`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
`
`Case No. 6:21-cv-00331-ADA
`
`JURY TRIAL DEMANDED
`
`§§§§§§§§§§
`
`IGT and IGT CANADA SOLUTIONS ULC,
`
`Plaintiffs
`
`v.
`
`Zynga Inc.,
`
`Defendant.
`
`ZYNGA INC.’S MOTION FOR SUMMARY JUDGMENT
`OF NO WILLFULNESS
`
`PUBLIC VERSION
`
`
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`Case 6:21-cv-00331-ADA Document 145 Filed 02/09/23 Page 2 of 10
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`TABLE OF CONTENTS
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`Page
`TABLE OF AUTHORITIES ......................................................................................................... ii
`TABLE OF EXHIBITS ................................................................................................................ iii
`I.
`INTRODUCTION AND BACKGROUND ...................................................................... 1
`II.
`LEGAL STANDARD ........................................................................................................ 1
`III.
`THE COURT SHOULD GRANT SUMMARY JUDGMENT OF NO PRE- OR
`POST-SUIT WILLFULNESS ........................................................................................... 1
`CONCLUSION .................................................................................................................. 3
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`IV.
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`-i-
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`Case 6:21-cv-00331-ADA Document 145 Filed 02/09/23 Page 3 of 10
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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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`BASF Plant Sci., LP v. Commonwealth Sci. & Indus. Research Organisation,
`28 F.4th 1247 (Fed. Cir. 2022) ..............................................................................................1, 3
`
`Bos. Sci. Corp. v. Nevro Corp.,
`560 F. Supp. 3d 837 (D. Del. 2021) ...........................................................................................3
`
`MasterObjects, Inc. v. Amazon.com, Inc.,
`No. C 20-08103 WHA, 2021 U.S. Dist. LEXIS 194462 (N.D. Cal. Oct. 7,
`2021) ..........................................................................................................................................2
`
`Zafer Taahhut Insaat ve Ticaret A.S. v. United States,
`833 F.3d 1356 (Fed. Cir. 2016)..................................................................................................1
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`Other Authorities
`
`Fed. R. Civ. P. § 30(b)(6).................................................................................................................1
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`-ii-
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`Case 6:21-cv-00331-ADA Document 145 Filed 02/09/23 Page 4 of 10
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`Exhibit No.
`Exhibit 1
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`Exhibit 2
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`Exhibit 3
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`Exhibit 4
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`Exhibit 5
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`Exhibit 6
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`Exhibit 7
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`Exhibit 8
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`Exhibit 9
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`Exhibit 10
`Exhibit 11
`Exhibit 12
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`TABLE OF EXHIBITS
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`Description.
`Relevant excerpts from the August 11, 2022 deposition transcript of
`Stephen Calogero
`Relevant excerpts from IGT’s Second Supplemental Objections and
`Responses to Zynga’s First Set of Interrogatories (Nos. 1-17)
`Relevant excerpts from an Excel spreadsheet produced by Zynga with
`Filename “Social Casino Data_4Q16.xlsx” (ZYNGA00007681)
`A document produced by Zynga titled “Digital & Interactive Gaming,
`Market Research” (ZYNGA00007682-7700)
`IGT Substantive Motion 1 (For Judgment Based On No Interference-In-
`Fact) as filed on June 4, 2010 in Patent Interference No. 105,747 and
`produced by Zynga (ZYNGA00006207-266)
`IP Sale Agreement between Legal iGaming, Inc. and Atwater Ventures
`Limited produced by Zynga (ZYNGA00012848)
`Patent Acquisition Agreement between Zynga Inc. and Atwater Ventures
`Limited produced by Zynga (ZYNGA00012863)
`Letter from Mr. Renato Ascoli to Mr. Frank D. Gibeau dated September 25,
`2020 and produced by Zynga (ZYNGA00007140)
`Relevant excerpts from the January 11, 2023 deposition transcript of Craig
`E. Wills
`Zynga Inc. v. IGT, IPR2022-00199, Paper 11 (PTAB June 14, 2022)
`Zynga Inc. v. IGT, IPR2022-00200, Paper 10 (PTAB June 7, 2022)
`Zynga Inc. v. IGT, IPR2022-00368, Paper 7 (PTAB July 8, 2022)
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`-iii-
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`Case 6:21-cv-00331-ADA Document 145 Filed 02/09/23 Page 5 of 10
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`I.
