DCT

0:19-cv-62466

OneDirect Health Network Inc v. Ermillc

Key Events

Amended Complaint

I. Executive Summary and Procedural Information

Parties & Counsel:
- Plaintiff: OneDirect Health Network, Inc. (Georgia)
- Defendant: Ermi LLC (Delaware)
- Plaintiff’s Counsel: Cochran & Edwards, LLC; Insight, PLC
Case Identification: 1:19-cv-01527, N.D. Ga., 06/17/2019
Venue Allegations: Venue is alleged to be proper as the Defendant, Ermi LLC, resides in and conducts substantial business within the Northern District of Georgia.
Core Dispute: Plaintiff OneDirect seeks a declaratory judgment that its "Orbit for Shoulder" medical device does not infringe U.S. Patent No. 7,547,289 and that the patent's asserted claims are invalid and unenforceable.
Technical Context: The technology concerns mechanical devices used for physical therapy to improve a patient's shoulder range of motion following injury or surgery.
Key Procedural History: This declaratory judgment action was filed by OneDirect after Defendant ERMI initiated patent infringement litigation against OneDirect's distributors in six different federal districts. Shortly after OneDirect filed this "first-filed" case, ERMI amended one of its pending distributor lawsuits to name OneDirect as a defendant. The complaint notes that ERMI has since conceded a lack of basis for willful and indirect infringement claims in two of the distributor cases.

Case Timeline

Date	Event
2001-12-13	’289 Patent Priority Date
2009-06-16	’289 Patent Issue Date
2019-04-01	ERMI files infringement suits against OneDirect distributors
2019-04-04	OneDirect initiates this declaratory judgment action
2019-04-11	ERMI amends a distributor suit to add OneDirect as a defendant
2019-06-17	OneDirect files Second Amended Complaint

II. Technology and Patent(s)-in-Suit Analysis

Patent Identification: U.S. Patent No. 7,547,289, "Shoulder Extension Control Device," issued June 16, 2009.
The Invention Explained:
- Problem Addressed: The patent addresses the loss of shoulder motion that occurs after injury or surgery, which is often caused by scar tissue formation and the contraction of ligaments and muscles, a condition that can require therapy to resolve (’289 Patent, col. 1:38-48).
- The Patented Solution: The invention is a mechanical therapy apparatus that allows a patient to perform controlled stretching exercises without the direct, hands-on manipulation of a therapist. The device includes a frame, an arm carriage to hold and manipulate the user's arm, and a user-operated power unit, such as a manual hydraulic pump, to control the movement (’289 Patent, col. 2:18-37; Fig. 3). The assembly is designed to be switchable to allow treatment for either the left or right shoulder.
- Technical Importance: The invention provides a method for patients to self-administer range-of-motion therapy, giving them direct control over the stretching process and potentially reducing the need for constant therapist supervision (’289 Patent, col. 2:1-5).
Key Claims at a Glance:
- The complaint identifies independent claims 1 and 22 as being asserted by ERMI in related litigation (Compl. ¶19).
- Independent Claim 1 (Apparatus) recites an apparatus for manipulating a shoulder joint with the following essential elements:
  - A "frame" with two spaced apart mounting locations.
  - An "arm carriage" that mounts to one of the locations to manipulate the shoulder.
  - A "power unit", controlled by the user, mounted to the other location.
  - A "linkage" to transfer power from the power unit to the arm carriage.
  - A configuration that allows the "arm carriage" and "power unit" to be switched between the mounting locations to treat either the left or right arm.
- Independent Claim 22 (Method) recites a method of manipulating a shoulder, comprising the steps of:
  - Providing an apparatus with a frame, a seat, an upper arm assembly, and a forearm assembly.
  - Securing a user's forearm to the forearm assembly.
  - Selectively allowing or discouraging pivotable movement between the assemblies to perform abduction/adduction of the shoulder.
  - Selectively allowing or discouraging pivotable movement between the assemblies to perform external rotation of the shoulder.

III. The Accused Instrumentality

Product Identification: The "Orbit for Shoulder" device, manufactured and/or sold by Plaintiff OneDirect Health Network, Inc. (Compl. ¶9).
Functionality and Market Context: The complaint describes the Accused Device as having a "patient-centric" design that acts as a "planetary rotational system" where the patient is the center of motion (Compl. ¶31). This photograph of the Accused Device illustrates its support structure, which emanates from a single post on the chair's spine (Compl. p. 9). The device allegedly utilizes a "floating" or "suspended" swivel mechanism rather than a fixed, rectangular frame (Compl. ¶32). Functionally, it is alleged to provide 3-D, multi-plane range of motion therapy (Compl. ¶34). It is operated by an automated "Control Element" with a touch control system, not a manual pump (Compl. ¶39).

IV. Analysis of Infringement Allegations

The complaint seeks a declaratory judgment of non-infringement. The plaintiff's key arguments are summarized below.

