throbber
Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 1 of 14 PageID #: 25535
`
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`TEXARKANA DIVISION
`
`
`
`MAXELL, LTD.,
`
`v.
`
`APPLE INC.,
`
`Plaintiff,
`
`Defendants.
`
`Civil Action No. 5:19-cv-00036
`
`JURY TRIAL DEMANDED
`
`
`
`
`
`
`MAXELL, LTD.’S REPLY IN SUPPORT OF ITS MOTION FOR PARTIAL SUMMARY
`JUDGMENT OF NO INVALIDITY OF U.S. PATENT NOS. 6,748,317, 6,580,999, AND
`6,430,498 IN VIEW OF THE ABOWD AND CYBERGUIDE ALLEGED PRIOR ART
`
`
`
`
`
`
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 2 of 14 PageID #: 25536
`
`
`
`TABLE OF CONTENTS
`
`
`
`I.
`
`This Court Should Give No Weight to Inadmissible Evidence ......................................... 1
`
`II.
`
`Apple Cannot Show That Abowd or Cyberguide Qualify As Prior Art ............................ 2
`
`A. Abowd’s Public Accessibility ...................................................................................... 2
`
`B. Cyberguide’s Public Use .............................................................................................. 4
`
`
`
`
`
`i
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 3 of 14 PageID #: 25537
`
`
`
`TABLE OF AUTHORITIES
`
`
`
`Page(s)
`
`Cases
`
`Acceleration Bay, LLC v. Activision Blizzard Inc.,
`908 F.3d 765 (Fed. Cir. 2018)....................................................................................................3
`
`Advanceme, Inc. v. Rapidpay,
`No. 6:05-CV-424, 2007 U.S. Dist. LEXIS 117675 (E.D. Tex. July 9, 2007) .......................1, 2
`
`Blue Calypso, LLC v. Groupon, Inc.,
`815 F.3d 1331 (Fed. Cir. 2016)..................................................................................................2
`
`Brandon v. Sage Corp.,
`808 F.3d 266 (5th Cir. 2015) .....................................................................................................1
`
`Candela Corp. v. Palomar Med. Techs., Inc.,
`No. 9:06-CV-277, 2008 WL 11441909 (E.D. Tex. Sept. 24, 2008) ..........................................4
`
`Clock Spring, L.P. v. Wrapmaster, Inc.,
`560 F.3d 1317 (Fed. Cir. 2009)..................................................................................................5
`
`Colucci v. Callaway Golf Co.,
`750 F. Supp. 2d 767 (E.D. Tex. 2010) .......................................................................................5
`
`Cummins-Allison Corp. v. Glory Ltd.,
`2006 U.S. Dist. LEXIS 105083 (E.D. Tex. Jan. 23, 2006) ........................................................2
`
`Dey, L.P. v. Sunovion Pharm., Inc.,
`715 F.3d 1351 (Fed. Cir. 2013)..................................................................................................5
`
`Galindo v. Precision American Corp.,
`754 F. 2d 1212 (5th Cir. 1985) ..................................................................................................3
`
`Intergraph Corp. v. Intel Corp.,
`No. 2:01-cv-160, 2002 U.S. Dist. LEXIS 29660 (E.D. Tex. June 18, 2002) ............................2
`
`Invitrogen Corp. v. Biocrest Mfg., L.P.,
`424 F.3d 1374 (Fed. Cir. 2005)..................................................................................................4
`
`Juicy Whip, Inc. v. Orange Bang, Inc.,
`292 F.3d 728 (Fed. Cir. 2002)....................................................................................................5
`
`Krim v. BancTexas Grp., Inc.,
`989 F.2d 1435 (5th Cir. 1993) ...............................................................................................1, 3
`
`
`
`ii
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 4 of 14 PageID #: 25538
`
`
`
`Oram v. Linderman,
`No. CV-12-02450-PHX-FJM (BSB), 2014 U.S. Dist. LEXIS 78138 (D. Ariz.
