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`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
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`ANCORA TECHNOLOGIES, INC.
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`VS.
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`February 7, 2020
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`LG ELECTRONICS, INC., ET AL
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`*
`*
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`*
`* CIVIL ACTION NO. AU-20-CV-34
`SAMSUNG ELECTRONICS CO., LTD, *
` ET AL
`*
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`BEFORE THE HONORABLE ALAN D ALBRIGHT, JUDGE PRESIDING
`TELEPHONIC DISCOVERY HEARING
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`APPEARANCES:
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`For the Plaintiff:
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`For Defendant LG:
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`For Defendant Samsung:
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`Charles L. Ainsworth, Esq.
`Parker, Bunt & Ainsworth, P.C.
`100 East Ferguson, Suite 418
`Tyler, TX 75702
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`Andres Healy, Esq.
`Steven M. Seigel, Esq.
`Susman Godfrey L.L.P.
`1201 Third Avenue, Suite 3800
`Seattle, WA 98101
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`Elizabeth M. Chiaviello, Esq.
`Morgan Lewis and Bockius LLP
`1000 Louisiana Street, Suite 4000
`Houston, TX 77002
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`Melissa Richards Smith, Esq.
`Gillam and Smith, LLP
`303 South Washington Avenue
`Marshall, TX 75670
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`Jared Frisch, Esq.
`Covington & Burling LLP
`One CityCenter, 850 Tenth Street, NW
`Washington, DC 20001-4956
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`Court Reporter:
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`Kristie M. Davis
`United States District Court
`PO Box 20994
`Waco, Texas 76702-0994
`Proceedings recorded by mechanical stenography, transcript
`produced by computer-aided transcription.
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`Case 1:20-cv-00034-ADA Document 41 Filed 02/10/20 Page 2 of 20
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`(February 7, 2020, 3:00 p.m.)
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`THE COURT: Good morning. It's Alan Albright.
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`MS. MILES: Hi, Judge. It's Suzanne.
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`MR. AINSWORTH: Hello, Judge Albright.
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`THE COURT: Good afternoon.
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`MR. AINSWORTH: This is Charley Ainsworth and Andres Healy
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`for the plaintiff Ancora.
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`THE COURT: Good afternoon.
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`MR. FRISCH: Good afternoon. You have Jared Frisch of
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`Covington & Burling for defendant Samsung.
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`THE COURT: Okay. Anyone else that is going to be
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`talking?
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`MS. CHIAVIELLO: Good afternoon, Your Honor. This is
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`Elizabeth Chiaviello from Morgan Lewis on behalf of LG.
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`THE COURT: Okay. Good afternoon to you.
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`Anyone else?
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`Okay. I'm not sure why I'm here, but I'm happy to help.
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`Whoever is going to start, please feel free to go.
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`MR. HEALY: Thank you, Your Honor. This is Andres Healy
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`of Susman Godfrey on behalf of the plaintiffs. I'm happy to
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`report that we reached agreement with defendant on all but one
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`issue, and that one issue is what we're hoping to get Your
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`Honor's guidance on today.
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`THE COURT: Okay.
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`MR. HEALY: The issue is that the number of pages of
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`Case 1:20-cv-00034-ADA Document 41 Filed 02/10/20 Page 3 of 20
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`source code that plaintiffs -- I guess either parties would be
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`entitled --
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`THE COURT: Okay.
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`MR. HEALY: And I apologize. I'm getting a little bit of
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`feedback. So hopefully Your Honor can hear me.
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`THE REPORTER: This is Kristie. I'm having a hard time
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`hearing you. I'm the court reporter.
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`(Brief off-the-record discussion.)
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`MR. HEALY: Your Honor, plaintiff's position on the sole
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`issue in dispute is simple. We have received from Mr. Albright
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`what we understand to be the Court's model protective order or
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`default protective order, and plaintiff's preference is to
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`stick to the Court's default. That provides that we are
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`entitled, or I guess any party is entitled to 250 pages -- to
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`print 250 pages per accused architecture. That's what we'd
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`prefer to stick with. Defendant's position is they'd like to
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`change that language and instead limit plaintiffs to 250 pages
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`per chip set vendor.
