ILNews

Indiana inventors tell Maurer students about challenging big business in federal court

Back to TopCommentsE-mailPrint

Speaking recently to a group of students at Indiana University Maurer School of Law, Lebanon inventor Larry Durkos and his son, Duane, told their story of battling the biggest giant in the bedding industry and winning.

The pair filed a patent infringement lawsuit against Missouri-based Leggett & Platt over a stapling machine invented by Larry Durkos. Their success hinged on two key elements: Durkos had the skill to write solid patents, and they had the luck of finding a law firm willing to take the case on contingency.

mattress-ibj-062413-15col.jpg Duane Durkos (left) and his father, Larry, put their business venture on hold and gave money back to investors while they pursued a patent infringement lawsuit against an industry giant. (IBJ File Photo)

“The process is good,” Durkos said, referring to the patent system. “In our case, it saved our lives. If we hadn’t had the patent, we would have been stepped on by Leggett & Platt and been a little grease spot in Boone County.”

Introducing the pair to the students, Mark Janis, director of the Center for Intellectual Property Research at Maurer, said the Durkoses’ story illustrates the way the patent system is supposed to work. When an inventor puts money and sweat behind a product and a company tries to rip off the idea, the patent provides protection.

“It really does show you,” Janis told the students, “how the work you do can make a difference.”

Writing the patents

The elder Durkos got the idea for the stapling machine while he and his wife were touring a bedding factory. When he saw the workers attaching the springs to the wood by hand, he immediately envisioned an automated device.

This is typical for Durkos. He described himself as right-brained and often having pictures of new inventions pop into his mind.

“That has been my whole life,” he said. “I have created things that people like.”

The first patent, from Durkos’ company Imaginal Systematic LLC, was issued for a stapler that was quite sophisticated and included a camera and trainable software. The stapler head would maneuver down through the twisted, zigzag-shaped wire springs and punch the staple into the targeted spot.

A short time later, Durkos noticed the box-spring market was changing. Bedding companies were trending toward the Leggett & Platt wire framework that straightened out the springs and molded them into a more angular configuration.

He realized he had to redesign the staple machine and secure new patents. The next device was actually less sophisticated than the original. Instead of a camera that could rotate, Durkos designed mechanical guides that gripped the wire and moved the stapler head into the proper location.

That guidance mechanism won the patent infringement case. As Imaginal Systematic’s attorney explained to the Federal Circuit Court of Appeals, without that component the entire machine would be worthless because the stapler would not be able to get into the right position.

When the time came to file the patents, Durkos picked up the phone and called his son’s former high school classmate, Tim Niednagel, partner at Faegre Baker Daniels LLP. After all, Durkos was the one who told Niednagel to become a patent attorney.

In the mid-1980s, Durkos was demonstrating his newest invention of a small, portable computer that was much like the laptops which came to market later. He invited Niednagel, then a senior electrical engineering major at Purdue University, to the presentation and afterward advised the young man to go into law.

Writing the patent application is a collaborative process between Durkos and Niednagel. The inventor researches and writes very detailed narratives while the attorney reviews the drafts and suggests revisions.

The day-to-day work would be “a lot more rewarding if there were a lot more clients like Larry,” Niednagel said.

Ironically, Durkos and his son approached Leggett & Platt just as they started work on the first stapling machine in the mid-1990s, asking if the company wanted to be a partner. The bed maker flatly replied it was impossible to invent such a device.

However, when the Durkoses unveiled the equipment at a trade show in 2002, Duane Durkos told the Maurer students, groups of Leggett & Platt representatives constantly walked around the display.

Later, the pair was in a factory in West Virginia and they saw Leggett & Platt’s new stapling machine that looked and functioned a lot like the one Larry Durkos had invented and patented.

Fighting the infringement

At that time, the patents on the second machine had not been issued and, Duane Durkos acknowledged, they were uncertain if Leggett & Platt was infringing. However, he started searching the Internet for a patent litigator.

When he stumbled across Electronics for Imaging Inc., a company that had won a patent lawsuit against Leggett & Platt, he called the general counsel and got the name of the attorney who represented EFI.

Eventually, Steve Hanle, partner at Sheppard Mullin Richter & Hampton LLP, took Imaginal Systematic as a client.

Very few patent infringement lawsuits go to court, according to Don Knebel, partner at Barnes & Thornburg LLP and senior adviser to the Center for Intellectual Property Research at IU Maurer. To litigate a patent dispute, each side must have at least $2 million to cover expenses and have attorneys who can explain complicated technology in terms that the average juror can understand.

Larry and Duane Durkos likely would not have had the funds to take the case to court. When they approached their investors for $250,000 to cover attorney fees, they raised $5,000.

