`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`Before The Honorable William Alsup, Judge
`
`)
`GOOGLE LLC ,
` )
` Plaintiff, )
` )
` VS. ) NO. C 20-06754-WHA
` )
`SONOS, INC.,
`)
` )
` Defendant.
`)
` )
`
` San Francisco, California
` Thursday, October 7, 2021
`
`
`TRANSCRIPT OF REMOTE TELECONFERENCE PROCEEDINGS
`
`
`APPEARANCES: (Appearances via AT&T Teleconference.)
`
`For Plaintiff:
` QUINN, EMANUEL, URQUHART
`& SULLIVAN LLP
` 50 California Street - 22nd Floor
` San Francisco, California 94111
` BY: CHARLES K. VERHOEVEN, ATTORNEY AT LAW
`
`For Defendant:
` ORRICK, HERRINGTON & SUTCLIFFE LLP
` The Orrick Building
` 405 Howard Street
` San Francisco, California 94105
`
`BY: CLEMENT S. ROBERTS, ATTORNEY AT LAW
`
` ORRICK, HERRINGTON & SUTCLIFFE LLP
` 777 South Figueroa Street - Suite 3200
` Los Angeles, California 90017
` BY: ALYSSA M. CARIDIS, ATTORNEY AT LAW
`
`
`
`Reported By: Ruth Levine Ekhaus, RMR, RDR, FCRR
` Official Reporter, CSR No. 12219
`
`
`Page 1 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 2
`
`Thursday - October 7, 2021
`
` 2:21 p.m.
`
`P R O C E E D I N G S
`
`---o0o---
`
`THE CLERK: Please come to order.
`
`We're now calling Civil Case --
`
`THE COURT: The Google case.
`
`THE CLERK: I'm sorry?
`
`THE COURT: Call the Google case first.
`
`THE CLERK: Oh. Okay.
`
`We're now calling Civil Case 20-06754-WHA, Google LLC
`
`versus Sonos Inc.
`
`Counsel, starting with the plaintiff, please state your
`
`appearance for the record.
`
`MR. ROBERTS: Well, Your Honor, this Mr. Roberts, Clem
`
`Roberts, from Orrick Herrington, and with me is Ms. Caridis, on
`
`behalf of Sonos. Whether we are the plaintiff or defendant,
`
`I'm not sure whether the clerk called the DJ case or the
`
`transferred case, but we're certainly operatively plaintiffs.
`
`THE COURT: Okay.
`
`MR. VERHOEVEN: Good afternoon, Your Honor. Charles
`
`Verhoeven on behalf of Google. And with me are some of my
`
`colleagues, and we also have in-house counsel on the phone.
`
`THE COURT: All right. Welcome.
`
`Anyone else?
`
`(No response.)
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`
`Page 2 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 3
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`THE COURT: All right. Just let me make sure I --
`
`let's see.
`
`The Sonos case, has our district court received that from
`
`Texas yet?
`
`MR. VERHOEVEN: Your Honor, this is Mr. Verhoeven.
`
`I believe it has, and the case has been assigned to a
`
`magistrate. Let's see --
`
`THE COURT: Well, I was going to relate it to me,
`
`unless I --
`
`MR. VERHOEVEN: Right, but -- I'm sorry.
`
`THE COURT: Does everyone one agree it should be
`
`related to me?
`
`MR. VERHOEVEN: Yes, we all do, Your Honor.
`
`MR. ROBERTS: Your Honor, we agree it's related to the
`
`existing case. There is also -- for your consideration, there
`
`is another case that's pending between Google and Sonos in the
`
`same courtroom. I understand your preference is to relate
`
`these two cases and that's fine. I just wanted to give you
`
`complete information.
`
`THE COURT: Well, I'm unaware of two other cases. I
`
`thought there was just one in Texas, and then it's now showed
`
`up here. But you're saying there is yet a third one?
`
`MR. ROBERTS: Yes, Your Honor. There is a case where
`
`Google has sued Sonos that -- on several patents that is also
`
`pending in the Northern District of California. And that is an
`
`
`Page 3 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 4
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`earlier filed case. So it's the same parties. It's different
`
`patents. It's different accused products. It's going in the
`
`other direction. But it is an active litigation between the
`
`two parties.
`
`THE COURT: Well, is that the one that was in front of
`
`Judge Chen, I think?
`
`MR. VERHOEVEN: Yes, Your Honor.
`
`THE COURT: All right. So I'm not going to relate
`
`that one. That one is different patents. So that one, I think
`
`it's the same parties, but they -- it's a completely different
`
`problem. So I'm not going to relate that one. But I will
`
`relate the one that is the mirror-image of the case I have that
`
`is coming from Texas. That's what I meant to do.
`
`I hope my law clerk understands that difference. I'm only
`
`going to relate one of the two, namely the one from Texas.
`
`All right. So here is my plan for your case: We're going
`
`to do my showdown, patent showdown and by, probably, May of
`
`next year, we'll be in trial. I will get out an order that
`
`explains how that works.
`
`But the trial will only be on two claims; each of you get
`
`a chance to pick a claim. It won't be on the entire mess. But
`
`I need for you to give me an outside date for the rest of the
`
`mess such -- you know, like, November of next year or even
`
`February of the following year. I can live with that.
`
`But on the showdown, I'm going to speed things along and
`
`
`Page 4 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 5
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`make you work hard, wreck your holidays. You'll wish that you
`
`had stayed in Texas.
`
`So I'll let you try to talk me out of that. The plaintiff
`
`gets to go first. Mr. Roberts.
`
`MR. ROBERTS: Yes. Thank you so much, Your Honor.
`
`Your Honor, our preference, if the Court is willing to
`
`consider it, would be to have the whole mess go to trial in
`
`June. The parties were working --
`
`THE COURT: No, that's not possible. It's impossible.
`
`There are too many claims. How many claims are in suit here?
`
`MR. ROBERTS: Too many claims are in suit, Your Honor.
`
`At the moment, there are 69 claims asserted -- but we know that
`
`those need to be narrowed -- and 353 pieces of prior art.
`
`THE COURT: That is ridiculous. That is ridiculous.
`
`Do you know how hard we're working here at the district
`
`court? I can't imagine that you would try to file a case with
`
`69 claims. It's even more reason to do the patent showdown
`
`faster and get to the heart of it, rather than to let you drag
`
`this out with -- even if it was 29 claims, that's too many.
`
`It's got to be a single-digit case. Maybe nine would not be
`
`too many, but that's ridiculous.
`
`Okay. You haven't talked me out of it.
`
`Mr. Verhoeven, would you like to try to talk me out of it?
`
`MR. VERHOEVEN: The only -- I'm not going to try to
`
`talk you out of it, Your Honor.
`
`
`Page 5 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 6
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`I will mention, just for context, that this is a large
`
`dispute between Google and Sonos, which Sonos instigated, and
`
`there is litigations in other countries as well. And it's a
`
`very large dispute, and so because of that, there is a
`
`possibility -- and I'm not advocating for not doing this
`
`procedure, Your Honor, but there is a possibility that it would
`
`be less effective than it would be in a normal case where the
`
`entire case is subsumed within one courtroom.
`
`THE COURT: Well, you know, you raise a good point.
`
`And I am a victim of my own experience, and when you have these
`
`gigantic, messy cases that sprawl the universe, if some judge
`
`doesn't take the bull by the horns and say "Get in here, we're
`
`going to get a jury" -- see, I've learned that these patent
`
`lawyers don't like juries, and so you will not -- you will be
`
`afraid.
`
`I'm just -- I'm exaggerating here because I know --
`
`Mr. Verhoeven, at least you've tried a case -- that I'm telling
`
`you something, getting it in front of a jury -- I'm pounding
`
`the desk -- is the way to get this whole thing settled. The
`
`whole thing will settle, in my view.
