In re Method of Processing Ethanol Byproducts & Related Subsystems ('858) Patent Litig.

• Decision Date: 23 October 2014
• Docket Number: No. 1:10–ml–02181–LJM–DML,1:10–ml–02181–LJM–DML
• Citation: 303 F.Supp.3d 791
• Court: U.S. District Court — Southern District of Indiana
• Parties: IN RE: METHOD OF PROCESSING ETHANOL BYPRODUCTS AND RELATED SUBSYSTEMS ('858) PATENT LITIGATION Related Cases: 1:10–cv–00180–LJM–DML, 1:10–cv–08001–LJM–DML, 1:10–cv–08002–LJM–DML, 1:10–cv–08003–LJM–DML, 1:10–cv–08004–LJM–DML, 1:10–cv–08005–LJM–DML, 1:10–cv–08006–LJM–DML, 1:10–cv–08007–LJM–DML, 1:10–cv–08008–LJM–DML, 1:10–cv–08009–LJM–DML, 1:10–cv–08010–LJM–DML, 1:10–cv–08011–LJM–DML

303 F.Supp.3d 791

IN RE: METHOD OF PROCESSING ETHANOL BYPRODUCTS AND RELATED SUBSYSTEMS ('858) PATENT LITIGATION Related Cases: 1:10–cv–00180–LJM–DML, 1:10–cv–08001–LJM–DML, 1:10–cv–08002–LJM–DML, 1:10–cv–08003–LJM–DML, 1:10–cv–08004–LJM–DML, 1:10–cv–08005–LJM–DML, 1:10–cv–08006–LJM–DML, 1:10–cv–08007–LJM–DML, 1:10–cv–08008–LJM–DML, 1:10–cv–08009–LJM–DML, 1:10–cv–08010–LJM–DML, 1:10–cv–08011–LJM–DML

No. 1:10–ml–02181–LJM–DML

United States District Court, S.D. Indiana, Indianapolis Division.

Signed October 23, 2014

Filed November 13, 2014

REDACTED ORDER ON CROSS MOTIONS FOR SUMMARY JUDGMENT

Larry J. McKinney, District Judge.

This Order addresses all pending motions for summary judgment filed by the original parties in this cause because the briefing incorporates by reference either facts or arguments made in other pleadings and the issues are interrelated, particularly with respect to the proper construction of claim terms. More specifically, patent holder GS CleanTech Corporation ("CleanTech") has moved for summary judgment of infringement of what has been termed the " '858 patent family:" U.S. Patent Nos. 7,601,858 (the " '858 patent") ; 8,008,516 (the " '516 patent"), 8,008,517 (the " '516 patent") ; and 8,283,484 (the " '484 patent"), collectively; against the Plant Defendants in this Multi–District Litigation ("MDL"). Specifically, CleanTech contends that no genuine issue of material fact exists with respect to infringement of the following claims of each patent in the '858 patent family as to each of these Defendants:

                Defendant `858 Patent `516 Patent `517 Patent `484 Patent
                Claims Claims Claims Claims
                Cardinal Ethanol,            1, 3, 5-8, 10-16     1-6             1               1, 3, 5, 6, 16, 19
                LLC ("Cardinal")                                                                  21, 23, 24, 26, 28-30
                Lincolnway                   8, 9                 1-4, 7-11       1, 2            1-3, 5, 6, 8, 10, 12-14
                Energy, LLC                                                                       16, 17, 27, 28
                ("Lincolnway)                                                                     30
                Blue Flint Ethanol,          1-3, 5-16            1-11            1, 2            1, 3, 5, 6, 8, 10
                LLC ("Blue Flint")                                                                12-14, 16, 17, 19-21
                                                                                                  23, 24, 26-30
                United Wisconsin             1-3, 5, 7-16         1-3, 5-11       1, 2            1-3, 5, 8, 10, 12,
                Grain Producers                                                                   14, 16, 17, 19-23,
                ("UWGP")                                                                          26-30
                Bushmills Ethanol,           8, 9                 1-4, 7-11       1, 2            1, 2, 5, 6, 8, 12-14,
                Inc. ("Bushmills")                                                                16, 17, 27, 28, 30
                Al-Corn Clean                8, 9                 1-3, 7-111      1, 2            1-3, 5, 8, 10, 12,
                Fuel ("Al-Corn")                                                                  14, 16, 17, 27, 28,
                302
                Chippewa Valley              1-3, 5-16            1-11            1, 2            1, 3, 5, 6, 8, 10,
                Ethanol Co.                                                                       12-14, 16, 17, 19-21,
                ("CVEC")                                                                          23, 24, 26-30
                Heartland Corn               8, 9                 1-4, 7-11       1, 2            1, 2, 5, 6, 8, 12-14,
                Products                                                                          16, 17, 27, 28, 30
                ("Heartland")
                Iroquois Bio-Energy          8, 9                 1-4, 7-11       1, 2            1, 2, 5, 6, 8, 12-14,
                Co.                                                                               16, 17, 27, 28, 30
                ("Iroquois")
                Ace Ethanol LLC              1-3, 5-16            1-11            1, 2            1, 3, 5, 6, 8, 10,
                ("Ace")                                                                           12-14, 16, 17, 19-21,
                                                                                                  23, 24, 26-30
                Lincolnland Agri-Energy,     1, 3, 5-8, 10-16     1-6             1               1, 3, 5, 6, 16, 19,
                LLC                                                                               21, 23, 24, 26, 28-30
                ("Lincolnland")
                Big River                    8                    1-4             1               1, 5, 16, 26, 28, 30
                Resources Galva
                LLC ("BR-Galva")
                Big River                    8                    1-4             1               1, 5, 16, 26, 28, 30
                Resources West
                Burlington, LLC
                ("BRWB")
                Adkins Energy,               8, 9                 1-4, 7-11       1, 2            1, 2, 5, 6, 8, 12-14,
                LLC ("Adkins")                                                                    16, 17, 27, 28, 30
                

[Editor's Note: The preceding image contains the references for footnotes^{1 ,2} ].

