throbber
Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 1 of 198
`
` Volume 1
`
` Pages 1 - 197
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`BEFORE THE HONORABLE WILLIAM H. ALSUP, JUDGE
`
`)
`FINJAN, INC.,
` )
` Plaintiff, )
` )
` VS. ) No. C 17-5659 WHA
` )
`JUNIPER NETWORKS, INC.,
`)
` )
` Defendant.
`)
` ) San Francisco, California
` Monday, December 10, 2018
`
`
`TRANSCRIPT OF PROCEEDINGS
`
`
`APPEARANCES:
`
`For Plaintiff: KRAMER, LEVIN, NAFTALIS & FRANKEL LLP
` 990 Marsh Road
` Menlo Park, California 94025
` BY: PAUL J. ANDRE, ESQ.
` LISA KOBIALKA, ESQ.
` JAMES HANNAH, ESQ.
`
` KRAMER LEVIN NAFTALIS AND FRANKEL LLP
` 1177 Avenue of the Americas
` New York, New York 10036
` BY: CRISTINA LYNN MARTINEZ, ESQ.
`
`
`(Appearances continued on next page)
`
`
`
`
`Reported By: Katherine Powell Sullivan, CSR No. 5812, RMR, CRR
` Jo Ann Bryce, CSR No. 3321, RMR, CRR
` Official Reporters
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 2 of 198
`
`APPEARANCES (CONTINUED):
`
`For Defendant: IRELL & MANELLA LLP
` 1800 Avenue of the Stars, Suite 900
` Los Angeles, California 90067-4276
` BY: JONATHAN S. KAGAN, ESQ.
` ALAN J. HEINRICH, ESQ.
` JOSHUA GLUCOFT, ESQ.
` CASEY CURRAN, ESQ.
`
` IRELL & MANELLA LLP
` 840 Newport Center Drive, Suite 400
` Newport Beach, California 92660
` BY: REBECCA CARSON, ESQ.
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 3 of 198
`
`I N D E X
`
`
`Monday, December 10, 2018 - Volume 1
`
` PAGE VOL.
`Jury Voir Dire
`28
`1
`Preliminary Jury Instructions
`150
`1
`Opening Statement by Mr. Andre
`155
`1
`Opening Statement by Mr. Kagan
`173
`1
`
`
`PLAINTIFF'S WITNESSES PAGE VOL.
`
`BIMS, HARRY
`(SWORN)
`Direct Examination by Mr. Andre
`
`
`192
`193
`
`1
`1
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 4 of 198
`
`PROCEEDINGS
`
` 4
`
`Monday - December 10, 2018
`
` 7:32 a.m.
`
`P R O C E E D I N G S
`
`---000---
`
`THE COURT: Good morning. We're here for trial.
`
`We'll get started.
`
`THE CLERK: Calling Civil Case Number 17-5659, Finjan,
`
`Inc. versus Juniper Networks.
`
`Will counsel please step forward and state your
`
`appearances for the record.
`
`MR. ANDRE: Good morning, Your Honor. Paul Andre
`
`Andre for Finjan. And with me today is Lisa Kobialka, James
`
`Hannah, and Cristina Martinez.
`
`THE COURT: Welcome to all of you.
`
`MR. KAGAN: Good morning, Your Honor. Jonathan Kagan,
`
`of Irell & Manella, for defendant Juniper Networks. With me at
`
`counsel table today are Rebecca Carson.
`
`MS. CARSON: Good morning.
`
`MR. KAGAN: Alan Heinrich.
`
`MR. HEINRICH: Good morning.
`
`MR. KAGAN: Josh Glucoft, and Casey Curran.
`
`MS. CURRAN: Good morning.
`
`THE COURT: Okay. I guess with all the lawyers here
`
`this case must be worth millions of dollars. That's the way a
`
`jury is going to see it. Always works that way.
`
`All right. We're here for trial. We're going to call the
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 5 of 198
`
`PROCEEDINGS
`
` 5
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`jury in in 30 minutes, get started. I want you to know, the
`
`way I run the courtroom, we don't dawdle.
`
`So what issues do you want to take up before we bring in
`
`the potential jury?
`
`MR. KAGAN: Your Honor, the first issue that the
`
`defendant would like to raise regards to insufficiency or lack
`
`of sufficiency of the offer of proof that Your Honor ordered to
`
`be served at 5 o'clock on Friday.
