DCT

5:26-cv-03560

Sedron Tech LLC v. Developpement Solugen Inc

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Amended Complaint
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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 4:26-cv-03560, N.D. Cal., 10/06/2026
  • Venue Allegations: Venue is alleged to be proper based on Defendant being a non-U.S. resident and also on Defendant having a regular and established place of business in the district from which it allegedly makes, uses, and sells the accused products.
  • Core Dispute: Plaintiff alleges that Defendant’s "Azogen" line of organic liquid fertilizers infringes patents related to methods for producing high-concentration, organic-certified liquid fertilizers from animal waste.
  • Technical Context: The technology addresses a long-standing challenge in organic agriculture: creating a fertilizer with high levels of plant-available nitrogen that still complies with USDA organic certification standards.
  • Key Procedural History: The complaint notes that the '528 Patent underwent an Ex Parte Reexamination requested by a third party in 2022. In February 2024, the U.S. Patent and Trademark Office cancelled one claim, confirmed the patentability of several others, and added new claims, potentially strengthening the patent’s presumption of validity. The '318 Patent is a continuation of the '528 Patent and is subject to a terminal disclaimer. Plaintiff alleges it provided Defendant with notice of infringement of the '318 Patent prior to filing suit.

Case Timeline

Date Event
2011-07-21 Priority Date for '528 and '318 Patents
2021-01-12 U.S. Patent 10,889,528 Issued
2022-11-01 Ex Parte Reexamination of '528 Patent Requested (approx. date)
2023-05-02 U.S. Patent 11,639,318 Issued
2024-02-01 PTO Issues Reexamination Certificate for '528 Patent (approx. date)
2026-05-01 Plaintiff Notifies Defendant of '318 Patent Infringement
2026-10-06 First Amended Complaint Filed

II. Technology and Patent(s)-in-Suit Analysis

U.S. Patent No. 10,889,528 - "Organic Liquid Fertilizer"

Issued January 12, 2021

The Invention Explained

  • Problem Addressed: The patent's background section identifies a gap in the fertilizer market. Conventional synthetic fertilizers provide high, fast-releasing nitrogen but are prohibited in organic farming Compl. ¶19 Conversely, traditional organic fertilizers like manure or compost have low nitrogen content (often below 3%) that is released slowly, making it difficult to match a crop's peak nutrient demand Compl. ¶20 '528 Patent, col. 1:47-53 The stated need was for a fertilizer with high nitrogen content (exceeding 3%) that was derived from a biological source and contained fast-releasing nitrogen Compl. ¶21
  • The Patented Solution: The invention describes a process for creating a concentrated liquid fertilizer from an organic waste source, such as animal manure '528 Patent, col. 2:12-14 The process involves first removing suspended solids from the liquid organic waste to create a "liquid organic waste filtrate," then adding an acid, and finally performing an evaporation process to concentrate the liquid, resulting in a fertilizer with at least 4% ammoniacal nitrogen '528 Patent, col. 1:60-2:9 '528 Patent, abstract This process is illustrated in the patent's figures, which show the progression from raw organic waste through filtration and evaporation to a concentrated final product '528 Patent, Fig. 2
  • Technical Importance: This technology provided a method to produce a liquid fertilizer that combined the high, readily available nitrogen content of synthetic products with the organic sourcing required for USDA certification, a key objective for modern large-scale organic farming Compl. ¶22

Key Claims at a Glance

  • The complaint asserts at least independent claim 1 of the '528 Patent, which was amended during reexamination Compl. ¶29 Compl. ¶26
  • The essential elements of the amended claim 1 are:
    • An aqueous liquid fertilizer comprising at least 4% dissolved ammoniacal nitrogen derived from a plant or animal-sourced waste filtrate,
    • wherein the fertilizer meets the criteria for USDA organic certification under the National Organic Program.
  • The complaint does not explicitly reserve the right to assert dependent claims, though this is common practice.

