`Case 1:20-cv-00393-LO-TCB Document 735-3 Filed 06/16/21 Page 1 of 8 Page|D# 20094
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`EXHIBIT C
`EXHIBIT C
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`Case 1:20-cv-00393-LO-TCB Document 735-3 Filed 06/16/21 Page 2 of 8 PageID# 20095
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`UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF VIRGINIA
`ALEXANDRIA DIVISION
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`RAI STRATEGIC HOLDINGS, INC. AND R.J.
`REYNOLDS VAPOR COMPANY
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`Plaintiff,
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`v.
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`ALTRIA CLIENT SERVICES LLC; PHILIP
`MORRIS USA, INC.; and PHILIP MORRIS
`PRODUCTS S.A.
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`Defendants.
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`Case No. 1:20-cv-00393-LO-TCB
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`STIPULATED JUDGMENT FOR DEFENDANTS ON COUNTERCLAIM AND
`AFFIRMATIVE DEFENSES
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`1
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`Case 1:20-cv-00393-LO-TCB Document 735-3 Filed 06/16/21 Page 3 of 8 PageID# 20096
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`Plaintiffs-Counterclaim Defendants RAI Strategic Holdings, Inc. and R.J. Reynolds Vapor
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`Company (“Reynolds”) and Defendant-Counterclaim Plaintiffs Altria Client Services LLC, Philip
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`Morris USA Inc., and Philip Morris Products S.A. (“PMP/Altria”) (together, the “Parties”) hereby
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`submit this proposed Stipulated Judgment For Defendants On Counterclaim and Affirmative
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`Defenses on which PMP/Altria is entitled to judgment in its favor.1
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`WHEREAS, on October 30, 2020 Reynolds asserted a Counterclaim and affirmative
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`defense that U.S. Patent No. 6,803,545 is unenforceable for inequitable conduct before the U.S.
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`Patent and Trademark Office;
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`WHEREAS, on August 3, 2020 Reynolds has asserted various other Affirmative Defenses
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`(identified below);
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`WHEREAS, on November 13, 2020 PMP/Altria answered Reynolds’s inequitable conduct
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`Counterclaim and responded to the identified Reynolds Affirmative Defenses throughout
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`discovery;
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`WHEREAS, Reynolds has come forward with no factual support for its inequitable conduct
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`Counterclaim and Affirmative Defense;
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`WHEREAS, Reynolds has come forward with no factual support for the identified
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`Affirmative Defenses;
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`WHEREAS, on June 1, 2021, after the close of business, Reynolds has stated that it will
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`“not pursue” such Counterclaim and Affirmative Defenses;
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`NOW, THEREFORE, the Parties hereby stipulate to judgment as follows:
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`1 Courts routinely enter judgment in plaintiffs’ favor on defendants’ affirmative defenses and
`related counterclaims. See, e.g., TecSec, Inc. v. Adobe Sys., 326 F. Supp. 3d 105, 111 (E.D. Va.
`2018) (“TecSec is awarded summary judgment on Adobe’s affirmative defense of laches.”) (J.
`O’Grady).
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`2
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`Case 1:20-cv-00393-LO-TCB Document 735-3 Filed 06/16/21 Page 4 of 8 PageID# 20097
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`1.
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`Judgment is entered in favor of PMP/Altria of no inequitable conduct regarding
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`Reynolds’s Twelfth Affirmative Defense and Counterclaim I with respect to U.S. Patent No.
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`6,803,545.
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`2.
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`Judgment is entered in favor of PMP/Altria regarding Reynolds’s Fifth Affirmative
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`Defense with respect to U.S. Patent No. 10,104,911.
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`3.
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`Judgment is entered in favor of PMP/Altria regarding Reynolds’s Fifth Affirmative
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`Defense with respect to U.S. Patent No. 10,555,556.
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`4.
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`Judgment is entered in favor of PMP/Altria regarding Reynolds’s unclean hands
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`affirmative defense (Fifth Affirmative Defense) with respect to U.S. Patent No. 6,803,545.
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`5.
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`Judgment is entered in favor of PMP/Altria regarding Reynolds’s estoppel, waiver,
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`and acquiescence affirmative defenses (Fifth Affirmative Defense) with respect to U.S. Patent No.
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`10,420,374.
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`6.
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`Judgment is entered in favor of PMP/Altria regarding Reynolds’s estoppel, waiver,
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`and acquiescence affirmative defenses (Fifth Affirmative Defense) with respect to U.S. Patent No.
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`9,814,265.
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`7.
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`Judgment is entered in favor of PMP/Altria regarding Reynolds’s Sixth Affirmative
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`Defense of limitation on damages pursuant to 35 U.S.C. §§ 286 and 287 with respect to Philip
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`Morris Products S.A.’s infringement claims based on U.S. Patent Nos. 9,814,265, 10,555,556, and
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`10,104,911.
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`8.
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`Judgment is entered in favor of PMP/Altria regarding Reynolds’s Eleventh
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`Affirmative Defense of extraterritorial claims.
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`3
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`Case 1:20-cv-00393-LO-TCB Document 735-3 Filed 06/16/21 Page 5 of 8 PageID# 20098
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`SO ORDERED this ____________ day of __________, 2021.
