Case 2:23-cv-00454-JRG-RSP Document 80 Filed 12/09/24 Page 1 of 5 PageID #:
`714
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
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`COBBLESTONE WIRELESS, LLC,
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` Plaintiff,
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`v.
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`CISCO SYSTEMS, INC.,
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` Defendants.
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`§
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`§
`§
` MEMORANDUM ORDER
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`CIVIL ACTION NO. 2:23-cv-00454-JRG-RSP
`(LEAD CASE)
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`Before the Court is the Motion to Stay Pending Inter Partes Review and Ex Parte Review,
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`filed by Cisco Systems, Inc., Hewlett Packard Enterprise Company, and Aruba Networks, LLC..
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`Dkt. No. 52. After consideration, the Court GRANTS the Motion to Stay.
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`I.
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`BACKGROUND
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`Plaintiff Cobblestone Wireless, LLC filed complaints against Defendants Cisco Systems,
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`Inc., Hewlett Packard Enterprise Company, and Aruba Networks, LLC on September 29, 2023,
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`asserting infringement of U.S. Patent No. 7,924,802. On November 2, 2023, the Court consolidated
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`these cases for all pretrial proceedings. Dkt. No. 15. On August 13, 2024 the Court issued an
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`Amended Docket Control Order. Dkt. No. 60. Pursuant to that Order, the Claim Construction
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`hearing was set for November 26, 2024, fact discovery closes on January 15, 2025, expert
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`discovery ends on March 10, 2025, and trial is set to begin on June 23, 2025, among other
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`deadlines. Id.
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`On March 19, 2024 Cobblestone Wireless, LLC and Hewlett Packard Enterprise Company
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`filed a petition for inter partes review on all asserted claims of the ’802 Patent. IPR2024-00707,
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`Doc. 40. The Board instituted a trial for the ’802 Patent on September 24, 2024. Id., Doc. 26. A
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`final written decision for the IPR is expected by September 24, 2025.
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`1
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`

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`Case 2:23-cv-00454-JRG-RSP Document 80 Filed 12/09/24 Page 2 of 5 PageID #:
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`On June 25, 2024, all Defendants filed the current Motion to Stay, requesting that the Court
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`stay this case until the Board has concluded IPR of the Asserted Patents. Dkt. No. 52. The matter is
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`now fully briefed.1
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`II.
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`LEGAL STANDARD
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`“The party seeking a stay bears the burden of showing that such a course is appropriate.”
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`Peloton Interactive, Inc. v. Flywheel Sports, Inc., No. 218-cv-390-RWS-RSP, 2019 WL 3826051,
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`at *1 (E.D. Tex. Aug. 14, 2019) (quoting Realtime Data, LLC v. Hewlett Packard Enter. Co., No.
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`6:16-cv-86-RWS-JDL, 2017 WL 3712916, at *3 (E.D. Tex. Feb. 3, 2017)); accord Landis v. N.
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`Am. Co., 299 U.S. 248, 255 (1936). “The decision of whether to extend a stay falls solely within
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`the court’s inherent power to control its docket.” Pers. Audio LLC v. Google, Inc., 230 F. Supp. 3d
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`623, 626 (E.D. Tex. 2017) (citing ThinkOptics, Inc. v. Nintendo, No. 6:11-cv-455-LED, 2014 WL
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`4477400, at *1 (E.D. Tex. Feb. 27, 2014)); accord Clinton v. Jones, 520 U.S. 681, 706 (“The
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`District Court has broad discretion to stay proceedings as an incident to its power to control its own
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`docket.”) (citing Landis, 299 U.S. at 254).
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`District courts typically consider three factors when deciding whether to stay litigation
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`pending IPR of the asserted patent(s): “(1) whether the stay will unduly prejudice the nonmoving
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`party, (2) whether the proceedings before the court have reached an advanced stage, including
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`whether discovery is complete and a trial date has been set, and (3) whether the stay will simplify
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`issues in question in the litigation.” Trover Grp., Inc. v. Dedicated Micros USA, No. 2:13-CV-
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`1047-WCB, 2015 WL 1069179, at *2 (E.D. Tex. Mar. 11, 2015) (collecting cases).
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`1 After Defendants filed the Motion on June 25, 2024, Cobblestone responded on July 9, 2024. Dkt. No. 52; Dkt. No.
`56. Defendants then replied on July 17, 2024, with Cobblestone filing their Sur-Reply on July 24, 2024. Dkt. No. 57;
`Dkt. No. 58.
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`
`2
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`

