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Case 2:17-cv-00514-JRG Document 207 Filed 02/21/19 Page 1 of 9 PageID #: 18159
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`
`AGIS SOFTWARE DEVELOPMENT LLC,
`
`
`Plaintiff,
`
`
`
`v.
`
`
`HTC CORPORATION,
`
`
`Defendant.
`










`
`
`Case No. 2:17-CV-0514-JRG
`(LEAD CASE)
`
`JURY TRIAL DEMANDED
`
`
`
`
`
`
`AGIS SOFTWARE DEVELOPMENT LLC’S RESPONSE IN OPPOSITION TO
`HTC CORPORATION’S SEALED MOTION FOR SUMMARY JUDGMENT
`OF NO PRE-SUIT INDIRECT INFRINGEMENT (DKT. 109)
`
`
`
`

`

`Case 2:17-cv-00514-JRG Document 207 Filed 02/21/19 Page 2 of 9 PageID #: 18160
`
`Plaintiff AGIS Software Development LLC (“AGIS”) respectfully submits this Response
`
`in Opposition to HTC Corporation’s (“HTC” or “Defendant”) Sealed Motion for Summary
`
`Judgment of No Pre-Suit Indirect Infringement (Dkt. 109).
`
`I.
`
`
`
`INTRODUCTION
`
`AGIS does not intend to assert at trial pre-suit indirect infringement. Because there is no
`
`case or controversy regarding these issues, HTC’s motion should be denied.
`
`II.
`
`STATEMENT OF ISSUES TO BE DECIDED
`
`1. Whether HTC can be liable for pre-suit indirect infringement as a matter of law when
`
`it had no pre-suit knowledge of the asserted patents.
`
`
`
`Response: Whether HTC is entitled to judgment as a matter of law that it is not liable for
`
`pre-suit indirect infringement as a matter of law when AGIS does not intend to present pre-suit
`
`indirect infringement at trial.
`
`III. RESPONSE TO RECITATION OF UNDISPUTED FACTS
`
`1.
`
`AGIS alleges that HTC induces infringement of the asserted patents and
`
`contributorily infringes the asserted patents.
`
`
`
`Response: Disputed, however, AGIS does not intend to present a theory of pre-suit
`
`indirect infringement at trial.
`
`2.
`
`AGIS seeks pre-suit damages for HTC’s alleged indirect infringement.
`
`
`
`Response: Disputed, however, AGIS does not intend to present a theory of pre-suit
`
`indirect infringement at trial. As AGIS explained in correspondence with HTC, HTC has
`
`continued to support and update the accused HTC devices, even after AGIS filed its complaint,
`
`and after HTC had notice of the patents. Accordingly, HTC has induced its customers to infringe
`
`at least by causing their customers to upgrade their devices to newer versions of the Android
`
`Operating System, Google Maps app, and Find My Device app which include the accused
`
`
`
`

`

`Case 2:17-cv-00514-JRG Document 207 Filed 02/21/19 Page 3 of 9 PageID #: 18161
`
`functionalities. Additionally, AGIS maintains its direct infringement case that HTC had directly
`
`infringed the patents by selling and/or offering the products for sale in the United States. As
`
`such, AGIS is entitled to seek the full scope of its damages at trial. See Ex. A, Letter to M.
`
`Bernstein from V. Rubino, dated November 28, 2018; Ex. B, Expert Report of Joseph
`
`McAlexander at ¶¶ 129, 134.
`
`3.
`
`In the Complaint, AGIS’s only allegation as to HTC’s knowledge of the patents
`
`and knowledge of the alleged infringement is that HTC had knowledge “at least as of the date of
`
`this Complaint.”
`
`
`
`Response: Disputed, however, as stated above, AGIS does not intend to present a theory
`
`of pre-suit indirect infringement at trial.
`
`4.
`
`On November 7, 2018, HTC served Interrogatory No. 17 on AGIS, for which
`
`AGIS responded: “Discovery in this case is still ongoing and AGIS continues to investigate this
`
`matter.”
`
`
`
`Response: Undisputed.
`
`5.
`
`On November 7, 2018, HTC served Interrogatory No. 18 on AGIS, for which
`
`AGIS responded: “HTC received notice of the Patents-in-Suit, at least of [sic] the date of the
`
`Complaint.”
`
`
`
`Response: Undisputed.
`
`6.
`
`On November 7, 2018, HTC served Request for Admission No. 1 on AGIS, for
`
`which AGIS responded: “Admitted.”
`
`
`
`Response: Undisputed.
`
`2
`
`

