District Court Excludes Plaintiff's Infringement Expert for Conflict of Interest

July 29, 2015

Mobile Telecommunications Technologies, LLC ("Mobile") filed a patent infringement action against LG Electronics Mobilecomm U.S.A. ("LG"). As trial approached, LG filed a motion to disqualify Mobile's infringement expert, Dr. Bims, on the grounds of conflict of interest arising from his retention by LG to serve as its expert in connection with two ITC proceedings in 2011-2012.

LG asserted that the ITC proceedings related to the same products accused by Mobile in this case. Mobile responded by arguing that Dr. Bims' contract with LG expired in February 2015, before his retention by Mobile in March 2015 and that the subject of his work during the ITC proceedings did not relate to his current work for Mobile in this case.

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District Court Stays Case Pending Petition for Writ Certiorari to the United States Supreme Court

July 27, 2015

After the Federal Circuit remanded the case to the district court, the defendant filed a motion to stay the case pending the United States Supreme Court's review of the petition for writ of certiorari. As explained by the district court, "[t]his case for patent infringement is back in this court on remand from the Court of Appeals for the Federal Circuit. Promega Corp. v. Life Technologies Corp., 773 F.3d 1338 (Fed. Cir. 2014). The question before the court is whether the case should be stayed while defendants' petition for a writ of certiorari is pending before the Supreme Court."

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District Court Strikes "Shotgun Complaint" That Incorporated Allegations by Reference in Each Count

July 21, 2015

Lanard Toys Limited ("Lanard") filed a patent infringement action against Toys "R" US. Lanard subsequently filed a four-count Amended Complaint and Demand for Trial by Jury, both of which were filed in the United States District Court for the District of New Jersey. After the amend complaint was filed, the case was transferred to the Middle District of Florida.

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Smartflash v. Apple: After $500M Verdict, District Court Grants New Trial on Damages Based on Improper Use of Entire Market Value Jury Instruction

July 20, 2015

After a jury returned a verdict against Apple, Apple filed a motion for judgment as a matter of law or a new trial. The district court subsequently notified the parties pursuant to Rule 59(d) that it was considering granting a motion for a new trial for a reason not stated in Apple's original motion.

During the trial and apparently at Apple's request, the district court instructed the jury on the entire market value rule. Smartflash had argued that it did not employ the entire market value rule at trial and instead employed an apportionment analysis.

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District Court Lifts Stay after PTAB Confirms Eight Claims Even Though Defendant Planned to Appeal to the Federal Circuit

July 14, 2015

The district court had previously granted Defendant Respironics, Inc.'s
("Respironics") unopposed motion to stay the patent infringement action filed by the plaintiff, Zoll, pending an inter partes review ("IPR") of the patent-in-suit, on which the Patent and Trademark Office ("PTO") had instituted review. When Respironics filed the motion to stay, it had assured the district court that the length of the stay would not exceed 18 months. Based on this representation, Zoll withdrew its prior opposition to the requested stay and, based largely on the lack of opposition, the district court granted the stay.

After the completion of the IPR proceeding, the PTO confirmed the patentability of Zoll's patent claims. As explained by the district court, "Zoll now wishes to proceed with the litigation it filed more than 2 1/2 years ago, on December 27, 2012. Oddly, however, and in tension with its prior representations that it was only seeking a stay pending IPR, and that such a stay would not exceed 18 months, Respironics opposes lifting the stay."

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Court Grants Motion to Dismiss for Lack of Standing Where Plaintiff Merely Alleged That It Had All Substantial Rights to Patent

July 13, 2015

Verify Smart Corp. ("Verify") filed a patent infringement action against Bank of America, N.A. ("BoA"), alleging infringement of United States Patent No. 8,285,648 ("the '648 Patent"). As part of its complaint, Verify claimed to have all substantial rights through an exclusive license. BoA filed a motion to dismiss pursuant to Fed. R. Civ. P. 12(b)(1), contending that Verify lacked standing.

