Fact issues preclude summary judgment on equitable defenses

McKesson Information Solutions LLC v. The Trizetto Group, Inc., No. 04-1258-SLR, Apr. 5, 2006.

Robinson, J.  Cross motions for summary judgment of laches are denied due to genuine issues of material fact.  Plaintiff’s motion for summary judgment on defendant’s equitable defense is denied.

The patent describes the use of a computer system and method for analyzing medical service codes submitted on a medical claim to detect and correct errors.

Defendant claims plaintiff was aware of the accused activities since 1989, and the laches period began when the patent issued in 1993.  Plaintiff waited nearly 11 years to file suit.  Issues of fact exist regarding when plaintiff knew or should have known of alleged infringement, whether delay is reasonably excusable, and whether economic prejudice exists.

A genuine issue of material fact exists with respect to equitable estoppel, waiver, and acquiescence defenses, namely, whether the patentee’s silence was misleading, whether defendant relied on such conduct and whether material prejudice resulted.

A copy of the full opinion is available here.
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