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`vs.
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`12
`13 APPLE, INC.,
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`UNITED STATES DISTRICT COURT
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`SOUTHERN DISTRICT OF CALIFORNIA
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`WI-LAN, INC.,
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`CASE NO. 14cv2235 DMS (BLM)
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`Plaintiff,
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`Defendant.
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`JURY INSTRUCTIONS
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`DATED: _
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`__,/'---'· d~J.~· )."-'-'-'Q.___ __
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`United States District Judge
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`- 1 -
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`14cv2235
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`
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38262 Page 2 of 31
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`INSTRUCTION NO.
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`_
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`l
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`__.e_ __
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`DUTY OF JURY
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`Members of the jury: You are now the jury in this case. It is my duty to
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`instruct you on the law.
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`A copy of these instruction will be sent with you to the jury room for you to
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`consult during your deliberations.
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`It is your duty to find the facts from all the evidence in the case. To those
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`facts you will apply the law as I give it to you. You must follow the law as I give
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`it to you whether you agree with it or not. And you must not be influenced by any
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`personal likes or dislikes, opinions, prejudices or sympathy. That means that you
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`must decide the case solely on the evidence before you. You will recall that you
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`took an oath to do so.
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`Please do not read into these instructions, or anything I may say or do, that I
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`have an opinion regarding the evidence or what your verdict should be.
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`·-
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38263 Page 3 of 31
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`INSTRUCTION NO.
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`d,.
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`WHAT IS EVIDENCE
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`The evidence you are to consider in deciding what the facts are consists of:
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`1.
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`2.
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`3.
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`4.
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`the sworn testimony of any witness;
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`the exhibits that are admitted into evidence;
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`any facts to which the lawyers have agreed; and
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`any facts that I have instructed you to accept as proved.
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`I -
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38264 Page 4 of 31
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`INSTRUCTION NO. ~ ---"----
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`WHAT IS NOT EVIDENCE
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`In reaching your verdict, you may consider only the testimony and exhibits
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`received into evidence. Certain things are not evidence, and you may not consider
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`them in deciding what the facts are. I will list them for you:
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`(1) Arguments and statements by lawyers are not evidence. The lawyers are not
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`witnesses. What they may say in their opening statements, closing arguments
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`and at other times is intended to help you interpret the evidence, but it is not
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`evidence. If the facts as you remember them differ from the way the lawyers
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`have stated them, your memory of them controls.
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`(2) Questions and objections by lawyers are not evidence. Attorneys have a duty
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`to their clients to object when they believe a question is improper under the
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`rules of evidence. You should not be influenced by the objection or by the
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`court's ruling on it.
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`(3) Testimony that is excluded or stricken, or that you are instructed to disregard,
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`is not evidence and must not be considered. In addition some evidence may be
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`received only for a limited purpose; when I instruct you to consider certain
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`evidence only for a limited purpose, you must do so and you may not consider
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`that evidence for any other purpose.
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`( 4) Anything you may see or hear when the court was not in session is not
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`-
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38265 Page 5 of 31
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`evidence. You are to decide the case solely on the evidence received at the
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`trial.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38266 Page 6 of 31
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`INSTRUCTION NO.
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`i.}
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`- - - - ' - - -
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`DIRECT AND CIRCUMSTANTIAL EVIDENCE
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`Evidence may be direct or circumstantial. Direct evidence is direct proof of a
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`fact, such as testimony by a witness about what that witness personally saw or heard
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`or did. Circumstantial evidence is proof of one or more facts from which you could
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`find another fact. You should consider both kinds of evidence. The law makes no
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`distinction between the weight to be given to either direct or circumstantial evidence.
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`It is for you to decide how much weight to give to any evidence.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38267 Page 7 of 31
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`INSTRUCTION NO. 5 - - -
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`CREDIBILITY OF WITNESSES
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`In deciding the facts in this case, you may have to decide which testimony to
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`believe and which testimony not to believe. You may believe everything a witness
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`says, or part of it, or none of it.
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`In considering the testimony of any witness, you may take into account:
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`(1)
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`the opportunity and ability of the witness to see or hear or know the things
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`testified to;
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`(2)
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`the witness's memory;
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`(3)
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`the witness's manner while testifying;
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`(4)
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`the witness's interest in the outcome of the case, if any;
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`(5)
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`the witness's bias or prejudice, if any;
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`(6) whether other evidence contradicted the witness's testimony;
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`(7)
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`the reasonableness of the witness's testimony in light of all the evidence; and
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`(8)
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`any other factors that bear on believability.
