throbber

`
`Case No. 1:20-cv-00393-LO-TCB
`
`ORAL ARGUMENT REQUESTED
`
`
`
`
`
`
`
`RAI STRATEGIC HOLDINGS, INC. AND
`R.J. REYNOLDS VAPOR COMPANY
`
`
`
`
`
`Plaintiffs and
`Counterclaim Defendants,
`
`v.
`
`
`ALTRIA CLIENT SERVICES LLC; PHILIP
`MORRIS USA INC.; and PHILIP MORRIS
`PRODUCTS S.A.
`
`
`
`
`
`Defendants and
`Counterclaim Plaintiffs.
`
`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 1 of 11 PageID# 27755
`
`UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF VIRGINIA
`ALEXANDRIA DIVISION
`
`
`
`
`
`
`PMI/ALTRIA’S OPPOSITION TO RJR’S MOTION IN LIMINE NO. 9
`
`
`
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 2 of 11 PageID# 27756
`
`TABLE OF CONTENTS
`
`
`
`Page
`
`RJR’S MIL #9: THE JURY SHOULD BE ALLOWED TO CONSIDER
`REGARDING THE ACCUSED ALTO E-
`CIGARETTE .......................................................................................................................1
`
`
`
`A.
`
`B.
`
`C.
`
`D.
`
` Are Relevant To
`Infringement .............................................................................................................1
`
` Are Relevant To Damages ..............2
`
`RJR Has Not Shown That Exclusion Is Warranted Under Rule 403 .......................5
`
`Conclusion ...............................................................................................................6
`
`i
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 3 of 11 PageID# 27757
`
`TABLE OF AUTHORITIES
`
`CASES
`
`Am. Academy of Pediatrics v. FDA,
`No. 8:18-cv-883, Dkt 179 (D. Md. Apr. 3, 2020) ....................................................................... 3
`
`DePuy Spine, Inc. v. Medtronic Sofamor Danek, Inc.,
`567 F.3d 1314 (Fed. Cir. 2009) ................................................................................................... 4
`
`Fabric Selection, Inc. v. NNW Imp., Inc.,
`No. 16-cv-8558, 2018 WL 1779334 (C.D. Cal. Apr. 11, 2018) .................................................. 6
`
`Intelligent Verification Sys., LLC v. Microsoft Corp.,
`No. 12-cv-525, 2015 WL 1518099 (E.D. Va. Mar. 31, 2015) .................................................... 2
`
`Plexxikon Inc. v. Novartis Pharmaceutical Corp.,
`No. 17-cv-04405, 2021 WL 2224267 (N.D. Cal. June 2, 2021) ............................................. 5, 6
`
`SPEX Techs. v. Apricorn, Inc.,
`No. 16-cv-7349, 2020 WL 1289546 (C.D. Cal. Jan. 21, 2020) .................................................. 4
`
`RULES
`
`FED. R. EVID. 403 ............................................................................................................................ 1
`
`
`
`
`
`ii
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 4 of 11 PageID# 27758
`
`
`RJR’S MIL #9: THE JURY SHOULD BE ALLOWED TO CONSIDER
` REGARDING THE ACCUSED ALTO E-CIGARETTE
`
`
`
`
`
`
`
`Now, RJR wants to exclude that evidence from trial because certain technical information is
`
`supposedly
`
` Mot. at 1. RJR is wrong and its request overbroad.
`
`The Court should deny RJR’s motion for three reasons. First, RJR’s request is overbroad
`
`because it seeks to exclude technical documents that include admittedly
`
`
`
`
`
`seek to exclude it after the other side’s expert (reasonably) relies on that discovery. Second, the
`
` A party cannot produce discovery and then
`
`
`
`
`
` Third, RJR’s almost throwaway conclusory
`
`assertions of confusion and prejudice do not substantially outweigh (or outweigh at all) the highly
`
`probative value of its own
`
` FED. R. EVID. 403.
`
`A.
`
` Are Relevant To Infringement
`
`RJR contends that the Court should exclude evidence from
`
`
`
` and, according to RJR, thus irrelevant to
`
`infringement. Mot. at 4-5. RJR’s requested relief is overbroad because these
`
`
`
`discovery. That evidence is relevant to infringement and was (unsurprisingly)
`
`
`
` that RJR produced in
`
`.
`
`1
`
`
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 5 of 11 PageID# 27759
`
` Mot. at 3.
