Indiana Intellectual Property Law News

May 29, 2015

Indiana Patent Litigation: Starmark Funeral Products Sues Matthews International Alleging Patent Infringement

Indianapolis, Indiana – Indiana patent attorneys for Vandor Corporation d/b/a Starmark Funeral Products of Richmond, Indiana filed a patent-infringement complaint in the Southern District of Indiana alleging that Matthews International Corporation of Pittsburgh, Pennsylvania and Matthews International – Cremation Division of Apopka, Florida (collectively, “Matthews”) infringed Patent No. 8,104,151, entitled “Lightweight Casket Having Foldable Features,” which has been issued by the U.S. Patent and Trademark Office.

Plaintiff Vandor claims ownership of United States Patent No. 8,104,151 (“the ‘151 Patent”). Vandor indicates in this intellectual property complaint that it has sold a cremation-insert product that embodies claims of the ‘151 Patent since at least 2009.

Defendants are accused of the manufacture, use, offer for sale, and/or sale of the “Matthews Cremation Fold-Down Rental Insert,” which Vandor contends directly infringes at least claim 1 of the ‘151 Patent under 35 U.S.C. § 271(a) literally and/or under the doctrine of equivalents.

Plaintiff also claims that Matthews intended to induce patent infringement by others as well as has contributorily infringed the ‘151 Patent under 35 U.S.C. § 271(c) literally and/or under the doctrine of equivalents. Finally, Vandor contends that Matthews been aware that it has been infringing since approximately January 2015. Consequently, Matthews’ alleged infringement has been labeled as “willful and deliberate” by Plaintiff.

The Indiana patent lawyers for Plaintiff ask the Southern District of Indiana to:

• Declare that United States Letters Patent 8,104,151 was duly and legally issued, is valid and is enforceable;
• Enter judgment that Defendants have infringed at least claim 1 of the ‘151 Patent;
• Enter judgment that Defendants have induced infringement of at least claim 1 of the ‘151 Patent;
• Enter judgment that Defendants have contributed to infringement of at least claim 1 of the ‘151 Patent;
• Enter a preliminary and permanent injunction enjoining Defendants and their agents, from any further sales or use of their infringing products and any other infringement of claims of the ‘151 Patent, whether direct or indirect, pursuant to 35 U.S.C. § 283;
• Award damages to compensate Vandor for Defendants’ infringement of the claims of the ‘151 Patent pursuant to 35 U.S.C. § 284;
• Award enhanced damages pursuant to 35 U.S.C. § 284;
• Award pre-judgment and post-judgment interest and costs to Vandor in accordance with 35 U.S.C. § 284; and

• Deem this to be an “exceptional” case within the meaning of 35 U.S.C. § 285, entitling Vandor to an award of its reasonable attorney fees, expenses and costs in this action.

May 28, 2015

New EFF “404” Report Shows How Restrictive Copyright Policies Stifle Online Speech Worldwide

By Overhauser Law Offices, LLC

San Francisco, California – Overly-broad intellectual property (“IP”) laws in Russia, Colombia, and Pakistan – which U.S. trade regulators say aren’t tough enough – stifle access to innovation and threaten artists, students, and creators around the globe with prison, censorship, and state prosecution, the Electronic Frontier Foundation (“EFF”) said in a new report released recently.

EFF’s “Special 404 Report” is a response to the “Special 301 Report.” The latter report, which EFF called biased and “a deeply flawed annual assessment of international intellectual property rights policies,” was released in April by the Office of the U.S. Trade Representative (“USTR”). The Special 301 Report is used to pressure countries to adopt IP laws supported by some powerful business interests.

In a first-of-its-kind analysis countering what EFF called the USTR’s “name and shame” tactics, EFF argues that the Special 301 Report paints a one-sided picture of IP rights and fails to disclose the damaging results of draconian IP policies. Examples include a human rights activist in Russia who was targeted by prosecutors using criminal copyright law, a biologist in Colombia who faces prison for sharing research, and students in Pakistan who struggle to exercise their rights under local law to study academic papers.

May 27, 2015

Chinese Professors Among Six Defendants Charged with Economic Espionage and Theft of Trade Secrets

By Overhauser Law Offices, LLC

Los Angeles, California – Chinese professors have been accused of having stolen valuable technology from Avago Technologies and Skyworks Solutions to benefit a university in the People’s Republic of China.