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`Sometimes a witness may say something that is not consistent with something
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`else he or she said. Sometimes different witnesses will give different versions of what
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`happened. People often forget things or make mistakes in what they remember. Also,
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`two people may see the same event but remember it differently. You may consider
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`these differences, but do not decide that testimony is untrue just because it differs
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38268 Page 8 of 31
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`from other testimony.
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`However, if you decide that a witness has deliberately testified untruthfully
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`about something important, you may choose not to believe anything that witness said.
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`On the other hand, if you think the witness testified untruthfully about some things
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`but told the truth about others, you may accept the part you think is true and ignore
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`the rest.
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`The weight of the evidence as to a fact does not necessarily depend on the
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`number of witnesses who testify. What is important is how believable the witnesses
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`were, and how much weight you think their testimony deserves.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38269 Page 9 of 31
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`INSTRUCTION NO. - - - -
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`EXPERT OPINION
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`You may hear testimony from persons who, because of education or
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`experience, are permitted to state opinions and the reasons for those opinions.
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`Opinion testimony should be judged just like any other testimony. You may accept
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`it or reject it, and give it as much weight as you think it deserves, considering the
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`witness' education and experience, the reasons given for the opinion, and all the other
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`evidence in the case.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38270 Page 10 of 31
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`INSTRUCTION NO. ~t~-
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`CHARTS AND SUMMARIES NOT RECEIVED IN EVIDENCE
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`Certain charts and summaries not admitted into evidence have been shown to
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`you in order to help explain the contents of books, records, documents, or other
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`evidence in the case. Charts and summaries are only as good as the underlying
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`evidence that supports them. You should, therefore, give them only such weight as
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`you think the underlying evidence deserves.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38271 Page 11 of 31
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`INSTRUCTION NO. ___,.g'---_
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`CHARTS AND SUMMARIES RECEIVED IN EVIDENCE
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`Certain charts and summaries have been admitted into evidence to illustrate
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`information brought out in the trial. Charts and summaries are only as good as the
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`testimony or other admitted evidence that supports them. You should, therefore, give
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`them only such weight as you think the underlying evidence deserves.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38272 Page 12 of 31
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`INSTRUCTION NO. 1 - - - -
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`BURDEN OF PROOF-PREPONDERANCE OF THE EVIDENCE
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`When a party has the burden of proving any claim by a preponderance of the
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`evidence, it means you must be persuaded by the evidence that the claim is more
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`probably true than not true.
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`You should base your decision on all of the evidence, regardless of which party
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`presented it.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38273 Page 13 of 31
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`INSTRUCTION NO.
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`/0 -~ - -
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`SUMMARY OF CONTENTIONS
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`As you were previously told, Wi-LAN seeks money damages from Apple for
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`infringing ( or using) the asserted patents by making, importing, using, selling, and
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`offering for sale products covered by claims 9, 26 and 27 of the' 145 patent and claim
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`1 of the '757 patent. These are the asserted claims of the asserted patents. The
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`products that have been found to infringe or to be covered by those patent claims are
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`the iPhone 6, iPhone 6 Plus, iPhone 6s, iPhone 6s Plus, iPhone SE, iPhone 7 and
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`iPhone 7 Plus.
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`Your job is to decide any money damages to be awarded to Wi-LAN to
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`compensate it for Apple's infringement or use of the patents.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38274 Page 14 of 31
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`INSTRUCTION NO. ----llf-1-l-
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`THE ROLE OF THE CLAIMS OF A PA TENT
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`Before you can decide many of the issues in this case, you will need to
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`understand the role of patent "claims." The patent claims are the numbered sentences
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`at the end of each patent. The claims are important because it is the words of the
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`claims that define what a patent covers. The figures and text in the rest of the patent
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`provide a description and/or examples of the invention and provide a context for the
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`claims, but it is the claims that define the breadth of the patent's coverage. Each claim
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`is effectively treated as if it were a separate patent, and each claim may cover more
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`or less than another claim. Therefore, what a patent covers depends, in turn, on what
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`each of its claims covers.
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`You will first need to understand what each claim covers in order to decide
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`damages. The law says that it is my role to define the terms of the claims and it is
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`your role to apply my definitions to the issues that you are asked to decide in this
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`case. Therefore, as I explained to you at the start of the case, I have determined the
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`meaning of the claims and I will provide to you my definitions of certain claim terms.
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`You must accept my definitions of these words in the claims as being correct. It is
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`your job to take these definitions and apply them to the issues that you are deciding.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38275 Page 15 of 31
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`INSTRUCTION NO.
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`/;..