`
`
`
`
`
`
`
`
`
`
`
`See Dkts. 541, 541-1 (RJR stipulating that PX-28 and PX-122, among other documents, are
`
`authentic business records).
`
`
`
` Mot.
`
`at 2; see also Dkt. 856-2 at 309:7-9, 335:22-338:18. And, contrary to RJR’s unsupported assertion,
`
`PMI/Altria’s expert does rely
`
` to show infringement. See
`
`Dkt. 856-4 (Abraham 3/12/2021 Supp. Rpt.) ¶¶ 11-12, 17-18, 22, 25, 31, 38, 40-42 (citing PX-28
`
`(RJREDVA_001450878) and PX-122 (RJRITC_001360053)). The Court should deny RJR’s
`
`overbroad request for wholesale exclusion of exhibits that include evidence undisputedly relevant
`
`to infringement. Intelligent Verification Sys., LLC v. Microsoft Corp., No. 12-cv-525, 2015 WL
`
`1518099, at *10 (E.D. Va. Mar. 31, 2015) (“Orders in limine which exclude broad categories of
`
`evidence should rarely be employed.”).
`
`B.
`
` Are Relevant To Damages
`
`Separately, RJR’s motion should be denied because RJR’s
`
`
`
`
`
`
`
`
`
`
`
` Ex. A (Ehrlich Op.) ¶¶ 18-40;
`
`
`
`2
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 6 of 11 PageID# 27760
`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 6 of 11 PagelD# 27760
`
`Ex. B (Sullivan Rbt.) 9 24, 52, 285-87, 293, 345, 378; Ex. C (Clissold Rbt.) ¥ 8, 12, 17-20, 32,
`
`35, 37, 48-49, 54.
`
`9 8, 12, 17-202
`
`(Ehrlich Op.) § 29.
`
`Ex. B (Sullivan Rbt.) §§ 285-87, 293; Ex. C (Clissold Rbt.)
`
`Ex. D (Ehrlich Dep.) at 186:5-189:16; Ex. A
`
`ES 1j0:) shoud
`allowed to weigh the evidencdi and decide whether
`
`those theories are credible.
`
`Second, the U.S. District Court for the District of Maryland issued an orderthat required
`
`RJR (and other e-cigarette manufacturers) to submit complete and accurate PMTAs by September
`
`9, 2020. Am. AcademyofPediatrics v. FDA, No. 8:18-cv-883, Dkt. 179, Indicative Order (D. Md.
`
`Apr. 3, 2020); Ex. A (Ehrlich Op.) § 28.
`
`Mot. at 1-2.
`
`! The relevant history of e-cigarette regulation in the United States is described in the opening
`report of PMI/Altria’s FDA expert, Stacy Ehrlich. Ex. A (Ehrlich Op.) §§ 18-40.
`
`2 See Dkts. 910 (Sullivan Daubert), 917 (Clissold Daubert).
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 7 of 11 PageID# 27761
`
`
`
` Ex. E (Clissold Dep.) at 87:1-88:10.
`
` Id.; Ex. D (Ehrlich Dep.) at 186:5-189:16.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` SPEX Techs. v. Apricorn, Inc., No. 16-cv-7349, 2020 WL 1289546, at *2 (C.D. Cal. Jan.
`
`21, 2020); see Dkt. 915 at 19-24; Dkt. 922 at 8-12.
`
`jury in this case is tasked with deciding the questions of validity and infringement of the ’911
`
` “[t]he
`
`Patent, not with deciphering the VUSE Alto’s regulatory status.” Mot. at 5. RJR is wrong.
`
`
`
`
`
`(Sullivan Rbt.) ¶¶ 291-95.
`
`(Clissold Rbt.) ¶¶ 8, 54-55.
`
` Ex. B
`
`
`
` Ex. C
`
`
`
`
`
` Ex. F (Meyer
`
`Op.) ¶¶ 440-51; Ex. A (Ehrlich Op.) ¶¶ 98-103; see also DePuy Spine, Inc. v. Medtronic Sofamor
`
`Danek, Inc., 567 F.3d 1314, 1332 (Fed. Cir. 2009) (affirming finding that redesigned product was
`
`4
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 8 of 11 PageID# 27762
`
`not “available” where it was not on the market and “had never been submitted to [FDA] for the
`
`necessary marketing approval”).
`
`C.
