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01/10/2007
McAndrews, Held & Malloy Secures Favorable Settlement for Sioux Steel Company
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CHICAGO, IL – Jan. 10, 2007 – McAndrews, Held & Malloy announced today it has secured a favorable settlement for its client Sioux Steel Company, a Sioux Falls, S.D.-based leading manufacturer of steel grain bins, buildings and other livestock equipment. The case involved two patent infringement lawsuits brought by Plymouth Industries LLC concerning U.S. Patent Nos. 6,672,247; 6,789,505 and 6,951,189 for an insert for use in combination with a conventional round or cylindrical bale feeder to prevent the waste of hay fed to livestock. The suits were filed in the U.S. District Court for the District of Nebraska.
Plymouth, Neb.-based livestock equipment manufacturer Plymouth filed a complaint in May 2006 alleging that Sioux Steel was infringing Plymouth’s patents ‘247 and ‘505 by “making, using, selling and offer[ing] for sale [hay feeder] inserts covered by the [the Plymouth Patents].” Sioux Steel filed an answer and counterclaim denying any infringement and seeking a declaration of non-infringement, invalidity and unenforceability as to each and every patent claim of the patents-in-suit.
Shortly thereafter, the ‘189 patent issued, and Plymouth filed a second action against Sioux Steel in October 2005, alleging the same claims and seeking the same relief for infringement of that patent. The ‘189 patent application was filed as a continuation of the ‘505 patent application, which was a continuation of the ‘247 patent application. The Court consolidated these cases in an order dated Dec. 1, 2005.
Sioux Steel answered the ‘189 infringement claim, asserting several affirmative defenses and counterclaims. Included was a counterclaim that the ‘189 patent was unenforceable due to inequitable conduct in prosecuting the ‘189 patent application before the U.S. Patent and Trademark Office (“the USPTO.”) This counterclaim was based in part on the failure of Plymouth’s attorney to provide the USPTO with information concerning prior art that Sioux Steel had identified to Plymouth during the early stages of the litigation and while the ‘189 patent application was still pending before the USPTO.
In subsequently ruling on Sioux Steel’s motion for summary judgment that the ‘189 patent was unenforceable, the Court found that the attorney who prosecuted the Plymouth patents, who also was Plymouth’s trial counsel, had failed to disclose material information to the USPTO during the prosecution of the ‘189 patent application. Although the Court said it was unable to conclude on summary judgment that the conduct of Plymouth’s attorney had been intentional, it did schedule a hearing on the issue of intent in advance of the trial.
The cases were settled shortly after the Court granted in part Sioux Steel’s motion for summary judgment of unenforceability for inequitable conduct.
“This was an important victory resulting in a settlement on terms favorable to Sioux Steel,” said McAndrews, Held & Malloy Shareholder Kirk A. Vander Leest.
McAndrews, Held & Malloy attorneys Vander Leest, Robert A. Surrette and Patrick V. Bradley represented Sioux Steel.
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About McAndrews, Held & Malloy
Founded in 1988, McAndrews, Held & Malloy is one of the nation’s preeminent legal resources on intellectual property, antitrust and technology matters, serving institutions ranging from major multinationals and start-ups to world-class colleges and universities. The firm’s technically trained attorneys have built an unparalleled record of litigation successes in jury trials, bench trials and ADR proceedings. In addition, McAndrews, Held & Malloy offers its clients services in the following areas: patent and trademark procurement and portfolio management, patent interferences, trademark oppositions and cancellations, international practice, intellectual property/technology opinions and investigations, due diligence and M&A support, technology licensing and joint ventures, and technology transfers and donations. Additional information can be found at http://www.mcandrews-ip.com.
CONTACT: Randy Labuzinski / David Schulte Healy & Schulte 312/440-3900 rlabuzinski@healyandschulte.com
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