`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`TEXARKANA DIVISION
`
`MAXELL, LTD.,
`
`
`
`Plaintiff
`
`Civil Action NO. 5:19-cv-00036-RWS
`
`v.
`
`APPLE INC.,
`
`
`
`
`
`JURY TRIAL DEMANDED
`
`
`
`
`Defendant.
`
`
`
`
`
`APPLE INC.’S SUR-REPLY TO
`MAXELL, LTD.’S MOTION FOR SANCTIONS
`
`
`
`
`
`Case 5:19-cv-00036-RWS Document 262 Filed 04/02/20 Page 2 of 8 PageID #: 9779
`
`
`Despite suing on ten software patents, identifying every single claim as having Patent
`
`Rule 3-1(g) software limitations, and demanding every bit of source code that has even the most
`
`remote connection to the accused features, Maxell now complains that does not want to use that
`
`code to prove its case. But ultimately the source code is what matters.
`
`
`
`
`
`
`
`
`
`
`
` While Apple has made an extraordinarily voluminous
`
`document production, it has not found documents describing each of the accused functionalities
`
`in the jury-friendly manner Maxell apparently desires. And Maxell cites no evidence to support
`
`its inflammatory charge that Apple has “withheld” technical documents or source code. Tacitly
`
`conceding this point, Maxell’s reply now suggests that Apple has produced so many documents
`
`as to “bur[y] [Maxell] in volumes of irrelevant documents.” D.I. 241 at 1. Maxell should not be
`
`rewarded for its overbroad demands for irrelevant documents and then cherry-picking a few
`
`allegedly missing documents to demand sanctions.
`
`I.
`
`Apple Complied With Patent Rule 3-4 And The Substantial Completion Date
`Despite Maxell’s Continued Failure to Comply With The Patent Rules
`
`Apple faithfully and timely complied with P.R. 3-4 by interviewing employees and
`
`producing documents and source code from custodial and non-custodial sources more than
`
`sufficient to show the operation of the accused functionalities, based on Apple’s best
`
`understanding of Maxell’s deficient infringement contentions. D.I. 237 at 3. Maxell does not
`
`dispute the diverse and substantive nature of Apple’s P.R. 3-4 production. D.I. 241 at 2. Nor
`
`does Maxell dispute that Apple’s voluminous production of such substantive documents and
`
`
`
`1
`
`
`
`Case 5:19-cv-00036-RWS Document 262 Filed 04/02/20 Page 3 of 8 PageID #: 9780
`Case 5:19-cv-00036-RWS Document 262 Filed 04/02/20 Page 3 of 8 PageID #: 9780
`
`source code readily distinguishes this case from those cited in Maxell‘s motion. UL 237 at 8.1
`
`Most importantly, Maxell did not in October 2019 and does not today, identify any material
`
`inability to sufficiently understand the accused functionalities based on Apple’s P.R. 3-4
`
`production—the governing standard for that rule. D.I. 237 at 2.
`
`There is similarly no serious question that Apple more than substantially completed its
`
`
`N|
`
`
`
`Case 5:19-cv-00036-RWS Document 262 Filed 04/02/20 Page 4 of 8 PageID #: 9781
`Case 5:19-cv-00036-RWS Document 262 Filed 04/02/20 Page 4 of 8 PageID #: 9781
`
`docmnent production by November 27, and the vollune of its productions after that date does not
`
`contradict that fact. DJ. 24] at 2. Rather, it proves Apple’s good faith willingness to produce
`
`information in responses to Maxell’s scorched-earth, ceaseless demands for irrelevant documents
`
`and
`
`code.—
`
`— Indeed, it is
`
`particularly ironic that Maxell asks the C01111 to completely disregard the vollune of documents
`
`and code Apple produced by the RR. 3-4 and substantial completion deadlines, arguing volume
`
`is no indicator of compliance, D1. 241 at 2, when at the same time it argues the vollune of
`
`documents and source code produced by Apple in response to Maxell’s specious demands
`
`somehow demonstrate a lack of compliance, id. at 1.—
`
`Maxell does not try to refilte the absence of any basis for demanding that Apple totally
`
`complete its document production two months before the end of fact discovery (i. e., by January
`
`31), let alone four months before the end of discovery (i.e., on November 27). BI. 237 at 8-9.
`
`Maxell’s claim, that documents were produced during the course of depositions, does not justify
`
`sanctions, especially where Maxell itself produced relevant doc1unents only after depositions of
`
`its witnesses, and continues in its refusal to produce responsive (though presumably lmfavorable
`
`to Maxell) documents. D.I. 237 at 9.