`
`The offer of proof was -- Mr. Heinrich can go into more
`
`detail on this, but the offer of proof, which was on damages,
`
`failed to include certain items such as the amount of damages
`
`that Finjan is seeking in this case.
`
`And, in addition, it included reference to evidence that
`
`they were going to introduce to support its damages claim that
`
`this Court expressly ordered excluded by the Daubert motion.
`
`So, for example, they are seeking, as evidence to support
`
`their damages claim, revenues for the SRX device by itself,
`
`which this Court has already ordered is not an accused product
`
`in this case.
`
`So what they've done is continued to advance a defunct
`
`theory to support damages. And they're still trying to hide
`
`the ball in terms of what damages they're actually seeking and
`
`what the basis is for the damages claim, which is why we
`
`requested the offer of proof in the first place.
`
`THE COURT: Okay. What do you say?
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 6 of 198
`
`PROCEEDINGS
`
` 6
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`MR. ANDRE: Your Honor, we're not asking for damages
`
`based on SRX alone. Just the opposite. We actually -- at the
`
`pretrial conference you ordered the defendants to produce a
`
`witness on the late-disclosed spreadsheet, the 17,000-page
`
`spreadsheet. And they represented they were just adding one
`
`column to their spreadsheet they produced back in April, you'll
`
`recall.
`
`Turns out that one column, or maybe two columns, had
`
`60,000 rows that we found out as we took the deposition on
`
`Friday afternoon.
`
`THE COURT: Wait. Wait. You're saying in addition
`
`to -- in addition to one new column, which was previously
`
`blank, they added 60,000 new rows?
`
`MR. ANDRE: Yeah. The original spreadsheet had
`
`30,000 --
`
`THE COURT: Is that true?
`
`MR. HEINRICH: No, Your Honor.
`
`THE COURT: He said it's not true.
`
`MR. ANDRE: Well, we asked at deposition -- the
`
`original deposition spreadsheet had 30,000 rows; the new one
`
`had 90,000. Now, my math --
`
`THE COURT: What do you say to that?
`
`MR. HEINRICH: So, it's not correct --
`
`THE COURT: Anytime a lawyer starts with "so," that
`
`means they are in trouble.
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 7 of 198
`
`PROCEEDINGS
`
`MR. HEINRICH: No, Your Honor.
`
` 7
`
`THE COURT: I've learned that the hard way. That
`
`means they don't want to give you a direct answer.
`
`Give me a direct answer. Is it true that there are more
`
`rows or not?
`
`MR. HEINRICH: No.
`
`THE COURT: He says no.
`
`All right. What else do you want to say?
`
`MR. ANDRE: We then talked to their witness and said,
`
`Tell us the revenues for the SRX and Sky ATP combined, both the
`
`ones you give away for free and ones you charge a license for.
`
`And she created two spreadsheets. One was the price of
`
`$15.9 million for those two combined. The other was
`
`7.2 million.
`
`The 7.2 was when they went back and tried to recalculate
`
`the free versions of the Sky ATP with SRX, the sales of SRX for
`
`7.2 million. So roughly over $23 million in revenue of
`
`spreadsheets that their witness created. They say that that is
`
`SRX by itself.
`
`We have the spreadsheets. We have the exhibits. And it
`
`says "Sky ATP and SRX." And that's the best that she could do.
`
`They said, well, she couldn't verify the accuracy of that
`
`information on their own spreadsheets. I'm like, well, she's a
`
`30(b)(6) witness. I don't know what else to do here.
`
`We found out that they have been advancing a total revenue
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 8 of 198
`
`PROCEEDINGS
`
` 8
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`number of 1.8 million. And no one knows how they got to
`
`1.8 million. And we figured it out at this deposition.
`
`They had their expert write a piece of software, some
`
`script, to run a program to gin up this $1.8 million revenue
`
`based on average cost and expectation and whatnot.
`
`We've never been provided that piece of software or script
`
`to test it on our own and see even what it was about. But
`
`their witnesses or fact witnesses could not re-create that
`
`number.
`
`So not only do we have a lot of additional information on
`
`the spreadsheet that was produced very late in the case, then
`
`they used that spreadsheet, without us having access to it, to
`
`write a piece of software to gin up a number of $1.8 million,
`
`to sandbag us with our damages expert.
`
`We went in --
`
`THE COURT: Well, but even if it was 7.2, your number
`
`was 70 million. You still came up with an astronomical number.
