A.L.M. Holding Company et al. v. All States Materials Group Inc. (D. Mass. 25-cv-10458).

A.L.M. accused All States of infringing claims directed to paving additives that regulate the temperatures of the asphalt.  All States counterclaimed for declaratory judgments of noninfringement and invalidity as to each patent.  All States also sought to have the case stayed pending resolution of a pair of suits filed by A.L.M. in Delaware against Zydex Industries Private Limited, the India-based manufacturer of the additives and Zydex Inc., the importer, from whom All State obtains the accused additives.  All State argued that those cases should proceed under the “customer suit exception,” by which suits against manufacturers are given precedent over suits against customers.

Judge Mastroianni denied the stay request.  He noted that, while the Delaware case involved only claims of indirect infringement, there was overlap in that A.L.M. would need to prove direct infringement in the Delaware case, the claims against All States involved more than their merely being resellers of the accused products – the complaint alleged that All States took affirmative actions, preparing and compacting asphalt using the additives that were alleged to result in direct infringement of the method or process claims that the manufacturer was not alleged to directly infringe.  He further found that the delay that a stay would require would prejudice A.L.M. in that the patents expire in three years, meaning that the delay could preclude A.L.M. from seeking the injunctive relief that generally is available to a patentee.  This is exacerbated by All States’ refusal to agree to be bound by any injunctive relief granted in the Delaware cases.  Finally, he noted that All States had opted not to seek transfer and consolidation of the cases as an alternative to stay and suggesting that the motive behind the motion was not judicial efficiency but instead to stall the case until the patents expired   Judge Mastroianni determined that while a close call, the factors weighed slightly in favor of allowing the case to proceed.