On May 16, 2015, Tianjin University Professor Hao Zhang was arrested upon entry into the United States from the People’s Republic of China (“PRC”) in connection with a recent superseding indictment in the Northern District of California, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Melinda Haag of the Northern District of California and Special Agent in Charge David J. Johnson of the FBI’s San Francisco Division.

The 32-count indictment, which had previously been sealed, charges a total of six individuals with economic espionage and theft of trade secrets for their roles in a long-running effort to obtain U.S. trade secrets for the benefit of universities and companies controlled by the PRC government.

May 26, 2015

Indiana Patent Litigation: Lilly Files a New Complaint Against HEC Pharm for Infringement of Effient Patents

By Overhauser Law Offices, LLC

Indianapolis, Indiana – An Indiana patent attorney for Eli Lilly and Company of Indianapolis, Indiana; Daiichi Sankyo Co., Ltd. of Tokyo, Japan; Daiichi Sankyo, Inc. of Parsippany, New Jersey; and Ube Industries, Ltd of Yamaguchi, Japan filed a federal lawsuit in the Southern District of Indiana alleging that HEC Pharm USA, Inc. of Princeton, New Jersey and HEC Pharm Co. Ltd. of Yichang, China, infringed Patent Nos. 8,404,703 and 8,569,325, which cover the patented pharmaceutical Effient (pictured left). These patents have been issued by the U.S. Patent Office.

Effient products were approved by the FDA for the reduction of thrombotic cardiovascular events in certain patients with acute coronary syndrome (ACS) who are to be managed with percutaneous coronary intervention (PCI, or angioplasty). Effient products contain prasugrel hydrochloride, which is also known as 5-[(1RS)-2-cyclopropyl-1-(2-fluorophenyl)-2-oxoethyl]-4,5,6,7-tetrahydrothieno[3,2-c]pyridin-2-yl acetate hydrochloride.

The instructions accompanying Effient products state that patients taking Effient products should also take aspirin. The use of Effient products in combination with aspirin for the reduction of thrombotic cardiovascular events in patients with ACS who are to be managed with PCI is allegedly covered by the claims of the ‘703 and ‘325 patents.

In July 2014, Plaintiffs sued Defendants asserting infringement of the ‘703 patent. That complaint asserted patent infringement arising out of the filing by HEC Pharm of an Abbreviated New Drug Applications (“ANDA”) with the United States Food and Drug Administration (“FDA”) seeking approval to manufacture and sell generic versions of two pharmaceutical products – Effient 5mg and Effient 10mg tablets – prior to the expiration of the ‘703 patent. This patent covers a method of using Effient products for which Lilly claims an exclusively license. Specifically, HEC Pharm was accused of planning to infringe the patent-in-suit by including with its products instructions for use that substantially copied the instructions for Effient products, including instructions for administering HEC Pharm’s products with aspirin as claimed in the ‘703 patent.

Plaintiffs contended in this earlier lawsuit that HEC Pharm knew that the instructions that HEC Pharm intended to include with its products would induce and/or contribute to others using those products in the allegedly infringing manner set forth in the instructions. Moreover, Lilly et al. also contended that HEC Pharm specifically intended for health care providers, and/or patients to use HEC Pharm’s products in accordance with the instructions provided by HEC Pharm and that such use would directly infringe one or more claims of the ‘703 patent. Thus, stated Plaintiffs, HEC Pharm’s actions would actively induce and/or contribute to infringement of the ‘703 patent.

This prior complaint, also filed by the Indiana patent lawyer who filed this lawsuit, listed two counts:

• Count I: Infringement of U.S. Patent No. 8,404,703

• Count II: Declaratory Judgment of Infringement of U.S. Patent No. 8,404,703

That patent infringement lawsuit was dismissed without prejudice shortly thereafter. It has in effect been replaced with this current complaint, which includes the prior counts and adds the following:

• Count III: Infringement of U.S. Patent No. 8,569,325

• Count IV: Declaratory Judgment of Infringement of U.S. Patent No. 8,569,325

Plaintiffs ask the court for: a judgment of infringement; injunctive relief; a judgment regarding the effective date of Defendants’ ANDA; monetary damages; the case to be deemed exceptional; a judgment that the patents-in-suit remain valid and enforceable; and Plaintiffs to be awarded reasonable attorney’s fees, costs and expenses.

