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`UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
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`Plaintiff,
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`v.
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`Defendants.
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`Case No. 6:21-cv-00898-ADA
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`JURY TRIAL DEMANDED
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`ALMONDNET, INC.,
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`AMAZON.COM, INC.; AMAZON.COM
`SERVICES LLC; and AMAZON WEB
`SERVICES, INC.,
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`PLAINTIFF’S MOTION TO EXCLUDE CERTAIN OPINIONS OF W. CHRISTOPHER
`BAKEWELL AND TO STRIKE PORTIONS OF HIS EXPERT REPORT
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`PUBLIC VERSION
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 2 of 13
`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 2 of 13
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`PUBLIC VERSION
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`TABLE OF CONTENTS
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`INTRODUCTION. ...00....ccccccssseesscessceecccessceesscsescsesscesscssccsescsesscecscsesseeeseesesescssesenseesseeeeseees 1
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`REASONABLE ROYALTY BECAUSE
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`THE COURT SHOULD EXCLUDE MR. BAKEWELL’S OPINION ON
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`NON-INFRINGEING ALTERNATIVES
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 3 of 13
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`TABLE OF AUTHORITIES
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`Cases
`Finjan, Inc. v. Blue Coat Sys., Inc.,
`879 F. 3d 1299 (Fed. Cir. 2018) ................................................................................................ 1
`Glaukos Corp. v. Ivantis, Inc.,
`No. 18-cv-620, 2020 WL 10501852 (C.D. Cal. July 23, 2020) ................................................ 8
`Kim v. ConAgra Foods, Inc.,
` 465 F.3d 1312 (Fed. Cir. 2006) ................................................................................................ 6
`Niazi Licensing Corp. v. St. Jude Med. S.C., Inc.,
`30 4th 1339 (Fed. Cir. 2002) ..................................................................................................... 6
`Prism Techs. LLC v. Sprint Spectrum LP,
`849 F.3d 1360 (Fed. Cir. 2017) ................................................................................................. 8
`Radware, Ltd. v. F5 Networks, Inc.,
`No. 13-CV-02024-RMW, 2016 WL 590121 (N.D. Cal. Feb. 13, 2016) .................................. 7
`ResQNet.com, Inc. v. Lansa, Inc.,
`594 F.3d 860 (Fed. Cir. 2010) ................................................................................................... 1
`Sonos, Inc. v. D&M Holdings Inc.,
`No. CV 14-1330-WCB, 2017 WL 5633204 (D. Del. Nov. 21, 2017) ...................................... 7
`Uniloc USA, Inc. v. Microsoft Corp.,
`632 F.3d 1292 (Fed. Cir. 2011) ................................................................................................. 1
`Rules
`Fed. R. Civ. P. 37(c) ...................................................................................................................... 5
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`ii
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 4 of 13
`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 4 of 13
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`PUBLIC VERSION
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`I.
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`INTRODUCTION
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`Amazon’s damages expert Mr. W. Christopher BakewellPo
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`His affirmative opinion on reasonable royalty should therefore
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`be excluded. Mr. Bakewell also makes claims
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`a. These opinions should be excluded under Rule 26. Finally,
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`a. This alternatives is therefore not non-infringing if Mr. Bakewell assumes, as he must, that
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`the patents are infringed for the purposes of his analysis, and this opinion should therefore be
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`excluded.
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`Il.
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`THE COURT SHOULD EXCLUDE MR. BAKEWELL’S OPINION ON
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`REASONABLE ROYALTY
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`Mr. Bakewell correctly states in his opinion that
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`.” Ex. 1, July 28 2023
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`Rebuttal Report Regarding Damages (“Bakewell Rpt.”), § 123,
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`. An opinion on reasonable royalty should must
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`therefore “carefully tie proof of damages to the claimed invention’s footprint
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`in the
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`marketplace.” Jd., § 119, citing ResOQNet.com, Inc. v. Lansa, Inc., 594 F.3d 860, 869 (Fed. Cir.
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`2010) and Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292, 1320 (Fed. Cir. 2011). Mr.
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`Bakewell,however,
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 5 of 13
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`While he acknowledges
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`opine on
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` He instead opines that
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`, he does not
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`.
