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`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`BEFORE THE HONORABLE JAMES DONATO, JUDGE
`
` VS.
`
` Plaintiff,
`
`LARGAN PRECISION COMPANY, LTD., )
` )
` )
` )
` ) NO. 20-cv-06607 JD
` )
` )
`ABILITY OPTO-ELECTRONICS
`TECHNOLOGY COMPANY, LTD., et al., )
` ) San Francisco, California
` Defendants. )
` )
`___________________________________)
`
` Thursday, January 7, 2021
`
`TRANSCRIPT OF PROCEEDINGS
`
`APPEARANCES: (By Zoom Webinar)
`
`For Plaintiff:
`
` FISCH SIGLER LLP
` 5301 Wisconsin Avenue NW
` Fourth Floor
` Washington, D.C. 20015
` BY: ROY WILLIAM SIGLER, ESQ.
` ALAN M. FISCH, ESQ.
` JEFFREY M. SALTMAN, ESQ.
` LISA N. PHILLIPS, ESQ.
`
`For Defendant HP:
`
` MAYNARD COOPER & GALE, LLC
` 600 Montgomery Street
` Suite 2600
` San Francisco, California 94111
` BY: SASHA G. RAO, ESQ.
`
`Reported By: BELLE BALL, CSR 8785, CRR, RDR
` Official Reporter, U.S. District Court
`
`(Appearances continued, next page)
`
`AOET, Ex. 1018
`
`
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`BEFORE THE HONORABLE JAMES DONATO, JUDGE
`
` VS.
`
` Plaintiff,
`
`LARGAN PRECISION COMPANY, LTD., )
` )
` )
` )
` ) NO. 20-cv-06607 JD
` )
` )
`ABILITY OPTO-ELECTRONICS
`TECHNOLOGY COMPANY, LTD., et al., )
` ) San Francisco, California
` Defendants. )
` )
`___________________________________)
`
` Thursday, January 7, 2021
`
`TRANSCRIPT OF PROCEEDINGS
`
`APPEARANCES: (By Zoom Webinar)
`
`For Plaintiff:
`
` FISCH SIGLER LLP
` 5301 Wisconsin Avenue NW
` Fourth Floor
` Washington, D.C. 20015
` BY: ROY WILLIAM SIGLER, ESQ.
` ALAN M. FISCH, ESQ.
` JEFFREY M. SALTMAN, ESQ.
` LISA N. PHILLIPS, ESQ.
`
`For Defendant HP:
`
` MAYNARD COOPER & GALE, LLC
` 600 Montgomery Street
` Suite 2600
` San Francisco, California 94111
` BY: SASHA G. RAO, ESQ.
`
`Reported By: BELLE BALL, CSR 8785, CRR, RDR
` Official Reporter, U.S. District Court
`
`(Appearances continued, next page)
`
`AOET, Ex. 1018
`
`
`
`APPEARANCES, CONTINUED:
`
`For Defendant Ability Opto-Electronics Technology Co., Ltd.:
` JONES DAY
` 2727 North Harwood Street
` Dallas, Texas 75201
` BY: KEITH B. DAVIS, ESQ.
`
` JONES DAY
` 555 California Street
` 26th Floor
` San Francisco, California 94104
` BY: THARAN GREGORY LANIER, ESQ.
`
`Also Present:
`
` CHIA-WEN LEE, ESQ.
`
`Reported By: BELLE BALL, CSR 8785, CRR, RDR
` Official Reporter, U.S. District Court
`
`AOET, Ex. 1018
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`Thursday - January 7, 2021
`
` 10:12 a.m.
`
`P R O C E E D I N G S
`
`THE CLERK: Okay. Calling Civil 20-6607, Largan
`
`Precision Company, Ltd. versus Ability Opto-Electronics
`
`Technology Company, Ltd.
`
`Counsel for the plaintiff?
`
`MR. SIGLER: Good morning, Your Honor. This is Bill
`
`Sigler of Fisch Sigler on behalf of Largan Precision. And
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`today, Your Honor, I'm also joined by Ms. Chia-Wen Lee,
`
`Largan's in-house counsel who is joining us from Taichung
`
`City, Taiwan, as well as my colleagues, Alan Fisch, Jeff
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`Saltman and Lisa Phillips.
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`THE CLERK: Counsel for the defendant?
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`MS. RAO: This is Sasha Rao with Maynard Cooper &
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`Gale in San Francisco, counsel for HP, Inc.