May 22, 2015

Indiana Trademark Litigation: Hard Rock Hotel Sues Alleging Infringement of Trademarked “Rehab” Pool Party

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Indiana trademark attorneys for HRHH Hotel/Casino, LLC and HRHH IP, LLC, both of Las Vegas, Nevada (collectively, “HRHH”), commenced a trademark lawsuit in the Southern District of Indiana alleging that Bella Vita, LLC, Henri B. Najem, Jr. and 10 unknown defendants, all of Indiana, infringed various trademarks belonging to HRHH.

The HRHH entities together claim ownership to the Hard Rock Hotel & Casino Las Vegas located in Las Vegas, Nevada, along with certain intellectual property rights used in connection with that establishment.

HRHH contends that it created a daytime pool party held at the Hard Rock Hotel & Casino Las Vegas known as the “Rehab Pool Party” or simply “Rehab”. The Hard Rock Hotel & Casino Las Vegas indicates that the Rehab Pool Party was first held in 2004 and that the Rehab Pool Party is still being held regularly. HRHH asserts that its Rehab Pool Party has become famous and that it has licensed the REHAB marks to third parties for clothing and other merchandise.

Bella Vita, an Indianapolis provider of restaurant, bar and related entertainment services, has been accused of organizing and hosting weekly pool parties that are confusingly marketed as “Rehab+ Sundays”.

This federal lawsuit has brought under trademark and anti-dilution laws of the United States, 15 U.S.C. § 1051, et seq., the trademark laws of the State of Indiana, Ind. Code § 24-2-1, and under the statutory and common law of unfair competition. The trademarks at issue, all of which have been registered by the U.S. Trademark Office, are as follows:

• Trademark Registration No. 3,873,673 REHAB
• Trademark Registration No. 4,524,097 REHAB
• Trademark Registration No. 4,611,979 REHAB RX
• Trademark Registration No. 3,182,848 Rxehab
• Trademark Registration No. 4,615,774 Rxehab

• Trademark Registration No. 3,170,859 Rxehab

In the complaint against Bella Vita, its managing member Najem and the unnamed Does, Indiana trademark lawyers for Plaintiffs assert the following causes of action:

• False Designation of Origin and Unfair Competition – 15 U.S.C § 1125(a)
• Trademark Infringement – 15 U.S.C. § 1114, Ind. Code § 24-2-1-13, and Common Law
• Dilution – 15 U.S.C. § 1125(c)

• Unfair Competition

Plaintiffs ask the court for a finding that Defendants have engaged in trademark infringement, trademark dilution and unfair competition; for injunctive relief; for a finding that HRHH is the exclusive owner of the REHAB Marks and that such marks are valid and protectable; for an award of damages and profits earned as a result of infringing activity; for punitive damages; and for an award of interest, costs, expenses, and reasonable attorneys’ fees.

May 21, 2015

Committee Approves TROL Act to Squash Patent Trolls

By Overhauser Law Offices, LLC

WASHINGTON DC – The House Energy and Commerce Committee recently voted to approve H.R. 2045, the Targeting Rogue and Opaque Letters (TROL) Act, by a vote of 30 to 22. Authored by Commerce, Manufacturing, and Trade Subcommittee Chairman Michael C. Burgess, M.D. (R-TX), the TROL Act was designed to help stop the practice of abusive patent demand letters while protecting the rights of legitimate patent holders to protect their intellectual property.

The TROL Act increases transparency and accountability in patent demand letters so businesses can weed out deceptive letters. The Act also establishes a national standard for the enforcement of abusive patent demand letters and allows the Federal Trade Commission (FTC) and state attorneys general to levy fines on bad actors.

“This legislation takes on a costly scam that, by many accounts, continues to worsen,” said Burgess. “The very real problem of abusive patent demand letters compels us to find a solution expressly designed to enable enforcement that’s free of constitutional setbacks.” To learn more about the TROL Act, click here.