`June 9, 2014) ..............................................................................................................................2
`
`Stamps.com Inc. v. Endicia, Inc.,
`437 F. App’x 897 (Fed. Cir. 2011) ............................................................................................4
`
`Other Authorities
`
`Fed. R. Civ. P. 56(c)(2) ....................................................................................................................2
`
`
`
`iii
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 5 of 14 PageID #: 25539
`
`
`
`TABLE OF EXHIBITS
`
`(Including Exhibits From Maxell’s Motion, Dkt. 382)
`
`Exhibit No. Description
`
`1
`
`2
`
`3
`
`4
`
`5
`
`Excerpts from the Opening Expert Report of Dr. Joseph A.
`Paradiso Regarding Invalidity of U.S. Patent Nos. 6,748,317,
`6,580,999, and 6,430,498 (May 7, 2020)
`
`Expert Report of Robert L. Stoll (June 4, 2020)
`
`Expert Report of Jacob Robert Munford Concerning
`Publication and Public Accessibility and exhibits (May 7, 2020)
`
`Deposition Transcript of Jacob R. Munford (June 19, 2020)
`
`Document entitled “Cyberguide: A Mobile Context-Aware
`Tour Guide” (“Abowd”)
`
`
`
`
`
`
`
`iv
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 6 of 14 PageID #: 25540
`
`
`
`TABLE OF ABBREVIATIONS
`
`Term
`
`Meaning
`
`Maxell’s Motion or
`Mot.
`
`Maxell’s Motion for Partial Summary Judgment of No
`Invalidity of U.S. Patent Nos. 6,748,317, 6,580,999,
`and 6,430,498 in View of the Abowd and Cyberguide
`Alleged Prior Art (Dkt. 382)
`
`Opp.
`
`Apple’s Response in Opposition to Maxell’s
`Motion for Partial Summary Judgment of No Invalidity
`of U.S. Patent Nos. 6,748,317, 6,580,999, and
`6,430,498 in View of the Abowd and Cyberguide
`Alleged Prior Art (Dkt. 429)
`
`
`
`
`
`
`
`
`
`v
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 7 of 14 PageID #: 25541
`
`
`
`Apple’s response confirms that the evidence on record does not meet the bar to establish
`
`by clear and convincing evidence that the “Abowd” publication and “Cyberguide” prototypes
`
`were publicly available prior to the critical date. Apple acknowledges that there are “a series of
`
`doubts about Apple’s evidence.” Opp. at 1. These doubts do not create factual disputes. Instead,
`
`they resolve the legal question of whether Apple’s evidence shows that the Abowd publication
`
`was accessible to the public over twenty years ago, and that a Cyberguide prototype was in
`
`public use over twenty years ago.
`
`Realizing its failure, Apple introduces six new evidentiary exhibits in its Response never
`
`produced before in this case. Opp. Exs 3, 4, 12-14. No expert has opined on this evidence. Apple
`
`cannot supplement discovery in an effort to create a factual dispute retroactively. Advanceme,
`
`Inc. v. Rapidpay, No. 6:05-CV-424, 2007 U.S. Dist. LEXIS 117675, at *12-13 (E.D. Tex. July 9,
`
`2007). Further, the evidence presented does not create any genuine issue of material fact.
`
`Brandon v. Sage Corp., 808 F.3d 266, 270 (5th Cir. 2015). Apple provides nothing more than
`
`unsupported attorney arguments that are unavailing to the question of public accessibility or
`
`public use. Krim v. BancTexas Grp., Inc., 989 F.2d 1435, 1449 (5th Cir. 1993) (“[s]ummary
`
`judgment [] may be appropriate . . . if the nonmoving party rests merely upon conclusory
`
`allegations, improbable inferences, and unsupported speculation.”). Even in the light most
`
`favorable to Apple, the totality of evidence does not provide a legally sufficient basis to show
`
`that Abowd was publically accessible, or that Cyberguide was in public use. In fact, it
`
`demonstrates that Apple is scrambling at the last minute to meet its burden. These failings are
`
`fatal to Apple’s invalidity analysis, and this Court should therefore grant Maxell’s Motion.
`
`I.
