`
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`AGIS SOFTWARE DEVELOPMENT LLC,
`
`
`Plaintiff,
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`
`
`v.
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`§
`
`§
`Case No. 2:22-cv-00263-JRG
`§
`
`JURY TRIAL DEMANDED
`§
`§
`
`§
`
`§
`§
`§
`§
`§
`§
`§
`
`
`SAMSUNG ELECTRONICS CO., LTD. and
`SAMSUNG ELECTRONICS AMERICA,
`INC.,
`
`
`
`Defendants.
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`
`
`
`
`PLAINTIFF AGIS SOFTWARE DEVELOPMENT LLC’S RESPONSE
`IN OPPOSITION TO DEFENDANTS SAMSUNG ELECTRONICS CO., LTD. AND
`SAMSUNG ELECTRONICS AMERICA, INC.’S MOTION TO STAY (DKT. 40)
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`
`
`
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 2 of 13 PageID #: 1208
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`
`I.
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`II.
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`III.
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`IV.
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`TABLE OF CONTENTS
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`Page(s)
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`INTRODUCTION ............................................................................................................ 1
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`BACKGROUND .............................................................................................................. 2
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`LEGAL STANDARD ....................................................................................................... 4
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`ARGUMENT .................................................................................................................... 5
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`A.
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`B.
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`A Stay Pursuant to 28 U.S.C. § 1659 is Not Warranted ....................................... 6
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`The Court Should Decline to Stay the Case Pursuant to its Inherent
`Power .................................................................................................................... 7
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`V.
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`CONCLUSION ................................................................................................................. 8
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`
`
`
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`i
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 3 of 13 PageID #: 1209
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`TABLE OF AUTHORITIES
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`
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`Page(s)
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`Cases
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`AGIS Software Dev. LLC v. Samsung Elec. Co.,
`No. 2:19-cv-00362-JRG, Dkt. 1 (E.D. Tex. Nov 4, 2019) .....................................................5, 6
`
`Clinton v. Jones,
`520 U.S. 681 (1997) ...................................................................................................................7
`
`Datatreasury Corp. v. Wells Fargo & Co.,
`490 F. Supp. 2d 749 (E.D. Tex. 2006) .......................................................................................7
`
`In re Davis,
`730 F.2d 176 (5th Cir. 1984) .....................................................................................................7
`
`In re Google LLC,
`No. 2022-0126, Dkt. 2-1 (Fed. Cir. Feb. 23, 2022) ...................................................................5
`
`In re Google LLC,
`No. 2022-0140, Dkt. 2-1 (Fed. Cir. Apr. 4, 2022) .....................................................................5
`
`Landis v. N. Am. Co.,
`299 U.S. 248 (1936) ...................................................................................................................7
`
`In re Ramu Corp.,
`903 F.2d 312 (5th Cir. 1990) .....................................................................................................7
`
`Saxon Innovations, LLC v. Palm, Inc.,
`No. 6:09-CV-272, 2009 WL 3755041 (E.D. Tex. Nov. 4, 2009) ..............................................9
`
`Soverain Software LLC v. Amazon.com, Inc.,
`356 F. Supp. 2d 660 (E.D. Tex. 2005) .......................................................................................7
`
`Texas Instruments, Inc. v. Cypress Semiconductor Corp.,
`90 F.3d 1558 (Fed. Cir. 1996)..................................................................................................10
`
`In re Waze Mobile Ltd.,
`No. 2022-0141, Dkt. 7 (Fed. Cir. May 23, 2022) ......................................................................6
`
`
`
`
`
`ii
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 4 of 13 PageID #: 1210
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`Statutes
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`28 U.S.C. § 1659 ......................................................................................................................7, 8, 9
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`28 U.S.C. § 1659(a) .........................................................................................................................8
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`Tariff Act of 1930 Section 337 ....................................................................................................6, 7
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`
`iii
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 5 of 13 PageID #: 1211
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`Plaintiff AGIS Software Development LLC (“AGIS” or “Plaintiff”), by and through its
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`undersigned counsel, respectfully submits this Response in Opposition to Defendants Samsung
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`Electronics Co., Ltd. and Samsung Electronics America, Inc.’s (collectively, “Defendants” or
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`“Samsung”) Motion to Stay (Dkt. 40, the “Motion”). The Court should deny Samsung’s Motion
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`for the reasons set forth below.
