As this patent infringement action proceeded to trial, Google filed a motion in limine to exclude evidence of Google’s petitions for Inter Partes Review (“IPR”) of claims of the patent-in-suit and the Patent Trial and Appeal Board’s (“PTAB”) denial of institution of those petitions. Google had previously filed petitions with the PTAB seeking to invalidate the patent-in-suit and the PTAB had declined to institute review of the petitions.
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District Court Strikes Infringement Contentions and Sanctioned Plaintiff for Taking Inconsistent Positions
The defendant, Echoworx, brought a motion to strike ZixCorp’s infringement contentions. ZixCorp had served its original infringement contentions on Echoworx, contending that the elements of the patent-in-suit are software limitations, and stated that it intended to supplement its infringement contentions after Echoworx produced source code for each of Echoworx’s accused instrumentalities.
After Echoworx produced its source code for review, ZixCorp served P.R. 3-1(g) Amendments to Its Infringement Contentions (“amended contentions”). Echoworx then complained to ZixCorp that ZixCorp’s amended infringement contentions were deficient under 3-1(c) and ZixCorp had violated the Discovery Order by refusing to provide the identifications of source code for software limitations required by P.R. 3-1(g).
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District Court Strikes Documents That Were Not Produced During Discovery Even Though Documents Were Publically Available
In this patent infringement action, Mobile Telecommunications Tech., LLC (“MTel”) filed against Blackberry Corp., MTel moved to exclude certain exhibits that were archived press releases published by RCR Wireless and SkyTel webpage screenshots of advertisements. MTel objected that these exhibits are inadmissible because they have not been authenticated by a representative from the Internet Archive service, or “Wayback Machine.” MTel also objected that all of the exhibits constitute hearsay and that none of the exhibits were produced during discovery.
BlackBerry conceded that none of the exhibits were previously produced. It contended that the failure to produce the documents was harmless because they were publicly available. The district court disagreed.
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Court Declines to Modify Judgment Based on Collateral Proceedings before the PTAB Finding Claims of Patent-In-Suit Invalid
Summary: In the decision referenced below, the court declined to modify a judgment pursuant to Rule 60(b)(6) of the Federal Rules of Civil Procedure even though the PTAB had found several claims of the patent-in-suit invalid.
After a trial and an appeal to the Federal Circuit, which affirmed the royalty damages verdict in favor of the plaintiff, the defendant moved the district court to grant it relief from the judgment under Federal Rule of Civil Procedure 60(b)(6). The defendant argued that it would be unjust for the court to enforce a judgment in which ongoing collateral proceedings before the PTAB may render certain patents invalid and may have impacted the fairness of the trial.
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Failure to Institute Inter Partes Review Is Not Grounds for Common Law Estoppel to Prevent Defendant from Re-Litigating Issues Raised before the Patent Office
The defendant filed a petition for Inter Partes Review (“IPR”) with the Patent Office. As part of its application, it submitted a 65 page brief along with several hundred page s of accompanying evidence. The plaintiffs submitted a 60 page brief along with its own evidence in response. After the Patent Office declined to institute review of the patent-in-suit, the plaintiffs contended that the denial of the IPR was a final decision by an administrative board and that the defendant was collaterally estopped from bringing those same arguments again before the district court.
After reviewing the law on collateral estoppel, the district court noted that the defendant “did not make it past the preliminary proceedings in their attempted IPR.” The district court concluded that this was important for several reasons. “First, it means a ‘trial’ was never conducted o[n] the merits. Instead, the ‘proceedings’ were limited to a single petition brief, a response, and any accompanying evidence. Second, there was not a final written decision issued. The Board denied further review, that is, it denied initiating the IPR proceedings. Accordingly, no final written decision was necessary.”
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District Court Grants Permanent Injunction after Summary Judgment Ruling in Favor of Patent Holder Where Defendant Was Direct Competitor and Patent Holder Had Lost Sales and Market Share
After the district court granted the plaintiff’s motion for summary judgment of patent infringement, the district court addressed whether a permanent injunction was appropriate. The patent at issue, U.S. Patent No. 6,065,794 (‘794 Patent), which is titled “Security Enclosure for Open Deck Vehicles,” relates to storage management devices, or “trunk enclosures,” that partition and establish a lockable trunk in the rear of convertible cars.