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`CLAIM CONSTRUCTION FOR THE CASE
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`I will now explain to you the meaning of some of the words of the claims in
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`this case. In doing so, I will explain some of the requirements of the claims. As I
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`have previously instructed you, you must accept my definition of these words in
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`the claims as correct. For any words in the claim for which I have not provided
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`you with a definition, you should apply their common meaning. You should not
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`take my definition of the language of the claims as an indication that I have a view
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`regarding how you should decide the issues that you are being asked to decide.
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`These issues are yours to decide.
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`Claim Term
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`Construction
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`subscriber unit / subscriber station
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`'module that receives UL [uplink]
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`'145 and '757 patents)
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`bandwidth from a base station, and allocates
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`he bandwidth across its user connections"
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`K;onnections / uplink connections /
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`~onnections established at the subscriber
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`'connections between the subscriber unit
`and its users"
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`station
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`'145 and '757 patents)
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`queue(s)
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`'145 patent)
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`'structure( s) containing data to be
`transmitted"
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38276 Page 16 of 31
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`Preamble: A subscriber unit for a wireless The preamble of Claim 26 of the '145 patent
`ls limiting
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`~ommunication system, comprising:
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`:' 145 patent, claim 26)
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`bandwidth
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`'145 and '757 patents)
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`QoS
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`'145 patent)
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`base unit
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`'145 patent)
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`quality parameter
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`'757 patent)
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`parameter value
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`:'757 patent)
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`forward error correction technique
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`,'757 patent)
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`sub-frame map
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`'757 patent)
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`'data-carrying capacity"
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`'quality of service"
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`'base station"
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`'measurable indicator of wireless reception
`quality"
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`'value based on the quality parameter"
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`~'amount of error correction data that is
`transmitted in the downlink and/or uplink"
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`'data structures that may allocate bandwidth
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`o subscriber station(s) and indicate the
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`bandwidth allocated to subscriber unit(s)
`within a particular subframe"
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`·,_
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`
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38277 Page 17 of 31
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`INSTRUCTION NO.
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`/ ~
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`HOW A CLAIM DEFINES WHAT IT COVERS
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`I will now explain how a claim defines what it covers.
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`A claim sets forth, in words, a set of requirements. Each claim sets forth its
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`requirements in a single sentence. If a device or a method satisfies each of these
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`requirements, then it is covered by the claim.
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`There can be several claims in a patent. Each claim may be narrower or broader
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`than another claim by setting forth more or fewer requirements. The coverage of a
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`patent is assessed claim-by-claim. In patent law, the requirements of a claim are often
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`referred to as "claim elements" or "claim limitations." When a thing (such as a
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`product or a process) meets all of the requirements of a claim, the claim is said to
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`"cover" that thing, and that thing is said to "fall" within the scope of that claim. In
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`other words, a claim covers a product where each of the claim elements or limitations
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`is present in that product.
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`Sometimes the words in a patent claim are difficult to understand, and therefore
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`it is difficult to understand what requirements these words impose. It is my job to
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`explain to you the meaning of the words in the claims and the requirements these
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`words impose.
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`As I just instructed you, there are certain specific terms that I have defined and
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`you are to apply the definitions that I provide to you .
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`•
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38278 Page 18 of 31
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`By understanding the meaning of the words in a claim and by understanding
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`that the words in a claim set forth the requirements that a product or process must
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`meet in order to be covered by that claim, you will be able to understand the scope
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`of coverage for each claim. Once you understand what each claim covers, then you
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`are prepared to decide the issues that you will be asked to decide.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38279 Page 19 of 31
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`INSTRUCTION NO. M
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`INFRINGEMENT - KNOWLEDGE OF THE PATENT
`AND INTENT TO INFRINGE ARE IMMATERIAL
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`Apple has been found to infringe claims 9, 26 and 27 of the '145 patent claim
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`1 of the '757 patent.
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`Someone can infringe a patent without knowing of the patent or without
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`knowing that what they are doing is an infringement of the patent. They also may
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`infringe a patent even though they believe in good faith that what they are doing is
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`not an infringement of any patent.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38280 Page 20 of 31
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`INSTRUCTION NO. JL/
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`DAMAGES-INTRODUCTION
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`Because Apple has been found to infringe the asserted patents, you must
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`consider what amount of damages to award to Wi-LAN. I will now instruct you about
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`the measure of damages.
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`The damages you award must be adequate to compensate Wi-LAN for the
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`infringement or use of the asserted patents. They are not meant to punish Apple.
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`Your damages award should put Wi-LAN in approximately the same financial
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`position that it would have been in had Apple not used Wi-LAN's patents.
