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Ultra-Precision Manufacturing v. Ford Motor Co.

Citations: 411 F.3d 1369; 75 U.S.P.Q. 2d (BNA) 1065; 2005 U.S. App. LEXIS 11237Docket: 18-1441

Court: Court of Appeals for the Federal Circuit; June 15, 2005; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves an appeal by Ultra-Precision Manufacturing, Ltd. against Ford Motor Company, challenging a district court's decision that Ross Herron and Gary Beard were not joint inventors of U.S. Patent No. 5,236,312, and that Ultra-Precision's unjust enrichment claim was preempted by federal patent law. The appellate court affirmed the lower court's decisions, finding no abuse of discretion in allowing Ford to raise a preemption defense and determining that the district court's findings on inventorship were not clearly erroneous. The case arose from efforts in the 1980s to address noise and vibration issues in Ford's air conditioner compressor, leading to collaborative engineering efforts between Ford and Ultra-Precision. Ultra-Precision filed suit in 2001, alleging unjust enrichment, correction of inventorship, and other claims, but the district court held that the unjust enrichment claim was preempted, given the federal patent law's dominance in regulating patent-like protections for disclosed ideas. The court also ruled that Herron and Beard did not contribute to the inventive concepts of the '312 patent, and therefore could not be considered joint inventors. The Federal Circuit reviewed the waiver of defenses and preemption issues de novo, ultimately supporting the district court's conclusions and upholding its rulings.

Legal Issues Addressed

Federal Patent Law Preemption

Application: The court found that Ultra-Precision's unjust enrichment claim was preempted by federal patent law because it sought patent-like protection for publicly disclosed ideas.

Reasoning: The district court clarified that Ultra-Precision's claim regarding Ford's unauthorized use of a publicly disclosed concept was preempted under Bonito Boats, Inc. v. Thunder Craft Boats, Inc.

Joint Inventorship under U.S. Patent Law

Application: The court determined that Herron and Beard were not joint inventors of the ’312 patent since they failed to demonstrate conception of the invention's specific features.

Reasoning: The district court determined that Herron and Beard are not joint inventors of the ’312 patent, specifically outlining the patent claims, including an arcuately extending discharge transfer cavity and the equal length of transfer cavities to address axial offset.

Unjust Enrichment under Michigan Law

Application: The district court initially recognized Ultra-Precision's unjust enrichment claim but found it preempted by federal patent law as it involved publicly disclosed ideas.

Reasoning: The district court recognized Ultra-Precision's unjust enrichment claim against Ford, which relates to Ford's use and sale of vehicles incorporating a solution that Ultra-Precision claims to have invented but did not patent.

Waiver of Affirmative Defense

Application: Ford's preemption defense was not waived as it was raised before the pretrial order, allowing Ultra-Precision an opportunity to respond.

Reasoning: The court ruled that Ford had not waived the defense, as it was raised before the pretrial order, and indicated that the defense became relevant after Ultra-Precision modified its inventorship claim.