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`I.
`
`INTRODUCTION
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`The Court should deny Samsung’s Motion because the AGIS-Samsung II case involves
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`different issues (including different accused functionalities, different accused products, and
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`additional patents) than the issues presented in the AGIS-Samsung I and AGIS ITC litigations.1 The
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`instant AGIS-Samsung II case involves the Samsung Knox and Tactical applications and software,
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`as well as non-Google situational awareness applications. AGIS-Samsung II does not involve any
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`Google applications or Google software.
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`The AGIS-Samsung I and AGIS ITC litigations involve different issues because, unlike
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`here, they concern Google applications. Samsung admitted so in its repeated attempts to transfer
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`AGIS-Samsung I to NDCA. For example, in its motion to transfer, Samsung represented to this
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`Court that the issues centered around “the Accused Google Applications” which included the
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`Google Maps for Mobile and Google Find My Device applications. See AGIS-Samsung I, Dkt. 46
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`at 2 (E.D. Tex. Mar. 9, 2020). In its petition for a writ of mandamus to direct this Court to stay the
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`AGIS-Samsung I case, Samsung represented to the Federal Circuit that “AGIS’s allegations of
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`infringement against Samsung center around the same Accused Google Applications [Google
`
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`1 Hereinafter, “AGIS-Samsung I” refers to AGIS Software Dev. LLC v. Google LLC, No. 2:19-cv-
`00361-JRG (E.D. Tex.),”AGIS-Samsung II” refers to AGIS Software Dev. LLC v. Samsung Elecs.
`Co., Ltd., No. 2:22-cv-0263-JRG (E.D. Tex.), and “AGIS ITC” refers to In re Certain Location-
`Sharing Systems, Related Software, Components Thereof, and Products Containing Same, No.
`337-TA-1347 (USITC).
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 6 of 13 PageID #: 1212
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`Maps and Find My Device], as well as Samsung’s own Find My Mobile application.” Ex. A, In re
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`Google LLC, No. 2022-0126, Dkt. 2-1 at 14 (Fed. Cir. Feb. 23, 2022). In its successful petition for
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`a writ of mandamus to vacate this Court’s Order denying transfer and to transfer to NDCA,
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`Samsung represented to the Federal Circuit that “the accused products in the Samsung case are,
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`after all, Google products.” Ex. B, In re Google LLC, No. 2022-0140, Dkt. 2-1 at 26 (Fed. Cir.
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`Apr. 4, 2022). The AGIS ITC proceeding accuses the same Google applications.
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`The accused products for the instant AGIS-Samsung II case do not concern the Google
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`applications. Neither the complaint nor the amended complaint refers to any Google applications.
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`In fact, prior to the filing of Samsung’s Motion, AGIS’s discovery requests expressly stated that
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`the accused products do not include the Google applications accused before the NDCA and ITC.
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`Ex. C, AGIS’s First Set of Interrogatories to Defendants at 4 (“For the avoidance of doubt, the
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`term “Accused Products” does not include the Google Find My Device application, the Samsung
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`Find My Mobile application, and the Google Maps Mobile application with Share Location
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`feature.”). Instead, AGIS’s Amended Complaint alleges infringement over Samsung Knox and
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`Tactical applications and software, as well as non-Google situational awareness applications—
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`none of which are developed by Google.
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`Accordingly, Samsung’s Motion should be denied because this case involves different
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`issues than those presented in AGIS-Samsung I and because Samsung’s attempt to draw identity
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`between the litigations is misleading and incorrect, particularly in view of Samsung’s past
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`representations to this Court and the Federal Circuit.
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`II.
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`BACKGROUND
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`AGIS filed suit against Defendants on November 4, 2019, alleging infringement of U.S.