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` is not providing an apportionment
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`analysis. Mr. Bakewell’s opinion on reasonable royalty should therefore be excluded.
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`Mr. Bakewell’s reasonable royalty opinion has three parts.
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`¶ 322. Mr. Bakewell has no evidence
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` See, e.g., id.,
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`. See, e.g., id., ¶ 322, Exs.
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`1 Mr. Bakewell does not explain why he does this for
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`. At his deposition, Mr. Bakewell
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`2
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 6 of 13
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`claimed
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`In any case,
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` does not apportion to the patents is suit or the specific economic
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`benefits of the patents in suit to Amazon. Moreover, Mr. Bakewell’s
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`ultimately irrelevant to his opinion on reasonable royalty.
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`Next,
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` Mr. Bakewell concludes that
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`Bakewell concludes
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`, and concludes that
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` Id., ¶ 313. Paradoxically, because Mr.
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`, he cannot apportion to
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` i.e.
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`In his analysis of the effect of the Georgia Pacific factors on this baseline, Mr. Bakewell
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`concludes that the impact of the apportionment factor,
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`Id., ¶ 378. But that is the entirety of his analysis. While
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`, Mr. Bakewell does not analyze
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 7 of 13
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`PUBLIC VERSION
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`ee
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`In his Factor 15 analysis of the hypothetical negotiation, Mr. Bakewell concludes
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`scknole
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`Id., § 391.
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`In deposition, Mr. Bakewell
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`Ex. 2 at 237:12-14. See also id. at 236:16-21; 241:7-16.
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`This “analysis” provides
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`a. leaving it to the jury to figure out on its own what the specific effect of the “concept of
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`apportionment” would be at the hypothetical negotiation but providing no tools for the jury to
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`do so. The paucity of this analysis is illustrated by
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`Il
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`THE COURT SHOULD EXCLUDE MR. BAKEWELL’S OPINIONS THAT ARE
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`Mr. Bakewell provides opinions
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`4
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 8 of 13
`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 8 of 13
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`Po The underlying opinions have thus not been disclosed as required under
`Federal Rule of Evidence 26(a) and (e), and even if it were appropriate for Mr. Bakewellf
`81 oes 201 know
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`and cannot provide any detail as to the basis for these opinions, as required by Rule 702 and
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`Daubert.
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`There arePo opinions in Mr. Bakewell’s report. Po
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`2 el cites 0
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`ee. the most Mr. Bakewell could say is:
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`Ex. 2 at 208:9-209:9.
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`Po is not disclosed in his expert reports. “If a party
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`fails to provide information oridentify a witness as required by Rule 26(a) or(e), the party is
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`not allowed to use that information or witness to supply evidence on a motion,at a hearing,or at
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`a trial, unless the failure was substantially justified or is harmless.” Fed. R. Civ. P. 37(c). a
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`EEE 3s ic is oot bons
`I 2s 209 e<planatona
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 9 of 13
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`, and must therefore be excluded under Rule 702 and Daubert. See, e.g.,
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`Niazi Licensing Corp. v. St. Jude Med. S.C., Inc., 30 4th 1339, 1356-58 (Fed. Cir. 2002)
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`(excluding as unreliable under Daubert portions of an expert report that offered nothing more
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`than unsupported and conclusory opinions); cf. Kim v. ConAgra Foods, Inc., 465 F.3d 1312,
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`1320 (Fed. Cir. 2006) (affirming grant of JMOL where “conclusory [expert] testimony” was the
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`basis for the jury verdict). In addition, without knowing
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` AlmondNet cannot address these theories at trial in its
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`affirmative case (or really at all, as AlmondNet understands the Court does not typically permit
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`an infringement expert to offer “reply” testimony to a non-infringement expert’s rebuttal). Such
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`“sandbagging” brings undue prejudice to AlmondNet.
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`The second Bakewell opinion at issue here is
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` In discussing
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` Mr. Bakewell states
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` Ex. 1, ¶ 373. Mr. Bakewell cites to no discussions in support of this
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`opinion, instead
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`, although he
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` In his deposition, Mr. Bakewell indicated that
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`Ex. 2 at 210:11-22. See also id. at 212:2-5, 214:2-15.
