Pleading Patent Infringement in Canada: Lessons and Advice from the Federal Court
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PLEADINGPATENTINFRINGEMENTINCANADA:LESSONSANDADVICE
FROMTHEFEDERALCOURT
A.
SASHAMANDY*
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AWYERS,PATENT&TRADEMARKAGENTS
Whensuingapartyforinfringingapatent,whatmustbeallegedinthestatementof
claim?Bertelsenv.AutomatedTankManufacturingInc.2011FC1219answersthis
question.Insodoing,JusticeO’KeefeoftheFederalCourtofCanadaupholdsa
longlineofcaselawandremindslitigantsofthedangerofinsufficientlypleading
theircase.
Thiscaseisofobviousimportancetopatentlitigators,butitsteachingsapplyto
litigationsofallstripesbeforetheFederalCourt.Itmayalsobeofinteresttopatent
agentsandpractitioners,whowillbetterunderstandwhatisrequiredofthemwhen
oneoftheirlitigatorcolleaguesasksforassistanceinpreparinganactionfor
infringement.
TheFacts
LarryBertelsen,theplaintiff,filedsuitintheFederalCourtviaastatementofclaim
onAugust4,2010.Bertelsenallegedthatthedefendant,AutomatedTank
ManufacturingInc.,infringedCanadianpatentNo.2,479,412.The‘412patent
containsonlytwoclaims,bothofwhichareindependent.Claim1isdirectedtoa
methodoffabricatingatallmulti-stageworkpiece,andclaim2isdirectedtoa
fabricationstationforamulti-stageworkpiece.
Bertelsen’sstatementofclaimwassubsequentlyamendedthreetimes.Thelastof
theseamendmentsoccurredwiththepermissionofaProthonotary.Itisthedecision
oftheProthonotarytowhichAutomatedTankobjects,andthatisthesubjectofthis
appealbeforetheFederalCourt.AutomatedTankalsoasksthatcertainessential
paragraphsofthestatementofclaim(i.e.thosealleginginfringementofthe‘412
patent’stwoclaims)bestruckwithoutpermissiontoamendandthatBertelsen’s
actionbedismissed.
©CIPS,2012.*OfROBIC,LLP,amultidisciplinaryfirmoflawyers,patentandtrademarkagents.Publishedat
(January2012),26:01WorldIntellectualPropertyReport.Publication142.2567
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The
FederalCourtRulesrequirethatall“actions”broughtbeforetheFederalCourt
(whichdifferfrom“applications”or“appeals”)aretobeintroducedbyfilinga
statementofclaim.Thestatementofclaimmustfollowapreciseformat,andmust
beginwithalistingofthereliefsoughtfollowedbyconsecutivelynumbered
paragraphsthatsetouteachallegationofmaterialfactreliedontosubstantiatethe
claim.
ThisappealturnsontheinterpretationofRule174oftheFederalCourtRules,which
governsthepleadingofmaterialfactsinanystatementofclaim:
174.Everypleadingshallcontainaconcisestatementofthematerialfactson
whichthepartyrelies,butshallnotincludeevidencebywhichthosefactsareto
beproved.
TheFederalCourtJudgement
JusticeO’Keefebeganhisanalysisbyaddressingtheapplicablestandardwhen
reviewingdecisionsoftheProthonotary.TheFederalCourthadalreadyaddressed
thisquestioninHarrisonvSterlingLumberCo2008FC220,[2008]FCJNo270,
andJusticeO’Keefeadopteditsreasons.JusticeO’Keefeheldthatthedenovo
standardappliestothisappeal(i.e.theFederalCourtowesnodeferencetothe
decisionoftheProthonotaryandcansubstituteitsownopinion)becausethe
presentcasedealswith“thestrikingoftheoperativepartsofthestatementofclaim.”
The“operativeparts”towhichJusticeO’Keeferefersareparagraphs9to13,and15
ofthethrice-amendedstatementofclaim.Paragraphs9and10allegeinfringement
ofthemethodandproductclaims,respectively.Iftheseparagraphsweretobe
struck,thestatementofclaimwouldnolongercontainallegationsofinfringement
andwouldthusbedismissed.ThisexplainsJusticeO’Keefe’sholdingthat“thisisa
matterthatisvitaltothefinalissueinthecase.”
