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Case 2:16-cv-00246 Document 1-2 Filed 03/21/16 Page 1 of 135 PageID #: 42
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`EXHIBIT B 
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`NICHIA EXHIBIT 2015
`Vizio, Inc. v. Nichia Corp.
`Case IPR2018-00386
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`IPR Cover Page
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`NICHIA CORPORATION,
`
`Plaintiff,
`
`
`
`v.
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`EVERLIGHT ELECTRONICS CO., LTD.,
`EVERLIGHT AMERICAS, INC., ZENARO
`LIGHTING, INC. and ZITROZ LLC,
`
`Defendants.
`
`Case No. 02:13-cv-702-JRG
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`MEMORANDUM OPINION AND ORDER
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`FINDINGS OF FACT (“FF”)
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`I.
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`Introduction
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`[FF1]
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`This is a civil action asserting patent infringement. (Second Amended
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`Complaint, Dkt. No. 76, at ¶ 6.) Plaintiff Nichia Corporation (“Nichia”) brings claims based on
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`allegations of the Defendants’ unauthorized, infringing manufacture, use, sale, and offer for sale
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`in the United States, and importation into the United States, of light-emitting diode (“LED”)
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`products. (Second Amended Complaint at ¶¶ 14, 18, and 26.) Specifically, Nichia asserts that
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`Defendants infringe the asserted claims of United States Patent No. 7,432,589 (“’589 patent”),
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`No. 7,462,870 (“’870 patent”), and No. 8,530,250 (“’250 patent”) (collectively, “Nichia’s
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`Patents” or the “patents-in-suit”). (Id.) Defendants assert counterclaims seeking declarations
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`that the asserted claims of Nichia’s Patents are invalid and not infringed. (Defendants’ Answer
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`and Counterclaim to Plaintiff’s Second Amended Complaint, Dkt. No. 84, at ¶¶15–46.)
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`[FF2]
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`For the reasons discussed below, Nichia has demonstrated by a preponderance
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`of the evidence that Defendants’ accused products and manufacturing process infringe the
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`asserted claims of Nichia’s Patents. Defendants have not proven by clear and convincing
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`evidence that any of the asserted claims of Nichia’s Patents are invalid.
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`[FF3]
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`In its Second Amended Complaint Nichia withdrew its claim for monetary
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`damages and instead, requested prospective relief in the form of a permanent injunction.
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`Compare (First Amended Complaint, Dkt. No. 13, at ¶ C & D) with (Second Amended
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`Complaint at ¶ C.) For the reasons discussed below, Nichia has not demonstrated that
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`Defendants’ past and continuing infringement of Nichia’s Patents has caused, and will continue
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`to cause, irreparable harm to Nichia. In these circumstances, and taking into account all relevant
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`factors, Nichia has not demonstrated that it is entitled to injunctive relief.
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`[FF4]
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`This matter was tried to the Court, without a jury, on May 11, 12, and 13,
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`2015.
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`A. The Parties
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`i. Plaintiff Nichia Corporation
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`[FF5]
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`Nichia is a corporation organized and existing under the laws of Japan, with
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`its principal place of business at 491 Oka, Kaminaka-Cho, Anan-Shi, Tokushima, Japan 774-
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`8601. (Second Amended Complaint at ¶ 1.)
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`[FF6]
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`Nichia earns revenue from the sales (including sales in the United States) of a
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`wide array of products including LEDs, laser diodes (“LDs”), fine chemicals, and luminescent
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`materials. (PTX719 (Nichia America Corp. Financial Statements) at 7, ¶ 1(a).) Nichia’s LEDs
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`are inputs to a variety of products, including general lighting, displays, automobiles, and
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`backlighting. (5/12/2015 AM Trial Tr., Dkt. No. 167, at 10:8-22.)
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`[FF7]
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`Nichia operates in the United States through its subsidiary Nichia America
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`Corp. (“Nichia America”). Nichia America is Nichia’s sole distributor in the U.S. (PTX561
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`(Nichia America – Nichia Corporation Distributor Agreement, “Distributorship/Agency
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`Agreement,” 11/16/01); PTX1220 (Nichia-Nichia America Purchase Agreement dated as of
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`October 1, 2013).)