`
`So it's going to be May or June, and I'll give you a date
`
`in, like, February of '23 to try the rest of the case. And --
`
`MR. ROBERTS: Your Honor, could I ask a --
`
`THE COURT: -- that's the way we're going to go.
`
`Okay. Go ahead. Let me hear what you have to say.
`
`
`Page 6 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 7
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`MR. ROBERTS: Yes, Your Honor. This is Mr. Roberts.
`
`If I could ask for you to consider two possible, small
`
`modifications to your usual procedure. I mean the patent
`
`showdown procedure.
`
`The first is, if it's possible, we'd like to try two
`
`claims. If you look at the four patents that we have here in
`
`suit, Your Honor, they're basically two types of inventions.
`
`There are two patents on one invention. There are two patents
`
`on another invention.
`
`And if what we're talking about is trying to, you know,
`
`grab the bull by the horns and get the parties some
`
`information, it would be very helpful if we could put one claim
`
`from each of those two categories of patents in front of Your
`
`Honor and have that. And if Mr. Verhoeven wanted do two
`
`claims, so we were going to trial on four claims, we would have
`
`no objection to that.
`
`And the second part is, Your Honor, is that I know very
`
`often in your patent showdowns, you don't allow damages in.
`
`But, again, as there are many disputes between both parties
`
`relating to lots of patents, part of what we're talking about
`
`here is the valuation of portfolios. And so giving the parties
`
`information about how those patents are valued ought to be
`
`helpful insofar as we're signaling and extrapolating.
`
`And so, if you would consider either or both of those two
`
`modifications, we would appreciate it.
`
`
`Page 7 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 8
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`THE COURT: Well, wait a minute. I understand the
`
`point about the two versus one, but I don't understand -- what
`
`do you mean I don't allow damages in?
`
`MR. ROBERTS: My understanding was that damages would
`
`be bifurcated. But if we're going to have damages in the
`
`patent showdown procedure so we can put on a damages case, then
`
`that's fine.
`
`THE COURT: Well, okay. I see what you mean. I'll
`
`think about it. I don't --
`
`MR. VERHOEVEN: Your Honor, this is Mr. Verhoeven.
`
`If I could quickly respond?
`
`THE COURT: Yes, please.
`
`MR. VERHOEVEN: I think it's a little premature to
`
`make decisions like this at this point. For example, we're
`
`going to be amending our complaint. I don't believe that --
`
`believe it or not, I don't believe the case is at issue yet.
`
`But, in any event, we intend to amend the complaint. And we'll
`
`work with Mr. Roberts and his side to see if we can't just do
`
`it by stipulation. But that's one thing.
`
`And in terms of the number of claims and damages and not
`
`damages, I just think it would be better for -- if there was a
`
`dispute, that we should meet and confer with each other. And
`
`if there is a dispute or a joint suggestion, we could make that
`
`at a later point in time. We've got a lot of time until May.
`
`THE COURT: All right. I'll consider what you've just
`
`
`Page 8 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 9
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`said.
`
`What is the product?
`
`MR. ROBERTS: So, Your Honor, the accused products
`
`that we're talking about here really are smartphones and
`
`speakers. So we're talking about, you know, speakers that go
`
`inside your house and that can be used to play back music. And
`
`when we're talking about the controllers, which are implemented
`
`in software on a smartphone -- and so we're talking really
`
`about, you know, software on smartphones and, you know, home
`
`stereo -- wireless smartphone stereo systems.
`
`MR. VERHOEVEN: Your Honor, Mr. Verhoeven here.
`
`I would tend to agree with that description. These are
`
`speaker patents that concern a system that has speakers.
`
`In our view, I wanted to raise this issue with Your Honor
`
`today too on the patents. We believe that these patents are so
`
`trivial and so -- lack so much detail that it would be worth
`
`the Court's effort if we did an early Section 101 motion on the
`
`patents.