`
`This Court Should Give No Weight to Inadmissible Evidence
`
`In an attempt to create a factual dispute, Apple is using its response to submit new
`
`evidence after discovery has closed and both sides experts have submitted expert reports and
`
`
`
`
`1
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 8 of 14 PageID #: 25542
`
`
`
`been deposed. See Opp. Exs. 3-4, 12-14 (containing alleged screenshots taken on July, 2020);
`
`Dkt. 429, Liang Decl. Apple has offered no basis for failing to produce this evidence earlier. This
`
`Court recognizes such tactics, and precludes supplementing the record with evidence introduced
`
`after the close of discovery. Advanceme, Inc. v. Rapidpay, No. 6:05-CV-424, 2007 U.S. Dist.
`
`LEXIS 117675, at *12-13 (E.D. Tex. July 9, 2007) (citing cases); Cummins-Allison Corp. v.
`
`Glory Ltd., 2006 U.S. Dist. LEXIS 105083, at *5 (E.D. Tex. Jan. 23, 2006) (“[d]iscovery
`
`misconduct may suggest that a party is not comfortable with its position on the merits.”)
`
`The time for introducing new evidence of Abowd’s public accessibility has passed, and
`
`Apple’s new evidence is inadmissible at trial and should be given no weight. Advanceme, Inc.,
`
`2007 U.S. Dist. LEXIS 117675, at *12-13 (“this district does not favor the introduction of
`
`evidence obtained after the completion of discovery”); see also Intergraph Corp. v. Intel Corp.,
`
`No. 2:01-cv-160, 2002 U.S. Dist. LEXIS 29660, at *2 (E.D. Tex. June 18, 2002) (“[t]he rules
`
`have teeth [and] they put structure to litigation that otherwise would be unmanageable.”).
`
`Inadmissible evidence has no place in a summary judgment motion. Fed. R. Civ. P. 56(c)(2);
`
`Oram v. Linderman, No. CV-12-02450-PHX-FJM (BSB), 2014 U.S. Dist. LEXIS 78138, at *12
`
`(D. Ariz. June 9, 2014) (“[w]ithout admissible evidence, Plaintiff fails to create a genuine issue
`
`of disputed fact.”). Apple’s new evidence—Exhibits 3, 4, 12-14—should be given no weight.
`
`II.
`
`Apple Cannot Show That Abowd or Cyberguide Qualify As Prior Art
`
`A. Abowd’s Public Accessibility—Apple has not shown that Abowd was publicly
`
`accessible by an interested artesian exercising reasonable diligence to locate it at the time. Blue
`
`Calypso, LLC v. Groupon, Inc., 815 F.3d 1331, 1348 (Fed. Cir. 2016). Apple’s arguments are
`
`premised on two assumptions: 1) because a prior version of the Wireless Networks journal was
`
`catalogued by the Pittsburgh library in 1995, the library must have also have catalogued a future
`
`version of the journal containing Abowd “as it was released”; and 2) the library must have had
`
`
`
`2
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 9 of 14 PageID #: 25543
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`
`
`the journal in its possession before it sent it to binding in 1998. But even in the light most
`
`favorable to Apple, this is mere speculation.
`
`First, Apple’s argument that the MARC record of the 1995 version of the Wireless
`
`Networks journal shows when Abowd was catalogued at the Pittsburgh library is flawed. Apple
`
`makes an unsupported attorney argument that the MARC record shows the library began
`
`cataloguing issues of the journal in April 3, 1995. Opp. at 8. But Apple notes Abowd was written
`
`on September 23, 1996. Opp. at 5. Thus, without more, the MARC record of the first volume has
`
`no bearing on when future volumes of the journal—such as the volume containing Abowd—
`
`were catalogued. Apple’s conclusion that this must “mean that after that date, the library would
`
`have acquired each issue of the journal as it was released” is wishful speculation. Id.
`
`Second, Apple argues that “the library must have had [Abowd] in its possession by
`
`[1998] before sending it to be bound.” Opp. at 8. This is yet another unfounded conclusion. It’s
`
`impossible to know when the journal containing Abowd arrived at the library because there is no
`
`evidence or testimony about it. But even if true that the library had the journal in its possession
`
`before it was bound in 1998, this has no bearing on the public accessibility of Abowd.
`
`
`
`Apple’s unsupported assumptions about the MARC record and the journal binding is no
`
`reason to deny Maxell’s motion. See Krim v. BancTexas Grp., Inc., 989 F.2d 1435, 1449 (5th
`
`Cir. 1993) (“Summary judgment, to be sure, may be appropriate ... if the nonmoving party rests
`
`merely upon conclusory allegations, improbable inferences, and unsupported speculation.”);
`
`Galindo v. Precision American Corp., 754 F. 2d 1212, 1216 (5th Cir. 1985).
