Articles Posted in N.D. California

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After Plaintiff Pi-Net International, Inc. (“Pi-Net”) brought suit against Defendants Focus Business Bank and Bridge Bank, N.A. for patent infringement, the Patent and Trademark Office initiated an Inter Partes Review (“IPR”) of the patents-in-suit. The district court then stayed the action pending the resolution of the IPR. During this stay, Pi-Net executed agreements transferring ownership of the asserted patents to its president Dr. Lakshmi Arunachalam.

The defendants, claiming that Pi-Net now lacks standing to sue for infringement of the asserted patents, moved to lift the stay and dismiss the cases as moot.
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As the Open Text v. Box patent case gets closer to trial, Open Text sought to preclude Box from asking the jury to award damages in the form of a fully paid-up lump sum that would cover the life of the patents-in-suit. Open Text argued that such a result would preclude Open Text from seeking an injunction or post-verdict ongoing royalties, which would improperly allow the jury to decide equitable issues.

Although the district court agreed that a lump-sum award might indeed preclude the injunction and/or post-verdict ongoing royalties, the district court stated that “there is no doubt that a fully paid-up lump sum is an allowable form of damages. See, e.g., Lucent Techs., Inc. v. Gateway, Inc., 580 F.3d 1301, 1325-26 (Fed. Cir. 2009) (discussing the licensor and licensee’s option of entering into an “upfront, paid-in-full royalty” in the hypothetical negotiation).
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In this patent infringement action between defendant Adobe Systems, Inc. (“Adobe”) and plaintiff Blue Spike, LLC (“Blue Spike”), Adobe filed a motion to strike the infringement contentions (“ICs”) filed by Blue Spike. In the motion, Adobe contended that Blue Spike’s ICs fail to comply with the Patent Local Rules for the following reasons: (1) the ICs fail to provide a claim chart for each of the accused instrumentalities and instead group together all four products in violation of Patent Local Rule 3-1(c); (2) the claim chart cites to exhibits that discuss Auditude’s (a company acquired by Adobe) products generally–both fingerprinting and ad insertion products–without identifying the particular product to which each exhibit refers, rendering the documentary support insufficient under Patent Local Rule 3-2; (3) the ICs chiefly rely on online articles published by third parties that do not specifically identify the accused products and are therefore insufficient under Patent Local Rule 3-2; and (4) the ICs do not properly set forth allegations of infringement under the doctrine of equivalents in violation of Patent Local Rule 3-1(e); and (5) fail to allege indirect infringement, willful infringement, or assert a priority date in accordance with the Patent Local Rules.
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In the pending patent infringement action between Netflix and Rovi, Netflix filed a motion for summary judgment, seeking a ruling that Rovi’s patents are invalid under 35 U.S.C. § 101. After the motion was filed, the district court “advised Netflix that it was entitled to only one motion for summary judgment in this case, that would be heard after claim construction, and that it needed to seek leave if it intended to go forward with the already-filed motion.”

The district court then found that as a matter of procedure Netflix’s motion was improperly filed. “Netflix did not seek leave of court, nor did it meet and confer with Rovi, prior to filing its early motion for summary judgment. The court also wholly rejects Netflix’s attempt to circumvent the court’s rules by re-characterizing its motion as a motion for judgment on the pleadings under Rule 12(c).”
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After the jury trial between Apple and Samsung, and shortly before the July 10, 2014 hearing on post-trial motions, Samsung requested leave to file supplemental briefing to argue that the asserted claims of two of Apple’s patents were invalid under 35 U.S.C. § 101, in light of the Supreme Court’s decision in Alice Corporation Pty. Ltd. v. CLS Bank International, 134 S. Ct. 2347 (June 19, 2014) (“Alice“).

The district court permitted the filing of the supplemental briefing on the invalidity issued, but ultimately concluded that Samsung had not timely raised the invalidity issue. “The Court concludes in this case that Samsung could have–but failed to–preserve § 101 invalidity defenses, and that Samsung’s request for the Court to adjudicate a legal theory that was disclosed after trial is untimely, regardless of the Supreme Court’s intervening decision in Alice. Accordingly, the Court will not consider the merits of Samsung’s § 101 arguments.”
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In the ongoing patent battle between Samsung and Apple, Samsung, trying to turn the tables on Apple, filed a motion for sanctions based on Apple’s disclosure of confidential information. The court had previously sanctioned Samsung for disclosing confidential information.

