`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 1 of 27
`
`
`
`
`
`EXHIBIT 1
`EXHIBIT 1
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 2 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 1 of 26
`
`
`JOE W. REDDEN, JR., admitted pro hac vice
`BECK, REDDEN & SECREST
`One Houston Center
`1221 McKinney St., Suite 4500
`Houston, Texas 77010-2029
`Telephone: (713) 951-3700
`Facsimile: (713) 951-3720
`e-mail: jredden@brsfirm.com
`
`CHARLES J. ROGERS, admitted pro hac vice
`CONLEY ROSE, P.C.
`1001 McKinney St., Suite 1800
`Houston, Texas 77002-6421
`Telephone: (713) 238-8049
`Facsimile: (713) 238-8008
`e-mail: CRogers@conleyrose.com
`
`Attorneys for Defendant
`Cameron International Corporation
`
`
`UNITED STATES DISTRICT COURT
`
`EASTERN DISTRICT OF CALIFORNIA, FRESNO DIVISION
`
`
`Case No. 1:13-cv-00281-MLH-SKO
`
`DEFENDANT CAMERON’S
`SECOND AMENDED ANSWER
`AND COUNTERCLAIMS TO
`SEABOARD'S COMPLAINT
`
`Hon. Marilyn L. Huff
`
`SEABOARD INTERNATIONAL, INC.,
`
`
`
`
`
`CAMERON INTERNATIONAL CORP.,
`
`
`
`Plaintiff/Counterclaim-Defendant,
`
`vs.
`
`Defendant/Counterclaim-Plaintiff.
`
`
`Defendant Cameron International Corporation (“Cameron”) files this Second
`
`Amended Answer and Counterclaims
`
`to Plaintiff Seaboard
`
`International,
`
`Inc.
`
`(“Seaboard”)’s Complaint. Cameron amends its Answer and Counterclaims in response to
`
`the Court’s Order (Doc. No. 46) granting in part and denying in part Seaboard’s Rule 12
`
`motion to dismiss counterclaims and strike defenses (Doc. Nos. 37-38), which granted
`
`leave for Cameron to amend its Answer and Counterclaims.
`
`In addition to amending its Answer to Plaintiff Seaboard’s Complaint for alleged
`
`patent infringement, Cameron amends its Counterclaims against Seaboard seeking a
`
`declaratory judgment as to the noninfringement, invalidity, and unenforceability of the
`
`
`
`
`
`
`
`-1-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 3 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 2 of 26
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`asserted patent, and amends its Counterclaims seeking a declaratory judgment as to the
`
`unenforceability of United States Patent Nos. 7,322,407 (“the ‘407 patent”), 7,416,020
`
`(“the ‘020 patent”), 7,493,944 (“the ‘944 patent”), 7,520,322 (“the ‘322 patent”), 7,726,393
`
`(“the ‘393 patent”), and 8,272,433 (“the ‘433 patent”).
`
`JURISDICTION AND VENUE
`
`1.
`
`Defendant Cameron admits that this is an action alleging patent infringement
`
`under the patent laws of the United States, admits that the Complaint purports to state a
`
`cause of action over which this court has subject matter jurisdiction under 28 U.S.C.
`
`§§ 1331 and 1338(a). Cameron denies that it has committed any patent infringement as
`
`alleged in the Complaint.
`2.
`
`Defendant Cameron admits that venue is proper in this District pursuant to
`
`28 U.S.C. §§ 1391(b) and 1400. Defendant denies that venue in this District is the most
`
`convenient district for the parties, witnesses, and the interest of justice under 28 U.S.C.
`
`§ 1404(a).
`3.
`
`Defendant Cameron denies the averments contained in paragraph 3 of
`
`Plaintiff’s Complaint.
`
`PARTIES
`
`4.
`
`Defendant Cameron is without sufficient knowledge and information to form
`
`a belief as to the truth of the averments contained in paragraph 4 of Plaintiff’s Complaint.
`
`Defendant therefore denies those averments.
`5.
`
`Defendant Cameron admits the averments contained in paragraph 5 of
`
`Plaintiff’s Complaint.
`
`GENERAL ALLEGATIONS
`
`6.
`
`Defendant Cameron is without sufficient knowledge and information to form
`
`a belief as to the truth of the averments contained in paragraph 6 of Plaintiff’s Complaint.