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`Patent Nos. 9,820,123 (the “’123 Patent”) and 9,749,829 (the “’829 Patent”) by certain Samsung
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`Android-based smartphones, tablets, and smart watches. See AGIS Software Dev. LLC v. Samsung
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`2
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 7 of 13 PageID #: 1213
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`Elec. Co., No. 2:19-cv-00362-JRG, Dkt. 1 (E.D. Tex. Nov 4, 2019) (“AGIS I”). Samsung stated
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`that “AGIS’s specific allegations of infringement center around the Location Sharing feature of
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`Google Maps for Mobile (‘GMM’), in conjunction with text messaging functionality found within
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`other applications” and “Find My Device.” AGIS-Samsung I, Dkt. 46 at 2. Samsung also stated
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`that “GMM, Android Messages, Google Plus, Google Handouts, and Find My Device
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`(collectively, the ‘Accused Google Applications’) are all applications designed and developed by
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`Google.” Id. Samsung filed a motion to transfer to the Northern District of California which was
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`subsequently denied by this Court on March 21, 2022. AGIS I, Dkt. 73 (E.D. Tex. Mar. 21, 2022).
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`Samsung submitted a petition for writ of mandamus of the District Court’s denial of Samsung’s
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`motion to transfer. Id., Dkt. 113 (E.D. Tex. Apr. 4, 2022). The Federal Circuit granted Samsung’s
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`mandamus petition on May 23, 2022. See, Ex. D, In re Waze Mobile Ltd., No. 2022-0141, Dkt. 7
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`(Fed. Cir. May 23, 2022).
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`AGIS filed the present action against Samsung on July 14, 2022, alleging infringement of
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`the ’123 and ’829 Patents, in addition to U.S. Patent Nos. 8,213,970 (the “’970 Patent”) and
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`9,467,838 (the “’838 Patent”) (collectively, the “Asserted Patents”). AGIS-Samsung II, Dkt. 1
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`(E.D. Tex. July 14, 2022). The original complaint alleged infringement by Samsung of the
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`“Samsung Tactical, TAK, ATAK, and CivTAK applications, products, and solutions, which also
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`include related servers and services for supporting Samsung Tactical, TAK, ATAK, and CivTAK.”
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`Id., ¶ 16. AGIS amended the complaint on December 5, 2022 to further include the Samsung Knox
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`application, products, and solutions, including related servers and services for Samsung Knox.
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`AGIS-Samsung II, Dkt. 29 (E.D. Tex. Dec. 5, 2022).
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`Pursuant to Section 337 of the Tariff Act of 1930, AGIS requested the U.S. International
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`Trade Commission (“ITC”) commence an investigation. See AGIS ITC, Public Complaint (Nov.
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`3
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 8 of 13 PageID #: 1214
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`16, 2022). The ITC instituted an investigation on December 22, 2022. See id., Notice of Institution
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`of Investigation (Dec. 22, 2022). The complaint alleged infringement of “certain-location sharing,
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`related software, components thereof, and products containing same” that infringe one or more
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`claims of the ’970, ’838, ’829, and ’123 Patents in addition to U.S. Patent No. 9,445,251 (the “’251
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`Patent”). Public Complaint, ¶¶ 1-2.
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`III. LEGAL STANDARD
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`Whether to stay a case falls within the Court’s inherent discretional authority. In re Ramu
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`Corp., 903 F.2d 312, 318 (5th Cir. 1990) (“The stay of a pending matter is ordinarily within the
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`trial court’s wide discretion to control the course of litigation, which includes authority to control
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`the scope and pace of discovery.”); see Clinton v. Jones, 520 U.S. 681, 706 (1997). In determining
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`whether to issue a discretionary stay “calls for the exercise of judgment, which must weigh
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`competing interests and maintain an even balance.” Landis v. N. Am. Co., 299 U.S. 248, 254-55
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`(1936). “In deciding whether to stay litigation pending reexamination, courts typically consider:
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`(1) whether a stay will unduly prejudice or present a clear tactical disadvantage to the nonmoving
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`party, (2) whether a stay will simplify the issues in question and trial of the case, and (3) whether
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`discovery is complete and whether a trial date has been set.” Soverain Software LLC v.