`
`So how would the 7.2 even get you close to 70 million?
`
`MR. ANDRE: It wouldn't, Your Honor. We're not saying
`
`that. The 7.2 and the 15.9, the 23 million total, it would
`
`be -- still our number would be high. But the numbers we had
`
`in the original spreadsheets, you couldn't even decipher the
`
`23 million. The number we had in the original spreadsheet was
`
`several-hundred million. So our 60 to 70 million wasn't
`
`outrageous when you looked at the several-hundred million.
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 9 of 198
`
`PROCEEDINGS
`
` 9
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`But we're not arguing that now. We're arguing this offer
`
`of proof. And this offer of proof is we took the deposition on
`
`Friday. Their witness came up with a couple of spreadsheets.
`
`They're objecting to the spreadsheet, saying she could not test
`
`the authenticity -- couldn't say that she was -- it was
`
`accurate numbers. She just couldn't tell. So that was their
`
`30(b)(6) witness.
`
`That's what they are saying that we are now offering SRX
`
`by itself.
`
`THE COURT: What do you say to this?
`
`MR. HEINRICH: So many inaccuracies.
`
`I'm going to start with the 7.2 million. So we provided a
`
`wealth of information in that spreadsheet. We were able to
`
`determine that there were only 120 SRX devices that were used
`
`in combination with Sky ATP during the damages period.
`
`So what we did is we used the Juniper financial
`
`information to determine the price and the net sales of those
`
`120 --
`
`THE COURT: How do you know if it was used or not?
`
`MR. HEINRICH: Well, because that information is in
`
`the Cloud. We're able to determine which devices actually --
`
`it's called bootstrap to Sky ATP.
`
`So our fact -- our engineers were able to write a script
`
`that derived that information, what were the devices actually
`
`bootstrapping to Sky ATP. And we used the serial number for
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 10 of 198
`
`PROCEEDINGS
`
` 10
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`those devices, and we extracted financial information.
`
`And what we included in that financial information was
`
`information on the shipments that those units that were
`
`actually used in combination with Sky ATP were included in.
`
`So, for example, the customer orders 200 SRX devices. We're
`
`able to determine that only one of those devices was ever used
`
`in combination with Sky ATP.
`
`What they did is they included the entire revenues from
`
`those 200 devices to come up with their 7.2 million. They were
`
`manipulating the spreadsheet in a way that ignored the 120
`
`units that were actually used and, instead, included the
`
`revenues for all of the SRXs included together in the same
`
`shipment.
`
`And that's exactly the problem that -- I mean, it's the
`
`same problem that the Court resolved in the Daubert ruling,
`
`which is that they can't include revenues for SRX devices alone
`
`that were never used in combination with Sky ATP.
`
`That's just one example. The fundamental problem here is
`
`that their offer of proof confirms that they don't have a
`
`legally viable damages opinion. They say, oh, well, we can put
`
`on evidence of an $8 per user license.
`
`That's -- they already floated that theory in another
`
`trial. The Federal Circuit vacated the jury verdict because
`
`the Federal Circuit said they just plucked that out of thin
`
`air.
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 11 of 198
`
`PROCEEDINGS
`
` 11
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`THE COURT: Which trial was that?
`
`MR. HEINRICH: That was the Finjan v. Blue Coat trial.
`
`THE COURT: That verdict got reversed.
`
`MR. HEINRICH: That's correct. Now they say they want
`
`to do the same $8 per user license model again. They're also
`
`saying a 32-cent-per-scan license, where they've never actually
`
`done a per-scan license at all. It's just another number that
`
`was plucked out of thin air as well. It fails under Finjan v.
`
`Blue Coat.
`
`Evidence -- they have a starting point license of
`
`8 percent for hardware. But now they say they want to apply
`
`that to the revenues for the entire security division of
`
`Juniper, which not only includes SRX devices alone, but it also
`
`includes the site for ATP appliance, that the Court excluded,
`
`but they cite for revenues in their offer of proof as the basis
`
`for a damages claim. They're flouting the Court's orders.
`
`They're ignoring and flouting the Federal Circuit's rulings.
`
`And the problem here is that in a few moments we're going
`
`to have folks coming in here, taking time away from work, away
`
`from their family, and their offer of proof confirms that they
`
`don't have a damages case that would withstand a Rule 50(a)
`
`motion. That's the problem.
`
`THE COURT: Well, there are other issues to try.
`
`MR. HEINRICH: If they --
`
`THE COURT: There's infringement to try.
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 12 of 198
`
`PROCEEDINGS
`
` 12
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`MR. HEINRICH: If they don't have damages, then this
`
`whole case is moot. The patent is expired.
`
`THE COURT: Now that we have gotten this far, I'm not
`
`going to dismiss the jury.
`
`Look, I'm going to deny your motion. I'm going to explain
`
`why.
`
`It's not -- I want to tell Mr. Andre first, I have grave
`
`doubt that you're going to have a damages case after I hear it
`
`all. And I may have to direct a verdict against you on the
`
`issue of damages. I want to be very clear about that.
`
`Let's just start with one word: apportionment. All right.
`
`That right there may be a deal killer for you.
`
`But here's the problem: This is coming up to me out of
`
`left field by the defendant, and it's a problem that you caused
`
`by coming up with this last-minute spreadsheet that you
`
`yourself injected into it. So I allowed a deposition to try to
`
`cure your default with a last-minute disclosure.
`
`And then on Friday night -- this is Monday. I'm talking
`
`to the Court of Appeals now. This is Monday morning, at
`
`7:45 a.m. And -- on Friday -- is it Friday night? I think it
`
`was Friday night, Juniper filed this massive motion to knock
`
`out the entire damages case.
`
`I've done the best I can to assess it. I think there are
`
`a lot of good points in that motion. But is it good enough to
`
`say that they -- that I can cut them off at the knees now? No.
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 13 of 198
`
`PROCEEDINGS
`
` 13
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`It may be. It may be that I will be convinced in
`
`Juniper's favor after hearing the evidence. So at the end of
`
`the plaintiff's case I may direct a motion for directed verdict
`
`on that issue. But we've got a lot of other issues to try in
`
`this case, and we're going to do it.
`
`This is Juniper trying to swing for the fences. You're
`
`trying to swing for the fences. You're trying to eliminate the
`
`fact that you may well infringe this thing, and avoid that.
`
`The jury may rule against you on that point. We're going to
`
`find out. So that motion is denied.
`
`However, again, Mr. Andre, don't take heart in this. I
`
`think you've got an uphill battle, and you may win on
`
`infringement but lose on damages because you don't have a case.
`
`You swung for the fences and struck out like Babe Ruth.
`
`So that's the end of that one.
`
`Now, what's next?
`
`MR. ANDRE: Your Honor, this is the deposition we took
`
`on Friday. And this is where the 60,000 lines come from.
`
`THE COURT: I don't want to hear about it now.
`
`MR. ANDRE: Okay.
`
`THE COURT: I want to say one other thing. I want to
`
`say one other thing.
`
`If we go all the way through and you lose in this case, it
`
`would be -- if you could genuinely prove to me that the people
`
`from Irell & Manella lied to you and lied to me, that would be
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 14 of 198
`
`PROCEEDINGS
`
` 14
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`a grounds for a new trial if it was material. If it was
`
`material and they pulled the wool over my eyes in the way that
`
`you're accusing them of, maybe that would be a ground for a new
`
`trial. I would give that serious consideration.
`
`You patent lawyers do this to each other and to the judges
`
`all the time. You misdirect the Court. And I can't tell who's
`
`telling me the truth here. One of you is fudging, and I don't
`
`know who it is. But it's too -- I'm going to hear the
`
`evidence. I will understand it better at the end of the trial.
`
`And if it turns out you can demonstrate to me that in a
`
`material way Irell & Manella -- that's your firm; right? --
`
`that your firm misled me, that could be grounds for a new
`
`trial. So I put that out there.
`
`So we're -- your damages case, you can put it in to the
`
`jury the best -- you know, whatever you can muster. And it
`
`could be that at the end of that I'm going to say "not good
`
`enough." And it may be your remedy at the end is a motion for
`
`a new trial.
`
`I'm not going to say you're going to win it, Mr. Andre,
`
`I'm just saying to you, when I get these kinds of accusations
`
`of misconduct by the other side, it troubles me. And I don't
`
`know if you're telling me the truth or the other side, or
`
`whether or not that truth, if I finally understand it, would be
`
`material enough.
`
`But that's -- we're dealing -- all of this is coming to me
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 15 of 198
`
`PROCEEDINGS
`
` 15
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`in a flurry over the weekend, and you expect me to sort it out
`
`in 30 minutes before the jury comes in? I can't do that.