May 20, 2015

Indiana Trademark Litigation: Integrity Trade Services Sues Ex-Employees Alleging Conspiracy and Conversion

By Overhauser Law Offices, LLC

South Bend, Indiana – Trademark attorneys for Integrity Trade Services, Inc. (“ITS”) of Frankfort, Illinois filed an intellectual property complaint in the Northern District of Indiana naming as Defendants Integrity Employment Partners, LLC, Integrity Trade Services, LLC, Janice Hernandez, James Hernandez, Michaela Williams, and Jason Reis, all of Indiana, and alleging multiple claims, including trademark infringement, conversion of ITS trade secrets, breach of contract, and tortious interference with business relationships.

ITS is a national staffing services company, doing businesses in multiple states, including Indiana, Florida, Illinois, and Texas. ITS is wholly owned by John E. Cumbee, III. In 2008, ITS acquired all of the operational assets of the Knox, Indiana branch of a staffing company owned by CES America, Inc. ITS also hired most, if not all, of the CES employees then working at the Knox facility, including defendants James and Janice Hernandez.

ITS contends that, since purchasing the Knox facility, it has invested well over $1 million to build the Knox business and the ITS brand as it is related to that facility. It asserts in this federal lawsuit, inter alia, that Defendants conspired to convert ITS’ customers, employees and trade secrets for their own use.

The accused in this case are husband and wife Janice Hernandez and James Hernandez; several family members of Janice Hernandez, including Michaela Williams, and Jason Reis; and two entities apparently owned by the Hernandezes, Integrity Employment Partners, LLC, Integrity Trade Services, LLC.

Defendant James Hernandez (“James”) worked for ITS from the time that ITS acquired the business until April 30, 2015 when he was fired. ITS asserts that James engaged in a conspiracy to solicit away and convert (a) ITS’ office employees at the Knox location, (b) at least the active ITS field employees servicing the Knox location, and (c) customers comprising the Knox-area business. He is accused of attempting to transfer them to Integrity Employment Partners, LLC, an Indiana limited liability company formed to process the Knox business converted from ITS for his benefit and the benefit of the other co-conspirators.

Defendant Janice Hernandez (“Janice”), also became employed by ITS when ITS was acquired from its prior owner. She has been accused of not only being an integral part of the alleged conspiracy but also of being “likely its “‘mastermind.'” Defendant Michaela Williams is Janice’s daughter. Defendant Jason Reis is the ex-son-in-law of James and Janice, having been married to another of Janice’s daughters.

ITS states that, in the last two weeks in April 2015, it discovered various anomalies in the Knox business. These anomalies alerted ITS to the activities that triggered this federal lawsuit. They included a drop off in weekly gross sales, the formation of Integrity Employment Partners, LLC (“IEP”), and checks issued by existing ITS customers made payable to IEP (and not ITS).

Defendants are accused of orchestrating a scheme to confuse ITS’ customers and employees regarding with which staffing businesses using the name “Integrity” – Plaintiff’s firm or Defendants’ firms – those customers and employees were transacting business. In doing so, ITS contends, Defendants attempted with some success to convert ITS’ business assets and relationships for Defendants’ benefit. Allegations of criminal conduct by Defendants were also made. In a 48-page complaint, filed by trademark lawyers for Plaintiff, those claims and others are made:

• Count I: Federal Trademark Infringement
• Count II: Federal Unfair Competition
• Count III: Illinois Deceptive Trade Practices Act
• Count IV: Breach of Fiduciary Duty
• Count V: Breach of Agreement
• Count VI: Tortious Interference with Contract
• Count VII: Tortious Interference with Business Relationships
• Count VIII: Conversion
• Count IX: Computer Fraud and Abuse Act
• Count X: Uniform Trade Secrets Act
• Count XI: Civil Conspiracy
• Count XII: Unjust Enrichment

• Count XIII: Breach of Contract

Plaintiff asks the court for, inter alia, injunctive relief, compensatory damages, punitive damages, attorneys’ fees, interest and costs.

May 18, 2015

Indiana Patent Litigation: Klink Trucking Sues Seaboard Asphalt for Declaration of Non-Infringement

By Overhauser Law Offices, LLC

Fort Wayne, Indiana – Indiana patent attorneys for Klink Trucking Inc., K-Tech Specialty Coatings, Inc., BIT MAT Products of Indiana, Inc. and BIT MAT Products of Michigan, Inc. (collectively the “Klink Group”), all of Ashley, Indiana, initiated an intellectual property lawsuit in the Northern District of Indiana alleging that Seaboard Asphalt Products Company (“Seaboard Asphalt”) of Baltimore, Maryland wrongly accused Klink Group of infringing Seaboard Asphalt’s patented “Trackless Tack Coat,” Patent No. 8,764,340, which has been issued by the U.S. Patent Office.

