SCA Hygiene Products Aktiebolag v. First Quality Baby Products, LLC

SCA Hygiene Products Aktiebolag (SCA) (plaintiff) and First Quality Baby Products, LLC (First Quality) (defendant) were competitors in the incontinence market. In October 2003, SCA sent First Quality a letter alleging infringement of a patent (the ‘646 patent) held by SCA. In November 2003, First Quality responded by claiming that the ‘646 patent was invalid. This marked the end of correspondence between the parties for a period of several years. In 2004, SCA requested reexamination of the patent in light of another existing patent. The United States Patent and Trademark Office (PTO) commenced reexamination proceedings in 2007 and confirmed the patentability of all claims in the ‘646 patent that same year. More than three years later, in August 2010, SCA brought an infringement action against First Quality, which had invested significant capital in the expansion of its incontinence-product line in the meantime. First Quality moved for summary judgment on the grounds of laches and equitable estoppel. The federal district court granted the motion. SCA appealed to the United States Court of Appeals for the Federal Circuit. A panel of the court affirmed the grant of summary judgment with respect to laches but reversed on the issue of equitable estoppel. SCA later filed a petition for rehearing in light of a Supreme Court decision—Petrella v. Metro-Goldwyn-Mayer, 572 U.S. 663 (2014)—in which the defense of laches was disallowed to copyright defendants. The petition was granted, and the court convened en banc.