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Michael Smith
Michael Smith
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Orion II: Summary Judgment of Infringement as to Hyundai's Redesigned Websites

Hyundai Motor America v. Clear With Computers, LLC, No. 6:08cv00302 (E.D. Tex., Aug. 24, 2009)
Holding: Motion for Summary Judgment on Noninfringement DENIED; Infringement GRANTED
Judge: Leonard Davis   

This case arises out of the Orion IP, LLC v. Mercedes-Benz USA, LLC, et al., 6:05cv322 litigation.  Orion settled with all defendants except Hyundai prior to trial. At trial, Hyundai alleged it did not infringe the patents and the patents were invalid. The he jury found Hyundai infringed the ‘627 patent, its infringement of the patent was willful, the ‘627 patent was not invalid, and Hyundai did not infringe the ‘342 patent. The jury awarded Orion $34 million in damages for Hyundai’s infringement of the ‘627 patent. The Court entered final judgment on the verdict and awarded Orion an ongoing royalty for Hyundai’s continued infringement.

Hyundai now claimed that it had redesigned its websites so that they no longer infringed, and filed this declaratory judgment action.  The plaintiff formerly known as Orion counterclaimed that you can put lipstick on a pig, but what you're doing with it is still illegal (at least in most states).  Judge Davis noted that the issues were before him on cross-motions for summary judgment and that the parties did not have any factual disputes as to how the changes have affected the websites.  Accordingly, after reviewing the applicable facts, he found that the accused websites were still infringing the patents, and according denied Hyundai's motion and granted CWC's. 

Posted by Michael C. Smith on August 31, 2009 at 03:16 PM in All Patent cases, Judge Davis opinions | Permalink | Comments (1)

Motion for Partial Summary Judgment on Indefiniteness Granted; Motion to Strike Expert Declaration Denied (but with a caveat)

Michael S. Sutton Ltd. v. Nokia Corp., --- F.Supp.2d ----, 2009 WL 2460994 (E.D.Tex. Aug 10, 2009) (NO. 6:07CV203)
Judge: Leonard Davis
Holding: Defendant's Motion for Partial Summary Judgment on the issues of indefiniteness, enablement, and utility GRANTED; Motion to Strike expert declaration DENIED
This is a claims construction opinion which also addressed the defendant's motions for partial summary judgment on the issues of indefiniteness, enablement, and utility as to one of the asserted claims, as well as a motion to strike a declaration by the plaintiff's expert.  In the course of construing the claims Judge Davis granted the requested summary judgment as to claim 3 of the asserted patent, but denied the motion to strike the expert's declaration.
With respect to the latter ruling, the Court's analysis was contained in an informative little nugget of a footnote.  In it, Judge Davis stated that the motion to strike provided "no legal basis" for striking an expert declaration attached to a claim construction brief. "However," he continued, "in fully considering Dr. Myler's declaration, the Court was ever mindful that conclusory and unsupported assertions are unhelpful and given very little weight when compared with the intrinsic record. See Phillips, 415 F.3d at 1317."  You ever notice judges don't seem to care much for "conclusory and unsupported" stuff?

Posted by Michael C. Smith on August 28, 2009 at 10:56 AM in All Patent cases, Judge Davis opinions, Patent Cases: Recent Rulings for Defendants | Permalink | Comments (0)

Claims construction resulting in dismissal affirmed on appeal

RFID Tracker Ltd. v. Wal-Mart Stores Inc., (NO. 6:06 CV 363)
Judge: Leonard Davis
Holding: Claims construction ruling affirmed.

Blog readers may recall that last February Judge Davis entered a claims construction order in this case, which can be found at RFID Tracker Ltd. v. Wal-Mart Stores Inc., --- F.Supp.2d ----, 2008 WL 382317, E.D.Tex., February 11, 2008.  As part of the claim construction order in this case, he adopted Defendants’ definition of the term “interrogator/reader” and construed it to mean “an interrogator/reader that includes a field generator and a receiver, but not a transmitter”.  The Plaintiff subsequently stipulated to noninfringement as a result of the Court's claims construction ruling, and a final judgment was entered, followed by an appeal.

Last week the Federal Circuit affirmed Judge Davis' ruling in an unpublished per curiam opinion. 