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`Wi-LAN has the burden to establish the amount of its damages by a
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`preponderance of the evidence. In other words, you should award only those damages
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`that Wi-LAN establishes that it more likely than not suffered. While Wi-LAN is not
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`required to prove the amount of its damages with mathematical precision, it must
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`prove them with reasonable certainty. You may not award damages that are
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`speculative, damages that are only possible, or damages that are based on guesswork.
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`In this case, Wi-LAN seeks a reasonable royalty. A reasonable royalty is
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`defined as the money amount Wi-LAN and Apple would have agreed upon as a fee
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`for use of the invention at the time prior to when infringement began. You must be
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`careful to ensure that award is no more or no less than the value of the patented
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`invention.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38281 Page 21 of 31
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`I will give more detailed instructions regarding damages shortly. Note,
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`however, that Wi-LAN is entitled to recover no less than a reasonable royalty for each
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`infringing sale.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38282 Page 22 of 31
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`INSTRUCTION NO. J $
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`REASONABLE ROY AL TY-DEFINITION
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`A royalty is a payment made to a patent holder in exchange for the right to
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`make, use, or sell the claimed invention. A reasonable royalty is the amount of royalty
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`payment that a patent holder and one seeking to use the patent would have agreed to
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`in a hypothetical negotiation taking place at a time prior to use of the patent. In
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`considering this hypothetical negotiation, you should focus on what the expectations
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`of Wi-LAN and Apple would have been had they entered into an agreement at that
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`time, and had they acted reasonably in their negotiations. In determining this, you
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`must assume that both parties believed the patent was valid and infringed and that
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`both parties were willing to enter into an agreement. The reasonable royalty you
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`determine must be a royalty that would have resulted from the hypothetical
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`negotiation, and not simply a royalty either party would have preferred. Evidence of
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`things that happened after Apple's use of the patents can be considered in evaluating
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`the reasonable royalty only to the extent that the evidence aids in assessing what
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`royalty would have resulted from a hypothetical negotiation.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38283 Page 23 of 31
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`INSTRUCTIONNO. fl,
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`REASONABLE ROY AL TY-HYPOTHETICAL NEGOTIATION
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`In determining the royalty that would have resulted from the hypothetical
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`negotiation you may consider the facts known and available at the time of the
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`negotiation and the real world facts such as events and facts that occurred after the
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`infringement began. Here are a list of factors you may consider, though not every
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`factor may be helpful to you:
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`1)
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`the royalties received by the patentee for the licensing of the patent-in-suit,
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`proving or tending to prove an established royalty;
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`2)
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`the rates paid by the licensee for the use of other patents comparable to the
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`patent-in-suit;
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`3)
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`the nature and scope of the license, as exclusive or nonexclusive, or as
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`restricted or nonrestricted in terms of territory or with respect to whom the
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`manufactured product may be sold;
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`4)
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`the licensor's established policy and marketing program to maintain its patent
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`monopoly by not licensing others to use the invention or by granting licenses
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`under special conditions designed to preserve that monopoly;
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`5)
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`the commercial relationship between the licensor and licensee, such as whether
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`they are competitors in the same territory in the same line of business, or
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`whether they are inventor and promoter;
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38284 Page 24 of 31
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`6)
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`the effect of selling the patented specialty in promoting sales of other products
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`of the licensee, the existing value of the invention to the licensor as a generator
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`of sales ofhis nonpatented items, and the extent of such derivative or convoyed
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`7)
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`8)
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`sales;
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`the duration of the patent and the term of the license;
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`the established profitability of the product made under the patents, its
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`commercial success, and its current popularity;
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`9)
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`the utility and advantages of the patented property over the old modes or
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`devices, if any, that had been used for working out similar results;
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`10)
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`the nature of the patented invention, the character of commercial embodiment
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`ofit as owned and produced by the licensor, and the benefits to those who have
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`used the invention;
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`11)
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`the extent to which the infringer has made use of the invention and any
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`evidence probative of that use;
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`12)
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`the portion of the realizable profits that should be credited to the invention as
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`distinguished from nonpatented elements, the manufacturing process, business
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`risks, or significant features or improvements added by the infringer;
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`13)
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`the opinion and testimony of qualified experts; and
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`14)
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`the amount that a licensor (such as the patentee) and a licensee (such as the
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`infringer) would have agreed upon (at the time the infringement began) ifboth
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`
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38285 Page 25 of 31
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`had been reasonably and voluntarily trying to reach an agreement; that is, the
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`amount which a prudent licensee--who desired, as a business proposition, to
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`obtain a license to manufacture and sell a particular article embodying the
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`patented invention--would have been willing to pay as a royalty and yet be able
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`to make a reasonable profit and which amount would have been acceptable by
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`a prudent patentee who was willing to grant a license.
