`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
`
`
`
`Ocean Semiconductor LLC,
`
`
`
`
`
`
`
`
`Plaintiff,
`
`v.
`
`
`
`
`NVIDIA Corporation,
`
`
`
`
`
`
`
`
`Defendant.
`
`
`
`
`Civil Action No.: 6:20-cv-1211-ADA
`
` JURY TRIAL DEMANDED
`
`
` PATENT CASE
`
`
`PLAINTIFF OCEAN SEMICONDUCTOR LLC’S SUR-REPLY IN SUPPORT OF
`ITS OPPOSITION TO NVIDIA CORPORATION’S MOTION TO DISMISS
`
`
`
`
`
`
`
`
`
`DATED: April 9, 2021
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`/s/ Alex Chan
`Timothy Devlin
`tdevlin@devlinlawfirm.com
`Henrik D. Parker
`hparker@devlinlawfirm.com
`Alex Chan (State Bar No. 24108051)
`achan@devlinlawfirm.com
`DEVLIN LAW FIRM LLC
`1526 Gilpin Avenue
`Wilmington, Delaware 19806
`Telephone: (302) 449-9010
`Facsimile: (302) 353-4251
`
`
`
`
`
`Attorneys for Plaintiff,
`Ocean Semiconductor LLC
`
`
`
`
`
`Case 6:20-cv-01211-ADA Document 19-2 Filed 04/09/21 Page 2 of 10
`
`TABLE OF CONTENTS
`INTRODUCTION .................................................................................................................. 1
`
`I.
`
`II. ARGUMENT .......................................................................................................................... 1
`
`The ’538, ’305, and ’248 Patents Are Directed to the Manufacture of a Product and
`A.
`Subject to Section 271(g) ............................................................................................................ 1
`
`1.
`
`2.
`
`3.
`
`NVIDIA Mischaracterizes Federal Circuit Authority on Section 271(g) ..................... 1
`
`The ’538 Process Is Used in the Making of Semiconductors ....................................... 3
`
`The ’305 and ’248 Processes Are Used in the Making of Semiconductors ................. 3
`
`B.
`
`NVIDIA Has Raised an Issue of Fact Precluding Dismissal ........................................... 4
`
`Leave to Amend Is Appropriate in the Unlikely Event that the Court Determines the
`C.
`Motion to Be Well-Founded ....................................................................................................... 6
`
`III. CONCLUSION .................................................................................................................... 6
`
`
`
`
`
`
`i
`
`
`
`Case 6:20-cv-01211-ADA Document 19-2 Filed 04/09/21 Page 3 of 10
`
`TABLE OF AUTHORITIES
`
`Page(s)
`
`Cases
`
`Anticancer, Inc. v. Pfizer, Inc.,
`Case No. 11-CV-107-JLS,
`2012 WL 13180611 (C.D. Cal. June 1, 2012) ............................................................................ 2
`
`Bayer AG v. Housey Pharms, Inc.,
`340 F.3d 1367 (Fed. Cir. 2003) .................................................................................................. 2
`
`Momenta Pharms., Inc. v. Teva Pharms. USA Inc.,
`809 F.3d 610 (Fed. Cir. 2015) .................................................................................................... 2
`
`Ormco Corp. v. Align Tech., Inc.,
`653 F. Supp. 2d 1016 (C.D. Cal. 2009) ...................................................................................... 5
`
`Phillips v. AWH Corp.,
`415 F.3d 1303 (Fed. Cir. 2005) .................................................................................................. 3
`
`Zond, LLC v. Renesas Elecs. Corp.,
`Civil Action No. 13-11625-NMG,
`2014 U.S. Dist. LEXIS 114363 (D. Mass. Aug. 15, 2014) ........................................................ 5
`
`
`
`
`
`ii
`
`
`
`Case 6:20-cv-01211-ADA Document 19-2 Filed 04/09/21 Page 4 of 10
`
`I.
`
`INTRODUCTION
`
`NVIDIA’s Reply continues either to mischaracterize or ignore relevant precedent while
`
`attempting to blur the early threshold requirements to survive a motion to dismiss. The cases,
`
`from this Court, other district courts, and the Federal Circuit, all support denial of NVIDIA’s
`
`Motion to Dismiss. When properly analyzed both factually and legally, it is clear that the
`
`methods of the asserted patents fall squarely within the coverage of § 271(g). At worst, fact
`
`issues relating to commercial viability preclude dismissal of the § 271(g) causes of action.