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`ii. Defendant Everlight Electronics Co., Ltd.
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`[FF8]
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`Defendant Everlight Electronics Co., Ltd. (“Everlight”) is a corporation
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`organized and existing under the laws of Taiwan, with its headquarters and principal place of
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`business at No. 6-8, Zhonghua Rd., Shulin Dist., New Taipei City, Taiwan 23860. (Second
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`Amended Complaint, ¶ 2; Defendants’ Answer, ¶ 2.) Everlight is an LED packaging company
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`that buys chips from suppliers and packages them into LEDs. (5/12/2015 PM Trial Tr., Dkt. No.
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`168, at 27:25-28:15.). Everlight sells products to customers located in the U.S. directly and
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`through its subsidiaries, Defendants Everlight Americas and Zenaro. (PTX406 (Everlight
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`Annual Report for 2013), PTX408 (partial translation of PTX406).)
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`iii. Defendant Everlight Americas, Inc.
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`[FF9]
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`Defendant Everlight Americas, Inc. (“Everlight Americas”) is a subsidiary of
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`Everlight. Everlight Americas is incorporated in Texas, and has its principal place of business at
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`3220 Commander Dr., Suite 100, Carrollton, Texas, 75006. (Second Amended Complaint, ¶ 3;
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`Defendants’ Ans., ¶ 3; 5/12/2015 PM Trial Tr., Dkt. No. 168, at 21:15-2.) Everlight Americas
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`offers for sale and sells in North America Everlight’s accused products. Everlight Americas
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`makes sales directly to Everlight’s customers, and it also makes “commission sales,” whereby it
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`initiates sales in the United States with a customer, but the sale itself takes place outside of the
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`United States by and through another Everlight entity. (5/12/2015 PM Trial Tr., Dkt. No. 168, at
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`56:4-57:16.)
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`iv. Defendant Zenaro Lighting, Inc.
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`[FF10] Defendant Zenaro Lighting, Inc. (“Zenaro”) is a Florida corporation with its
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`principal place of business at 3618 Quantum Blvd., Boynton Beach, Florida 33426. Zenaro is a
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`subsidiary of Defendant Everlight. (Second Amended Complaint, ¶ 4; Defendants’ Ans., ¶ 4;
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`PTX406, 408 (Everlight 2013 Annual Report and translation).)
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`[FF11] By stipulation, the parties agreed not to “raise issues or present evidence at
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`trial with respect to the activities, status, or liability of Zenaro Lighting, Inc.” The parties further
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`agreed that any injunction issued in this lawsuit, in addition to including the language specified
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`in Fed. R. Civ. P. 65(d)(2), “will apply (a) to any product that incorporates an LED to which the
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`injunction applies, and (b) to any product that incorporates an LED that is not colorably different
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`from an LED to which the injunction applies.” See (Parties’ Second Additional Stipulations Re:
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`Trial (Dkt. No. 149), ¶ 2.)
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`v. Defendant Zitroz LLC
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`[FF12] Defendant Zitroz LLC (“Zitroz”) is a California limited liability company
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`with its principal place of business at 3855 Main Street, Chula Vista, California 91911. (Second
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`Amended Complaint, ¶ 5; Defendants’ Ans., ¶ 5.) Zitroz has been a manufacturer’s
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`representative for Zenaro, and has provided direct sales and marketing support for Zenaro’s LED
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`lamp and luminaire retrofit program, as well as for Zenaro’s retail distribution initiatives in the
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`United States and Canada.
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`[FF13] On May 7, 2015, the Court granted an agreed, joint motion, which dismissed
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`all of Nichia’s claims against Zitroz without prejudice. The Court likewise dismissed all of
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`Zitroz’s counterclaims and defenses against Nichia without prejudice. The Court’s order had no
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`effect on the claims, counterclaims, or defenses between the other parties. (Dkt. No. 156.)