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 10 of 13
`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 10 of 13
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`Again, the technical opinionsspp‘[aa
`2: cisclosed in an expert report, and in
`fct here Mr, BkEE8g,
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`Mr. Bakewell cannot provide the detail for this claim required by Rule 702 and Daubert, and
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`AlmondNethas had not opportunity to address it in expert reports, and cannot effectively do so
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`at trial. The prejudice from this failure is even more acute here, given the high likelihood of
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`juror confusion arising from any claim that a defendant practices its own patents. Courts
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`routinely grant motions to exclude evidence relating to the accused infringer’s own patents and
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`applications, as such evidence has no probative value, is highly prejudicial, and “would likely
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`distract and confuse the jury.” Radware, Ltd. v. F5 Networks, Inc., No. 13-CV-02024-RMW,
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`2016 WL 590121, at *8 (N.D. Cal. Feb. 13, 2016). See also Sonos, Inc. v. D&M Holdings Inc.,
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`No. CV 14-1330-WCB, 2017 WL 5633204, at *1 (D. Del. Nov. 21, 2017) (Bryson, C.J., sitting
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`by designation) (accused infringer’s patents are “irrelevant to the issue of infringement and are
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`potentially confusing to the jury.”).
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`IV.
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`THE COURT SHOULD EXCLUDE MR. BAKEWELL’S
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`CONCERNING NON-INFRINGEING ALTERNATIVES BECAUSE
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`_OPINIONS
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`Me.Bk
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`Icesis
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`greater detail in the concurrently filed Plaintiff's Motion To Exclude Certain Opinions Of Dr.
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`Henry Houh And To Strike Portions Of His Expert Report, it is black letter law that “the
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`hypothetical-negotiation rubric for the assessment of reasonable royalty damages assumes that
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`the asserted patents are valid and infringed.” Prism Techs. LLC v. Sprint Spectrum LP, 849
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 11 of 13
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`F.3d 1360, 1369 (Fed. Cir. 2017) (emphases added). Consistent with that principle, any non-
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`infringing alternatives proposed by a defendant in a patent case must, in fact, be non-infringing.
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`See, e.g., Glaukos Corp. v. Ivantis, Inc., No. 18-cv-620, 2020 WL 10501852, at *11-12 (C.D.
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`Cal. July 23, 2020) (excluding under Daubert opinions concerning an alleged non-infringing
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`alternative because it infringed asserted claims). But Dr. Houh
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`. Mr. Bakewell agrees
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`Rather, he
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`at 77:7-16
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` Ex. 2 at 37:18-38:16, 40:3-43:1; see also id.
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`). As addressed in the concurrent motion, Dr. Houh’s opinion on
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`non-infringing alternatives should therefore be excluded, and Mr. Bakewell’s opinions
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`Date: August 23, 2023
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`, should likewise be excluded.
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`Respectfully submitted,
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`By: /s/ Reza Mirzaie
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`Reza Mirzaie
`Marc A. Fenster
`Benjamin T. Wang
`Adam Hoffman
`James A. Milkey
`Amy E. Hayden
`James S. Tsuei
`Jonathan Ma
`Daniel B. Kolko
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 12 of 13
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`Jason M. Wietholter
`RUSS AUGUST & KABAT
`12424 Wilshire Boulevard 12th Floor
`Los Angeles, California 90025
`Tel: 310-826-7474
`Fax: 310-826-6991
`rmirzaie@raklaw.com
`mfenster@raklaw.com
`bwang@raklaw.com
`ahoffman@raklaw.com
`jmilkey@raklaw.com
`ahayden@raklaw.com
`jtsuei@raklaw.com
`jma@raklaw.com
`dkolko@raklaw.com
`jwietholter@raklaw.com
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`Counsel for Plaintiff ALMONDNET, INC.
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`Case 6:21-cv-00898-ADA Document 145 Filed 08/30/23 Page 13 of 13
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`CERTIFICATE OF SERVICE
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`Pursuant to the Federal Rules of Civil Procedure and Local Rule CV-5, I hereby certify
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`that, on August 23, 2023, all counsel of record who have appeared in this case are being served
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`with a copy of the foregoing via electronic email.
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`/s/ Reza Mirzaie
` Reza Mirzaie
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