U.S. Patent No. 11,639,318 - "Organic Liquid Fertilizer"

Issued May 2, 2023

The Invention Explained

  • Problem Addressed: As a continuation of the '528 Patent, the '318 Patent addresses the same technical problem: the need for a high-nitrogen, fast-releasing fertilizer suitable for organic agriculture Compl. ¶33 '318 Patent, col. 1:36-54
  • The Patented Solution: The '318 Patent shares a common specification with the '528 Patent and describes the same fundamental process of concentrating ammoniacal nitrogen from an organic waste source through filtration and evaporation '318 Patent, abstract '318 Patent, col. 2:2-19
  • Technical Importance: The invention's importance is identical to that described for the '528 Patent, aiming to bridge the performance gap between synthetic and organic fertilizers.

Key Claims at a Glance

  • The complaint asserts at least independent claim 1 of the '318 Patent Compl. ¶43
  • The essential elements of claim 1 are:
    • An aqueous liquid fertilizer comprising at least 4% dissolved ammoniacal nitrogen derived from a plant or animal-sourced waste.
  • The complaint does not explicitly reserve the right to assert dependent claims.

III. The Accused Instrumentality

Product Identification

The accused products are liquid nitrogen fertilizers sold by Solugen under the brand name "Azogen," available in various formulations such as Azogen 5-0-0, Azogen 7-0-0, and Azogen Sync 8-0-0 Compl. ¶3

Functionality and Market Context

The Azogen products are marketed as liquid fertilizers with "high ammoniacal nitrogen" derived from organic sources Compl. ¶3 The complaint alleges these products are certified by the Organic Materials Review Institute ("OMRI"), confirming they contain above 3% ammoniacal nitrogen and are suitable for organic farming Compl. ¶3 Plaintiff's allegations center on the Azogen 5-0-0 formulation, which is advertised as a "100% water-soluble ammoniacal nitrogen fertilizer" derived from manure and having a "Guaranteed Analysis" of 5% ammoniacal nitrogen Compl. ¶30 The complaint includes a screenshot of the Azogen 5-0-0 technical data sheet showing its guaranteed analysis Compl. p. 8 It is positioned in the market as a high-performance fertilizer for organic growers and is allegedly sold throughout the United States Compl. ¶¶4, 10

IV. Analysis of Infringement Allegations

’528 Patent Infringement Allegations

Claim Element (from Independent Claim 1, as amended) Alleged Infringing Functionality Complaint Citation Patent Citation
An aqueous liquid fertilizer... Azogen is described on its technical sheet as a "liquid, bio-based fertilizer" Compl. p. 8 ¶30 col. 2:62-63
comprising at least 4% dissolved ammoniacal nitrogen... The Azogen 5-0-0 technical sheet shows a "Guaranteed Analysis" of 5% ammoniacal nitrogen Compl. p. 8 The complaint alleges this nitrogen is dissolved, citing marketing materials that describe the product as "100% water-soluble" and having "No suspended matter" Compl. p. 9 ¶30 col. 2:19-21
derived from a plant or animal-sourced waste filtrate, Azogen is described as "Derived from manure" Compl. p. 10 The complaint alleges Solugen's process, which reportedly involves separating liquid and solid fractions of hog manure using a centrifuge, creates a "waste filtrate" Compl. p. 11 ¶30 col. 7:64-67
wherein the fertilizer meets the criteria for USDA organic certification under the National Organic Program. The complaint alleges that because Azogen is an "OMRI Listed fertilizer," it is represented as being certifiable under the USDA National Organic Program (NOP) Compl. p. 11 A screenshot of the OMRI certificate for Azogen is provided as evidence Compl. p. 11 ¶30 col. 8:37-51

’318 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
An aqueous liquid fertilizer... Azogen is described on its technical sheet as a "liquid, bio-based fertilizer" Compl. p. 14 ¶44 col. 2:62-63
comprising at least 4% dissolved ammoniacal nitrogen... The Azogen 5-0-0 technical sheet shows a "Guaranteed Analysis" of 5% ammoniacal nitrogen Compl. p. 15 The complaint again points to marketing claims that the product is "100% water-soluble" to support the "dissolved" limitation Compl. p. 16 ¶44 col. 7:1-4
derived from a plant or animal-sourced waste. The accused product is explicitly marketed as "Derived from manure," an animal-sourced waste Compl. p. 16 ¶44 col. 2:12-14