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`INTRODUCTION AND BACKGROUND
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`IGT is currently asserting that Zynga willfully infringes four patents. IGT asserts both pre-
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`and post-suit willfulness. The Court should grant summary judgment of no pre-suit willfulness
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`because IGT has no evidence that Zynga had any pre-suit knowledge of the patents. The Court
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`should grant summary judgment of no post-suit willfulness because IGT has no evidence that
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`Zynga intentionally infringes. Instead, IGT’s allegation is simply that Zynga continued with its
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`pre-existing business in the face of unproven claims of infringement. As a matter of law, that does
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`not amount to a specific intent to infringe.
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`II.
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`LEGAL STANDARD
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`“[A]n entry of summary judgment is appropriate against” a plaintiff “who fails to make a
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`showing sufficient to establish the existence of an essential element to its case, and on which it
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`will bear the burden of proof at trial.” Zafer Taahhut Insaat ve Ticaret A.S. v. United States, 833
`
`F.3d 1356, 1362-63 (Fed. Cir. 2016) (citation omitted).
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`III.
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`THE COURT SHOULD GRANT SUMMARY JUDGMENT OF NO PRE- OR
`POST-SUIT WILLFULNESS
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`IGT has failed to obtain evidence that Zynga willfully infringes any patent-in-suit, either
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`pre- or post-suit. To establish willfulness, IGT “must show that the accused infringer had a specific
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`intent to infringe at the time of the challenged conduct.” BASF Plant Sci., LP v. Commonwealth
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`Sci. & Indus. Research Organisation, 28 F.4th 1247, 1274 (Fed. Cir. 2022). The patentee must
`
`show “more than knowledge of the asserted patent and evidence of infringement—which is
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`necessary, but not sufficient, for a finding of willfulness.” Id. (internal quotation marks omitted).
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`Pre-suit willfulness: IGT has no evidence that Zynga has any pre-suit knowledge of the
`
`’189, ’064 and ’212 patents.
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`Case 6:21-cv-00331-ADA Document 145 Filed 02/09/23 Page 6 of 10
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`IGT also cannot show that Zynga had pre-suit knowledge of infringement of the ’089
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`patent. The ’089 patent was part of an interference proceeding with a patent application owned by
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`Legal iGaming, Inc. See, e.g., Ex. 5 (ZYNGA00006207). Zynga eventually acquired that pending
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`application from a later owner. Ex. 6 (Legal iGaming-Atwater Agreement) at ZYNGA00012848,
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`ZYNGA00012858; Ex. 7 (Atwater-Zynga Agreement) at ZYNGA00012863, ZYNGA00012870.
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`IGT claims, with no legal support,
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`
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`. But even if such
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`knowledge could be imputed to Zynga, it is, at most, knowledge of the patent’s existence—not
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`knowledge that the accused products infringe the ’089 patent.
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`IGT also points to
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`
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` did not identify any patent claims and provided no
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`explanation as to how Zynga potentially infringes. Id. The bare bones accusations in
`
`
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`are not enough to impart knowledge of infringement. See MasterObjects, Inc. v. Amazon.com,
`
`Inc., No. C 20-08103 WHA, 2021 U.S. Dist. LEXIS 194462, at *14 (N.D. Cal. Oct. 7, 2021)
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`(rejecting pre-suit willfulness allegations that did not detail “how or why” the defendant knew it
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`specifically infringed the asserted patent) (emphasis in original).
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`Case 6:21-cv-00331-ADA Document 145 Filed 02/09/23 Page 7 of 10
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`Post-suit willfulness: The Court should also grant summary judgment of no post-suit
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`willfulness. Even if a complaint were sufficient to provide post-suit knowledge of infringement,1
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`IGT has no evidence that Zynga “had a specific intent to infringe” after the filing of the complaint.
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`BASF, 28 F.4th at 1274. For example, IGT has no evidence that Zynga copied any of IGT’s
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`patents—indeed,
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` no such evidence with respect to
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`the ‘089 patent, which is the only patent that Zynga was even allegedly aware of before being sued.
