Medisim Ltd. v. Bestmed LLC

Decision Date28 November 2012
Docket NumberNo. 10 Civ. 2463(SAS).,10 Civ. 2463(SAS).
Citation910 F.Supp.2d 591
PartiesMEDISIM LTD., Plaintiff, v. BESTMED LLC, Defendant.
CourtU.S. District Court — Southern District of New York

OPINION TEXT STARTS HERE

Gerald Levy, Esq., Keith J. McWha, Esq., Mark H. Anania, Esq., Scott Christie, Esq., McCarter English, LLP, Newark, NJ, for Medisim Ltd.

Nicholas L. Coch, Esq., Kramer, Levin, Naftalis & Frankel, LLP, New York, NY, Talivaldis Cepuritis, Esq., Joseph M. Kuo, Esq., Anita M. Cepuritis, Esq., Brian R. Michalek, Esq., Olson & Cepuritis, Ltd., Chicago, IL, for BestMed LLC.

OPINION AND ORDER

SHIRA A. SCHEINDLIN, District Judge.

+-------------------+
                ¦TABLE OF CONTENTS  ¦
                +-------------------¦
                ¦                   ¦
                +-------------------+
                
+---------------------------------------------------+
                ¦I. ¦INTRODUCTION                              ¦599 ¦
                +---+------------------------------------------+----¦
                ¦   ¦                                          ¦    ¦
                +---+------------------------------------------+----¦
                ¦II.¦BACKGROUND                                ¦600 ¦
                +---------------------------------------------------+
                
+------------------------------------------+
                ¦  ¦A.¦Undisputed Facts               ¦600 ¦
                +--+--+-------------------------------+----¦
                ¦  ¦B.¦Disputed Facts                 ¦601 ¦
                +--+--+-------------------------------+----¦
                ¦  ¦C.¦The Invention                  ¦601 ¦
                +--+--+-------------------------------+----¦
                ¦  ¦D.¦Procedural History             ¦602 ¦
                +------------------------------------------+
                
+-------------------------------------------------------------------+
                ¦    ¦                                                       ¦      ¦
                +----+-------------------------------------------------------+------¦
                ¦III.¦LEGAL STANDARD                                         ¦603   ¦
                +----+-------------------------------------------------------+------¦
                ¦    ¦                                                       ¦      ¦
                +----+-------------------------------------------------------+------¦
                ¦IV. ¦APPLICABLE LAW                                         ¦604   ¦
                +-------------------------------------------------------------------+
                
+----------------------------------------------------------------------------+
                ¦    ¦A.  ¦Unfair Competition and False Designation of Origin Under  ¦604    ¦
                ¦    ¦    ¦the Lanham Act                                            ¦       ¦
                +----+----+----------------------------------------------------------+-------¦
                ¦    ¦B.  ¦Unfair Competition Under New York Common Law              ¦606    ¦
                +----+----+----------------------------------------------------------+-------¦
                ¦    ¦C.  ¦False Advertising Under the Lanham Act                    ¦606    ¦
                +----+----+----------------------------------------------------------+-------¦
                ¦    ¦D.  ¦False Advertising Under New York Law                      ¦607    ¦
                +----+----+----------------------------------------------------------+-------¦
                ¦    ¦E.  ¦Deceptive Acts Under New York Law                         ¦607    ¦
                +----+----+----------------------------------------------------------+-------¦
                ¦    ¦F.  ¦Unjust Enrichment                                         ¦608    ¦
                +----+----+----------------------------------------------------------+-------¦
                ¦    ¦G.  ¦Availability of Statutory Damages for Copyright           ¦608    ¦
                ¦    ¦    ¦Infringement                                              ¦       ¦
                +----+----+----------------------------------------------------------+-------¦
                ¦    ¦H.  ¦Provisional Rights                                        ¦608    ¦
                +----+----+----------------------------------------------------------+-------¦
                ¦    ¦I.  ¦Patent Validity                                           ¦609    ¦
                +----+----+----------------------------------------------------------+-------¦
                ¦    ¦J.  ¦Patent Infringement                                       ¦610    ¦
                +----+----+----------------------------------------------------------+-------¦
                ¦    ¦K.  ¦Inequitable Conduct                                       ¦610    ¦
                +----------------------------------------------------------------------------+
                
+-----------------------------------+
                ¦  ¦                            ¦   ¦
                +--+----------------------------+---¦
                ¦V.¦DISCUSSION                  ¦611¦
                +-----------------------------------+
                
+----------------------------------------------------------------------------+
                ¦    ¦A.  ¦Unfair Competition and False Designation of Origin Under  ¦611    ¦
                ¦    ¦    ¦the Lanham Act                                            ¦       ¦
                +----------------------------------------------------------------------------+
                
+----------------------------------------------------+
                ¦   ¦   ¦1.¦Trade Dress                         ¦611 ¦
                +----------------------------------------------------+
                