`
`MR. DAVIS: Good morning, Your Honor. This is Keith
`
`Davis of Jones Day for Ability. And also with me in the
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`gallery is my partner Greg Lanier.
`
`THE COURT: Okay. All right.
`
`So, apparently took some effort, but you are now in the
`
`Northern District. So you are going California-ize your case.
`
`So yes, all of our local rules are going to apply. We're going
`
`to get back on the California track here.
`
`So here's what I would like you to do. Oh. So, now,
`
`we're waiting for IPR institution decisions that are coming up
`
`AOET, Ex. 1018
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`in a couple of months here, Mr. Sigler?
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`MR. SIGLER: That's correct, Your Honor. One of the
`
`defendants, AOET, has filed IPR petitions on three of the four
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`patents here. There's -- the fourth patent, there's been no
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`IPR petition filed on. And the statutory time bar for filing
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`one is passed.
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`Decisions on those IPRs, on the first two are expected by
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`February 23rd, and on the third one it is expected by
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`March 18th.
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`THE COURT: Okay. And for the three that have a
`
`petition pending, it's all the claims in suit would be taken
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`up by the PTAB, if they grant it?
`
`MR. SIGLER: Your Honor, that's the case for two of
`
`the patents. On the third patent, there is one claim that is
`
`not covered, is my understanding.
`
`THE COURT: Okay. All right. Okay. So, I don't
`
`stay pending institution decisions. But I do take a good look
`
`at a stay after IPR is instituted.
`
`I'll tell you, I'll tip my hand a little bit, because I
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`think it's going to streamline your case management. If PTAB
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`takes up all of the claims in two those patents and most of the
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`third patent, I think the odds of stay are fairly high. I'm
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`not guaranteeing it, but I think it's fairly likely. So keep
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`that in mind as you work your way through the next 90 days.
`
`What I would like you to do is submit a case management --
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`AOET, Ex. 1018
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`proposed case management order, based on our local patent
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`rules. Things that are done should be done. Now, I'm going
`
`footnote claim construction because we're going to talk about
`
`that in a minute. But everything else should be done.
`
`I know the Eastern District of Texas patterned their local
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`rules on ours, but they're sufficiently different that we're
`
`going to -- we're going to comply with our local rules.
`
`Please, make sure you read my standing orders on discovery
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`and patent cases, as well. All right? So you've got factor
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`that in. So, factor that in to the patent local rules.
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`Now, give yourself some time for discovery. You know,
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`give yourself six or eight months.
`
`I guess you've all done -- there's something that happens
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`in Texas where you voluntarily share things, and you haven't
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`done any RFPs, but we don't do that out here as much. So give
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`you some time to finish discovery, and get that done.
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`You know, with respect to claim construction, I am not
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`willing to tie my hands to what happened in the Eastern
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`District. So you all need to go back -- I know it's going to
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`be a little more work, but you should go back and work out a
`
`new claim construction process.
`
`The tutorial, by the way, is an essential part of my
`
`handling of a claim construction, particularly in cases like
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`this. And I need to have an interactive tutorial. You know,
`
`canned films are not going to do it for me.
`
`AOET, Ex. 1018
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`So Largan, you're the plaintiff. You've got the burden of
`
`proof. You're going to have to work it out. I know Taiwan is
`
`far away. But, you know, one possibility is -- and this is
`
`what I've explored in other cases -- you fly everybody to
`
`Hawaii, which is a three-hour time difference, and they can do
`
`their presentation from there.
`
`Or, you know, hopefully by the time we get to claim
`
`construction which I'm expecting will be probably at the -- you
`
`know, after discovery closes in six or eight months,
`
`international air travel and in-person court proceedings will
`
`be back on deck.
`
`So you can have plenty of opportunities, I think, to get
`
`it done in person, either virtually, real-time, or in my
`
`courtroom. But I'm just telling you now, prerecorded films and
`
`videos are not going to do it. That will not be acceptable.
`
`Okay? And that goes for the tutorial as well as for the claim
`
`construction on the presentations.
`
`All right. So, the short message is I don't want you to
`
`start from ground zero, but -- you've got a year's worth of
`
`litigation already, but you may be starting from ground four.
`
`Okay? Anything else I can help you with today,
`
`Mr. Sigler?
`
`MR. SIGLER: Your Honor, just a point of
`
`clarification.