`
`
`
`
`
`Case 5:19-cv-00036-RWS Document 262 Filed 04/02/20 Page 5 of 8 PageID #: 9782
`Case 5:19-cv-00036-RWS Document 262 Filed 04/02/20 Page 5 of 8 PageID #: 9782
`
`Maxell’s manufactured complaints regarding Apple’s compliance with the Patent Rules
`
`and its attempts to blame Apple for its own lack of diligence in reviewing the discovery it
`
`demanded are particularly egregious given its own refusal to, even now, on the last day of
`
`discovery, comply with those same Patent Rules.—
`
`Granting sanctions would perversely reward Maxell for (1) burying Apple in demands for
`
`documents and source code that far exceed any reasonable scope of discovery, (2) avoiding good
`
`faith discovery discussions, (3) sandbagging Apple by refusing to specifically identify discovery
`
`issues in letters but then doing so in motion practice, and (4) doing all of the above to avoid its
`
`own obligations to provide compliant infringement contentions under the local Patent Rules.
`
`II.
`
`Maxell Has Suffered No Prejudice and Its Effort to
`Declare Products to be “Representative” Is Without Merit
`
`Maxell’s alleged prejudice—insufficient time to prepare for fact depositions, expert
`
`reports, or election of asserted claims—is provably false, even absent the recent extension. In
`
`the meet and confer for this motion and before the extension due to COVID—l9, Maxell
`
`
`
`
`
`Case 5:19-cv-00036-RWS Document 262 Filed 04/02/20 Page 6 of 8 PageID #: 9783
`
`
`affirmatively declared that it was not interested in Apple’s actual production of the discovery it
`
`now claims was so critical. Ex. 18, 3/3/20 Tr. at 8:13-9:6. Likewise, Maxell did not even think
`
`to request an extension for its expert reports, final election of claims, or depositions pending
`
`production of any alleged missing documents. The fact that such extensions were plainly
`
`available, as confirmed by recent events, belies any claim that Maxell’s asserted “prejudice” was
`
`unavoidably “locked-in.” D.I. 241 at 4.
`
`Maxell’s alleged prejudice relating to other documents is even more frivolous.
`
`
`
`
`
`
`
`
`
`
`
` The same applies to other documents and witnesses.
`
`
`
`
`
`
`
`
`
`
`
`In short, it is clear that Maxell has suffered no prejudice other than what it has itself
`
`manufactured through its apparent inability to participate in discovery in good faith.
`
`
`
`5
`
`
`
`Case 5:19-cv-00036-RWS Document 262 Filed 04/02/20 Page 7 of 8 PageID #: 9784
`
`
`March 31, 2020
`
`
`
`
`
`
`/s/ Luann L. Simmons
`
`
`
`Luann L. Simmons (Pro Hac Vice)
`lsimmons@omm.com
`O’MELVENY & MYERS LLP
`Two Embarcadero Center
`28th Floor
`San Francisco, CA 94111
`Telephone: 415-984-8700
`Facsimile: 415-984-8701
`
`Xin-Yi Zhou (Pro Hac Vice)
`vzhou@omm.com
`O’MELVENY & MYERS LLP
`400 S. Hope Street
`Los Angeles, CA 90071
`Telephone: 213-430-6000
`Facsimile: 213-430-6407
`
`Laura Bayne Gore (Pro Hac Vice)
`lbayne@omm.com
`O’MELVENY & MYERS LLP
`Times Square Tower, 7 Times Square
`New York, NY 10036
`Telephone: 212-326-2000
`Facsimile: 212-326-2061
`
`Melissa R. Smith (TX #24001351)
`melissa@gilliamsmithlaw.com
`GILLIAM & SMITH, LLP
`303 South Washington Avenue
`Marshall, Texas 75670
`Telephone: (903) 934-8450
`Facsimile: (903) 934-9257
`
`Attorneys for Defendant Apple Inc.
`
`
`
`
`
`Case 5:19-cv-00036-RWS Document 262 Filed 04/02/20 Page 8 of 8 PageID #: 9785
`Case 5:19-cv-00036-RWS Document 262 Filed 04/02/20 Page 8 of 8 PageID #: 9785
`
`CERTIFICATE OF SERVICE
`
`The undersigned hereby certifies that all counsel of record who are deemed to have
`
`consented to electronic service are being served with a copy of this docmnent via the Coufl's
`
`CM/ECF system per Local Rule CV—5(a)(3) on March 31, 2020.
`
`/s/ Melissa R. Smith
`
`Melissa R. Smith
`
`