+------------------------------------------------------------+
                ¦    ¦   ¦  ¦a.¦Descriptions of the Claimed Trade Dress¦611  ¦
                +----+---+--+--+---------------------------------------+-----¦
                ¦    ¦   ¦  ¦b.¦Evidence of Distinctiveness            ¦613  ¦
                +------------------------------------------------------------+
                
+----------------------------------------------------+
                ¦   ¦   ¦2.¦The CVS SKU                         ¦615 ¦
                +----------------------------------------------------+
                
+----------------------------------------------------------+
                ¦   ¦B. ¦Unfair Competition Under New York Common Law¦615  ¦
                +----------------------------------------------------------+
                
+----------------------------------------------------+
                ¦   ¦   ¦1.¦Likelihood of Confusion             ¦615 ¦
                +---+---+--+------------------------------------+----¦
                ¦   ¦   ¦2.¦Bad Faith                           ¦616 ¦
                +----------------------------------------------------+
                
+---------------------------------------------------+
                ¦   ¦C. ¦False Advertising Under the Lanham Act¦617 ¦
                +---------------------------------------------------+
                
+-----------------------------------------------------------------+
                ¦    ¦   ¦1.¦Standing                                      ¦617   ¦
                +----+---+--+----------------------------------------------+------¦
                ¦    ¦   ¦2.¦Falsity and Likelihood of Misleading Consumers¦618   ¦
                +-----------------------------------------------------------------+
                
+------------------------------------------------------------------------+
                ¦    ¦D.  ¦False Advertising and Deceptive Acts Under New York Law¦618   ¦
                +----+----+-------------------------------------------------------+------¦
                ¦    ¦E.  ¦Unjust Enrichment                                      ¦619   ¦
                +----+----+-------------------------------------------------------+------¦
                ¦    ¦F.  ¦Availability of Statutory Damages                      ¦619   ¦
                +----+----+-------------------------------------------------------+------¦
                ¦    ¦G.  ¦Provisional Rights                                     ¦620   ¦
                +----+----+-------------------------------------------------------+------¦
                ¦    ¦H.  ¦Patent Validity                                        ¦621   ¦
                +----+----+-------------------------------------------------------+------¦
                ¦    ¦I.  ¦Patent Infringement                                    ¦623   ¦
                +------------------------------------------------------------------------+
                
+----------------------------------------------------+
                ¦   ¦   ¦1.¦The Apparatus Claim                 ¦623 ¦
                +---+---+--+------------------------------------+----¦
                ¦   ¦   ¦2.¦The Method Claim                    ¦624 ¦
                +----------------------------------------------------+
                
+------------------------------------------+
                ¦  ¦J.¦Inequitable Conduct            ¦626 ¦
                +------------------------------------------+
                
+----------------------------------------------------------+
                ¦   ¦   ¦1.¦Pre–Critical Date Commercial Activities  ¦626  ¦
                +---+---+--+-----------------------------------------+-----¦
                ¦   ¦   ¦2.¦Omission of Two Patents from the IDS     ¦627  ¦
                +---+---+--+-----------------------------------------+-----¦
                ¦   ¦   ¦3.¦Yarden's Representations of the Prior Art¦628  ¦
                +----------------------------------------------------------+
                
+---------------------------------------------------+
                ¦   ¦                                          ¦    ¦
                +---+------------------------------------------+----¦
                ¦VI.¦CONCLUSION                                ¦629 ¦
                +---------------------------------------------------+
                

I. INTRODUCTION

Medisim Ltd. (Medisim) brings this action against BestMed LLC (BestMed) for patent and copyright infringement, unfair competition/false designation of origin under the Lanham Act, false advertising under the Lanham Act, false advertising under New York law, deceptive acts and practices under New York law, unfair competition under New York law, and unjust enrichment. 1 BestMed has brought counterclaimsfor declaratory judgment of patent noninfringement, declaratory judgment of patent invalidity, false patent marking, and patent unenforceability due to inequitable conduct. 2

On June 29, 2012, the Court held a pre-motion conference to discuss the parties' proposed grounds for potential summary judgment motions. The Court spent considerable judicial resources to review the parties' pre-conference submissions and consider the strength of their potential motions. At the conference, I advised the parties not to move on the grounds for which there was likely a disputed issue of fact.3 BestMed ignored my advice and moved for summary judgment on all of the grounds they raised in their pre-conference letter.4 For the reasons set forth below, the motions are granted in part and denied in part. Unsurprisingly, summary judgment is denied on all of the claims that the Court advised BestMed to exclude from its summary judgment motion.

II. BACKGROUNDA. Undisputed Facts5

In November 2004, BestMed and Medisim entered into an International Distributorship Agreement (“Distribution Agreement”) for BestMed to distribute Medisim's digital, conductive forehead thermometer in the United States and Canada.6 Between the signing of the Distribution Agreement and its May 1, 2009 termination,...

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