The district court then proceeded to address the four factor for determining whether an injunction should issue. Addressing irreparable harm, the plaintiff argued that it had suffered and will continue to suffer irreparable harm as a result of the defendant’s infringement because the defendant is a direct competitor and the plaintiff has lost sales and market share due to Defendant’s infringement. In response, the defendant argued that the plaintiff could not show irreparable harm because it had not demonstrated that customers purchase the infringing devices because of the patented features and therefore, the plaintiff had failed to satisfy the “causal nexus” requirement.
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District Court Refuses to Recognize “Apex” Doctrine for Documents Created by Inventor and Global Leader of Company
The defendant filed a motion to compel, seeking a wide array of discovery against Plaintiffs Dyson, Inc. and Dyson Limited (collectively, “Plaintiffs”) to produce emails belonging to James Dyson (“Dyson”). Plaintiffs asserted that Dyson is Plaintiffs’ “global leader” and one of the named inventors on the patents-in-suit.
Although plaintiffs agreed to produce Dyson’s emails that are relevant to the issue of “inventorship,” they refused to produce documents relating to other issues, such as claim construction or infringement. The plaintiffs refused to produce any such emails because the “apex doctrine” requires that the defendants show that they could not obtain such evidence from other sources before obtaining them from high-ranking corporate officials, such as Dyson.
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Experts Ordered to Produce Draft Reports Exchanged with Other Experts
In this patent infringement action, the plaintiff, BRP, alleged three counts of patent infringement against Arctic Cat concerning snowmobile frame construction and snowmobile rider positioning. BRP alleged patent infringement by at least 91 Arctic Cat snowmobiles regarding two frame patents and infringement by at least 95 Arctic Cat snowmobiles regarding the seat position patent.
During expert discovery, Arctic Cat moved the district court for an order compelling BRP to produce any documents, notes or emails exchanged between BRP experts Larson and Raasch, particularly focused on draft expert reports exchanged between the two experts.
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District Court Denies Request to Have Invalidity Case Proceed Prior to Infringement Case
The parties in this patent infringement action could not agree on the order of proof at trial. Defendants sought to present their invalidity defense first, arguing that if the patent is invalid, they could not be liable for infringement. The plaintiffs opposed the request to re-order the proof at trial and contended that their infringement claim should be presented first.
The district court noted that it had broad discretion to “exercise reasonable control over the mode and order of examining witnesses and presenting evidence.” Federal Evidence Rule 611(a); see also Matter of Yagman, 796 F.2d 1165, 1171 (9th Cir. 1996) (“[T]he conduct and order of the trial are matters vested in the discretion of the district judge.”); Gen. Signal Corp. v. MCI Telecomm. Corp., 66 F.3d 1500, 1507 (9th Cir. 1995) (reviewing district court’s trial management for abuse of discretion).
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District Court Declines to Grant Voluntary Dismissal of Action with Motion for Judgment on the Pleadings Pending Where Patent Was Found Invalid by Another Court
After a district court in the Eastern District of Virginia invalidated the patent-in-suit because it did “not pass the two part test laid out by the Supreme Court in Mayo and Alice.” Peschke Map Techs. LLC v. Rouse Properties Inc., No. 1:15-cv-1365, — F. Supp. 3d —-, 2016 WL 1031295, at *7 (E.D. Va. Mar. 8, 2016), the plaintiff moved to dismiss a patent infringement action pending in a different district while a motion for judgment on the pleadings was pending.
The defendant had moved for judgment on the pleadings in its favor, arguing it cannot infringe on an invalid patent and that plaintiff is collaterally estopped from continuing to pursue its infringement claim. As noted by the district court, it is well known that a patentee is estopped from pursuing infringement claims for a patent that has been invalidated by another federal court, even if that action involved a different defendant. See Blonder-Tongue Labs., Inc. v. Univ. of Illinois Found., 402 U.S. 313, 333 (1971).
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