’289 Patent Infringement Allegations

| Claim Element (from Independent Claim 1) | Alleged Non-Infringing Functionality | Complaint Citation | Patent Citation |
|:------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |:----------------------|:-------------------|
| a frame including spaced apart first and second mounting locations | The Accused Device allegedly lacks the claimed "frame", instead using a "floating" or "suspended" swivel support structure that emanates from the spine of the chair and does not have two separate mounting locations. The complaint argues the patent specification describes the frame as a "substantially rectangular structure." | ¶¶27-28, 31-32 | col. 8:1-4 |
| a power unit configured to provide power upon control by said user... configured to be mounted to the other of said first and second mounting locations of said frame | The Accused Device allegedly uses a fully automated electronic "Control Element," not a manually operated hydraulic pump as described in the patent. This electronic controller is installed on the same side of the patient receiving treatment, not the "other side" as required by the claim. This photograph shows the electronic controller on the Accused Device (Compl. p. 13). | ¶¶35-36, 39-40 | col. 6:51-55 |

Identified Points of Contention

Scope Questions: The central dispute appears to be one of claim scope. A primary question is whether the term "frame", described in the patent's embodiment as a rectangular structure with two mounting points, can be interpreted to read on the accused device's single-post, swiveling support arm (Compl. ¶¶28, 32). A similar question arises for the term "power unit", as the complaint argues the accused electronic controller is distinct from the patent's manually operated hydraulic pump mounted on the opposite side of the patient (Compl. ¶¶36, 39).
Technical Questions: For claim 22, a key technical question is whether the accused device's "polycentric gear" system (Compl. ¶44) is structurally and functionally equivalent to the claimed "pivotably mounted" assemblies, which the complaint argues are defined in the patent by a "pivot fixing pin" mechanism enabling rotation around a single pivot axis (Compl. ¶43). This figure from the patent shows the "pivot fixing pin" (89) that the plaintiff alleges is absent from its device (Compl. p. 15).
Legal Questions: The complaint raises a question of direct infringement for method claim 22 by asserting that OneDirect "does not perform any of the claimed method steps" because it does not treat patients, which may shift the focus to whether its customers or partners directly infringe (Compl. ¶46).

V. Key Claim Terms for Construction

The Term: "frame"
Context and Importance: The existence of a "frame" is a threshold requirement of independent claim 1. OneDirect's primary non-infringement argument is that its device lacks this element entirely (Compl. ¶27). The construction of this term may be dispositive for claim 1.
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The claim language itself does not specify the geometry, only requiring "a frame including spaced apart first and second mounting locations."
- Evidence for a Narrower Interpretation: The complaint points to the specification, which it alleges describes the frame as a "substantially rectangular... framework" composed of specific horizontal and vertical members (’289 Patent, col. 8:1-4). The patent's figures, such as Figure 1, consistently depict this rectangular structure (Compl. p. 7).
The Term: "power unit"
Context and Importance: This term is also central to claim 1. OneDirect argues its automated electronic controller is fundamentally different from the "power unit" disclosed in the patent (Compl. ¶35).
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The term itself is generic. However, the claim adds the functional limitations that it is "operated manually" and "configured to be mounted to the other" side.
- Evidence for a Narrower Interpretation: The complaint argues the specification defines the power unit as a "manually operated hydraulic pump" that converts "mechanical energy from the user to hydraulic energy" via a pump handle (’289 Patent, col. 3:9-12; col. 6:51-55). The complaint notes this manual operation was intended to distinguish the invention from prior art electronic controllers (Compl. ¶36).

VI. Other Allegations

Indirect Infringement: The complaint seeks a declaratory judgment that OneDirect has not contributorily infringed or induced infringement of the ’289 Patent (Compl. ¶48). It notes that ERMI has dropped indirect infringement allegations in two related cases but maintains them in others (Compl. ¶25).
Willful Infringement: The complaint seeks a judgment of no willful infringement. It alleges that ERMI has conceded there is no basis for willfulness claims in two of the related distributor cases (Compl. ¶18, ¶25).

VII. Analyst’s Conclusion: Key Questions for the Case

This declaratory judgment action presents several fundamental questions for the court, focusing on claim construction, technical operation, and patent validity.

A core issue will be one of definitional scope: can the claim terms "frame" and "power unit", which the patent illustrates with specific embodiments (a rectangular structure and a manual hydraulic pump), be construed broadly enough to encompass the accused device's fundamentally different architecture (a single-post swiveling support arm and an automated electronic controller)?
A key evidentiary question will be one of technical mismatch: does the accused device's "polycentric gear" system, which allegedly enables multi-plane motion, operate in a substantially different way from the patent's "pin-pivot" mechanism, which the complaint characterizes as enabling motion around a single axis at a time?
Beyond infringement, the case raises significant validity and enforceability challenges. Central questions will be whether the asserted claims are invalid as anticipated or obvious in light of prior art, indefinite under § 112 for allegedly confusing apparatus and method limitations, or unenforceable due to inequitable conduct based on allegedly misleading arguments made to the PTO during prosecution to distinguish prior art.