throbber
Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 1 of 201
`
` Volume 2
`
` Pages 198 - 397
`
`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
` Tuesday, December 11, 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 336 Filed 12/17/18 Page 2 of 201
`
`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 336 Filed 12/17/18 Page 3 of 201
`
` 200
`
`I N D E X
`
`
`Tuesday, December 11, 2018 - Volume 2
`
`PLAINTIFF'S WITNESSES PAGE VOL.
`
`BIMS, HARRY (RECALLED)
`(PREVIOUSLY SWORN)
`Direct Examination resumed by Mr. Andre
`Cross-Examination by Mr. Kagan
`Redirect Examination by Mr. Andre
`
`HARTSTEIN, PHILIP
`(SWORN)
`Direct Examination by Ms. Kobialka
`Cross-Examination by Ms. Carson
`Redirect Examination by Ms. Kobialka
`
`KROLL, DAVID
`(SWORN)
`Direct Examination by Mr. Hannah
`Cross-Examination by Mr. Heinrich
`Redirect Examination by Mr. Hannah
`
`NAGARAJAN, CHANDRA
`By Videotaped Deposition
`
`COLE, ERIC
`(SWORN)
`Direct Examination by Mr. Andre
`
`337
`338
`347
`359
`
`224
`225
`239
`242
`
`243
`244
`294
`324
`
`364
`
`367
`368
`
`2
`2
`2
`2
`
`2
`2
`2
`2
`
`2
`2
`2
`2
`
`2
`
`2
`2
`
` 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
`
`

`

`1
`
`22
`
`23
`
`57
`
`74
`
`91
`
`338
`
`363
`
`363
`
`388
`
`391
`
`283
`
`279
`
`263
`
`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 4 of 201
`Case 3:17-cv-05659—WHA Document 336 Filed 12/17/18 Page 4 of 201
`
`201
`
`I N D E X
`
`E X H I B I T S
`
`TRIAL EXHIBITS
`
`IDEN EVID VOL.
`
`384
`
`
`
` 201
`
`I N D E X
`
` E X H I B I T S
`
`
`TRIAL EXHIBITS IDEN EVID VOL.
`
`1
`
`22
`
`23
`
`57
`
`74
`
`91
`
`342
`
`372
`
`382
`
`
`338
`
`363
`
`363
`
`388
`
`391
`
`283
`
`279
`
`263
`
`384
`
`2
`
`2
`
`2
`
`2
`
`2
`
`2
`
`2
`
`2
`
`2
`
` 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 336 Filed 12/17/18 Page 5 of 201
`
`PROCEEDINGS
`
` 202
`
`Tuesday - December 11, 2018
`
` 7:28 a.m.
`
`P R O C E E D I N G S
`
`---000---
`
`(Proceedings were heard out of the presence of the jury:)
`
`THE COURT: All right. Be seated.
`
`Okay. I want to first -- I tried very hard but could
`
`not -- I'm handing back to Juniper all of those depositions
`
`that you handed me yesterday. I can't believe that the lead
`
`partner on this case didn't look at this before you -- look at
`
`how -- look at some of those. Some of them are so blue.
`
`They're over -- the blue highlighting is so dark you cannot --
`
`it's, like, redacted. And I tried my best with my weak eyes at
`
`age 73 to read through the blue, and I could not. I finally
`
`gave up. You've got to resubmit it.
`
`The other thing that's wrong, this is less. Please tag
`
`every place that needs a ruling. There were no tags.
`
`MR. KAGAN: Your Honor, these had tags when we
`
`submitted them. I'm not sure --
`
`THE COURT: Well, they didn't. I didn't take any tags
`
`off.
`
`Did we take any tags off?
`
`THE LAW CLERK: Those were e-mailed Sunday so we
`
`printed them out.
`
`THE COURT: Well, where's the stack that you -- I
`
`didn't hear you. Come up here and tell me.
`
` 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 336 Filed 12/17/18 Page 6 of 201
`
`PROCEEDINGS
`
` 203
`
` 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
`
`Now, see, you're getting my law clerk in trouble. You
`
`know that's going to be bad for you.
`
`(Pause in proceedings.)
`
`THE COURT: All right. So this stack right here, who
`
`gave me that stack?
`
`MR. KAGAN: This was from -- this was Finjan's
`
`submission, Your Honor.
`
`THE COURT: All right. Hand it to Finjan.