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After Transfer, Case Is Stayed Pending IPR Even Though Only Three of Twenty-Two Claims Were at Issue in the IPR

July 8, 2015

Plaintiff ACQIS, LLC ("ACQIS") filed a patent infringement action in the Eastern District of Texas alleging that Defendant EMC Corporation ("EMC") had infringed claims in 11 patents owned by ACQIS. Specifically, ACQIS alleged that 20 EMC computer storage products infringe 22 claims from these 11 patents, including EMC products for modular computer systems.

After the Eastern District of Texas transferred the case, EMC moved to stay the case pending Inter Partes Review ("IPR"). The United States Patent and Trademark Office ("PTO") has instituted IPRs for 2 of the 11 patents-in-suit, involving 3 of the 22 claims asserted against EMC.

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District Court Denies Motion to Amend Complaint to Add New Patents Even Though Patents Had Not Issued at Time of Original Filing and New Products Had Become Available on the Market

July 6, 2015

Plaintiff West View Research ("West View") filed five separate patent infringement complaints on the same date against various automobile manufacturers. Each action asserted a combination of patents, all from the same patent family, for a total of eleven asserted patents. The district ourt consolidated the five for purposes of discovery and claim construction.

As part of the Case Management Order, the district court ordered West View to identify no more than seven claims from each patent to assert against the Defendants. For each asserted claim, the district court ordered West View to provide preliminary infringement contentions.

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After Claim Construction, District Court Allows Opposing Experts to Testify to Different Definitions of "Using" At Trial and the Jury Can Decide Who Had the Better Interpretation

July 1, 2015

The parties filed opposing motions against each side's expert witness over a dispute between the parties as to what the word "use" means. In its Markman order, the district court had construed the term "Internet Protocol network" ("an Internet Protocol network," "network utilizing at least one Internet Protocol," and "a network utilizing at least one Internet Protocol") to mean "an untrusted network using any protocol of the Internet Protocol Suite including at least one of IP, TCP/IP, UDP/IP, HTTP, and HTTP/IP. . . ."

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District Court Orders Transfer of Case During Claim Construction Briefing: Did the Transfer Stay the Briefing Deadlines?

June 29, 2015

Defendants LG Electronics Inc. and LG Electronics U.S.A., Inc. (collectively, "LG") filed a motion to clarify the district court's order transferring the case to the district of New Jersey, seeking a ruling that the court's deadlines were suspended in view of the transfer order. The district court had granted LG's motion to transfer on § 1404(a) convenience grounds.

Prior to the transfer order, the district court had entered a scheduling order that set a number of deadlines through trial, including a deadline for LG's Responsive Claim Construction brief. LG's motion asked the court to find that the transfer order suspended all pending deadlines.

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Court Denies "Emergency" Motion to Lift Temporary Stay Noting That Plaintiff "Is Palpably Irritated," But "That's Not Going to Cut It"

June 24, 2015

In this patent infringement action, Meyer Products LLC ("Meyer Products" or "defendant") filed a motion to stay the case pending an inter partes review. After the motion was filed, the court set a briefing schedule. As part of its standard operating procedure, the court entered a temporary stay of the proceeding until defendant's motion could be decided on the merits.

In the middle of the briefing schedule and before plaintiff's opposition to the motion for stay was due to be filed, plaintiff filed an "emergency" motion to lift the temporary stay.

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Emergency Motion to Stay Granted Where PTAB Issued Decision Invalidating All Asserted Claims

June 22, 2015

Defendants filed an emergency motion to stay the case pending an appeal of the PTAB's decision that invalidated all of the asserted claims in the patent-in-suit. Earlier in this case, Defendants had petitioned for inter partes review ("IPR") of all of the claims at issue in the patent. The PTAB granted review, and the Defendants subsequently moved for a stay pending completion of the IPR.

Although the court acknowledged that the IPR process had the potential to simplify issues for trial, the court determined "that a stay was not justified because the parties had made significant progress toward trial and a stay would deny the Plaintiff an expeditious resolution of its patent rights." As a result, the litigation and the IPR proceeded concurrently.