`
`Defendant therefore denies those averments.
`
`
`
`
`
`
`
`-2-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 4 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 3 of 26
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`7.
`
`Defendant Cameron admits the averments contained in paragraph 7 of
`
`Plaintiff’s Complaint.
`
`FIRST CLAIM FOR RELIEF
`
`8.
`
`Defendant Cameron admits that on December 18, 2012 the United States
`
`Patent and Trademark Office issued United States Patent No. 8,333,237, entitled “Wellhead
`
`Isolation Tool and Wellhead Assembly Incorporating the Same,” but denies that the patent
`
`was “duly and legally issued” as alleged in paragraph 8 of Plaintiff’s Complaint. Cameron
`
`admits that a copy of the ‘237 patent is attached as Exhibit 1 to Plaintiff’s Complaint.
`9.
`
`Defendant Cameron is without sufficient knowledge and information to form
`
`a belief as to the truth of the averments contained in paragraph 9 of Plaintiff’s Complaint
`
`regarding ownership of the ‘237 patent, especially considering Plaintiff Seaboard’s past
`
`history of participating in the assignment of rights in a related patent involved in litigation
`
`adverse to Cameron without notifying Cameron or the Court of the assignment. Defendant
`
`therefore denies those averments.
`10.
`
`Defendant Cameron denies the averments contained in paragraph 10 of
`
`Plaintiff’s Complaint.
`11.
`
`Defendant Cameron denies the averments contained in paragraph 11 of
`
`Plaintiff’s Complaint.
`12.
`
`Defendant Cameron denies the averments contained in paragraph 12 of
`
`Plaintiff’s Complaint.
`13.
`
`Defendant Cameron denies the averments contained in paragraph 13 of
`
`Plaintiff’s Complaint.
`14.
`
`Defendant Cameron denies the averments contained in paragraph 14 of
`
`Plaintiff’s Complaint.
`15.
`
`Defendant Cameron denies the averments contained in paragraph 15 of
`
`Plaintiff’s Complaint.
`
`
`
`
`
`
`
`-3-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 5 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 4 of 26
`
`
`PRAYER FOR RELIEF
`
`16.
`
`Defendant Cameron denies that Plaintiff is entitled to any relief in
`
`connection with the averments contained in Plaintiff’s Complaint.
`
`DEMAND FOR JURY TRIAL
`
`17.
`
`Defendant Cameron admits that Plaintiff has demanded a jury trial for all
`
`issues triable of right before a jury.
`
`OBJECTIONS AND AFFIRMATIVE DEFENSES
`
`18.
`
`The following objections and affirmative defenses to Plaintiff’s Complaint
`
`are pled, in whole or in part, to provide notice to the Plaintiff pursuant to Rules 8(c) and
`
`12(b) of the Federal Rules of Civil Procedure. Defendant Cameron reserves the right to
`
`make appropriate motions pursuant to Rule 12(c) of the Federal Rules of Civil Procedure.
`
`The following objections and affirmative defenses should not be construed as improperly
`
`shifting the burden of proof to Defendant Cameron.
`
`FAILURE TO STATE A CLAIM
`
`19.
`
`Plaintiff’s Complaint fails to state a claim upon which relief can be granted.
`
`NON-INFRINGEMENT
`
`20.
`
`Defendant Cameron does not infringe and has never infringed, either directly
`
`or indirectly, any valid claim of the ‘237 patent.
`
`INVALIDITY
`
`21.
`
`The claims of the ‘237 patent are invalid for failure to meet the conditions
`
`for patentability specified in 35 U.S.C. Sections 102 and 103, and for failure to comply with
`
`the requirements of 35 U.S.C. Section 112.
`
`
`
`
`
`
`
`-4-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 6 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 5 of 26
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`UNENFORCEABILITY
`PROSECUTION LACHES
`
`22.
`
`The ‘237 patent is unenforceable due to the equitable defense of prosecution
`
`laches arising from Seaboard and its predecessor in interest Duhn Oil’s unreasonable and
`
`unexplained delay in prosecution of the applications that led to the issuance of the ‘237
`
`patent. The ‘237 patent issued on December 18, 2012, from a string of ten applications
`
`over a period of almost eleven years dating back to an initial provisional application filed
`
`on February 19, 2002. The equitable defense of “prosecution laches” renders a patent
`
`unenforceable when unreasonable and unexplained delays in the prosecution of a patent
`
`causes prejudice to a defendant, such as when the delayed issuance of a patent otherwise
`
`could be enforced to remove a product from the market that existed prior to the patent
`
`applicant’s delayed filing of the patent claims at issue.
