Defendants' Statements Challenging Validity of Asserted Patents Undermine Equitable Estoppel Defense

In denying defendants' motion for summary judgment on the issue of equitable estoppel, the court found that "[g]enuine issues of material fact exist as to whether [defendants] actually relied on [plaintiff's] action (or inaction), or whether they relied on a belief that the [patents-in-suit] were invalid." Plaintiff offered evidence of several letters drafted by defendants that questioned the validity of the patents. "Defendants characterize these statements as a mere 'initial reaction of [defendant's] business people . . . including their predictable questioning of patent validity and alleged infringement.' . . . Perhaps, but Defendants’ argument is effectively an invitation for the Court to resolve a genuine issue of material fact at the summary judgment stage. Doing so would be inappropriate and premature, particularly given the fact that all reasonable inferences tilt in [plaintiff's] favor."

Lautzenhiser Technologies, LLC v. Sunrise Medical HHG, Inc., et. al., 4-07-cv-00084 (INSD November 8, 2010, Entry on Cross-Motions for Summary Judgment) (Pratt, J.)