throbber
Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 1 of 18 PageID #: 3829
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
`
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`
`Defendants.
`
`DEFENDANTS’ REPLY BRIEF IN SUPPORT OF THEIR
`MOTION TO DISMISS FOR LACK OF STANDING
`
`MORRIS, NICHOLS, ARSHT & TUNNELL LLP
`Jack B. Blumenfeld (#1014)
`Stephen J. Kraftschik (#5623)
`1201 North Market Street
`P.O. Box 1347
`Wilmington, DE 19899
`(302) 658-9200
`jblumenfeld@mnat.com
`skraftschik@mnat.com
`
`Attorneys for Defendants
`
`
`
`
`
`
`
`
`
`
`
`
`
`C.A. No. 15-228 (RGA)
`
`
`
`
`
`
`
`C.A. No. 15-282 (RGA)
`
`
`
`
`
`
`
`C.A. No. 15-311 (RGA)
`
`
`
`
`
`ACCELERATION BAY LLC,
`
`Plaintiff,
`
`
`
`
`
`
`
`v.
`
`
`
`
`
`
`ACTIVISION BLIZZARD, INC.
`
`
`
`Defendant.
`
`
`ACCELERATION BAY LLC,
`
`Plaintiff,
`
`
`
`
`
`
`
`v.
`
`
`
`
`
`
`ELECTRONIC ARTS INC.,
`
`
`
`Defendant.
`
`
`ACCELERATION BAY LLC,
`
`Plaintiff,
`
`
`
`
`
`
`
`v.
`
`
`
`
`
`
`TAKE-TWO INTERACTIVE SOFTWARE,
`INC., ROCKSTAR GAMES, INC. and
`2K SPORTS, INC.,
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 2 of 18 PageID #: 3830
`
`
`
`OF COUNSEL:
`
`Michael A. Tomasulo
`David P. Enzminger
`Gino Cheng
`David K. Lin
`WINSTON & STRAWN LLP
`333 South Grand Avenue, 38th Floor
`Los Angeles, CA 90071
`(213) 615-1700
`
`
`
`Daniel K. Webb
`WINSTON & STRAWN LLP
`35 West Wacker Drive
`Chicago, IL 60601
`(312) 558-5600
`
`March 30, 2016
`
`
`
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 3 of 18 PageID #: 3831
`
`TABLE OF CONTENTS
`
`Page
`
`TABLE OF AUTHORITIES ....................................................................................................... ii
`
`I.
`
`AB LACKS PRUDENTIAL STANDING ....................................................................... 1
`
`A.
`
`B.
`
`AB does not own the patents. ............................................................................... 1
`
`AB does not have all substantial rights to the patents. ......................................... 3
`
`II.
`
`AB LACKS CONSTITUTIONAL STANDING ............................................................. 9
`
`III.
`
`CONCLUSION .............................................................................................................. 10
`
`i
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 4 of 18 PageID #: 3832
`
`
`CASES
`
`TABLE OF AUTHORITIES
`
`Page(s)
`
`Abbott Labs v. Diamedix Corp.,
`47 F.3d 1128 (Fed. Cir. 1995) ............................................................................................... 6, 8
`
`Alfred E. Mann Found. for Scientific Research v. Cochlear Corp.,
`604 F.3d 1354 (Fed. Cir. 2010) ............................................................................................. 6, 8
`
`Bluestone Innovations LLC v. Nichia Corp.,
`No. C 12-00059 SI, 2013 WL 1729814 (N.D. Cal. Apr. 22, 2013) .......................................... 5
`
`Canon Inc. v. Tesseron Ltd.,
`No. 14CV5462(DLC), 2015 WL 7308663 (S.D.N.Y. Nov. 19, 2015) ................................... 10
`
`Clouding IP, LLC v. Google Inc.,
`61 F. Supp. 3d 421, 432 (D. Del. 2014) ................................................................................ 1, 2
`
`Crown Die & Tool v. Nye Tool & Mach. Works,
`261 U.S. 24, 42 (1923) .............................................................................................................. 5
`
`Diamond Coating Techs., LLC v. Hyundai Motor Am.,
`No. 8:13-CV-01480-MRP, 2015 WL 2088892 (C.D. Cal. Apr. 1, 2015) ................................. 2
`
`Enhanced Security Research, LLC, v. Juniper Networks, Inc.,
`2010 WL 2898298 (D. Del. 2010) ............................................................................................. 8
`
`Ethicon, Inc. v. U.S. Surgical Corp.,
`135 F.3d 1456 (Fed. Cir. 1998) ............................................................................................... 10
`
`Fieldturf v. Sw. Recreational Indus.,
`357 F.3d 1266 (Fed. Cir. 2004) ................................................................................................. 3
`
`Grant Cty. Constructors v. E. V. Lane Corp.,
`459 P.2d 947 (Wash. 1969) ....................................................................................................... 2
`
`Hearst Commc’ns, Inc. v. Seattle Times Co.,
`115 P.3d 262 (Wash. 2005) ....................................................................................................... 3
`
`High Point SARL v. T-Mobile USA, Inc.,
`No. 2015-1235, 2016 WL 670402 (Fed. Cir. Feb. 18, 2016) .................................................. 10
`
`Int’l Gamco Inc. v. Multimedia Games,
`504 F.3d 1273 (Fed. Cir. 2007) ............................................................................................. 4, 5
`
`Luminara Worldwide, LLC v. Liown Elecs. Co.,
`No. 2015-CV-1671, 2016 WL 797925 (Fed. Cir. Feb. 29, 2016) ......................................... 7, 8
`
`ii
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 5 of 18 PageID #: 3833
`
`MobileMedia Ideas, LLC v. Apple Inc.,
`885 F. Supp. 2d 700 (D. Del. 2012) .......................................................................................... 8
`
`Morrow v. Microsoft Corp.,
`499 F.3d 1332 (Fed. Cir. 2007) ......................................................................................... 5, 7, 8
`
`Pfizer, Inc. v. Elan Pharm. Research Corp.,
`812 F. Supp. 1352, 1373 (D. Del. 1993) .................................................................................. 7
`
`Prima Tek II, L.L.C. v. A-Roo Co.,
`222 F.3d 1372 (Fed. Cir. 2000) ................................................................................................. 5
`
`Princeton Digital Image Corp. v. Hewlett-Packard,
`No. 12 CIV. 6973 RJS, 2013 WL 1454945 (S.D.N.Y. Mar. 21, 2013)................................. 4, 5
`
`Propat Int’l Corp. v. Rpost, Inc.,
`473 F.3d 1187 (Fed. Cir. 2007) ............................................................................................. 2, 8
`
`Rite–Hite Corp. v. Kelley Co., Inc.,
`56 F.3d 1538 (Fed. Cir. 1995) (en banc) ................................................................................... 1
`
`Sicom Sys., Ltd. v. Agilent Techs., Inc.,
`427 F.3d 971 (Fed. Cir. 2005) ................................................................................................... 8
`
`Stasch v. Underwater Works,
`158 A.2d 809, 812 (Del. Super. 1960)....................................................................................... 6
`
`Walker Digital, LLC v. Expedia, Inc.,
`950 F. Supp. 2d 729 (D. Del. 2013) ...................................................................................... 3, 6
`
`Waterman v. Mackenzie,
`138 U.S. 252 (1891) .............................................................................................................. 1, 3
`
`WiAV Sols. LLC v. Motorola, Inc.,
`631 F.3d 1257 (Fed. Cir. 2010) ............................................................................................... 10
`
`
`
`iii
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 6 of 18 PageID #: 3834
`
`AB’s brief ignores or mischaracterizes the facts and the law. There is no question that
`
`
`
` The Agreement between Boeing and AB
`
`does not transfer sufficient rights for AB to enforce the patents alone. In addition, the undisputed
`
`rights
`
` renders any injury to AB illusory and so
`
`deprives it of constitutional standing. These cases should be dismissed.
`
`I.
`
`AB LACKS PRUDENTIAL STANDING
`
`A.
`
`AB does not own the patents.
`
`AB plainly does not own the patents. “A conveyance of legal title by the patentee can be
`
`made only of [i] the entire patent, [ii] an undivided part or share of the entire patent, or [iii] all
`
`rights under the patent in a specified geographical region of the United States.” Rite–Hite Corp.
`
`v. Kelley Co., 56 F.3d 1538, 1551 (Fed. Cir. 1995) (en banc) (citing Waterman v. Mackenzie, 138
`
`U.S. 252 (1891)). The Agreement between Boeing and AB did not convey those rights.
`
`AB does not argue otherwise; it simply ignores Rite-Hite and Waterman.
`
`Contrary to AB’s selective quotations of the Agreement, Boeing plainly did not transfer
`
`“all right, title, and interest” in the patents. D.I. 109, “Opp. Br.” at 4.1 As Judge Stark held in
`
`Clouding IP, LLC v. Google Inc., 61 F. Supp. 3d 421, 432 (D. Del. 2014), a transfer of “all right,
`
`title, an interest” made “subject to” the reservation of substantial rights “d[oes] not convey any
`
`entire patent, an undivided part or share of any entire patent, or all rights under any patent in a
`
`specified geographical region of the United States.” Just as in Clouding, Boeing reserved for
`
`
`1 All D.I. citations refer to C.A. No. 15-228 unless otherwise noted.
`
`1
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 7 of 18 PageID #: 3835
`
`itself substantial rights inconsistent with a transfer of title. See Diamond Coating Techs., LLC v.
`
`Hyundai Motor Am., 2015 WL 2088892, at *4 n.1 (C.D. Cal. Apr. 1, 2015). Indeed, in Walker
`
`Digital, LLC v. Expedia, Inc., 950 F. Supp. 2d 729 (D. Del. 2013), which AB cites, the assignor
`
`retained no interest, license or otherwise, in the assigned patents. Here, the transfer to AB was
`
`
`
` D.I. 102-1, Ex. A, §§ 4.1,
`
`“subject to” reserved rights,
`
`4.3. AB cannot “support[] its contention that ‘all rights, title, and interest’ were conveyed only
`
`by quoting a snippet without the entire context.” Clouding, 61 F. Supp. 3d at 432.
`
`
`
`
`
`.
`
`AB’s mischaracterizes other provisions of the Agreement.
`
` Opp. Br. at 5.
`
`D.I. 102-1, Ex. A, § 3.4. AB’s description of the Agreement’s terms is also incomplete, omitting
`
`discussion of Boeing’s retained rights. The Agreement cannot be analyzed by examining only
`
`the rights granted to AB; the Court must “analyze the respective rights allocated to each party
`
`under that agreement.” Propat Int’l Corp. v. Rpost, Inc., 473 F.3d 1187, 1189 (Fed. Cir. 2007).
`
`AB also resorts to a declaration by a Boeing employee, Natasha Radovsky. As an initial
`
`matter, under Washington law, which governs the contract, extrinsic evidence is not permitted
`
`unless the contract is ambiguous. Grant Cty. Constructors v. E. V. Lane Corp., 459 P.2d 947,
`
`954 (Wash. 1969). Moreover, the Agreement itself includes an incorporation provision which
`
`specifically states that “[n]o oral explanation . . . shall alter the meaning or interpretation of this
`
`2
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 8 of 18 PageID #: 3836
`
`Agreement.” D.I. 102-1, Ex. A, § 9.5. AB’s reliance on the affidavit is further suspect given
`
`that AB and Boeing have withheld as “irrelevant” all communications between the parties.
`
`Exs. A & B (Emails between counsel). Having done so, AB cannot now resort to parol evidence.
`
`But even if the contract were ambiguous about whether title was conveyed—it was not—
`
`Ms. Radovsky’s declaration does not show otherwise.2 Walker Digital, 950 F. Supp. 2d at 737
`
`(discounting a declaration from a transferee disclaiming ownership). Courts “determine the
`
`parties’ intent by focusing on the objective manifestations of the agreement, rather than on the
`
`unexpressed subjective intent of the parties.” Hearst Commc’ns, Inc. v. Seattle Times Co.,
`
`115 P.3d 262, 267 (Wash. 2005). Boeing’s intent is thus irrelevant, except as expressed by the
`
`Agreement. After all, “[w]hether a transfer of a particular right or interest under a patent is an
`
`assignment or a license” depends “upon the legal effect of its provisions,” not a litigation-
`
`inspired declaration. Waterman, 138 U.S. at 256. Because the court “must examine the
`
`licensing agreement to determine whether the parties intended to effect a transfer,” a “patentee’s
`
`later second thoughts are irrelevant.” Ortho Pharm. Corp. v. Genetics Inst., Inc., 52 F.3d 1026,
`
`1032 Fed. Cir. 1995); see also Walker Digital, 950 F. Supp. 2d at 737 (“[T]he court relies on the
`
`unambiguous granting language rather than the equivocal parol evidence[.]”). This was a
`
`contract between two sophisticated parties; the Court should trust that the Agreement means
`
`what it says. It was plainly not a transfer of the entire patent or an undivided share of the entire
`
`patent under Waterman.
`
`B.
`
`AB does not have all substantial rights to the patents.
`
`
`2 Nowhere in Ms. Radovsky’s affidavit does she purport to speak on Boeing’s behalf. She did
`not sign the Agreement. While AB criticizes Defendants for not filing similar affidavits, extrin-
`sic evidence is not necessary to interpret a contract’s plain language, and in any event, it is AB
`that bears the burden of establishing its standing. Fieldturf v. Sw. Recreational Indus., 357 F.3d
`1266, 1268 (Fed. Cir. 2004).
`
`
`
`3
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 9 of 18 PageID #: 3837
`
`
`
` When a transferor retains the right to pursue infringers in any field of use, the
`
`transferee does not “hold all substantial rights in the full scope of the [] patent” and thus lacks
`
`standing. Int’l Gamco Inc. v. Multimedia Games, 504 F.3d 1273, 1278 (Fed. Cir. 2007)
`
`(emphasis added). An exclusive field of use license “has split the patented subject matter
`
`amongst various parties” and so “subjects an infringer to suit by multiple parties.” Id. at 1279.
`
`
`
`AB’s attempt to distinguish Int’l Gamco is unavailing.
`
` D.I. 102-1, Ex. A, § 4.3. The Federal Circuit’s hypothetical is illustrative:
`
`In this case, Gamco’s exclusive enterprise license limits its rights to lottery
`games, but the ‘035 patent extends beyond that limitation. For example, a single
`infringing game system at an NYSL-authorized site could offer blackjack, keno,
`mahjong, and lottery games. Thus, the single infringing act of offering NYSL
`games might subject the infringer to suit by Gamco for the lottery games, and
`separately by IGT or some other game-specific licensee for the other games. This
`example also shows the potential of suits among licensees or between the licensee
`and licensor. For example, the hypothetical infringer’s keno game could
`conceivably lead to a squabble over whether keno was a “lottery game” under
`Gamco’s license. Divvying up the rights in the ‘035 patent along subject matter
`rather than geographic lines would “permit several monopolies to be made out of
`one” in a manner not specifically sanctioned by the Patent Act.
`
`Int’l Gamco, 504 F.3d at 1279–80 (footnote omitted). A licensor and licensee may dispute the
`
`boundaries of the licensee’s field of use and so risk duplicative suits. AB rejects the Federal Cir-
`
`cuit’s reasoning as “outlandish,” Opp. Br. at 8. It is not, and moreover, it is the law.
`
`In arguing an “assignee has standing to assert patent despite assignor’s retention of
`
`exclusive license in a field of use,” Opp. Br. at 9, AB misrepresents the holding of Princeton
`
`Digital Image Corp. v. Hewlett-Packard, 2013 WL 1454945 (S.D.N.Y. Mar. 21, 2013). The
`
`case holds no such thing. The court emphasized that assignor GE did not “retain” any rights; GE
`
`assigned the patents in toto, and was then granted back a “non-exclusive license” and an
`
`4
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 10 of 18 PageID #: 3838
`
`“illusory” right to sue. Id. at *4, *6. GE did not “retain” an “exclusive license” in a field of use
`
`as Boeing did here. AB’s summary of the holding is simply incorrect.
`
`AB’s cites to Bluestone Innovations LLC v. Nichia Corp., 2013 WL 1729814 (N.D. Cal.
`
`Apr. 22, 2013). Bluestone is plainly distinguishable. In Bluestone, the plaintiff owned the
`
`patent, unlike here. The exclusive field of use licensee was never an owner of the patent, never
`
`had any rights beyond its field of use, and never received sufficient rights to sue on its own. Id.
`
`at *3. And finally, the plaintiff-assignee, had “covenanted not to sue under any Patent” for
`
`products within the exclusive licensee’s field, diminishing the risk of duplicative suits. Id. Here,
`
`Boeing is the original owner of the patent
`
`
`
`illustrates the compelling logic of the Federal Circuit’s Int’l Gamco decision: the Bluestone
`
`plaintiff abandoned its claims against products that fell in the twilight between its patent rights
`
` Indeed, Bluestone also
`
`and those of the exclusive field-of-use licensee. Id. at *4 n.1.
`
`AB also asserts that it has the “exclusive right to assert the Patents”
`
` Opp. Br. at 7. But standing “depends entirely on the
`
`putative plaintiff’s proprietary interest in the patent, not on any contractual arrangements among
`
`the parties about who may sue.” Prima Tek II v. A-Roo Co., 222 F.3d 1372, 1381 (Fed. Cir.
`
`
`
`2000). The Agreement makes clear that Boeing retained and never relinquished “
`
` D.I. 102-1, Ex. A, § 4.3 (emphasis added).
`
`. Crown Die & Tool v. Nye Tool &
`
`
`
`5
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 11 of 18 PageID #: 3839
`
`Mach. Works, 261 U.S. 24, 42 (1923); Morrow v. Microsoft Corp., 499 F.3d 1332, 1341–42
`
`(Fed. Cir. 2007) (no standing where party had exclusive right to sue, but no exclusionary rights).
`
`Even if that were not the law, the provisions would be inconsistent, and “[w]here there is an in-
`
`consistency between general provisions and specific provisions, the specific provisions ordinari-
`
`ly qualify the meaning of the general provisions.” Stasch v. Underwater Works, 158 A.2d 809,
`
`812 (Del. Super. 1960). Thus, the
`
`
`
` Walker Digital, 950
`
`F. Supp. 2d at 736–37. (“[W]hen irreconcilable differences between contract clauses arise, the
`
`court is to enforce the clause relatively more important or principal to the contract.”).
`
` means that AB
`
`does not own all substantial rights. When “the licensor retains a right to sue accused infringers,
`
`that right often precludes a finding that all substantial rights were transferred to the licensee.”
`
`Alfred E. Mann Found. for Scientific Research v. Cochlear Corp., 604 F.3d 1354, 1361 (Fed.
`
`Cir. 2010). Indeed, “the nature and scope of the licensor’s retained right to sue accused infring-
`
`ers is the most important factor in determining whether an exclusive license transfers sufficient
`
`rights to render the licensee the owner of the patent.” Id.; see also Abbott Labs v. Diamedix
`
`Corp., 47 F.3d 1128, 1129 (Fed. Cir. 1995) (holding the plaintiff lacked standing where the pa-
`
`tent owner retained its right to “bring such suit against … infringer[s]”). Here,
`
`
`
` D.I. 102-1, Ex. A, § 4.3(b).
`
`AB baldly asserts that Boeing “cannot proceed without joining Acceleration Bay.” Opp.
`
`Br. at 8. But the Agreement says exactly the opposite and gives Boeing
`
`
`
` D.I. 102-1, Ex. A, § 4.3. Indeed, the
`
`6
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 12 of 18 PageID #: 3840
`
`
`
`
`
`
`
`parties knew how to obligate AB to join its suits—
`
` Even if AB were correct, this would simply mean
`
`that neither party holds sufficient rights to proceed alone. See, e.g., Morrow, 499 F.3d at 1341
`
`(holding that the patent rights had been divided such that neither part could sue alone).
`
`AB also lacks the exclusive right to practice the patents.
`
`
`
`. AB is silent about these rights. In
`
`Pfizer, Inc. v. Elan Pharm. Research Corp., the court held that the plaintiff lacked standing
`
`where the transferor retained, inter alia, the right to market patented products commercially in
`
`the United States,
`
` 812 F. Supp. 1352, 1373 (D. Del. 1993).
`
`Ignoring these rights, AB asserts that Boeing’s rights are “relatively insubstantial.” Opp.
`
`Br. at 10. AB misrepresents Luminara Worldwide v. Liown Elecs., 2016 WL 797925 (Fed. Cir.
`
`Feb. 29, 2016). Contrary to AB’s representation, the Federal Circuit specifically found that the
`
`
`
`assignor “did not retain the broad licensing rights proposed by [Defendant].” Id. at *4.
`
`7
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 13 of 18 PageID #: 3841
`
`right to sue or any right to sublicense. Id. at *4–5.
`
`
`
` Id. at *5. AB’s citation to MobileMedia Ideas v. Apple, 885 F. Supp.
`
`2d 700 (D. Del. 2012), fails too. MobileMedia involved an unusual situation where multiple
`
`companies had formed the plaintiff and held a mix of rights under multiple agreements. Id. at
`
`702–03.
`
`
`
`
`
`see id. at 708, which the Federal Circuit has treated as a substantial right, see Sicom Sys. v.
`
`Agilent Techs., 427 F.3d 971, 979 (Fed. Cir. 2005); Abbott Labs, 47 F.3d at 1132.
`
`. D.I. 102-1, Ex. A, §§ 3.4(c), 4.5. This factor under-
`
`
`
`mines AB’s position on standing. See, e.g., Propat Int’l Corp., 473 F.3d at 1191–92 (power to
`
`reclaim all patent rights “is yet another indication that Authentix retains a significant ownership
`
`interest in the patent”); Alfred E. Mann, 604 F.3d at 1360.
`
`
`
`. Abbott Labs, 47 F.3d at 1132 (“[T]he right to in-
`
`dulge infringements . . . normally accompanies a complete conveyance of the right to sue.”).
`
`AB’s ability to indulge infringement is further limited by
`
` Opp. Br. at 14, but the precedent of this district says otherwise. Enhanced Security Re-
`
`search, LLC, v. Juniper Networks, Inc., 2010 WL 2898298 (D. Del. 2010) (plaintiff lacked stand-
`
`ing where litigation finance company had, inter alia, veto rights over settlements).
`
`Ex. C, § 5.3; see Morrow, 499 F.3d at 1340 n.6 (describing the “right to assign” as an “important
`
`incidental right” in the substantial rights analysis).
`
`. D.I. 102-1,
`
`8
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 14 of 18 PageID #: 3842
`
`
`
`
`
` Opp. Br. at 13.
`
`
`
`
`
`II.
`
`AB LACKS CONSTITUTIONAL STANDING
`
`AB raises two arguments regarding constitutional standing that:
`
`AB appears to concede that the accused games are
`
` AB is wrong on both points.
`
`redefine the contractual terms, which is prohibited by the Agreement. D.I. 102-1, Ex. A, § 9.5.
`
` but it relies on extrinsic evidence, including Wikipedia, to
`
`
`
`
`
`
`
`
`
`This evidence cannot undo
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`110, ¶ 6. Nothing prevents Boeing from seeking to enforce its rights against the Defendants.
`
` D.I.
`
`9
`
`
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 15 of 18 PageID #: 3843
`
`use, AB cannot suffer a legal injury with respect to products in those fields. “[T]he touchstone
`
`of constitutional standing in a patent infringement suit is whether a party can establish that it has
`
`an exclusionary right in a patent that, if violated by another, would cause the party holding the
`
`exclusionary right to suffer legal injury.” WiAV Sols. LLC v. Motorola, Inc., 631 F.3d 1257,
`
`1265 (Fed. Cir. 2010). Where the defendant “has the ability to obtain . . . a license from another
`
`party,” the plaintiff “does not have an exclusionary right with respect to the alleged infringer and
`
`thus is not injured by that alleged infringer.” Id. at 1266. AB characterizes this portion of WiAV
`
`as dicta, but the Federal Circuit’s reasoning is necessary to the result and part of the holding.
`
`. AB
`
`cites Ethicon, Inc. v. U.S. Surgical Corp., 135 F.3d 1456, 1467 (Fed. Cir. 1998), but Ethicon is
`
`limited to the situation of co-owners of the entire patent, such as joint inventors or spouses. See
`
`Canon Inc. v. Tesseron Ltd., 2015 WL 7308663, at *4 (S.D.N.Y. Nov. 19, 2015) (“[T]he argu-
`
`ments against retroactive patent licensing have real force only in the context of co-ownership.”).
`
`The holding of Ethicon is narrow: “Absent agreement to the contrary, a co-owner cannot grant a
`
`
`
` See,
`
`release of another co-owner’s right to accrued damages.” 135 F.3d at 1467.
`
`e.g., Ethicon, 135 F.3d at 1467 (noting “retroactive licenses” of patent rights have been enforced
`
`by the courts without specifically referring to them in this way.”); High Point SARL v. T-Mobile
`
`USA, Inc., 2016 WL 670402, at *9 (Fed. Cir. Feb. 18, 2016); Canon, 2015 WL 7308663, at *4.
`
`III. CONCLUSION
`
`Defendants’ Motion to Dismiss for Lack of Standing should be granted.
`
`
`
`
`
`10
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 16 of 18 PageID #: 3844
`
`MORRIS, NICHOLS, ARSHT & TUNNELL LLP
`
`
`
`/s/ Stephen J. Kraftschik
`Jack B. Blumenfeld (#1014)
`Stephen J. Kraftschik (#5623)
`1201 North Market Street
`P.O. Box 1347
`Wilmington, DE 19899
`(302) 658-9200
`jblumenfeld@mnat.com
`skraftschik@mnat.com
`
`Attorneys for Defendants
`
`
`
`OF COUNSEL:
`
`Michael A. Tomasulo
`David P. Enzminger
`Gino Cheng
`David K. Lin
`WINSTON & STRAWN LLP
`333 South Grand Avenue, 38th Floor
`Los Angeles, CA 90071
`(213) 615-1700
`
`Daniel K. Webb
`WINSTON & STRAWN LLP
`35 West Wacker Drive
`Chicago, IL 60601
`(312) 558-5600
`
`March 30, 2016
`9936937
`
`11
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 17 of 18 PageID #: 3845
`Case 1:15—cv—OO311—RGA Document 120 Filed 04/11/16 Page 17 of 18 Page|D #: 3845
`
`
`
`EXHIBITS A—B
`
`EXHIBITS A-B
`REDACTED IN THEIR ENTIRETY
`
`REDACTED IN THEIR ENTIRETY
`
`

`
`Case 1:15-cv-00311-RGA Document 120 Filed 04/11/16 Page 18 of 18 PageID #: 3846
`
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that on April 11, 2016, I caused the foregoing to be electronically
`
`
`
`
`
`filed with the Clerk of the Court using CM/ECF, which will send notification of such filing to all
`
`registered participants.
`
`
`
`
`
`I further certify that I caused copies of the foregoing document to be served on
`
`April 11, 2016, upon the following in the manner indicated:
`
`Philip A. Rovner, Esquire
`Jonathan A. Choa, Esquire
`POTTER ANDERSON & CORROON LLP
`1313 North Market Street, 6th Floor
`Wilmington, DE 19801
`Attorneys for Plaintiff
`
`Paul J. Andre, Esquire
`Lisa Kobialka, Esquire
`James R. Hannah, Esquire
`KRAMER LEVIN NAFTALIS & FRANKEL LLP
`990 Marsh Road
`Menlo Park, CA 94025
`Attorneys for Plaintiff
`
`Aaron M. Frankel, Esquire
`KRAMER LEVIN NAFTALIS & FRANKEL LLP
`1177 Avenue of the Americas
`New York, NY 10036
`Attorneys for Plaintiff
`
`
`VIA ELECTRONIC MAIL
`
`VIA ELECTRONIC MAIL
`
`VIA ELECTRONIC MAIL
`
`/s/ Stephen J. Kraftschik
`Stephen J. Kraftschik (#5623)

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


Or .

Accessing this document will incur an additional charge of $.

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

Accept $ Charge
throbber

Still Working On It

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

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

throbber

A few More Minutes ... Still Working

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

Thank you for your continued patience.

This document could not be displayed.

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

Your account does not support viewing this document.

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

Your account does not support viewing this document.

Set your membership status to view this document.

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

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

Become a Member

One Moment Please

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

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

Your document is on its way!

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

Sealed Document

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

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


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket