Canada’s Federal Court has dismissed Seismotech’s motion for a Norwich order against Apple Canada, effectively ruling out the necessity for iPhone maker to disclose consumer information in an ongoing patent infringement case (via @mgeist).
A Norwich order is a specific type of court order that compels a third party, who is not directly involved in the litigation, to disclose certain information or documents.
The case, presided over by Justice Sébastien Grammond, involved Seismotech IP Holdings Inc. and Seismotech Safety Systems Inc., who sought a Norwich order to compel Apple Canada to release the names and addresses of consumers who downloaded apps for intelligent thermostats from the App Store. Seismotech alleged these devices infringed on their patents.
Justice Grammond dismissed the motion on two critical grounds. Firstly, Seismotech failed to establish a bona fide claim, as the allegations of patent infringement lacked sufficient detail and supportive evidence. The judge highlighted the importance of a clear and precise claim in patent infringement cases, noting the absence of evidence beyond the plaintiffs’ subjective belief of infringement.
Secondly, the motion’s dismissal was attributed to the potential public interest harm. The judge recognized that individual consumers, targeted as defendants, would be ill-equipped to defend against such complex patent litigation. The nature of the technology and the high costs associated with patent litigation significantly impair the average consumer’s ability to participate meaningfully in their defense.
Furthermore, the court underscored that granting the Norwich order would likely result in unjust pressure on defendants to settle irrespective of the case’s merits or lead to numerous default judgments against non-responsive defendants. This scenario was deemed contrary to the public interest, as it would potentially deny defendants access to justice.
“Seismotech claims damages and an accounting of profits from each individual defendant, the “profits” being the savings made by each defendant on their public utility bills by using the allegedly infringing technology,” claimed the company. Apple essentially is defending itself against a company who’s claiming its patents were infringed upon and wanted customer identities.
As a result of the ruling, Seismotech is responsible for paying costs of $8,000 to Apple Canada and $4,000 to Canadian thermostat maker Ecobee, another defendant in the case.
