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Travel Sentry, Inc. v. Tropp

Citations: 192 F. Supp. 3d 332; 2016 WL 3640645Docket: 06-cv-6415 (ENV) (RLM); 08-cv-4446 (ENV) (RLM)

Court: District Court, E.D. New York; June 29, 2016; Federal District Court

Narrative Opinion Summary

In this case, Travel Sentry and other defendants sought summary judgment in a patent dispute involving allegations of noninfringement, invalidity, and defenses under 28 U.S.C. § 1498 against Tropp's claims. Tropp's patents related to dual-access locks for luggage screening, and the litigation stemmed from a 2006 declaratory judgment action initiated by Travel Sentry. The court previously found no direct infringement, as the steps of the patented method were not executed by a single entity, precluding indirect infringement. Tropp's subsequent appeal resulted in a partial reversal based on new standards from Akamai II, but the Supreme Court later reaffirmed the necessity of direct infringement for indirect claims in Akamai III. The Federal Circuit's en banc ruling in Akamai V clarified liability for entities controlling method steps' performance, but the court found no such control in Travel Sentry's relationship with the TSA. Travel Sentry's non-binding guidance to the TSA, without contractual obligations, did not meet the criteria for joint enterprise or vicarious liability as outlined in Muniauction and Akamai V. Consequently, the court granted summary judgment in favor of Travel Sentry and other defendants, denying Tropp's cross-motions for infringement and rendering motions to strike moot due to the lack of genuine disputes or joint enterprise liability.

Legal Issues Addressed

Control or Direction over Method Steps

Application: Liability for direct infringement requires an entity to not only perform method steps but also control or direct the performance of steps done by others, which was not the case with Travel Sentry.

Reasoning: Multiple parties can be jointly liable for direct infringement of a claimed method if one party exercises 'control or direction' over the entire process, attributing every step to that party, referred to as the 'mastermind.'

Indirect Infringement under Akamai V

Application: The Federal Circuit's en banc decision in Akamai V established that an entity may be liable for indirect infringement if it conditions participation in an activity upon the performance of patented method steps and dictates their manner or timing.

Reasoning: Akamai V introduced a third condition: if an alleged infringer conditions participation in an activity or receipt of a benefit upon the performance of a patented method step and dictates the manner or timing of that performance.

Joint Enterprise and Vicarious Liability

Application: Tropp's assertion of a joint enterprise between Travel Sentry and the TSA was rejected, as there was no agreement, common purpose, shared financial interest, or equal control.

Reasoning: Tropp's assertion of a joint enterprise between Travel Sentry and the TSA is fundamentally flawed, lacking evidence for the essential elements required to establish such a relationship: an agreement, a common purpose, shared financial interest, and equal control.

Summary Judgment on Noninfringement

Application: The court grants summary judgment to Travel Sentry and the defendants, concluding no direct infringement occurred since no single actor executed all steps of Tropp's patents.

Reasoning: The court grants Travel Sentry's motion for summary judgment on noninfringement in the first case and the defendants' motions in the second case.