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`So what that effectively means is that, if of the hundreds
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`of products at issue in this case, if they're all, for example,
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`equipped with a Qualcomm chip set, that we would be limited to
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`250 pages of printed code across all those products regardless
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`of whether they actually include different code, different
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`functionality or entirely different products.
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`And so just very simply, Your Honor, we have two reasons
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`Case 1:20-cv-00034-ADA Document 41 Filed 02/10/20 Page 4 of 20
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`why we ask the Court to reject defendants' request to depart
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`from the default. Number one, as plaintiffs have explained to
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`defendant, we understand the Court's limit of per accused
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`architecture to take into account the fact that different
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`products have different codes. As a result, we've told them,
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`look. If two or three or a hundred products all have the same
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`relevant code, we understand that the Court's default limits us
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`to 250 pages across all those products because they share the
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`same relevant architecture and code. We have no issue with
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`that. Frankly, we hope that's the case. If all the code is
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`the same, that makes our job a lot easier, and we frankly have
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`no interest in reviewing, much less printing duplicative code.
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`But defendants have told us that the code is likely not
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`the same, that different products and different chip sets may
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`have different code. And that leads me to number two, Your
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`Honor, is defendants also told us that the code is going to be
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`the best source of proof in this case. In fact, Samsung's
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`counsel told us during the meet and confer process that there's
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`not a whole lot of technical documents that go into the details
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`of the functionality at issue and that they think that we're
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`going to have to get those details from the code.
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`So to limit us to 250 pages of code across so many
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`different products, so many different chip sets seems to us to
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`be an unreasonable limitation, and we prefer to remain with
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`what the Court has established as a -- rule.
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`Unless the Court has any questions, that's my -- I'm done
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`for now, Your Honor.
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`THE COURT: Okie-dokie.
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`MR. FRISCH: Your Honor, if I may, this is Jared Frisch
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`from Covington for defendant Samsung.
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`THE COURT: Yes, sir.
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`MR. FRISCH: Yes. So to just address a few of those
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`points, you know, we do think there is going to be, you know,
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`source code that needs to be produced, and we do think that
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`it's going to be relevant to the accusations that plaintiffs
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`have made.
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`The issues that we see, Your Honor, with the language that
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`Ancora is asking for is that in the present context, we think
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`of that kind of giving Ancora free reign and the real upper
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`limit on the amount of code that's going to be printed. And
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`what we would like in the present instance is just some sort of
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`clarity on the presumptive limit for the time being.
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`Now, as we have said to Ancora a few times in meet and
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`confers, we'd be happy, you know, after they've reviewed the
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`code to discuss any reasonable increases in the number of pages
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`that would be necessary. But we're not sure right now what's
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`really being staged as the number of accused architectures.
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`As Mr. Healy, I think, stated, there's hundreds of accused
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`products in these cases, the two cases. In the infringement
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`contentions we've only received charts -- you know, one set of
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`Case 1:20-cv-00034-ADA Document 41 Filed 02/10/20 Page 6 of 20
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`charts for mobile devices, one set of charts for television.
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`We had originally said, well, maybe it made sense to give
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`you 250 pages of source code for the televisions and 250 pages
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`of source code for the mobile devices. Our understanding is
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`that they believe that there's more than just those two accused
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`architectures and that they probably lie somewhere in between
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`that set of sequence, the number of accused products.
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`But it's not clear to us how many they believe there are
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`and essentially what that multiplier is for the 250 pages.
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`That's why we then came back with the offer that Mr. Healy
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`discussed that, well, maybe it makes sense for us to give
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`250 pages per chip set vendor.
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`And the reason that's important, Your Honor, is that there
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`are third parties who have code that's going to be implicated
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`in this case. And we are going to need to receive permission
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`from them in order to produce their code. And we've already
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`started that process of reaching out to them; however, as you
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`can imagine, they want to see a PO, and they're going to want
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`clarity on this issue as well.
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`So that's why we're trying to find kind of an upper bounds
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`here for the interim of how much code can be printed, with the
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`understanding, of course, that the parties could work together
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`if necessary to provide more code later.
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`THE COURT: Anyone else?
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`MR. HEALY: Your Honor, this is Mr. Healy. I'm happy to
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`respond, but I defer to LG's counsel if they have anything to
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`say in the interim.
