around J u l y 8, 2011, u t s i d e counsel f o r Otto and counsel f o r Hagenbuchh e l d a e l e c o n f e r e n c e i n which Otto p r o f e s s e d i n t e r e s t i n t a k i n g a i c e n s e .

1 8 . On r around August 12, 2011, counsel f o r Hagenbuch emailed a l et t er t o o u t s i d e counsel

f o r Otto o u t l i n i n g terms of a proposed l i c e n s e and r e q u e s t i n g a response by September 9,2011.

1 9 . On r around August 25, 2011, counsel f o r Hagenbuch and o u t s i d e counsel f o r Otto h e l da t e l e c o n f e r e n c e i n which counsel f o r Otto i n d i c a t e d t h a t , due t o t r a v e l p l a n s of e r t a i ni n d i v i d u a l s , a response by t h e r e q u e s t e d d a t e of September 9, 2011 woul d be u n l i k e l y .

Hagenbuch agreed t o extend t h e r e q u e s t e d response d a t e from September 9, 2011 t oSeptember 21, 2011.

20. On r around September 21, 2011, counsel f o r Hagenbuch and o u t s i d e counsel f o r Ottoh e l d a t e l e c o n f e r e n c e i n which counsel f o r Otto r e j e c t e d Hagenbuch's l i c e n s e terms

~'


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proposed o n August 1 2 , 2011 and s t a t e d t h a t c e r t a i n p r o d u c t s and/ o r systems a r e n o tcovered by any o f h e Hagenbuch p a t e n t s , b u t s t a t e d t h a t O t t o would m ak e a r e a s o n e dc o u n t e r p r o p o s a l w i t h i n about two weeks. Counsel f o r Hagenbuch r e q u e s t e d t h a t O t t op r o v i d e an e x p l a n a t i o n s u p p o r t i n g i t s a s s e r t i o n t h a t s o m e o f i t s systems a r e n o tenc o mpa s s e d by h e c l a i m s i n Hagenbuch's p a t e n t s .

21. On o r around October 10, 2011, n e a r l y s i x t h months a f t e r i n i t i a l l y c o n t a c t i n g O t t o ,c o u n s e l f o r Hagenbuch emailed o u t s i d e c o u n s e l f o r O t t o , r e q u e s t i n g t o be a p p r i s e d a s t ot h e s t a t u s o f t t o ' s promised c o u n t e r p r o p o s a l . Hagenbuch never r e c e i v e d a e s p o n s e .

22. At no time p r i o r t o t h e f i l i n g o f h i s Complaint has O t t o a l l e g e d t h a t any Hagenbuchp a t e n t i s i n v a l i d o r u n e n f o r c e a b l e , o r i d e n t i f i e d any s p e c i f i c Hagenbuch p a t e n t c l a i ml i m i t a t i o n t h a t t a l l e g e s i s n o t m e t by any o f t t o ' s p r o d u c t s o r s y s t e m s .

23. On a n u a r y 1 7 , 2012, an Ex Parte Reexamination C e r t i f i c a t e i s s u e d f o r t h e `706 P a t e n t .A r u e and c o r r e c t c o p y o f h e Ex Parte Reexamination C e r t i f i c a t e i s s u e d f o r t h e `706P a t e n t i s a t t a c h e d h e r e t o a s E x h i b i t 3 . The e e x a m i n a t i o n p r o c e e d i n g s f o r t h e `706 P a t e n tconfirmed t h e v a l i d i t y o f e v e r a l c l a i m s , n c l u d i n g c l a i m 17 of h e `706 P a t e n t

COUNTI

INFRINGEMENTOF .S.PATENTNO. ,644,48924. P l a i n t i f f e - a l l e g e s p a r a g r a p h s 1 -23 a s i f u l l y i n c o r p o r a t e d h e r e i n .

25 . On n f o r m a t i o n and b e l i e f , Defendant has been and now s d i r e c t l y and/ o r i n d i r e c t l yi n f r i n g i n g t h e ` 489 P a t e n t i n t h e S t a t e o f l l i n o i s , i n t h i s J u d i c i a l D i s t r i c t , and e l s e w h e r ei n t h e United S t a t e s .

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26. D e f e n d a n t ' s i n f r i n g e m e nt s i n c l u d e , w i t h o u t l i m i t a t i o n , making, u s i n g , d i s t r i b u t i n g ,i m p o r t i n g , l e a s i n g , s e l l i n g o r o f f e r i n g t o s e l l t h e Res-CT system, which conduct i n f r i n g e sa t l e a s t c l a i m s 1 and 6 f h e `489 a t e n t .

27. On n f o r m a t i o n and b e l i e f , D e f e n d a n t ' s i n f r i n g e m e n t o f t h e `489 P a t e n t has been andc o n t i n u e s t o be w i l l f u l , i n c l u d i n g because i t s i n f r i n g e m e n t i s c l e a r and, a t a m i n i m um ,such c o n t i n u e d i n f r i n g e m e n t would be an o b j e c t i v e l y r e c k l e s s a c t .

28. Defendant i s t h u s l i a b l e f o r i n f r i n g e m e n t o f h e `489 P a t e n t p u r s u a n t t o 35 U.S.C. 71.

29. At l e a s t p r i o r t o t h e f i l i n g of h i s a c t i o n and w i t h r e s p e c t t o t h e `489 P a t e n t , P l a i n t i f f hadno marking o b l i g a t i o n s p u r s u a n t t o 35 U.S.C. 2 8 7 ( a ) .