`
`And to the extent we're talking about a schedule, I would
`
`request to the Court that we -- I think, it would be efficient
`
`to do that right at the outset, Your Honor, rather than spend a
`
`bunch of money on discovery and whatnot, just to learn that the
`
`patents are going to be invalidated under 101.
`
`So I would suggest that we have an early 12(c) motion, if
`
`you want to call it that, where Your Honor can determine
`
`
`Page 9 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 10
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`whether or not the patents are enforceable under Section 101.
`
`THE COURT: Do you have any -- is there a PTAB
`
`proceeding?
`
`MR. VERHOEVEN: There is one IPR that's been filed on
`
`one of the patents, and that's it so far. And we -- I can
`
`speak for Google, we don't intend to move for a stay based on
`
`that.
`
`THE COURT: How many -- how many patents are there all
`
`together?
`
`MR. VERHOEVEN: It's four patents, Your Honor. And I
`
`can go through in detail and explain why I think they are
`
`susceptible to 101 if you would like, but --
`
`THE COURT: No, not yet. But what's the one that's in
`
`the IPR?
`
`MR. VERHOEVEN: The '615. Let's see. Which one --
`
`MR. ROBERTS: Your Honor, they just filed the IPR a
`
`couple of days ago after the transfer decision came down. I
`
`don't think they filed it before then because of Fintiv, and
`
`they -- then they thought they got more time after the case was
`
`transferred, so then they went ahead and filed the IPR.
`
`THE COURT: "They" being who?
`
`MR. ROBERTS: "They" being Google, Your Honor.
`
`This is Mr. Roberts from --
`
`THE COURT: Google has sought an IPR on the '615?
`
`MR. ROBERTS: Correct, Your Honor.
`
`
`Page 10 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 11
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`MR. VERHOEVEN: To answer your question, Your Honor,
`
`the '615 is -- we've grouped the patents into two categories
`
`for ease of reference. I think we have. I'll be corrected if
`
`I'm wrong but two of the patents are referred to as the "zone
`
`scene" patents. Those are the '966 -- '966 and '885.
`
`And then -- bear with me here. And then those two patents
`
`are referred to as -- we call them the Q, as in Charles -- I'm
`
`sorry, C as in Charles, Q patents. And those are the '033
`
`patent and the '615 patent.
`
`THE COURT: Are you going to file IPR on any more?
`
`MR. VERHOEVEN: We're considering it, but they have no
`
`current plans to move forward with more IPRs.
`
`THE COURT: If you could only bring a Section 101
`
`motion on one individual patent, which one would it be?
`
`MR. VERHOEVEN: I would have to go re-look at them,
`
`Your Honor, because, frankly, they are very trivial and they
`
`are all great candidates. I could pick one if Your Honor would
`
`prefer to do it that way.
`
`THE COURT: Explain to me why they are so ridiculous.
`
`MR. VERHOEVEN: Well, for example, the QC patent,
`
`essentially, what they're -- what they concern, Your Honor, is
`
`transferring playback of media from one hardware device to
`
`another. That's the invention. And, you know, two patents
`
`that basically concern some details about a method for
`
`transferring streaming media from one playback device to
`
`
`Page 11 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 12
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`another playback device; something that's been done manually
`
`for years and years. At your house, you turn on the radio, and
`
`if you want to listen in a different room, you turn on the
`
`other radio in the different room. You're still manually --
`
`you're doing it manually, but you're able to do this basic
`
`practice. So that's the QC patents.
`
`The other two patents, Your Honor, the zone scene patents
`
`are continuations, and there's patents that Sonos already has
`
`on the arrangement and placement of speakers in zones. And
`
`these patents add the words "zone scene" and that's it. The
`
`word "scene." And that's been construed already by the Court
`
`to mean that the zones have a common theme.
`
`So these patents are essentially grouping zones according
`
`to a common theme. You know, again, it's very simple ways of
`
`manipulating existing technology that anyone could do who's put
`
`their head to it. And they are not -- there is no technical
`
`innovation there. They're -- we think they are all subject to
`
`101.
