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3D4Medical Ltd. v. Orca Health, Inc.

United States District Court, S.D. California

July 17, 2017

3D4MEDICAL LIMITED, an Irish corporation, and 3D4MEDICAL.COM LLC, a Nevada corporation, Plaintiffs,
v.
ORCA HEALTH, INC., a Delaware corporation, Defendant.

          ORDER GRANTING MOTION TO STAY

          Hon. Dana M. Sabraw United States District Judge.

         Pending before the Court is Defendant Orca Health, Inc.'s (“Orca Health”) Motion to Stay pursuant to the first-to-file rule. Plaintiffs 3D4Medical Limited and 3D4Medical.com LLC (collectively “3D4Medical”)[1] filed an opposition to the motion, and Orca Health filed a reply. For the reasons discussed below, the motion is granted.

         I. BACKGROUND

         A. Utah Action

         Orca Health is a Delaware corporation that develops patient education software applications (“apps”). One of Orca Health's apps include Orca Care, originally known as “OrcaMD, ” which allows physicians to educate their patients about their diagnosis and treatment options by using an interactive three-dimensional model of the human anatomy.

         In July 2014, Orca Health employed Jared Huish as the Vice President of Business Development. Huish had access to Orca Health's confidential and proprietary information regarding Orca Care.[2] Beginning in 2015, Huish allegedly disclosed such information to 3D4Medical, a corporation that also develops patient education apps. Subsequently, Huish left Orca Health and joined 3D4Medical. Orca Health alleges 3D4Medical acquired and used confidential and proprietary information regarding Orca Care to develop competing apps, Complete Ortho and Complete Ortho Pro.

         Orca Health also alleges 3D4Medical has developed other apps, including Complete Anatomy, Spine Pro III, and Essential Skeleton 4, that allows users to visualize, manipulate personalize, and modify anatomical elements in a manner that infringes the claims of its U.S. Patent No. 8, 908, 943. Orca Health contends the fundamental purpose, interface, and capabilities of 3D4Medical's apps are embodied by the issued claims of the '943 patent.

         On January 3, 2017, Orca Health filed suit against 3D4Medical Limited, 3D4Medical.com LLC, 3D4Medical, Inc., and Huish in the U.S. District Court for the District of Utah. In the first amended complaint, Orca Health alleges the following causes of action: (1) misappropriation of trade secrets, Utah Code § 13-24-1 et seq., (2) violation of the Defend Trade Secrets Act (“DTSA”), 18 U.S.C. § 1831 et seq., (3) interference with economic relations, (4) breach of fiduciary duty, (5) breach of contract, (6) interference with contract, (7) unjust enrichment, (8) unfair competition, 15 U.S.C. § 1125, (9) patent infringement, (10) unfair competition, Utah Code § 13-5A-101 et seq., and (11) civil conspiracy.[3] On March 21, 2017, 3D4Medical Limited and 3D4Medical, Inc. filed a motion to transfer the Utah action to this Court. That motion is currently pending.

         B. California Action

         Like Orca Health, 3D4Medical develops patient education apps that allow users to view, observe, and explore three-dimensional representation of the human anatomy. Some of 3D4Medical's apps include the Heart Pro and Skeleton System Pro. 3D4Medical contends “[t]hese proprietary works are protected by U.S. copyright registrations.”[4] (Mem. of P. & A. in Opp'n to Mot. at 12.)

         3D4Medical alleges Orca Health has released several apps, such as Heart Decide and Orca Care, which copy several distinctive and original features of its apps; thereby infringing its copyrights. Specifically, 3D4Medical argues Orca Heath copied several features of its apps, including the display of blue pushpins to designate features of organs.

         On February 17, 2017, approximately 45 days after the commencement of the Utah action, 3D4Medical filed the present action against Orca Health. In the complaint, 3D4Medical alleges the following causes of action: (1) copyright infringement, (2) trade dress infringement in violation of the Lanham Act, 15 U.S.C. § 1125(a)(1)(A), (3) unfair competition, Cal. Bus. & Prof. Code § 1700 et seq., and (4) breach of contract. On April 18, 2017, Orca Health filed a motion to stay proceedings pending the resolution of the motion to transfer in the Utah action.

         II.

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