Professional Documents
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UNITED STATES DISTRICT COURT
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Plaintiff,
vs.
TBD
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22 Honda Motor Co., Inc. and Honda of America Mfg., Inc. (collectively Honda),
23 Nissan North America, Inc. (Nissan), Mitsubishi Motors North America, Inc.
24 (Mitsubishi), Mazda Motor of America, Inc. (Mazda), Subaru of America, Inc.
25 (Subaru), Kia Motors America, Inc. (KMA), BMW of North America, LLC
26 (BMWNA), Mercedes-Benz USA, LLC (Mercedes), Volkswagen Group of
27 America, Inc. (VWGoA), Bentley Motors, Inc. (Bentley), Jaguar Land Rover
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Case No. 2:14-cv-02454-JAK (JEMx)
JOINT POST-MARKMAN REPORT
1 North America, LLC (JLRNA), and Porsche Cars North America, Inc. (PCNA)
2 (collectively, Defendants) hereby submit their Joint Post-Markman Report.
3 I.
Preliminary Statement
This joint report is submitted pursuant to the Courts prior orders in this
Mediation Status
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A.
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In the parties December 19, 2014 joint reports, the parties announced that
Plaintiffs Statement
26 mediations have taken place or been scheduled. Plaintiff has, however, directly
27 reached a settlement with Volvo Cars of North America, LLC, and that action was
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JOINT POST-MARKMAN REPORT
1 dismissed by order of the Court on March 3, 2015. Plaintiff has also reached a
2 settlement agreement in principle with JLRNA.
Most of the remaining Defendants have been unwilling to mediate or to
4 discuss settlement until after this Court issued its Markman ruling. Yet most of the
5 Defendants previously agreed with a proposed litigation schedule that set the last
6 date for a settlement conference or mediation for two weeks after the Markman
7 decision. (See e.g. Case No. 2:14-cv-02454-JAK-JEMx, D.E. 36, 9 (all parties
8 except Porsche and VW asked for deadline of 2 weeks after Markman decision).
Plaintiff hereby requests that the Court direct all the parties to mediate their
10 claims within four (4) weeks after its issues its Markman ruling. 1 2 This request is
11 in keeping with the position of most of the parties prior to claim construction. It is
12 also an opportune time for the parties to explore settlement, as the parties will know
13 how the Court intends to construe the patents but will not yet have incurred many of
14 the costs involved in discovery and preparation for trial. While Plaintiff does not
15 anticipate that all of the parties could find common ground, ordering mediation now
16 will likely allow some number of additional actions to achieve a quick resolution.
17 This would reduce the scale of the related actions and allow the remaining parties to
18 set a more efficient schedule for the rest of the litigation.
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B.
Defendants Statement
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1
Adding two extra weeks to the prior request provides additional flexibility in light
of the uncertain date for the issuance of this Courts Markman decision, and it
26 should facilitate the scheduling of the mediations and travel for out-of-town parties.
2
27 Because of the pending settlement, mediation between Plaintiff and JLRNA is
unnecessary and should be exempt from any mediation Order.
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JOINT POST-MARKMAN REPORT
1 Report, [n]ot later than 35 days after the issuance of the Claim Construction Order,
2 Plaintiff shall serve a Final Election of Asserted Claims, which shall identify for
3 each case no more than 5 asserted claims per patent from among the previously
4 identified claims and no more than a total of 16 claims. Plaintiffs proposal would
5 require the parties to mediate one week before Plaintiff must serve its Final Election
6 of Asserted Claims. Importantly, the scope of this case will be considerably more
7 focused and thus better-suited for mediation after Plaintiff makes its Final Elections.
8 Therefore, Defendants (other than BMWNA, Honda, MBUSA, Mitsubishi, PCNA,
9 Nissan, and VW) respectfully request that this Court direct all parties to mediate
10 within 28 days after Plaintiffs Final Election of Asserted Claims.
11
BMWNA states that on December 19, 2014, prior to the filing of the Joint
12 Status Report addressing the selection of the mediator (C.A. No. 2:14-cv-03111,
13 Dkt. 47), counsel for BMWNA notified Plaintiff that it was available to mediate
14 during the last two weeks of May. Plaintiff has not offered its availability, nor has it
15 requested to schedule a mediation. BMWNA remains willing to mediate in the last
16 two weeks of May or the first week of June and requests that the deadline to mediate
17 be set sometime thereafter.