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`15) The value that the claimed invention contributes to the accused product.
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`16) The value that factors other than the claimed invention contribute to the
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`accused product.
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`1 7) Comparable license agreements, such as those covering the use of the
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`claimed invention or similar technology.
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`No one factor is dispositive and you can and should consider the evidence that
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`has been presented to you in this case on each of these factors.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38286 Page 26 of 31
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`INSTRUCTION NO. 1l___
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`REASONABLE ROYALTY-USE OF COMPARABLE LICENSE
`AGREEMENTS
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`When determining a reasonable royalty, you may consider evidence concerning
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`the amounts that other parties have paid for rights to the patents in question, or for
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`rights to similar technologies. A license agreement need not be perfectly comparable
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`to a hypothetical license that would be negotiated between Wi-LAN and Apple in
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`order for you to consider it. However, if your choose to rely upon evidence from any
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`other license agreements, you must account for any differences between those
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`licenses and the hypothetically negotiated license between Wi-LAN and Apple, in
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`terms of the technologies and economic circumstances of the contracting parties,
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`when you make your reasonable royalty determination.
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`
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38287 Page 27 of 31
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`INSTRUCTION NO. JlJ
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`REASONABLE ROY ALTY - ATTRIBUTION/ APPORTIONMENT
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`The amount you find as damages must be based on the value attributable to the
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`patented technology, as distinct from other, unpatented features of the accused
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`product, or other factors such as marketing or advertising, or Apple's size or market
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`position. In determining the appropriate royalty base and the appropriate royalty rate,
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`the ultimate combination of both the royalty rate and the royalty base must reflect the
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`value attributable to the patented technology. In other words, the royalty base must
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`be closely tied to the invention. It is not sufficient to use a royalty base that is too
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`high and then adjust the damages downward by applying a lower royalty rate.
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`Similarly, it is not appropriate to select a royalty base that is too low and then adjust
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`upward by applying a higher royalty rate. Rather, you must determine an appropriate
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`royalty rate and an appropriate royalty base that reflect the value attributable to the
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`patented invention alone.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38288 Page 28 of 31
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`INSTRUCTION NO. Ji_
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`REASONABLE ROY AL TY-NONINFRINGING ALTERNATIVES
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`You may also consider the impact of any available noninfringing alternatives
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`to the asserted claims on the royalty negotiated in the hypothetical negotiation. In
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`doing so, you may consider the value of any differences in benefits and costs between
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`the noninfringing alternatives and the asserted claims.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38289 Page 29 of 31
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`INSTRUCTION NO.
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`/1
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`DUTY TO DELIBERATE
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`Before you begin your deliberations, elect one member of the jury as your
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`presiding juror. The presiding juror will preside over the deliberations and serve as
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`the spokesperson for the jury in court.
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`You shall diligently strive to reach agreement with all of the other jurors if you
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`can do so. Your verdict must be unanimous.
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`Each of you must decide the case for yourself, but you should do so only after
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`you have considered all of the evidence, discussed it fully with the other jurors, and
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`listened to their views.
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`It is important that you attempt to reach a unanimous verdict but, of course,
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`only if each of you can do so after having made your own conscientious decision. Do
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`not be unwilling to change your opinion if the discussion persuades you that you
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`should. But do not come to a decision simply because other jurors think it is right,
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`or change an honest belief about the weight and effect of the evidence simply to reach
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`a verdict.
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38290 Page 30 of 31
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`INSTRUCTION NO. diJ
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`COMMUNICATION WITH COURT
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`Ifit becomes necessary during your deliberations to communicate with me, you
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`may send a note through my law clerk, signed by any one or more of you. No
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`member of the jury should ever attempt to communicate with me except by a signed
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`writing. I will not communicate with any member of the jury on anything concerning
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`the case except in writing or here in open court. If you send out a question, I will
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`consult with the lawyers before answering it, which may take some time. You may
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`continue your deliberations while waiting for the answer to any question. Remember
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`that you are not to tell anyone-including the court-how the jury stands, whether in
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`terms of vote count or otherwise, until after you have reached a unanimous verdict or
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`have been discharged.
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`r -
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`Case 3:14-cv-02235-DMS-BLM Document 840 Filed 01/24/20 PageID.38291 Page 31 of 31
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`INSTRUCTION NO. d-)
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`RETURN OF VERDICT
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`A verdict form has been prepared for you. After you have reached unanimous
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`agreement on a verdict, your presiding juror should complete the verdict form
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`according to your deliberations, sign and date it, and advise the clerk that you are
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`ready to return to the courtroom.
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