Opinion ID: 222928
Heading Depth: 2
Heading Rank: 1

Heading: Unity Project Business Proposal

Text: Plaintiff Nihon Rufuto, a Japanese company, imports medical equipment from the United States and Europe. In early 2002, Nihon Rufuto approached Defendant Nidek, an Alabama corporation, about designing and developing an oxygen concentrator. Nihon Rufuto wanted an oxygen concentrator similar to the Mark 6 oxygen concentrator that Nidek had developed for Koike Medical for the Japanese market. However, Nihon Rufuto wanted its oxygen concentrator to be smaller and quieter, with less power consumption. The parties referred to the project as the “Unity Project.” On April 19, 2002, Nidek sent Nihon Rufuto a business proposal that outlined the Unity Project, but noted that each company’s contributions were still “to be discussed.” Nihon Rufuto’s contributions would include, inter alia, funding the development costs, defining product specifications and coordinating third party testing and regulatory approvals (with Japan’s Ministry of Health). Nidek’s contributions would include, inter alia, agreeing with Nihon Rufuto’s product specifications and project goals, preparing quality measures with Nihon Rufuto’s 2 agreement, contracting with a noise consultant and an industrial design firm and working with Nihon Rufuto’s engineers to improve system performance. The business proposal contained a list of specifications and other product requirements. The specifications included an oxygen flow of three liters per minute; an oxygen concentration of greater than ninety percent;1 a weight of less than 32 kilograms; a noise level of 37 A-weighted decibels in an ordinary room and 32 A-weighted decibels in an anechoic chamber; power of less than 260 watts “at 100v 50Hz” and less than 300 watts “at 100v 60Hz”; and meeting standard “IEC 601-1 or applicable JQA standard.” The concentrator would have four casters for mobility and an outlet pressure of 5 Psig. The molecular sieve would be “Oxy Sieve 7 or MDX.” The compressor would be a “Thomas 32 stroke.” The cabinet construction and system alarm, however, were still “[t]o be discussed.”