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`Case 2:23-cv-00454-JRG-RSP Document 80 Filed 12/09/24 Page 3 of 5 PageID #:
`716
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`III. ANALYSIS
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`a. Inter Partes Review
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`i. Undue Prejudice
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`Defendants argue that Cobblestone will not suffer any undue prejudice if the Court grants a
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`stay because Cobblestone does not make any products or compete with Defendants and, therefore,
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`Cobblestone can be sufficiently compensated through monetary relief for any purported damages.
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`Dkt. No. 52 at 1, 6. Cobblestone counters by arguing that a stay would delay its interest in the
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`timely enforcement of its patent rights. Dkt. No. 56 at 9-10.
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`Cobblestone’s concern is entitled to some weight. Uniloc USA, Inc. v. Acronis, Inc., No.
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`615-cv-1001-RWS-KNM, 2017 WL 2899690, at *2 (E.D. Tex. Feb. 9, 2017) (citing NFC Tech.
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`LLC v. HTC Am., Inc., No. 2:13-CV-1058-WCB, 2015 WL 1069111, at *2 (E.D. Tex. Mar. 11,
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`2015)). However, this factor is present in every case in which a patentee resists a stay, and is
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`therefore not sufficient, standing alone, to defeat a motion to stay. Id. (citing NFC Tech., 2015 WL
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`1069111, at *2); see also Trover, 2015 WL 1069179, at *2 (collecting cases). Where, as here, a
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`patentee seeks exclusively monetary damages, as opposed to a preliminary injunction or other
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`relief, “mere delay in collecting those damages does not constitute undue prejudice.” Id. (quoting
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`SSL Servs., LLC v. Cisco Sys., Inc., No. 2:15-cv-433-JRG-RSP, 2016 WL 3523871, at *2 (E.D.
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`Tex. June 28, 2016)) (citing VirtualAgility Inc. v. Salesforce.com, 759 F.3d 1307, 1318 (Fed. Cir.
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`2014)). Nevertheless, since the final written decision for the IPR could issue after the scheduled
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`trial, this factor weighs against a stay.
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`ii. Stage of the Case Proceedings
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`Defendants argue a stay is warranted because this case is still in its early stages, with
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`significant pre-trial events yet to occur. Dkt. No. 52 at 6-7. Cobblestone counters that this case has
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`3
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`

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`Case 2:23-cv-00454-JRG-RSP Document 80 Filed 12/09/24 Page 4 of 5 PageID #:
`717
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`been pending for nearly 10 months, with many documents produced and interrogatories answered.
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`Dkt. No. 56 at 11.
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`“Usually, the Court evaluates the stage of the case as of the time the motion was filed.”
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`Peloton Interactive, 2019 WL 3826051, at *5 (quoting Papst Licensing GMBH & Co., KG v.
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`Apple, Inc., 6:15-cv-1095-RWS, slip op. at 7 (E.D. Tex. June 16, 2017)) (citing VirtualAgility, 759
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`F.3d at 1317). The instant Motion was filed on June 25, 2024. Dkt. No. 52 at 10. At that point, a
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`trial date had been set, Dkt. No. 37, and a Discovery Order had been entered, Dkt. No. 45.
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`However, Defendants are correct in asserting that large parts of discovery and many other
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`important deadlines were still left at that point. Accordingly, this factor weighs in favor of a stay.
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`iii. Issue Simplification
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`Whether a stay “will result in simplification of the issues before a court is viewed as the
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`most important factor when evaluating a motion to stay.” Uniloc USA, 2017 WL 2899690, at *3
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`(citing Intellectual Ventures II LLC v. Kemper Corp., No. 6:16-cv-81-JRG, 2016 WL 7634422, at
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`*2 (E.D. Tex. Nov. 7, 2016); NFC Tech., 2015 WL 1069111, at *4). “Simplification of the issues
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`depends on whether the PTAB decides to grant the petition.” Id. (citing Trover, 2015 WL 1069179,
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`at *4; Loyalty Conversion Sys. Corp. v. Am. Airlines, Inc., No. 2:13-cv-655-WCB, 2014 WL
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`3736514, at *2 (E.D. Tex. July 29, 2014)).
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`Defendants contend that the IPR proceedings currently pending against Cobblestone’s
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`asserted patents will greatly simplify the issues for this Court. Dkt. No. 56 at 2. To demonstrate
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`this, Defendants need to show that every asserted claim has a reasonable likelihood of being
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`invalidated by the Board for the Court to grant the Motion. Here, the Board has instituted a trial
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`covering all asserted claims. IPR2024-00707 at 51. Accordingly, the simplification factor weighs in
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`favor of a stay.
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`4
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`

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`Case 2:23-cv-00454-JRG-RSP Document 80 Filed 12/09/24 Page 5 of 5 PageID #:
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`IV. CONCLUSION
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`The Court finds that, overall, the situation here merits a stay: the first factor for the IPR
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`analysis weighs slightly against a stay, but the second and third factors—the third being the most
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`important—weigh in favor. Accordingly, this case is STAYED pending further order. Counsel are
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`directed to advise the Court by Notice within 14 days of any decision by the PTAB.
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`
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`5
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`____________________________________
`ROY S. PAYNE
`UNITED STATES MAGISTRATE JUDGE
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`SIGNED this 3rd day of January, 2012.
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`SIGNED this 9th day of December, 2024.
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