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`[FF14]
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`The following chart identifies, for each of the asserted claims of the Nichia
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`Patents, the accused Everlight products:
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`B. The Parties’ Witnesses
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`[FF15] At trial, the Court heard testimony from the following expert witnesses called
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`by Nichia:
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`
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`a. Dr. E. Fred Schubert is a Distinguished Professor in the Department of Electrical,
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`Computer, and Systems Engineering at Rensselaer Polytechnic Institute in New
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`York. He has worked in the field of semiconductor microelectronic and
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`optoelectronic devices, including LEDs, for over 30 years. Dr. Schubert
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`previously was a professor at Boston University. He also spent ten years
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`working in the lighting industry at AT&T Bell Labs. Dr. Schubert is the author
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`of academic textbooks and other publications in the field of LEDs. He is the
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`founding director of the Smart Lighting Engineering Research Center, which is
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`funded by the National Science Foundation. The Center’s work concerns LEDs
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`and the packaging of LED devices to make intelligent or “smart” lighting
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`systems. A full explanation of Professor Schubert’s qualifications is set forth in
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`the Stipulation Regarding the Qualification of Plaintiffs’ and Defendants’
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`Experts. (Dkt. No. 154 (“Expert Stip.”), ¶¶ 1-13.) The Court finds that Dr.
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`Schubert is a qualified expert witness in the field of light-emitting diode and
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`semiconductor technology, including packaging. (5/11/2015 AM Trial Tr., Dkt.
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`No. 165, at 29:24-30:8.)
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`b. Dr. Matthew Lynde is an economist and a Vice President of Cornerstone
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`Research, an economic and financial consulting firm. Dr. Lynde earned B.A.
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`and Ph.D. degrees in economics from the University of California at Berkeley.
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`Dr. Lynde’s dissertation research concerned the impact of technological
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`innovation on international competition. As an undergraduate, Dr. Lynde
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`studied electrical engineering as well as economics. Dr. Lynde has held
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`positions with the President’s Council on Wage and Price Stability, as well as the
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`Brookings Institution. As a consultant, Dr. Lynde specializes in the applied
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`economic, financial, and statistical analysis of complex business and regulatory
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`matters. Dr. Lynde has provided expert witness support in over 100 matters, and
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`he has been involved in over 300 patent matters. A full explanation of Dr.
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`Lynde’s qualifications is set forth in the Expert Stip. (Expert Stip., ¶¶ 14-22.)
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`The Court finds that Dr. Lynde is a qualified expert witness in the field of
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`economics as it relates to patent damages and remedies. (5/11/2015 PM Trial
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`Tr., Dkt. No. 166, at 53:24-54:54:14.)
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`[FF16] At trial, the Court heard testimony from the following expert witnesses called
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`by Defendants:
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`a. Dr. Eric Bretschneider is currently employed by EB Designs and Technology, a
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`consulting company in the LED industry. Dr. Bretschneider received a BSE in
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`chemical engineering from Tulane University in 1989, and he received his Ph.D.
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`in chemical engineering from the University of Florida in 1997. Following
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`completion of his doctoral work, Dr. Bretschneider was employed by companies
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`within the LED industry in various capacities, including as director of IP for a
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`publically-traded LED company. He is the inventor or named author on over 25
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`patents and publications, including LED patents relating to national security
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`matters. A full explanation of Dr. Bretschneider’s qualifications is set forth in the
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`Expert Stip. (Expert Stip., ¶¶ 23-30.) The Court finds that Dr. Bretschneider is a
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`qualified expert in the field of LED and semiconductor technology, including
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`packages. (5/12/2015 PM Trial Tr., Dkt. No. 168, at 119:23-120:5.)
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`b. Dr. Russell W. Mangum, III is a professor in the School of Business and
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`Economics at Concordia University in Irvine, California. He is also a Senior Vice
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`President at Nathan Associates, Inc. Dr. Mangum received his B.A. in economics
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`from California State University, Fullerton and his M.A. and Ph.D. in economics
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`from the University of Southern California. Dr. Mangum has experience in the
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`analysis of matters relating to commercial damages, including damages relating to
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`intellectual property matters, and he has provided opinions in cases involving lost
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`sales damages, reasonable royalties, and damages for unjust enrichment. A full
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`explanation of Dr. Mangum’s qualifications is set forth in the Expert Stip.
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`(Expert Stip., ¶¶ 31-39.) The Court finds that Dr. Mangum is a qualified expert
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`witness in the field of economic damages and remedies. (5/13/2015 PM Trial Tr.,
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`Dkt. No. 171, at 8:7-16.)
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`[FF17] At trial, the Court heard testimony from the following fact witnesses called by
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`Nichia:
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`a. Mr. Eric Swenson, Nichia America Corporation;
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`b. Mr. Todd Lynema, Nichia America Corporation;
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`c. Mr. Hiroto Tamaki, Nichia Corporation;
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`d. Mr. Tomohide Miki, Nichia Corporation;
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`e. Mr. Kenji Matsumoto, Nichia Corporation;
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`f.
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`Everlight Corporation (through its corporate designees pursuant to Fed. R.
`
`Civ. P. 30(b)(6); and
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`g.
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`Everlight Americas, Inc. (through its corporate designee pursuant to Fed. R.
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`Civ. P. 30(b)(6).
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`[FF18] At trial, the Court heard testimony from the following fact witnesses called by
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`defendants:
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`a. Mr. Bernd Kammerer, Everlight Americas, Inc.;
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`b. Mr. Ewing Liu, Everlight Electronics Co., Ltd.;
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`c. Mr. Allen Hsieh, Everlight Electronics Co., Ltd.;
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`d. Mr. Hirofumi Ichikawa, Nichia Corporation; and
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`e.
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`Nichia Corporation (through its corporate designees pursuant to Fed. R. Civ.
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`P. 30(b)(6).
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`C. Technology Overview
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`[FF19]
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`LEDs are used in a wide variety of applications, including: (i) LCD
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`backlighting applications, such as cell phones, laptop computers, and televisions; (ii) video
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`display applications, such as billboards and scoreboards; (iii) automotive applications, such as
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`interior and exterior lighting of a vehicle; and (iv) general lighting applications, such as
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`lightbulbs. (5/12/2015 AM Trial Tr., Dkt. No. 167, at 10:8-19.) LEDs are typically small in
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`scale with heights measuring 1 millimeter or less. (5/11/2015 AM Trial Tr., Dkt. No. 165, at
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`31:2-17.)
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`i. LED Package: Components
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`[FF20] A common configuration for an LED package is depicted below:
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`encapsulant
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`leads
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`housing resin
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`wire
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`LED die
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`[FF21]
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`The LED “package” includes the following individual parts: (i) the “leads,”
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`which are used to conduct the electrical current to the LED chip; (ii) the “resin housing,” which
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`is made out of a reflective resin and includes a recess in which the LED chip is placed; (iii) the
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`“LED chip” or “LED die” (about the size of a grain of salt), which is mounted in the recess
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`typically by using an adhesive material in a process known as die bonding; (iv) one or more
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`“bond wires” that connect the LED chip to the leads; and (v) an “encapsulation material” that
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`encapsulates the LED chip and protects it from the environment. (5/11/2015 AM Trial Tr., Dkt.
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`No. 165, at 31:23-32:22.)
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`ii. LED Packaging: Integrating Multiple Design Challenges
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`[FF22]
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`LED package design involves the simultaneous integration and
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`balancing of multiple design considerations, including electrical, optical, thermal, and
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`mechanical design challenges. (5/11/2015 AM Trial Tr., Dkt. No. 165, at 33:16-34:23.)
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`Multiple challenges must be addressed when designing an LED package: (i) electrical
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`design challenges: “We have to conduct a relatively high-current density through the
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`small LED chip and connect the LED chip to the leads;” (ii) optical design challenges:
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`“The intensities are very high, because the LED chip is very small and the power emitted
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`by the LED is quite high. And, therefore, we need to handle a very high-optical radiation
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`density;” (iii) thermal design challenges: “The LED chip inevitably creates heat, and this
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`heat needs to be conducted away;” and (iv) mechanical design challenges: “includes
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`protecting the LED chip from any external effect, such as moisture or mechanical
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`intrusion.” (5/11/2015 AM Trial Tr., Dkt. No. 165, at 33:16-34:17.) These multiple
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`requirements can be “contradictory” and can “pull the design in different directions.” See
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`(5/11/2015 AM Trial Tr., Dkt. No. 165, at 34:18-23); see also (5/13/2015 AM Trial Tr.,
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`Dkt. No. 170, at 107:8-108:2.)
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`II.
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`Person of Ordinary Skill in the Art
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`[FF23]
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`The field relevant to the inventions of the patents-in-suit is light emitting
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`diode and semiconductor technology, including packaging. (Stipulated Finding of Fact (Dkt. No.
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`132, Ex. 2), No. 86.)
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`[FF24] A person of ordinary skill in the art as of the respective June 2003 to
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`September 2008 priority dates of the Asserted Patents would have had: (1) a Ph.D. degree in
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`Applied Physics, Chemical Engineering, Electrical Engineering, Material Science, or a related
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`field, and approximately 3 years of practical experience in the field of light emitting diode and
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`semiconductor technology, including packaging; (2) a Master’s degree in Applied Physics,
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`Chemical Engineering, Electrical Engineering, Material Science, or a related field, and
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`approximately 5 years of practical experience in the field of light emitting diode and
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`semiconductor technology, including packaging; or (3) a Bachelor’s degree in Applied Physics,
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`Chemical Engineering, Electrical Engineering, Material Science, or a related field, and
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`approximately 10 years of practical experience in the field of light emitting diode and
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`semiconductor technology, including packaging. These descriptions are approximate, and a
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`higher level of education might make up for less experience, and vice versa. (Stipulated Finding
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`of Fact (Dkt. No. 132, Ex. 2), No. 86.)
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`III. Representative Products
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`[FF25] On May 10, 2015, the parties stipulated to “representative products.” See
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`(Stipulation Regarding Representative Products (Dkt. No. 158).) The parties agreed that each of
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`these representative products is “representative of the other accused Everlight products in the
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`same product series” set forth in Exhibits 2-10 of the Stipulation. (Id.) The representative
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`products are as follows:
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`(Id. at Exhibit 1.)
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`IV.
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`Evidence of Infringement
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`[FF26]
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`The evidence establishing that the representative products, and Defendants’
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`importation, offer for sale, and/or sale of such products, literally infringes the asserted claims of
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`Nichia’s Patents includes:
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`(1) samples of the products in the accused product series produced by Everlight;
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`(2) the Technical Analysis Reports compiled by laboratory personnel at IAL and TAEUS
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`(“IAL/TAEUS Reports”) for the representative products;
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`(3) the documents produced by Everlight relating to the accused product series; and
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`(4) Everlight admissions, including the 30(b)(6) deposition testimony of Everlight
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`relating to the accused product series and the Stipulated Facts.
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`(5/11/2015 AM Trial Tr., Dkt. No. 165, at 40:25-42:23.)
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`[FF27] Dr. Schubert reviewed an IAL/TAEUS Report for each representative
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`product. (5/11/2015 AM Trial Tr., Dkt. No. 165, at 42:12-15.) The IAL/TAEUS Reports
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`include optical and x-ray images of the products showing the exterior, interior, and cross-
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`sections of the products. (5/11/2015 AM Trial Tr., Dkt. No. 165, at 44:20-46:9); see, e.g.,
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`(PTX458 (IAL/TAEUS Report for the representative XI3030 product).)
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`V.
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`U.S. Patent No. 8,530,250
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`A. Summary of the ’250 patent
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`[FF28]
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` The ’250 patent is entitled “Light Emitting Device, Resin Package, Resin-
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`Molded Body, and Methods for Manufacturing Light Emitting Device, Resin Package and Resin-
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`Molded Body” and issued September 10, 2013. (Stipulated Findings of Fact (Dkt. No. 132, Ex.
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`2), No. 1.)
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`[FF29]
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`The’250 patent names Hirofumi Ichikawa, Masaki Hayashi, Shimpei Sasaoka,
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`and Tomohide Miki as the named inventors. (Stipulated Findings of Fact (Dkt. No. 132, Ex. 2),
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`No. 2.)
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`[FF30]
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`The earliest priority date for the asserted claims of the ’250 patent is
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`September 3, 2008. See (’250 patent, PTX004.)
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`[FF31]
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`The ’250 patent is assigned to Nichia Corporation. (Stipulated Findings of
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`Fact (Dkt. No. 132, Ex. 2), No. 3.)
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`[FF32]
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`The ’250 patent is discloses a “simple and low-cost method for
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`manufacturing, in a short time, multiple light emitting devices which has [sic] high adhesion
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`between a lead frame and a thermosetting resin composition.” See (’250 patent, col. 2 ll. 49-53.)
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`[FF33]
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`The ’250 patent provides an overview of the claimed inventions as follows:
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`Provided is a simple and low-cost method for manufacturing, in a short time,
`many light emitting devices wherein adhesiveness between a leadframe and a
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`thermosetting resin composition is high. The method . . . [includes:] a step of
`sandwiching a leadframe (21) provided with a notched section (21a) by an upper
`molding die (61) and a lower molding die (62); a step of transfer-molding a
`thermosetting resin (23) containing a light-reflecting substance (26), in a molding
`die (60) sandwiched by the upper molding die (61) and the lower molding die (62)
`and forming a resin-molded body (24) on the leadframe (21); and a step of cutting
`the resin-molded body (24) and the leadframe (21) along the notched section (21
`a).
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`(’250 patent, Abstract.)
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`[FF34] The features of the disclosed LED device include, for example, “a resin part
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`and a lead [that] are formed substantially in the same plane in an outer side surface, and . . . at
`
`least one surface of a bottom surface and an upper surface of a lead is plated and the outer side
`
`surface of the lead is not plated.” (’250 patent, col. 3 ll. 60-65.) “[O]ne of the key features of the
`
`patent is that the outer surface of the resin part and the lead are planar.” (5/11/2015 AM Trial
`
`Tr., at 35:17-24.)
`
`B. Asserted Claims of the ’250 patent
`
`[FF35] Claims 1, 7, 17, 19, and 21 of the ’250 patent are asserted in this case and are
`
`reproduced below:
`
`Claim 1 Claim Language
`
`Preamble A method of manufacturing a light emitting device, the method comprising:
`
`[a]
`
`[b]
`
`[c]
`
`[d]
`
`
`
`providing a lead frame comprising at least one notch;
`
`plating the lead frame;
`
`after plating the lead frame, providing an upper mold on a first surface of the plated
`lead frame and a lower mold on a second surface of the plated lead frame, and
`transfer-molding a thermosetting resin containing a light reflecting material in a
`space between the upper mold and the lower mold to form a resin-molded body;
`and
`
`cutting the resin-molded body and the plated lead frame along the at least one notch
`to form a resin package, the resin package comprising a resin part and at least one
`lead, and the cutting step being performed such that an outer surface of the resin part
`
`14
`
`IPR Page 14
`
`

`

`
`
`Case 2:13-cv-00702-JRG Document 193 Filed 01/25/16 Page 15 of 134 PageID #: 9386Case 2:16-cv-00246 Document 1-2 Filed 03/21/16 Page 16 of 135 PageID #: 57
`
`and an outer surface of the at least one lead are planar at an outer side surface of the
`resin package,
`
`[e]
`
`wherein the plated lead frame is cut so as to form an unplated outer side surface on
`the lead.
`
`
`
`Claim 7 Claim Language
`
`The method according to claim 1, further comprising: providing a light emitting
`element in a concave portion of the resin package,
`
`wherein the transfer-molding step forms a plurality of concave portions
`corresponding to the convex portions of the upper mold, each of the concave
`portions comprising an inner bottom surface at which a portion of the lead frame is
`exposed.
`
`[a]
`
`[b]
`
`
`
`Claim 17 Claim Language
`
`Preamble
`
` A light emitting device comprising:
`
`a resin package comprising a resin part and at least one lead,
`
`wherein an outer surface of the resin part and an outer surface of the at least one lead
`are planar at an outer surface of the resin package,
`
`wherein a plating is disposed on an upper surface and a lower surface of the at least
`one lead,
`wherein an outer side surface of the at least one lead is unplated, and
`
`wherein a portion of the resin part is disposed over a portion of the plating on the
`upper surface of the at least one lead.
`
`[a]
`
`[b]
`
`[c]
`
`[d]
`
`[e]
`
`
`
`Claim 19 Claim Language
`
`[a]
`
`The light emitting device according to claim 17, wherein the at least one lead
`comprises a step on a bottom surface or outer surface thereof.
`
`
`
`Claim 21 Claim Language
`
`
`
`15
`
`IPR Page 15
`
`

`

`
`
`Case 2:13-cv-00702-JRG Document 193 Filed 01/25/16 Page 16 of 134 PageID #: 9387Case 2:16-cv-00246 Document 1-2 Filed 03/21/16 Page 17 of 135 PageID #: 58
`
`Claim 21 Claim Language
`
`[a]
`
`The light emitting device according to claim 17, wherein the at least one lead
`comprises two or more different levels.
`
`C. Products Accused of Infringing the ’250 patent
`
`[FF36]
`
`The products accused of infringing the ’250 patent (the “’250 Accused
`
`Products”) include: (1) the XI3030 series products; (2) the XI3535 series products; (3) the 62-
`
`217D series products; (4) the 62-257D series products; (5) the 45-21S series products; and (6)
`
`lamps, luminaires, fixtures and other products incorporating those products. The results of the
`
`infringement analysis for each representative product discussed below extend to the other ’250
`
`Accused Products within the same product series. (Stipulations re Representative Products
`
`(“Rep. Prods. Stips.”), Ex. 1 to Dkt. No. 158, at 1.)
`
`[FF37]
`
`Everlight and/or Everlight Americas import into the United States, and sell
`
`and/or offer for sale in the United States, the ’250 Accused Products. (Stipulated Findings of
`
`Fact (Dkt. No. 132, Ex. 2), Nos. 5-9 (regarding sale of the XI3030, XI3535, and 45-21S series
`
`products); DTX415 (Revenue from Accused Everlight LED Products Sold in or Shipped to
`
`U.S.).)
`
`D. Construction of ’250 patent Claim Terms
`
`i. The Preambles of Claims 1 and 17 are Claim Limitations
`
`[FF38]
`
`In its Claim Construction Memorandum Opinion and Order (Dkt. No. 79), this
`
`Court determined that the preambles of claims 1 and 17 are claim limitations. (Claim
`
`Construction Order, Dkt. No. 79, at 53-54.) “[T]he entirety of the ’250 patent reveals that the
`
`preamble language relating to ‘light emitting device’ does not state a purpose or an intended use
`
`of the invention, but rather discloses a fundamental characteristic of the claimed invention that is
`
`properly construed as a limitation of the claim itself.” (Claim Construction Order, at 54 (“[T]he
`
`
`
`16
`
`IPR Page 16
`
`

`

`
`
`Case 2:13-cv-00702-JRG Document 193 Filed 01/25/16 Page 17 of 134 PageID #: 9388Case 2:16-cv-00246 Document 1-2 Filed 03/21/16 Page 18 of 135 PageID #: 59
`
`preamble language gives life, meaning and vitality to the claims by making it clear that claim 17
`
`is directed to a light emitting device and claim 1 is directed to a method for manufacturing a light
`
`emitting device.”).)
`
`ii. “Lead”
`
`[FF39] Claims 1, 17, 19, and 21 of the ’250 patent include the term “lead.” This
`
`Court construed “lead” as “the portion of the device that conducts electricity.” (Claim
`
`Construction Order, at 57.) Although a lead must conduct electricity, “this does not foreclose the
`
`recited ‘lead’ from performing other functions in addition to conducting electricity.” (Id.)
`
`iii. “A Portion of the Resin Part is Disposed Over a Portion of the Plating on the
`Upper Surface of the at Least One Lead”
`[FF40] Claim 17 of the ’250 patent requires that “a portion of the resin part is
`
`disposed over a portion of the plating on the upper surface of the at least one lead,” which was
`
`construed to mean “a portion of the resin part is located over a portion of the plating on the upper
`
`surface of the at least one lead.” (Claim Construction Order, at 64.) This Court rejected
`
`Defendants’ contention that claim 17 “allows for all of the resin part to be disposed over all of
`
`the plating on the upper surface of the at least one lead.” (Id. at 63-64 (“A portion is not ‘all’ as
`
`Defendants contend.”).)
`
`iv. “Notch”
`
`[FF41] Claim 1 of the ’250 patent requires providing a lead frame having at least one
`
`“notch.” This Court construed the term “notch” to mean “an opening that penetrates the lead
`
`frame.” (Claim Construction Order, at 66-67.)
`
`
`
`
`
`
`
`17
`
`IPR Page 17
`
`

`

`
`
`Case 2:13-cv-00702-JRG Document 193 Filed 01/25/16 Page 18 of 134 PageID #: 9389Case 2:16-cv-00246 Document 1-2 Filed 03/21/16 Page 19 of 135 PageID #: 60
`
`v. “Cutting the Resin-Molded Body and the Plated Lead Frame Along the at
`Least One Notch”
`[FF42] Claim 1 recites the step of “cutting the resin-molded body and the plated lead
`
`frame along the at least one notch,” which this Court determined should be given its plain and
`
`ordinary meaning. (Claim Construction Order, at 67-69.)
`
`vi. “Planar”
`
`[FF43] Claims 1 and 17 require that an outer surface of at least one lead and an outer
`
`surface of the resin part are “planar.” This Court construed “planar” to mean “in a substantially
`
`same plane.” (Claim Construction Order, at 69-72.) The construction of “planar” does not
`
`require that the “leads and outer surface of the resin package to be perfectly flat.” (Claim
`
`Construction Order, at 71.)
`
`E. Alleged Infringement of the Asserted Claims of the ’250 patent
`
`i. The XI3030 and XI3535 Series Products Contain Every Element of Claims 1
`and 7 of the ’250 patent
`
`[FF44]
`
`The manufacturing process used to produce both the XI3030 and XI3535
`
`series accused products is the same. (Stipulated Findings of Fact (Dkt. No. 132, Ex. 2), No. 12.)
`
`As such, these products are addressed together.
`
`Claim 1
`
`[FF45]
`
`The Court finds that all of the claim limitations of Claim 1 of the ’250 patent
`
`exist in and are met by the accused XI3030 and XI3535 series products. The reasoning and
`
`further factual findings underpinning such are discussed in further detail below.
`
`
`
`18
`
`IPR Page 18
`
`

`

`
`
`Case 2:13-cv-00702-JRG Document 193 Filed 01/25/16 Page 19 of 134 PageID #: 9390Case 2:16-cv-00246 Document 1-2 Filed 03/21/16 Page 20 of 135 PageID #: 61
`
`Preamble: A method of manufacturing a light emitting device, the method comprising
`
`[FF46]
`
`The parties agree that the process used to make the accused XI3030 and
`
`XI3535 series products is a method of manufacturing a light emitting device. (Stipulated
`
`Findings of Fact (Dkt. No. 132, Ex. 2), Nos. 11 and 12.)
`
`1[a] providing a lead frame comprising at least one notch
`
`[FF47]
`
`The process used to make the accused XI3030 and XI3535 series products
`
`includes the step of providing a lead frame comprising at least one notch (claim element 1[a]).
`
`[FF48] Defendants receive plated lead frames provided by their third party lead frame
`
`suppliers for the accused XI3030 and XI3535 series products. (Stipulated Findi

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