`
`23.
`
`The ‘237 patent claims were first filed on May 24, 2012. The ‘237 patent
`
`claims directed to a “single load path” configuration were unreasonably delayed for over
`
`six and a half years after Seaboard’s predecessor in interest Duhn Oil had disclaimed the
`
`Figure 2 “single load path” embodiment and defined the invention as limited to a “dual load
`
`path” design. In response to a prior art rejection from the Patent Office, Duhn Oil amended
`
`its application claims and narrowed its invention to a “dual load path” design by adding the
`
`disputed “wherein” clause on November 15, 2004 in the parent ‘925 patent application.
`
`Duhn Oil then delayed over six and a half years to then broaden its patent claims to purport
`
`to cover a “single load path” design, thereby attempting to recapture subject matter that
`
`Duhn Oil had previously disclaimed.
`
`24.
`
`Duhn Oil’s unreasonable delay could now result in the removal of
`
`Cameron’s products from the marketplace which Cameron has been selling for ten years
`
`
`
`
`
`
`
`-5-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 7 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 6 of 26
`
`
`dating back to 2003. The prejudice to Cameron is severe, and compounded by Duhn Oil’s
`
`positions taken in the ‘925 patent litigation, which Cameron relied upon to modify its
`
`products, change its running procedures, and continue marketing the products with the
`
`understanding that they would be free from charges of patent infringement as long as the
`
`tubing head lockscrews were not run in. Cameron’s ongoing sales, and management of sold
`
`products, may now be subject to the newly issued ‘237 patent resulting from unreasonably
`
`delayed “single load path” claims. Furthermore, if Cameron had been faced with these
`
`newly asserted ‘237 “single load path” claims sooner, Cameron could have and would have
`
`shifted to a different design rather than devoting its resources to the running procedure
`
`change and the expenses associated with the tracking of the products to ensure that its
`
`customers were not running in the lockscrews.
`
`25.
`
`The ‘237 patent claims should be held unenforceable under the equitable
`
`defense of prosecution laches due to Seaboard’s unreasonable and unexplained delay in
`
`submitting its “single load path” claims, which have severely prejudiced Cameron because
`
`Cameron relied upon Duhn Oil’s ‘925 patent litigation positions that defined the invention
`
`as limited to “dual load path,” which caused Cameron to change its running procedures and
`
`continue marketing its wellhead assemblies as “single load path” products, which Seaboard
`
`now belatedly asserts is its proprietary design.
`
`JUDICIAL ESTOPPEL
`
`26.
`
`Plaintiff’s claims are barred, in whole or in part, by the doctrine of judicial
`
`estoppel. For example, Plaintiff Seaboard should be estopped from asserting that
`
`Cameron’s “single load path” products infringe the ‘237 patent, due to its predecessor in
`
`interest Duhn Oil’s ‘925 patent litigation positions that defined the invention as limited to
`
`
`
`
`
`
`
`-6-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 8 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 7 of 26
`
`
`“dual load path,” which caused Cameron to change its running procedures and continue
`
`marketing its wellhead assemblies as “single load path” products, which Seaboard now
`
`belatedly asserts is its proprietary design.
`
`UNENFORCEABILITY
`INEQUITABLE CONDUCT
`
`27.
`
`The ‘237 patent is unenforceable due to the actions and/or omissions of
`
`Plaintiff Seaboard, its predecessor in interest Duhn Oil, and their agents, (collectively
`
`“Applicants”), constituting inequitable conduct during the prosecution of the application
`
`that issued as the ‘237 patent, including the string of ten applications over a period of
`
`almost eleven years dating back to an initial provisional application filed on February 19,
`
`2002. See paragraphs 32-44 at pages 19-24 below for the inequitable conduct from the
`
`string of applications which infects the ‘237 patent.
`
`28.