`

`Case 2:17-cv-00514-JRG Document 207 Filed 02/21/19 Page 4 of 9 PageID #: 18162
`
`7.
`
`HTC served other requests for admission as to any party providing pre-suit notice
`
`to HTC about the existence of the asserted patents or alleged infringement thereof, but AGIS
`
`responded only with objections.
`
`
`
`Response: Undisputed.
`
`8.
`
`None of AGIS’s fact witnesses could recall any pre-suit notice to HTC of the
`
`asserted patents or alleged infringement thereof.
`
`
`
`Response: Undisputed.
`
`9.
`
`HTC’s Rule 30(b)(6) witness testified that HTC first became aware of the asserted
`
`patents: “After HTC was sued.”
`
`
`
`Response: Undisputed that HTC was aware of the patents at least as of the filing of the
`
`Complaint.
`
`10.
`
`On November 13, 2018, in an attempt to narrow the issues in this case, counsel
`
`for HTC sent a letter to counsel for AGIS asking AGIS to stipulate that HTC “does not induce
`
`infringement [of the ’970 patent] prior to AGIS’s filing of the complaint (June 21, 2017).”
`
`
`
`Response: Undisputed.
`
`11.
`
`The letter noted that discovery had no evidence of pre-suit knowledge of the ’970
`
`patent by HTC, and that as a result HTC had not committed pre-suit induced infringement as a
`
`matter of law.
`
`
`
`Response: Disputed, however, AGIS does not intend to present a theory of pre-suit
`
`indirect infringement at trial. As AGIS explained in response to HTC’s letter, AGIS is entitled to
`
`the full scope of its damages at least based on HTC’s post-complaint acts.
`
`12.
`
`Counsel for AGIS responded with a paragraph that seemingly argued that HTC
`
`could still be liable for post-suit induced infringement.
`
`3
`
`

`

`Case 2:17-cv-00514-JRG Document 207 Filed 02/21/19 Page 5 of 9 PageID #: 18163
`
`
`
`Response: Undisputed that HTC is liable for post-suit induced infringement. However,
`
`as AGIS explained in response to HTC’s letter, AGIS is entitled to the full scope of its damages
`
`at least based on HTC’s post-complaint acts.
`
`13.
`
`Counsel for HTC made one last attempt to resolve the matter:
`
`It is black letter law that there cannot be induced infringement without notice of
`the patents-in-suit. There was no pre-suit notice, and AGIS’s pre-suit inducement
`claims are therefore frivolous as a matter of law.
`
`Response: AGIS does not intend to present a theory of pre-suit indirect infringement at
`
`trial. Undisputed that HTC is liable for post-suit induced infringement. However, as AGIS
`
`explained in response to HTC’s letter, AGIS is entitled to the full scope of its damages at least
`
`based on inducement based on HTC’s post-complaint acts, as well as HTC’s direct infringement
`
`of the patents.
`
`IV. ARGUMENT
`
`
`
`HTC seeks summary judgment on issues that are not in dispute. As AGIS explained in
`
`its November 28, 2018 letter, AGIS intends to pursue direct infringement and post-complaint
`
`inducement at trial which entitles AGIS to the full scope of its damages. Ex. A. AGIS does not
`
`contend and will not allege at trial that HTC indirectly infringes any claim of the Patents-in-Suit
`
`prior to the filing date of the Complaint. HTC’s motion for summary judgment seeks dispositive
`
`judgments on issues for which there is no present case or controversy, and HTC cites to no case
`
`law holding that such relief is appropriate. To the contrary, case law in this District indicates
`
`that courts should not grant summary judgment on issues that are not to be presented at trial. See
`
`e.g., VirnetX Inc. v. Apple Inc., 925 F. Supp. 2d 816, 849 (E.D. Tex. 2013) (rev’d, 767 F.3d 1308
`
`(Fed. Cir. 2014)) on other grounds (“The Court encourages and requires the parties to narrow
`
`their case for trial. Accordingly, the Court will not penalize such attempts to narrow issues by
`
`4
`
`