However, they were saved when the law firm agreed to litigate the dispute on contingency. Sheppard Mullin saw the potential to be able to recoup its expenses from the royalties that would flow to Imaginal Systematic for the remaining nine years of the patents.

“It is typical that a couple of guys from Boone County will not be able to file a patent case because they won’t have the money to pay,” Larry Durkos said.

The case moved to court and in January 2012, the U.S. District Court for the Central District of California found Leggett & Platt was, indeed, infringing on the patents of Imaginal Systematic.

A jury was then convened to determine the damages. Larry and Duane Durkos had to fly to Los Angeles and testify during the weeklong hearing.

They followed their attorney’s instruction and put on coats and ties for their court appearances. Knebel said that as a trial strategy, he would probably have kept the pair from wearing ties. He said less-formal dress would have shown the jury they are inventors and possibly convinced the jury to increase the damage amount.

In the end, the jury awarded $5 million to Imaginal Systematic.

With the decision upheld on appeal, the District judge is now determining the royalties. These ongoing payments will come not from the number of machines sold but rather from the savings realized per box spring by using the automated staplers.

Since Leggett & Platt has been willfully infringing since the January 2012 ruling, the judge now has the option of enhancing whatever the royalty amount will be.

Doing some figuring on a spreadsheet, Larry Durkos calculated the savings over the life of the patents would top $100 million.

So much for being a grease spot in Boone County.•

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Am I the only one who sees that the City is essentially giving away the MSA site AND giving millions to build new buildings on the site when this site would be the perfect place for the Justice Complex? Across from City-County, check; keeping it centrally located, check, etc. It's my understanding that the GM site must be purchased by the City from Motors Liquidation Company. STOP WASTING WHAT WE ALREADY HAVE AND OUR TAX DOLLARS! The Ballard Administration has not been known for it's common sense...never voted for him and never will!

  2. This guy sounds like the classic molester/manipulator.

  3. Louis D. Brandeis was born in 1856. At 9 years of age it would have been 1865. The Brandeis family did not own slaves. My source Louis D. Brandeis: A Life, by Melvin L. Urofsky.