`
`The ‘237 patent is unenforceable because Seaboard, including the named
`
`inventors Rex Duhn and Bob Meek, and the prosecution attorney Constantine Marantidis,
`
`intentionally did not include Mr. John Rogers as an inventor of the ‘237 patent. Mr. Rogers
`
`conceived of and materially contributed to the subject matter claimed in the ‘237 patent.
`
`For example, Mr. Rogers conceived of and contributed the concepts of using a frac
`
`mandrel, sealing the frac mandrel in the tubing head, retaining the frac mandrel through the
`
`use of the tubing head lockscrews, and providing a frac mandrel having an inner diameter at
`
`least as large as the inner diameter of production tubular it would be in communication
`
`with, among others. Mr. Rogers communicated these concepts to Mr. Duhn and Mr. Meek,
`
`as was confirmed by Mr. Duhn’s own courtroom testimony during the ‘925 patent
`
`litigation.
`
`
`
`
`
`
`
`-7-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 9 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 8 of 26
`
`
`29.
`
`Notwithstanding Mr. Duhn and Mr. Meek’s knowledge that Mr. Rogers was
`
`a co-inventor of the subject matter found in the claims of the ‘237 patent, Mr. Duhn and Mr.
`
`Meek declared with deceptive intent to the Patent Office that they were the original and
`
`only inventors of the subject matter claimed in the ‘237 patent.
`
`EQUIVALENTS BAR
`
`30.
`
`Plaintiff Duhn Oil is precluded from a finding of infringement under the
`
`doctrine of equivalents because of statements, representations, and admissions made, and/or
`
`actions taken during the prosecution of the application that issued as the ‘237 patent, and/or
`
`because of statements, representations, and admissions made, and/or actions taken during
`
`the prosecution of related continuation/divisional applications.
`
`PROSECUTION HISTORY ESTOPPEL
`
`31.
`
`Plaintiff Duhn Oil is estopped from enforcing the ‘237 patent as alleged
`
`because of statements, representations, and admissions made, and/or actions taken during
`
`the prosecution of the application that issued as the ‘237 patent, and because of statements,
`
`representations, and/or admissions made, and/or actions taken during the prosecution of
`
`related continuation/divisional applications.
`
`EQUITABLE ESTOPPEL
`
`32.
`
`Plaintiff’s claims are barred, in whole or in part, by the doctrine of equitable
`
`estoppel. For example, Plaintiff Seaboard should be estopped from asserting that
`
`Cameron’s “single load path” products infringe the ‘237 patent, due to its predecessor in
`
`interest Duhn Oil’s ‘925 patent litigation positions that defined the invention as limited to
`
`“dual load path.” Duhn Oil’s litigation positions caused Cameron to change its running
`
`procedures and continue marketing its wellhead assemblies as “single load path” products,
`
`
`
`
`
`
`
`-8-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 10 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 9 of 26
`
`
`which Seaboard now belatedly asserts is its proprietary design. Seaboard through its
`
`predecessor’s misleading conduct reasonably led Cameron to infer that it did not intend to
`
`pursue infringement claims against Cameron’s “single load path” products. Cameron relied
`
`on Seaboard’s misleading conduct, and prejudice would result from such reliance if
`
`Seaboard is not estopped from asserting that Cameron’s “single load path” products
`
`infringe the ‘237 patent.
`
`UNCLEAN HANDS
`
`33.
`
`Plaintiff’s claims are barred, in whole or in part, by the doctrine of unclean
`
`hands.
`
`FAILURE TO MARK – LIMITATION ON DAMAGES
`
`34.
`
`Plaintiff is precluded from recovering any alleged damages for any patent
`
`infringement occurring prior to the filing date of its Complaint because Plaintiff has failed
`
`to plead, and cannot prove, compliance with the marking requirements of 35 U.S.C. § 287,
`
`which provides that in the event of such a failure to mark “no damages shall be recovered
`
`by the patentee in any action for infringement, except on proof that the infringer was
`
`notified of the infringement [which includes the filing of an action for infringement] and
`
`continued to infringe thereafter, in which event damages may be recovered only for
`
`infringement occurring after such notice.”
`
`STANDING
`
`35.
`
`To the extent that inventorship of the ‘237 patent is corrected, Seaboard
`
`lacks appropriate standing to maintain this action under 35 U.S.C. § 281 and has failed to
`
`join and cannot join all necessary parties and owners of the ‘237 patent. Thus, Seaboard
`
`lacks jurisdiction.