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`MS. CHIAVIELLO: This is Elizabeth Chiaviello for LG.
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`We're aligned with Samsung on this issue.
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`THE COURT: Okay. And I'm happy to hear again from the
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`plaintiff.
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`MR. HEALY: Thank you, Your Honor. This is Mr. Healy,
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`Susman Godfrey, on behalf of the plaintiff. I just want to
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`briefly respond to two points. Number one, we believe that the
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`Court's default does provide the objectives clarity that
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`defendants state that they're seeking. The requirement is per
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`accused architecture. We've explained to defendants, and I'm
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`happy to put it on the record now again, that what we
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`understand that to be is per relevant code base.
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`You know, again, if the two products share the same code,
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`that's one accused architecture. There's no need for us to
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`double up on pages for what is effectively identical code. If
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`multiple products have the same chip set vendor and those chip
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`sets also have the same code, again, we don't need duplicative
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`codes. But the tying the number of pages to the chip set
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`vendor has no correlation to what that code actually is, has no
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`correlation to the distinctions between the code, and it's
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`really just an arbitrary number -- an arbitrary measuring
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`stick.
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`We've told defendants, and we're happy to say it to them
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`again, if two versions of a product share the same code, then
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`that's one architecture. That's an objective measure. And
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`again, I frankly am uninterested in differences in code that
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`aren't related to our architecture. We provided, you know,
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`hundreds of pages of claim charts. I don't think there's any
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`real dispute as to what the accused functionality is.
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`And, you know, our understanding of the Court's default
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`and what we're happy to agree to is that if the code is the
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`same, then there's no need for duplication.
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`THE COURT: Well, let me tell you guys how I see the
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`world, which I guess is important to you. You know, the
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`limitation of pages is obviously to make sure that the LG's and
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`Samsung's and Qualcomm and other third parties of the world who
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`are already skitzy about -- I'm not sure how -- let me repeat
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`that because I'm not sure my court reporter can put down
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`"skitzy," but who are already concerned about y'all getting one
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`page of it and leaving. You know, they feel like there has to
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`be a limit, and I get that.
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`And so the 250 is a truly, truly arbitrary effort to, you
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`know, get plaintiffs enough and keep companies from worrying
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`it's too much. And so it's very arbitrary.
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`So let me start with the plaintiff here. If I were to say
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`it's 250 pages per architecture, would that work for you?
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`MR. HEALY: Per architecture, Your Honor?
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`THE COURT: Yes, sir.
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`MR. HEALY: Yes. We're more than happy with the Court's
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`default which you just expressed, Your Honor.
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`THE COURT: Well, I thought that was -- and maybe I missed
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`it. Was -- and so it's the defendants that want 250 per chip?
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`And is that the limitation here?
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`MR. FRISCH: Yes, Your Honor.
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`THE COURT: Okay. Okay. So let me start over. Let me
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`put this burden on -- let me put the burden on the defendants.
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`Let me see -- let me just start off with this. What is it that
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`the defendant thinks would be -- what would you guys want it to
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`be?
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`MR. FRISCH: So the last offer that we had made, Your
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`Honor, was that we would allow 250 pages to be printed per
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`vendor that's providing chip sets in the accused product, under
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`the theory that, you know, the code from a particular vendor
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`would likely be very similar.
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`THE COURT: Okay. Now, let me -- so let me ask you this,
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`because you're concerned that you're the one who's probably
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`going to be dealing with the third parties. Is it -- is it the
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`defendant that's going to be dealing with a third-party vendor
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`to make arrangements to get the source code, or is the
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`plaintiff going to be working directly with the third-party
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`vendor?
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`MR. FRISCH: Your Honor, I think it may depend on the
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`circumstances. In the present circumstances, at least for
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`Samsung, we have already collected certain code that has
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`third-party code in it, and we have already started working
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`with the third parties to try to get, you know, permission.
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`And they would like to see it. So we've been talking to them
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`about that.
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`There may be those that come from third parties that we
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`don't have in our possession that'll come into play in this
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`case later on. At that point I imagine plaintiffs might be
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`reaching out to them.
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`THE COURT: So if you tell -- here's my concern: So if
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`you tell third-party X that it's going to be 250 pages per chip
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`and the plaintiff needs more, what do we do?