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`____________________________________
`The Honorable Liam O’Grady
`U.S. District Court Judge
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`4
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`Case 1:20-cv-00393-LO-TCB Document 735-3 Filed 06/16/21 Page 6 of 8 PageID# 20099
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`Dated: June 2, 2021
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`Clement J. Naples (pro hac vice)
`clement.naples@lw.com
`LATHAM & WATKINS LLP
`885 Third Avenue
`New York, NY 10022-4834
`Tel: (212) 906-1200; Fax: (212) 751-4864
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`Gregory K. Sobolski (pro hac vice)
`Greg.sobolski@lw.com
`LATHAM & WATKINS LLP
`505 Montgomery Street, Suite 2000
`San Francisco, CA 94111
`Tel: (415) 391-0600; Fax: (415) 395-8095
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`Brenda L. Danek (pro hac vice)
`brenda.danek@lw.com
`LATHAM & WATKINS LLP
`330 North Wabash Avenue, Suite 2800
`Chicago, IL 60611
`Tel: (312) 876-7700; Fax: (312) 993-9767
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`Respectfully submitted,
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`By: /s/ Draft
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`Maximilian A. Grant (VSB No. 91792)
`max.grant@lw.com
`Lawrence J. Gotts (VSB No. 25337)
`lawrence.gotts@lw.com
`Matthew J. Moore (pro hac vice)
`matthew.moore@lw.com
`Jamie Underwood
`jamie.underwood@lw.com (pro hac vice)
`LATHAM & WATKINS LLP
`555 Eleventh Street, N.W., Ste. 1000
`Washington, DC 20004
`Tel: (202) 637-2200; Fax: (202) 637-2201
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`Counsel for Defendants Altria Client Services
`LLC, Altria Group, Inc., Philip Morris USA,
`Inc., Philip Morris International Inc., and
`Philip Morris Products S.A.
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`5
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`Case 1:20-cv-00393-LO-TCB Document 735-3 Filed 06/16/21 Page 7 of 8 PageID# 20100
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`Stephanie E. Parker
`JONES DAY
`1420 Peachtree Street, N.E.
`Suite 800
`Atlanta, GA 30309
`Telephone: (404) 521-3939
`Facsimile: (404) 581-8330
`Email: separker@jonesday.com
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`Anthony M. Insogna
`JONES DAY
`4655 Executive Drive
`Suite 1500
`San Diego, CA 92121
`Telephone: (858) 314-1200
`Facsimile: (844) 345-3178
`Email: aminsogna@jonesday.com
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`William E. Devitt
`JONES DAY
`77 West Wacker
`Suite 3500
`Chicago, IL 60601
`Telephone: (312) 269-4240
`Facsimile: (312) 782-8585
`Email: wdevitt@jonesday.com
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`Sanjiv P. Laud
`JONES DAY
`90 South Seventh Street
`Suite 4950
`Minneapolis, MN 55402
`Telephone: (612) 217-8800
`Facsimile: (844) 345-3178
`Email: slaud@jonesday.com
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`By: /s/ DRAFT
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`
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`David M. Maiorana (VA Bar No. 42334)
`Ryan B. McCrum
`JONES DAY
`901 Lakeside Ave.
`Cleveland, OH 44114
`Telephone: (216) 586-3939
`Facsimile: (216) 579-0212
`Email: dmaiorana@jonesday.com
`Email: rbmccrum@jonesday.com
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`John J. Normile
`JONES DAY
`250 Vesey Street
`New York, NY 10281
`Telephone: (212) 326-3939
`Facsimile: (212) 755-7306
`Email: jjnormile@jonesday.com
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`Alexis A. Smith
`JONES DAY
`555 South Flower Street
`Fiftieth Floor
`Los Angeles, CA 90071
`Telephone: (213) 243-2653
`Facsimile: (213) 243-2539
`Email: asmith@jonesday.com
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`Charles B. Molster, III Va. Bar No. 23613
`THE LAW OFFICES OF
`CHARLES B. MOLSTER, III PLLC
`2141 Wisconsin Avenue, N.W. Suite M
`Washington, DC 20007
`Telephone: (703) 346-1505
`Email: cmolster@molsterlaw.com
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`Counsel for Plaintiffs
`RAI Strategic Holdings, Inc.
`R.J. Reynolds Vapor Company
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`6
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`Case 1:20-cv-00393-LO-TCB Document 735-3 Filed 06/16/21 Page 8 of 8 PageID# 20101
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`CERTIFICATE OF SERVICE
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`I hereby certify that on this 2nd day of June, 2021, a true and correct copy of the foregoing
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`was served using the Court’s CM/ECF system, with electronic notification of such filing to all
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`counsel of record:
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`/s/ Maximilian A. Grant
`Maximilian A. Grant (VSB No. 91792)
`LATHAM & WATKINS LLP
`555 Eleventh Street, N.W., Suite 1000
`Washington, DC 20004
`Telephone: (202) 637-2200
`Facsimile: (202) 637-2201
`Email: max.grant@lw.com
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`Counsel for Defendants Altria Client
`Services LLC, Altria Group, Inc., Philip
`Morris USA, Inc., Philip Morris
`International Inc., and Philip Morris
`Products S.A.
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