JOHN E. STEELE, District Judge.
This matter comes before the Court on Defendants' Motion for Rule 11 Sanctions (Doc. #64) filed on June 22, 2016. Plaintiff filed a Response in Opposition (Doc. #70) on July 11, 2016 and Defendants filed a Reply (Doc. #79) on August 17, 2016. For the reasons set forth below, Defendants' Motion is denied.
This case involves a patent dispute between two business partners-turned-competitors in the LED lighting industry. On September 15, 2015, Plaintiff Global Tech LED, LLC (Global Tech) filed a one-count Complaint (Doc. #1) against Defendants HiLumz International Corp., HiLumz, LLC, and HiLumz USA, LLC (collectively, Defendants) alleging direct and indirect patent infringement under 35 U.S.C. § 271 and seeking injunctive relief and money damages. Specifically, Defendants are accused of "making, using selling, or offering for sale" one or more lighting products that infringe United States Patent No. 9.091,424 (the `424 Patent), either literally or under the doctrine of equivalents.
On June 22, 2016, Defendants filed a Second Amended Counterclaim and Third Party Complaint (the Second Amended Counterclaim Complaint) (Doc. #63), which alleges claims of false advertising under Section 1125(a) of the Lanham Act, 15 U.S.C. § 1051
That same day, Defendants also filed the instant Motion, which contends that Global Tech's infringement cause of action is frivolous and asks the Court to impose sanctions against Global Tech and The Concept Law Group, P.A. (collectively referred to as Plaintiffs, for purposes of this Motion), pursuant to Federal Rule of Civil Procedure 11. Plaintiffs oppose the Motion substantively and argue that Defendants are using Rule 11 to try to accelerate the claim construction process. Plaintiffs also request an award of the costs and fees they accrued in defending against the Motion.
Where an attorney or unrepresented party presents the Court with a signed pleading, written motion, or other paper, the individual "certifies that to the best of the person's knowledge, information, and belief, formed after an inquiry reasonable under the circumstances": i) the document "is not being presented for any improper purpose," ii) "the claims, defenses, and other legal contentions are warranted" under the law, and iii) the factual assertions therein have, or are likely to have, "evidentiary support." Fed. R. Civ. P. 11(b). In other words, the party or attorney must do his homework before presenting a document to the court. Where another party believes Rule 11 has been violated, it must afford the offending party 21 days in which to correct the problem, after which time it may move the court to impose sanctions. Fed. R. Civ. P. 11(c)(1).
In assessing whether Rule 11 has been violated, a court must initially "determine[] whether the party's claims are objectively frivolous — in view of the facts or law."
Only if the court determines that the claims are objectively frivolous does it next evaluate "whether the individual who signed the pleadings should have been aware that they were frivolous; that is, whether he would have been aware had he made a reasonable inquiry."
The Complaint alleges generally that the "Accused Products" infringe the `424 Patent literally and under the doctrine of equivalents; however, Plaintiffs' subsequent filings clarify that the literal patent infringement claim is limited to a prior version of Defendants' retrofit LED product, which Defendants refer to as the "First Generation Retrofit Kit." According to Defendants, this claim is frivolous because the First Generation Retrofit Kit "has not been manufactured, sold or offered for sale since June 28, 2014, over a year before the [`424] patent issued."
The Court cannot agree. Even assuming the veracity of Defendants' contention that the First Generation Retrofit Kit was last sold in June 2014, Plaintiffs have presented evidence, in the form of a website screenshot (Doc. #70-4), that at least one of Defendants' product resellers, Shine Retrofits, was offering to sell the infringing First Generation Retrofit Kit at least as late as September 25, 2015
Defendants assert that Plaintiffs' claim that the Accused Products violate the `424 Patent under the doctrine of equivalents is similarly baseless, since Defendants' Second Generation Retrofit Kit uses a "Flex-Mount" hose-clamp base, which has no screw threads, and which does not draw electrical power from the receiving socket. Defendants also contend that Global Tech's patent prosecution history — specifically, the "narrowing" of the `424 Patent's claims — bars Plaintiffs from invoking the doctrine of equivalents. Plaintiffs, in response, claim that Defendants are "attempt[ing] to improperly use Rule 11 to effectively force a ruling on the construction of the term `screw connector' and use that ruling to test the sufficiency of its [sic] non-infringement defense."
Motives aside, the Court finds the request for sanctions premature. "[F]ee litigation is not the time to address the substantive merits in the first instance, especially when the question of infringement appears to turn on the construction of [disputed] claim term[s]. . . ."
The parties' upcoming "
Accordingly, it is hereby
1. Defendants' Motion for Rule 11 Sanctions (Doc. #64) is
2. Plaintiffs' request for an award of costs is