`
`MR. ANDRE: Your Honor, these --
`
`THE COURT: You're the one that's in trouble, and I'm
`
`telling you I could not read that dark blue. I tried very
`
`hard. I was almost going to give you an eye test to see if you
`
`could read it right now.
`
`All right. Now, that is impossible to read. So you've
`
`got to resubmit it.
`
`I did not -- I started trying to rule on them. I did make
`
`a few rulings, but I'm just going to start over with a fresh
`
`set.
`
`My basic idea is all of it comes into evidence, but I am
`
`not there yet. I should do my job and make rulings.
`
`All right. So there. That's -- all right. So I
`
`misunderstood.
`
`Here, I got a different stack that looked exactly the
`
`same. This one is from you and it does have the tags.
`
`All right. Now, let's see -- but I'm handing it back
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 7 of 201
`
`PROCEEDINGS
`
` 204
`
` 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
`
`because it's got dark blue too. Please. So I was correct
`
`about the dark blue. I can't read through that. It can't be
`
`so dark that it's effectively redacted. It has to be a
`
`different color or something. I don't know, pink and yellow,
`
`light green, but not dark blue.
`
`Okay. That's enough on that subject.
`
`Next, I got motions overnight. I want you to know
`
`something. You can't just bombard me with miscellaneous,
`
`big-firm objections. And this is not a deposition. This is a
`
`trial and you are acting like a big firm sending me multiple
`
`motions overnight telling me to knock out their case. Well, I
`
`don't have much patience for that.
`
`That first one, Juniper's Objections to finjan's Request
`
`to Present the Deposition Testimony of Shlomo Touboul. All
`
`right. In very short order, tell me what your objection is.
`
`MR. KAGAN: So this is not a deposition that was taken
`
`in this case. This is a deposition of their inventor from a
`
`different case from 2015.
`
`THE COURT: Is he still associated with Finjan?
`
`MR. KAGAN: Yes, Your Honor.
`
`THE COURT: No way we're going to let that. You've
`
`got to bring him yourself. You can't get away with a
`
`deposition from some other case.
`
`MR. ANDRE: Your Honor --
`
`THE COURT: Bring him from -- he lives in Israel;
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 8 of 201
`
`PROCEEDINGS
`
` 205
`
` 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
`
`right?
`
`MR. ANDRE: He lives in Israel.
`
`THE COURT: Bring him. He's your guy. He's your
`
`founder. He works for you. You can get him on an airplane and
`
`get him over here. You're not going to get away with doing
`
`that, no.
`
`MR. ANDRE: Your Honor, he has blood clot issues in
`
`his legs.
`
`THE COURT: Too bad. Too bad.
`
`MR. ANDRE: Okay.
`
`THE COURT: He's your guy trying to make millions of
`
`dollars off of this case.
`
`MR. ANDRE: Your Honor, he's not --
`
`THE COURT: That's what it is, and you're not going to
`
`get away with an in-the-can -- the key guy, an in-the-can
`
`presentation from some guy who deposed him in the year 2015 in
`
`a different case. That's beyond the pale. Motion granted.
`
`Next, Mathena, principal software engineer. Now, you
`
`claim he's not an agent and so forth.
`
`MR. KAGAN: He works -- we're hearing deposition read
`
`from his supervisor.
`
`THE COURT: All right. Let me ask you. Are you going
`
`to present him yourself?
`
`MR. KAGAN: No, Your Honor.
`
`THE COURT: Why don't you just subpoena the guy?
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 9 of 201
`
`PROCEEDINGS
`
` 206
`
`MR. ANDRE: Your Honor, we're actually -- we got this
`
`letter late last night as well. We're going to withdraw
`
`Mathena.
`
`THE COURT: Thank you.
`
`MR. ANDRE: So we'll make that move.
`
`THE COURT: Thank you.
`
`Scott Coonan.
`
`MR. ANDRE: We're not withdrawing that one.
`
`THE COURT: What?
`
`MR. ANDRE: We're not withdrawing that one.
`
`THE COURT: No, no. I'm either going to allow it --
`
`it's ridiculous for you to object to this. Either you bring
`
`Mr. Coonan in so that they can put him on the stand and do it
`
`through him, or I'm going to let him use the deposition.
`
`You're just trying to keep out that transcript where your
`
`guy did some bad things. No way.
`
`MR. KAGAN: That's not going to happen. We are
`
`presenting Mr. Coonan in our case-in-chief.
