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

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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.•

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  1. No second amendment, pro life, pro traditional marriage, reagan or trump tshirts will be sold either. And you cannot draw Mohammed even in your own notebook. And you must wear a helmet at all times while at the fair. And no lawyer jokes can be told except in the designated protest area. And next year no crucifixes, since they are uber offensive to all but Catholics. Have a nice bland day here in the Lego movie. Remember ... Everything is awesome comrades.

  2. Thank you for this post . I just bought a LG External DVD It came with Cyber pwr 2 go . It would not play on Lenovo Idea pad w/8.1 . Your recommended free VLC worked great .

  3. All these sites putting up all the crap they do making Brent Look like A Monster like he's not a good person . First off th fight actually started not because of Brent but because of one of his friends then when the fight popped off his friend ran like a coward which left Brent to fend for himself .It IS NOT a crime to defend yourself 3 of them and 1 of him . just so happened he was a better fighter. I'm Brent s wife so I know him personally and up close . He's a very caring kind loving man . He's not abusive in any way . He is a loving father and really shouldn't be where he is not for self defense . Now because of one of his stupid friends trying to show off and turning out to be nothing but a coward and leaving Brent to be jumped by 3 men not only is Brent suffering but Me his wife , his kids abd step kidshis mom and brother his family is left to live without him abd suffering in more ways then one . that man was and still is my smile ....he's the one real thing I've ever had in my life .....f@#@ You Lafayette court system . Learn to do your jobs right he maybe should have gotten that year for misdemeanor battery but that s it . not one person can stand to me and tell me if u we're in a fight facing 3 men and u just by yourself u wouldn't fight back that you wouldn't do everything u could to walk away to ur family ur kids That's what Brent is guilty of trying to defend himself against 3 men he wanted to go home tohisfamily worse then they did he just happened to be a better fighter and he got the best of th others . what would you do ? Stand there lay there and be stomped and beaten or would u give it everything u got and fight back ? I'd of done the same only I'm so smallid of probably shot or stabbed or picked up something to use as a weapon . if it was me or them I'd do everything I could to make sure I was going to live that I would make it hone to see my kids and husband . I Love You Brent Anthony Forever & Always .....Soul 1 baby

  4. Good points, although this man did have a dog in the legal fight as that it was his mother on trial ... and he a dependent. As for parking spaces, handicap spots for pregnant women sure makes sense to me ... er, I mean pregnant men or women. (Please, I meant to include pregnant men the first time, not Room 101 again, please not Room 101 again. I love BB)

  5. I have no doubt that the ADA and related laws provide that many disabilities must be addressed. The question, however, is "by whom?" Many people get dealt bad cards by life. Some are deaf. Some are blind. Some are crippled. Why is it the business of the state to "collectivize" these problems and to force those who are NOT so afflicted to pay for those who are? The fact that this litigant was a mere spectator and not a party is chilling. What happens when somebody who speaks only East Bazurkistanish wants a translator so that he can "understand" the proceedings in a case in which he has NO interest? Do I and all other taxpayers have to cough up? It would seem so. ADA should be amended to provide a simple rule: "Your handicap, YOUR problem". This would apply particularly to handicapped parking spaces, where it seems that if the "handicap" is an ingrown toenail, the government comes rushing in to assist the poor downtrodden victim. I would grant wounded vets (IED victims come to mind in particular) a pass on this.. but others? Nope.

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