SUE L. ROBINSON, District Judge.
At Wilmington this At' day of January, 2017, having reviewed the papers filed in connection with defendant's motion for summary judgment;
IT IS ORDERED that the motion (D.I. 68) is granted, for the following reasons:
1.
2.
3. To defeat a motion for summary judgment, the non-moving party must "do more than simply show that there is some metaphysical doubt as to the material facts." Matsushita, 475 U.S. at 586-87; see also Podohnik v. U.S. Postal Service, 409 F.3d 584, 594 (3d Cir. 2005) (stating party opposing summary judgment "must present more than just bare assertions, conclusory allegations or suspicions to show the existence of a genuine issue") (internal quotation marks omitted). Although the "mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment," a factual dispute is genuine where "the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48 (1986). "If the evidence is merely colorable, or is not significantly probative, summary judgment may be granted." Id. at 249-50 (internal citations omitted); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986) (stating entry of summary judgment is mandated "against a party who fails to make a showing sufficient to establish the existence of an element essential to that party's case, and on which that party will bear the burden of proof at trial").
5. Defendant's deponent testified that the chemistry of the steel sheets has not changed since 2009 and the only revisions to the AXN manufacturing specification have been to narrow the acceptable ranges of certain constituents to make the product more consistent. (D.I. 70 at DA17-21, 42, 53-54) The manufacturing specifications show that the AXN product (at issue in Civ. No. 10-050) uses the same "aims" (target amounts) for certain constituents of the chemical composition as the AQN product (renamed in 2012) and the Ultralume product (currently manufactured). (D.I. 70 at DA66-70) The sample of the steel sheets (made according to defendant's AXN manufacturing specification) hot stamped and tested in Civ. No. 10-050 meets the current Ultralume manufacturing specification. (D.I. 70 at DA66-69, 83, 90) The Ultralume brochure describes that it may be hot stamped, which "increases the tensile strength of the steel from approximately 600mPa to 1,400 MPa and higher." The brochure depicts automotive parts. (D.I. 74 at PA29-41)
7. In this regard, the Third Circuit has held that collateral estoppel applies when "(1) the issue sought to be precluded [is] the same as that involved in the prior action; (2) that issue [was] actually litigated; (3) it [was] determined by a final and valid judgment; and (4) the determination [was] essential to the prior judgment." Anderson v. C.I.R., 698 F.3d 160, 164 (3d Cir. 2012) (quoting In re Graham, 973 F.2d 1089, 1097 (3d Cir. 1992)). In determining "whether a patentee has had a full and fair chance to litigate the validity of his patent," the court should consider "whether without fault of his own the patentee was deprived of crucial evidence or witnesses in the first litigation." Blonder-Tongue, 402 U.S. at 333, 91 S.Ct. 1434. Collateral estoppel may also operate to bar relitigation of common issues in actions involving different but related patents. Mycogen Plant Sci., Inc. v. Monsanto Co., 252 F.3d 1306, 1310 (Fed. Cir. 2001). "[P]roof of [non]-infringement by collateral estoppel is only appropriate in limited circumstances, where it is shown that a close identity exists between the relevant features of the accused device and the device previously determined to be [non]infringing." Yingbin-Nature (Guangdong) Wood Indus. Co. v. Intl Trade Comm'n, 535 F.3d 1322, 1333 (Fed. Cir. 2008); see also Brain Life, LLC v. Elekta Inc., 746 F.3d 1045, 1055 (Fed. Cir. 2014) ("[T]he trial court's findings that [defendant's] products . . . were not materially different from the products at issue in the [prior litigation] would bar plaintiff from asserting those claims."); Acumed LLC v. Stryker Corp., 525 F.3d 1319, 1324 (Fed. Cir. 2008) (noting that claim preclusion does not apply with respect to infringement unless the accused device and the device previously held infringing are "essentially the same," meaning that the differences between them are merely "colorable" or "unrelated to the limitations in the claim of the patent") (citations omitted); Del Mar Avionics, Inc. v. Quinton Instrument Co., 836 F.2d 1320, 1324 (Fed. Cir. 1987) (holding that claim preclusion did not apply because a "device not previously before the court, and shown to differ from those structures previously litigated, requires a determination on its own facts").
