`Case 1:13-cv-00919-JLH Document 605-1 Filed 09/08/23 Page 1 of 104 PagelD #: 61930
`
`EXHIBIT A
`EXHIBIT A
`
`
`
`Case 1:13-cv-00919-JLH Document 605-1 Filed 09/08/23 Page 2 of 104 PageID #: 61931
`
` 1
`
` 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
`
` 2
`
`IN THE UNITED STATES DISTRICT COURT
`
`FOR THE DISTRICT OF DELAWARE
`
`)
`ARENDI S.A.R.L.,
` )
` )
` Plaintiff, )
` ) C.A. No. 13-919-JLH
`v. )
` )
`GOOGLE LLC,
`)
` )
` Defendant. )
`
`
`
`
`
`
`
`
`Monday, April 24, 2023
`9:00 a.m.
`Jury Trial
`
`Volume I
`
`Sealed
`
`* * *
`
`844 King Street
`Wilmington, Delaware
`
`BEFORE: THE HONORABLE JENNIFER L. HALL
`United States Magistrate Judge
`
`
`
`
`APPEARANCES:
`
`
` SMITH, KATZENSTEIN & JENKINS LLP
` BY: NEAL C. BELGAM, ESQ.
`
` -and-
`
` 3
`
`
`
`P R O C E E D I N G S
`
` 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
`
` 2
`
`APPEARANCES CONTINUED:
`
`
`
` SUSMAN GODFREY, LLP
` BY: JOHN LAHAD, ESQ.
` BY: KEMPER DIEHL, ESQ,
` BY: MAX STRAUS, ESQ.
` BY: SETH ARD, ESQ.
` BY: KALPANA SRINIVASAN, ESQ.
` Counsel for the Plaintiff
`
`
`
`
`
` POTTER ANDERSON & CORROON
` BY: DAVID ELLIS MOORE, ESQ.
`
`
`-and-
`
`
` PAUL HASTINGS
` BY: ROBERT W. UNIKEL, ESQ.
` BY: CHAD J. PETERMAN, ESQ.
` BY: MATTHIAS A. KAMBER, ESQ.
` BY: ANDREA ROBERTS, ESQ.
` Counsel for the Defendant
`
`
`
`
`
`
`
`
`
`
`
`_ _ _ _ _ _ _ _ _ _
`
` 4
`
`Google.
`
`Google.
`
`MR. PETERMAN: Chad Peterman on behalf of
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`
`
`(Proceedings commenced in the courtroom beginning at
`
`9:00 a.m.)
`
`
`
`THE COURT: Please be seated.
`
`Okay. The first day of trial, we're getting
`
`off to a rocky start here. Let's have appearances for the
`
`record.
`
`MS. SRINIVASAN: Kalpana Srinivasan of Susman
`
`Godfrey on behalf of Arendi.
`
`MR. ARD: Seth Ard, Susman Godfrey, on behalf
`
`of Arendi. Good morning, Your Honor.
`
`MR. LAHAD: John Lahad, Susman Godfrey, on
`
`behalf of Arendi. Good morning, Your Honor.
`
`MR. BELGAM: Neal Belgam for Arendi, Your
`
`Honor.
`
`MR. DIEHL: Kemper Diehl from Susman Godfrey,
`
`on behalf of Arendi, Your Honor.
`
`THE COURT: Okay.
`
`MR. UNIKEL: Robert Unikel on behalf of Google.
`
`MS. ROBERTS: Andrea Roberts on behalf of
`
`Google.
`
`MR. KAMBER: Matthias Kamber on behalf of
`
` 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: Okay.
`
`MR. BELGAM: Your Honor, we have Max Straus,
`
`also for Arendi.
`
`THE COURT: All right. Very good. So for the
`
`record, I've got a big stack of papers, much of which has
`
`come in over the weekend, in the last 48 hours. So let's
`
`start working through this.
`
`It's 9:02. We'll get started. I had intended
`
`to take the bench at 8:30, but we didn't have everyone
`
`here. I won't dock the time today, but I'm frustrated by
`
`the situation, that we didn't have everybody here so we
`
`could get started.
`
`So we have the jurors waiting in the jury room.
`
`We're going to have them sit here while we go through some
`
`of this stuff. So let's get started.
`
`So first up on my list -- all right -- has to
`
`do with IPR estoppel. So I have letters from the parties
`
`that 456, 457, 463, and 464 on this issue. So the record
`
`is clear, here's my understanding of how we got to where
`
`we are today. This case has been pending since 2013, well
`
`before I took the bench.
`
`Back in 2013, Apple, Google, and Motorola
`
`
`
`Case 1:13-cv-00919-JLH Document 605-1 Filed 09/08/23 Page 3 of 104 PageID #: 61932
`
` 5
`
` 6
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`petitioned for IPR of the '843 patent on a number of
`
`grounds. The PTAB only instituted review on one ground,
`
`obviousness over a reference called Pandit. After the IPR
`
`concluded and litigation resumed, Arendi moved for partial
`
`summary judgment that Google was prevented from asserting
`
`certain invalidity grounds as a result of IPR estoppel.
`
`Judge Stark assessed Arendi's motion in his
`
`memorandum opinion at docket Number 391. As Judge Stark's
`
`opinion explained, Arendi's motion argued that Google was
`
`estopped from raising a number of different pieces of
`
`prior art, including a piece of prior art that the parties
`
`refer to as the CyberDesk system.
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`estopped references, Google was not estopped from raising
`
`the public use of the CyberDesk system as part of an
`
`obviousness combination with other non-estopped
`
`references.
`
`However, Judge Stark's memorandum opinion did
`
`not resolve the issue of whether Google was estopped from
`
`raising the public use of the CyberDesk system as a
`
`reference alone or in combination with other estopped
`
`references. He pointed out that the public use of the
`
`system is prior art that cannot be raised in an IPR.
`
`However, he also stated the following: "In
`
`invalidity grounds, based on a physical product which
`
`could not have been raised during an IPR, see 35 U.S. Code
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`There appears to have been no dispute that
`
`Google could have presented in the IPR certain patents and
`
`printed publications that describe aspects of the
`
`CyberDesk system. However, Google contends that the
`
`CyberDesk system itself qualifies as prior art because it
`
`was publicly used prior to the relevant date.
`
`In his opinion, Judge Stark held that Google
`
`was not estopped from asserting a ground of
`
`unpatentability that included combinations of references
`
`that consisted of estopped art with non-estopped art.
`
`In other words, he included that even if Google
`
`were estopped from raising the public use of the CyberDesk
`
`system as a reference alone or in combination with other
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`311(b), may be subject to IPR estoppel if the publication
`
`described in the physical product could have been raised
`
`as an invalidity ground during the IPR."
`
`And he pointed to one of his previous opinions
`
`for the proposition that an invalidity ground involving a
`
`physical product is barred in litigation if a publication
`
`reasonably could have been raised in the IPR that is
`
`materially identical to the physical product. In that
`
`circumstance, the physical product is entirely cumulative
`
`on the estopped prior art publication.
`
`Regarding Google's assertion that the public
`
`use of the CyberDesk system was non-estopped prior art,
`
` 7
`
` 8
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`Judge Stark observed that Google's invalidity expert,
`
`Dr. Fox, expressly relied on the deposition transcript of
`
`the developer of the CyberDesk system, Dr. Dey; and that
`
`Google contended that Dr. Dey explained certain CyberDesk
`
`features that are not disclosed in publications that
`
`describe the CyberDesk system.
`
`Judge Stark concluded that there was at least a
`
`genuine issue of material fact as to whether the CyberDesk
`
`system is cumulative of the prior art publications that
`
`could have been raised during the IPR of the '843 patent.
`
`And he said that the dispute creates a fact issue that was
`
`not amenable to resolution on a motion for summary
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`Court to preclude Google from taking any position contrary
`
`to the Court's prior orders or its stipulations. But, of
`
`course, that motion could not possibly have covered
`
`Google's introduction of evidence relating to the
`
`CyberDesk system because, as I just explained, Judge Stark
`
`denied Arendi's motion to estop Google from asserting the
`
`CyberDesk system.
`
`At the pretrial conference, Arendi made what I
`
`can only describe as a stealth motion regarding IPR
`
`estoppel.
`
`In the context of discussing its motion in
`
`limine to preclude Google from taking any position to
`
`contrary to the Court's prior orders or its own
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`judgment.
`
`That was back in March of 2022. Arendi did not
`
`request reargument, nor did Arendi at that time request a
`
`bench trial on the issue of IPR estoppel, or a
`
`determination from the Court based on the record.
`
`Fast forward to 2023, prior to the pretrial
`
`conference, the parties filed a proposed pretrial order.
`
`Arendi did not ask for a bench trial prior to the jury
`
`trial and the proposed pretrial order, nor did it
`
`otherwise flag for the Court prior to the trial conference
`
`that the issue of IPR estoppel needed to be decided before
`
`the jury trial.
`
`One of Arendi's motions in limine asked the
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`stipulations, Arendi said that Google should not be able
`
`to introduce combinations of art that Judge Stark had
`
`previously held were estopped.
`
`Then it said -- and this is the stealth part --
`
`also the Court will need to rule on other prior art that
`
`should be estopped based on inter partes review estoppel
`
`before trial, and any -- those should also be excluded.
`
`At that point in time, I had no idea what
`
`Arendi was talking about because this hadn't previously
`
`been flagged as an issue that needed resolution before
`
`trial. We then engaged in a discussion about when Google
`
`would disclose the final obviousness combinations that it
`
`
`
`Case 1:13-cv-00919-JLH Document 605-1 Filed 09/08/23 Page 4 of 104 PageID #: 61933
`
` 9
`
` 10
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`intended to raise at trial.
`
`And I said that Arendi could raise whatever
`
`remaining dispute it had about prior art references in a
`
`letter after it received those combinations. But, again,
`
`I had no idea at that time, and I certainly wasn't made
`
`aware that Arendi's concern actually had to do with prior
`
`art references that Judge Stark had already addressed in
`
`his prior opinion.
`
`Then on April 11, five days after the pretrial
`
`conference, and over a year after Judge Stark addressed
`
`the same issue, I got a letter from Arendi that said --
`
`DI 256, again asking the Court to preclude Google from
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`The motion in limine that Arendi did file for
`
`the pretrial order asked for a ruling that defendant
`
`couldn't violate Court prior orders. However, there was
`
`never any ruling out of this Court saying that Google was
`
`estopped from asserting the CyberDesk system; thus, the
`
`arguments it now brings are wholly unrelated to the motion
`
`in limine that Arendi did file.
`
`Second, Arendi's request to exclude all
`
`combinations of prior art that include CyberDesk is denied
`
`to the extent that it is inconsistent with Judge Stark's
`
`prior ruling that IPR estoppel does not prevent Google
`
`from presenting obviousness combinations that consist of
`
`estopped references in combination with non-estopped
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`presenting at trial any combinations of prior art that
`
`used CyberDesk.
`
`Arendi's request is denied for several
`
`independent reasons.
`
`First, the timing. This request is just too
`
`late. If Arendi thought there were open issues that
`
`needed resolution prior to trial, Arendi had multiple
`
`chances to bring them to the Court. A motion for
`
`reargument before Judge Stark, a request in the pretrial
`
`order for a bench trial prior to the jury trial, or an
`
`express request in the pretrial order that the Court
`
`decide the issue before trial on the written record, or
`
`even a motion in limine.
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`references.
`
`Third, Arendi says that an evidentiary hearing
`
`is not required for the Court to rule on the issue of
`
`estoppel. That's that document 463. And on the record
`
`presently before the Court, I find that Arendi has failed
`
`to meet its burden to prove estoppel.
`
`The law says that: "A petitioner in an
`
`inter partes review may request to cancel as unpatentable
`
`one or more claims of a patent only on a ground that could
`
`be raised under Section 102 or 103 only on the basis of
`
`prior art consisting of patents and printed publications."
`
`Google says that the CyberDesk system is prior
`
` 11
`
` 12
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`art because it was in public use prior to the relevant
`
`date. Public use is a separate category of art from
`
`patents in publications. The record before the Court
`
`suggests that Google intends to show that the CyberDesk
`
`system anticipates and was in public use prior to the
`
`relevant date.
`
`The evidence Google seeks to present to prove
`
`anticipation comes from testimony of a developer who
`
`demonstrated the system in public and various printed
`
`publications that describe aspects of the system,
`
`including nine printed publications, one conference
`
`poster, the developer's thesis notes, and some other
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`publications are cumulative to the evidence that Google
`
`intends to present at trial.
`
`Judge Stark seemed receptive to that argument,
`
`but he didn't decide it. I'm less receptive.
`
`Instead, I agree with the approach and analysis
`
`laid out by Judge Noreika in her opinion in Chemours vs.
`
`Daikin. That's at 2022 Westlaw 2643517.
`
`And I conclude that as a matter of statutory
`
`interpretation, estoppel does not apply to Google's
`
`invalidity arguments that rely on a prior public use of
`
`the CyberDesk system whether or not its testimonial and
`
`written evidence of that system is cumulative to the art
`
`that Google could have raised in the IPR.
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`materials like source code and slides.
`
`I'm not persuaded that Google could have raised
`
`that anticipation argument in the IPR, at least for the
`
`reasons that involves combining evidence from multiple
`
`sources to show that a single prior art system had all the
`
`limitations, and it relies on the public use of the
`
`invention which could not have been raised in the IPR.
`
`Likewise, I'm not persuaded that Google could
`
`have raised public use of the CyberDesk system as part of
`
`obviousness combination in the IPR.
`
`Arendi points out that Google could have raised
`
`in the IPR patents and printed publications that describe
`
`CyberDesk. And it contends that those patents and printed
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Arendi says that the CyberDesk system is
`
`nonexistent; however, Google intends to present testimony
`
`that it did exist and that it was publicly demonstrated
`
`even though there was no working system fully presented at
`
`trial.
`
`Arendi also says that pursuant to the
`
`corroboration rule, Dr. Dey, a developer of the CyberDesk
`
`system, can only testify about aspects of the system that
`
`are also described in the printed publications.
`
`Arendi argues that because Dey can't testify
`
`about additional aspects, the publications are, by
`
`definition, cumulative to what he can testify about.
`
`
`
`Case 1:13-cv-00919-JLH Document 605-1 Filed 09/08/23 Page 5 of 104 PageID #: 61934
`
` 13
`
` 14
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`I reject that argument, at least for the reason
`
`that I disagree that the corroboration rule prevents
`
`Dr. Dey from testifying about aspects of a prior art
`
`system that are not described in patents and printed
`
`publications.
`
`To be clear, this is not a case where the only
`
`evidence of a prior art public use is a reference that a
`
`patentee could have raised in an IPR. I could imagine a
`
`hypothetical case where there is an advertisement of a
`
`prior art device that an IPR challenger could have
`
`presented in an IPR as a printed publication.
`
`If the advertisement were the only evidence of
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`But, of course, we don't know what will happen
`
`at the trial. Accordingly, my ruling is that Google is
`
`not estopped from raising the public use of the CyberDesk
`
`system as prior art.
`
`My ruling is without prejudice for Arendi to
`
`reraise it should it appear that Google's only evidence of
`
`a prior public use is a publication that could have been
`
`raised in the IPR.
`
`And that concludes my ruling on that issue.
`
`Hopefully that takes care of letters 456, 457, 463, and
`
`464.
`
`I realized, after I started, that it's possible
`
`that Google has furthered limited its combinations to
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`a prior public use of an invention, I might be receptive
`
`to the argument that defendant cannot escape IPR estoppel
`
`by saying that the same reference is also evidence of a
`
`prior public use. But the record reflects that is not the
`
`case here.
`
`Google says that it intends to prove prior use
`
`of the CyberDesk system through a combination of testimony
`
`and multiple public and nonpublic documents. Thus, even
`
`if there were a narrow exception that precluded evidence
`
`of prior public use when the only such evidence is
`
`materially identical to a single printed publication it
`
`could have been raised in the IPR, that exception would
`
`not apply here.
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`render this issue moot.
`
`Is Google still intending to rely on the
`
`CyberDesk system?
`
`MR. UNIKEL: We are, Your Honor.
`
`THE COURT: All right. Okay. Good.
`
`All right. Let's move on to the next issue I
`
`have on my list. That is issue is the Samsung license
`
`defense. I have letters that 469 and 472.
`
`By the way, the first -- it took me about
`
`12 minutes to read that first ruling. That time will be
`
`charged to Arendi.
`
`Okay. Next, we have Google's letter filed at
`
` 15
`
` 16
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`469, and Arendi's response at 472.
`
`Google has, again, reraised the issue of
`
`Samsung license defense. Google recently raised this
`
`issue in its motion to strike. That was that document
`
`Number 419. There, Google asked the Court to strike a
`
`portion of Arendi's expert report providing a damages
`
`figure that factored in apps on Samsung devices.
`
`At the pretrial conference, I declined to do so
`
`stating that essentially Google was seeking a pretrial
`
`ruling that infringement is licensed when the accused apps
`
`are on Samsung devices. And that's an issue that, in my
`
`view, should have been appropriately raised for a motion
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`that its apps on Samsung devices are licensed is denied.
`
`Here, again, Google has essentially requested
`
`summary judgment on a defense of license. The request is
`
`denied for the same reasons I denied it at the pretrial
`
`conference.
`
`To the extent Google believes that it has a
`
`valid license defense and that the license at issue needs
`
`to be construed by the Court prior to that defense going
`
`to the jury, that is something that could be taken care of
`
`with jury instructions.
`
`Google's letter also asks the Court to clarify
`
`what evidence and arguments regarding the agreement the
`
`parties may present to the jury by deciding as a matter of
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`for partial summary judgment. And, of course, the
`
`deadline for filing those motions has long passed.
`
`In its present letter, Google once again asked
`
`the Court to preclude Mr. Weinstein's damages testimony to
`
`the extent it includes apps on Samsung devices, because
`
`according to Google, apps on those devices are licensed.
`
`Google says it will be prejudiced in multiple
`
`ways if Arendi is allowed to present evidence of damages
`
`that include damages for apps on Samsung devices, but
`
`Google's claims of prejudice are all grounded in its
`
`assertion that the testimony is improper because those
`
`uses are licensed.
`
`Google's request for a pretrial determination
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`law whether or not the agreement is ambiguous.
`
`To the extent I understand Google's request, it
`
`apparently does not want to present certain evidence at
`
`trial relevant to its license defense. And it might
`
`either win or lose that defense as a matter of law post
`
`trial, but that's the point of the summary judgment
`
`motion.
`
`Google thought the license defense was
`
`dispositive of an issue and had the opportunity to ask for
`
`summary judgment on that issue. It's too late to raise
`
`that now.
`
`Google says that it wants a ruling from the
`
`
`
`Case 1:13-cv-00919-JLH Document 605-1 Filed 09/08/23 Page 6 of 104 PageID #: 61935
`
` 17
`
` 18
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`Court as to whether or not the agreement is unambiguous or
`
`ambiguous so that it can determine what jury instructions
`
`are appropriate. That, in my view, has it backwards.
`
`If there is a triable defense that's properly
`
`part of the case that's not been disposed of on summary
`
`judgment, it's going to get tried.
`
`If Google thinks that the jury needs to be
`
`instructed on the meaning of a written contract as part of
`
`that defense, it is incumbent upon Google to propose a
`
`jury instruction, and it has not proposed any jury
`
`instructions on this issue.
`
`I say again, I don't have a proposed jury
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`The third issue has to do with the scope of
`
`evidence that could be presented on -- that has to do with
`
`the IPR proceedings. So this, I think it's fair to say
`
`that the parties' positions on this issue have been
`
`evolving over time, including since last Thursday.
`
`So I've got letters that were filed late last
`
`night, including, at least, one after midnight. So let's
`
`hear from Google on where things stand now.
`
`MR. UNIKEL: Thank you, Your Honor.
`
`After the hearing on Friday when this issue
`
`came up, we had had discussions over the weekend in an
`
`attempt to try and at least narrow the dispute, if not get
`
`rid of the dispute. Google has withdrawn all of its
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`instruction from Google construing the license. If Google
`
`had proposed an instruction on the meaning of the license,
`
`and Arendi had proposed a competing instruction, the Court
`
`might be in a position to make a pretrial ruling in the
`
`context of jury instructions that the agreement was
`
`unambiguous in favor of Google, that it was unambiguous in
`
`favor of Arendi, or that it was ambiguous. But I don't
`
`have proposed instructions on this issue.
`
`To the extent the license defense is not
`
`raised, the parties can present their proposals at the
`
`charging conference.
`
`So that takes care of the second issue that I
`
`have.
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`references to Pandit, which is the one ground that was
`
`actually included in the IPR.
`
`We have no obviousness combinations. We are
`
`not going to raise Pandit. As a result, our proposal
`
`was -- and I think it's the appropriate proposal -- that
`
`IPR proceedings should just not come in at all, because at
`
`this point, since Pandit is not in the case, those
`
`reference to any of the proceedings in the Federal Circuit
`
`or the PTAB are going to be confusing to the jury.
`
`And, frankly, I think that what we've seen from
`
`Arendi is that they would like to use those proceedings to
`
`suggest to the jury that all validity issues have been
`
` 19
`
` 20
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`resolved, that the Federal Circuit has spoken definitively
`
`on the issue, even though none of the grounds that we are
`
`presenting here were presented in the IPR.
`
`So we would like just there to be no reference
`
`by either side to the IPR proceedings. But if reference
`
`is made, then it's going to become a much bigger deal to
`
`try and explain to the jury what happened, what does it
`
`mean for this case, why are the grounds here different
`
`than what could be considered in front on the PTAB, and
`
`the different burdens of proof, different claim
`
`constructions. And it becomes a very big moras.
`
`So we tried to avoid that by eliminating Pandit
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`the IPR proceedings, and it wasn't because -- were you
`
`going to say that you thought it was invalidity based on
`
`Pandit?
`
`MR. UNIKEL: No, Your Honor. The only reason
`
`that this was coming up at all is because there's a
`
`willfulness charge post complaint. The case was stayed
`
`for five years based on IPR proceedings. And we felt that
`
`it was important, if there was going to be an aggressive
`
`willfulness case, to explain there were proceedings going
`
`on in the Patent Office, and that's why we reasonably
`
`acted as we did.
`
`We do not believe that even that discussion
`
`that we were proposing had any relevance to the jury's
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`from the case altogether.
`
`THE COURT: So can you tell me what
`
`combinations? I have the list of eight. I don't think I
`
`know what's getting raised. Just out of curiosity --
`
`MR. UNIKEL: Correct. So we're proceeding with
`
`anticipation based on CyberDesk, CyberDesk plus Microsoft
`
`Word 97, CyberDesk plus Apple data detectors, and Apple
`
`data detectors plus Microsoft Word 97.
`
`That's all, Your Honor.
`
`THE COURT: Okay. The fact that -- I guess I'm
`
`struggling. I think what I'm going to hear from the other
`
`side is -- and I'll let them talk in a minute -- is that
`
`up until this weekend, you wanted to introduce evidence of
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`determination about validity. And we were not planning to
`
`use it to suggest validity or invalidity of the patent.
`
`We simply -- frankly, we still need to explain
`
`why we didn't -- why there was no action for five years as
`
`this case was going on, which is why we've asked, in light
`
`of the new developments in the case and withdrawal of
`
`certain claims, that there not be a willfulness charge as
`
`part of the case.
`
`But even if there is, we'll just have to
`
`explain without reference to the IPR proceedings, because
`
`it's become clear that introducing a discussion of the IPR
`
`proceedings will become vastly more confusing than it
`
`
`
`Case 1:13-cv-00919-JLH Document 605-1 Filed 09/08/23 Page 7 of 104 PageID #: 61936
`
` 21
`
` 22
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`helps on any point.
`
`And so we'll basically just have to explain
`
`that we were defending the case for 2013 through 2018 when
`
`it resumed, and we would not reference what was happening
`
`in the Patent Office during that time.
`
`That was the only reason we were going to
`
`reference the proceedings at all.
`
`THE COURT: All right. Thanks very much.
`
`All right. Let's hear from Arendi.
`
`MR. ARD: Thank you, Your Honor. Seth Ard from
`
`Susman Godfrey.
`
`First, we think this issue has been raised.
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`patent, and they failed to do so. And that shows they
`
`didn't have a reasonable belief in the invalidity of the
`
`patent. In cases, you know, that we cite say that.
`
`And the third point, Your Honor, is, I think,
`
`as Your Honor just explained, they can't show invalidity
`
`based solely on the features that were exposed in the
`
`written publications of CyberDesk, for example, their
`
`anticipation defense. And the jury needs to understand
`
`that. Otherwise, the jury could make a finding of
`
`invalidity that is contrary to the law of estoppel.
`
`THE COURT: There's no way that they could have
`
`raised CyberDesk public use as an anticipating reference
`
`in the IPR; isn't that right?
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`They could have raised this long ago in motions in limine.
`
`They've been telling us ever since -- you know, up to
`
`three days ago, they're going to raise these invalid- --
`
`this IPR, and that was their intent to do so. And we
`
`think it's too late now. We have our opening prepared.
`
`We have our witnesses prepared. It's too late to do it
`
`now.
`
`Second, it does go to willfulness. He just --
`
`Mr. Unikel just said that they reasonably acted the way
`
`they did with respect to their belief in invalidity.
`
`Their own cases that we've cited back to the Court say
`
`that for our willfulness affirmative case, we can show
`
`that they took their best shot in trying to invalidate the
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`MR. ARD: Well, Your Honor, we agree with what
`
`you -- I mean, we accept what you just said about the fact
`
`that Dr. Dey is testifying to CyberDesk features that were
`
`not disclosed in the publications, but that doesn't mean
`
`that those -- what he disclosed -- what he testified that
`
`was not disclosed is material to this case in any way. He
`
`may have testified to something that wasn't disclosed.
`
`But I think, as Your Honor said at the end of
`
`your ruling, you know, if what they're really doing and
`
`what really ends up happening, is that the publications
`
`themselves expose features that invalidate the patent,
`
`then that's something that can't be used to invalidate the
`
` 23
`
` 24
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`patent if it was fully disclosed in publications. And
`
`that's something that the jury just has to do know,
`
`otherwise it can be misapplying the jury. And juries are
`
`instructed all the time on what the law is.
`
`But I think, you know -- and the first two
`
`points, I think, here today anyway, that, you know,
`
`they've been bringing this, I think invalidity -- or this
`
`IPR in this case from the beginning, they've done so all
`
`the way up to yesterday. And we think it's too late to
`
`raise now. And it's relevant to our affirmative case on
`
`willfulness, and the cases that we cited all say that.
`
`THE COURT: So slow it down and explain it to
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`if you actually look at their proposed stipulation that
`
`they submitted last week, and I think they submitted a
`
`version of it today, there's two basic facts that are
`
`relevant. One is that they sought to cancel the patent in
`
`2013, and that they failed.
`
`The Federal Circuit -- they took their best
`
`shot, and the Federal Circuit held that they were not able
`
`to cancel the patent. And that goes to whether they
`
`reasonably believed that they -- the patent was invalid.
`
`And that's something the courts have found. And we
`
`cited -- I can't remember the case we cited again this
`
`morning and we cited last week -- that Google's own cases
`
`that recognize that their affirmative case of willfulness,
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`me in as plain English as you can. Why don't you tell me
`
`a piece of evidence that you would like to have the jury
`
`know about how the IPR and the chain of inferences that
`
`leads to that conclusion, that somehow this has something
`
`to do with their willfulness.
`
`So you want to introduce -- they don't want to
`
`introduce it anymore, so now you're going to introduce it.
`
`What are you going to ask --
`
`MR. ARD: Correct.
`
`THE COURT: What are you going to tell the jury
`
`about what happened in the IPR, and what does that have to
`
`do with willfulness?
`
`MR. ARD: Just the basic facts that I think --
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`that's relevant to reasonable belief in invalidity.
`
`THE COURT: All right. Thank you.
`
`MR. UNIKEL: Your Honor, may I be heard on two
`
`points?
`
`THE COURT: Yes.
`
`MR. UNIKEL: First, on the issue of was it too
`
`late, I just want to point out that after we had submitted
`
`all of the pretrial materials, they added the Federal
`
`Circuit decision and the IPR to their exhibit list late.
`
`We pointed that out to them. We objected to it. We could
`
`not have filed the motion in limine on it because there
`
`was no indication before we filed motions in limine that
`
`
`
`Case 1:13-cv-00919-JLH Document 605-1 Filed 09/08/23 Page 8 of 104 PageID #: 61937
`
` 25
`
` 26
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`they had any desire to introduce it to the case.
`
`Second, as to the notion that we took our best
`
`shot, we are restricted in IPRs as to what we can present
`
`and what we cannot present. We could not present
`
`CyberDesk. We could not present Apple data detectors.
`
`And those are the grounds that we are presenting here.
`
`So to give the jury the impression that we
`
`presented the things that we thought were best in the IPR
`
`and are now sort of bringing up the dregs at trial, it
`
`gives not only the wrong, but a false impression because
`
`we couldn't have raised these things in the IPR
`
`proceedings. So there's going to be tremendous confusion
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`our detriment because now we have to just explain that
`
`there's this long period of time where nothing was
`
`happening in the case and we were defending ourselves, but
`
`we will not reference the