DCT
3:24-cv-00316
Savannah IP LLC v. H2OME Certified Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Savannah Intellectual Property LLC (Pennsylvania)
- Defendant: H2OME Certified Inc., dba Home Certified, Inc. (Oregon)
- Plaintiff’s Counsel: Hitt Hiller Monfils Williams LLP; The Law Offices of Louis M Heidelberger PLLC
- Case Identification: 3:24-cv-00316, D. Or., 03/19/2024
- Venue Allegations: Venue is alleged to be proper in the District of Oregon because Defendant maintains its principal place of business in Lake Oswego, Oregon, and has committed alleged acts of infringement in the district.
- Core Dispute: Plaintiff alleges that Defendant’s moisture reduction and certification services for new home construction infringe three patents related to systems and methods for measuring, reducing, and certifying moisture content in building materials to prevent mold.
- Technical Context: The technology addresses the problem of moisture being trapped in the wood framing of modern, rapidly-built structures, which can lead to mold growth and structural damage.
- Key Procedural History: The complaint alleges that the Defendant was aware of the patents-in-suit prior to the filing of the complaint and continued its allegedly infringing activities despite this knowledge, forming the basis for a willfulness allegation.
Case Timeline
| Date | Event |
|---|---|
| 2003-07-16 | Earliest Priority Date for ’688, ’023, and ’200 Patents |
| 2013-10-29 | U.S. Patent No. 8,567,688 Issues |
| 2015-12-15 | U.S. Patent No. 9,213,023 Issues |
| 2019-03-19 | U.S. Patent No. 10,234,200 Issues |
| 2024-03-19 | Amended Complaint Filed |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 8,567,688 - Moisture Reduction and Mold and Moisture Damage Preventative System and Method in Construction
Issued October 29, 2013
The Invention Explained:
- Problem Addressed: The patent’s background describes how modern construction practices, which prioritize speed and energy efficiency, often result in moisture being trapped within walls when they are sealed (’688 Patent, col. 1:54-67). This trapped moisture, particularly in wood framing, creates an environment conducive to mold growth, leading to costly remediation and potential health issues (’688 Patent, col. 1:21-34).
- The Patented Solution: The invention proposes a proactive, preventative method to be employed during construction, after a structure is enclosed but before insulation and wallboard are installed (’688 Patent, col. 4:35-41). The process involves systematically measuring moisture content in structural components, and if levels exceed a predetermined threshold (e.g., 20% for Douglas fir), the space is sealed with a vapor barrier and actively dried using equipment like dehumidifiers, heaters, and air movers until subsequent measurements confirm moisture is at a safe level (’688 Patent, col. 4:41-57; Fig. 1).
- Technical Importance: This systematic approach provides builders with a method to verifiably reduce moisture content to safe levels, rather than relying on natural drying or addressing mold reactively after it appears (’688 Patent, col. 6:1-8).
Key Claims at a Glance:
- The complaint asserts independent Claim 1 and dependent Claim 2 (Compl. ¶17).
- Essential elements of independent Claim 1 include:
- measuring moisture content using a moisture meter at a plurality of locations within the space, including low and high locations of a plurality of exposed wall studs;
- determining whether the measured moisture content meets a threshold indication recommending that drying be performed;
- positioning and operating only within the space at least one drying device (selected from a dehumidifier, space heater, and air moving device) to reduce the moisture level; and
- substantially sealing off the space being treated with a vapor barrier relative to other space within the new home.
U.S. Patent No. 9,213,023 - Building Moisture Content Certification System and Method
Issued December 15, 2015
The Invention Explained:
- Problem Addressed: The patent identifies a need for a formal system to certify that a building has a specific, identified moisture content level, which can help mitigate disputes over mold growth or moisture damage claims against builders or owners (’023 Patent, col. 1:8-14).
- The Patented Solution: The invention describes a system and method for creating a verifiable record of moisture content. The process involves taking moisture measurements throughout a structure, comparing them to a threshold, and potentially issuing a "pass" or "fail" certificate based on the results (’023 Patent, col. 3:4-17). If moisture levels are too high, the system includes a remediation phase of active drying, followed by re-measurement to confirm the moisture is below the threshold before certification (’023 Patent, Fig. 2; col. 4:1-19).