`
`THE COURT: No. Bring him so he can present him in
`
`his case-in-chief, or I'm going to let him use the deposition.
`
`MR. KAGAN: Okay. We'll make an election.
`
`THE COURT: You can use the deposition. You can use
`
`the deposition unless they supply you today with Mr. Coonan at
`
`your convenience when you want to call him.
`
`MR. ANDRE: Your Honor, he'll be for most likely
`
` 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 336 Filed 12/17/18 Page 10 of 201
`
`PROCEEDINGS
`
` 207
`
` 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
`
`tomorrow.
`
`THE COURT: All right. Then work it out. But if they
`
`don't bring him, you get to use the deposition.
`
`Next. Finjan's motion to seal because of -- no. No way
`
`we're going to do that. Those documents -- you're just
`
`trying -- Finjan wants to seal the courtroom and keep all these
`
`people out so that the rest of the world won't see what you're
`
`up to. No way. No way.
`
`MR. ANDRE: Your Honor, we're required to do that by
`
`agreement with the third party.
`
`THE COURT: Fine. You've tried. Denied.
`
`MR. ANDRE: Thank you.
`
`THE COURT: The public is going to see what Finjan is
`
`up to.
`
`Next, three, Finjan's Objections to Juniper's Exhibits for
`
`Late Disclosure. I don't know what this is even about. What
`
`is that motion about?
`
`MR. ANDRE: This is what is called the 282 disclosure.
`
`THE COURT: Yes?
`
`MR. ANDRE: They didn't make one.
`
`THE COURT: What do you mean 282?
`
`MR. ANDRE: 35 U.S.C. 282 requires a defendant in a
`
`patent case to disclose any prior art or state of the art
`
`references 30 days before trial. They just didn't make a
`
`disclosure.
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 11 of 201
`
`PROCEEDINGS
`
` 208
`
` 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
`
`We didn't think they were going to bring in prior art
`
`because validity is not in the case.
`
`THE COURT: Well, then how do you get around that?
`
`MR. HEINRICH: Well, we made multiple disclosures in
`
`this case, Your Honor.
`
`THE COURT: Did you do it within 30 days?
`
`MR. HEINRICH: Absolutely. We did invalidity
`
`contentions in this case.
`
`THE COURT: No. I mean, earlier than 30 days.
`
`MR. HEINRICH: Yes. Earlier than 30 days we did
`
`invalidity contentions back in April. We did an opening expert
`
`report in September.
`
`THE COURT: Did you disclose the specific prior art?
`
`MR. HEINRICH: Absolutely.
`
`THE COURT: Well, then, Mr. Andre, what are you
`
`talking about?
`
`MR. ANDRE: Your Honor, under 35 U.S.C. 282, giving
`
`discovery responses is not enough. You have to go in and give
`
`very specific disclosures. When I do defense work, this is
`
`something on my calendar every single time.
`
`Now, we didn't think they would be using any prior art or
`
`state of the art because that's not in the case; but yesterday
`
`they disclosed a bunch of prior art exhibits, and so --
`
`THE COURT: All right. Is this coming up for their
`
`case?
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 12 of 201
`
`PROCEEDINGS
`
`MR. ANDRE: Their case.
`
`THE COURT: I've got a little bit of time on this
`
` 209
`
`then.
`
`MR. ANDRE: Yes.
`
`THE COURT: Is it true that the law requires a
`
`specific disclosure?
`
`MR. HEINRICH: No. In fact, the law is the opposite.
`
`282 says it has to be in pleadings or otherwise in writing.
`
`There's a Federal Circuit case, Eaton v. Appliance Valves.
`
`It's 790 Fed. 2d 874 from the Federal Circuit. And that case
`
`says that the purpose of this is to avoid unfair surprise.
`
`It's not a formalistic requirement.
`
`THE COURT: But did that decision allow somebody to
`
`get away with doing it the way you did it?
`
`MR. HEINRICH: Well, it was much -- they did much less
`
`in that case, Your Honor. They --
`
`THE COURT: All right. Stop. What's the name of that
`
`decision?
`
`MR. HEINRICH: All right Eaton v. Appliance Valves.
`
`THE COURT: What do you say to Eaton?
`
`MR. ANDRE: Your Honor, I'm not familiar with that
`
`case. We cited the case in our letter we sent to you, a
`
`Federal Circuit case, that said just the opposite. So I'd have
`
`to go back and look at Eaton. They didn't give us that case
`
`last night.