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`MR. FRISCH: I think -- so for a particular party, if they
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`say that they need more from that vendor, I think we would have
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`to go back to that vendor to discuss. I'm concerned that in
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`the present instance they might -- you know, once we put the PO
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`in, if it's too ambiguous at this -- they're going to try to
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`come in with lots of different amendments, which is, you know,
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`a possibility either way. But we're trying to get clarity for
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`them so that they don't have to request too many amendments to
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`deal with the first instance.
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`THE COURT: Well, but you're really -- you're playing my
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`thing out, which is, I'm -- I feel a little bit like what we're
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`doing is kind of a bait and switch with them. I don't mean
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`this pejorative. I've been in your shoes. But I feel like if
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`I say 250 pages per chip and the plaintiff needs more and even
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`if you agree it needs more, then we're going to be revisiting
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`this, and what do we do then?
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`MR. FRISCH: Yeah. I think we would have to revisit it
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`with that particular vendor at that point, if they needed more.
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`And just to clarify one point, Your Honor, our proposal
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`had been 250 pages for that vendor --
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`THE COURT: Okay.
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`MR. FRISCH: -- per chip.
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`THE COURT: Well, in that case it's even a little more
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`strict then, right? I mean, it's even a smaller universe that
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`the plaintiff is going to have access to then, right?
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`MR. FRISCH: Well, yeah, for printing. They'll have
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`access to the whole universe of code to review obviously.
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`THE COURT: So here's where I'm headed on this: I don't
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`really care at one level what the number of pages is. And what
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`I mean by that is, I know the plaintiff's firm. They're not
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`going to, in my opinion, take any more pages of anything than
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`they need to have. Now, I know that doesn't satisfy anyone on
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`the defendants' side, but what I'm trying to figure out here
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`is -- and so I could on the one hand -- for example, if it's
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`Samsung's stuff or it's LG's stuff directly, you know, I could
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`say to the plaintiff, I'm going to meet you at 50 pages, and if
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`you need more, you know, ask defense counsel, and if they won't
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`give it to you, contact me, and if you're being reasonable,
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`I'll let you have more. You know, that's about a 15-minute --
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`that gets it solved in about 15 minutes.
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`What I'm trying to figure out here is -- and I'm going to
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`really need the defendants' help here, is what is the right
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`amount to guarantee to the plaintiff -- I get that they're
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`going to have access to all of it, but what is -- what is the
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`way to protect the plaintiff if they could convince me that
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`they needed more than whatever the number is versus whatever
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`the unit is? What is -- what gives the plaintiff comfort and
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`me comfort that that won't seriously delay the case and delay
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`the plaintiff's ability to get the information? And by get it,
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`I mean be able to take copies of it.
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`MR. FRISCH: Sure. I mean, I think it's that we're also
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`obviously willing to be as reasonable as we can. I mean, I
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`think part of the problem is the issue of whether or not they
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`will need more code beyond the limit. I think it could come up
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`in both proposals, to be honest.
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`I mean, under the 250 accused architecture, if they define
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`architecture in a certain way and they've gone above that with
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`respect to one of the third parties, I think we'd find
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`ourselves in the same situation where we would have to go back
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`to that third party if they need more code.
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`THE COURT: Okay. But -- I get that, but what I'm saying
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`is, is you guys are the ones who are trying to persuade me to
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`be more restrictive than what I am in the default order. And
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`so now to obtain that, I need to know what we're doing to make
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`sure -- not with you guys. Not with Samsung and not with LG
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`because those are companies I have direct power over -- not
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`that I even need to exercise it, but, I mean, if I tell you
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`that they've got to do something, I'm not going to worry that
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`that will take very long for you to tell your clients what
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`they've got to do.
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`Again, if we're talking about restricting the plaintiff's
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`ability to have this -- to be able to get pages of this
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`information, what -- how do we do that in a way that the third
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`party -- if we have to go back and tell them it's subsequently
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`different, I want to avoid that. I don't want to -- you know,
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`I could make it a million, and then there'd be no problem
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`because it's not going to -- you know. But I'm struggling to
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`figure out what the right number and unit size is to make sure
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`that a third party can't -- and maybe what you can represent on
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`behalf of Samsung is that if you were to -- that you feel that,
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`in your opinion and having worked with these third parties and
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`given their relationship with Samsung or LG, that they would be
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`highly likely to very quickly exceed whatever I ordered they
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`do, then we may not have a problem, and we can just really try
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`and figure out the number and the units right now.