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District Court Stays Patent Infringement Action Pending Inter Partes Review Prior to Institution of Review by Patent Trial and Appeal Board

June 17, 2015

The plaintiff CRFD Research, Inc. ("CRFD") filed a patent infringement action defendants Dish Network Corporation, Dish DBS Corporation, Dish Network L.L.C., Echostar Corporation, and Echostar Technologies L.L.C. (collectively, "Dish Network"). CRFD also filed separate actions against defendants Hulu, LLC ("Hulu"), Netflix, Inc. ("Netflix"), and Spotify USA Inc. ("Spotify"). CRFD alleges that each of the above-captioned defendants infringe U.S. Patent No. 7,191,233 ("the '233 Patent").

Certain of the defendants, Hulu, Netflix, and Spotify, filed a petition for inter partes review ("IPR") of the '233 Patent with the Patent Trial and Appeal Board ("PTAB"). Those same defendants then filed a motion to stay the proceeding pending the review by the PTAB, even though the PTAB had not yet accepted the petition for hearing. Dish Network then filed a separate petition for IPR and also filed a motion to join the other defendants' Joint Motion to Stay.

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Case Dismissed After Claims Upon Which Lawsuit Was Initiated Were Cancelled During Re-Examination

June 15, 2015

Defendant Extended Disc North America, Inc. ("EDNA") filed a motion for summary judgment of non-infringement and invalidity, and, alternatively, a motion to dismiss against plaintiff Target Training International, Ltd.'s ("TTI"). TTI had filed its complaint for patent infringement against EDNA on September 17, 2010, alleging that EDNA directly infringed at least Claim 1 of the patent-in-suit by performing the methods claimed in the patent and by using or selling services that use the methods claimed in the patent.

Extended DISC International, Ltd. ("EDI") filed a request for ex parte reexamination of the patent-in-suit with the United States Patent & Trademark Office ("PTO"). EDNA moved to stay the case pending the outcome of the reexamination. The court initially denied the motion to stay. On January 6, 2012, the PTO issued a final office action rejecting all of the claims in the patent-in-suit. The court subsequently issued an order staying the case until the PTO concluded reexamination and a certificate of reexamination was issued.

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Retailer Permitted to Sell Existing Inventory after Preliminary Injunction Issued against Manufacturer

June 10, 2015

After the plaintiff Cordelia Lighting, Inc. ("Cordelia") obtained a preliminary injunction against Zhejiang Yankon Grp. ("Yankon"), Cordelia sought to add certain retailers to the injunction. Cordelia owns U.S. Patent No. 8,474,204 ("the '204 Patent"), which is entitled "Recessed LED Lighting Fixture" and describes a fixture designed to hold an LED light bulb. Cordelia alleged that Yankon infringed the '204 Patent by making and selling a product called the "Utilitec Pro LED Recessed Retrofit Downlight" Yankon sells these products to Lowe's Companies, Inc. and Lowe's Home Centers, LLC ("Lowe's").

In its effort to add Lowe's to the injunction, Cordelia argued that Cordelia first argued that Lowe's should be enjoined because it is in "active concert or participation" with Yankon. The district court explained that "[s]ignificant to the analysis here, '[a]ctions that aid and abet in violating the injunction must occur after the injunction is imposed for the purposes of Rule 65(d)(2)(C).' Blockowicz v. Williams, 630 F.3d 563, 568 (7th Cir. 2010). It is undisputed that Yankon manufactures the Accused Products in China and then sells them to Lowe's, freight on board, in China. (See Declaration of Stephen Lobbin, Doc. No. 107-1, Ex. E (Deposition of Kevin Zhao at 36:15¬37:2).) In other words, once Yankon sells a unit of product to Lowe's, Yankon receives payment and no longer has any involvement with the end sales of the products to consumers. The Injunction Order prevents Yankon from making, selling, or importing the Accused Products. (Injunction Order at 14.) To be properly subject to the Injunction Order, Lowe's would have to aid or abet, or be a privy to, Yankon taking such actions. But, Lowe's fulfills neither requirement; it is hoping to sell off its own accumulated inventory of the Accused Products. Lowe's has already purchased this inventory, and is not continuing to purchase Accused Products from Yankon (which would clearly constitute a violation of the Injunction Order).

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