`
`
`
`
`Robert F. McCauley (SBN 162056)
`robert.mccauley@finnegan.com
`FINNEGAN, HENDERSON, FARABOW,
` GARRETT & DUNNER, LLP
`3300 Hillview Avenue
`Palo Alto, CA 94304-1203
`Telephone:
`(650) 849-6600
`Facsimile:
`(650) 849-6666
`
`Gerald F. Ivey (pro hac vice)
`Smith R. Brittingham IV (pro hac vice)
`Elizabeth A. Niemeyer (pro hac vice)
`John M. Williamson (pro hac vice)
`Rajeev Gupta (pro hac vice)
`Aidan C. Skoyles (pro hac vice)
`FINNEGAN, HENDERSON, FARABOW,
` GARRETT & DUNNER, LLP
`901 New York Avenue, NW
`Washington, DC 20001-4413
`Telephone:
`(202) 408-4000
`Facsimile:
`(202) 408-4400
`
`Stephen E. Kabakoff (pro hac vice)
`FINNEGAN, HENDERSON, FARABOW,
` GARRETT & DUNNER, LLP
`3500 SunTrust Plaza
`303 Peachtree Street, N.E.
`Atlanta, GA 30308-3263
`Telephone:
`(404) 653- 6400
`Facsimile:
`(404) 653-6444
`
`Attorneys for Plaintiffs
`OpenTV, Inc., Nagravision S.A., and Nagra France S.A.S.
`
`
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`SAN JOSE DIVISION
`
`
`
`
`
`
`
`Case No. 5:15-cv-02008-EJD (NMC)
`
`PLAINTIFFS’ REPLY IN SUPPORT
`OF RULE 54(B) CERTIFICATION
`
`Date: August 18, 2016
`Time: 9:00 a.m.
`Courtroom: 4, 5th Floor
`Judge: Honorable Edward J. Davila
`
`
`
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`OPENTV, INC., NAGRAVISION S.A., and
`NAGRA FRANCE S.A.S.
`
`
`
`
`Plaintiffs,
`
`v.
`
`
`APPLE INC.,
`
`
`Defendant.
`
`
`
`
`
`
`
`
`
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`Case 5:15-cv-02008-EJD Document 80 Filed 03/18/16 Page 2 of 12
`
`
`TABLE OF CONTENTS
`
`Page
`
`INTRODUCTION .......................................................................................................... 1
`
`ARGUMENT ................................................................................................................. 1
`
`A.
`
`B.
`
`C.
`
`Rule 54(b) Is Not Confined to “Rare,” “Harsh,” or “Infrequent” Cases ................ 1
`
`There Is Strong Potential for Increased Judicial Efficiency Through Rule
`54(b) ................................................................................................................... 2
`
`For Purposes of Rule 54(b), There Is Minimal Relevant Overlap Between the
`Claims of the Remaining Patents and the Patent Claims Held Ineligible .............. 4
`
`1.
`
`2.
`
`General Factual Overlap Is Not Meaningful for Rule 54(b) ...................... 4
`
`In This Case, Future Ineligibility Defenses Are Not Relevant to the
`Rule 54(b) Inquiry ................................................................................... 6
`
`
`
`I.
`
`II.
`
`III.
`
`CONCLUSION .............................................................................................................. 7
`
`
`
`
`
`
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`Case 5:15-cv-02008-EJD Document 80 Filed 03/18/16 Page 3 of 12
`
`
`TABLE OF AUTHORITIES
`
`Page(s)
`
`
`
`
`
`
`Cases
`
`Alice Corp. Pty. Ltd. v. CLS Bank International,
`134 S. Ct. 2347 (2014) ................................................................................................................ 3
`
`Angoss II P’ship. v. Trifox, Inc,
`No. 98-cv-1459-SI, 2000 WL 288435 (N.D. Cal. Mar. 13, 2000) ................................................ 2
`
`Curtis-Wright Corp. v. Geeral Electric Co.,
`446 U.S. 1 (1980) .............................................................................................................. passim
`
`Ferring B.V. v. Actavis, Inc.,
`No. 13-cv-00477, 2014 WL 5419055 (D. Nev. Oct. 23, 2014) .................................................... 6
`
`HTC Corp. v. IPCom GMBH & Co., KG,
`285 F.R.D. 130 (D.D.C. 2012) ................................................................................................ 2, 6
`
`Nautilus Grp., Inc. v. Icon Health & Fitness, Inc.,
`308 F. Supp. 2d 1224 (W.D. Wash. 2003) ................................................................................... 2
`
`Remediation Products, Inc. v. Adventus Americas, Inc.
`No. 07-cv-153, 2011 WL 1272924 (W.D.N.C. Apr. 1, 2011) ...................................................... 5
`
`Smart Systems Innovations, L.L.C. v. Chicago Transit Authority,
`No. 14-cv-08053 (N.D. Ill. Nov. 10, 2015) ..........................................................................3, 4, 6
`
`Solannex, Inc. v. Miasole, Inc.,
`No. 12-cv-00832-PSG, 2013 WL 430984 (N.D. Cal. Feb. 1, 2013) ............................................. 7
`
`Takeda Pharmaceutical Co. v. Handa Pharmaceuticals, LLC,
`No. 11-cv-01609-JCS (N.D. Cal. Apr. 30, 2013) ..................................................................... 4, 5
`
`Trading Technologies Int’l, Inc. v. BCG Partners, Inc.,
`883 F. Supp. 2d 772 (N.D. Ill. 2012) ....................................................................................... 2, 5
`
`Ultramercial Inc. v. Hulu, LLC,
`772 F.3d 709 (Fed. Cir. 2014) ..................................................................................................... 3
`
`Warner-Lambert Co. v. Apotex Corp.,
`No. 98-cv-4293, 2001 WL 736024 (N.D. Ill. June 28, 2001) ....................................................... 2
`
`WiAV Sols. LLC v. Motorola, Inc.,
`No. 3:09-cv-447, 2010 WL 883748 (E.D. Va. Mar. 8, 2010) ................................................5, 6, 7
`
`Williamson v. Citrix Online LLC,
`792 F.3d 1339 (Fed. Cir. 2015) ................................................................................................... 3
`
`Wm. Wrigley Jr. Co. v. Cadbury Adams USA LLC,
`No. 04-cv-00346, 2010 WL 4115427 (N.D. Ill. Oct. 18, 2010) ................................................... 2
`
`
`
`
`
`ii
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`Case 5:15-cv-02008-EJD Document 80 Filed 03/18/16 Page 4 of 12
`
`
`
`
`
`Rules
`
`Fed. R. Civ. P. 54(b) ................................................................................................................ passim
`
`
`
`
`
`iii
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`Case 5:15-cv-02008-EJD Document 80 Filed 03/18/16 Page 5 of 12
`
`INTRODUCTION
`
`
`
`I.
`
`Apple’s opposition to OpenTV’s request for Rule 54(b) certification is fundamentally based
`
`on a misapprehension of the legal standard required by the rule and the purpose behind it.
`
`Throughout its brief, Apple persistently and incorrectly asserts that Rule 54(b) certification is limited
`
`only to “rare circumstances” and “infrequent harsh cases,” urging an over-exacting standard rejected
`
`by the Supreme Court in Curtis-Wright Corp. v. General Electric, Co., 446 U.S. 1, 9–10 (1980). In
`
`using that standard, Apple misses the point: there is “no just reason” for delaying an appeal on the
`
`discrete legal issue of patent eligibility as it relates to two of the five patents-in-suit at this early
`
`stage and on such a limited record. Fed. R. Civ. P. 54(b). Straying from the Curtis-Wright
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`framework, Apple emphasizes irrelevant facts, glosses over cases allowing certification in factually
`
`11
`
`similar scenarios and under the proper legal standard, and tries to show “no judicial efficiency”
`
`12
`
`through immaterial examples of lengthy patent appeals. None of Apple’s arguments, however, sets
`
`13
`
`forth a just and relevant reason to prevent an appeal. And nothing that Apple cites rebuts the fact
`
`14
`
`that the Federal Circuit has been moving swiftly in appeals involving discrete issues of patent
`
`15
`
`eligibility. A consolidated trial is possible if any dismissed patent claims are remanded on appeal,
`
`16
`
`and no judicial waste will transpire if not. Accordingly, because no “just reason” exists to delay
`
`17
`
`appeal, and there is strong potential of gaining judicial efficiency, this Court should grant OpenTV’s
`
`18
`
`motion for Rule 54(b) certification.
`
`19
`
`20
`
`21
`
`II.
`
`ARGUMENT
`
`A.
`
`Rule 54(b) Is Not Confined to “Rare,” “Harsh,” or “Infrequent” Cases
`
`Apple repeatedly refers to Rule 54(b) certification as an exceptional event that is limited to
`
`22
`
`“only . . . rare circumstances,” “infrequent harsh case[s],” “where necessary to avoid . . . harsh and
`
`23
`
`unjust result[s],” or “where there exists some danger of hardship.” (Dkt. 79 at 1, 3, 9.) But that is
`
`24
`
`not the correct standard. In Curtis-Wright, the Supreme Court vacated a decision denying Rule
`
`25
`
`54(b) certification on the ground that the moving party had failed to “show harsh or unusual
`
`26
`
`circumstances.” 446 U.S. at 9. The Court ruled that the “infrequent harsh case” standard used by
`
`27
`
`the appellate court in Curtis-Wright—and urged by Apple here—“reflect[ed] a misinterpretation of
`
`28
`
`the standard of review for Rule 54(b) certification.” Id. at 9–10. Indeed, it was precisely the same
`
`
`
`
`
`
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`
`
`Case 5:15-cv-02008-EJD Document 80 Filed 03/18/16 Page 6 of 12
`
`
`
`1946 Advisory Committee Note cited by Apple in the first paragraph of its opposition brief that the
`
`Supreme Court described in Curtis-Wright as “neither workable nor . . . reliable” and as reflecting a
`
`“misperception of the appellate function.” Id. As set forth in OpenTV’s motion, the correct
`
`standard for determining whether “no just reason” exists under Rule 54(b) is to apply “sound judicial
`
`discretion” by “tak[ing] into account judicial administrative needs as well as the equities involved.”
`
`Id. at 8. Nothing more is required.
`
`To the extent that Apple cites case law suggesting that the “infrequent harsh case” standard
`
`still applies here, such reasoning is not endorsed by the Supreme Court and has been squarely
`
`rejected by other courts as well. Angoss II P’shp. v. Trifox, Inc., No. 98-cv-1459-SI, 2000 WL
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`288435, at *2 (N.D. Cal. Mar. 13, 2000) (“Curtis-Wright . . . expressly rejected the rule that Rule
`
`11
`
`54(b) motions should be reserved for the “infrequent harsh case.’”); see also Nautilus Grp., Inc. v.
`
`12
`
`Icon Health & Fitness, Inc., 308 F. Supp. 2d 1224, 1229 (W.D. Wash. 2003) (stating, in a patent
`
`13
`
`case, that “the Supreme Court made clear in Curtiss-Wright that the moving party need not
`
`14
`
`necessarily show that it is the ‘infrequent harsh case’ to justify entering final judgment”); Warner-
`
`15
`
`Lambert Co. v. Apotex Corp., No. 98-cv-4293, 2001 WL 736024, at *2 (N.D. Ill. June 28, 2001)
`
`16
`
`(“[Patentee’s] assertion that Rule 54(b) certification is reserved for the infrequent harsh case results
`
`17
`
`from plaintiff’s misinterpretation of the Supreme Court’s holding in Curtis-Wright . . . .”). In
`
`18
`
`contrast, all of the opinions cited by OpenTV in support of Rule 54(b) certification properly applied
`
`19
`
`the “sound judicial discretion” standard and allowed for interlocutory appeal. E.g., HTC Corp. v.
`
`20
`
`IPCom GMBH & Co., KG, 285 F.R.D. 130 (D.D.C. 2012); Trading Techs. Int’l, Inc. v. BCG
`
`21
`
`Partners, Inc., 883 F. Supp. 2d 772 (N.D. Ill. 2012), rev’d and remanded on other grounds, 728 F.3d
`
`22
`
`1309 (Fed. Cir. 2013); Wm. Wrigley Jr. Co. v. Cadbury Adams USA LLC, No. 04-cv-00346, 2010
`
`23
`
`WL 4115427 (N.D. Ill. Oct. 18, 2010), aff’d, 683 F.3d 1356 (Fed. Cir. 2012). Unlike the cases
`
`24
`
`Apple relies on, the authority cited by OpenTV provides the proper rubric for deciding this motion.
`
`25
`
`26
`
`B.
`
`There Is Strong Potential for Increased Judicial Efficiency Through Rule 54(b)
`
`Apple sweepingly asserts that there “is no judicial efficiency that can be gained” by allowing
`
`27
`
`interlocutory appeal on the discrete issue of patent eligibility of the claims of the ’081 and ’429
`
`28
`
`patents. (Dkt. 79 at 6 (emphasis added).) Apple’s statement is plainly wrong and ignores the cases
`
`
`
`
`
`2
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`
`
`Case 5:15-cv-02008-EJD Document 80 Filed 03/18/16 Page 7 of 12
`
`
`
`and facts refuting it. While Apple states that “OpenTV cherry-picks three Federal Circuit appeals
`
`that completed within twelve months” (Dkt. 79 at 7), those three cases are in fact the result of
`
`carefully inspecting the Federal Circuit’s docket for cases containing discrete issues of patent-
`
`eligibility following the Supreme Court’s decision in Alice Corp. Pty. v. CLS Bank International,
`
`134 S. Ct. 2347. For its part, Apple does not cite any comparable Federal Circuit cases following
`
`Alice having lengthy appellate timelines. Apple instead confusingly cites a means-plus-function
`
`case involving 35 U.S.C. § 112 (Williamson v. Citrix Online LLC, 792 F.3d 1339 (Fed. Cir. 2015)),
`
`and a case involving 35 U.S.C. § 101 that was stuck in appellate purgatory while the Supreme Court
`
`was in the process of hearing, deciding, and drafting Alice (Ultramercial Inc. v. Hulu, LLC, 772 F.3d
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`709 (Fed. Cir. 2014)). While both cases involved lengthy appeals, they are beside the point: Alice is
`
`11
`
`now the law and the Federal Circuit is deciding patent eligibility cases very quickly when it is the
`
`12
`
`only issue presented.
`
`13
`
`Apple’s lack of authority to support its position is further reflected by the fact that it ignores
`
`14
`
`Smart Systems Innovations, L.L.C. v. Chicago Transit Authority in opposing OpenTV’s judicial
`
`15
`
`efficiency argument.1 In Smart Systems, on facts nearly indistinguishable from those here, the court
`
`16
`
`found that the judicial efficiency gained by certifying patent eligibility issues for immediate appeal
`
`17
`
`was the primary justification for granting certification. No. 14-cv-08053 (N.D. Ill. Nov. 10, 2015),
`
`18
`
`slip op. at 3–4.2 Similar to this case, the Smart Systems court found that the “proposed appeal would
`
`19
`
`present a question of law on a limited record, and . . . [that] there [wa]s a solid chance of an appellate
`
`20
`
`decision before trial (if there is one).” Id. at 4. Undermining Apple’s assertion that “there would be
`
`21
`
`no efficiency gained because the parties would . . . need to conduct claim construction and discovery
`
`22
`
`on the remanded patents” (Dkt. 79 at 7), the Smart Systems court overcame a similar argument by
`
`23
`
`acknowledging that, “[i]f this Court’s decision is reversed, then the [c]ourt will have a chance to put
`
`
`
`1 Apple states that the “cases OpenTV cites in support of its judicial efficiency argument are
`inapposite,” but then goes on to discuss two cases that are nowhere cited in OpenTV’s section on
`“Judicial Efficiency Strongly Favor[ing] Certification.” (Dkt. 79 at 6.) Apple never addresses Smart
`Systems—the only district court case substantively discussed in that section of OpenTV’s brief.
`
`2 This Order is available from PACER and Docket Navigator. A copy is attached to this
`paper as an Addendum for the Court’s convenience.
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`3
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`
`
`Case 5:15-cv-02008-EJD Document 80 Filed 03/18/16 Page 8 of 12
`
`
`
`the brakes on before the trial,” slip op. at 4. The court explained that the potential of gaining
`
`efficiency was substantial because “it would be much better to hold one [consolidated] trial . . . ,
`
`rather than two.” Id. Of course, a similar application of “brakes” to accommodate one consolidated
`
`trial would be appropriate here if the Federal Circuit disagrees with this Court’s patent-eligibility
`
`decision.3 Thus, there is no just reason for completing all proceedings on the three other patents
`
`before allowing OpenTV to appeal the legal question of whether the claims of ’081 and ’429 patents
`
`are directed to eligible subject matter when there remains the potential for gaining judicial efficiency
`
`through an immediate appeal.
`
`C.
`
`For Purposes of Rule 54(b), There Is Minimal Relevant Overlap Between the
`Claims of the Remaining Patents and the Patent Claims Held Ineligible
`
`1.
`
`General Factual Overlap Is Not Meaningful for Rule 54(b)
`
`Apple asserts that the “overlap between the technology claimed by the Remaining Patents
`
`and the technology claimed by the Dismissed Patents . . . weighs against . . . certification.” (Dkt. 79
`
`at 5.) Apple is wrong. First, factual overlap is only relevant to the Rule 54(b) inquiry to the extent
`
`that it affects whether the claims under review are separable from the others remaining to be
`
`adjudicated. See Curtis-Wright, 466 U.S. at 8. Apple does not deny that the claims of ’081 and ’429
`
`patents are divisible from the rest. Second, nothing in the cases Apple cites supports the proposition
`
`that a general level of technological relatedness is meaningful for purposes of Rule 54(b)
`
`certification. Apple argues that the court in Takeda Pharmaceutical Co. v. Handa Pharmaceuticals,
`
`LLC, was “denying Rule 54(b) certification due to overlap in technology” (Dkt. 79 at 5), but that is a
`
`broad and incorrect generalization. The Takeda court, following Curtis-Wright, found that “[g]iven
`
`
`3 In OpenTV, Inc. v. Apple, Inc., No. 14-cv-01622 (N.D. Cal.), Apple filed a similar Rule 12
`motion, arguing one of the five asserted patents was invalid for claiming unpatentable subject matter.
`That motion was granted, just as Apple’s Rule 12 motion was granted here. Subsequently, Apple
`filed inter partes review (“IPR”) petitions with the Patent Office with respect to the four remaining
`patents, and then successfully moved to stay the entire litigation—a stay that will ultimately be in
`place for a year while the IPR proceedings finish. No. 14-cv-01622 (N.D. Cal. Oct. 21, 2015), ECF
`No. 222. Although OpenTV does not believe IPR petitions should be successful here, or that a stay
`during the pendency of any such proceedings would be justified, should Apple nonetheless pursue
`the same strategy as before, as it has stated it intends to do, that would provide further support for
`OpenTV’s request for an immediate appeal. If Apple intends to argue that a stay is appropriate here,
`then surely it must also concede that any appeal from the Court’s order dismissing the ’081 and ’429
`patents would be completed before a trial in this case.
`
`
`
`
`
`4
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`Case 5:15-cv-02008-EJD Document 80 Filed 03/18/16 Page 9 of 12
`
`
`
`that trial on the remaining claims is imminent (approximately one month away), the equities do not
`
`strongly support entry of final judgment.” No. 11-cv-01609-JCS (N.D. Cal. Apr. 30, 2013), slip op.
`
`at 3. It briefly mentioned that the “Federal Circuit w[ould] be required to familiarize itself with the
`
`same technologies [twice],” id., but that was because the patent for which summary judgment was
`
`granted related to the “controlled release formulation of dexlansoprazole” while the remaining patent
`
`involved the “dexlansoprazole active ingredient.” No. 11-cv-01609-JCS (N.D. Cal. Apr. 25, 2013),
`
`Plaintiffs’ Mot. for Rule 54(b) Cert. at 16, No. 11-cv-01609-JCS (N.D. Cal. Apr. 25, 2013), ECF No.
`
`259. In other words, the case was on the eve of trial and the patents both involved the same complex
`
`medicinal compound, dexlansoprazole. Likewise, in Remediation Products, Inc. v. Adventus
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`Americas, Inc., the parties had been litigating for nearly four years and creating a fact-intensive
`
`11
`
`record related to remediating groundwater with halogenated hydrocarbons by the time that Rule
`
`12
`
`54(b) certification on a patent-in-suit was sought. No. 07-cv-153, 2011 WL 1272924 (W.D.N.C.
`
`13
`
`Apr. 1, 2011). Thus, is its clear that Takeda and Remediation are very different from the facts here.
`
`14
`
`This case is in early stages, has little factual record as to the ’081 and ’429 patents, and the
`
`15
`
`technology is common among the patents only in that they relate generally to the field of
`
`16
`
`communicating data with interactive TVs.
`
`17
`
`Apple further alleges that “OpenTV misrepresents the facts by arguing that that is no factual
`
`18
`
`overlap because the patents-in-suit have ‘different inventors, family histories, written descriptions,
`
`19
`
`claims language, and prior art” (Dkt. 79 at 6). Apple misses the point. OpenTV argued quite clearly
`
`20
`
`that, following the Curtis-Wright framework, the asserted claims of the ’081 and the ’429 patents are
`
`21
`
`“divisible from the [remaining patent]” because each is unique for purposes of a Rule 54(b) analysis.
`
`22
`
`(Dkt. 75 at 6 (citing Trading Techs., 883 F. Supp. at 780, explaining that the relevant inquiry is
`
`23
`
`“whether the claims under review are separable from the others remaining to be adjudicated”).)
`
`24
`
`OpenTV, in fact, readily conceded that the patents are factually related to securely communicating
`
`25
`
`data, such as to interactive TVs, but argued that such a generalized level of factual relationship is not
`
`26
`
`meaningful under the relevant case law. (Id.) In WiAV Solutions LLC v. Motorola, Inc., for
`
`27
`
`example, the court certified an appeal on seven patents while two remained because, “while the
`
`28
`
`broad subject matter of the patents (wireless communications) [wa]s the same, the functionalities of
`
`
`
`
`
`5
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`
`
`Case 5:15-cv-02008-EJD Document 80 Filed 03/18/16 Page 10 of 12
`
`
`
`the remaining patents relate[d] to ‘short paging’ and ‘link adaptation’ while the [others’]
`
`functionalities relate[d] to speech coding and decoding.” No. 3:09-cv-447, 2010 WL 883748, *2
`
`(E.D. Va. Mar. 8, 2010). Along the same lines, the court in HTC Corp. certified an appeal on two
`
`patents where one patent remained even though the defendant argued that the “technology involved
`
`in [all] three patents relate[d] to mobile phones.” 285 F.R.D. at 132 (finding that the “[p]atents
`
`de[alt] with different technologies” for purposes of Rule 54(b)).
`
`That Apple can only point to the fact that the patents generally involve “content access
`
`control for interactive television” and that two of the five patents (having four and seven inventors
`
`each) have one common inventor demonstrates the weakness in its “factual relatedness” argument.
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`(Dkt. 79 at 6.) Apple does not dispute that the patents have different sets of inventors, family
`
`11
`
`histories, written descriptions, claim language, and prior art. Since Apple cannot point to anything
`
`12
`
`that actually relates the patents to each other, Apple is forced to instead rely heavily on OpenTV’s
`
`13
`
`inadvertent reference in one instance to separate “inventors” rather than separate “sets of inventors”
`
`14
`
`(compare Dkt. 75 at 1 and 6), as if that minor lack of clarity in OpenTV’s motion could magically
`
`15
`
`create factual relatedness between otherwise distinct patents and causes of action. Further, this case
`
`16
`
`has none of the facts of Ferring B.V. v. Actavis, Inc., No. 13-cv-00477, 2014 WL 5419055 (D. Nev.
`
`17
`
`Oct. 23, 2014), which Apple relies on throughout its opposition. In Ferring, the court denied
`
`18
`
`certification after dismissing three patents while one remained—but all four patents were from the
`
`19
`
`same patent family. In other words, unlike here, those patents all stemmed from the same patent
`
`20
`
`application, had identical sets of inventors, and had verbatim written descriptions. Moreover, as the
`
`21
`
`Smart Systems court recognized, the patent eligibility determination at the Rule 12(b)(6) stage does
`
`22
`
`“not require a deep-dive, or any in-depth examination, of the details of [accused products]” and is
`
`23
`
`based off of a very “limited record” of disputed facts. No. 14-cv-08053, slip op. at 4, 6. At bottom,
`
`24
`
`the claims of ’081 and ’429 patents are separable and Apple fails to identify any factual overlap
`
`25
`
`providing a “just reason” to delay an appeal.
`
`26
`
`27
`
`28
`
`
`
`
`
`2.
`
`In This Case, Future Ineligibility Defenses Are Not Relevant to the Rule
`54(b) Inquiry
`
`Finally, Apple makes much of the fact that it may eventually raise patent eligibility defenses
`
`6
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`
`
`Case 5:15-cv-02008-EJD Document 80 Filed 03/18/16 Page 11 of 12
`
`
`
`with respect to one of the three remaining patents. (Dkt. 79 at 3–4.) But Apple’s hypothetical
`
`defenses have little bearing on the Rule 54(b) analysis before the court at this juncture. As OpenTV
`
`explained in its opening brief, an appeal of the Court’s January 28, 2016 Order would only involve
`
`the discrete legal issue of whether the asserted claims of the ’081 and ’429 patents are eligible under
`
`§ 101. That inquiry is specific to the subject matter of those particular claims and supporting
`
`specifications—and not to any of the claims of the remaining patents or their written descriptions.
`
`See WiAV Sols., 2010 WL 883748, at *2 (the certified “issue [was] unique to [dismissed patents] and
`
`an appellate court will not have to consider it at all as to the remaining two patents”). Even if there
`
`is hypothetically an appeal involving a § 101 issue following trial, it would be an altogether separate
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`analysis from the analysis of the claims of the ’081 and ’429 patents, and it would not provide a “just
`
`11
`
`reason” for delaying resolution of those claims dismissed at the Rule 12(b)(6) stage.
`
`12
`
`To support its positon that the Federal Circuit will be forced to hear the same legal issue
`
`13
`
`more than once, Apple cites Solannex, Inc. v. Miasole, Inc., No. 12-cv-00832-PSG, 2013 WL
`
`14
`
`430984 (N.D. Cal. Feb. 1, 2013). That case, however, serves only to emphasize why overlap is not
`
`15
`
`an issue here. In Solannex, the court was confronted with the “confounding position of presiding
`
`16
`
`over two separate cases involving the same parties, patents from the same family with many of the
`
`17
`
`same claim terms, the same and only inventor, the same prosecution counsel, the same litigation
`
`18
`
`counsel, many of the same witnesses, and the same accused products.” Id. at *1. After
`
`19
`
`consolidating the two cases, it denied Rule 54(b) certification as to one of the patents because “many
`
`20
`
`of the same terms” shared between “patents [that] all belong to the same patent family” would—
`
`21
`
`quite literally—present the same issue to the Federal Circuit in multiple appeals. Id. at *3. The facts
`
`22
`
`of Solannex demonstrate precisely the situation that this case is not, as the patents here involve
`
`23
`
`different sets of inventors, family histories, written descriptions, claims language, and prior art.
`
`24
`
`Despite Apple’s protestations otherwise, no appellate court will hear the same issue twice if
`
`25
`
`OpenTV’s motion for Rule 54(b) is granted.
`
`26
`
`27
`
`III. CONCLUSION
`
`No just reason exists for delaying an appeal at this stage of the proceedings. OpenTV, Inc.
`
`28
`
`and Nagra France S.A.S. request that the Court enter partial judgment with respect to counts 1 and 4,
`
`
`
`
`
`7
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`
`
`Case 5:15-cv-02008-EJD Document 80 Filed 03/18/16 Page 12 of 12
`
`
`
`thereby certifying the January 28, 2016 Order for appeal under Rule 54(b).
`
`
`Dated: March 17, 2016
`
`
`FINNEGAN, HENDERSON, FARABOW,
` GARRETT & DUNNER, LLP
`
`
`
`
`
`
`
`/s/ E. Niemeyer
`By:
`Robert F. McCauley (SBN 162056)
`robert.mccauley@finnegan.com
`FINNEGAN, HENDERSON, FARABOW,
` GARRETT & DUNNER, LLP
`3300 Hillview Avenue
`Palo Alto, CA 94304-1203
`Telephone:(650) 849-6600
`Facsimile: (650) 849-6666
`
`Gerald F. Ivey (pro hac vice)
`Smith R. Brittingham IV (pro hac vice)
`Elizabeth A. Niemeyer (pro hac vice)
`John M. Williamson (pro hac vice)
`Rajeev Gupta (pro hac vice)
`Aidan C. Skoyles (pro hac vice)
`FINNEGAN, HENDERSON, FARABOW,
` GARRETT & DUNNER, LLP
`901 New York Avenue, NW
`Washington, DC 20001-4413
`Telephone:
`(202) 408-4000
`Facsimile: (202) 408-4400
`
`Stephen E. Kabakoff (pro hac vice)
`FINNEGAN, HENDERSON, FARABOW,
` GARRETT & DUNNER, LLP
`3500 SunTrust Plaza
`303 Peachtree Street, N.E.
`Atlanta, GA 30308-3263
`Telephone:(404) 653- 6400
`Facsimile: (404) 653-6444
`
`Attorneys for Plaintiffs
`OpenTV, Inc., Nagravision S.A., and Nagra France
`S.A.S.
`
`
`
`
`
`
`8
`
`PLAINTIFFS’ REPLY - RULE 54(B) CERT.
`Case No. 5:15-cv-02008-EJD (NMC)
`
`1 2 3 4 5 6 7 8 9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28