Struthers Patent Corp. v. Nestle Co., Inc.

Decision Date13 October 1981
Docket NumberCiv. A. No. 663-72.
Citation558 F. Supp. 747
PartiesSTRUTHERS PATENT CORPORATION, Plaintiff, v. The NESTLE COMPANY, INC., Defendant, v. STRUTHERS WELLS CORPORATION, et al., Additional Defendants on Counterclaim.
CourtU.S. District Court — District of New Jersey

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Waldron Kraemer, Kasen & Kraemer, P.C., Newark, N.J., Michael Lesch, Richard M. Goldstein, Adam Gilbert, Shea & Gould, William Drucker, New York City, for Struthers; Jay M. Cantor, Washington, D.C., of counsel.

Ralph N. Del Deo, Crummy, Del Deo, Dolan & Purcell, Newark, N.J., William H. Vogt, III, Paul E. O'Donnell, Jr., Charles M. Caruso, Marcus J. Millet, Vogt & O'Donnell, White Plains, N.Y., for Nestle.

                          TABLE OF CONTENTS
                                                                      Page
                   Introduction
                A. Background                                         752
                B. General Comments about the Summary
                   Judgment Motions                                   753
                       I. The Special Master's Report
                A. The Destroyed Documents                            756
                B. Struthers' Knowledge of Impending
                   Litigation                                         758
                C. Relationship of the Documents to the
                   Issues                                             759
                D. Present Availability of the Destroyed
                   Documents                                          761
                E. Sanctions to be Imposed                            763
                      II. The Muller Patents
                A. Description of the Patents                         767
                   1. Muller '007 Patent                              767
                   2. Muller '522 Patent                              768
                B. Prosecution of the Muller Applications             769
                   1. The Muller I Application (the
                      '007 Patent)                                    769
                      a. The Petition to Accelerate                   769
                      b. The Examiner's First Action                  770
                      c. The Examiner's Second Action                 771
                      d. The Interview with the
                         Examiner                                     772
                   2. The Muller II Application                       773
                      a. The Examiner's First Action                  773
                      b. The Product-by-Process Claim                 774
                      c. The Double Patenting Rejection               774
                      d. The Prior Art Rejection                      774
                      e. Muller II - The Decision of the
                         Board of Appeals                             775
                   3. The Muller III Application (the
                      '522 Patent)                                    775
                C. The CCPA Clinton Decision                          776
                D. Prior Sale - Nestle's and Struthers'
                   Contentions                                        777
                   1. Facts Relied upon by Nestle                     777
                   2. Facts Relied upon by Struthers                  780
                