`
`MR. ROBERTS: Your Honor, this is Mr. Roberts. .
`
`May I respond briefly?
`
`THE COURT: Sure. Of course. Go ahead.
`
`MR. ROBERTS: So a couple of things, Your Honor.
`
`First, Mr. Verhoeven -- the rhetorics around, like, these
`
`are simple patents, I would just ask the Court to leave that
`
`aside. Mr. Verhoeven was saying the exact same things about
`
`
`Page 12 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 13
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`the five Sonos patents in the ITC. They were trivial; they
`
`were obvious in light of the prior art; we had so much prior
`
`art; these are completely trivial; it was Rule 11, yet all five
`
`of them were found valid and infringed.
`
`So I would ask the Court to withhold judgment,
`
`notwithstanding Mr. Verhoeven's rhetoric about these how these
`
`are trivial or simple. Obviously, we disagree.
`
`The second point I would make is: If these were ripe
`
`candidates for 101, this case has been around for quite a
`
`while, Mr. Verhoeven hasn't filed any 101 challenges. He could
`
`have filed the 12(c) motion before now. He could have filed a
`
`12(b)(6) motion before now. No such motion has been filed.
`
`We have final invalidity contentions. We have final
`
`infringement contentions. This case has been moving along,
`
`quite along. We have coming to Your Honor early next week a
`
`request to go to the Hague for third-party discovery as soon as
`
`we get back the discovery responses from Spotify, which has
`
`refused to provide discovery here. We're actively in
`
`discovery.
`
`So the notion that somehow we ought to slow the trains up
`
`and do 101 because this is totally trivial and ought to be
`
`disposed of at the outset, you know, there has been quite a lot
`
`of motions and quite a lot of paper spilt on these patents
`
`already and the notion that this is really a trivial
`
`outset-type issue just doesn't ring true in light of that
`
`
`Page 13 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 14
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`history.
`
`I would be happy to respond to the specifics about the
`
`patents if it would be interesting to Your Honor. But there
`
`is -- you know, the way in which you transfer media that is
`
`playing back to your phone, in synchronicity, without skipping
`
`a beat, using the cloud, to a set of devices within the home
`
`and how you do that, that is a technology that they have
`
`adopted from us. And nobody was doing it before Sonos. And,
`
`you know, they -- we just fundamentally disagree with their
`
`characterization of the patents.
`
`THE COURT: All right. I'll get out an order -- yes?
`
`MR. VERHOEVEN: I was just going to have a quick
`
`response, Your Honor.
`
`THE COURT: All right. Go ahead.
`
`MR. VERHOEVEN: Just so you know, the reason that we
`
`haven't filed it yet is because in the local rules in the
`
`Western District of Texas, the first -- I don't know -- six to
`
`eight months of the case are devoted to -- if it's a transfer
`
`motion, are devoted to discovery solely and exclusively on the
`
`issue of transfer. And so we have had no discovery. We have
`
`had no opportunity to do anything except have the transfer
`
`motion decided. Although the Court did rule on Markman -- what
`
`was it -- four days after he denied transfer.
`
`But we haven't -- the reason we haven't been filing a 101
`
`is because we were focusing on get the case transferred,
`
`
`Page 14 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 15
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Your Honor.
`
`Secondly, I'm not really interested in playing games about
`
`what happened in another case. But I will point out that
`
`counsel neglected to mention that, in the initial determination
`
`at the ITC, the ALJ recommended and found that there is no
`
`infringement of any of the five asserted patents under Google's
`
`design-around, which has been adjudicated and ruled upon.
`
`I'm done, Your Honor.
`
`THE COURT: All right. With respect to ADR, what is
`
`your druther? Do you want a private mediator? Do you want a
`
`magistrate judge? What do you want?
`
`MR. ROBERTS: Your Honor, I hesitate to take up court
`
`resources for this. The parties have mediated this dispute
`
`several times. I think it's certainly appropriate to order us
`
`to do so at some point. But, as Mr. Verhoeven said, this is a
`
`large, complex dispute. And I just -- I hesitate to impose on
`
`the court's resources any more than we are.