`
`RJR Has Not Shown That Exclusion Is Warranted Under Rule 403
`
`Facing the challenge of excluding authentic documents that it produced in discovery that
`
`are undeniably probative of infringement and damages, RJR makes conclusory claims of unfair
`
`prejudice under Rule 403. For example, RJR argues that the jury may be misled into comparing
`
` with the ’911 Patent claims to determine infringement. Mot. at 6.
`
`Aside from RJR’s unsupported speculation, there is no such risk because
`
`
`
`
`
` Dkt. 856-3 (Abraham Dep.) at 72:21-73:2 (“I am not
`
`intending to offer opinions at trial based on
`
`.”). To the extent there is any
`
`potential confusion that genuinely gives RJR pause, its lawyers can clarify
`
`
`
` (i) with their experts, (ii) on cross-examination, and (iii) in
`
`closing. RJR identifies no concrete risks of unfair prejudice, and there are none. The real danger
`
`of prejudice is on the other side; it would be unfairly prejudicial
`
`
`
`
`
`
`
`
`
`RJR’s cited cases are inapposite. Mot. at 6. The court in Plexxikon Inc. v. Novartis
`
`Pharmaceutical Corp. excluded evidence of compounds of the patentee’s own products that were
`
`“not covered by the asserted patents,” which the patentee sought to use “to explain its development
`
`story for the asserted patents” and “rebut [defendant’s] arguments for lack of enablement,
`
`obviousness, and damages.” No. 17-cv-04405, 2021 WL 2224267, at *3 (N.D. Cal. June 2, 2021).
`
`The court excluded this evidence for certain purposes because “[i]ndividual elements of a patent
`
`5
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 9 of 11 PageID# 27763
`
`claim—no matter how important to the invention—are not entitled to protection,” and “[r]elated
`
`inventions similarly have no bearing.” Id. (citations omitted). That is distinct from the situation
`
`here, where RJR seeks to exclude evidence that is relevant to both infringement (the accurate
`
`technical information)
`
`
`
` RJR has put at issue.
`
`RJR relies on Fabric Selection, Inc. v. NNW Imp., Inc., but that is a copyright case, not a
`
`patent infringement case. No. 16-cv-8558, 2018 WL 1779334, at *8 (C.D. Cal. Apr. 11, 2018).
`
`And, in any event, the plaintiff in Fabric Selection only sought to use the allegedly incorrect
`
`designs for impeachment and the evidence was otherwise irrelevant to any issue at trial. Id. Here,
`
`PX-28 and PX-122 were both produced by RJR and are undisputedly authentic and probative of
`
`both liability (infringement) and the
`
`
`
`
`
`D.
`
`Conclusion
`
`PMI/Altria respectfully request that the Court deny RJR’s Motion in Limine No. 9.
`
`Dated: February 11, 2022
`
`
`
`
`
`
`Respectfully submitted,
`
`By: /s/ Maximilian A. Grant
`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 (pro hac vice)
`jamie.underwood@lw.com
`LATHAM & WATKINS LLP
`555 Eleventh Street, N.W., Suite 1000
`Washington, DC 20004
`Telephone: (202) 637-2200
`Facsimile: (202) 637-2201
`
`Clement J. Naples (pro hac vice)
`clement.naples@lw.com
`
`6
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 10 of 11 PageID# 27764
`
`LATHAM & WATKINS LLP
`885 Third Avenue
`New York, NY 10022-4834
`Tel: (212) 906-1200; Fax: (212) 751-4864
`
`Gregory J. Sobolski (pro hac vice)
`greg.sobolski@lw.com
`LATHAM & WATKINS LLP
`505 Montgomery Street, Suite 2000
`San Francisco, CA 94111
`Telephone: (415) 391-0600
`Facsimile: (415) 395-8095
`
`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
`
`Counsel for Plaintiffs Altria Client Services
`LLC, Philip Morris USA Inc., and Philip
`Morris Products S.A.
`
`7
`
`

`

`Case 1:20-cv-00393-LO-TCB Document 992 Filed 02/11/22 Page 11 of 11 PageID# 27765
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that on this 11th day of February, 2022, a true and correct copy of the
`
`foregoing was served using the Court’s CM/ECF filing system, with electronic notification of
`
`such filing to all counsel of record.
`
`
`
`/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
`
`Counsel for Plaintiffs Altria Client
`Services LLC, Philip Morris USA Inc.,
`and Philip Morris Products S.A.
`
`
`
`
`
`
`
`
`
`
`
`8
`
`

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