`
`
`
`
`
`
`
`-9-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 11 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 10 of 26
`
`
`EXCEPTIONAL CASE
`
`36.
`
`Defendant Cameron asserts that this is an exceptional case such that Plaintiff
`
`should be required to pay Defendant’s reasonable attorney fees in accordance with 35
`
`U.S.C. § 285.
`
`PRAYER FOR RELIEF
`
`Defendant Cameron respectfully requests a judgment from this Court including the
`
`following:
`
`a.
`
`a finding in favor of Cameron as to each and every allegation and
`
`cause of action asserted against it in Plaintiff’s Complaint;
`
`b.
`
`a finding in favor of Cameron as to each of its above-pleaded
`
`objections, defenses, and limitations on Plaintiff’s recover;
`
`c.
`
`a finding that this case is exceptional, and ordering Plaintiff to pay
`
`Cameron’s reasonable attorney fees in accordance with 35 U.S.C. § 285;
`
`d.
`
`e.
`
`an order dismissing Plaintiff’s Complaint; and
`
`an order awarding Cameron costs and all such other and further relief
`
`as is available, at law or in equity, that this Court deems just, equitable, and proper
`
`under the circumstances.
`
`
`
`
`
`
`
`-10-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 12 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 11 of 26
`
`
`CAMERON’S SECOND AMENDED
`COUNTERCLAIMS AGAINST SEABOARD
`
`1.
`
`Pursuant to Rule 13 of the Federal Rules of Civil Procedure, Cameron files
`
`the following Second Amended Counterclaims against Seaboard.
`
`I.
`INTRODUCTION
`
`2.
`
`The following counterclaims brought by Defendant/Counter-Plaintiff
`
`Cameron against Plaintiff/Counter-Defendant Seaboard seek a declaratory judgment as to
`
`the noninfringement, invalidity, and unenforceability of the ‘237 patent.
`
` These
`
`counterclaims also seek a declaratory judgment as to the unenforceability of the ‘407, ‘020,
`
`‘944, ‘322, ‘393, and ‘433 patents.
`
`II.
`PARTIES
`
`3.
`
`Defendant/Counter-Plaintiff Cameron
`
`is a corporation organized and
`
`existing under the laws of the State of Delaware. Its principal place of business is located at
`
`1333 West Loop South, Suite 1700, Houston, Texas 77027.
`
`4.
`
`Plaintiff/Counter-Defendant Seaboard asserts in its Complaint that it is a
`
`Texas corporation with a place of business at 3912 Gilmore Avenue, Bakersfield,
`
`California.
`
`III.
`JURISDICTION AND VENUE
`
`5.
`
`These counterclaims state claims arising under the patent laws of the United
`
`States, 35 U.S.C. § 282. Defendant/Counter-Plaintiff Cameron seeks a declaratory
`
`judgment, under 28 U.S.C. § 2201, regarding noninfringement,
`
`invalidity, and
`
`unenforceability issues concerning the ‘237 patent, of which Seaboard has asserted to be the
`
`
`
`
`
`
`
`-11-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 13 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 12 of 26
`
`
`owner. Cameron also seeks a declaratory judgment, under 28 U.S.C. § 2201, regarding
`
`unenforceability issues concerning the ‘407, ‘020, ‘944, ‘322, ‘393, and ‘433 patents, of
`
`which Plaintiff/Counter-Defendant Seaboard is identified as the assignee. This Court has
`
`original and exclusive subject matter jurisdiction over these claims under 28 U.S.C. §§
`
`1331 and 1338(a).
`
`6.
`
`Plaintiff/Counter-Defendant Seaboard is subject to personal jurisdiction in
`
`this action because it alleges that it resides in this judicial District and has sufficient
`
`minimum contacts with the State of California to subject it to specific personal jurisdiction
`
`through forum contacts that are directly related to causes of action asserted by Cameron in
`
`8,333,237 these counterclaims.
`
`7.
`
`Venue for these counterclaims is proper in this judicial District under 28
`
`U.S.C. §§ 1391(b)(1), (c), and 1400(b) because Plaintiff/Counter-Defendant Seaboard
`
`alleges that it resides in this judicial district. Cameron files these claims in this District as
`
`counterclaims and as such does not assert that this District is the most convenient district
`
`for the parties, witnesses, and the interest of justice under 28 U.S.C. § 1404(a).