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`Amazon.com, Inc., 356 F. Supp. 2d 660, 662 (E.D. Tex. 2005); see also Datatreasury Corp. v.
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`Wells Fargo & Co., 490 F. Supp. 2d 749, 754 (E.D. Tex. 2006).
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`The movant has the burden to “make out a clear case of hardship or inequity in being
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`required to go forward, if there is even a fair possibility that the stay for which he prays will work
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`damage to someone else.” In re Davis, 730 F.2d 176, 178 (5th Cir. 1984).
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`Pursuant to 28 U.S.C. § 1659:
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`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
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`4
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 9 of 13 PageID #: 1215
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`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—
`
`(1)
`
`(2)
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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).
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`IV. ARGUMENT
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`Samsung argues that the Court must stay the present case pursuant to 28 U.S.C. § 1659 or,
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`alternatively, that the Court should exercise its discretionary power to stay this case. Mot. at 4-9.
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`In arguing for a stay, Samsung has conflated the issues and allegations in each of the separate
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`cases merely because each of the cases involves Samsung devices. Samsung ignores that the
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`applications at dispute in the present action, AGIS I and the AGIS ITC proceeding are not identical
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`and, therefore, the issues are not identical. Moreover, the advanced age of 83 years old of AGIS’s
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`CEO and named inventor on the Asserted Patents, Malcolm K. Beyer, Jr., weighs against a stay.
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`Samsung’s arguments are based on the pendency of another action against Samsung
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`involving additional patents and different technology. Specifically, Samsung admits that the prior
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`litigation against Samsung currently pending in the NDCA alleges infringement of two AGIS
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`patents, and the present suit against Samsung alleges infringement of four patents. Further, the
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`AGIS ITC proceeding involves an additional patent that is neither asserted in the NDCA case or
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`the present action. While Samsung attempts to characterize the allegations of infringement against
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`the “same Galaxy devices,” Samsung ignores that AGIS’s infringement allegations in the present
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`suit involve different applications and technology.
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`5
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 10 of 13 PageID #: 1216
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`Accordingly, a stay is not warranted and Samsung’s Motion should be denied.
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`A.
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`A Stay Pursuant to 28 U.S.C. § 1659 is Not Warranted
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`A stay pursuant to 28 U.S.C. § 1659 is not warranted where the ITC Investigation does not
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`involve the same applications as the present action.
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`AGIS does not dispute that Samsung is a respondent in the ITC Proceeding or that Samsung
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`has filed its request for a stay within thirty (30) days of the filing of this action. However, “the
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`present infringement claim does not involve the same issues as the proceeding before the ITC.”
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`Saxon Innovations, LLC v. Palm, Inc., No. 6:09-CV-272, 2009 WL 3755041, at *2 (E.D. Tex.
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`Nov. 4, 2009). Under 28 U.S.C. § 1659, a stay is mandatory where “proceedings in the civil action
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`with respect to any claim that involves the same issues involved in the proceeding before the
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`Commission.” (emphasis added). Here, the issues are not the same where the accused applications
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`differ.
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`By Samsung’s own admission, the ITC Proceeding alleges infringement of “certain Google
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`apps and/or services.” Mot. at 3. Samsung also admits that the present action includes infringement
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`allegations for “applications, products and solutions, including a U.S. Government-developed and
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`owned suite of apps, known as TAK, and a Samsung Knox feature.” Id. at 2. Acknowledging the
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`differences, Samsung argues that “AGIS has directed its infringement allegations toward different
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`features of the same products.” Id. at 5. Accordingly, Samsung admits that the accused applications
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`are not the same. Rather, Samsung appears to rely on the argument that the ITC Proceeding
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`involves “all 264 products alleged to infringe in the district court.” Id. Nonetheless, the accused
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`applications are not merely “different features of the same products.” Id. Rather, as shown in
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`AGIS’s complaint and its infringement contentions, the specific infringement allegations are
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`against the Samsung Knox application and third-party applications like TAK, which are enabled
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`6
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 11 of 13 PageID #: 1217
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`on Samsung devices. Because the issues are not the same, determinations of the ITC Proceeding
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`would not be dispositive of the issues in the present action and, accordingly, a stay is not warranted.
