Judge: Patent case to be heard in N.D.
in-forum.com
Judge: Patent case to be heard in N.D.
By Steven P. Wagner, The Forum
Published Saturday, January 06, 2007
A North Dakota jury could decide a patent dispute between Alien Technology Corp. and one of its competitors after a federal judge rejected a request to dismiss a lawsuit.
In a 15-page ruling, U.S. Senior District Judge Rodney Webb said the lawsuit should move forward in Fargo because Intermec IP Corp. threatened a patent infringement suit against Alien, which operates a manufacturing plant in the North Dakota State University Research and Technology Park.
Both companies manufacture radio frequency identification, or RFID, products.
In June, California-based Alien filed a lawsuit to secure a judgment finding its products don’t infringe on Intermec’s patents. Alien sought the judgment after an Intermec official threatened a patent lawsuit.
After Alien filed its lawsuit, Intermec filed one of its own in Delaware and asked Webb to dismiss the Fargo case.
Last month, attorneys for both companies argued whether Webb has jurisdiction to decide the case and Intermec’s business volume in North Dakota.
In his order, Webb ruled Alien was justified in filing its lawsuit in anticipation of legal action by Intermec and two closely related businesses.
In last month’s hearing, Intermec attorneys argued three Intermec businesses were separate and produced little or no business in the state.
However, Webb said the three Intermec companies operate as one entity and one of the companies – Intermec Technologies Corp., or ITC – has been registered to do business in the state, pays income taxes on products sold to North Dakota businesses and partners with Fargo’s Microsoft Business Solutions for strategic reasons.
“ITC has sold a small amount of product in North Dakota consistently and systematically since at least 2001,” Webb wrote.
Linda Prosser, Alien’s vice president for corporate marketing, said Webb’s decision “validated our position” and the company is pleased the matter will be decided in North Dakota.
Sarah Herman, a Fargo attorney for Alien, declined to comment.
Ron McLean, a Fargo attorney for Intermec, referred questions to the company’s lawyers in Chicago. They did not return a message.
Alien officials previously said they hoped their lawsuit would quickly resolve the patent issue and prove no patent infringement as the company considers a public stock offering.
Alien received an incentive package – including low-interest loans, government training programs and private funds – worth more than $36 million to open a plant in Fargo. |
