DCT
2:18-cv-02498
Sudenga Industries Inc v. Global Industries Inc
Key Events
Amended Complaint
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Sudenga Industries, Incorporated (Iowa)
- Defendant: Global Industries, Inc. (Nebraska)
- Plaintiff’s Counsel: The Dodig Law Firm, LLC; Westman, Champlin & Koehler, P.A.
- Case Identification: 2:18-cv-02498, D. Kan., 09/28/2018
- Venue Allegations: Plaintiff alleges venue is proper because Defendant owns and operates a regular and established place of business in the District of Kansas and has committed acts of infringement, such as sales or offers for sale, within the district.
- Core Dispute: Plaintiff alleges that Defendant’s commercial bin sweep systems infringe four patents related to a collector ring assembly that enables the sweep’s drive motor to be positioned above the grain bin floor.
- Technical Context: The technology concerns large-scale grain bin sweep augers, which are mechanical systems used in the agricultural industry to clear residual grain from the bottom of storage silos after gravity-flow has ceased.
- Key Procedural History: The complaint details extensive pre-suit communications, initiated by Plaintiff in January 2016, regarding alleged infringement and the possibility of a license. These communications, which continued through early 2018, may be used to support allegations of willful infringement.
Case Timeline
| Date | Event |
|---|---|
| 2010-02-19 | Priority Date for ’823, ’000, ’001, and ’338 Patents |
| 2013-12-31 | U.S. Patent No. 8,616,823 Issues |
| 2014-08-15 | Effective Date of Accused Product Manual |
| 2015-12-08 | U.S. Patent No. 9,206,000 Issues |
| 2015-12-08 | U.S. Patent No. 9,206,001 Issues |
| 2016-01-26 | Plaintiff contacts Defendant’s division regarding licensing |
| 2018-07-10 | U.S. Patent No. 10,017,338 Issues |
| 2018-09-28 | Second Amended Complaint Filed |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 8,616,823 - "Bin Sweep Collector Ring Assembly"
- Patent Identification: U.S. Patent No. 8616823, "Bin Sweep Collector Ring Assembly," issued December 31, 2013.
The Invention Explained
- Problem Addressed: In conventional bin sweep systems, the electrical slip ring (or collector ring) that transfers power to the rotating auger motor is typically housed in a central sump below the bin floor. This makes installation and maintenance difficult and requires the bin floor to be elevated, which reduces the bin's effective storage capacity (’823 Patent, col. 1:55-2:4).
- The Patented Solution: The invention provides an apparatus where the collector ring assembly is mounted on a "pivot stand" that is attached to and extends above the top surface of the floor grate (’823 Patent, col. 4:24-28). This "above-floor" design makes the components easily accessible for maintenance without requiring a deep sump, thereby preserving storage capacity and facilitating what the complaint terms "zero entry" operation (Compl. ¶14; ’823 Patent, col. 5:31-34).
- Technical Importance: This design improves the safety and efficiency of grain bin operations by reducing or eliminating the need for personnel to enter the hazardous environment of a grain silo for maintenance or operation (Compl. ¶14).
Key Claims at a Glance
- The complaint asserts at least independent claim 1 (Compl. ¶33).
- Essential elements of claim 1 include:
- An apparatus for attachment to a floor grate.
- A pivot stand attached to a top surface of the floor grate, defining a vertical pivot axis.
- A collector ring with a stationary portion and a rotatable portion, with the stationary portion attached to the pivot stand above the floor grate.
- A housing surrounding the collector ring.
- The housing and the rotatable portion of the collector ring rotate together about the pivot axis.
- The housing is attached to a drive unit on one side and an auger section on the other.
- The drive unit contains a motor for driving an auger in the auger section.
- The complaint does not explicitly reserve the right to assert dependent claims.
U.S. Patent No. 9,206,000 - "Bin Sweep Collector Ring Assembly"
- Patent Identification: U.S. Patent No. 9206000, "Bin Sweep Collector Ring Assembly," issued December 8, 2015.