The Court will refer to these Defendants, collectively, as the "Plant Defendants" throughout this Order. The Plant Defendants have moved for summary judgment of non-infringement as to the '858 patent family. MDN 932. As an alternative defense, the Plant Defendants assert that CleanTech lacks standing to bring any claims with respect to the patents-in-suit because it failed to establish title to them in its opening brief. MDN 932, at 49;³ MDN 1096, at 29–32.

With respect to non-infringement specifically, Defendants Ace, Adkins, Al–Corn, Blue Flint, Bushmills, Cardinal, CVEC, Heartland, Iroquois, Lincolnland, Lincolnway and UWGP claim they are entitled to summary judgment on all of CleanTech's claims of infringement as to the '858 patent family either for the entire relevant period or for some relevant period because they add chemicals as an intervening, non-disclosed and disavowed step in their oil recovery processes. Independently, all the Plant Defendants claim they are entitled to summary judgment of non-infringement as to Claim 15 of the '858 patent ; Claim 10 of the '516 patent ; and Claims 1–3, 5, 6, 8, 10, 12–14, 16, 17, 19–24 and 26–29 of the '484 patent ; because none of them dries thin stillage concentrate or concentrated byproduct as required by those claims. Defendants Ace, Adkins, Al–Corn, Blue Flint, Bushmills, CVEC, Heartland, Iroquois, Lincolnway, and UWGP assert that they are entitled to summary judgment of non-infringement as to Claims 7–10 of the '516 patent and Claims 8, 10, 12–14, and 27 of the '484 patent.

Further, Iroquois argues that it is entitled to summary judgment of noninfringement as to Claims 2 and 9 of the '516 patent, and Claim 14 of the '484 patent for independent reasons. MDN 923. Lincolnway joins Iroquois' argument with respect to Claim 9 of the '516 patent. MDN 930.

In addition, Cardinal asserts that it is entitled to summary judgment on all of CleanTech's infringement claims against it because CleanTech and the Court have impermissibly broadened the scope of the term "oil" during claim construction and urges the Court to clarify the scope of that term. MDN 924. If the Court does so as Cardinal urges, Cardinal argues that its process cannot infringe the claims of the '858 patent family. Id.

Ace and GEA Mechanical Equipment US, Inc. ("GEA"), have moved for summary judgment on the issue of liability for inducing or contributing to infringement of the '858 patent family. MDN 934.

Adkins has also moved for summary judgment on its affirmative defense of unclean hands in which it incorporates by reference its Motion for Sanctions. MDN 809 & 925.

In a separate, but integrated brief, the Plant Defendants, along with the remaining original defendants, Flottweg Separation Technologies, Inc., Flottweg AG (collectively, "Flottweg"), GEA, ICM, Inc., and David J. Vander Griend (all original defendants, collectively, "Defendants"); have moved for summary judgment as to their affirmative defense and/or counterclaim of invalidity of the '858 patent family, as to CleanTech's request for provisional remedies and as to CleanTech's request for enhanced damages for willful infringement of the '858 patent family. MDN 940. CleanTech has cross-moved for summary judgment of no invalidity under 35 U.S.C. § 112 against these Defendants. MDN 1005, 1008–1024.

Furthermore, CleanTech has asserted that a sub-set of the Original Defendants infringe a companion patent, U.S. Patent No. 8,168,037 (the " '037 patent"). Specifically, CleanTech alleges that each of the following Defendants infringes the listed claims of the '037 patent :

Defendant '037 Patent Claims
                Cardinal        1, 6, 8, 9, 13, 15
                Lincolnway      1, 2, 6-11, 13, 15
                Blue Flint      1, 2, 6-11, 13, 15
                Lincolnland     1, 6, 8, 9, 13, 15
                BR-G            1, 6, 8, 9, 13, 15
                BRWB            1, 6, 8, 9, 13, 15
                

MDN 986 at 6. CleanTech has moved for summary judgment as to all of these asserted claims of the '037 patent against each of these Defendants, which the Court shall refer to, collectively, as the " '037 Plant Defendants." MDN 980–85. The '037 Plant Defendants and an additional subset of the Original Defendants, ICM, Vander Griend and Flottweg (all of these Defendants, collectively, the " '037 Defendants"), have moved for summary judgment of invalidity and noninfringement of the '037 patent. MDN 1071. CleanTech has cross-moved for summary judgment of no invalidity under 35 U.S.C. § 102(e). MDN 1142–1159.

I. SUMMARY JUDGMENT STANDARD

On cross-motions for summary judgment, the Court must apply the ordinary standards pursuant to Rule 56 of the Federal Rules of Civil Procedure (" Rule 56") as to each individual motion. See McKinney v. Cadleway Props., Inc. , 548 F.3d 496, 504 n.4 (7th Cir. 2008) ; Chevron U.S.A. v. Mobil Prod. Tx. & N.M. , 281 F.3d 1249, 1252–53 (Fed. Cir. 2002). In other words, each motion must be considered separately and the non-moving party given the benefit of favorable inferences. Chevron , 281 F.3d at 1253.

As stated by the Supreme Court, summary judgment is not a disfavored...