`

`Case 2:17-cv-00514-JRG Document 207 Filed 02/21/19 Page 6 of 9 PageID #: 18164
`
`entering judgment on issues not presented at trial.”). HTC’s motion should, therefore, be denied
`
`as moot.
`
`V.
`
`CONCLUSION
`
`For the foregoing reasons, HTC has failed to show good cause for its motion and AGIS
`
`respectfully requests that the Court deny HTC’s Motion for Summary Judgment of No Pre-Suit
`
`Indirect Infringement.
`
`Dated: February 19, 2019
`
`
`
`
`
`
`
`
`BROWN RUDNICK LLP
`
` /s/ Alfred R. Fabricant
`
`
`
`Alfred R. Fabricant
`NY Bar No. 2219392
`Email: afabricant@brownrudnick.com
`Lawrence C. Drucker
`NY Bar No. 2303089
`Email: ldrucker@brownrudnick.com
`Peter Lambrianakos
`NY Bar No. 2894392
`Email: plambrianakos@brownrudnick.com
`Vincent J. Rubino, III
`NY Bar No. 4557435
`Email: vrubino@brownrudnick.com
`Alessandra C. Messing
`NY Bar No. 5040019
`Email: amessing@brownrudnick.com
`Shahar Harel
`NY Bar No. 4573192
`Email: sharel@brownrudnick.com
`John A. Rubino
`NY Bar No. 5020797
`Email: jrubino@brownrudnick.com
`Enrique W. Iturralde
`NY Bar No. 5526280
`Email: eiturralde@brownrudnick.com
`Timothy J. Rousseau
`NY Bar No. 4698742
`Email: trousseau@brownrudnick.com
`Daniel J. Shea, Jr.
`NY Bar No. 5430558
`Email: dshea@brownrudnick.com
`Justine Minseon Park
`
`5
`
`

`

`Case 2:17-cv-00514-JRG Document 207 Filed 02/21/19 Page 7 of 9 PageID #: 18165
`
`NY Bar No. 5604483
`Email: apark@brownrudnick.com
`BROWN RUDNICK LLP
`7 Times Square
`New York, NY 10036
`Telephone: 212-209-4800
`Facsimile: 212-209-4801
`
`Samuel F. Baxter
`Texas State Bar No. 01938000
`Email: sbaxter@mckoolsmith.com
`Jennifer L. Truelove
`Texas State Bar No. 24012906
`Email: jtruelove@mckoolsmith.com
`McKOOL SMITH, P.C.
`104 East Houston Street, Suite 300
`Marshall, Texas 75670
`Telephone: 903-923-9000
`Facsimile: 903-923-9099
`
`ATTORNEYS FOR PLAINTIFF, AGIS
`SOFTWARE DEVELOPMENT LLC
`
`
`6
`
`

`

`Case 2:17-cv-00514-JRG Document 207 Filed 02/21/19 Page 8 of 9 PageID #: 18166
`Case 2:17-cv-00514—JRG Document 207 Filed 02/21/19 Page 8 of 9 PageID #: 18166
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`
`
`——
`
`
`
`—
`
`
`
`7
`
`

`

`Case 2:17-cv-00514-JRG Document 207 Filed 02/21/19 Page 9 of 9 PageID #: 18167
`
`
`
`CERTIFICATE OF SERVICE
`
`The undersigned hereby certifies that, on February 19, 2019, all counsel of record who
`
`are deemed to have consented to electronic service are being served with a copy of this document
`
`via the Court’s CM/ECF system per Local Rule CV-5(a)(3).
`
`
`/s/ Alfred R. Fabricant
`
` Alfred R. Fabricant
`
`
`
`
`
`
`
`
`
`

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