Prior to addressing the specific Samsung motion, the court went through the factual background of the prior ruling sanctioning Samsung. “On June 4, 2013, Nokia and Samsung met to continue their ongoing negotiations for a license deal. At that meeting, Dr. Seungho Ahn of Samsung told Paul Melin of Nokia that he knew the terms of Nokia’s license agreement with Apple; he then recited the terms and indicated that his lawyers had told him what they were. As Dr. Ahn put it, ‘all information leaks.'”
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Two weeks earlier, the court excluded the expert opinion and testimony of Plaintiff Golden Bridge Technology’s (“GBT”) damages expert. Nonetheless, the court gave GBT one week to submit a new report based on a new theory. After GBT met its deadline, Apple moved to exclude the second report as well.

As explained by the court, “Apple’s motion points out several of the significant flaws in Schulze’s current report: (1) Schulze improperly and sub silencio allocated the entire value of Apple’s portfolio licenses with Ericsson and Nokia to a tiny subset of a subset of a subset of a subset of the patents and standards in those portfolios; (2) Schulze improperly tripled the per-unit rate that Apple would have paid to GBT based on purely academic articles; (3) Schulze improperly failed to compare the patent-in-suit’s technical merits to those of other standards essential patents and (4) Schulze improperly failed to allocate any value to the non-license terms of the Ericsson and Nokia agreements.”
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In this patent infringement action, a dispute arose over whether the defendant B/E Aerospace could rely on declarations from one or more of the inventors of the asserted patent in support of its claim construction position. As explained by the district court, “[i]n the Joint Claim Construction Statement (“Joint Statement,” ECF No. 45) filed on May 9, 2014, Plaintiff MAG Aerospace Industries, Inc. (“Plaintiff”) and Defendant B/E Aerospace, Inc. (“Defendant”) dispute whether, in its claim construction briefing, Defendant may rely on declaration evidence from one or more of the individuals named as inventors on U.S. Patent Nos. 6,353,942; 6,536,054; and 6,536,055 (the “Asserted Patents”).
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After the district court issued a Markman ruling, the parties informed the court that they had reached an agreement in principle to settle the action. The plaintiff, FlatWorld, then moved to vacate the claim construction order. The district court noted that it had only adopted FlatWorld’s proposed construction for one out of nine terms. “Now plaintiff FlatWorld Interactives LLC wants me to vacate the claim construction order, in which I adopted only one of its proposed constructions out of nine terms to be construed, because it is concerned about the potential collateral estoppel effects of my order in two actions pending before the United States District Court for the District of Delaware.”

The district court then explained that Federal Rule of Civil Procedure 60 provides that a court may relieve a party from an order if “applying it prospectively is no longer equitable” or for “any [ ] reason that justifies relief.” FED. R. CIV. P. 60(b). “Although the Court may vacate an order upon settlement there is no requirement to do so; otherwise any litigant dissatisfied with a trial court’s findings would be able to have them wiped from the books.” White v. Shen, No. 09-cv-989-BZ, 2011 WL 2790475, at *1 (N.D. Cal. July 13, 2011) (internal quotation marks omitted). A “district court can decide whether to vacate its judgment in light of ‘the consequences and attendant hardships of dismissal or refusal to dismiss’ and ‘the competing values of finality of judgment and right to relitigation of unreviewed disputes.'” Dilley v. Gunn, 64 F.3d 1365, 1371 (9th Cir. 1995).
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In this patent infringement action between Golden Bridge Technology, Inc. (“Golden Bridge or GBT”) against Apple, Golden Bridge’s counsel moved to withdraw as counsel of record because Golden Bridge had failed to pay the legal bills. As explained by the court, “[s]ince this case appeared on the undersigned’s docket, Plaintiff Golden Bridge Technology Inc. has been represented by attorneys from the McKool Smith firm. With GBT’s consent, McKool now seeks to withdraw as GBT counsel based on the client’s failure to pay its bills.”

Although the court was sympathetic to the plight of the attorneys, it did not believe that granting the request to withdraw was appropriate. “This court is quite sympathetic to the idea that attorneys ordinarily should not be made to work for free. But here two key factors weigh against granting McKool’s withdrawal request. First, no other attorneys have appeared for GBT. Even in the time since McKool filed its motion, no new attorneys have appeared. Second, trial is upon us. Jury selection is May 30, and opening statements are set for the following Monday. All pretrial motions have been briefed, and the parties are set to appear for a final pretrial conference this Friday.”
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