`
`II.
`
`ARGUMENT
`
`A.
`
`The ’538, ’305, and ’248 Patents Are Directed to the Manufacture of a
`Product and Subject to Section 271(g)
`
`As an initial matter, NVIDIA’s claim that “Plaintiff argues that processes merely
`
`‘implicating’ manufacturing or related to ‘commercial viability’ are enough to meet the ‘made
`
`by’ requirement of section 271(g)” (Dkt. 18 at 1) is incorrect. Contrary to NVIDIA’s
`
`characterization, Ocean has not asserted that each of the patents is covered by § 271(g) solely
`
`because the claimed processes “implicate” to the production of semiconductors. (See Dkt. 17 at
`
`3-6.) Rather, in accordance with Bayer and other precedent, Ocean has looked to the claims and
`
`specification of the patents themselves and has identified aspects of each process demonstrating
`
`that the claimed processes result in the making of physical products. Moreover, Ocean only
`
`argued about “commercial viability” in the context that fact issues preclude dismissal at this
`
`time.1 (Id. at 8-9.)
`
`1.
`
`NVIDIA Mischaracterizes Federal Circuit Authority on Section
`271(g)
`
`NVIDIA’s recitation of applicable law continues to be incomplete. For example, the full
`
`quotation from Bayer cited in added bold by NVIDIA (Dkt. 18 at 3) reads: “Thus, the process
`
`
`1 NVIDIA cites no authority for its contention (Dkt. 18 at 2) that commercial viability is “only”
`relevant to whether a product is materially changed by subsequent processes.
`1
`
`
`
`Case 6:20-cv-01211-ADA Document 19-2 Filed 04/09/21 Page 5 of 10
`
`must be used directly in the manufacture of the product, and not merely as a predicate process
`
`to identify the product to be manufactured.”2 Bayer AG v. Housey Pharms, Inc., 340 F.3d
`
`1367, 1378 (Fed. Cir. 2003). Ocean has never asserted that processes do not need to be used in
`
`manufacturing semiconductors under § 271(g), only that they do not need to claim physical
`
`manufacture of products. (Dkt. 17 at 5.) NVIDIA’s attempt to blur this distinction in the law is
`
`inappropriate and should be rejected.3
`
`Similarly, NVIDIA further confuses matters when it sets up a straw man argument that
`
`Ocean has never made: that the drug product in Bayer was “made by” a process covered by §
`
`271(g). (Dkt. 18 at 3.) In reaching its conclusion that the claimed process in question there
`
`produced only information, the Bayer court noted that the drug product analyzed by the claimed
`
`process issue was itself a physical product. Bayer, 340 F.3d at 1377. Here, however, what is
`
`imported is not information, but the physical products that are manufactured using these
`
`patented processes.
`
`NVIDIA’s continued reliance on Momenta (Dkt. 18 at 4) is also misplaced as that case
`
`involved a testing process that was performed on a sampling of intermediate products that
`
`destroyed the samples on which the tests were performed. Momenta Pharms., Inc. v. Teva
`
`Pharms. USA Inc., 809 F.3d 610, 616-17 (Fed. Cir. 2015). As a result, there could never be any
`
`subsequent sale of any product on which the claimed method had been performed—only
`
`products on which the claimed method had not been performed survived to be developed into
`
`final products, and later imported and sold.
`
`
`2 Unless otherwise noted, emphasis within this brief has been added.
`3 Anticancer, Inc. v. Pfizer, Inc., Case No. 11-CV-107-JLS, 2012 WL 13180611 (C.D. Cal. June
`1, 2012), cited by NVIDIA (Dkt. 18 at 2) for the proposition that the scope of § 271(g) is a question
`of law, is inapposite. The complaint there failed to allege both a product manufactured using a
`patented process and importation of a product and, as such, judgment on the pleadings was
`appropriate. Moreover, the plaintiff there acknowleged that the process in question was for testing.
