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Sim Kar Lighting Fixture Co. v. Genlyte, Inc.

Citations: 906 F. Supp. 967; 1995 U.S. Dist. LEXIS 16883; 1995 WL 669107Docket: Civ. 91-4424 (WHW)

Court: District Court, D. New Jersey; November 8, 1995; Federal District Court

Narrative Opinion Summary

The case involves a patent dispute where Sim Kar Lighting Fixture Co. filed a lawsuit against Genlyte for patent infringement regarding a fluorescent fixture design. During the proceedings, Richard Moushegian, a Sim Kar employee, claimed co-inventorship of the patent, leading to a counterclaim against Sim Kar for declaratory judgment of inventorship and ownership, unjust enrichment, wrongful termination, and conspiracy. Sim Kar sought dismissal of these claims, arguing lack of evidence and laches, while Genlyte attempted to disqualify Sim Kar's counsel. The court denied Sim Kar’s motion for summary judgment on inventorship and ownership due to corroborating evidence and insufficient grounds for a laches defense. It upheld Moushegian's unjust enrichment claim post-1991 and wrongful termination claim, emphasizing public policy exceptions. However, it dismissed the civil conspiracy and judicial estoppel claims due to lack of malice and benefit from contradictory positions. The court also denied Genlyte's motion to disqualify Sim Kar's counsel, finding no necessary witness issue. The ruling illustrates the complexity of patent law, particularly regarding inventorship and the implications of employment relationships in intellectual property disputes.

Legal Issues Addressed

Civil Conspiracy Requirements under Pennsylvania Law

Application: Moushegian's civil conspiracy claim is dismissed due to lack of evidence showing that Sim Kar and its attorneys acted with malice specifically intended to harm him.

Reasoning: Consequently, Moushegian failed to allege that Sim Kar and the Schwab firm intended to harm him exclusively, leading to the granting of Sim Kar's motion to dismiss his civil conspiracy claim.

Laches Defense in Inventorship Claims

Application: Sim Kar's assertion that Moushegian's claim is time-barred by laches was countered by the presumption against forfeiture under 35 U.S.C. 256, as Moushegian claimed ignorance of the patent's issuance until the lawsuit commenced.

Reasoning: These factors, particularly the presumption against forfeitures under 35 U.S.C. 256, are sufficient to counter a laches defense.

Patent Inventorship under 35 U.S.C. § 256

Application: Moushegian seeks a declaration of inventorship, arguing he is either the sole or co-inventor of the patent. The court finds Moushegian's claim viable due to corroborating evidence provided in a Pretrial Order, despite the general skepticism towards oral testimony without documentation.

Reasoning: Moushegian claims to be the inventor of the '132 patent, but his testimony alone is insufficient without additional evidence, as he has not provided any supporting documentation like notes or drawings. However, Sim Kar's statement in the Pretrial Order identifying Moushegian as an inventor serves as sufficient corroboration to deny Sim Kar's motion for summary judgment on this claim.

Unjust Enrichment Claims

Application: The court recognizes a valid unjust enrichment claim for profits after 1991 due to Moushegian's allegations of Sim Kar pressuring him to assign his rights, despite dismissing claims for profits before 1991.

Reasoning: The court agrees that there is no basis for unjust enrichment claims before 1991; however, it recognizes a valid claim for unjust enrichment based on Sim Kar's actions after that time, particularly allegations of pressuring Moushegian to assign his rights.

Wrongful Termination under Pennsylvania Law

Application: Moushegian's wrongful termination claim is upheld, as it alleges he was terminated for refusing to commit perjury, which may fall under public policy exceptions to at-will employment.

Reasoning: Thus, Moushegian's allegation sufficiently states a claim for relief, leading to the denial of Sim Kar's motion to dismiss the wrongful termination claim.