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`UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
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`MAXELL, LTD.,
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`Plaintiff,
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`Case No. 6:20-cv-00646-ADA
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`v.
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`APPLE INC.,
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`Defendant.
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`MOTION TO STAY ACTION PURSUANT TO 28 U.S.C. § 1659
`PENDING PARALLEL ITC ACTION
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`Defendant Apple Inc. respectfully moves this Court, pursuant to 28 U.S.C. § 1659 and
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`the Court’s inherent powers, to stay all proceedings in the above-captioned action until the
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`determination of the United States International Trade Commission becomes final. Maxell
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`agrees this action should be stayed, but has suggested without authority that the duration of the
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`stay should not include any appeals of the International Trade Commission action. Counsel for
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`Apple has tried for more than a week to elicit from Maxell the basis for its position that any
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`appeals stemming from the ITC action should be excluded from the statutory stay. But not only
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`has Maxell not explained its position, its counsel (including its Texas counsel and its lead
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`counsel) have refused to respond to Apple’s counsel’s emails and phone calls seeking an
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`explanation. Setting aside Maxell’s intransigence, controlling authority establishes that this case
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`should be stayed until all appeals of the International Trade Commission action are exhausted.
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`This Action Should Be Stayed Pursuant to 28 U.S.C. § 1659.
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`On July 17, 2020, Maxell, Ltd. filed a complaint against Apple before the ITC (“the ITC
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`action”) alleging infringement of United States Patent Nos. 7,203,517; 8,982,086; 7,199,821;
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`10,129,590; and 10,176,848 (collectively the “asserted patents”). On July 16, 2020, Maxell filed
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`its complaint against Apple in this action, asserting the same five patents. The ITC instituted the
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`ITC action on August 19, 2020 as Investigation No. 337-TA-1215. Pursuant to 28 U.S.C. §
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`1659, district court patent claims that involve the same issues as a parallel ITC proceeding are
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`subject to a mandatory stay. 28 U.S.C. § 1659(a) provides:
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`(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 –
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`30 days after the party is named as a respondent in the proceeding
`before the Commission, or
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`30 days after the district court action is filed, whichever is later.
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`28 U.S.C. § 1659(a) (emphasis added). Here, because the same patents asserted in this action
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`are also asserted against Apple in the ITC action, and because the parties and the accused
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`products are also the same, a stay of this case is mandatory upon timely request by Apple. The
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`Section 1659 mandatory stay applies where a request is made: (1) 30 days after the party is
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`named as a respondent in the proceeding before the Commission; or (2) 30 days after the district
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`court action is filed, whichever is later. As such, Apple’s request is timely under
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`§ 1659(a) because this request is being made within 30 days of the publication in the Federal
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`Register of the ITC’s Notice of Institution of Investigation, which names Apple as a respondent
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`in the ITC action. 85 Fed. Reg. 52153 (Aug. 24, 2020).
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`The Mandatory Stay Should Remain in Place Until All Appeals Of The ITC
`Action Are Exhausted.
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`Under settled Federal Circuit law, a stay under Section 1659 must remain in effect during
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`any appeals; that is, “until the Commission proceedings are no longer subject to judicial review.”
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`In re Princo Corp., 478 F.3d 1345, 1355 (Fed. Cir. 2007). Apple is not aware of any Federal
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`Circuit authority to the contrary, nor has Maxell identified any despite Apple’s (unanswered)
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`invitations to do so. But no excuse Maxell might provide in its opposition will alter the outcome
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`on this well-settled issue. Indeed, this Court (consistent with other courts across the nation
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`considering this issue) has recognized on multiple occasions that a mandatory stay pursuant to
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`Section 1659 should remain in place until all appeals of the parallel ITC action are exhausted.
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`See Globalfoundries U.S. Inc. v. Avnet, Inc., No. 6:19-cv-500, Order Granting Motion to Stay
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`Case (W.D. Tex. Oct. 16, 2019); Globalfoundries U.S. Inc. v. Taiwan Semiconductor Mfg. Co.,
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`No. 6:19-cv-499, Order Granting Motion to Stay Case (W.D. Tex. Oct. 16, 2019); Neodron Ltd.
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`v. Sony Corp., No. 6:20-cv-00122, Order Granting Motion to Stay Case (W.D. Tex. Apr. 6,
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`2020).
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`Conclusion
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`For the foregoing reasons, Apple respectfully requests the Court enter the attached
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`proposed order and stay all proceedings in this action until the ITC proceedings are no longer
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`subject to judicial review, including all appeals from the ITC’s determination.
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`Dated: September 17, 2020
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`Respectfully submitted,
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`/s/ John M. Guaragna
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`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
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`ATTORNEY FOR DEFENDANT
`APPLE INC.
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`CERTIFICATE OF CONFERENCE
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`I hereby certify that the undersigned counsel for Defendant, Apple Inc. conferred with
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`Plaintiffs’ counsel. Plaintiff has not opposed a stay generally, but has opposed language
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`indicating the stay should remain in effect until all appeals are exhausted. On multiple occasions
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`Apple requested that Maxell identify the authority it relied upon to support its position, but
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`Maxell did not respond to Apple’s requests.
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`/s/ John M. Guaragna
`John M. Guaragna
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`CERTIFICATE OF SERVICE
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`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.
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`/s/ John M. Guaragna
`John M. Guaragna
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