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Case 6:20-cv-00646-ADA Document 10 Filed 09/17/20 Page 1 of 4
`
`UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
`
`MAXELL, LTD.,
`
`Plaintiff,
`
`Case No. 6:20-cv-00646-ADA
`
`v.
`
`APPLE INC.,
`
`Defendant.
`
`MOTION TO STAY ACTION PURSUANT TO 28 U.S.C. § 1659
`PENDING PARALLEL ITC ACTION
`
`Defendant Apple Inc. respectfully moves this Court, pursuant to 28 U.S.C. § 1659 and
`
`the Court’s inherent powers, to stay all proceedings in the above-captioned action until the
`
`determination of the United States International Trade Commission becomes final. Maxell
`
`agrees this action should be stayed, but has suggested without authority that the duration of the
`
`stay should not include any appeals of the International Trade Commission action. Counsel for
`
`Apple has tried for more than a week to elicit from Maxell the basis for its position that any
`
`appeals stemming from the ITC action should be excluded from the statutory stay. But not only
`
`has Maxell not explained its position, its counsel (including its Texas counsel and its lead
`
`counsel) have refused to respond to Apple’s counsel’s emails and phone calls seeking an
`
`explanation. Setting aside Maxell’s intransigence, controlling authority establishes that this case
`
`should be stayed until all appeals of the International Trade Commission action are exhausted.
`
`This Action Should Be Stayed Pursuant to 28 U.S.C. § 1659.
`
`On July 17, 2020, Maxell, Ltd. filed a complaint against Apple before the ITC (“the ITC
`
`action”) alleging infringement of United States Patent Nos. 7,203,517; 8,982,086; 7,199,821;
`
`10,129,590; and 10,176,848 (collectively the “asserted patents”). On July 16, 2020, Maxell filed
`
`WEST\291675102.3
`
`IPR2021-00400
`Apple EX1008 Page 1
`
`

`

`Case 6:20-cv-00646-ADA Document 10 Filed 09/17/20 Page 2 of 4
`
`its complaint against Apple in this action, asserting the same five patents. The ITC instituted the
`
`ITC action on August 19, 2020 as Investigation No. 337-TA-1215. Pursuant to 28 U.S.C. §
`
`1659, district court patent claims that involve the same issues as a parallel ITC proceeding are
`
`subject to a mandatory stay. 28 U.S.C. § 1659(a) provides:
`
`(a) Stay. In a civil action involving parties that are also parties to
`a proceeding before the United States International Trade
`Commission under section 337 of the Tariff Act of 1930, at the
`request of a party to the civil action that is also a respondent in the
`proceeding before the Commission, the district court shall stay,
`until the determination of the Commission becomes final,
`proceedings in the civil action with respect to any claim that
`involves the same issues involved in the proceeding before the
`Commission, but only if such request is made within –
`
`30 days after the party is named as a respondent in the proceeding
`before the Commission, or
`
`30 days after the district court action is filed, whichever is later.
`
`28 U.S.C. § 1659(a) (emphasis added). Here, because the same patents asserted in this action
`
`are also asserted against Apple in the ITC action, and because the parties and the accused
`
`products are also the same, a stay of this case is mandatory upon timely request by Apple. The
`
`Section 1659 mandatory stay applies where a request is made: (1) 30 days after the party is
`
`named as a respondent in the proceeding before the Commission; or (2) 30 days after the district
`
`court action is filed, whichever is later. As such, Apple’s request is timely under
`
`§ 1659(a) because this request is being made within 30 days of the publication in the Federal
`
`Register of the ITC’s Notice of Institution of Investigation, which names Apple as a respondent
`
`in the ITC action. 85 Fed. Reg. 52153 (Aug. 24, 2020).
`
`WEST\291675102.3
`
`- 2 -
`
`IPR2021-00400
`Apple EX1008 Page 2
`
`

`

`Case 6:20-cv-00646-ADA Document 10 Filed 09/17/20 Page 3 of 4
`
`The Mandatory Stay Should Remain in Place Until All Appeals Of The ITC
`Action Are Exhausted.
`
`Under settled Federal Circuit law, a stay under Section 1659 must remain in effect during
`
`any appeals; that is, “until the Commission proceedings are no longer subject to judicial review.”
`
`In re Princo Corp., 478 F.3d 1345, 1355 (Fed. Cir. 2007). Apple is not aware of any Federal
`
`Circuit authority to the contrary, nor has Maxell identified any despite Apple’s (unanswered)
`
`invitations to do so. But no excuse Maxell might provide in its opposition will alter the outcome
`
`on this well-settled issue. Indeed, this Court (consistent with other courts across the nation
`
`considering this issue) has recognized on multiple occasions that a mandatory stay pursuant to
`
`Section 1659 should remain in place until all appeals of the parallel ITC action are exhausted.
`
`See Globalfoundries U.S. Inc. v. Avnet, Inc., No. 6:19-cv-500, Order Granting Motion to Stay
`
`Case (W.D. Tex. Oct. 16, 2019); Globalfoundries U.S. Inc. v. Taiwan Semiconductor Mfg. Co.,
`
`No. 6:19-cv-499, Order Granting Motion to Stay Case (W.D. Tex. Oct. 16, 2019); Neodron Ltd.
`
`v. Sony Corp., No. 6:20-cv-00122, Order Granting Motion to Stay Case (W.D. Tex. Apr. 6,
`
`2020).
`
`Conclusion
`
`For the foregoing reasons, Apple respectfully requests the Court enter the attached
`
`proposed order and stay all proceedings in this action until the ITC proceedings are no longer
`
`subject to judicial review, including all appeals from the ITC’s determination.
`
`Dated: September 17, 2020
`
`Respectfully submitted,
`
`/s/ John M. Guaragna
`
`WEST\291675102.3
`
`- 3 -
`
`IPR2021-00400
`Apple EX1008 Page 3
`
`

`

`Case 6:20-cv-00646-ADA Document 10 Filed 09/17/20 Page 4 of 4
`
`John M. Guaragna
`Texas Bar No 24043308
`DLA PIPER LLP (US)
`401 Congress Avenue, Suite 2500
`Austin, TX 78701-3799
`Tel: 512.457.7125
`Fax: 512.457.7001
`john.guaragna@dlapiper.com
`
`ATTORNEY FOR DEFENDANT
`APPLE INC.
`
`CERTIFICATE OF CONFERENCE
`
`I hereby certify that the undersigned counsel for Defendant, Apple Inc. conferred with
`
`Plaintiffs’ counsel. Plaintiff has not opposed a stay generally, but has opposed language
`
`indicating the stay should remain in effect until all appeals are exhausted. On multiple occasions
`
`Apple requested that Maxell identify the authority it relied upon to support its position, but
`
`Maxell did not respond to Apple’s requests.
`
`/s/ John M. Guaragna
`John M. Guaragna
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that on the 17th day of September 2020, I electronically filed the
`foregoing with the Clerk of Court using the CM/ECF system which will send notification of such
`filing via electronic mail to all counsel of record. Any other counsel of record will be served by
`first class U.S. mail.
`
`/s/ John M. Guaragna
`John M. Guaragna
`
`WEST\291675102.3
`
`- 4 -
`
`IPR2021-00400
`Apple EX1008 Page 4
`
`

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