`
`I understand Your Honor's order to apply to, for example,
`
`AOET, Ex. 1018
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`the discovery order, the protective order, and the ESI order
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`that we previously agreed to in Texas.
`
`You'd like the parties to get together and --
`
`THE COURT: Oh. You know, if they conform to what we
`
`require out here, that's fine. If they need to be amended in
`
`some way, then you should do that.
`
`MR. SIGLER: Okay. Understood, Your Honor.
`
`Understood.
`
`And then, in terms of claim construction, Your Honor, is
`
`Your Honor going to set a hearing date for that, that we should
`
`key off of?
`
`Or --
`
`THE COURT: Well, you're going to do that it in the
`
`proposed case management order. Okay? So you lay all that
`
`out, and I'll take a look at it. I don't think you'll have to
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`come back in; I'll just probably do it on the papers.
`
`But you make your proposal there, and I'll take it from
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`there, and see what I can -- where I can put you in.
`
`MR. SIGLER: Okay. Understood, Your Honor. Thank
`
`you.
`
`today?
`
`THE COURT: Okay. Defendants? Anything else for
`
`MS. RAO: This is Sasha Rao for HP, Your Honor.
`
`Thank you. We agree to follow the Northern District rules and
`
`this Court's orders.
`
`AOET, Ex. 1018
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`THE COURT: Okay. You don't really have a choice,
`
`but thank you for accepting it.
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`Okay. Mr. Davis, anything to add?
`
`MR. DAVIS: No, Your Honor. Keith Davis for Ability,
`
`and we have nothing for Ability today. Thank you for --
`
`THE COURT: Okay. I'll tell you what. Why don't you
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`get that case management order to me, say, two weeks from
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`today. Okay?
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`And promptly advise me of any PTAB developments. So I
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`would expect to hear in a couple of weeks I guess, eight weeks
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`or so, about the first tranche. And then the second one after
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`that. Okay? All right.
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`Now, Mr. Sigler, what are you doing for settlement? Have
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`you decided on private ADR? You know, Magistrate Judge? Just
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`party to party?
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`What's happening on that end?
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`MR. SIGLER: Sure, Your Honor. Happy to address
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`that.
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`The parties have stipulated to proceed with private
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`mediation. And --
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`THE COURT: Have you picked someone?
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`MR. SIGLER: -- Largan -- Largan and AOET have
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`engaged in a half-day of mediation with Judge Gonzalez,
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`retired Judge Gonzalez from the Southern District.
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`And we --
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`AOET, Ex. 1018
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`THE COURT: Southern District of Texas? Or
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`California?
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`MR. SIGLER: California, Your Honor. I'm sorry.
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`THE COURT: Oh, okay. All right.
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`MR. SIGLER: And Largan and HP haven't had
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`discussions about a particular mediator, or scheduling that,
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`at this point.
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`THE COURT: Well, in two weeks you should designate
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`your ADR decision. Okay? Everybody, including HP.
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`So if you want a Magistrate Judge -- and they are a scarce
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`and precious resource, but in a case of this sort, I'm happy to
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`consider it. So if you'd like to do that, you let me know.
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`Otherwise, you designate the name of the person that
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`you're going to go see privately. It's not going to be enough
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`just to say: We'll do it privately. You need to retain
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`someone. Particularly these days, because everybody's ADR
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`schedules, as I understand it from my friends in the business,
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`are exploding, and it's kind of hard to get time and to get
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`people lined up.
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`So let's have ADR designation -- I mean, I would assume it
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`would be one person. But if you want to do it separately for
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`some reason, I need both names. And separately, by defendant.
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`Okay?
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`All right. I think that does it. Thanks very much.
`
`MR. SIGLER: Thank you, Your Honor.
`
`AOET, Ex. 1018
`
`
`
`MR. DAVIS: Thank you, Your Honor.
`
`MS. RAO: Thank you.
`
` (Proceedings concluded)
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`AOET, Ex. 1018
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`
`
`CERTIFICATE OF REPORTER
`
` I, BELLE BALL, Official Reporter for the United States
`
`Court, Northern District of California, hereby certify that the
`
`foregoing is a correct transcript from the record of
`
`proceedings in the above-entitled matter.
`
` /s/ Belle Ball
`
`Belle Ball, CSR 8785, CRR, RDR
`
`
`Thursday, January 7, 2021
`
`AOET, Ex. 1018
`
`
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