`
`
`
`Even if this Court accepts Apple’s arguments as true, the test for public accessibility is
`
`not library possession or when catalogued. Acceleration Bay, LLC v. Activision Blizzard Inc.,
`
`908 F.3d 765, 772 (Fed. Cir. 2018). Apple’s own authority explains this, finding that an article
`
`was publicly accessible not just because it was catalogued at Carnegie Mellon, but because it was
`
`
`
`3
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 10 of 14 PageID #: 25544
`
`
`
`“listed as available on its indexed website . . . a public forum where leaders in the field . . . would
`
`have had access to.” Stamps.com Inc. v. Endicia, Inc., 437 F. App'x 897, 903 (Fed. Cir. 2011).
`
`Here, Apple agrees that there is no question of website indexing because Apple is relying only
`
`on “public availability of the hard copy” accompanied by attorney speculation. Opp. at 10.
`
`Apple’s remarks towards former USPTO Commissioner Mr. Stoll do not generate a
`
`dispute of material fact. Maxell’s Motion does not depend on Mr. Stoll’s opinions but rests on
`
`the premise that even when all of the facts presented by Apple are taken in totality, Apple has
`
`failed to show how MARC records that pre-date the date listed on the article, a journal that has
`
`“DO NOT CIRCULATE” stamped on it, and sending a journal for bindery establish by clear and
`
`convincing evidence that Abowd was publicly available two decades ago. Apple simply failed to
`
`meet its burden.1 Unlike the differing technical opinions between experts in Candela Corp. v.
`
`Palomar Med. Techs., Inc., No. 9:06-CV-277, 2008 WL 11441909, at *2 (E.D. Tex. Sept. 24,
`
`2008), pointing to a lack of evidence on public accessibility does not create “conflicting expert
`
`opinions” of material fact. If this was the case here, Apple would not need to introduce new
`
`exhibits to try to manufacture factual disputes.
`
`B. Cyberguide’s Public Use—Apple’s arguments are equally insufficient to show a
`
`Cyberguide prototype it relies on was in public use and ready for patenting on or before the
`
`critical date. Invitrogen Corp. v. Biocrest Mfg., L.P., 424 F.3d 1374, 1378-79 (Fed. Cir. 2005).
`
`Apple’s essentially argues that: 1) it does not need to show which prototype it uses as prior art
`
`because every prototype was a fully-functional prototype with location, orientation, and
`
`directions; and 2) at least one prototype was demonstrated to visitors to navigate the GVU open
`
`houses and the quantity of attendees is irrelevant. Opp. at 11-15. Both of these arguments are
`
`
`1Mr. Stoll’s qualifications are discussed at Dkt. 397. Further, Mr. Stoll does highlight various inconsistencies in the
`evidence (e.g., unexplained dates) but he does not dispute the meaning of “DO NO CIRCULATE” because Mr.
`Munford has not offered any meaning at all—something he should have given Apple’s position that it is a
`specialized term only an expert librarian can understand. Mot. Ex. 2, Stoll Rep. at ¶ 18, Opp. at 9.
`
`
`
`4
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 11 of 14 PageID #: 25545
`
`
`
`flawed as a matter of law and unsupported. Apple has not provided a single citation to its
`
`expert’s report because Dr. Paradiso does not provide any opinion or analysis regarding which
`
`prototype he is relying on to opine that the claims are obvious. Id.
`
`First, Apple must show the specific subject of the barring public use activity that “met
`
`each of the limitations of the claim.” Juicy Whip, Inc. v. Orange Bang, Inc., 292 F.3d 728, 737
`
`(Fed. Cir. 2002). To do this, it must show “by clear and convincing evidence the claimed
`
`invention was in public use before the patent’s critical date.” Clock Spring, L.P. v. Wrapmaster,
`
`Inc., 560 F.3d 1317, 1325 (Fed. Cir. 2009). It cannot meet its burden by generally referring to a
`
`collection of prototypes, each with a different alleged public use date, without any specificity. Id.
