`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
`
`
`BONUTTI SKELETAL
`INNOVATIONS LLC,
`
`
`Plaintiff,
`
`
`
`v.
`
`
`
`C.A. No. 12-1107-GMS
`
`
`
`
`
`C.A. No. 12-1110-GMS
`
`
`
`
`
`C.A. No. 14-1040-GMS
`
`
`
`)))))))))))
`
`)
`
`)))))))))))
`
`)
`
`)))))))))
`
`
`
`
`
`
`ZIMMER HOLDINGS, INC. and
`ZIMMER, INC.,
`
`
`Defendants.
`BONUTTI SKELETAL
`INNOVATIONS LLC,
`
`
`Plaintiff,
`
`
`
`v.
`
`
`WRIGHT MEDICAL GROUP, INC. and
`WRIGHT MEDICAL TECHNOLOGY,
`INC.,
`
`
`Defendants.
`BONUTTI SKELETAL
`INNOVATIONS LLC,
`
`
`Plaintiff,
`
`
`
`v.
`
`
`MICROPORT ORTHOPEDICS INC.,
`
`
`Defendant.
`
`DEFENDANTS’ JOINT RESPONSE TO PLAINTIFF’S MOTION
`TO LIFT STAY AND HOLD SCHEDULING CONFERENCE
`
`
`
`Case 1:12-cv-01107-GMS Document 49 Filed 06/19/15 Page 2 of 7 PageID #: 2141
`
`I.
`
`INTRODUCTION
`
`The Defendants do not oppose lifting the stays in these matters, but they do oppose doing
`
`so in a way that would merely resurrect the same uncertainty regarding the nature and scope of
`
`Plaintiff’s infringement allegations that pervaded these cases until the Court stayed them pending
`
`inter partes review (“IPR”). Indeed, this issue arose well before the Court stayed these cases. In
`
`holding that the timeliness of Zimmer’s and Wright Medical’s IPR petitions supported a stay, the
`
`Court found that “[d]espite the Defendants’ requests for specificity, [Plaintiff, Bonutti Skeletal
`
`Innovations LLC (“Bonutti”)] did not clearly state before the IPR deadline which of the hundreds
`
`of claims in its multiple patents[1] it intended to assert against the Defendants.” (D.I. 45, at 7.)2
`
`The Court noted “Bonutti’s refusal to specify exactly which claims it intends to assert against the
`
`Defendants.” (Id. at 11.)
`
`There is no reason why the scheduling conference Bonutti requests, (D.I. 48, at 2), should
`
`be a necessary prerequisite for Bonutti to identify the asserted claims and accused products in
`
`these cases within a reasonable time—the Defendants suggest 21 days—after the Court lifts the
`
`stays. On the contrary, a scheduling conference almost certainly will be far more productive and
`
`efficient if the Court and the Defendants know, in advance of the conference, the nature and
`
`scope of Bonutti’s infringement allegations. The Defendants are not, at this time, seeking full-
`
`
`1 Bonutti asserts against Zimmer six related patents directed to knee implants: U.S. Patent
`Nos. 6,702,821 (“’821 patent”); 7,806,896 (“’896 patent”); 8,133,229 (“’3,229 patent”);
`7,837,736 (“’736 patent”); 7,959,635; and 7,749,229 (“’9,229 patent”). See Bonutti v.
`Zimmer, C.A. No. 12-1107, D.I. 10, ¶¶ 5–10. Those six patents, as issued, contained 258
`claims. See id., D.I. 36, at 7. Bonutti asserts three of those patents, the ’821, ’896, and
`’3,229 patents, against Wright Medical and MicroPort. See Bonutti v. Wright Medical,
`C.A. No. 12-1110, D.I. 7, ¶¶ 5–7; Bonutti v. MicroPort, C.A. No. 14-1040, D.I. 1, 3–5.
`Those three patents, as issued, contained 148 claims. See Bonutti v. Zimmer, C.A. No. 12-
`1107, D.I. 36, at 7.
`2 Unless otherwise indicated, citations to ECF docket entries are citations to Bonutti Skeletal
`Innovations LLC v. Zimmer Holdings, Inc., C.A. No. 12-1107-GMS (“Bonutti v. Zimmer”).
`
`2
`
`
`
`Case 1:12-cv-01107-GMS Document 49 Filed 06/19/15 Page 3 of 7 PageID #: 2142
`
`blown infringement contentions, but instead merely the identification of the specific asserted
`
`claims and accused products. Two of these cases, Bonutti v. Zimmer, C.A. No. 12-1107, and
`
`Bonutti v. Wright Medical, C.A. No. 12-1110, have been pending since September 2012. Yet, at
`
`no time in the 33 months since then has Bonutti ever identified the specific claims of the various
`
`patents-in-suit that it intends to assert against Zimmer and Wright Medical. Surely, by now,
`
`Bonutti knows which claims it intends to assert and which products it intends to accuse. Bonutti
`
`should be required to disclose that information now so that the scope of this case is defined and
`
`the Defendants do not have to proceed with continued uncertainty.
`
`II.
`
`ARGUMENT
`
`“Courts have inherent power to manage their dockets and stay proceedings, including the
`
`authority to order a stay pending conclusion of a PTO reexamination.” Ethicon, Inc. v. Quigg,
`
`849 F.2d 1422, 1426–27 (Fed. Cir. 1988) (internal citation omitted). “[T]he same court that
`
`imposes a stay of litigation has the inherent power and discretion to lift the stay.” Auto. Techs.
`
`Int’l, Inc. v. Am. Honda Motor Co., No. 06-187-GMS, 2009 WL 2969566, at *2 (D. Del. Sept.
`
`15, 2009). Accordingly, this Court has discretion to determine the terms on which a stay it has
`
`imposed should be lifted. See id.; see also FED. R. CIV. P. 16.
`
`Bonutti requests a scheduling conference before it “identifies which claims it intends to
`
`assert and which products it accuses of infringement,” (D.I. 48, at 2), but it provides no reason
`
`why it cannot or should not provide that information now. And although Bonutti claims that its
`
`position is “consistent with this Court’s typical practice,” it fails to acknowledge that, in light of
`
`the circumstances present here, these are not “typical” cases. Despite losing 28 claims of the
`
`patents-in-suit during IPR (see the table below), Bonutti chose not appeal any of the Patent Trial
`
`and Appeal Board’s (“PTAB”) decisions in the IPR proceedings. Bonutti’s strategy is apparently
`
`3
`
`
`
`Case 1:12-cv-01107-GMS Document 49 Filed 06/19/15 Page 4 of 7 PageID #: 2143
`
`to get back into court as quickly as possible to best position itself to exert pressure and attempt to
`
`coerce settlements from the remaining defendants. If, after 33 months, however, Bonutti is ready
`
`to litigate its patents, it should also be ready to make clear what, precisely, it plans to litigate so
`
`that the Defendants are not prejudiced by continued uncertainty, and neither the Court nor the
`
`Defendants have to expend further resources addressing this issue.
`
`Moreover, because the PTAB has found numerous claims of the patents-in-suit invalid as
`
`unpatentable, it has substantially shortened Bonutti’s “menu” of claims in these cases, thereby
`
`contributing to the Defendants’ uncertainty regarding not only which of the remaining claims
`
`may be at issue, but also what products may be accused of infringement and whether some of the
`
`patents-in-suit even remain at issue. As a result of the IPRs, the PTAB found the following
`
`claims of patents-in-suit to be invalid as unpatentable: claims 1 and 42 of the ’896 patent and
`
`claims 21, 22, and 31–36 of the ’736 patent. Additionally, during the course of the IPR
`
`proceedings, Bonutti voluntarily disclaimed the following claims of patents-in-suit pursuant to
`
`37 C.F.R. § 1.321(a):3 claim 1 of the ’821 patent, claim 23 of the ’9,229 patent, claims 40, 41,
`
`44–47 of the ’896 patent, claims 15–20 and 26–28 of the ’736 patent, and claim 1 of the ’3,229
`
`patent. These results are summarized in the following table:
`
`Invalidated in
`Patent‐at‐
`IPR
`Issue
`6,702,821
`‐‐
`7,749,229
`‐‐
`7,806,896 Claims 1, 42
`
`7,837,736 Claims 21, 22,
`31‐36
`
`8,133,229
`Totals:
`
`‐‐
`
`Disclaimed by
`Bonutti
`Claim 1
`Claim 23
`Claims 40, 41,
`44‐47
`Claims 15‐20,
`26‐28
`Claim 1
`
`# Original
`Claims
`
`# Invalid
`Claims
`
`# Claims
`Remaining
`
`39
`32
`48
`
`40
`
`60
`219
`
`1
`1
`8
`
`17
`
`1
`28
`
`38
`31
`40
`
`23
`
`59
`191
`
`10
`
`18
`
`
`3 Although voluntary and non-appealable, such a disclaimer has the same effect on a patent
`claim as if a court or the PTAB, for example, were to find it invalid. See 35 U.S.C. § 253.
`
`4
`
`
`
`Case 1:12-cv-01107-GMS Document 49 Filed 06/19/15 Page 5 of 7 PageID #: 2144
`
`The ongoing uncertainty regarding the identity of the asserted claims—which is already
`
`exacerbated by Bonutti’s loss of 28 claims during IPR—is compounded by similar uncertainty
`
`regarding the identity of the accused products. Although Bonutti provided cursory
`
`identifications of accused products in its complaints,4 the Defendants presently can only guess
`
`which products Bonutti actually intends to accuse. Indeed, in some cases, the fact that certain
`
`claims of the patents-in-suit are now invalid may foreclose Bonutti’s ability to maintain its
`
`infringement allegations as to those products. Therefore, just as Bonutti should be required to
`
`identify the asserted claims, it likewise should be required to identify, without further delay, the
`
`products that allegedly infringe each of those claims.
`
`In the Defendants’ view, holding a scheduling conference at the Court’s convenience is
`
`entirely appropriate, but there is no reason why a scheduling conference or related order are
`
`necessary prerequisites for Bonutti to finally disclose the scope of these cases by identifying the
`
`accused products and the specific claims each product allegedly infringes. Indeed, as noted
`
`above, a scheduling conference almost certainly will be far more productive and efficient if the
`
`Court and the Defendants know, in advance of it, the nature and scope of Bonutti’s infringement
`
`allegations.
`
`III. CONCLUSION
`
`The Defendants respectfully request that the Court exercise its discretion and order
`
`Bonutti, within 21 days of the Court’s Order lifting the stays, to serve on each Defendant an
`
`identification of (a) the Defendant’s accused products, and (b) the specific claim(s) of each
`
`
`4 See Bonutti v. Zimmer, C.A. No. 12-1107, D.I. 10, ¶¶ 15–19; Bonutti v. Wright Medical,
`C.A. No. 12-1110, D.I. 7, ¶¶ 11–14; Bonutti v. MicroPort, C.A. No. 14-1040, D.I. 1, ¶¶ 10–
`13.
`
`5
`
`
`
`Case 1:12-cv-01107-GMS Document 49 Filed 06/19/15 Page 6 of 7 PageID #: 2145
`
`asserted patent that each such accused product allegedly infringes. The Defendants submit a
`
`proposed Order herewith for the Court’s convenience.
`
`
`
`
`
`MORRIS, NICHOLS, ARSHT & TUNNELL LLP
`
`/s/ Jack B. Blumenfeld
`
`
`
`
`Jack B. Blumenfeld (#1014)
`Jeremy A. Tigan (#5239)
`1201 North Market Street
`P.O. Box 1347
`Wilmington, DE 19899
`(302) 658-9200
`jblumenfeld@mnat.com
`jtigan@mnat.com
`
`Attorneys for Defendants Zimmer Holdings,
`Inc. & Zimmer, Inc.
`
`
`
`6
`
`
`
`OF COUNSEL:
`
`Ken Liebman
`Elizabeth Cowan Wright
`FAEGRE BAKER DANIELS LLP
`2200 Wells Fargo Center
`90 South 7th Street
`Minneapolis, MN 55402
`(612) 766-7000
`
`Daniel M. Lechleiter
`FAEGRE BAKER DANIELS LLP
`300 N. Meridian Street, Suite 2700
`Indianapolis, IN 46204
`(317) 237-0300
`
`
`
`
`Case 1:12-cv-01107-GMS Document 49 Filed 06/19/15 Page 7 of 7 PageID #: 2146
`
`
`
`
`
`DUANE MORRIS LLP
`
`/s/ Richard L. Renck
`
`
`
`
`Richard L. Renck (#3893)
`222 Delaware Avenue, Suite 1600
`Wilmington, DE 19801-1659
`(302) 657-4920
`rlrenck@duanemorris.com
`
`Attorneys for Defendants Wright Medical
`Group, Inc. and Wright Medical Technology
`
`
`
`
`
`ASHBY & GEDDES
`
`/s/ Tiffany Geyer Lydon
`
`
`
`
`
`Tiffany Geyer Lydon (#3950)
`Andrew C. Mayo (#5207)
`500 Delaware Avenue, 8th Floor
`P.O. Box 1150
`Wilmington, DE 19899
`(302) 654-19899
`tlydon@ashby-geddes.com
`amayo@ashby-geddes.com
`
`Attorneys for Defendant MicroPort
`Orthopedics Inc.
`
`
`7
`
`
`
`OF COUNSEL:
`
`Anthony J. Fitzpatrick
`DUANE MORRIS LLP
`100 High Street, Suite 2400
`Boston, MA 02110-1724
`(857) 488-4200
`
`Samuel W. Apicelli
`Jeffrey S. Pollack
`DUANE MORRIS LLP
`30 South 17th Street
`Philadelphia, PA 19103
`(215) 979-1000
`
`Michael A. Albert
`Jason Honeyman
`WOLF GREENFIELD
`600 Atlantic Avenue
`Boston MA 02210-2206
`(617) 646-8000
`
`
`
`
`OF COUNSEL:
`
`
`Gary W. Smith
`James E. Kruzer
`POSTERNAK BLANKSTEIN & LUND LLP
`Prudential Tower
`800 Boylston Street
`Boston, MA 02199-8004
`(617) 973-6100
`
`
`June 19, 2015