`
` 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 336 Filed 12/17/18 Page 13 of 201
`
`PROCEEDINGS
`
` 210
`
` 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's not going to be up until tomorrow or the next day,
`
`so --
`
`THE COURT: Well, okay. You need by 5:00 p.m.
`
`today -- look at all these lawyers. By 5:00 p.m. today, one of
`
`these lawyers will submit a three-page brief on this subject,
`
`both sides, by 5:00 p.m. today.
`
`Next. I want to go over this. I sent out something that
`
`I'm concerned about this issue of apportionment. How does
`
`it -- I understand the Blue Coat decision, I think, but how
`
`does it work?
`
`It does make some statement. I'll read you the statement.
`
`This is the Federal Circuit talking (reading):
`
`"In such cases" -- this is a quote now. "In such
`
`cases the patentee must," quote, "give evidence tending to
`
`separate or apportion the infringer's profits and the
`
`patentee's damages between the patented features and the
`
`unpatented features and such evidence must be reliable and
`
`tangible and not conjectural or speculative."
`
`And that's citing to some case called Garretson versus
`
`Clark, U.S. Supreme Court 1884. Now, I just love it when they
`
`can find something that old. That's good. That's good. I
`
`wish we could go back to those simpler days, but here we are.
`
`They got it.
`
`Okay. (reading)
`
`"Finjan as the" -- this is your -- it was against you.
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 14 of 201
`
`PROCEEDINGS
`
` 211
`
` 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
`
`"Finjan as the present patent holder had the burden of
`
`proving damages by a preponderance of the evidence."
`
`Now, I haven't had this -- I've thought about this problem
`
`in the past but it's been a few months or years. Who has the
`
`burden of showing what the unpatented features are of an
`
`accused device?
`
`MR. ANDRE: Your Honor, I think that would be the
`
`patentee's burden. I think it's our burden, and what we're
`
`doing is --
`
`THE COURT: You haven't done that.
`
`MR. ANDRE: Well, we haven't -- we're just presenting
`
`our damages case and we're going to put a fact-based case on.
`
`And what we have -- and I'll just take a step back.
`
`I actually argued the Finjan/Blue Coat case at the
`
`Federal Circuit so I got --
`
`THE COURT: You got your head handed to you.
`
`MR. ANDRE: Just on that issue. I won everything
`
`else.
`
`THE COURT: Okay. Okay, yeah. Sorry. Good lawyers
`
`win some and they lose some, otherwise they wouldn't be any
`
`good because they can't bat 1,000.
`
`All right. Go ahead.
`
`MR. ANDRE: All right. So in that case I argued that
`
`what they called the DRTR was the small sellable unit;
`
`therefore, we get 100 percent of --
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 15 of 201
`
`PROCEEDINGS
`
` 212
`
` 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: Don't tell me about that case. I'll never
`
`get it. Just tell me, do you have the burden to show the
`
`unpatented features and then show the patented features and
`
`then apportion between them?
`
`MR. ANDRE: Yes. And so what we're doing in this case
`
`is we're doing that.
`
`THE COURT: How are you going to do that without an
`
`expert?
`
`MR. ANDRE: Well, we have their corporate
`
`representative.
`
`THE COURT: Who?
`
`MR. ANDRE: The corporate representative, 30(b)(6)
`
`witness --
`
`THE COURT: Yeah.
`
`MR. ANDRE: -- who went in and said that all the files
`
`that come into Sky ATP, only 40 percent of them get processed
`
`through the infringing components. So only 40 percent of all
`
`files.
`
`So we've already apportioned down to the -- what the
`
`Federal Circuit says the infringing and noninfringing uses. So
`
`the 60 percent is noninfringing. They do other things. They
`
`do antivirus. They do geolocation, whatever else.
`
`But 40 percent of the files come in. We have this
`
`right -- they actually ran a test. The 30(b)(6) witness ran a
`
`test and said only 40 percent of the files coming into Sky ATP
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 16 of 201
`
`PROCEEDINGS
`
` 213
`
` 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
`
`is the infringing use, the one that gets scanned and stored in
`
`the database.
`
`So we've already apportioned down to what the
`
`Federal Circuit says the infringing and noninfringing
`
`functions. The noninfringing functions would be the antivirus,
`
`for example.
`
`THE COURT: It didn't say "functions." It says
`
`"features."
