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Electrovert Ltd. v. Specnor Tecnic Corp.

July 13, 2010

ELECTROVERT LTD. AND SPEEDLINE TECHNOLOGIES, INC., PLAINTIFFS,
v.
SPECNOR TECNIC CORP., DEFENDANT.



The opinion of the court was delivered by: Richard A. Lazzara United States District Judge

ORDER

Before the Court is Plaintiffs' Motion for Contempt (Dkt. 39) and Defendant's Memorandum in Opposition and Declaration of Tony Gyemant. (Dkts. 41 & 42). After careful consideration of the submissions of the parties and the applicable law, the Court concludes that the motion should be denied.

Plaintiffs request this Court to exercise its contempt power to ascertain whether Defendant Specnor Tecnic Corporation (Specnor) has violated the Agreed Order and Permanent Injunction (the Order) entered in this case on May 29, 2001.*fn1 (Dkt. 35). The Order enjoined Specnor from, among various other dictates, selling any wave solder apparatus that infringes any claim of U.S. Patent No. 5,204,489 (the '489 patent). (Dkt. 35 at para. 1). The Order also directed Specnor to renumber its parts. (Dkt. 35 at para. 5.b.). Jurisdiction was retained to enforce the Order. (Dkt. 35 at para. 6).

Pursuant to the parties' Joint Stipulation which precipitated entry of the Order, Specnor was granted a non-exclusive, royalty-based license to manufacture and sell certain products covered by the '489 patent. Specnor was to pay $4,000 to Plaintiffs as a royalty for each inert wave solder machine or nitrogen retrofit kit manufactured or sold. Some five years after the entry of the Order, Plaintiffs discovered that Specnor had sold a "Nitrogen Inert Soldering" retrofit kit and sought to secure the $4,000 royalty payment. Specnor paid the royalty. Plaintiffs then invoked their right to an independent third-party audit of Specnor. The audit reveals that 32 kits had been sold without royalties being paid to Plaintiffs. (Dkt. 39, Exh. 7). The audit further ...


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