The Invention Explained
- Problem Addressed: The patent, which is a continuation of the application leading to the '823 Patent, addresses the same problems of accessibility, maintenance, and lost storage capacity associated with below-floor collector ring assemblies (’000 Patent, col. 1:55-2:4).
- The Patented Solution: This patent claims a specific configuration of an above-floor system, introducing the term "pivot pipe" for the central pivot structure. The claims focus on the combination of the collector ring, an arc-moving "sweep mechanism" (e.g., an auger), and a drive unit, where the drive unit and the rotatable portion of the collector ring rotate together about the pivot axis (’000 Patent, col. 6:42-53). A key element is a "slip ring support plate" supported on the pivot pipe, which in turn supports the stationary part of the collector ring (’000 Patent, col. 6:34-37).
- Technical Importance: This configuration provides a robust and modular above-floor pivot and power-transfer system that can be retrofitted to existing bin sweeps (Compl. ¶13; ’000 Patent, col. 5:44-50).
Key Claims at a Glance
- The complaint asserts at least independent claim 1 (Compl. ¶46).
- Essential elements of claim 1 include:
- An apparatus for use above a floor grate.
- A pivot pipe extending above the floor grate, defining a vertical pivot axis.
- A collector ring with a stationary and a rotatable portion, where the stationary portion is attached to the pivot pipe.
- A sweep mechanism configured to move in an arc about the pivot axis.
- A slip ring support plate supported on the pivot pipe, which supports the stationary portion.
- A flange on the pivot pipe that supports the slip ring support plate.
- A first drive unit with a motor for the sweep mechanism, where the drive unit and the rotatable portion of the collector ring rotate together.
- The complaint does not explicitly reserve the right to assert dependent claims.
U.S. Patent No. 9,206,001 - "Bin Sweep Collector Ring Assembly"
- Patent Identification: U.S. Patent No. 9206001, "Bin Sweep Collector Ring Assembly," issued December 8, 2015.
- Technology Synopsis: As a continuation of the application for the ’000 Patent, this patent also describes an above-floor bin sweep assembly (’001 Patent, col. 1:10-14). Its claims focus on the structural relationship between the housing, the sweep mechanism, and the drive unit, specifying that the housing is adjacent to both the sweep mechanism on one side and the drive unit on another, creating an integrated central rotating assembly (’001 Patent, col. 6:18-24).
- Asserted Claims: At least independent claim 1 (Compl. ¶62).
- Accused Features: The complaint accuses the entire NexGen 3000 system, focusing on the alleged pivot pipe, collector ring, sweep mechanism, first drive unit, and the housing that is positioned between the drive unit and the auger section (Compl. ¶63-67).
U.S. Patent No. 10,017,338 - "Bin Sweep Collector Ring Assembly"
- Patent Identification: U.S. Patent No. 10017338, "Bin Sweep Collector Ring Assembly," issued July 10, 2018.
- Technology Synopsis: This patent, a continuation of the application for the ’001 Patent, claims the bin sweep apparatus using more generalized language. It introduces the term "linear conveyor" having "a plurality of spaced apart grain engaging surfaces" instead of specifying an "auger" or "sweep mechanism" (’338 Patent, col. 6:3-8). This potentially broadens the claim scope to cover other types of grain-moving technologies besides traditional screw augers.
- Asserted Claims: At least independent claim 1 (Compl. ¶78).
- Accused Features: The complaint alleges the NexGen 3000 system's auger infringes the "linear conveyor" limitation, and also points to the system's pivot pipe, collector ring, drive unit, and housing (Compl. ¶79-83).
III. The Accused Instrumentality
- Product Identification: The "Hutchinson NexGen 3000 Series Commercial Sweep" bin sweep system, also marketed as the "NexGen 3000 Klean Sweep Augur" (Compl. ¶33).
- Functionality and Market Context:
- The accused product is a commercial-grade system for clearing grain from large storage bins (Compl. ¶33). The complaint alleges it is marketed as a "Key Component to Zero Bin Entry Operation," a feature central to the patents-in-suit (Compl. p. 7).