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`. Nor has IGT alleged that Zynga introduced new games
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`since the filing of the complaint that infringe. IGT also cannot show that Zynga has ever lacked a
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`good-faith belief in the merits of its non-infringement and invalidity positions. On the contrary,
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`the reasonableness of Zynga’s positions is confirmed by the PTAB’s institution of IPRs against
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`the ’089, ’212 and ’064 patents. Ex. 10 (IPR2022-00199, Institution Decision for ’089 Patent,
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`Paper 11); Ex. 11 (IPR2022-00200, Institution Decision for ’064 Patent, Paper 10); Ex. 12
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`(IPR2022-00368, Institution Decision for ’212 Patent, Paper 7). The only so-called “willful”
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`conduct that IGT has identified is that IGT has accused Zynga of infringing its patents and Zynga
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`has not halted or altered its operations in response. But that is true in basically every case and
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`cannot (on its own) be sufficient to show that the defendant had an intent to infringe as opposed to
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`a good-faith belief in the merits of its defenses. BASF, 28 F.4th at 1274.
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`IV.
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`CONCLUSION
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`For the reasons explained above, the Court should grant Zynga’s motion of no willful
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`infringement of any of the Asserted Patents.
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`1 Zynga acknowledges that this Court has previously found a complaint is an adequate basis to
`provide knowledge, but to preserve the argument for appeal, respectfully contends that it is not.
`See, e.g., Bos. Sci. Corp. v. Nevro Corp., 560 F. Supp. 3d 837, 843 (D. Del. 2021).
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`Case 6:21-cv-00331-ADA Document 145 Filed 02/09/23 Page 8 of 10
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`Dated: February 2, 2023
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`Respectfully submitted,
`
`By: /s/ Mark D. Siegmund
`
`Mark D. Siegmund
`Texas Bar No. 24117055
`STECKLER WAYNE CHERRY & LOVEPLLC
`8416 Old McGregor Road
`Waco, Texas 76712
`mark@swclaw.com
`Telephone: 254.651.3690
`Facsimile: (254) 651-3689
`
`ORRICK, HERRINGTON & SUTCLIFFE LLP
`Clement Seth Roberts, Bar No. 209203 (Pro Hac Vice)
`croberts@orrick.com
`Elizabeth R. Moulton, Bar No. 286937 (Pro Hac Vice)
`emoulton@orrick.com
`Will Melehani, Bar No. 285916 (Pro Hac Vice)
`wmelehani@orrick.com
`Sarah K. Mullins, Bar No. 324558 (Pro Hac Vice)
`sarahmullins@orrick.com
`The Orrick Building
`405 Howard Street
`San Francisco, CA 94105
`Telephone: +1 415 773 5700
`Facsimile: +1 415 773 5799
`
`Bas de Blank, Bar No. 191487 (Pro Hac Vice)
`basdeblank@orrick.com
`1000 Marsh Rd.
`Menlo Park, CA 94025
`Telephone: +1 650 614 7400
`Facsimile: +1 415 773 5799
`
`Alyssa Caridis, Bar No. 260103 (Pro Hac Vice)
`acaridis@orrick.com
`Isaac S. Behnawa, Bar No. 342441 (Pro Hac Vice)
`ibehnawa@orrick.com
`777 South Figueroa Street
`Suite 3200
`Los Angeles, CA 90017
`Telephone: +1 213 629 2020
`Facsimile: +1 213 612 2499
`
`Sten Jensen, Bar No. 443300 (Pro Hac Vice)
`sjensen@orrick.com
`
`-4-
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`Case 6:21-cv-00331-ADA Document 145 Filed 02/09/23 Page 9 of 10
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`Chris Childers, Bar No. 1719610 (Pro Hac Vice)
`cchilders@orrick.com
`Columbia Center
`1152 15th St NW
`Washington, DC 20005
`Telephone: +1 202 339 8400
`Facsimile: +1 202 339 8500
`
`Attorneys for Defendant Zynga Inc.
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`Case 6:21-cv-00331-ADA Document 145 Filed 02/09/23 Page 10 of 10
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`CERTIFICATE OF SERVICE
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`I certify that on February 2, 2023 all counsel of record who are deemed to have consented
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`to electronic service are being served with a copy of this document (and any declarations,
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`exhibits, and proposed orders filed concurrently herewith) via email.
`
`/s/ Mark D. Siegmund
`Mark D. Siegmund
`
`