JusticeO’Keefethenlookedattheissueofwhetherparagraphs9and10contained
thenecessaryfactstomakeoutanallegationofpatentinfringement,orwhether
theywereimpermissiblyspeculative.AutomatedTankarguedthatBertelsensimply
repeatedthewordsoftheclaimstoproveinfringement.Paragraphs9and10read
asfollows:9.TheDefendanthassinceadatethatisunknowntothePlaintiffbutthat
isas[sic]leastasearlyasOctober,2008atKitscoty,Alberta,utilized
equipmentandmanufactured,constructed,madeandrepairedoilfield
storagetanksinmannerthatutilizesamethod:providingaverticalshaftextendingbelowgroundatapermanent
fabricationfacility;
suspendinganelevatorplatformintheshaftbycables,theelevator
platformbeingraisedandloweredintheshaftbywincheswhich
controlalengthofthecablestolowertheelevatorplatformandraise
theelevatorplatformintheshaft;
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providingatleastoneabovegroundworkstationat
theupperendof
theshaft;
placingaworkpieceonamotordrivenrotatingturntableonthe
elevatorplatform;
activatingthemotordrivenrotatingturntabletorotatetheturntableas
requiredduringfabricationtopermitworkersaccesstoanentire
circumferenceoftheworkpiecewithoutmovingfromtheatleastone
abovegroundworkstation;
loweringtheelevatorplatformaseachstageoftheworkpieceis
completedinordertomaintainadesiredworkingheightforworkers
attheatleastoneabovegroundworkstation;and
raisingtheelevatorplatformandremovingtheworkpiecefromthe
elevatorplatformwhenfabricationiscomplete.
10.TheDefendanthas,sinceadatethatisunknowntothePlaintiffbut
thatisas[sic]leastasearlyasSeptember12,2007,constructedorused
afabricationstationforatallmulti-stageworkpieceincludingthe
manufacture,construction,makingandrepairofoilfieldstoragetanks,at
4601-49Avenue,Kitscoty,Albertaorotherlocationsunknowntothe
Plaintiffthatincludes:averticalshaftextendingbelowground;
anelevatorplatformsuspendedbycablesintheshaft,winchesbeing
providedtocontrolalengthofthecablestolowertheelevator
platformandlist[sic]theelevatorplatformintheshaft;
Theconstituentelementsofparagraphs9and10areidenticaltoclaims1and2,
respectively.
JusticeO’Keefelookedtotheauthoritiesregardingthesufficiencyofpatent
infringementpleadings.HecitedDowChemicalCovKaysonPlastics&Chemicals
Ltd(1996),47CPR1,whereitwasdecidedthatpatentinfringementpleadingsmust
containthefollowing:(a)factsbyvirtueofwhichthelawrecognizesadefinedrightas
belongingtotheplaintiff,and
(b)factsthatconstituteanencroachmentbythedefendantonthat
definedrightoftheplaintiff.
JusticeO’KeefecitedwithapprovalthefirstProthonotaryinthisfile,whooriginally
rejectedtheamendmentproposedbyBertelsenbutauthorisedhimtoapplyfor
leavetoamend:Aplaintiffmustdescribewithparticularitytherighttowhichheclaimsto
beentitledandwhichheallegeshasbeeninfringedbythedefendant.
Thisisparticularlyimportantinpatentinfringementactions,whichare
generallycomplexandtechnicalinnature.Theallegationsproposedby
thePlaintiffrelatingtoinfringementbytheDefendantsimplyreferbackto
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theclaimsinthepatentatissue.Suchgeneralallegationsareinsufficient
andcannotbeallowed.
AswasstatedbyMr.JusticeJackettin
PrecisionMetalsmithsInc.v.
CercastInc.(1966),49C.P.R.234(Ex.Ct.)atpage242-243:“Itisnota
compliancewiththerequirementthatthematerialfactsbeallegedmerely
tostatetheconclusionsthattheCourtwillbeaskedtodraw…”The
Defendantisentitledtoknowwithprecisionwhatexactlyithasdonethat
isallegedtohaveinfringedtherightsofthePlaintiff.Beingsubstantiallyin
agreementwiththewrittensubmissionsfiledonbehalfoftheDefendant,I
concludethattheessentialelementsofacauseofactionforpatent
infringementhavenotbeenpleadedatparagraphs2,6and7ofthe
AmendedAmendedStatementofClaim.
JusticeO’Keefedismissedparagraphs9and10oftheStatementofClaim,holding
thattheyare“inessencearestatementoftheclaimsofthe‘412Patent”.They
thereforedonotpleadthefactsuponwhichaclaimforinfringementcanbebased,
andaredeficient.TheProthonotarythuserredinallowingtheproposed
amendments,andJusticeO’Keefestruckparagraphs9to13,and15withoutleave
toamend.HethendismissedBertelsen’sactionforinfringementwithcostsawarded
toAutomatedTank.
Conclusion
Thisdecisionwillnodoubtserveasacautionaryremindertopatentlitigatorsthat
theycannotblithelyallegeinfringementbyrepeatingverbatimtheelementsofthe
infringedclaims.Theplaintiffmustsetoutthespecificinfringingfactsthatthe
defendantisallegedtohavedone.
Failuretodosocanhavesevereconsequences,asillustratedinthepresentcase.
TheCourtwillnothesitatetodismissanimproperlypleadinfringementaction,with
costs.
Isthistheendofthisaffair?Probably.AlthoughcounselforBertelsenappealedto
theFederalCourtofAppealonOctober20,2011,theCourtdocketindicatesthat
theyfiledaletteronNovember22,2011advisingthattheywillbediscontinuingthe
appeal,andthattheyawaitthesignedconsentofopposingcounsel.
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