`
`This is especially true considering some prototypes were never fully developed.2 Contrary to
`
`Apple’s claims, it is not “irrelevant that the demonstrated prototype was later subject to
`
`improvements, evaluations, or testing.” Opp. at 14. A later-improved prototype cannot have the
`
`public use date of its predecessor. Juicy Whip, Inc., 292 F.3d 728 at 737.
`
`Second, regardless of audience size, there must actually be public use. Dey, L.P. v.
`
`Sunovion Pharm., Inc., 715 F.3d 1351, 1355 (Fed. Cir. 2013). Yet, even in the light most
`
`favorable, Apple has failed to provide any details as to the nature of the public access in the
`
`GVU “open houses” such as how its “visitors” were selected or any other circumstances
`
`surrounding the control of the experimentation that took place. Apple cannot now cure this
`
`evidentiary shortcoming with uncorroborated arguments. Opp. at 13. Put simply, Apple’s failure
`
`of proof dooms this invalidity theory. See Colucci v. Callaway Golf Co., 750 F. Supp. 2d 767,
`
`773 (E.D. Tex. 2010) (“contemporaneous evidence” is required to show that the “prior art
`
`reference was publicly used, offered for sale, or sold prior to the critical date”).
`
`
`
`Accordingly, Maxell’s motion should be granted because Apple did not meet its burden.
`
`
`2 See Ex. 5 (Abowd) at 5 (confirming that no prototype was built to work both indoors and outdoors).
`
`
`
`5
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 12 of 14 PageID #: 25546
`
`Dated: July 30, 2020
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`
`
`By:
`
`/s/ Jamie B. Beaber
`
`
`
`Geoff Culbertson
`Kelly Tidwell
`Patton, Tidwell & Culbertson, LLP
`2800 Texas Boulevard (75503)
`Post Office Box 5398
`Texarkana, TX 75505-5398
`Telephone: (903) 792-7080
`Facsimile: (903) 792-8233
`gpc@texarkanalaw.com
`kbt@texarkanalaw.com
`
`Jamie B. Beaber
`Alan M. Grimaldi
`Kfir B. Levy
`James A. Fussell, III
`William J. Barrow
`Baldine B. Paul
`Tiffany A. Miller
`Michael L. Lindinger
`Saqib Siddiqui
`Bryan C. Nese
`Alison T. Gelsleichter
`Clark S. Bakewell
`MAYER BROWN LLP
`1999 K Street, NW
`Washington, DC 20006
`Telephone: (202) 263-3000
`Facsimile: (202) 263-3300
`jbeaber@mayerbrown.com
`agrimaldi@mayerbrown.com
`klevy@mayerbrown.com
`jfussell@mayerbrown.com
`wbarrow@mayerbrown.com
`bpaul@mayerbrown.com
`tmiller@mayerbrown.com
`mlindinger@mayerbrown.com
`ssiddiqui@mayerbrown.com
`bnese@mayerbrown.com
`agelsleichter@mayerbrown.com
`cbakewell@mayerbrown.com
`
`Robert G. Pluta
`Amanda Streff Bonner
`Luiz Miranda
`MAYER BROWN LLP
`
`
`
`6
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 13 of 14 PageID #: 25547
`
`
`
`71 S. Wacker Drive
`Chicago, IL 60606
`(312) 782-0600
`rpluta@mayerbrown.com
`asbonner@mayerbrown.com
`lmiranda@mayerbrown.com
`
`Graham (Gray) M. Buccigross
`MAYER BROWN LLP
`3000 El Camino Real, Suite 2-300
`Palo Alto, CA 94306
`(650) 331-2000
`gbuccigross@mayerbrown.com
`
`Counsel for Plaintiff Maxell, Ltd.
`
`
`
`7
`
`

`

`Case 5:19-cv-00036-RWS Document 457 Filed 07/30/20 Page 14 of 14 PageID #: 25548
`
`
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`CERTIFICATE OF SERVICE
`
`The undersigned certifies that all counsel of record who are deemed to have consented to
`electronic service are being served this 30th day of July 2020 via the Court’s CM/ECF system.
`
`
`/s/ Jamie B. Beaber
`Jamie B. Beaber
`
`
`
`
`
`
`
`
`
`
`
`
`
`

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