- The complaint uses the defendant's own marketing brochure to allege that the system includes an "above floor Electric Slip Ring," which corresponds to the patented collector ring assembly (Compl. ¶35, p. 9). An annotated diagram from the product manual shows a "Pivot stand, defining vertical axis," which is a core element of the asserted claims (Compl. ¶34, p. 8). Another annotated diagram identifies a "Housing surrounding collector ring" and a "First drive unit" containing a motor, which rotate together with the auger (Compl. ¶36, p. 10).
- The complaint alleges the product is of significant commercial importance as a "zero entry" system, directly competing with the plaintiff's own MAX™ brand products that embody the patented inventions (Compl. ¶14-15).
IV. Analysis of Infringement Allegations
'823 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| a pivot stand attached to a top surface of the floor grate, the pivot stand defining a vertical pivot axis | The accused system includes a pivot stand attached to the top surface of a floor grate, which defines a vertical pivot axis for the sweep. An annotated diagram from the product manual identifies this component. | ¶34 | col. 4:24-28 |
| a collector ring having a first stationary portion and a second rotatable portion, wherein the stationary portion is attached to the pivot stand above the floor grate | The system has a collector ring with stationary and rotatable parts. The stationary part is attached to the pivot stand above the floor grate, as evidenced by product specifications mentioning an "above floor Electric Slip Ring." | ¶35 | col. 4:29-33 |
| a housing surrounding the collector ring | The system provides a housing that surrounds the collector ring. An annotated diagram from the product manual identifies the "Housing surrounding collector ring." | ¶36 | col. 4:34-39 |
| wherein the housing and second rotatable portion of the collector ring rotate together about the pivot axis | The housing and the rotatable part of the collector ring are alleged to rotate together around the pivot axis. | ¶36 | col. 4:34-39 |
| wherein the housing is attached to a drive unit on one side and to an auger section on another side, the drive unit containing a motor for driving an auger of the auger section | The housing is attached to a drive unit with a motor and to the auger section, forming a central rotating assembly. This is supported by an annotated diagram showing these components connected. | ¶36 | col. 4:40-45 |
'000 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| a pivot pipe extending above a top surface of the floor grate, the pivot pipe defining a vertical pivot axis | The accused system has a pivot pipe that extends above the floor grate and defines the vertical pivot axis. This is shown in an annotated diagram from the product manual. | ¶47 | col. 4:18-23 |
| a collector ring having a first stationary portion and a second rotatable portion, wherein the stationary portion is attached to the pivot pipe above the floor grate | The system has a collector ring with stationary and rotatable parts, attached to the pivot pipe above the floor, described in marketing materials as an "above floor Electric Slip Ring." | ¶48 | col. 4:29-33 |
| a sweep mechanism configured to move in an arc about the vertical pivot axis...the first end is positioned proximate the collector ring | The system has a rotating auger (sweep mechanism) that moves in an arc about the pivot axis, with its inner end near the collector ring. This is depicted in product diagrams. | ¶49 | col. 3:9-13 |
| a slip ring support plate supported on the pivot pipe, wherein the slip ring support plate supports the first stationary portion | The system provides a slip ring support plate on the pivot pipe, which supports the stationary portion of the collector ring. An annotated diagram shows this component. | ¶50 | col. 4:55-58 |
| a flange supported on the pivot pipe, wherein the flange supports the slip ring support plate | A flange on the pivot pipe allegedly supports the slip ring support plate. An exploded diagram from the product manual is used to identify this flange. | ¶51 | col. 4:50-54 |
| a first drive unit positioned proximate the first end of the sweep mechanism...wherein the first drive unit and second rotatable portion of the collector ring rotate together about the pivot axis | A drive unit with a motor is positioned at the inner end of the sweep mechanism and rotates together with the rotatable part of the collector ring. An annotated diagram shows the drive unit. | ¶52 | col. 3:9-17 |
- Identified Points of Contention:
- Scope Questions: The patents use slightly different terms for the central pivot, such as "pivot stand" ('823 Patent) versus "pivot pipe" ('000, '001, '338 Patents). A question for claim construction may be whether the accused structure meets these distinct definitions or if the terms are interchangeable. Similarly, the '338 patent's use of "linear conveyor" raises the question of whether its scope is meaningfully different from the "auger" or "sweep mechanism" recited in the earlier patents.
- Technical Questions: The complaint's allegations rely on high-level marketing brochures and schematic diagrams. A central factual question will be whether the internal mechanics of the accused "Electric Slip Ring" and its housing actually operate as required by the claims, specifically the limitation that the "housing and second rotatable portion of the collector ring rotate together." The provided evidence asserts this connection but does not detail the internal coupling mechanism.
V. Key Claim Terms for Construction
The Term: "pivot stand" ('823 Patent, claim 1)
Context and Importance: This term describes the foundational structure upon which the entire above-floor assembly is built. Its construction is critical because the "above-floor" nature of the invention, which is its primary distinction over the prior art, is defined by the attachment of the collector ring to this "pivot stand". Practitioners may focus on this term because the accused product's central pivot must meet this definition for infringement of the '823 patent to be found.
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification describes the pivot stand functionally as what "defines central pivot axis 16" and is "bolted onto the center grate 34" ('823 Patent, col. 4:24-27). This could support a construction covering any structure that performs this pivoting and mounting function above the floor grate.
- Evidence for a Narrower Interpretation: Figure 5 of the patent depicts a specific embodiment of the pivot stand (32) as a distinct, somewhat complex component with a base flange, a shaft, and a keyed top portion (46, 50). A party could argue the term should be limited to a structure possessing these specific features.
The Term: "housing surrounding the collector ring" ('823 Patent, claim 1)
Context and Importance: This term is central to the claim element requiring the "housing" and the rotatable part of the collector ring to rotate together. The meaning of "surrounding" and what constitutes the "housing" will determine whether the accused product's assembly of protective shields infringes.
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification states the housing "surrounds and protects the collector ring... from contact with the stored material" ('823 Patent, col. 5:9-11). This functional language may support a broad definition where any combination of protective covers that shields the ring constitutes the "housing."
- Evidence for a Narrower Interpretation: The specification and Figure 5 disclose the housing as a multi-part assembly including a "main housing section 42," "top cover 56," "front cover 58," and other shields ('823 Patent, col. 5:5-8). An argument could be made that the term "housing" requires this specific collection of components, rather than any generic cover.
VI. Other Allegations
- Indirect Infringement: The complaint makes boilerplate allegations of indirect infringement (e.g., Compl. ¶33). While not extensively detailed, a basis for induced infringement could be inferred from the allegation that Defendant provides an "Owner's & Operator's Manual" that presumably instructs customers on how to operate the allegedly infringing system (Compl. ¶35).
- Willful Infringement: The complaint provides a detailed factual basis for willfulness. It alleges Defendant had actual notice of the '823, '000, and '001 patents at least as of January 2016, when Plaintiff initiated licensing discussions (Compl. ¶16, ¶31, ¶45, ¶61). The complaint chronicles subsequent communications through 2018, which it alleges constitute "objective and subjective reckless disregard" of Plaintiff's patent rights (Compl. ¶37). For the later-issued '338 patent, notice is alleged from the filing of the complaint itself, forming a basis for post-suit willfulness (Compl. ¶77).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of claim construction: can the terms "pivot stand" ('823 Patent) and "pivot pipe" (later patents) be interpreted to read on the same accused structure, and does the accused product's assembly of protective covers meet the structural and rotational requirements of the claimed "housing"? The resolution of these definitional questions will be critical to the infringement analysis for all four patents.
- A second central issue will be evidentiary proof of operation: the complaint relies on high-level product literature to allege infringement. A key question for trial will be whether discovery yields sufficient evidence to demonstrate that the internal components of the accused "NexGen 3000" system—particularly the collector ring and its housing—are coupled and rotate in the specific manner required by the asserted claims.
- Finally, the extensive pre-suit licensing negotiations alleged in the complaint raise a significant question of willfulness. Should infringement be found, the court will need to determine whether Defendant's conduct following its alleged awareness of the patents rose to the level of objective recklessness required for enhanced damages.