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`If we can't, if you can't make that representation, then
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`I'm reluctant to change the default order.
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`MR. FRISCH: I don't know that I can make that
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`representation on behalf of all the third parties today. I
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`mean, I can tell you that we've been in touch with the relevant
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`third parties and that they have been, you know, extremely
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`responsive.
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`I think they're going to want -- all of them have, you
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`know, currently objected obviously to providing source code
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`without a protective order, and they're going to want to see
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`whatever gets ruled on. Our concern actually was with the
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`default language, that they would come back to us and say that
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`it's not clear to them what an accused architecture is.
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`And that's our concern as well, is we're not sure in the
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`present context what is going to differentiate one accused
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`architecture from another. You know, Mr. Healy talked about
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`relevant source code basis, but we're not clear as to what kind
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`of changes between the codes he's going to -- architecture.
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`MR. HEALY: Your Honor, this is Mr. Healy.
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`THE COURT: Yes, sir.
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`MR. HEALY: I apologize.
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`THE COURT: No. I was going to ask you to chat, please.
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`MR. HEALY: Thank you, Your Honor. Again, Mr. Healy on
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`behalf of Ancora. And I hope we maybe can have two quick
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`solutions to the problems the Court has raised.
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`Again, number one, as far as an objective measure, to
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`counsel's point, we frankly have -- and again I'll tell you on
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`the call certainly are more amenable to a more restrictive
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`Case 1:20-cv-00034-ADA Document 41 Filed 02/10/20 Page 15 of 20
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`limit than just per chip set, per chip set vendor with respect
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`to the responses limited. But if it's better for defendants if
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`we agree to per chip set and per the accused architecture,
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`we're happy to make that compromise.
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`Number two, Your Honor, with respect to what other
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`procedures are in place that would allow someone to make an
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`objection or raise an issue if, you know, they believe we're
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`printing excessive code, the agreed portions of the protective
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`order that we have negotiated with defendants allows defendants
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`or any other third party, frankly, that if they believe, even
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`if we're within the 250 page limit, that we're being excessive
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`or that we're printing code that we shouldn't or printing code
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`for an improper purpose, even within the 250 page limit,
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`they're entitled to object and raise an issue.
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`And the -- what I am concerned about is that we would send
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`a code reviewer to review code. They would be there. They'd
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`be reviewing code, and then if an issue arises because we're
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`limited to some arbitrarily small number, that in order to get
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`the code, we'd have to have a dispute with Your Honor. We'd
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`then have to go back. We'd have to print the code. There
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`could be all the issues Your Honor noted about third parties --
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`you know, a bait-and-switch scenario; whereas, the current
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`procedures in the Court's default order already provide for
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`these. We have a default limit of 250 pages. We can agree
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`that that would be per chip set if that's what defendants
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`Case 1:20-cv-00034-ADA Document 41 Filed 02/10/20 Page 16 of 20
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`prefer because of Your Honor's default.
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`And then if there's an issue before we'd be able to get
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`the code but we would have already been able to print it, it'd
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`be ready and waiting, they can file -- you know, whoever has a
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`concern can file -- can raise it with the Court, and the Court
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`can address it.
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`But it avoids that situation that's misleading the third
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`party. It avoids that situation of having a very interrupted
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`process that's not efficient and not cost effective for anyone.
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`THE COURT: I'll tell counsel for the defendant, it does
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`make -- and I know -- look. It's easy for me to say because
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`you're the ones who have got to hang up and talk to your
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`clients and the third parties and explain what a crazy judge in
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`Waco is doing to you and also, you know, try and talk to third
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`parties. What does make sense to me -- and, again, I've talked
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`about it sort of in the sense that if the plaintiffs needed
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`more, I would be available. I can tell you -- and it may mean
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`nothing to your client, but, you know, I tend to favor the
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`proposal that was just made of sticking with the default of the
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`protective order. But certainly I think you can represent to
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`your clients that if they have a specific issue with anything
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`that is being done by the plaintiffs in terms of the amount of
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`what they want to do, I think you can represent to them, as I
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`showed today that -- I mean, I think you guys contacted the
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`Court today and said, we have an issue, and I was able to take
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`Case 1:20-cv-00034-ADA Document 41 Filed 02/10/20 Page 17 of 20
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`care of it literally on the same day. And so far within about
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`a 24-hour time period, I've been able to do that the entire
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`time I've been on the bench. And that's probably what I would
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`prefer to do here, is keep things as they are but make sure
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`that you're able to give your clients that comfort.