`
`MR. ANDRE: Yeah. Also in the next paragraph when you
`
`talk about the DRTR after the WebPulse, it says (reading):
`
`"DRTR, which stands for ratings as part of WebPulse,
`
`and it performs both infringing and noninfringing
`
`functions."
`
`THE COURT: Where do you see the word "functions"?
`
`MR. ANDRE: It's the paragraph right here
`
`(indicating). It's right up here (indicating). It starts with
`
`"DRTR, which stands for..."
`
`THE COURT: Yeah.
`
`MR. ANDRE: At the end of that first sentence "both
`
`infringing and noninfringing functions."
`
`(Pause in proceedings.)
`
`THE COURT: All right. I see the word "functions" in
`
`that paragraph. Hold that thought.
`
`All right. What does the other side say about what I just
`
`heard?
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 17 of 201
`
`PROCEEDINGS
`
` 214
`
` 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: So there's a different and profound
`
`apportionment problem here. There are two components in the
`
`$1.8 million damages base that we've been referring to. There
`
`are the Sky ATP license revenues, which are just $550,000.
`
`That's -- you know, if the 40 percent applies to anything, it
`
`would apply to that.
`
`But then we also included in the damages base 100 percent
`
`of the revenues of every SRX device that was enabled to use --
`
`THE COURT: You said that's what you did?
`
`MR. HEINRICH: Well, every --
`
`THE COURT: You said "we." You said "we."
`
`MR. HEINRICH: So, yeah. In the $1.8 million -- so
`
`Juniper included the revenues of the -- 100 percent of the
`
`revenues of every SRX device that was enabled for use with
`
`Sky ATP. That's 1.25 million.
`
`So of that 1.25 million, that covers all of the
`
`functionalities of an SRX. It uses a router. It uses a
`
`firewall. Substantial uses, the vast majority of which have
`
`absolutely nothing at all to do with Sky ATP.
`
`THE COURT: Perhaps that's right, but if you yourself
`
`have included it all in the damages base -- I guess it's the
`
`damages base -- then why do you even have a grievance? Why
`
`can't they do the same thing?
`
`MR. HEINRICH: Well, you have to apportion. They have
`
`the burden to apportion those revenues.
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 18 of 201
`
`PROCEEDINGS
`
` 215
`
` 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: Did you apportion it?
`
`MR. HEINRICH: So our expert, he looked at various
`
`value indicators and he came up with his $100,000 royalty, but
`
`their burden is to --
`
`THE COURT: But did you apportion it?
`
`MR. HEINRICH: So Dr. Ugone apportioned it
`
`differently.
`
`THE COURT: How did he do that?
`
`MR. HEINRICH: He looked at multiple value indicators;
`
`for example, Juniper's noninfringing alternatives. He looked
`
`at Finjan licenses. And those value indicators all pointed to
`
`a reasonable royalty in the range of $100,000.
`
`But the important thing here is that the revenues
`
`associated with SRXs, those revenues, it's their burden to
`
`apportion those revenues; and they can't do that because the
`
`SRX used as a firewall, used as a router, that's the main
`
`99 percent use case of these devices, and they have no evidence
`
`at all to do anything with SRX revenues.
`
`So the 40 percent that we just heard, that would be
`
`40 percent of 550,000. So, then, that would make this case
`
`about, like, a $200,000 damages base.
`
`THE COURT: Well, you know, there was a time in my
`
`life when that wasn't worth fighting over. I am not saying you
`
`can't -- people go to trial over -- you know, when I was a
`
`teenager, there was a case that got all the way to the
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 19 of 201
`
`PROCEEDINGS
`
` 216
`
` 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
`
`Supreme Court over one cent. It was a postage due. The
`
`government put a one cent postage due and refused to deliver so
`
`the guy had to pay the one cent and he sued. And the U.S.
`
`Supreme Court hated the Post Office so much, they took the case
`
`and ruled for the one guy and gave him his one cent back.
`
`So if Finjan wants to fight over $100,000, God bless them.
`
`It's okay.
`
`MR. HEINRICH: So I totally agree, but they should not
`
`get to put on a damages case that has anything at all to do
`
`with SRX revenues because they have zero evidence to apportion
`
`those revenues.
`
`THE COURT: Oh, I'm going to -- all right. No, I'm
`
`not sure yet. You may be right but you may be wrong, and I
`
`think the safe thing is for me to at least hear -- I'm going to
`
`at least hear the plaintiff's case and then I'm going to decide
`
`if it's sufficiently apportioned. I'm going to consider that
`
`question then.
