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`UNITED STATES DISTRICT COURT
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`EASTERN DISTRICT OF MICHIGAN
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`SOUTHERN DIVISION
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`IN RE: NEO WIRELESS, LLC,
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`PATENT LITIGATION
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`Case No. 2:22-MD-03034-TGB
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`HON. TERRENCE G. BERG
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`DEFENDANTS' RESPONSE TO PLAINTIFF'S
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`MOTION FOR SUMMARY JUDGMENT ON
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`DEFENDANTS' INEQUITABLE CONDUCT AND
`UNCLEAN HANDS DEFENSES
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`
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`PUBLIC - REDACTED VERSION
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29643 Filed 07/22/24 Page 2 of 55
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`CONCISE STATEMENT OF THE ISSUES
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`1. Whether, when drawing all justifiable inferences in Defendants’ favor,
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`material fact disputes remain on Defendants’ inequitable conduct claim that one or
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`more inventors of the asserted patents intended to deceive the Patent Office during
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`examination of those patents by failing to disclose AT&T’s Project Angel where (i)
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`it is undisputed that the inventors were aware of Project Angel, and (ii) Project Angel
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`was demonstrably “but for” material to the patentability of the claims of those
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`patents.
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`2. Whether Defendants may rely on their Project Angel disclosures
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`produced during fact discovery to support their inequitable conduct allegations
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`where the Court previously ruled Defendants may do so.
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`3. Whether, when drawing all justifiable inferences in Defendants’ favor,
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`material fact disputes remain on Defendants’ allegations of unclean hands based on
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`(i) Defendants’ inequitable conduct claim, and (ii) Neo’s refusal to dismiss its
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`infringement claims on the ‘908 and ‘302 patents after Neo acquiesced to a German
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`court’s recent ruling, on a German counterpart to the ‘908 and ‘302, that the accused
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`LTE standard does not practice a limitation recited in each of those patents.
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`4. Whether the “Adaptix” materials that Defendants and their experts rely
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`on from a separate litigation involving third-party are inadmissible hearsay where
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`those materials fall within an exception or exemption of the rule against hearsay,
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`i
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29644 Filed 07/22/24 Page 3 of 55
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`where Defendants’ experts may rely on hearsay materials in forming their opinions
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`in this case, and where the facts presented in those materials are undisputed.
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`ii
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29645 Filed 07/22/24 Page 4 of 55
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`CONTROLLING AUTHORITY
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`Regarding Inequitable Conduct:
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`Therasense, Inc. v. Becton, Dickinson & Co., 649 F.3d 1276, 1287 (Fed. Cir. 2011)
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`Aventis Pharma S.A. v. Hospira, Inc., 675 F.3d 1324, 1334 (Fed. Cir. 2012)
`
`Am. Calcar, Inc. v. Am. Honda Motor Co., Inc., 768 F.3d 1185, 1187, 1190 (Fed.
`Cir. 2014)
`
`Semiconductor Energy Lab’y Co. v. Samsung Elecs. Co., 204 F.3d 1368, 1374 (Fed.
`Cir. 2000)
`
`Regarding Unclean Hands:
`
`Keystone Driller Co. v. Gen. Excavator Co., 290 U.S. 240, 245–46 (1933)
`
`Luv n’ Care, Ltd. v. Laurain, 98 F.4th 1081, 1094 (Fed. Cir. 2024)
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`
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`iii
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29646 Filed 07/22/24 Page 5 of 55
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`TABLE OF CONTENTS
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`
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`CONCISE STATEMENT OF THE ISSUES ............................................................ i
`
`CONTROLLING AUTHORITY ............................................................................. iii
`
`TABLE OF AUTHORITIES ................................................................................... vi
`
`I.
`
`II.
`
`INTRODUCTION ........................................................................................... 1
`
`DEFENDANTS’ RESPONSE TO NEO’S STATEMENTS OF
`FACTS ............................................................................................................. 3
`
`III. DEFENDANTS’ COUNTER-STATEMENT OF MATERIAL
`FACTS ............................................................................................................. 9
`
`IV. ARGUMENT .................................................................................................13
`
`A. Genuine Fact Disputes Preclude Summary Judgment of
`Inequitable Conduct ............................................................................13
`
`1.
`
`2.
`
`3.
`
`4.
`
`Neo Advances the Wrong Legal Standard for Inequitable
`Conduct at the Summary Judgment Stage ............................... 13
`There is a Genuine Dispute as to the Materiality of
`Project Angel ............................................................................ 16
`The Court Did Not Strike Defendants’ Inequitable
`Conduct Counterclaim ............................................................. 21
`There is a Genuine Dispute Over Intent to Deceive the
`Patent Office Regarding Project Angel ................................... 22
`a.
`Evidence Shows the Inventors Were Familiar with
`the Materiality of Project Angel .................................... 23
`Evidence Shows the Inventors Deliberately
`Withheld Project Angel from the Patent Office ............ 25
`c. Materials from the Adaptix Litigation are
`Admissible at Trial ........................................................ 29
`
`b.
`
`iv
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`
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29647 Filed 07/22/24 Page 6 of 55
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`
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`V.
`
`d.
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`Project Angel is Not Cumulative of WiMAX and
`Vijayan ........................................................................... 31
`FACT DISPUTES PRECLUDE SUMMARY JUDGMENT OF
`UNCLEAN HANDS .....................................................................................37
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`VI. CONCLUSION ..............................................................................................43
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`
`
`v
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`
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29648 Filed 07/22/24 Page 7 of 55
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`
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`TABLE OF AUTHORITIES
`
`Cases
`
`Adaptix, Inc. v. Apple, Inc.,
`
`2015 WL 218932 (N.D. Cal. Jan. 15, 2015)..... 5, 6, 7, 8, 9, 24, 25, 29, 30, 31
`
`Alcon Rsch., Ltd. v. Apotex, Inc.,
`
`2013 WL 2244338 (S.D. Ind. May 21, 2013) ...............................................15
`
`Alfred E. Mann Found. for Sci. Rsch. v. Cochlear Corp.,
`
`2014 WL 12558006 (C.D. Cal. Jan. 3, 2014) ................................................36
`
`Am. Calcar, Inc. v. Am. Honda Motor Co., Inc.,
`
`768 F.3d 1185 (Fed. Cir. 2014) ........................................................ 27, 28, 30
`
`Anderson v. Liberty Lobby, Inc.,
`
`477 U.S. 242 (1986).......................................................................................14
`
`Aventis Pharma S.A. v. Hospira, Inc.,
`
`675 F.3d 1324 (Fed. Cir. 2012) ........................................................ 14, 17, 25
`
`Baker Oil Tools, Inc. v. Geo Vann, Inc.,
`
`828 F.2d 1558 (Fed. Cir. 1987) .....................................................................20
`
`Baumel v. Barber Power L. Grp., PLLC,
`
`2023 WL 6121001 (W.D.N.C. Sept. 18, 2023) .............................................31
`
`Baxter Int’l, Inc. v. McGaw, Inc.,
`
`149 F.3d 1321 (Fed. Cir. 1998) .....................................................................28
`
`Capella Photonics, Inc. v. Cisco Sys., Inc.,
`
`77 F. Supp. 3d 850 (N.D. Cal. 2014) .............................................................28
`
`Chamberlain Group, Inc. v. Techtronic Indus. Co., Ltd.,
`
`2017 WL 1101092 (N.D. Ill. Mar. 22, 2017) ................................................42
`
`Cozy, Inc. v. Dorel Juvenile Grp., Inc.,
`
`633 F. Supp. 3d 411 (D. Mass. 2022) ............................................... 14, 15, 29
`
`
`vi
`
`
`
`Case 2:22-md-03034-TGB ECF No. 273, PageID.29649 Filed 07/22/24 Page 8 of 55
`
`
`
`Digital Control, Inc. v. Charles Mach. Works,
`
`437 F.3d 1309 (Fed. Cir. 2006) ........................................................ 14, 32, 34
`
`Edge Sys. LLC v. Cartessa Aesthetics, LLC,
`
`571 F. Supp. 3d 13 (E.D.N.Y. 2021) .............................................................42
`
`Eggerson v. U.S.,
`
`2006 WL 1720252 (W.D. Mich. 2006) .........................................................31
`
`Gilead Scis., Inc. v. Merck & Co.,
`
`888 F.3d 1231 (Fed. Cir. 2018) ........................................................ 37, 38, 39
`
`Incase Designs, Inc. v. Mophie, Inc.,
`
`2013 WL 12173931 (N.D. Cal. July 1, 2013) ...............................................42
`
`In re 650 Fifth Ave. & Related Props.,
`
`2017 U.S. Dist. LEXIS 230731 (S.D.N.Y. June 22, 2017) ...........................30
`
`In re Cole v. Patton,
`
`2019 WL 3413525 (M.D. Fla. July 29, 2019) ...............................................31
`
`Intamin, Ltd. v. Magnetar Tech. Corp.,
`
`623 F. Supp. 2d 1055 (C.D. Cal. 2009),
`
`aff’d, 404 Fed. App’x 496 (Fed. Cir. 2010) ...................................................39
`
`Keystone Driller Co. v. Gen. Excavator Co.,
`
`290 U.S. 240 (1933)................................................................................ 37, 38
`
`Luv n' Care, Ltd. v. Laurain,
`
`98 F.4th 1081 (Fed. Cir. 2024) ......................................................................39
`
`M. Eagles Tool Warehouse, Inc. v. Fisher Tooling Co., Inc.,
`439 F.3d 1335 (Fed. Cir. 2006) .............................................................. 14, 32
`
`
`Matsushita Elec. Indus. Co. v. Zenith Radio Corp.,
`
`475 U.S. 574 (1986).......................................................................................14
`
`Paragon Podiatry Lab’y, Inc. v. KLM Lab’ys, Inc.,
`
`984 F.2d 1182 (Fed. Cir. 1993) .....................................................................22
`
`
`vii
`
`
`
`Case 2:22-md-03034-TGB ECF No. 273, PageID.29650 Filed 07/22/24 Page 9 of 55
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`
`
`Precision Instrument Mfg. Co. v. Auto Maint. Mach. Co.,
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`324 U.S. 806 (1945).......................................................................................38
`
`Schulman v. Saloon Beverage, Inc.,
`
`2014 WL 3353254 (D. Vt. July 9, 2014) .......................................................30
`
`Semiconductor Energy Lab’y Co. v. Samsung Elecs. Co.,
`
`204 F.3d 1368 (Fed. Cir. 2000), amended (Apr. 5, 2000) .............................33
`
`Sprint Commc’ns Co. LP v. Charter Commc’ns, Inc.,
`
`2021 WL 982728 (D. Del. Mar. 16, 2021) ............................................. 14, 21
`
`Standard Havens Prods., Inc. v. Gencor Indus., Inc.,
`
`897 F.2d 511 (Fed. Cir. 1990) ................................................................ 13, 31
`
`Sysmex Corp. v. Beckman Coulter, Inc.,
`
`2022 WL 1503987 (D. Del. May 6, 2022) ............................................. 15, 16
`
`Therasense, Inc. v. Becton, Dickinson & Co.,
`
`649 F.3d 1276 (Fed. Cir. 2011) .......................... 13, 15, 16, 22, 25, 37, 38, 42
`
`Ulead Sys., Inc. v. Lex Computer & Mgmt. Corp.,
`
`351 F.3d 1139 (Fed. Cir. 2003) .............................................................. 22, 28
`
`Unwired Planet, LLC v. Apple, Inc.,
`
`2017 WL 1175379 (N.D. Cal. Feb. 14, 2017) ...............................................13
`
`Viskase Corp. v. Am. Nat'l Can Co.,
`
`261 F.3d 1316 (Fed. Cir. 2001) .....................................................................31
`Rules
`Fed. R. Evid. 803 .....................................................................................................30
`Fed. R. Evid. 804 .....................................................................................................30
`Fed. R. Evid. 807 .....................................................................................................31
`
`
`
`
`viii
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`
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29651 Filed 07/22/24 Page 10 of 55
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`
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`I.
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`INTRODUCTION
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`The Court should deny Neo Wireless LLC’s (“Neo’s”) motion for summary
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`judgment because genuine issues of material fact exist on Defendants’ counterclaims
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`of inequitable conduct and unclean hands.
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`With respect to inequitable conduct, Neo does not dispute that each of the
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`inventors of the Asserted Patents were aware of the technical details behind Project
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`Angel, and that none of the inventors disclosed Project Angel to the U.S. Patent &
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`Trademark Office (“Patent Office”) during examination of the four patents asserted
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`in this case (“Asserted Patents”). Neo asserts that Project Angel is not “material” to
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`the Asserted Patents because Project Angel was allegedly limited to a “fixed” system
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`whereas the claims are directed to a “mobile” system. But the contemporaneous
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`documents expressly state that Project Angel was directed to a “mobile” system.
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`This evidence alone, which Neo ignored, confirms there is a genuine issue of
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`material fact on materiality.
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`With respect to the intent to deceive necessary to establish inequitable
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`conduct, Neo correctly acknowledges that intent can be inferred from indirect and
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`circumstantial evidence. As described in detail below, Defendants present sufficient
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`evidence from which the fact finder could find one or more of the inventors – who
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`were indisputably familiar with the relevant details of Project Angel – failed to
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`inform the Patent Office of those details with an intent to deceive the Patent Office.
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`1
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29652 Filed 07/22/24 Page 11 of 55
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`
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`Neo’s bald assertion that Defendants’ evidence is inadmissible at trial is unsupported
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`and incorrect.
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`Genuine fact disputes also exist on Defendants’ unclean hands counterclaim.
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`In addition to the inventors’ inequitable conduct for failure to disclose Project Angel
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`to the Patent Office, Neo engaged in other misconduct in this litigation. In parallel
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`with this litigation, Neo asserted against Defendants Tesla, Ford, FCA, Nissan, and
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`Toyota in Germany the European counterpart to U.S. Patent 10,833,908 (“the ʼ908
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`Patent”) asserted in this case. At the beginning of the first hearing in Germany
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`(against Tesla), the German Court informed Neo that the patent was not infringed
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`by the LTE standard as alleged, causing Neo to drop its German case against Tesla.
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`Shortly thereafter, Neo dropped its German cases against Ford, FCA, Nissan, and
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`Toyota. But despite Defendants’ request, Neo refused to drop its infringement claims
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`under the ’908 Patent (and the related U.S. Patent 10,771,302 (“the ’302 Patent”))
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`which recite the same claim limitation the German Court held was not practiced by
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`LTE. This forced Defendants to move for summary judgment on the ’908 and ’302
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`Patents, unnecessarily driving up defense costs and burdening this Court. This,
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`together with the inventors’ inequitable conduct, creates a genuine issue of material
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`fact regarding Defendants’ unclean hands counterclaim.
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`For these reasons, and as explained in greater detail below, the Court should
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`deny Neo’s motion for summary judgment.
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`2
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29653 Filed 07/22/24 Page 12 of 55
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`II. DEFENDANTS’ RESPONSE TO NEO’S STATEMENTS OF FACTS
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`Neo’s “Statement of Material Facts” does not accurately reflect the pertinent
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`facts as it misrepresents the relevant allegations, draws legal conclusions, and omits
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`disputed facts germane to Defendants’ inequitable conduct and unclean hands
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`defenses. Defendants dispute the facts characterized by Neo as material without
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`conceding their materiality:
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`1–4. Disputed. While Defendants do not dispute that that the ’908, ’941,
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`’302, and ’450 Patents list Xiaodong Li (“Alex Li”), Titus Lo (“Lo”), Kemin Li
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`(“Kemin Li”), Haiming Huang (“Huang”), and Ruifeng Wang (“Wang”) as
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`inventors, Defendants dispute that “they are the true inventors” because they
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`patented prior art subject matter. (See generally Exs. 1-4, Invalidity Charts for the
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`1 at ¶¶ 292–327, 528–593;
`Asserted Patents; ECF No. 254-25, pp.147-181, 309-3530F
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`ECF No. 254-24, pp. 140-176, 233-262 at ¶¶ 355–411, 544–587; Ex. 5, Opening
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`Report of Dr. Buehrer at ¶¶ 388–467, 629–682, 755–804, 1053–1138.)
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`5.
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`Disputed. While Defendants do not dispute that U.S. Prov. Pat. App.
`
`Nos. 60/544,521, 60/540,032, and 60/540,586 were filed in 2004 by Walbell
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`Technologies, Inc. (“Walbell”), Defendants dispute that U.S. Prov. Pat. App.
`
`
`1 In instances where ECF-stamped copies of sealed documents were not provided by
`the Court, the sealed filing’s ECF number and page number(s) are cited.
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`3
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29654 Filed 07/22/24 Page 13 of 55
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`No. 60/721,451 was filed by Walbell in 2005. (See ECF No. 259-6, PageID.20075
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`(listing Waltical Solution, Inc.).)
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`6.
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`Undisputed. AT&T’s Project Angel, is prior art to the Asserted Patents
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`and “should have been disclosed to the Patent Office during the prosecution of the
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`Asserted Patents.”
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`7.
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`8.
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`Undisputed.
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`Disputed. While Defendants have withdrawn their defense of
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`derivation, there exists a wealth of evidence that demonstrates AT&T’s Project
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`Angel was material to the patentability of the asserted claims because, as
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`Defendants’ experts have explained, Project Angel met each and every claim
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`element of the asserted claims. (See generally Exs. 1-4, ECF No. 254-25, pp.147-
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`181, 309-353 at ¶¶ 292–327, 528–593; ECF No. 254-24, pp. 140-176, 233-262 at
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`¶¶ 355–411, 544–587; Ex. 5, at ¶¶ 388–467, 629–682, 755–804, 1053–1138.)
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`9.
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`Undisputed.
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`10. Disputed. While Defendants do not dispute that Alex Li worked at
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`AT&T during the summer of 1996, they dispute Neo’s characterization of his work
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`as “general research.” Alex Li testified that
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`
`
`
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`, and is relevant to functionalities claimed in the Asserted Patents. (Ex.
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`6, Alex Li Dep. Tr. at 74:16–76:14; Ex. 7, Lo Dep. Tr. at 88:11–18
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`
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`4
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29655 Filed 07/22/24 Page 14 of 55
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`pp. 13–14
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`of the ’450, p. 42
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`; see e.g., Ex. 3, Invalidity Chart for the ’908 Patent,
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`; Ex. 2, Invalidity Chart
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`
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`.) Defendants do not dispute the timing of the filing of the patent
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`applications that led to the Asserted Patents.
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`11–14.
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`Undisputed.
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`15. Disputed. The fact that Project Angel by itself or in combination with
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`other references met every limitation of the asserted claims, combined with the
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`inventors’ undisputed familiarity with Project Angel, and their history of exploiting
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`Project Angel information to monetize misappropriated technology, collectively
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`support the inference that the inventors deliberately withheld Project Angel from the
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`Patent Office during examination of the Asserted Patents. (See generally Exs.1-4;
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`ECF No. 254-25, pp.147-181, 309-353 at ¶¶ 292–327, 528–593; ECF No. 254-24,
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`pp. 140-176, 233-262 at ¶¶ 355–411, 544–587; Ex. 5 at ¶¶ 388–467, 629–682, 755–
`
`804, 1053–1138; Ex. 7 at 88:15–18; Ex. 6 at 74:16–75:10; ECF No. 255-9,
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`PageID.19364-19365 ; ECF No. 255-10, PageID19369
`
`(employment at
`
`Broadstorm).); see also Adaptix, Inc. v. Apple, Inc., No. 5:13-cv-01776-PSG, 2015
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`WL 218932, at *2 (N.D. Cal. Jan. 15, 2015) (finding “the record [] largely
`
`5
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`
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29656 Filed 07/22/24 Page 15 of 55
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`
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`undisputed that … Adaptix obtained AT & T confidential information related from
`
`
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`those engineers about early iterations of Project Angel”) (“Adaptix Order”).1F2
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`16. Disputed. As explained in detail by Defendants’ experts, Drs. Wells,
`
`Bims, and Buehrer, Project Angel alone or in combination with other references
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`satisfies every limitation of the asserted claims and is thus “but-for” material because
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`disclosure of Project Angel to the Patent Office would have blocked the issuance of
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`the Asserted Patents. (See generally Exs. 1-4; ECF No. 254-25, pp.147-181, 309-
`
`353 at ¶¶ 292–327, 528–593; ECF No. 254-24, pp. 140-176, 233-262 at ¶¶ 355–411,
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`544–587; Ex. 5 at ¶¶ 388–467, 629–682, 755–804, 1053–1138.)
`
`17. Disputed. As explained by Drs. Wells, Bims, and Buehrer “none of the
`
`cited prior art [during prosecution of the Asserted Patents] disclose [all of the
`
`relevant features], as included in Project Angel.” (See ECF No. 254-24, pp. 297, 299
`
`at ¶ 634 (’941 Patent) & ¶ 639 (’450 Patent); see also ECF No. 254-25, pp. 392–394
`
`at ¶ 668 (’302 Patent) & ¶ 673 (’908 Patent); see also Ex. 5 at ¶ 1197 (’941 Patent),
`
`¶ 1200 (’450 Patent), ¶ 1203 (’302 Patent), and ¶ 1206 (’908 Patent).
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`18–20.
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`Undisputed.
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`21. Disputed. The inventors’ intimate knowledge of Project Angel, the
`
`substantial similarities between Project Angel and the asserted claims, all inventors’
`
`
`2 Broadstorm—a company co-founded by Alex Li—is Adaptix’s predecessor, and
`the Adaptix Order refers to both Broadstorm and Adaptix as Adaptix. Adaptix, 2015
`WL 218932, at *1 n.11.
`
`6
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`
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29657 Filed 07/22/24 Page 16 of 55
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`
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`collective failure to disclose Project Angel, as well as Alex Li’s plans to exploit
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`Project Angel technology, demonstrate that the inventors deliberately withheld
`
`Project Angel. See generally Exs. 1-4; ECF No. 254-25, pp.147-181, 309-353 at
`
`¶¶ 292–327, 528–593; ECF No. 254-24, pp. 140-176, 233-262 at ¶¶ 355–411, 544–
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`587; Ex. 5 at ¶¶ 388–467, 629–682, 755–804, 1053–1138; Ex. 7 at 68:20–22; Ex. 6
`
`at 74:16–75:10; ECF No. 259-13, PageID.20238-20239, ECF No. 255-10,
`
`PageID.19369 (employment at Broadstorm).); see also Adaptix, 2015 WL 218932,
`
`at *2.
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`22. Disputed. Contemporaneous documentary evidence and expert
`
`testimony demonstrate that Project Angel was both fixed and mobile. (Ex. 8,
`
`ATT_NEO_P1_019096–19108 at 19102; Ex. 9, ATT_NEO_P1_018919–18923 at
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`18919, 18922.) Indeed, AT&T’s documents show that
`
`
`
`
`
`. (Id.; ECF No. 254-24, pp. 148–149 at ¶¶ 366–367.); Ex. 5, ¶¶ 146,
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`1157–1158.)
`
`23. Disputed. Contemporaneous documentary evidence and expert analysis
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`again demonstrate that AT&T’s Project Angel, like the Walbell system, included the
`
`packet switching technique. (Ex. 10, ATT_NEO_P1_005965 at 005990
`
`
`
`at 019447
`
`; Ex. 11, ATT_NEO_P1_019346
`
`; Ex. 12,
`
`7
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`
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29658 Filed 07/22/24 Page 17 of 55
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`
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`ATT_NEO_0000001-185 at 21, 29; Ex. 13, ATT_NEO_0000342-811 at 376–377;
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`ECF No. 254-24, pp. 168–171 at ¶¶ 395–398.)
`
`24–25.
`
`Undisputed.
`
`26. Disputed. Alex Li’s email filed in connection with the same Adaptix
`
`summary judgment ruling that Neo cites (¶¶ 27–29), states that “[w]e have the design
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`for both mobile and fixed systems, but will address the fixed market first.” (Ex. 14,
`
`Adaptix, No. 5:13-cv-01776-PSG, Dkt. 394-7.)
`
`27. Disputed. The same Adaptix Order Neo cites (¶¶ 27–29), states that
`
`Alex Li—an inventor on every Asserted Patent—along with Liu sought to
`
`“strategically hire key Project Angel engineers from AT&T,” the same engineers
`
`that misappropriated AT&T confidential information to further their own R&D
`
`efforts. Adaptix, 2015 WL 218932, at *2 (“Along with Xiandong Li, another one of
`
`Adaptix’s co-founders, Liu proposed to strategically hire key Project Angel
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`engineers from AT&T. Adaptix was able to recruit three engineers: Pal Meiyappan,
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`Liang Hong and James Hite.”).
`
`28. Disputed. What Neo characterizes as a “recruitment pitch” was found
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`to be a “strategic” scheme to “hire key Project Angel engineers,” causing them to
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`divulge confidential AT&T information, and to file patent applications on exploited
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`technology. See Id. (“It was only after Adaptix began working with these three
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`engineers that it proceeded to file applications for the patents-in-suit.”).
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`8
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`29. Disputed. While Defendants do not dispute that the Adaptix court found
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`the asserted patents invalid, they dispute Neo’s statement that “[n]o determinations
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`were made with respect to the allegations of misappropriation …, and there was no
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`finding by the Court that Dr. Alex Li was culpable of any wrongdoing in connection
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`with the allegations.” (ECF No. 259, PageID.19923.) The Adaptix court determined
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`that “the record is largely undisputed that (1) Adaptix hired AT&T engineers who
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`were employed at AT&T during the conception of Project Angel; (2) Adaptix
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`obtained AT&T confidential information related from those engineers about early
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`iterations of Project Angel; (3) Adaptix received this confidential information prior
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`to filing the patents-in-suit; and (4) the confidential information bears a certain
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`resemblance to the specifications and ultimately the patents-in-suit.” Adaptix,
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`
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`2015 WL 218932, at *2 (emphasis added).2F3
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`III. DEFENDANTS’ COUNTER-STATEMENT OF MATERIAL FACTS
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`30.
`
`
`
`
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`. (Ex. 6, Alex Li Dep. Tr. at 84:21–85:7.) Alex Li and Liu conspired to
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`“strategically hire key Project Angel engineers from AT&T . . . [and] recruit[ed]
`
`
`3 See also Amended Answer and Counterclaims of ZTE (USA) Inc., Adaptix, Inc.
`v. ZTE Corporation, Civ. No. 6:13-cv-00443, Doc. No. 111 at 15 (E.D. Tex. Dec.
`5, 2014) (asserting that patents naming Dr. Li as co-inventor were substantially
`derived from AT&T which was not disclosed to the USPTO).
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`9
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29660 Filed 07/22/24 Page 19 of 55
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`three engineers ….” Adaptix, 2015 WL 218932, at *2. At least one of those engineers
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`consulted with Broadstorm “for months before leaving AT&T.” Id.
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`31. Through targeting key Project Angel engineers, Broadstorm acquired
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`“many internal AT&T email communications … as well as several AT&T technical
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`documents related to Project Angel” such that “Adaptix had—as Liu put it—‘pretty
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`much ... everything ... on [AT&T’s] engineering side.’” Id.; (See also Ex. 15,
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`Adaptix, No. 5:13-cv-01776-PSG, Dkt. 394-3.)
`
`32.
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`“[J]ust over two months” after hiring the AT&T engineers, Broadstorm
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`began filing for patents with “resemblance” to the exploited AT&T confidential
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`information. Adaptix, 2015 WL 218932, at *2.
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`33. Co-inventors Kemin Li and Huang both worked at Broadstorm. (ECF
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`No. 255-9, PageID.19364-19365; ECF No. 255-10, PageID.19369.) By way of their
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`employment at Broadstorm, co-inventors Alex Li, Kemin Li, and Huang learned
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`much about the intricacies of Project Angel.
`
`34. Co-inventor Lo worked at AT&T for four years. (ECF No.255-11,
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`PageID.19374.)
`
` (Ex. 7 at 91:6–8.)
`
` (Ex. 7 at 73:22–74:6; 77:4–12.)
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`10
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`35.
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`at 69:13–15.)
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`36.
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`37.
`
`
`
`
`
` (Ex. 16, Wang Dep. Tr.
`
` (Ex. 7 at 74:20–75:1.)
`
` (Ex. 6 at 118:22–119:2; Ex. 7 at 126:20–127:13.)
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`
`
`
`
`
`
`
`
`
`
`
`
` (Ex. 7 at 128:3–129:10.)
`
`38.
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`Just one month after Lo began working for Walbell, Walbell began
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`filing patent applications that Neo now points to for priority of some of the Asserted
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`Patents—naming Lo as a co-inventor. (ECF No.255-11, PageID.19373 (Dec. 2003);
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`ECF No. 255-7, PageID.19304 (Jan. 28, 2004); ECF No. 255-8, PageID.19330 (Jan.
`
`30, 2004)). Within the next month after that, Walbell filed still more patent
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`applications related to the Asserted Patents. (ECF No.255-5, PageID.19254
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`(Feb. 13, 2004).)
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`11
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`39. Project Angel practices every element of the asserted claims of the
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`Asserted Patents or renders them obvious. (See generally Exs. 1-4; ECF No. 254-25,
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`pp.147-181, 309-353 at ¶¶ 292–327, 528–593; ECF No. 254-24, pp. 140-176, 233-
`
`262 at ¶¶ 355–411, 544–587; Ex. 5 at ¶¶ 388–467, 629–682, 755–804, 1053–1138.)
`
`Given these substantial similarities, had the inventors disclosed Project Angel to the
`
`Patent Office, the Patent Office would not have allowed the Asserted Patents. (Id.)
`
`40. While other prior art before the Patent Office, like the WiMAX system,
`
`also disclose the technology claimed by the Asserted Patents, Project Angel
`
`discloses a more complete combination of relevant features than other art cited and
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`before the Patent Office. (ECF No. 254-25, pp. 392, 393–394 at ¶ 668 & ¶ 673 (“And
`
`of course, none of the prior art cited during prosecution of the ’908 Patent and its
`
`related patents disclose a system with all of the relevant features described above, as
`
`combined.”); ECF No. 254-24, pp. 297, 299 at ¶ 634 & ¶ 639.)
`
`41. While all co-inventors of the Asserted Patents knew about the
`
`significance of Project Angel, they all chose to deliberately not disclose it to the
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`Patent Office. (See generally ECF No. 255-1, PageID.19154-19182; ECF No. 255-
`
`2, PageID.19184-19199; ECF No. 255-3, PageID.19201-19228; ECF No. 255-4,
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`PageID.19230-19251.)
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`12
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`
`
`IV. ARGUMENT
`
`A. Genuine Fact Disputes Preclude Summary Judgment of
`Inequitable Conduct
`
`1.
`
`Neo Advances the Wrong Legal Standard for
`Inequitable Conduct at the Summary Judgment Stage
`
`To prove inequitable conduct at trial, “the accused infringer must prove that
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`the applicant misrepresented or omitted material information with the specific intent
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`to deceive the PTO.” Therasense, Inc. v. Becton, Dickinson & Co., 649 F.3d 1276,
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`1287 (Fed. Cir. 2011); see also Unwired Planet, LLC v. Apple, Inc., No. 13-cv-
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`04134-VC, 2017 WL 1175379, at *3 (N.D. Cal. Feb. 14, 2017) (explaining that “for
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`the purpose of getting past a motion for summary judgment against the defense of
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`[inequitable conduct], the test is necessarily somewhat less demanding” than proving
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`that specific intent to deceive is the single most reasonable inference able to be
`
`drawn from the evidence). Proving specific intent requires “clear and convincing
`
`evidence that the applicant knew of the reference, knew that it was material, and
`
`made a deliberate decision to withhold it.” Id. at 1290. But “[b]ecause direct
`
`evidence of deceptive intent is rare, a district court may infer intent from indirect
`
`and circumstantial evidence.” Id.
`
`“Given the need to evaluate the facts and circumstances of each case in order
`
`to draw the requisite inference, the issue of deceptive intent is rarely appropriate
`
`even for summary judgment proceedings.” Cozy, Inc. v. Dorel Juvenile Grp., Inc.,
`
`13
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`Case 2:22-md-03034-TGB ECF No. 273, PageID.29664 Filed 07/22/24 Page 23 of 55
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`
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`633 F. Supp. 3d 411, 424 (D. Mass. 2022). And like intent, “[m]ateriality is a
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`question of fact.” Sprint Commc’ns Co. LP v. Charter Commc’ns, Inc., No. CV 17-
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`1734-RGA, 2021 WL 982728, at *2 (D. Del. Mar. 16, 2021) (citation omitted).
`
`“[E]stablishing but-for materiality in the inequitable conduct context only requires a
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`preponderance of the evidence, ‘giv[ing] claims their broadest reasonable
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`construction.”’ Aventis Pharma S.A. v. Hospira, Inc., 675 F.3d 1324, 1334 (Fed. Cir.
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`2012) (quoting Therasense, 649 F.3d at 1291–1292). Accordingly, “even if the
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`withheld reference is not sufficient to invalidate the claim in district court, “‘the
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`reference may be material if it would have blocked patent issuance under the PTO’s
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`different evidentiary standards.” Id.
`
`Due to the fact-intensive nature of intent and materiality—and because all
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`inferences drawn from the factual record must be viewed in the light most favorable
`
`
`
`to the non-moving party3F4—“a grant of summary judgment on the issue of inequitable
`
`conduct is permissible, but uncommon.” Digital Control, Inc. v. Charles Mach.
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`Works, 437 F.3d 1309, 1317 (Fed. Cir. 2006); M. Eagles Tool Warehouse, Inc. v.
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`Fisher Tooling Co., Inc., 439 F.3d 1335, 1340 (Fed. Cir. 2006) (urging courts to
`
`
`4 Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986);
`Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986) (“The evidence of the
`non-movant is to be believed, and all justifiable inferences are to be drawn in his
`favor.”).
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`
`14
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`exercise “caution in making an inequitable conduct determination at the summary
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`judgment stage.”); Cozy, Inc., 633 F. Supp. 3d at 424.
`
`Neo misapplies Therasense to assert that “the specific intent to deceive must
`
`be “the single most reasonable inference able to be drawn from the evidence” at the
`
`summary judgment stage. (ECF No. 259, PageID.19930–19933.) Therasense arose
`
`after trial and did not apply the summary judgment standard for claims of inequitable
`
`conduct. See Alcon Rsch., Ltd. v. Apotex, Inc., No. 1:09-cv-102-RLY-TAB, 2013
`
`WL 2244338, at *8 (S.D. Ind. May 21, 2013) (noting that Therasense “was an appeal
`
`from a bench trial, and sets forth the standard for proving inequitable conduct at trial.
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`Indeed, the opinion is replete with references to ‘the evidence,’ to ‘the burden of
`
`proof,’ and to what is necessary to ‘prevail on a claim’”) (emphasis in original).
`
`Here, as in Alcon Rsch., “[i]n marked contrast, this case is before the court on [Neo’s]
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`motion for summary