`2
`
`
`
`Case 6:20-cv-01211-ADA Document 19-2 Filed 04/09/21 Page 6 of 10
`
`Here, however, the patented methods recited in the ’538, ’402, ’305 and ’248 patents are
`
`performed during manufacturing and on all wafers and, thus, are actually utilized on the same
`
`units of product later imported and sold. This alone distinguishes Momenta.
`
`2.
`
`The ’538 Process Is Used in the Making of Semiconductors
`
`NVIDIA’s contentions that the claims of the ’538 patent do not “recite any processing or
`
`manufacturing steps that create or transform the properties of a product” (Dkt. 18 at 5) is flatly
`
`contradicted by the unequivocal statement in the ’538 patent that its fault detection method is
`
`“relat[ed] to processing of a subsequent workpiece” (Dkt 1-8 at 13:38), as well as by numerous
`
`other passages cited in Ocean’s Opposition. (See Dkt. 19 at 4-5.) For the same reasons, the
`
`claims do not “only recite analysis.” (Dkt. 18 at 5.) These disclosures cannot simply be ignored
`
`as NVIDIA would like this Court to do.
`
`Moreover, NVIDIA cites no authority for its creative proposition that Ocean’s reliance on
`
`the specification of a patent is somehow “irrelevant” for the purpose of determining the
`
`applicability of Section 271(g). (Dkt. 18 at 6.) In fact, claims are always construed in light of
`
`the entirety of the patent’s disclosure, including the specification and other claims. Phillips v.
`
`AWH Corp., 415 F.3d 1303, 1314 (Fed. Cir. 2005).
`
`3.
`
`The ’305 and ’248 Processes Are Used in the Making of
`Semiconductors
`
`Returning to its conclusory argument that the the asserted patents are not “used directly”
`
`in the manufacture of products (Dkt. 18 at 6), NVIDIA mischaracterizes the disclosures of the
`
`’305 and ’248 patents. Indeed, its Reply does not contain any direct citations to the patents, and
`
`relies entirely on legal argument.
`
`Both the ’305 patent and the ’248 patent cover the complex scheduling of tools and wafer
`
`lots in semiconductor fabrication processes. Without scheduling in any form, no manufacturing
`
`could take place, including, for example, which semiconductor tools are used and when, what
`
`3
`
`
`
`Case 6:20-cv-01211-ADA Document 19-2 Filed 04/09/21 Page 7 of 10
`
`processing recipes are deployed and at what rate, and where the wafers would be transported and
`
`how.
`
`NVIDIA’s argument that the “the claimed process of ‘scheduling’ is not used directly in
`
`any processes that give Defendant’s accused products their form and properties” (Dkt. 18 at 7)
`
`grossly mischaracterizes and oversimplifies the invention of each patent. Instead, as the
`
`extensive citations from both patents in Ocean’s Opposition (Dkt. 17 at 6-8) reveal, the
`
`scheduling methods dictate when a wafer lot will be processed by a given tool and how many
`
`wafers will be processed by that tool. The ’305 and ’248 processes directly control the
`
`transformation of raw materials, wafer substrates, into finished semiconductor products. Again,
`
`this is more than sufficient to place the claimed methods within the purview of § 271(g).
`
`Here again, NVIDIA overstates the reach of Federal Circuit precedent. As discussed in
`
`Section II.A.1 above, Momenta involved testing of finished products, while the ’305 and ’248
`
`processes schedule process steps during manufacturing. Bayer’s exclusion of processes that
`
`produce information as a product does not affect these processes either, as they both result in the
`
`making of physical products. Ocean has never argued that the ’248 or ‘305 processes fall within
`
`the purview of § 271(g) solely because they are “indispensable.” (Dkt. 18 at 6-7.)
`
`Finally, NVIDIA again argues, without any authority, that “[t]he claims do not recite the
`
`performance of any manufacturing steps and, as such, no aspect of the claims interacts with the
`
`manufactured products so as to create the product or give the product its properties.” (Dkt 18 at
`
`8.) This simplistic tautology has no basis in the law and should be disregarded.
`
`
`
`B.