`
`But you've helped me on the point that bothered me the
`
`most, which is the way I read it, which I agree with you, this
`
`is the way I probably would have read this is that you have the
`
`burden to apportion in some not just rational way, something
`
`that meets the standard of the Blue Coat decision.
`
`MR. ANDRE: Your Honor, we will do so.
`
`THE COURT: All right. I will -- that's yet to be
`
`determined, but we will see.
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 20 of 201
`
`PROCEEDINGS
`
` 217
`
` 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
`
`All right. Now, I have more questions.
`
`All right. I've covered everything on my list.
`
`All right. Do you have anything to bring up?
`
`MR. ANDRE: A couple housekeeping matters from our
`
`point, Your Honor. One is, you said at the pretrial conference
`
`if the parties agreed to hand in the witnesses' witness
`
`binders, we could do so. The parties have stipulated to that.
`
`I just wanted to give Your Honor a heads-up. We talked to the
`
`clerk.
`
`THE COURT: All right. But you should be aware --
`
`that's fine. You should be aware that whatever goes into
`
`evidence is what Tracy, my courtroom deputy, has got; and if
`
`there is a glitch and she has something in her stack that turns
`
`out to be what you didn't understand, too bad. It's strict
`
`liability. Whatever Tracy has, if Exhibit 17 goes into
`
`evidence, whatever she has with 17 on it goes into the jury
`
`room whether you think you were tricked or not.
`
`It's your burden to check these and I'm telling you, the
`
`lawyers in other cases just like those redactions, just like
`
`those highlighting that you gave me, they're impossible to
`
`read, somebody on somebody's team will make a mistake and then
`
`you'll be trying to get -- I will not bail you out. It's
`
`strict liability. Once Tracy's got it, that's it.
`
`Fine. So you can use your notebooks.
`
`MR. ANDRE: The second --
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 21 of 201
`
`PROCEEDINGS
`
` 218
`
` 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: You're both taking a risk. I guess it's
`
`fair.
`
`MR. ANDRE: The second issue is the procedure you
`
`would like us to use for the depositions that we do play --
`
`there are some that will be played today and possibly
`
`tomorrow -- how you would like that to go into evidence. The
`
`transcript itself, do you want us to submit a written
`
`transcript?
`
`THE COURT: All right. That's a very good question,
`
`and here's the only practical way to do this. First, the court
`
`reporter does not take it down. The court reporter takes down
`
`spoken words here, not things that are played, not recordings.
`
`You-all understand that. So it will be a blank spot. It will
`
`just say "Recording Played."
`
`So the only way the Court of Appeals can see or the jury
`
`can see it again is that you have to have a disc of what was
`
`shown to the jury, and then that disc gets marked as an exhibit
`
`that you both vet and then you give it to Tracy and that
`
`becomes part of the clerk's record. So I have to trust you to
`
`do it exactly right. So it's not going to be a transcript. It
`
`will be the video.
`
`MR. ANDRE: Okay. Thank you, Your Honor.
`
`MS. CARSON: Your Honor, just two issues with two
`
`demonstratives for witnesses today. So plaintiff disclosed for
`
`Mr. Hartstein Demonstrative Number 2. It appears to be a
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 22 of 201
`
`PROCEEDINGS
`
` 219
`
` 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
`
`photograph of a flyer that was not produced or put on the
`
`exhibit list, so we object to that as late disclosure.
`
`THE COURT: Well, wait a minute. Was this
`
`demonstrative attached to his report?
`
`MS. CARSON: He's not an expert, sir.
`
`THE COURT: Then who is he?
`
`MS. CARSON: He's their CEO. So it's a -- it appears
`
`to be a photograph of a document that was not produced during
`
`discovery.
`
`THE COURT: May I see it, please? Who are you again?
`
`MS. MARTINEZ: I'm Cristina Martinez, Your Honor.
`
`THE COURT: Are you a lawyer?
`
`MS. MARTINEZ: I am, yes.
`
`THE COURT: Okay. I don't get it. What's the --
`
`MS. MARTINEZ: So, Your Honor, this is just a
`
`demonstrative of one of Finjan's product offings. And it's not
`
`being introduced into evidence. This was actually -- it's just
`
`a blowup of a demonstrative that they had in their office.
`
`THE COURT: "They" being the other side?
`
`MS. MARTINEZ: Being Finjan.