Posted by Michael C. Smith on August 24, 2009 at 05:32 PM in All Patent cases, Judge Davis opinions, Patent Cases: Recent Rulings for Defendants | Permalink | Comments (0)

Motion for Summary Judgment of Indefiniteness Denied

IP Innovation, LLC v. Red Hat, Inc., 2009 WL 2460982(E.D.Tex. Aug 10, 2009) (NO. 2:07CV447)
Judge Davis.
Holding: Motion for Summary Judgment of Indefiniteness DENIED
This is a Markman ruling by Judge Davis which also resolves a motion seeking summary judgment on the grounds of indefiniteness.

Posted by Michael C. Smith on August 14, 2009 at 11:55 AM in All Patent cases, Judge Davis opinions | Permalink | Comments (0)

Postverdict motions resolved in i4i v. Microsoft

Microsoft Word i4i Ltd. Partnership v. Microsoft Corp., 2009 WL 2449024(E.D.Tex. Aug 11, 2009) (NO. 6:07CV113)
Judge: Leonard Davis

This is the case in which a Tyler jury rendered a verdict against Microsoft of $200,000 in May of this year.  In this opinion, released earlier this week, Judge Davis addressed numerous postverdict motions.  By party, they are: Microsoft's motions for judgment as a matter of law regarding willful infringement, indirect infringement, noninfringment, invalidity, anticipation and obviousness, for remittitur regarding damages, and to stay injunctive relief.  On the plaintiff's side, the motion addressed the plaintiff's motion for enhanced damages and attorneys' fees, motion for a permanent injunction, and motion for post-verdict damages, prejudgment interest, and post-judgment interest.

For the reasons set forth in this exhaustive 37 page opinion, Judge Davis granted i4i's motion for enhanced damages and attorneys' fees in part, granted i4i's motion for permanent injunction and i4i's motion for post verdict damages, prejudgment interest, and post-judgment interest, and denied all the other motions.  The opinion also included the Court's findings of fact and conclusions of law regarding Microsoft's equitable defenses of laches and inequitable conduct.  On the enhancement, while it could have been up to three times the $200 million verdict, Judge Davis enhanced only $40 million, despite finding that Microsoft's trial counsel's arguments at trial constituted misconduct which was "persistent, legally improper, and in direct violation of the Court's instructions."  Judge Davis specifically declined to find the case "exceptional" due to the litigation misconduct, contrasting it to his prior experience in z4 Techs., Inc. v. Microsoft Corp., No. 6:06-cv-142, 2006 WL 2401099 at *22-25 (E.D.Tex.2006) (Davis, J.) in which he concluded that attorneys' fees were properly awarded where Microsoft withheld critical evidence, misled the Court regarding facts probative to the admissibility of certain evidence, and marked nearly 3500 exhibits while only admitting 100 of those at trial. In this case, the relatively lower level of misconduct, "combined with a lack of evidence that Microsoft intentionally copied i4i's patent or products and i4i's lengthy delay prior to filing suit preclude an “exceptional” finding in this case."

As numerous media have commented, Judge Davis granted an injunction in this case, enjoining the sale of Microsoft Word following the date of the injunction, after applying the four factor test provided for in eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388, 394 (2006), and finding that all four factors favored an injunction.  He declined to stay the injunction.

Posted by Michael C. Smith on August 14, 2009 at 10:48 AM in All Patent cases, Judge Davis opinions | Permalink | Comments (0)

"Error, error, shalt thou pursue... "; New Trial Denied & Bill of Costs Denied in Part in West v. Perry