`
`THE COURT: Are you saying private mediation?
`
`MR. ROBERTS: Yes, Your Honor.
`
`THE COURT: All right. I'm going to give you until
`
`December 3rd to pick the mediator and be on the calendar of the
`
`mediator. And then I'll give you until May 27 to actually do
`
`the mediation.
`
`All right. The way this is going to work is I'm going to
`
`give you a standard a case management order, but then I'm going
`
`
`Page 15 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 16
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`to also give you a showdown order and they will operate side by
`
`side. And you must do all of your infringement contentions on
`
`everything and your invalidity contentions on every single
`
`claim that's at issue. Even if we're doing the showdown, you
`
`still got to -- the big case moves along in parallel with the
`
`showdown. So that's the way I like to do it.
`
`MR. ROBERTS: Your Honor, could I just ask a question
`
`about that?
`
`We did final infringement and invalidity contentions in
`
`Texas. And those are in two parts. There is a cover pleading,
`
`which differs from this Court's form a little bit. And then
`
`there are charts, which are essentially identical to this
`
`Court's requirement.
`
`And so we, on behalf of Sonos, would propose that the
`
`charts which everybody submitted as final infringement and
`
`invalidity contentions, be fixed and that those are done, and
`
`that we redo the cover pleadings, because we want to put them
`
`in the form that this Court prefers. But we do not necessarily
`
`think we ought to be going back and doing another full bite at
`
`the apple on infringement and invalidity when we've got those
`
`contentions done, in final form, and everybody understood that
`
`they were set in Texas.
`
`THE COURT: All right. What's the response to that?
`
`MR. VERHOEVEN: This is Mr. Verhoeven.
`
`I don't have an issue with that, Your Honor.
`
`
`Page 16 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 17
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`I would also mention, along the same lines, in terms of
`
`cleaning up things, there are two outstanding motions that have
`
`been filed and have not been ruled upon in the Western
`
`District. And my suggestion would be that we just refile them
`
`pursuant to the local rules here. But if Your Honor wants, we
`
`could just indicate what they are and, Your Honor, could pull
`
`them out.
`
`THE COURT: What are those motions?
`
`MR. VERHOEVEN: Oh. Okay. One is, a motion to
`
`dismiss Sonos's willfulness allegations.
`
`And it might be helpful to wait until we see what
`
`they're -- I assume we're going to get some counterclaims from
`
`them for patent infringement. So it may make sense for us
`
`to -- well, I guess we should talk about that. I mean,
`
`currently --
`
`MR. ROBERTS: Mr. Verhoeven -- sorry.
`
`MR. VERHOEVEN: Currently there is -- I'm sorry. I
`
`didn't want to interrupt. Is someone talking?
`
`MR. ROBERTS: Yeah. I was just saying, I'm happy -- I
`
`don't have a problem with your either refiling the motions or
`
`you renewing them. Perhaps we could just talk about this
`
`offline in terms of working on amending the pleadings, and
`
`those kind of things. I'm sure we could work this out.
`
`MR. VERHOEVEN: Great. I just didn't -- in case His
`
`Honor had a preference, I just -- those were the two options I
`
`
`Page 17 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 18
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`was looking at, Your Honor.
`
`THE COURT: I want you to refile those motions, but
`
`the one on the willfulness, okay. What is the other one on?
`
`MR. VERHOEVEN: The other one is a motion to strike
`
`Sonos's conception dates. There is a -- there is a -- Google
`
`filed a motion to strike Sonos's conception date because Sonos
`
`failed to timely disclose conception and reduction to practice
`
`evidence in compliance with Judge Allbright's rules.
`
`You know, this motion is based on the local rules of the
`
`Western District of Texas, but they are basically the same as
`
`the Northern District rules in substance, Your Honor.
`
`THE COURT: Wait. Wait. I am not going to -- no.