`
`IV.
`CLAIMS FOR RELIEF
`
`COUNTERCLAIM COUNT I
`DECLARATORY JUDGMENT REGARDING
`UNITED STATES PATENT NO. 8,333,237
`
`8.
`
`United States Patent No. 8,333,237, entitled “Wellhead Isolation Tool and
`
`Wellhead Assembly Incorporating the Same” was issued on December 18, 2012.
`
`Plaintiff/Counter-Defendant Seaboard has asserted that it is the owner of the ‘237 patent. A
`
`copy of the ‘237 patent is attached to the Plaintiff’s Complaint.
`
`
`
`
`
`
`
`-12-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 14 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 13 of 26
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`9.
`
`An actual controversy exists between Defendant/Counter-Plaintiff Cameron
`
`and Plaintiff/Counter-Defendant Seaboard as to the noninfringement, invalidity, and
`
`unenforceability of the ‘237 patent. Plaintiff/Counter-Defendant Seaboard has created a
`
`reasonable apprehension on the part of Cameron that it will continue to be subject to this
`
`ongoing infringement suit if it continues to sell its accused products.
`
`NON-INFRINGEMENT
`
`10.
`
`Defendant/Counter-Plaintiff Cameron’s accused products do not infringe
`
`any valid claims of the ‘237 patent. Cameron seeks a declaratory judgment that its products
`
`do not infringe any valid claims of the ‘237 patent.
`
`INVALIDITY
`
`11.
`
`The claims of the ‘237 patent are invalid for failure to meet the conditions
`
`for patentability specified in 35 U.S.C. Sections 102 and 103, and for failure to comply with
`
`the requirements of 35 U.S.C. Section 112. Cameron seeks a declaratory judgment of
`
`invalidity for all claims of the ‘237 patent.
`
`UNENFORCEABILITY
`PROSECUTION LACHES
`
`16.
`
`The ‘237 patent is unenforceable due to the equitable defense of prosecution
`
`laches arising from Seaboard and its predecessor in interest Duhn Oil’s unreasonable and
`
`unexplained delay in prosecution of the applications that led to the issuance of the ‘237
`
`patent. The ‘237 patent issued on December 18, 2012, from a string of ten applications
`
`over a period of almost eleven years dating back to an initial provisional application filed
`
`on February 19, 2002. The equitable defense of “prosecution laches” renders a patent
`
`unenforceable when unreasonable and unexplained delays in the prosecution of a patent
`
`causes prejudice to a defendant, such as when the delayed issuance of a patent otherwise
`
`
`
`
`
`
`
`-13-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 15 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 14 of 26
`
`
`could be enforced to remove a product from the market that existed prior to the patent
`
`applicant’s delayed filing of the patent claims at issue.
`
`17.
`
`The ‘237 patent claims were first filed on May 24, 2012. The ‘237 patent
`
`claims directed to a “single load path” configuration were unreasonably delayed for over
`
`six and a half years after Seaboard’s predecessor in interest Duhn Oil had disclaimed the
`
`Figure 2 “single load path” embodiment and defined the invention as limited to a “dual load
`
`path” design. Duhn Oil amended its application claims and narrowed its invention to a
`
`“dual load path” design by adding the disputed “wherein” clause on November 15, 2004 in
`
`the parent ‘925 patent application. Duhn Oil then delayed over six and a half years to then
`
`broaden its patent claims to purport to cover a “single load path” design, thereby attempting
`
`to recapture subject matter that Duhn Oil had previously disclaimed.
`
`18.
`
`Duhn Oil’s unreasonable delay could now result in the removal of
`
`Cameron’s products from the marketplace which Cameron has been selling for ten years
`
`dating back to 2003. The prejudice to Cameron is severe, and compounded by Duhn Oil’s
`
`positions taken in the ‘925 patent litigation, which Cameron relied upon to modify its
`
`products, change its running procedures, and continue marketing the products with the
`
`understanding that they would be free from charges of patent infringement as long as the
`
`tubing head lockscrews were not run in. Cameron’s ongoing sales, and management of sold
`
`products, may now be subject to the newly issued ‘237 patent resulting from unreasonably
`
`delayed “single load path” claims. Furthermore, if Cameron had been faced with these
`
`newly asserted ‘237 “single load path” claims sooner, Cameron could have and would have
`
`shifted to a different design rather than devoting its resources to the running procedure
`
`
`
`
`
`
`
`-14-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 16 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 15 of 26
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`
`
`
`
`change and the expenses associated with the tracking of the products to ensure that its
`
`customers were not running in the lockscrews.