8.
9. Plaintiffs' arguments regarding the differences between the 2010 product and the post-2010 product ring hollow. Plaintiffs accuse the same product and conduct of infringement at bar as it did in Civ. No. 10-050 — defendant's provision of steel sheets to third parties for hot stamping, which hot-stamped product may have a tensile strength above 1500 MPa. Defendant currently provides steel sheets (which have the same composition as the steel sheets at issue in Civ. No. 10-050) to third parties. The court concludes that the product at issue is the same and cannot — prior to hot stamping — be infringing as the steel sheets have a tensile strength of about 600 MPa.
10. Plaintiffs in Civ. No. 10-050 accused the same conduct (hot stamping of steel sheets) of infringement. The issue was litigated to a verdict of non-infringement under the doctrine of equivalence, in part based on the lack of evidence of the hotstamped steel sheet meeting the limitation requiring a tensile strength of 1500 MPa. Subsequently, plaintiffs did not point to (and the court concluded that there was no) record evidence that the 2010 products have an ultimate tensile strength above 1500 MPa.
11. Plaintiffs argue that defendant might use "some type of theory of divided infringement" to "isolate itself from the actions of the hot stampers or the automakers," and request discovery as to whether defendant directs or controls the performance of the hot stampers or is in a joint enterprise. (D.I. 73 at 13-14) Plaintiffs' request for discovery is unnecessary given that divided infringement applies to method claims in particular circumstances, not to the product by process claims at bar. Akamai Techs., Inc. v. Limelight Networks, Inc., 797 F.3d 1020, 1022 (Fed. Cir. 2015) ("We will hold an entity responsible for others' performance of method steps in two sets of circumstances: (1) where that entity directs or controls others' performance, and (2) where the actors form a joint enterprise.").
12. Without direct infringement, there can be no indirect infringement. See Limelight Networks, Inc. v. Akamai Techs., Inc., 134 S.Ct. 2111, 2115 (2014); Fujitsu Ltd. v. Netgear Inc., 620 F.3d 1321, 1326 (Fed. Cir. 2010). Nevertheless, the court makes the following observations regarding indirect infringement. Plaintiffs argue that, after further discovery, they may allege induced and/or contributory infringement based upon defendant's "actions in the design and preparation of the post-2010 stamped product, and the nature of [defendant's] commercial relationships with the hot stampers and the automakers." (D.I. 73 at 14) Plaintiffs litigated both induced and contributory infringement in Civ. No. 10-050, arguing that defendant designed the steel sheets to meet the automaker specifications and should be liable based on encouraging its customers to hot stamp the steel sheets. (D.I. 70 at DA102-04, 126-27, 139-40)
13. As to contributory infringement, plaintiffs would be required to establish, inter alia, that the steel sheets have no substantial non-infringing uses. Fujitsu, 620 F.3d at 1326. Plaintiffs allege that discovery is needed to determine whether the post-2010 products meet the tensile strength limitation after hot stamping by certain commercial hot stampers. As was the case in Civ. No. 10-050, some of the automaker's specifications use hot-stamped steel sheets with tensile strengths lower than 1500 MPa. Plaintiffs' argument that there are no "substantial non-infringing uses" falls short.
14. The litigation in Civ. No. 10-050 involved the same parties, the same products, the same conduct, and the same issues. Defendant's steel sheets were adjudged to be non-infringing with respect to the asserted claims in Civ. No. 10-050. Defendant, therefore, should be "free to continue engaging in the accused commercial activity as a non-infringer." Brain Life, LLC v. Elekta Inc., 746 F.3d 1045, 1056, 1058 (2014) ("allowing an adjudged non-infringer to avoid repeated harassment for continuing its business as usual post-final judgment in a patent action where circumstances justify that result."). Although defendant has ramped up its production and updated its brochure, it is "continuing its business as usual post-final judgment." Id. at 1056.
15.