- Technical Importance: This invention provides a standardized process for creating an evidentiary record of a structure's moisture state at a critical point in construction, which could be valuable for liability, insurance, and real estate transactions (’023 Patent, col. 3:20-29).
Key Claims at a Glance:
- The complaint asserts independent Claim 1 (a method) and independent Claim 11 (a system) (Compl. ¶30).
- Essential elements of independent Claim 1 include:
- certifying a moisture content level;
- measuring, with a moisture meter, moisture content at a plurality of interior locations within a building;
- comparing the measured moisture content with a threshold moisture content level;
- drying, with at least one drying device, a space of the building to reduce the moisture content; and
- measuring with the moisture meter to confirm that the moisture content is below the threshold.
U.S. Patent No. 10,234,200 - Moisture Reduction and Mold and Moisture Damage Prevention System and Method in Construction
Issued March 19, 2019
- Technology Synopsis: This patent, a descendant of the application that led to the ’688 patent, also discloses a preventative process for treating a wood frame in new construction before wallboard is applied. The method addresses trapped moisture by measuring moisture content, determining if it exceeds a threshold, and if so, using at least one drying device (e.g., dehumidifier, heater) and placing a vapor barrier between the treated space and other spaces to reduce moisture to a safe level (’200 Patent, Abstract; col. 2:15-23).
- Asserted Claims: Claims 1-7 (Compl. ¶43). Independent Claim 1 is the lead claim.
- Accused Features: The complaint alleges that Defendant's services infringe by performing a process of treating a wood frame that includes measuring moisture content, comparing it to a threshold, placing drying devices and a vapor barrier, and operating the devices to reduce moisture (’200 Patent, Compl. ¶¶45-49).
III. The Accused Instrumentality
- Product Identification: The "Accused Home Services" offered by Defendant H2OME Certified, Inc. (Compl. ¶11).
- Functionality and Market Context: The complaint alleges that Defendant provides services that involve processes for treating spaces within new homes to prevent structural damage and mold growth (Compl. ¶17). These services are alleged to include certifying a moisture content level in wood framing; measuring moisture content with a meter at multiple interior locations, including high and low points on wall studs; comparing measurements to a threshold level; sealing off the treated space with a vapor barrier; and using drying devices such as dehumidifiers, space heaters, and air movers to reduce moisture (Compl. ¶¶19-23, 32-36, 45-49).
IV. Analysis of Infringement Allegations
’688 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| measuring moisture content using a moisture meter at a plurality of locations within the space, wherein said plurality of locations include low and high locations of a plurality of exposed wall studs; | Home measures, with a moisture meter, moisture content at a plurality of interior locations within a building including low and high locations at a plurality of exposed wall studs. | ¶20 | col. 6:33-35 |
| determining whether the measured moisture content meets a threshold indication recommending that drying be performed; | Home compares the measured moisture content with a threshold moisture content level. | ¶21 | col. 6:36-38 |
| positioning and operating only within the space at least one drying device... wherein the at least one drying device is selected from the group consisting of a dehumidifier, a space heater, and an air moving device; and | Home ... dries, with at least one drying device, a space of the building in order to reduce the moisture content... whereby the at least one drying device is directed and/or located within the building... wherein the drying devices may include a dehumidifier, space heater and/or air moving device. | ¶22 | col. 6:39-46 |
| further comprising the step of substantially sealing off the space being treated with a vapor barrier relative to other space within said new home. | Home seals off the space to be treated with vapor barrier relative to other space within the building. | ¶22 | col. 6:47-49 |
’023 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| certifying a moisture content level, comprising: | Home's System and Accused Services include certifying a moisture content level in the wood framing of new construction. | ¶32 | col. 8:38 |
| measuring, with a moisture meter, moisture content at a plurality of interior locations within a building; | Home's System and Accused Services include measuring, with a moisture meter, moisture content at a plurality of interior locations within a building. | ¶33 | col. 8:39-41 |
| comparing the measured moisture content with a threshold moisture content level; | Home's System and Accused Services include comparing measurements with a... threshold moisture content level. | ¶34 | col. 8:42-43 |
| drying, with at least one drying device, a space of the building in order to reduce the moisture content at the plurality of interior locations...; and | Home's System and Accused Services include drying, with at least one drying device, a space of the building in order to reduce the moisture content. | ¶35 | col. 8:44-48 |
| measuring, with the moisture meter, moisture content at one or more of the plurality of interior locations to confirm that the moisture content is below the threshold moisture content level. | Home's System and Accused Services include measuring, with the moisture meter, moisture content at one or more of the plurality of interior locations to confirm that the moisture content is below the threshold moisture content level. | ¶36 | col. 8:49-52 |
- Identified Points of Contention:
- Scope Questions: For the ’688 Patent, a potential issue is the scope of "substantially sealing off the space." The degree of sealing required to meet this limitation may be disputed. For the ’023 Patent, the meaning of "certifying a moisture content level" will be central, specifically whether the Defendant's actions constitute the formal certification process contemplated by the patent.