Diary_Of_A_Mad_Black_Woman It was big news locally when Tyler Perry (best known of course for playing the Starfleet Academy commandant in Star Trek) prevailed in the copyright infringement case brought against him in Marshall recently over the authorship of his movie Diary of a Mad Black Woman.  Today Judge Davis issued a 25 page opinion denying the plaintiff's motion for new trial and denying in part the bill of costs submitted by the prevailing defendant.
At trial, Judge Davis observed, the main issues were whether Perry had access to plaintiff Donna West’s play Fantasy of a Black Woman such that he copied it, whether he copied it, and whether the two works are so similar that the jury could find he had copied it even without proof of access.  The relevant standard, he noted, is set forth in Positive Black Talk Inc. v. Cash Money Records, Inc., 394 F.3d 357, 367 (5th Cir. 2004).  (No, seriously, that's really the name of the seminal case).
Judge Davis began by identifying numerous grounds asserted in the motion for new trial that West did not preserve either through objection at trial or otherwise, including improper appeals to emotions, Defendants' alleged misrepresenting of a witness's testimony, prejudice by unfair surprise created by Defendants’ argument that Perry first came to Dallas in 1999, that Defendants misrepresented the existence of the original Diary of a Mad Black Woman script, evidence of Perry’s post-1998 work, the Court’s ruling regarding the admissibility of West’s copyright registration that is reflected in the Court’s ruling on West’s motion in limine, and that the charge misled the jury.  On the copyright registration issue, Judge Davis noted that he never excluded the registration - he simply held that if it were offered, it was coming in in its entirety.  But Plaintiff never offered it in any form, nor did she make an offer of proof of the registration, thus any claim of error was waived.
On issues that were preserved via a timely objection, the plaintiff didn't fare much better.  First, she complained that the defendant made a prohibited "golden rule" argument to the jury.  Judge Davis noted that as the statement pertained to liability and not damages, it was not prohibited as such - but he sustained the objection anyway.  As the plaintiff did not then request a curative instruction, it waived any complaint (this is often referred to as "failing to pursue an adverse ruling.")  Next up was a complaint about a statement in closing statement, which Judge Davis held did not warrant a new trial, and objections to testimony by the defendant's expert, as to which Judge Davis had the same conclusion.  Next was a statement by Perry during his testimony which Judge Davis instructed the jury to disregard.  In light of the instruction (which was not objected to, and thus only plain error review applied) and the minor probative value of the statement, Judge Davis held that any error was harmless.  (Ed. note: It's not that it is difficult to preserve error on our various Baylor Law School - educated judges, like Judge Davis.  It's just that they know when you don't do it, having been educated at a school where the exterior frieze has an engraved inscription "Error, error, shalt thou pursue."  Or maybe I'm just thinking about the inside of my forehead after going there ...).  See QPSX v. Nortel (no offer of proof on excluded expert testimony). 
Finally, plaintiff asserted objections to the Court's charge, and after review, Judge Davis concluded that the charge, as submitted, was proper (and on some of the objections, again - you got it - plaintiff did not preserve error).  Finally, Judge Davis rejected the plaintiff's claim that the jury's verdict was against the great weight of the evidence, spending several pages to detail the evidence and the applicable standards, before concluding that the jury's verdict should be upheld.

On the bill of costs issue (not one of Judge Davis' favorite motions, as local practitioners know), one useful data point is that he excluded costs for videotaped depositions, citing Fifth Circuit precedent (which is admittedly contrary to some other circuits on this point).  The interesting part is that on October 13, 2008, as part of a package of cleanup amendments, Congress amended the court costs statute, 28 USC 1920 (see Pub. L. 110-406) to allow recovery of "electronically recorded transcripts."  I studied this legislation recently trying to figure out whether this section covered videotaped depositions as well as electronic copies, i.e. ascii disks or CD copies of transcripts, and the legislative history is not helpful, so it is useful (or at least interesting - the adjective depends on which side of the argument you are on) to have an opinion from Judge Davis that postdates the statute concluding that it does not.  Of course the opinion also reflects that the defendant specifically did not seek costs for video depositions, and there's no indication that anyone brought the new statute to the Court's attention (at different places the order quotes the prior and the current language), so the issue may still be virgin territory, legally speaking.

In any event, the order provides a detailed analysis of specifically which costs are recoverable for court reporter fees and which are not, spanning depositions, pretrial, and trial.  In the most crucial part of the opinion for practitioners, Judge Davis notes that "[t]he rates of $0.15 per page for black and white copies and $0.99 per page for color copies are not exorbitant on their face."  He also sent the parties back to confer on the issue of recoverability of costs for exhibits, demonstratives, and duplicates, and rejected the plaintiff's claim that the costs should be reduced as a result of her inability to pay due to a medical condition.  Finally, in likely the most crucial part of the opinion for the Court, Judge Davis concluded by holding that "The Court ORDERS the parties to meet and confer as detailed above and are urged to work diligently to resolve these matters without further Court intervention."  (Emphasis not in original, surely due to an oversight).

Posted by Michael C. Smith on July 23, 2009 at 05:21 PM in Judge Davis opinions | Permalink | Comments (0)

"Honeywell Loses Texas 'Trolling Try'" Article

Joe Mullin has a good story this week Honeywell Loses Texas "Trolling Try" on the outcome of Honeywell's licensing arm's litigation against eight LCD panel manufacturers in the Eastern District (specifically Judge Davis and Love's court in Tyler).  According to Joe, seven of the eight defendants settled over the course of litigation, but the eighth which did not settle, a small Taiwanese company called Novatek, won summary judgment of noninfringement earlier this month.  (Ed. note - I am part of the team of attorneys representing Novatek in this case so I had sort of heard of this before I saw the article). 
The article focuses on Honeywell's use of the business model of establishing a licensing operation, Honeywell Intellectual Property International (HIPI), which is kept separate from Honeywell’s operating divisions, to monetize its IP.

