`
`
` IN THE UNITED STATES DISTRICT COURT
` FOR THE DISTRICT OF DELAWARE
`
`1
`
`INGENICO, INC., )
`
` )
` Plaintiff, )
` ) C.A. No. 18-826(WCB)
`v.
` )
` )
`IOENGINE, LLC, )
` )
` Defendant. )
`_________________________)
`IOENGINE LLC, )
` )
` Plaintiff, )
` ) C.A. No. 18-452(WCB)
`v. )
` )
`PAYPAL HOLDINGS, INC., )
` )
` Defendant. )
`Monday, December 17, 2018
`1:55 p.m.
`Courtroom 4A
`844 King Street
`Wilmington, Delaware
`
`
`
`BEFORE: THE HONORABLE WILLIAM C. BRYSON
` United States District Court Judge
`
`APPEARANCES:
`
`RICHARDS LAYTON & FINGER, P.A.
`BY: FREDERICK L. COTTRELL, III, ESQ.
` -and-
`
` SUNSTEIN KANN MURPHY & TIMBERS, LLP
` BY: SHARONA H. STERNBERG, ESQ.
`
`
`Counsel for the Plaintiff
`
` Ingenico, Inc.
`
`PayPal Ex. 1056, p. 1
`PayPal v. IOENGINE
`
`
`
`
`
`2
`
`APPEARANCES CONTINUED:
`
`SMITH KATZENSTEIN & JENKINS, LLP
`BY: NEAL C. BELGAM, ESQ.
`
`-and-
` DECHERT LLP
`
`BY: NOAH M. LEIBOWITZ, ESQ.
` BY: GREGORY T. CHUEBON, ESQ.
`Counsel for the Defendant
` IOENGINE, LLC
`
` MORRIS NICHOLS ARSHT & TUNNELL, LLP
` BY: JACK B. BLUMENFELD, ESQ.
` -and-
` ORRICK HERRINGTON & SUTFLIFFE, LLP
` BY: JARED BOBROW, ESQ.
` Counsel for Defendant
` PayPal Holdings, Inc.
`
` - oOo -
`P R O C E E D I N G S
` _ _ _
`
`THE COURT: Thank you. Please be seated. Off
`the record for a moment.
`I am allotted here by Amtrak no longer than
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`PayPal Ex. 1056, p. 2
`PayPal v. IOENGINE
`
`
`
`103
`
`
`MR. BLUMENFELD: I don't think this is any in
`the local rules. I think this is a Ingenico issue, so I'll
`let Ingenico speak to it.
`MS. STERNBERG: I can speak to it. Our concern
`right now at least in the Ingenico case, we don't know how
`many claims, there are 189 potential claims that can be
`asserted, and we haven't received infringement contentions.
`We're just nervous about limiting the RFA to fifty if there
`are more than fifty or there are a hundred claims that are
`at issue because RFA's are useful for contention.
`THE COURT: This is a good time to address the
`number of claims. One area in which I will push back is
`having too many claims. And 189 is way too many claims. So
`there are various ways that I can limit the number of claims
`if you don't, but I would urge you in the strongest terms to
`go back and weed out those claims. Otherwise -- and I'm
`sure your experience on this will tell you that if you have
`anything remotely approaching 189 claims in one case, you're
`going to spend most of the days, or most of the trial on the
`long march. And you know what I mean with an asterisk. And
`now on claim 167, first limitation, can I put a green check
`next to it? Yes, you can. And the jury is going to hate
`you. They're going to want to take you around the back and
`shoot you.
`
`So I would suggest it's in your interest as well
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`PayPal Ex. 1056, p. 3
`PayPal v. IOENGINE
`
`
`
`104
`
`
`as the jury's interest and I am going to make sure that it
`doesn't come to pass that we have 189 claims. I would
`suggest something more in the neighborhood of ten. I don't
`know what your experience has been in terms of what works
`with a jury, but my experience, limited to be sure, but is
`that anything more than that is just the jury loses track.
`MR. CHUEBON: Yes, Your Honor, we have no
`intention of putting 186 claims in front of the jury.
`THE COURT: Thank you. I probably should have
`asked first and not bore you with the speech. But that's --
`I feel really strongly about this.
`MR. BLUMENFELD: Your Honor, can I address that
`for a moment?
`THE COURT: Yes.
`MR. BLUMENFELD: Unlike in Ingenico, we have
`received preliminary first round infringement contentions
`from IOENGINE, and they have, in fact, in the first round
`asserted 96 claims. And it's less than 189, but 96 is way
`too many to deal with. It's not only from our point of view
`a jury issue.
`THE COURT: I understand.
`MR. BLUMENFELD: It's going to fall on your
`plate when we start claim construction, it's going to fall
`on yours when we do invalidity contentions, and yes, there
`will be invalidity in this case. And we would like to
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`PayPal Ex. 1056, p. 4
`PayPal v. IOENGINE
`
`
`
`105
`
`
`discuss with you getting at least a first cut down before
`claim construction so that we don't have to deal with terms
`of 96 claims and then probably after claim construction
`narrowing it again.
`THE COURT: Yes. I absolutely think, well, 96
`is way too many, way too many. So I would direct you to go
`back and significantly adjust the number of claims that you
`plan to raise. And there are -- one thing if you're
`absolutely adamant about proceeding with a significant
`number of claims, I will employ all my resources to try to
`persuade you that that should not be your approach. But in
`the end if we have to, I'll break the case up, and I'll try
`the case involving a smaller number of claims and we'll see
`where we are. That is not an option that I particularly
`welcome because that's burdensome on everybody, but I just
`am not going to see 96 claims, unless there is something
`about the case that's really extraordinary which I haven't
`seen so far.
`
`MR. CHUEBON: Yes, Your Honor.
`THE COURT: The earlier the better for the
`reasons that Mr. Blumenfeld has given.
`MR. CHUEBON: Thank you, Your Honor. If I may,
`there is one reason that there are so many claims. We
`didn't want to raise it to Your Honor, but we did have
`issues with PayPal with their core technology document
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`PayPal Ex. 1056, p. 5
`PayPal v. IOENGINE
`
`