Identified Points of Contention

  • Technical Questions: A potential technical dispute for the '528 Patent is whether the Defendant's process, alleged to use a centrifuge to separate manure components, constitutes the creation of a "waste filtrate" as contemplated by the patent. The patent describes filtration in detail (e.g., '528 Patent, col. 4:3-16), and the court may have to determine if centrifugation is technically equivalent to the filtration methods disclosed.
  • Scope Questions: For the '528 Patent, a legal question may arise regarding the claim limitation "meets the criteria for USDA organic certification." The complaint uses the product's "OMRI Listed" status as proof. A potential point of contention is whether being listed by a private entity (OMRI) is legally and factually synonymous with meeting the criteria of a federal regulatory program (USDA NOP) as required by the claim language.

V. Key Claim Terms for Construction

  • Term: "waste filtrate" '528 Patent, Claim 1

  • Context and Importance: This term defines the starting material for the claimed fertilizer composition. The infringement read for the '528 Patent hinges on whether the liquid separated from manure in the accused process qualifies as a "filtrate."

  • Intrinsic Evidence for Interpretation:

    • Evidence for a Broader Interpretation: The specification states that the "liquid organic waste filtrate" is what remains after "suspended solids have been removed" '528 Patent, col. 7:64-67 Plaintiff may argue this is a functional definition, covering any method of solid removal, including centrifugation.
    • Evidence for a Narrower Interpretation: The specification provides specific examples of filtration, including "nanofiltration," "reverse osmosis," and defines "suspended solids" with reference to a "270 Dalton membrane under 500 psi of pressure" '528 Patent, col. 8:23-26 Defendant may argue that "filtrate" implies a specific type of membrane-based filtration and that a liquid separated by other means is not a "filtrate" within the meaning of the patent.

  • Term: "dissolved" '528 and '318 Patents, Claim 1

  • Context and Importance: This term characterizes the state of the required ammoniacal nitrogen. The complaint uses marketing materials describing the product as "100% water-soluble" and having "No suspended matter" as evidence Compl. p. 9 Compl. p. 16

  • Intrinsic Evidence for Interpretation:

    • Evidence for a Broader Interpretation: Practitioners may focus on this term because its plain and ordinary meaning in the context of a liquid fertilizer would suggest that nitrogen in a clear, non-particulate solution is "dissolved." The patent itself contrasts "dissolved solids" with "suspended solids" '528 Patent, col. 8:23-34
    • Evidence for a Narrower Interpretation: The patent provides a highly technical definition for "dissolved solids" as "those particles that are smaller than the suspended solids, or those particles that will pass through a 270 Dalton membrane under 500 psi of pressure" '528 Patent, col. 8:30-34 A party could argue that the term "dissolved" for the nitrogen must be construed in light of this specific technical benchmark, potentially requiring more than just visual clarity as proof.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges inducement of infringement for both patents, stating that Solugen promotes, advertises, and provides instructions (e.g., technical sheets, website content) that encourage customers to use the Azogen products in an infringing manner Compl. ¶31 Compl. ¶45
  • Willful Infringement: Willfulness is alleged for both patents. For the '318 Patent, the allegation is based on alleged pre-suit knowledge via a notice letter sent on May 1, 2026 Compl. ¶46 For the '528 Patent, the complaint alleges Solugen was willfully blind, or at least had post-complaint knowledge, arguing that notice of the '318 Patent put Solugen on notice of the entire, closely related patent family Compl. ¶¶33-35

VII. Analyst’s Conclusion: Key Questions for the Case

This case appears to present several key questions for the court to resolve:

  1. A core issue will be one of claim construction: does the term "waste filtrate" in the '528 Patent, which is described in the specification with reference to specific filtration techniques, read on a liquid produced by the accused centrifugal separation process? The outcome may turn on whether the court adopts a broad, functional definition or a narrower, process-specific one.

  2. A second question is one of regulatory interpretation: for the '528 Patent, is being "OMRI Listed"—a certification from a private entity—legally and factually sufficient to meet the claim requirement of "meets the criteria for USDA organic certification," a federal standard?

  3. A final key question will address willfulness: did notice of infringement for the '318 Patent create an affirmative duty for the Defendant to investigate other patents in the same family, such that its continued sales could be found to be a willful infringement of the '528 Patent?