Seaboard Asphalt claims ownership of U.S. Patent No. 8,764,340 for a “Trackless Tack Coat” (“the ‘340 patent”). This patent protects an “asphalt emulsion available for high performing, trackless tack coat applications. The tack coat can be used with hot mix asphalt, warm mix asphalt or cold mix asphalt to provide a tack coat on an existing bituminous or concrete pavement surface. The tack coat can also be used for repair of potholes, utility cuts, and general pavement patching areas.”

On April 28, 2015, Seaboard Asphalt contacted Klink Group. According to a document filed with the Indiana court, Seaboard Asphalt stated that it believed that Klink Group’s “AE-NT Trackless Tack Coat” infringed Seaboard Asphalt’s ‘340 patent and requested that Klink Group “discontinue production and distribution for sale of your AE-NT and all versions of Trackless Tack Coat which violate our Patent” until Klink Group and Seaboard Asphalt had entered into a licensing agreement.

This Indiana litigation arises from that assertion and request by Seaboard Asphalt. Klink Group asserts that it has no liability for infringement of the ‘340 patent because none of the Klink Group entities have infringed any valid and enforceable claim of the ‘340 patent. Plaintiffs have sued under the Declaratory Judgment Act. They ask the Indiana federal court for two declarations with respect to the patent-in-suit:

• Count I – Declaration of Non-Infringement

• Count II – Declaration of Invalidity

Plaintiffs also ask the court to declare this case to be exceptional under 35 U.S.C. § 285 and, pursuant to such a declaration, to award to Plaintiffs its reasonable attorneys’ fees, expenses and costs relating to this patent litigation.

May 15, 2015

Congresswoman Susan Brooks of Indiana Listed as one of D.C.’s Top 50 Women in Tech

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Congresswoman Susan Brooks, who represents the northern third of Indianapolis, was recently named as one of the District of Columbia’s Top 50 Women in Tech. Her lawmaking focus includes legislation that will cause “our laws need to catch up with technology.”

Rep. Brooks, the Republican co-chair of the Congressional High-Tech Women’s Caucus, represents a burgeoning area of startups and entrepreneurship in the technology sector. In her first term, Brooks co-chaired a subcommittee focused on emergency preparedness, response and communications. Since then, she’s introduced the Social Media Working Group Act, which passed the House twice, and is awaiting action in the Senate. If passed, the bill would codify the Homeland Security Department’s Social Media Working Group, which meets regularly to improve the department’s social media techniques. The bill would also bring representatives from academia and the private sector into the working group.

“I think our laws need to catch up with technology and some of the other things that we are also focused on,” Brooks said. “Data breach notification is one of the top issues facing companies that hold personal information about our customers and our employees. We need to bring the government up to speed there, too.”

May 14, 2015

Ninth Circuit Copyright Proceedings: Prenda Law Parties Ask to be Prosecuted

By Overhauser Law Offices, LLC

San Francisco, California – A lawyer for Prenda Law argued before the United States Court of Appeals for the Ninth Circuit and was heard by Judges Harry Pregerson, Richard Tallman and Jacqueline Nguyen. The appeal focused on the rulings of U.S. District Court Judge Otis Wright II.

The intellectual property attorney representing Prenda Law, the now-infamous copyright trolling law firm, squared off with the judges of the Ninth Circuit recently. In a hearing before the appellate court, he contended that the district court had denied due process to the Prenda Law parties. He noted that Judge Wright had threatened incarceration argued and, in doing so, Judge Wright had indirectly initiated a criminal contempt proceeding.

“The entire proceeding was tainted. Mark Lutz, the CEO of Ingenuity 13, was not allowed to testify. As soon as they asserted their Fifth Amendment rights, the judge stopped the proceeding,” Prenda Law’s lawyer said. “He can’t use that against them,” he continued, arguing that Judge Wright had punished the Prenda Law parties for invoking their Fifth Amendment rights against self incrimination.