`
`19.
`
`The ‘237 patent claims should be held unenforceable under the equitable
`
`defense of prosecution laches due to Seaboard’s unreasonable and unexplained delay in
`
`submitting its “single load path” claims, which have severely prejudiced Cameron because
`
`Cameron relied upon Duhn Oil’s ‘925 patent litigation positions that defined the invention
`
`as limited to “dual load path,” which caused Cameron to change its running procedures and
`
`continue marketing its wellhead assemblies as “single load path” products, which Seaboard
`
`now belatedly asserts is its proprietary design.
`
`UNENFORCEABILITY
`JUDICIAL ESTOPPEL
`
`20.
`
`The ‘237 patent is unenforceable due to the doctrine of judicial estoppel.
`
`For example, Plaintiff Seaboard should be estopped from asserting that Cameron’s “single
`
`load path” products infringe the ‘237 patent, due to its predecessor in interest Duhn Oil’s
`
`‘925 patent litigation positions that defined the invention as limited to “dual load path,”
`
`which caused Cameron to change its running procedures and continue marketing its
`
`wellhead assemblies as “single load path” products, which Seaboard now belatedly asserts
`
`is its proprietary design.
`
`UNENFORCEABILITY
`INEQUITABLE CONDUCT
`
`21.
`
`The ‘237 patent is unenforceable due to the actions and/or omissions of
`
`Plaintiff/Counter-Defendant Seaboard, its predecessor in interest Duhn Oil, and their agents
`
`(collectively “Applicants”), constituting inequitable conduct during the prosecution of the
`
`application that issued as the ‘237 patent, including the string of ten applications over a
`
`period of almost eleven years dating back to an initial provisional application filed on
`
`-15-
`
`Defendant Cameron’s Second
`Amended Answer and Counterclaims
`
`
`
`Case 3:17-cv-05659-WHA Document 150-2 Filed 07/06/18 Page 17 of 27
`Case 1:13-cv-00281-MLH-SKO Document 48 Filed 08/13/13 Page 16 of 26
`
`
`February 19, 2002. See paragraphs 32-44 at pages 19-24 below for the inequitable conduct
`
`from the string of applications which infects the ‘237 patent.
`
`22.
`
`The ‘237 patent is unenforceable because Seaboard, including the named
`
`inventors Rex Duhn and Bob Meek, and the prosecution attorney Constantine Marantidis,
`
`intentionally did not include Mr. John Rogers as an inventor of the ‘237 patent. Mr. Rogers
`
`conceived of and materially contributed to the subject matter claimed in the ‘237 patent.
`
`For example, Mr. Rogers conceived of and contributed the concepts of using a frac
`
`mandrel, sealing the frac mandrel in the tubing head, retaining the frac mandrel through the
`
`use of the tubing head lockscrews, and providing a frac mandrel having an inner diameter at
`
`least as large as the inner diameter of production tubular it would be in communication
`
`with, among others. Mr. Rogers communicated these concepts to Mr. Duhn and Mr. Meek,
`
`as was confirmed by Mr. Duhn’s own courtroom testimony during the ‘925 patent
`
`litigation.
`
`23.
`
`Notwithstanding Mr. Duhn and Mr. Meek’s knowledge that Mr. Rogers was
`
`a co-inventor of the subject matter found in the claims of the ‘237 patent, Mr. Duhn and Mr.
`
`Meek declared with deceptive intent to the Patent Office that they were the original and
`
`only inventors of the subject matter claimed in the ‘237 patent.
`
`24.
`
`If appropriate under 35 U.S.C. § 256, Mr. John Rogers should be added as a
`
`joint inventor to the ‘237 patent because he contributed to the conception of subject matter
`
`claimed in the ‘237 patent.
`
`
`
`
`
`
`
`-16-
`
`Defendant Cameron’s Second