30 . P l a i n t i f f has i n c u r r e d and w i l l i n c u r a t t o r n e y s ' f e e s , c o s t s , and expenses i n t h ep r o s e c u t i o n o f h i s a c t i o n . Th e c i r c u m s t a n c e s of h i s d i s p u t e c r e a t e an e x c e p t i o n a l c a s ew i t h i n t h e meaning o f 35 U.S.C. 85, and P l a i n t i f f i s e n t i t l e d t o r e c o v e r i t s r e a s o n a b l e

and n e c e s s a r y f e e s and e x p e n s e s .

COUNT IINFRINGEMENTOF . S.PATENTNO. ,416,706 C1

3 1 . P l a i n t i f f r e - a l l e g e s p a r a g r a p h s 1 -23 a s i f f u l l y i n c o r p o r a t e d h e r e i n .

3 2 . On n f o r m a t i o n and b e l i e f , Defendant has been and now s d i r e c t l y and/ o r i n d i r e c t l yi n f r i n g i n g t h e `706 P a t e n t i n t h e S t a t e o f l l i n o i s , i n t h i s J u d i c i a l D i s t r i c t , and e l s e w h e r ei n t h e United S t a t e s .


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3 3 . D e f e n d a n t ' s i n f r i n g e m e nt s i n c l u d e w i t h o u t l i m i t a t i o n , making, u s i n g , d i s t r i b u t i n g ,i m p o r t i n g , l e a s i n g , s e l l i n g and/ o r o f f e r i n g t o s e l l t h e Res-CT system, which conducti n f r i n g e s a t l e a s t c l a i m 17 o f h e `706 a t e n t .

3 4 . On n f o r m a t i o n and b e l i e f , D e f e n d a n t ' s i n f r i n g e m e n t o f t h e `706 P a t e n t has been andc o n t i n u e s t o be w i l l f u l , i n c l u d i n g because i t s i n f r i n g e m e n t i s c l e a r and, a t a m i n i m u m ,such c o n t i n u e d i n f r i n g e m e n t woul d n e c e s s a r i l y be an o b j e c t i v e l y r e c k l e s s a c t .

35. Defendant s t h u s l i a b l e f o r i n f r i n g e m e n t o f h e `706 a t e n t p u r s u a n t t o 3 5 U.S.C. 71.

36. At l e a s t p r i o r t o t h e f i l i n g o f t h i s a c t i o n and w i t h r e s p e c t t o t h e `706 P a t e n t , P l a i n t i f fHagenbuch had no marking o b l i g a t i o n s p u r s u a n t t o 3 5 U.S.C. 8 7 ( a ) .

37. P l a i n t i f f has i n c u r r e d and w i l l i n c u r a t t o r n e y s ' f e e s , c o s t s , and expenses i n t h ep r o s e c u t i o n o f h i s a c t i o n . Th e c i r c u m s t a n c e s o f h i s d i s p u t e c r e a t e an e x c e p t i o n a l c a s ew i t h i n t h e meaning o f 3 5 U.S.C. 85, and P l a i n t i f f i s e n t i t l e d t o r e c o v e r i t s r e a s o n a b l e

and n e c e s s a r y f e e s and e x p e n s e s .

PRAYERFORRELIEFWHEREFORE, l a i n t i f f Hagenbuch r e s p e c t f u l l y r e q u e s t s t h a t t h i s Court e n t e r :1 . A udgment i n f a v o r o f P l a i n t i f f Hagenbuch d e c l a r i n g t h a t Defendant has i n f r i n g e d ,

d i r e c t l y , and/ o r i n d i r e c t l y , b y w a y o f n d u c i n g and/ o r c o n t r i b u t i n g t o t h e i n f r i n g e m e n t of

t h e `489 and `706 a t e n t s ;2 . A ud g men t i n f a v o r o f l a i n t i f f Hagenbuch t h a t D e f e n d a n t ' s i nf r i n g e m e n t i s and/ o r has

been w i l l f u l ;

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3 . A udgment and o r d e r r e q u i r i n g Defendant t o pay P l a i n t i f f Hagenbuch h i s damages,c o s t s , e x p e n s e s , and p r e j u d g m e n t and p o s t udgment i n t e r e s t f o r D e f e n d a n t ' si n f r i n g e m e n t of h e `489 and `706 a t e n t s a s p r o v i d e d u n d e r 35 U.S.C. 284;

4 . An ward t o P l a i n t i f f Hagenbuch f o r enhanced damages a s p r o v i d e d u n d e r 35 U . S . C . 284;

5 . A udgment and o r d e r f i n d i n g t h a t t h i s i s an e x c e p t i o n a l c a s e w i t h i n t h e meaning of 35U.S.C. 285 and awarding o P l a i n t i f f Hagenbuch h i s r e a s o n a b l e a t t o r n e y s ' f e e s ; and

6 . An ward of any and a l l o t h e r r e l i e f t o which P l a i n t i f f Hagenbuch m a y show h i m s e l f t obe e n t i t l e d .


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DEMANDFORJURYTRIAL

P l a i n t i f f LeRoy Hagenbuch, under Rule 38 of h e F e d e r a l Rules of C i v i l P r o c e d u r e ,

r e q u e s t s a r i a l by u r y of ny s s u e s so r i a b l e by i g h t .

R e s p e c t f u l l y s u b m i t t e d ,

By: s / Joseph L. ogelOne of is A t t o r n e y s

Joseph F. o g e l , Esq.J o n a t h a n H i l l , Esq.D a r r i c k J . Hooker, sq.FREEBORN&PETERSLLP31 1 South Wacker DriveS u i t e 3000Chicago, l l i n o i s 60606Telephone: (312) 60-6000F a c s i m i l e : (312) 60-6994Email: j h i l [email protected] t t o r n e y s F or l a i n t i f fLeRoy G. Hagenbuch

Dated: March 9, 012

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Hagenbuch v. Otto Environmental Systems North America