`
`And we disclosed it as a demonstrative board on Saturday
`
`morning, a large board. We sent a picture over. We didn't get
`
`any objection. It's actually right here (indicating). And
`
`there was no objection to the demonstrative, and what we did
`
`for Mr. Hartstein was we just shrunk that to a smaller version
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 23 of 201
`
`PROCEEDINGS
`
` 220
`
`so that it could be shown electronically to the jury as well so
`
`that to the extent we need to zoom in at all.
`
`THE COURT: Well, okay. But what is the basic point
`
`that you're trying to make with this?
`
`MS. MARTINEZ: This is just to show the product
`
`offering of --
`
`THE COURT: Whose product?
`
`MS. MARTINEZ: Of Finjan.
`
`THE COURT: Your own product?
`
`MS. MARTINEZ: Correct.
`
`THE COURT: And the purpose for that is to show that
`
`you're a real company that has real products as opposed to an
`
`NPE; right?
`
`MS. MARTINEZ: Yes. Correct, Your Honor. And there's
`
`also information about the product and then also the patent is
`
`here at the bottom as well.
`
`THE COURT: You mean Finjan sells that product down
`
`there?
`
`MS. MARTINEZ: Yes. This is their --
`
`THE COURT: It looks like you sell your own phone.
`
`MS. MARTINEZ: Not the phone, Your Honor. It's an
`
`actual app. It's an app for your phone. So it's their
`
`VitalSecurity app.
`
`THE COURT: I see.
`
`MS. CARSON: Your Honor, it appears on the bottom that
`
` 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 336 Filed 12/17/18 Page 24 of 201
`
`PROCEEDINGS
`
` 221
`
` 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
`
`there is some marking, and we requested evidence of marking of
`
`the product during discovery. They never produced this during
`
`discovery. They never put it on their exhibit list. They just
`
`put it on a poster board, and we don't think that's
`
`appropriate.
`
`THE COURT: But wait. What does it show about
`
`marking? I don't get it.
`
`MS. CARSON: So at the very bottom in fine print the
`
`patent number appears.
`
`THE COURT: I don't see anything. My eyesight --
`
`here, draw a circle around what you want me to look at on that
`
`document.
`
`(Attorney complying.)
`
`THE COURT: You can read that? I can't read it.
`
`MS. MARTINEZ: That's why we put it on the board,
`
`Your Honor; and the purpose of having disclosed this in a
`
`smaller version is that if it's shown to the jury, we can --
`
`THE COURT: Are you going to be trying to use this to
`
`show that there was marking?
`
`MS. MARTINEZ: Yes, Your Honor.
`
`THE COURT: Well, that should have been turned over to
`
`them. This is not demonstrative. This is being used as actual
`
`proof; and then in the closing argument you're going to be
`
`saying "We showed you the demonstrative" but it won't be in
`
`evidence. A demonstrative doesn't come into evidence.
`
`

`

`Case 3:17-cv-05659-WHA Document 336 Filed 12/17/18 Page 25 of 201
`
`PROCEEDINGS
`
` 222
`
` 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
`
`MS. MARTINEZ: Correct, Your Honor. We have other
`
`documents as well that do show the markings. So this is just,
`
`you know, a further -- further evidence.
`
`THE COURT: No. You're not going to be allowed to use
`
`something for substantive proof that you didn't disclose in
`
`response to their -- well, you should have put it in your
`
`initial disclosures. You should have --
`
`Did you ask for it in a document request?
`
`MS. CARSON: We did and also in an interrogatory.
`
`THE COURT: Did they?
`
`MS. MARTINEZ: They did, Your Honor.
`
`THE COURT: Well, then, you should have produced this
`
`document in response and you did not.
`
`Now, I'm sure they are guilty of this too. So before the
`
`trial is over, you'll get to say, "Remember, Judge, you
`
`excluded this document." And then they will be coming up with
`
`lame excuses trying to figure out a way around that.
`
`But, remember, this is going to work against you too.
`
`Okay. The Juniper people win on that one.
`
`MS. CARSON: There's one more as well. It's a
`
`demonstrative to their expert's testimony, also Demonstrative
`
`Number 2, and it was not disclosed with expert reports. We
`
`request that that be excluded as well.
`
`THE COURT: All right. What do you say to that one?
`
`MR. ANDRE: Your Honor, it's a video of the CNM Web
`
`

`

`Case 3:17

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