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`And I'll just say I'm -- I don't -- I hope I'm not
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`lecturing to the plaintiff's lawyer. Certainly I don't mean to
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`lecture anyone. But, I mean, I'm putting all this on the
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`record so that were there to be an issue down the road, you
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`know, defense counsel -- you know, defense counsel can show
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`that I've just said this to the third parties and their clients
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`and also -- and that way, again, if there's any problem with --
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`before the plaintiffs would be allowed to take -- you know, do
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`anything that would upset the third parties, they would have
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`to -- the third parties would have an opportunity for me to
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`decide whether that was okay or not.
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`MR. FRISCH: Thank you, Your Honor. We appreciate that
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`clarification. And after the protective order is entered, you
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`know, we would be -- we would obviously share that with the
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`third parties, and then I think they would independently raise
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`any concerns that they have if they have them.
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`THE COURT: Well, I'm sorry if I interrupted you. I
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`didn't mean to. But part of the reason I just said all that is
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`I would be happy, you know, for you guys to get a copy of this
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`transcript, you know, and be able to actually, you know,
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`Case 1:20-cv-00034-ADA Document 41 Filed 02/10/20 Page 18 of 20
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`provide it to those folks and make it clear they -- you would
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`also have to make sure they know that -- I mean, I'm sure they
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`have these experiences where they have these problems and
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`there's just no one -- you know, there's no one in my seat who
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`is willing to give them any relief if they feel they need
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`relief. And so, you know, if that would help, or you can just
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`tell them. I have -- well, actually, it's been a million
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`years. I mean, I actually, you know, represented Samsung, you
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`know, forever ago, and so, you know, I have some understanding
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`of, you know, what everyone's dealing with. And that's what
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`I'm trying to do is give you guys some cover to let them know
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`that they'll be protected in this process as well.
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`MR. FRISCH: Thank you, Your Honor. We appreciate that.
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`THE COURT: So that -- you know, basically I'm okay with
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`the default. Is there anything else we needed to take up?
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`MR. HEALY: This is Mr. Healy on behalf of Ancora. No,
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`Your Honor. Thank you.
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`THE COURT: Okay. Anything on behalf of the defendants?
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`MR. FRISCH: Nothing else on behalf of Samsung, Your
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`Honor.
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`THE COURT: And LG?
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`MS. CHIAVIELLO: Nothing, Your Honor.
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`THE COURT: Okay. Well, I sure -- I hope you guys have a
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`wonderful weekend, and I hope -- if y'all need me, just give me
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`a holler.
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`Case 1:20-cv-00034-ADA Document 41 Filed 02/10/20 Page 19 of 20
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`MR. HEALY: Thank you, Your Honor.
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`MR. FRISCH: Thank you, Judge.
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`(Hearing adjourned at 3:27 p.m.)
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`Case 1:20-cv-00034-ADA Document 41 Filed 02/10/20 Page 20 of 20
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`UNITED STATES DISTRICT COURT )
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`WESTERN DISTRICT OF TEXAS
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`)
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`I, Kristie M. Davis, Official Court Reporter for the
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`United States District Court, Western District of Texas, do
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`certify that the foregoing is a correct transcript from the
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`record of proceedings in the above-entitled matter.
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`I certify that the transcript fees and format comply with
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`those prescribed by the Court and Judicial Conference of the
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`United States.
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`Certified to by me this 10th day of February 2020.
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`
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`
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`/s/ Kristie M. Davis
`KRISTIE M. DAVIS
`Official Court Reporter
`800 Franklin Avenue, Suite 316
`Waco, Texas 76701
`(254) 340-6114
`kmdaviscsr@yahoo.com
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