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`B.
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`The Court Should Decline to Stay the Case Pursuant to its Inherent Power
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`The Court should decline to institute a discretionary stay.
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`First, a stay will unduly prejudice or present a clear tactical disadvantage to AGIS, delaying
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`AGIS’s claim of infringement in the present action by at least 19 months. Samsung’s complaints
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`that AGIS “should have included all of its infringement allegations against Samsung’s Galaxy
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`products in that case” are undermined by Samsung’s own failure to identify those Accused
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`Products in AGIS I. Further, such arguments are weakened by Samsung’s own reliance on the
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`Google applications and services at issue in AGIS I and the ITC Proceeding in support of its motion
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`to transfer. See, AGIS-Samsung I, Dkt. 46 at 7. (“The NDCA is clearly a more convenient venue
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`because it is the home of important third-party witnesses—including Google employees who work
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`on the Accused Google Applications and prior art inventors. Moreover, Google has filed a motion
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`to dismiss or transfer for improper venue. Should Google’s motion be granted, judicial economy
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`supports transfer of all three co-pending AGIS cases to the NDCA.”).
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`Second, a stay will not simplify the issues in question and trial of the case. As shown above,
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`the applications and/or services asserted in the present action are not the same as those in the AGIS
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`ITC proceeding. Accordingly, the ITC will not consider any arguments regarding the accused
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`applications and services in the present action at the ITC. As such, a stay would not simplify the
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`issues in this case. Moreover, any determinations by the ITC are not binding on this Court. See
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`Texas Instruments, Inc. v. Cypress Semiconductor Corp., 90 F.3d 1558, 1569 (Fed. Cir. 1996).
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`Third, while this case is in its early stages, a trial date has been set. See Dkt. 28 at 1 (setting
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`trial for March 4, 2024).
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`7
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 12 of 13 PageID #: 1218
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`Accordingly, the Court should decline to exercise its discretion and deny Samsung’s
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`Motion.
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`V.
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`CONCLUSION
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`For all the foregoing reasons, AGIS respectfully requests that the Court deny Samsung’s
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`Motion in its entirety.
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`Dated: January 10, 2023
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`Respectfully submitted,
`
`
`
`
`
`/s/ Alfred R. Fabricant
`Alfred R. Fabricant
`NY Bar No. 2219392
`Email: afabricant@fabricantllp.com
`Peter Lambrianakos
`NY Bar No. 2894392
`Email: plambrianakos@fabricantllp.com
`Vincent J. Rubino, III
`NY Bar No. 4557435
`Email: vrubino@fabricantllp.com
`Enrique W. Iturralde
`NY Bar No. 5526280
`Email: eiturralde@fabricantllp.com
`FABRICANT LLP
`411 Theodore Fremd Avenue,
`Suite 206 South
`Rye, New York 10580
`Telephone: (212) 257-5797
`Facsimile: (212) 257-5796
`
`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 E. Houston Street, Suite 300
`Marshall, Texas 75670
`Telephone: (903) 923-9000
`Facsimile: (903) 923-9099
`
`ATTORNEYS FOR PLAINTIFF, AGIS
`SOFTWARE DEVELOPMENT LLC
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`8
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`Case 2:22-cv-00263-JRG-RSP Document 41 Filed 01/10/23 Page 13 of 13 PageID #: 1219
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`CERTIFICATE OF SERVICE
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`The undersigned hereby certifies that on January 10, 2023, all counsel of record who are
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`deemed to have consented to electronic service are being served with a copy of this document via
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`the Court’s CM/ECF system per Local Rule CV-5(a)(3).
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`/s/ Alfred R. Fabricant
` Alfred R. Fabricant
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