`
`We're going to go through this. You put in your case as best
`
`you can.
`
`All right. What's the next issue?
`
`MR. ANDRE: Your Honor, I think the only thing that
`
`will probably come today is there are some objections to the
`
`demonstrative slides.
`
`THE COURT: Let's go through them. I looked at them
`
`briefly. I looked at them briefly.
`
`MR. ANDRE: If you have --
`
`THE COURT: All right. Number 1, Ugone, is that his
`
`name?
`
`MR. KAGAN: Ugone, Your Honor.
`
`THE COURT: Ugone. What's wrong with letting him
`
`testify? You're --
`
`MR. ANDRE: Well, Your Honor, he's a rebuttal witness.
`
`THE COURT: That's a phony-baloney argument. Think of
`
`how phony that is.
`
`MR. ANDRE: Okay.
`
`THE COURT: You're saying that Ugone is relevant only
`
`if your guy testifies. Well, certainly would be if your guy
`
`testifies. But your guy's history now, because he swung for
`
`the fences and struck out. Or he did. Maybe you -- you
`
`didn't.
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 16 of 198
`
`PROCEEDINGS
`
` 16
`
`All right. So, then, okay. But I'm letting you put on a
`
`damages case anyway. Well, this is their response to your
`
`damages case.
`
`MR. ANDRE: That's fair enough, Your Honor.
`
`THE COURT: All right. Yeah, it is fair enough.
`
`MR. ANDRE: Thank you.
`
`THE COURT: Okay. What's the next problem?
`
`This one right here, I'm going to let them use it because
`
`if it turns out to be a lie, and you can prove it's a lie, then
`
`you're going to get a home run, probably, out of this case
`
`after all. So you should be praying that they put in a false
`
`statement. Okay. So I'm overruling that objection.
`
`Okay. What's next?
`
`MR. ANDRE: It is the accused product revenues.
`
`THE COURT: Yes, same thing.
`
`MR. ANDRE: Okay.
`
`THE COURT: Same thing.
`
`I want the other side to know I'm not here to protect
`
`Irell & Manella. I'm going to let them try to show that these
`
`numbers are as false as the day is long.
`
`And so I'm not saying that they are false, but it's not my
`
`job to protect you from discovery abuse or whatever. So no.
`
`If you can prove that these numbers are false, God bless you.
`
`Okay. Now, what's next? Noninfringing alternative. This
`
`one I do have a problem. Didn't I throw this out?
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 17 of 198
`
`PROCEEDINGS
`
` 17
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`MR. ANDRE: You did, your Honor.
`
`THE COURT: We had an agreement here, right in the
`
`court, that this was not going to come into evidence.
`
`MR. KAGAN: No, Your Honor, there are two different
`
`issues.
`
`THE COURT: See, this is the kind of slick behavior.
`
`I was right here and I heard you say noninfringing should come
`
`out; and you agreed.
`
`MR. KAGAN: Your Honor, what we agreed, there are two
`
`different motions in limine. The first was to exclude
`
`Dr. Cole, who is Finjan's expert, from talking about
`
`noninfringing alternatives because Your Honor had excluded the
`
`damages expert who is going to be discussing noninfringing.
`
`That was one motion, and that's what we had said was out.
`
`Our expert has his analysis of noninfringing alternatives,
`
`which is different than their expert's noninfringing
`
`alternatives.
`
`THE COURT: I will consider it at the time he
`
`testifies, but this will not -- n-o-t -- be used in the opening
`
`statement.
`
`MR. KAGAN: Yes, Your Honor.
`
`THE COURT: All right. Same thing on the next one,
`
`called "Juniper had many noninfringing alternatives."
`
`MR. KAGAN: Understood, Your Honor.
`
`THE COURT: Maximum royalty. What's wrong with this?
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 18 of 198
`
`PROCEEDINGS
`
` 18
`
`MR. ANDRE: Your Honor, given previous rulings, we'll
`
`withdraw our objection to this.
`
`THE COURT: Thank you.
`
`Look at that. They're shaking hands. They're shaking
`
`hands. That's the first time I've seen that in this case.
`
`All right. Finjan's assertion of history for the '494.
`
`What's wrong with this one?
`
`MR. ANDRE: Well, a lot of these people we didn't have
`
`to assert the patents against. They say "settled." We didn't
`
`settle the case. We entered into a license agreement. We
`
`never sued them. This is just some false information on here.
`
`We had some cases, but they say "cases settled." And I don't
`
`think that's accurate.
`
`THE COURT: I don't understand your point. You're
`
`saying that some of these were never litigated?
`
`MR. ANDRE: I believe that's correct, Your Honor.
`
`THE COURT: Was that after a demand letter?
`
`MR. ANDRE: Negotiations, yeah, talks. Your Honor,
`
`we'll -- if they want to play this game, we'll withdraw the
`
`objection.
`
`THE COURT: Thank you.
`
`What's next?
`
`MR. ANDRE: Well, they're trying to put in an
`
`exhibit --
`
`THE COURT: By the way, you can explain that. You can
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 19 of 198
`
`PROCEEDINGS
`
` 19
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`say that. You can say: They're going to put this chart up
`
`there. Be aware that those were never even litigated.
`
`What's next?
`
`MR. ANDRE: Last one is an email from John Garland.
`
`This is an exhibit that's not in evidence yet, and we're going
`
`to object to the exhibit most likely. Mr. Garland --
`
`THE COURT: Tell me, who is who here? I don't know
`
`these people.
`
`MR. ANDRE: John Garland, he is sitting back in the
`
`courtroom. He's our director of licensing. Not a good picture
`
`of him. They tend to do that as well.
`
`THE COURT: They probably went through -- I could see
`
`this was what they told the legal assistant: Go through that
`
`video and find the worse picture you can of Mr. Garland.
`
`I've had that happen in other cases. But it's not such a
`
`bad picture. What's wrong with that picture? That's not so
`
`bad. I'm not going to dig in on that ground.
`
`Okay. So it's a statement by your own guy. It's going to
`
`come into evidence. How can you avoid it not coming into
`
`evidence?
`
`MR. ANDRE: Well, it's not in evidence yet. And, you
`
`know, I think opening statement --
`
`THE COURT: What is your objection to it then? How
`
`can it not come into evidence? It's from your own guy.
`
`MR. ANDRE: Well, Your Honor, I think there is -- it's
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 20 of 198
`
`PROCEEDINGS
`
` 20
`
`not relevant to anything, because this is a statement by
`
`Mr. Garland to Juniper. And this is prejudicial, saying that
`
`he somehow reneged on the offer and accusing the other side
`
`from doing some bad behavior. I believe what they're going to
`
`try to do, Your Honor --
`
`THE COURT: It's your guy -- who is Scott, anyway?
`
`MR. ANDRE: He's the guy who recorded the phone
`
`conversation of Mr. Garland. I think they're going to try to
`
`explain that away by saying he recorded it because he wanted to
`
`protect himself because he thought Mr. Garland was being
`
`untruthful.
`
`THE COURT: They can use this because it's so clearly
`
`going to come into evidence. They can use this slide in the
`
`opening statement.
`
`MR. ANDRE: Okay.
`
`THE COURT: Is that it?
`
`MR. ANDRE: That's it from our side.
`
`THE COURT: All right. Good. What else do I need to
`
`decide?
`
`Tracy, would you call over there and see if the jurors are
`
`ready yet.
`
`THE CLERK: They are ready.
`
`THE COURT: Anything else before we bring in the jury?
`
`MR. ANDRE: Your Honor, I think the last thing is some
`
`deposition clips that were submitted to you.
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 21 of 198
`
`PROCEEDINGS
`
` 21
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`THE COURT: Yes. I want to say something to you
`
`lawyers. Don't do it the way you did it. You were supposed to
`
`give me the hard copies with the color coding. And, instead,
`
`you took it upon yourself to send an email to my CRD that came
`
`in all redacted. I can hardly read it. It was blocked out.
`
`And I spent a lot of time on it, trying to read through the
`
`darkness, to see what you all were fighting over.
`
`And your excuse was, well, it was the weekend. Too bad.
`
`You've got to do it earlier than the weekends if you want it.
`
`Now, I read every one of those, and I'm overruling every
`
`objection to everything on the original one.
`
`Then after I go through all that trouble, my law clerk
`
`said, oh, they submitted a revised version which they
`
`stipulated.
`
`I don't know what you stipulated to, but on the original
`
`version I overruled every objection. And I read every one of
`
`them, and it's proper testimony on both sides.
`
`So you all fix it up. I spent a lot of time. You've got
`
`to do it my way. You can't take it upon yourself to run the
`
`courtroom. All right. This applies to both of you.
`
`MR. ANDRE: And, Your Honor, I think the biggest issue
`
`was with the counter-designations --
`
`THE COURT: I'm not going to hear it. I've already
`
`ruled. They're all coming in.
`
`MR. ANDRE: Okay.
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 22 of 198
`
`PROCEEDINGS
`
` 22
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`THE COURT: All right. I considered it. I considered
`
`your objection. You said it was not responsive, so forth. I
`
`thought it was responsive enough. Okay.
`
`Anything else?
`
`MR. KAGAN: Your Honor, there are some interrogatories
`
`that were going to be read into the record or that were
`
`designated.
`
`THE COURT: Give them to me. I'm sorry, what do you
`
`want me to do with them?
`
`MR. KAGAN: Well, we may not need to deal with it
`
`right now because I don't believe they will be coming in
`
`immediately. But there were -- we've been having some
`
`difficulty working together in terms of getting the items to
`
`the Court. There are some corrections --
`
`THE COURT: Your thing has a handshake.
`
`(Laughter)
`
`THE COURT: You all are so good.
`
`MR. KAGAN: One thing we'll be able to agree at, by
`
`the end of trial, is that the maximum royalties in this case
`
`are less than a hundred thousand dollars and be able to shake
`
`on that.
`
`THE COURT: So what? $1, they get the $1. So what's
`
`your problem?
`
`MR. KAGAN: We don't have a problem with that. There
`
`were some interrogatory discovery responses submitted to the
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 23 of 198
`
`PROCEEDINGS
`
` 23
`
`Court, and the package was not complete. Finjan submitted the
`
`package. There were some additional materials that weren't
`
`included in that.
`
`So perhaps our request from the Court is to have the
`
`parties try to work together to correct that situation so all
`
`the materials are submitted to the Court.
`
`THE COURT: Please do that. I want you to meet and
`
`confer and reduce to a minimum the problems you two have before
`
`you serve it up to me. But I will then give it priority
`
`treatment so you can be ready.
`
`You've got to give me enough time, at least overnight, to
`
`be able to rule on the objections.
`
`MR. KAGAN: Understood, Your Honor.
`
`MR. ANDRE: And, Your Honor, I think with the
`
`interrogatory responses, the one issue that has come up is they
`
`want to change one of their responses we intend to read.
`
`THE COURT: You do not get to change a response.
`
`MR. KAGAN: Your Honor, there was -- there was a
`
`typographical error on one --
`
`THE COURT: Too bad. You read it the way it is. And
`
`put the witness on the stand, and they can explain it away.
`
`They always say it's a typo.
`
`MR. KAGAN: Well --
`
`THE COURT: But no.
`
`MR. KAGAN: Understood.
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 24 of 198
`
`PROCEEDINGS
`
` 24
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`THE COURT: All right.
`
`MR. KAGAN: The other problem was they have an
`
`interrogatory response where they want to submit the response.
`
`And they defined a term in a particular way in their
`
`interrogatory, and they don't want the jury to know the
`
`definition.
`
`THE COURT: The definition has to be part of it.
`
`Obviously, you've got to read -- if a definition is used in the
`
`interrogatory, before you can read it to the jury you must read
`
`the definitions. Then you read the response.
`
`MR. KAGAN: We'll meet and confer and clean that up
`
`for the Court, Your Honor.
`
`THE COURT: Good.
`
`MR. KAGAN: Your Honor, we do have -- you had asked
`
`for a binder of key documents. We have our binder.
`
`THE COURT: That's great. Thank you.
`
`All right.
`
`MR. ANDRE: Your Honor, is that board placed okay for
`
`you, the timeline you asked for?
`
`THE COURT: I can't read it from over here.
`
`MR. ANDRE: We can move it closer with an easel. We
`
`didn't know if you were using that easel for the voir dire.
`
`THE COURT: We don't need -- we'll find a good place
`
`for the timeline.
`
`Tracy, can you bring the names and all that over.
`
`

`

`Case 3:17-cv-05659-WHA Document 335 Filed 12/17/18 Page 25 of 198
`
`PROCEEDINGS
`
` 25
`
`By the way, the way this is going to work is that -- a
`
`couple of things to be aware of. Couple of things to be aware
`
`of.
`
`

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket