`_____________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_____________________
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`AMNEAL PHARMACUETICALS, LLC. and
`PAR PHARMACEUTICAL, INC.
`Petitioner
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`v.
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`JAZZ PHARMACEUTICALS, INC.
`Patent Owner
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`
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`
`
`_____________________
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`Case IPR2015-00554
`Patent 7,668,730
`_____________________
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`PETITIONER PAR PHARMACEUTICAL, INC.’S OPPOSITION TO PATENT
`OWNER’S MOTION FOR ADDITIONAL DISCOVERY
`PURSUANT TO 37 C.F.R. § 42.51
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`
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`Mail Stop “PATENT BOARD”
`Patent Trial and Appeal Board
`U.S. Patent and Trademark Office
`P.O. Box 1450
`Alexandria, VA 22313-1450
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`I.
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`BACKGROUND
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`IPR2015-00554
` Patent No. 7,668,730
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`Petitioner Par Pharmaceutical, Inc. (“Par Pharm. Inc.”) submits this
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`opposition to Patent Owner Jazz Pharmaceutical, Inc.’s (“Jazz”) motion for
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`additional discovery (Paper No. 27). Jazz seeks discovery of billing records
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`regarding the preparation and filing of the Petitions in IPR2015-00545, -00546, -
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`00547, -00548, -00551, and -00554 (the “Petitions”), and any employment
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`agreements for Par Pharm. Inc.’s in-house counsel, Dr. Lawrence Brown and Mr.
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`David Silverstein. The Board should reject Jazz’s motion, however, as it fails to
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`demonstrate why the interests of justice require production of these documents.
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`II. LEGAL STANDARDS
`Under 35 U.S.C. § 316(a)(1)(5), discovery in inter partes review
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`proceedings is limited to the deposition of witnesses submitting affidavits or
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`declarations and “what is otherwise necessary in the interests of justice.” The party
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`requesting additional discovery must show that they meet the five Garmin factors,
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`which include showing that there is “more than a possibility and mere allegation”
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`of finding useful information, and no “ability to generate equivalent information by
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`other means.” See Garmin Int’l. v. Cuozzo Speed Techs., No. IPR2012-00001,
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`2013 WL 2023626, at *4 (P.T.A.B., Mar. 5, 2013).
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`III. ARGUMENT
`Jazz seeks discovery that is allegedly relevant only to the issue of whether
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`IPR2015-00554
` Patent No. 7,668,730
`Par Pharmaceutical Companies, Inc., Sky Growth Holdings I Corp., Sky Growth
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`Holdings II Corp., and Par Pharmaceutical Holdings, Inc. (collectively, the “Par
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`Parents”) are real-parties-in-interest to the Petitions in addition to Par Pharm. Inc.
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`(Paper No. 27 at 3–4). Specifically, Jazz seeks (1) billing records submitted by Par
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`Pharm. Inc.’s attorneys or Dr. Valuck to any Par Pharm. Inc. or the Par Parents to
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`the extent they relate to the Petitions; and (2) employment agreements between
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`David Silverstein/Lawrence Brown and Par Pharm. Inc. or the Par Parents. (See
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`Ex. 2039). But Jazz cannot demonstrate that the requested discovery meets all five
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`Garmin factors.
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`A.
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`Production of Billing Records is not in the Interests of Justice.
`1.
`Jazz Had the Ability to Generate Equivalent Information.
`Jazz offers no new evidence showing that any billing records they receive in
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`discovery will not be duplicative of the testimony of Barry Gilman, Par Pharm.
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`Inc.’s deputy general counsel and secretary. Mr. Gilman declared that “[Par Pharm.
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`Inc.] was the only Par entity that paid any filing or legal fees associated with the
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`preparation of the [Petitions]…. None of the Par Parents… [provided] or other
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`compensation for the preparation and filing of the [Petitions].” (Ex. 1040, ¶ 7).
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`That directly answers the one question to which billing records would be relevant.
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`Jazz had the opportunity to depose Mr. Gilman regarding the basis of this
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`statement on June 4, 2015. During that deposition, Jazz’s attorney spent a great
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`IPR2015-00554
` Patent No. 7,668,730
`deal of time asking Mr. Gilman about irrelevant matters outside of the scope of his
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`declaration, including which Par entity issues his paycheck (Ex. 2033., 17, 22–23,
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`26–30), his personal LinkedIn account (Id., 17–18, 49–50), and abstract questions
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`regarding whether Par Pharm. Inc.’s legal department had ever been authorized to
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`act on behalf of the Par Parents. (Id., 58–63). Mr. Gilman was neither “unwilling or
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`unable” to provide further evidence at his deposition, as Jazz claims; rather, the
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`Board had ordered that his deposition was to be limited to the subject matter of his
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`Declaration. (See Paper No. 10 at 4–5). Jazz’s attorney never asked about his basis
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`for stating that Par Pharm. Inc. paid for the Petitions or whether he had reviewed
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`billing records, despite having more than an hour of unused deposition time
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`remaining when Jazz closed the deposition. (See Ex. 2033, 68).
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`Jazz’s Request is Based on a Mere Allegation.
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`2.
`Jazz has no basis for stating that the information sought will be inconsistent
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`with Mr. Gilman’s testimony, other than making “the logical inference” that Par’s
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`refusal to produce the records is that they “do not support Petitioner’s positions.”
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`But the opposite is true: if Par Pharm. Inc. or its attorneys had submitted bills to
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`any of the Par Parents, those would be inconsistent with positions Par took, and Par
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`would have been obligated to produce them with its Reply of May 26, 2015. (See
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`37 C.F.R. §42.51(b)(1)(iii)). Additionally, Par Pharm. Inc. and its attorneys have a
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`duty of candor
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`to
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`the Board
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`to
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`identify real-parties-in-interest; Jazz’s
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`IPR2015-00554
` Patent No. 7,668,730
`unsubstantiated “inference” also infers that Par Pharm. Inc.’s attorneys violated
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`that duty. (See 37 C.F.R. §42.11). Other reasons exist for not wanting to produce
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`billing records: they contain sensitive yet irrelevant material and privileged
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`information that Par Pharm. Inc. does not wish to waste money on reviewing,
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`redacting, and producing to Jazz. Further, the engagement letter for Dr. Valuck
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`could reveal work product or privileged information, e.g., whether Par Pharm. Inc.
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`is working with him as a non-testifying consultant in the related litigation.
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`B.
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`Production of David Silverstein or Lawrence Brown’s
`Employment Agreements is not in the Interests of Justice.
`1.
`Mr. Silverstein and Dr. Brown’s employment agreements would be relevant
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`Jazz Already Generated Equivalent Information.
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`and not duplicative only if agreements with any of the Par Parents exist. Jazz has
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`no basis to believe that is true. Mr. Gilman testified that both Dr. Brown and Mr.
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`Silverstein were employed on behalf of Par Pharm. Inc. by a subsidiary called
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`“Par, Inc.,” which renders corporate services to Par Pharm. Inc. (See Ex. 2033, 43–
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`48). Mr. Gilman also declared that the Par Parents do not employ Dr. Brown and
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`Mr. Silverstein (See Ex. 1040, ¶ 6) based on knowledge that they “generally do not
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`have employees.” (Ex. 2033 at 44). Jazz thus has equivalent information.
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`2.
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`Jazz’s Request is Based on Inadmissible Evidence and Mere
`Allegations.
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`Jazz has no basis for stating that the information sought will be inconsistent
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`with Mr. Gilman’s testimony, other than evidence already raised:
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`IPR2015-00554
` Patent No. 7,668,730
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`and Mr. Silverstein’s personal LinkedIn profile.
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` The second
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`piece of “evidence” is clearly inadmissible hearsay, as Jazz has not provided
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`evidence that David Silverstein’s personal LinkedIn profile constitutes a “party
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`admission” regarding his employment in response to Par Pharm. Inc.’s objection.
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`Moreover, if employment agreements between Dr. Brown/Mr. Silverstein
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`and the Par Parents existed, Par Pharm. Inc. would have produced them with its
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`Reply
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`to
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`the Patent Owner’s Preliminary Response.
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`(See 37 C.F.R.
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`§42.51(b)(1)(iii)). The fact that it did not both indicates Jazz is speculating as to
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`their existence, and Mr. Gilman’s testimony circumscribes the whole of the matter.
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`IV. CONCLUSION
`For the foregoing reasons, the Board should deny Jazz’s request to seek
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`production of the documents requested in Exhibit 2039.
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`Date: August 28, 2015
`ARENT FOX LLP
`1717 K Street, NW
`Washington, DC 20006
`202.857.6000
`XYREM@arentfox.com
`
`
`IPR2015-00554
` Patent No. 7,668,730
`Respectfully Submitted,
`
`Bradford Frese
`Registration No. 69,772
`Attorney for Petitioner
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`CERTIFICATION OF SERVICE (37 C.F.R. §§ 42.6(e), 42.105(a))
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`IPR2015-00554
` Patent No. 7,668,730
`Certificate of Service
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`The undersigned hereby certifies that the above-captioned PETITIONER
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`PAR PHARMACEUTICAL, INC.’S OPPOSITION TO PATENT OWNER’S
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`MOTION FOR ADDITIONAL DISCOVERY PURSUANT TO 37 C.F.R. § 42.51,
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`was served in its entirety on August 28, 2015, upon the following parties via
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`Electronic Mail:
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`F. Dominic Cerrito
`QUINN EMANUEL URQUHART &
`SULLIVAN LLP
`51 Madison Avenue
`22nd Floor
`New York, NY 10010
`NickCerrito@quinnemanuel.com
`
`John V. Biernacki
`Jones Day
`North Point
`901 Lakeside Avenue
`Cleveland, OH 44114
`JVBiernacki@JonesDay.Com
`
`
`Date: August 28, 2015
`ARENT FOX LLP
`1717 K Street, NW
`Washington, DC 20006
`202.857.6000
`XYREM@arentfox.com
`
`
`
`
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`Respectfully Submitted,
`
`Bradford Frese
`Registration No. 69,772
`Attorney for Petitioner
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