`
`That will have to be refiled and be based on whatever rules we
`
`got here. I'm not going to -- please don't -- I'm not going to
`
`start enforcing Western District rules. So that one I'm not
`
`going to allow. That one is denied. But the other one, I'll
`
`let you refile it under -- and I'll go ahead and hear that one.
`
`MR. VERHOEVEN: Thank you, Your Honor.
`
`On the -- on the one about conception date, I don't want
`
`Google to be prejudiced because of the transfer. And although
`
`the local rules aren't identical, Your Honor, there is
`
`deadlines in California as well that have the same consequences
`
`if they're missed.
`
`THE COURT: But the case just got here.
`
`MR. VERHOEVEN: I'm sorry?
`
`
`Page 18 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 19
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`THE COURT: Didn't the case just arrive here? And I
`
`had stayed the case, the other case; right? So I don't see how
`
`it could be late here.
`
`MR. VERHOEVEN: All right. Well, this ties into the
`
`contentions and whatnot. So I'll confer -- hopefully, we can
`
`just resolve it and I'll confer with Sonos's counsel.
`
`THE COURT: This must be a pretty sold old patent,
`
`because if we're having to rely on a date of conception -- how
`
`old are these patents?
`
`MR. ROBERTS: I apologize, Your Honor. I don't have
`
`the priority dates in front of me.
`
`THE COURT: Okay.
`
`MR. ROBERTS: Some of them go back a way.
`
`THE COURT: Do they go back more than 10 years?
`
`MR. VERHOEVEN: Here, I have them, Your Honor. Hold
`
`on a sec.
`
`MR. ROBERTS: Ms. Caridis, do you have that handy?
`
`MS. CARIDIS: Yes, Your Honor. This is Alyssa Caridis
`
`on behalf of Sonos.
`
`The zone scenes patents date back to 2005 and the Cloud Q
`
`patents date back to 2011.
`
`THE COURT: All right. Well, 2005, I guess, the date
`
`of conception doesn't matter. Maybe.
`
`MR. ROBERTS: I will point out, Your Honor, that they
`
`have, I think, if I'm get the number here correct, they have
`
`
`Page 19 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`PROCEEDINGS
`
` 20
`
`353 prior art references that they have cited against the
`
`patents.
`
`THE COURT: Well, you've got 69 claims. That's not so
`
`bad with 69 claims.
`
`MR. ROBERTS: Yes, your Honor. I'm not arguing about
`
`excessiveness. I'm just saying that I believe they've already
`
`boiled the ocean.
`
`THE COURT: Well, excellent.
`
`MR. VERHOEVEN: And anyway, Your Honor, I'll meet and
`
`confer on that other motion and see if we can't throw that in
`
`the mix of things we're negotiating with to see if we can't
`
`just resolve it and not have to raise -- have it raise its head
`
`again.
`
`THE COURT: Thank you.
`
`All right. I've got to run because I've got another case
`
`to deal with here. And I'll get some orders out.
`
`And welcome to the Court. Good luck to both sides.
`
`MR. VERHOEVEN: Thank you, Your Honor.
`
`MR. ROBERTS: Thank you.
`
`THE COURT: You all can hang up now.
`
`(Proceedings adjourned at 2:59 p.m.)
`
`---o0o---
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`
`Page 20 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`
`
`CERTIFICATE OF REPORTER
`
` I certify that the foregoing is a correct transcript
`
`from the record of proceedings in the above-entitled matter.
`
`DATE: Tuesday, October 12, 2021
`
`
`
`
`
`
`
`
`
`
`
` __________________________________________________
`Ruth Levine Ekhaus, RMR, RDR, FCRR, CSR No. 12219
` Official Reporter, U.S. District Court
`
`
`
` 1
`
` 2
`
` 3
`
` 4
`
` 5
`
` 6
`
` 7
`
` 8
`
` 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`
`Page 21 of 21
`
`SONOS EXHIBIT 2001
`GOOGLE v. SONOS (IPR2021-01563)
`
`