- Technical Questions: A factual question for all asserted patents will be whether the Defendant's service performs each step in the specific sequence required by the claims. For example, the ’688 Patent requires operating the drying device after sealing the space with a vapor barrier. The complaint alleges these actions but does not specify their order.
No probative visual evidence provided in complaint.
V. Key Claim Terms for Construction
’688 Patent
- The Term: "substantially sealing off the space" (Claim 1)
- Context and Importance: This term is a potential point of dispute because "substantially" is a term of degree. The effectiveness of the claimed drying process depends on isolating the treatment area. Practitioners may focus on this term because Defendant could argue its method of sealing is incomplete and therefore not "substantial," thereby avoiding infringement.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The claim language itself, using the modifier "substantially," suggests that a perfect, hermetic seal is not required.
- Evidence for a Narrower Interpretation: The specification provides a specific example of "plastic sheeting in roll form and duct tape to seal the sheeting to close off the opening" (’688 Patent, col. 5:23-26), which could be used to argue that a fairly thorough and deliberate barrier is required to meet the "substantial" threshold.
’023 Patent
- The Term: "certifying a moisture content level" (Claim 1)
- Context and Importance: This is the first and arguably most critical step of Claim 1 of the ’023 Patent. The entire purpose of the invention is to provide a formal certification. Practitioners may focus on this term because the nature of the "certification" provided by the Defendant will determine infringement. If the Defendant's service only provides an informal report, it may argue it is not "certifying" in the manner claimed.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The claim language itself does not specify the form of the certification. An argument could be made that any formal representation of the moisture level to a client, such as a detailed report, constitutes "certifying."
- Evidence for a Narrower Interpretation: The specification repeatedly refers to the issuance of a formal "moisture content level pass certificate" or "failure certificate" (’023 Patent, col. 3:9-17, Fig. 1). This suggests that "certifying" requires the creation of a distinct, formal document akin to a certificate, not just the delivery of raw data or a simple report.
VI. Other Allegations
- Indirect Infringement: The complaint alleges that Defendant induces and/or contributes to infringement by "making, using, licensing, selling, offering for sale, the Accused Home Services" (Compl. ¶¶25, 38, 51). The complaint does not plead specific facts detailing how Defendant encourages a third party (e.g., a homeowner or builder) to perform the claimed steps.
- Willful Infringement: The complaint alleges willfulness for all three patents. The basis is the allegation that "Home was aware of the Patents-In-Suit prior to the filing of this Complaint" and that "Home has continued to commit acts of infringement" despite this knowledge (Compl. ¶¶13-14, 27, 40, 53).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of definitional scope: can the term "certifying a moisture content level" from the ’023 patent be construed to cover the specific reporting or documentation provided by the Defendant, or does the patent’s discussion of formal "pass/fail certificates" require a more specific act of certification than what is being performed?
- A second central question will concern the evidentiary standard for willfulness: the complaint asserts pre-suit knowledge without providing a factual basis. The case may turn on what specific evidence Plaintiff can produce to demonstrate that Defendant knew of the patents and the alleged infringement before the lawsuit was filed.
- A key factual question will be one of process execution: do the Accused Home Services perform all the steps of the asserted claims in the precise order and manner required? For instance, does the service practice the "substantially sealing" limitation of the ’688 patent, and does it follow the specific sequence of measuring, determining, sealing, and drying as claimed?