Posted by Michael C. Smith on June 30, 2009 at 09:51 AM in All Patent cases, Judge Davis opinions, Judge Love opinions, Patent Cases: Recent Rulings for Defendants | Permalink | Comments (0)

Motions to Transfer Denied; Motion to Dismiss for Lack of Personal Jurisdiction Granted

Acceleron, LLC v. Egenera, Inc., 2009 WL 1606961(E.D.Tex. Jun 09, 2009) (NO. 6:08CV417)
Judge: Leonard Davis
Holding: Motions to Transfer DENIED; Motion to Dismiss for Lack of Personal Jurisdiction GRANTED
Six defendants filed motions to transfer - the sixth also filed a motion to dismiss for lack of personal jurisdiction.  While the motions were originally premised on a prior-filed case in Delaware, while the motions were pending the Delaware action was dismissed for lack of subject matter jurisdiction, so Judge Davis analyzed the motions under traditional convenience standards.  (Well, perhaps "traditional" is not the right word - perhaps "current" would be better).  I won't go through the Court's full analysis, but essentially there wasn't much supporting a transfer to Delaware in the absence of the other case other than that most of the defendants were incorporated there, and the plaintiff was a Tyler company (with its only office and employee in Tyler).  So now showing Delaware was "clearly more convenient". 
With respect to Fujitsu's motion, the Court was not pleased with the procedural manner in which it was raised, noting as "highly irregular" and "highly suspect" under the local rules Fujitsu's late briefing on the issue.  But in the absence of any objection by the plaintiff, the court did not assign weight to this set of facts.  The basis for the motion was essentially that the Fujitsu entities sued had no contacts with Texas and had never sold any allegedly infringing products in Texas, and the Court noted that the plaintiff had not done anything (except browsing a website) to ascertain whether there were any such sales to carry its burden to show that jurisdiction was proper.  Under these facts, the Fujitsu entities were dismissed without prejudice, but the plaintiff was given 30 days to amend its answer and serve the proper Fujitsu entity.

Posted by Michael C. Smith on June 12, 2009 at 10:38 AM in All Patent cases, Judge Davis opinions | Permalink | Comments (0)

Summary Judgement of Noninfringement Granted

Fenner v. Microsoft, et al, 6:07cv8 (June 3, 2009)
Judge: Leonard Davis
Holding: Defendants' Motion for Summary Judgment of Noninfringement GRANTED
Lots of orders flying out of Judge Davis' chambers in Tyler lately.  Last night Judge Davis entered summary judgment of noninfringement in this case by Fenner against defendants Microsoft and Nintendo, and a final judgment of noninfringement.  Readers may recall that this was the case from March where the parties picked a jury and then Judge Davis concluded that no fact issues existed, and summary judgment was appropriate.  This is the order with the court's reasons for this conclusion.

Posted by Michael C. Smith on June 04, 2009 at 11:44 AM in All Patent cases, Judge Davis opinions, Patent Cases: Recent Rulings for Defendants | Permalink | Comments (0)

Summary Judgment Granted Based on Licensing Defense

Accolade Systems LLC v. Citrix Systems, Inc., 2009 WL 1514426(E.D.Tex. May 29, 2009) (NO. 6:07 CV 48)
Judge: Leonard Davis
Holding: Motion for Summary Judgment on Licensing Defense GRANTED
This is a patent case set for trial before Judge Davis in Tyler later this month.  The last defendant standing, Citrix filed a motion for summary judgment asserting a license defense based on a settlement agreement the plaintiff entered into with Cisco on April 6.  Plaintiff Accolade filed a motion for leave to conduct additional fact discovery regarding the applicability of the Agreement.  As stated at the pretrial hearing, the Court granted Citrix's motion for summary judgment based on the Agreement release provision, holding that the release provision applied to Citrix as a “customer,” a “user,” and an “Authorized Third Party”, and since the Agreement release provision was unambiguous, he denied the motion for leave to conduct additional fact discovery

Posted by Michael C. Smith on June 04, 2009 at 10:45 AM in All Patent cases, Judge Davis opinions, Patent Cases: Recent Rulings for Defendants | Permalink | Comments (0)

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