`
`NVIDIA Has Raised an Issue of Fact Precluding Dismissal
`
`While NVIDIA takes pains to argue that the Court should not consider the factual
`
`question of whether a patented process contributes to the commercial viability of a product when
`
`4
`
`
`
`Case 6:20-cv-01211-ADA Document 19-2 Filed 04/09/21 Page 8 of 10
`
`considering the scope of § 271(g) (Dkt. 20 at 2), it once again mischaracterizes the caselaw
`
`(while not actually citing to it). For example, Ormco Corp. v. Align Tech., Inc., 653 F. Supp. 2d
`
`1016 (C.D. Cal. 2009), specifically found that the issue of commercial viability was “one
`
`relevant factor” to be considered. Ormco Corp., 653 F. Supp. 2d at 1026 n.1.4 As such, and as
`
`discussed in Ocean’s Opposition (Dkt. 17 at 8-9), whether or not producing the accused products
`
`without the use of the patented methods would be commercially viable is a fact issue that
`
`precludes dismissal.
`
`Further, NVIDIA cannot properly argue that Ocean “attempts to create a factual dispute”
`
`(Dkt. 18 at 8). It was NVIDIA that raised the issue of the contents of Ocean’s claim charts (Dkt.
`
`13 at 7 n. 1). To the extent that NVIDIA is arguing that Ocean’s claim charts fail to allege “any
`
`type of manufacturing action that creates or transforms the properties of the accused products”
`
`(Dkt. 18 at 8), this is plainly contradicted by the very charts that NVIDIA cites. Those charts
`
`refer respectively to: (a) “the Applied Materials SmartFactory Productivity Solution including
`
`SmartSched and Advanced Productivity Family (“APF”) suite (“SmartFactory”), which is used
`
`to fabricate or manufacture the ’248 Infringing Instrumentalities” (Dkt. 1-15 at 3); and (b)
`
`“the camLine LineWorks system, which is used to fabricate or manufacture the ’305
`
`Infringing Instrumentalities.” (Dkt. 1-14 at 4.)
`
`To the extent that the materials cited in Ocean’s charts are relevant to this motion, they
`
`point to questions of fact precluding dismissal. See Zond, LLC v. Renesas Elecs. Corp., Civil
`
`Action No. 13-11625-NMG, 2014 U.S. Dist. LEXIS 114363 at *8 (D. Mass. Aug. 15, 2014)
`
`(denying a motion to dimiss § 271(g) claims when it “would require factual findings outside of
`
`the Fed. R. Civ. P. 12(b)(6) record”).
`
`
`4 Related to this, it does not appear that the courts in Bayer and Momenta were ever even asked to
`address the issue of commercial viability.
`
`5
`
`
`
`Case 6:20-cv-01211-ADA Document 19-2 Filed 04/09/21 Page 9 of 10
`
`C.
`
`Leave to Amend Is Appropriate in the Unlikely Event that the Court
`Determines the Motion to Be Well-Founded
`
`Given the numerous flaws in NVIDIA’s motion, it should be denied in its entirety.
`
`Nevertheless, as set forth in Ocean’s Opposition (Dkt. 17 at 9), the Court may grant leave to
`
`amend rather than dismissing counts. Should the Court determine that Ocean has in any way
`
`failed to sufficiently meet the requirements for pleading § 271(g) infringement, then it should
`
`appropriately grant Ocean leave to amend to correct any insufficiencies in the pleaded
`
`allegations.
`
`III. CONCLUSION
`
`For all of the reasons stated above and in Ocean’s Opposition, Defendant’s Motion to
`
`Dismiss should be denied.
`
`
`
`Dated: April 9, 2021
`
`/s/ Alex Chan
`Timothy Devlin
`tdevlin@devlinlawfirm.com
`Henrik D. Parker
`hparker@devlinlawfirm.com
`Alex Chan
`State Bar No. 24108051
`achan@devlinlawfirm.com
`DEVLIN LAW FIRM LLC
`1526 Gilpin Avenue
`Wilmington, Delaware 19806
`Telephone: (302) 449-9010
`Facsimile: (302) 353-4251
`
`Attorneys for Plaintiff,
`Ocean Semiconductor LLC
`
`
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that on April 9, 2021, a true and correct copy of the above and foregoing
`
`6
`
`
`
`Case 6:20-cv-01211-ADA Document 19-2 Filed 04/09/21 Page 10 of 10
`
`document has been served on all counsel of record via the Court’s CM/ECF system.
`
`/s/ Alex Chan
`Alex Chan
`
`
`
`
`
`
`
`
`
`7
`
`