                                                                     Page
                E. Invalidity over the Prior Art                      781
                   1. Presumption of Validity                         781
                   2. Summary Judgment Standards                      784
                   3. '007 Patent Prior Art                           785
                   4. Differences between the Prior Art
                      and the '007 Claims                             786
                   5. The '522 Patent                                 790
                F. Invalidity by reason of Prior Sale                 791
                G. Conclusion                                         793
                     III. The Ganiaris '295 and '034 Patents
                A. Description of the Patents                         794
                   1. The Ganiaris '295 Patent                        794
                   2. The Ganiaris '034 Patent                        795
                B. Prosecution of the Ganiaris Applications           796
                   1. The Ganiaris I Application                      796
                   2. The Ganiaris II Application                     796
                   3. The Ganiaris III Application
                      (the '295 Patent)                               798
                   4. The Ganiaris IV Application
                      (the '034 Patent)                               799
                C. Prior Sale - Nestle's and Struthers'
                   Contentions                                        801
                   1. Facts Relied upon by Nestle                     801
                   2. Facts Relied upon by Struthers                  802
                D. Abandonment of the '295 Patent                     802
                E. Invalidity of the '295 Patent under ? 112          804
                F. Invalidity of the '295 Patent over the
                   Prior Art - Obviousness                            805
                   1. Applicable '295 Filing Date                     805
                   2. Prior Art                                       806
                G. Invalidity of the '295 Patent under
                   ? 102(d)                                           808
                H. Invalidity of the '034 Patent over the
                   Prior Art - Obviousness                            810
                   1. Applicable Filing Date                          810
                      a. Ganiaris I and II Filing Dates               810
                      b. The British Application Filing
                         Date                                         812
                   2. Prior Art                                       812
                I. Invalidity of the '034 Patent under ? 112          814
                J. Conclusion                                         814
                      IV. The Reimus Patents
                A. Description of the Patents                         815
                   1. Reimus '302 Patent                              815
                   2. Reimus '129 Patent                              816
                   3. Reimus '353 Patent                              817
                   4. Reimus '723 Patent                              818
                B. Prosecution of the Reimus Applications             818
                   1. The Reimus I Application (the
                      '302 Patent)                                    818
                   2. The Reimus II Application (the
                      '129 Patent)                                    821
                   3. The Reimus III Application (the
                      '353 Patent)                                    822
                   4. The Reimus IV Application
                      (the '723 Patent)                               824
                C. Prior Sale - Nestle's and Struthers'
                   Contentions                                        825
                   1. Facts Relied upon by Struthers                  825
                   2. Facts Relied upon by Nestle                     825
                D. Abandonment of the Four Reimus
                   Applications                                       827
                E. Invalidity of the '129 and '353 Patents for
                   Claiming Subject Matter Previously Given
                   Up                                                 827
                F. Invalidity by Reason of Prior Sale                 830
                G. Invalidity under ? 112                             832
                H. Invalidity of the Reimus Patents over
                   Prior Art - Obviousness                            833
                I. Invalidity for Withholding Information             835
                J. Conclusion                                         835
                       V. The '126 and '722 Patents
                A. Description of the Patents                         836
                   1. The Howell '126 Patent                          836
                   2. The Ganiaris '722 Patent                        837
                B. Prosecution of the Applications                    838
                   1. The Howell Application (the
                      '126 Patent)                                    838
                   2. The Abandoned Ganiaris A Application
                      (Serial No. 651,451)                            838
                   3. The Ganiaris B Application (the
                      '722 Patent)                                    841
                C. Prior Sale - Nestle's and Struthers'
                   Contentions                                        843
                   1. Nestle's Initial Submission                     843
                   2. Struthers' Initial Response                     844
                   3. Nestle's Reply                                  844
                   4. Struthers' Surrebuttal                          844
                D. Invalidity of the '126 Patent under ? 112          845
                E. Invalidity of the '126 Patent over the
                   Prior Art - Obviousness                            846
                F. Invalidity of the '126 Patent by Reason
                   of Prior Sale                                      848
                G. Invalidity of '722 Patent under ? 112              849
                H. Invalidity of the '722 Patent over the
                   Prior Art - Obviousness                            850
                   1. Ganiaris A Filing Date                          850
                   2. British Application Filing Date                 852
                   3. Invalidity of the '722 Patent under
                      ? 102(d)                                        852
                   4. Invalidity of the '722 Patent under
                      ? 102(b)                                        853
                I. Invalidity of the '722 Patent by Reason
                   of Prior Sale                                      853
                J. Conclusion                                         853
                   Appendix A
                
OPINION

Introduction

DEBEVOISE, District Judge.

Plaintiff, Struthers Patent Corporation, filed its complaint on April 13, 1972, alleging that defendant, The Nestle Company, Inc., was infringing ten Struthers patents by its manufacture and sale of soluble coffee. Nestle denied infringement and asserts that each of the patents is invalid and unenforceable. Nestle filed a counterclaim seeking, in one Count, a declaratory judgment of invalidity and unenforceability of each of the ten patents and asserting, in a second Count, a claim alleging unfair competition. Nestle joined as defendants on the counterclaim two corporations which are affiliated with plaintiff ?€” Struthers Wells Corporation and Struthers Scientific and International Corporation. The three affiliated corporations will be referred to collectively as "Struthers".

The case has had a protracted pretrial history. Two matters are now ripe for disposition: (i) Struthers' motion to confirm the report and recommendation of a special master concerning sanctions to be imposed by reason of Struthers' destruction of relevant documents prior to institution of this action, and (ii) Nestle's motions for summary judgment of invalidity and/or unenforceability of the ten patents in suit.

For the reasons which are set forth in Parts I through V of this opinion, the findings of the special master will be adopted in part, modified in part, and rejected in part, but his recommendation that no sanctions be imposed will be adopted; Nestle's motions for summary judgment of invalidity of the ten patents will be...

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