  4. My name is Matthew Lucas Major, I recently went through a jury trial in Bloomington , In. It was the week of Feb 19-21. Although I have been incarcerated since August 5, 2014. The reason I 'am writing to you sir is on the 21 of February the jury came in with a very excessive and wrongful verdict of guilty on 6 child molesting charges against my daughter who was 9 at the time I was accused. I also had 2 other Felonies one of Intimidation and 1 of Sexual Vicarious Gratification. Judge Marc Kellam on the second day of trial gave me a not guilty on those 2 felonies. The jury was sent out during that time and when brought back Judge Kellam told them to not concern themselves with the 2 Felonies that he ruled on them. They were told to not let evidence they had already heard influence there verdicts. I never in my life touched any child sexually and definitely not with my own daughter. When I was arrested Detective Shawn Karr told me I would be convicted guilty just on my daughters word even without evidence. That's just what happened. my public defender did me so wrong he never once proved to the court and jury all the lies the child told, and Jeremy Noel my public defender could of proven the lies easily. The stories in Serenity's depositions and Forensic interview changed and were not consistent as Prosecutor Darcie Fawcett claimed they were. Yet my attorney never mentioned that. The facts that the child accused me of full penetration in her vagina and rectum was proven lies. Doctor Roberta Hibbard of Riley hospital in Indianapolis confirmed Serenity's hymen intact, no scars, no tearing, no signs of rape to her. Yet my attorney didn't use that knowledge . the DNA was all in my favor. I tell you I will spend my entire life in prison going through rape and beatings etc. even Judge Kellam abused his authority by telling the jurors to listen and believe what the prosecutors side in evidence like my daughters testimony. In one interview with the detectives my daughter got flustered with her mom and said on camera " I'm saying what you told me to mom"!! Yet Mr. Noel said nor did anything to even resemble a defense attorney. Judge Kellam allowed edited version of a taped conversation between the child and her mother. Also Judge Kellam allowed the Prosecutor too bring in to my case a knife found under my seat, the knife wasn't part of my case. She was allowed by my attorney and the judge to put a huge picture of it on the screen and huge picture of my naked privates in a full courtroom and open court. Ms. Fawcett says to jury see how easy Mr. Major could reach the knife and cut his Childs throat. Even though I had no weapons charge against these cases. This gave the jurors prejudice thought against me thinking I threatened her with that knife and how scared she would of been knowing i could get it and kill her. On my sentencing court March 19, 2014 my public defender told Judge Kellam he wish to resign from being my attorney and wished for the court to give me outside council to file a error to trial or appeal. We were denied. Now after openly knowing my public defender don't want to represent me he has to. Well when as parents we make our kids clean a room when they really don't wish to, well the child will but don't mean she will do a good job, that's where I'm at with Mr. Noel. please dont ignore mine and my families pleas for your help . we have all the legal proof you could need to prove Im innocent. Please dont make my spend years in prison innocent when you can fix this wrong. Im not saying Im a perfect man or that I was a perfect dad to my 2 children none of us are. Ive made some bad choices in life and I paid for them. But I didnt ever touch or rape my daughter . I love my children with all my heart. And now through needing attention and a ex-wife who told my granny several times she wish she could put me in prison to get me out of their lives. Well my ex finally accomplished her goal. Sad part is she is destroying our daughter with all this horrific lies and things she taught my daughter to say. My daughter will need therapist to ever hope for a chance of a normal life after what she had done to her by her mom and their side of the family. My daughter told everyone even on stand she had a dream months before i supposedly molested her in this dream I was molesting her and when I finally did it matched her dream perfectly. She admitted to watching movies about little girls being molested and watching U-Tube videos about child molesting all before it happened supposedly to her. Doesn't that sound very unusual that a non molested 9 yr old would need to know so much about being molested? The only reason I could think a 9 year old would need so much information is to be prepared to know what to say and be able to say how it felt what took place etc.. So when questioned by authorities she would be prepared. And there again sir if a parent is pre grooming a 9 year old child she would need intimate details . Like telling her daughter about a couple moles on my private area. The child admitted to sneaking my cell and looking many many times at nudes of me and my girlfriend even one where my penis was entering my girlfriends vagina. In that picture my moles are obvious. Yet when prosecutor showed everyone in court my privates and pictures of the moles she said the only way the child would know about them is if she saw them for herself. My attorney once again said nothing about the pictures my child saw. Or could a ex-wife be able to describe my moles to help her case against getting rid of me? I beg you help me. This is my very existence. Ive lost everything , a good job, a wonderful girlfriend, my freedom, but worse thing Ive lost is my children. They were my reason to get up every morning and strive to be better. The wonderful bond I had with my Serenity is gone. After this I would be afraid to even hug her for fear of what next can they do to me. I'm not afraid to tell you I sit here in this cell and try to hold back my tears. Everyone knows you cant show weakness in prison. My life has already been threatened here at Wabash Valley Prison. After only 3 days of arrival. I was tricked into signing a waiver now Im in G Block General Population with 6 child molesting felony charges. Mrs. Hart as a 18 year old I almost died hooked to machines in hospital almost 1 month and now I know that fear was childish compared to this . I cant help but put emotions in this, after all Mrs. Hart Im human and God help Me I never been more afraid in my life. I didnt hurt my little girl I didnt touch her sexually. As much as it shreds me and fills my mind what Im facing I worry more about my mom and granny because of their great love for me mam they are suffering so deeply. I aint done this things but my loved ones suffering right along beside me and If you take my case you will be in essence freeing them also. I sent momma this letter and asked her to email it to you. I'm scared I have been done so unjustly by our legal system and I need you to fix this and give me freedom. I ask you please don't just ignore my pleas. Here in America its nice to be able to trust our legal justice system, well they destroyed my and my loved ones trust in our justice system . And I'm trusting in You !!! My entire family is suffering this nightmare with me. My 77 year old granny had a stroke and isn't doing so well. My single mother that raised 3 kids alone is dying from Lupus and since my arrest has stayed so sick and weary. Our lives torn to peices by a government I was taught I could trust in. my momma has tried so many innocent project and wrongfully accused and cant get anywhere. please please help me. A quote from the late Nelson Mandela: To be free is not merely to cast off ones chains, But to live in a way that respects and enhances The Freedom Of Others. I have Faith in you and your clinic to cast my chains off and give me freedom I do deserve as a wrongfully accused Man, son, brother, father, friend. Matthew Major DOC# 246179 Cause # : 53c02-1308-FA-000779 God Bless you. Please contact me with your decision so I know you made a life changing decision for me , just please at least write me so I know you care enough about your citizens to respond to cries for your help. You can speak openly with my mother Charlotte Spain (828) 476-0406: 71 Lakeview Dr. Canton, NC 28716 Thank You Matthew Major I know yall get thousands of request and inmates claiming innocence, and each person who are innocent deserve to have organizations like yours willing to fight for them and I give yall so much Thanks and I thank God everyday yall are out there caring enough to help free the innocents. Since discovering firsthand how easily lives and families can be destroyed by Poor Defense attorneys not doing their job . And Prosecutors allowed to do as they please in court

  5. Frankly, it is tragic that you are even considering going to an expensive, unaccredited "law school." It is extremely difficult to get a job with a degree from a real school. If you are going to make the investment of time, money, and tears into law school, it should not be to a place that won't actually enable you to practice law when you graduate.

ADVERTISEMENT