18
PCNA and KMA previously agreed to mediate with the Hon. Irma E.
19 Gonzalez (Ret.), a former United States District Judge for the Southern District of
20 California. (D.I. 45). PCNA originally proposed mediation by November 2,
21 2015. (See D.I. 35 Ex. A). PCNA and KMA believe that mediation will be most
22 effective when the issues for trial have been sufficiently narrowed and identified. In
23 addition to the need for Plaintiffs Final Election of Asserted Claims prior to
24 mediation, as discussed above, PCNA and KMA believe that effective mediation
25 can take place only after the patent office has decided whether to institute the IPR
26 petitions filed against Signals patents. A decision from the patent office takes up to
27 six months from filing. Because the patent office could invalidate all of the patents
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JOINT POST-MARKMAN REPORT
1 asserted against PCNA and KMA, the outcome of these petitions could dispose of
2 Signals claims against PCNA and KMA. For this reason, PCNA and KMA
3 propose mediation at the end of October, 2015, after the board has ruled on the
4 merits of the pending IPR petitions.3
VWGoA and Bentley proposed in the original scheduling report that
6 mediation should occur 34 weeks after the Markman decision. (See D.E. 40, Ex. A
7 at 9, filed in the VWGoA case, 2:14-cv-03113-JAK-JEM.) Consistently with that
8 proposal, VWGoA and Bentley believe that any mediation is not likely to be
9 productive until at least after final office actions have been issued in the three
10 Reexamination proceedings that VWGoA filed, and until after the Patent Trial and
11 Appeal Board has rendered decisions whether to institute inter partes review
12 proceedings based upon the nine petitions for review filed by several defendants.
13 As set forth in more detail below in the section on reexaminations and inter partes
14 review proceedings, VWGoA and Bentley expect the final office actions to be
15 issued, and the institution decisions to have been made, by October 2015.
Accordingly, VWGoA and Bentley propose that the Court should not set a
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17 date for mediation now, and instead should require the parties to provide an updated
18 status report to the Court once the final office actions have issued and institution
19 decisions have been made.
JLRNA confirms that it has reached a settlement agreement in principle with
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Nissan, Mercedes, Honda, and Mitsubishi join PCNA and KMA in their proposal
for an October 2015 mediation. Petitions have been filed against five of the six
26 patents asserted against Nissan, four of the five patents asserted against Mercedes,
27 all five of the patents asserted against Honda, and three of the four patents asserted
against Mitsubishi.
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JOINT POST-MARKMAN REPORT
1 III.
A.
In the minute orders issued following the March 31, 2015 Markman hearing,
Plaintiffs Statement
4 this Court directed the parties to include the status of any reexaminations, inter
5 partes reviews, and any other proceedings involving the patents-in-suit in [this] joint
6 report. (See e.g. Case No. 2:14-cv-02454-JAK-JEMx, D.E. 57, 2.)
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8 by VWGoA and Bentley on October 27, 2014. In requests filed on that date,
9 VWGoA and Bentley requested reexaminations of United States Patent No.
10 6,434,486 (the 486 Patent), 6,775,601 (the 601 Patent), and 5,732,375 (the
11 375 Patent). The Patent Office issued office actions rejecting claims in those
12 patents, on a preliminary basis, on February 12, February 18, and March 9,
13 respectively. Signal will be responding to those office actions, and no examiner
14 response is expected until at least August 2015.
15
In the last month, five parties have requested inter partes reviews (IPR) of
Finally, Plaintiffs actions against Ford Motor Company and against Fiat
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JOINT POST-MARKMAN REPORT
1 U.S.A. Inc., Fiat North America LLC, and Chrysler Group LLC (collectively
2 Chrysler) remain pending in the Eastern District of Michigan. Those actions were
3 related and reassigned to the Hon. Mark A. Goldsmith in late January 2015. On
4 April 7, 2015, Judge Goldsmith issued an order setting a telephonic scheduling
5 conference for April 29, 2015. There have been no other developments in the Ford
6 or Chrysler actions since they were transferred.
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B.
Defendants Statement
9 and 375 patents. Subsequently, nine inter partes review petitions challenging those
10 three patents and two others were filed with the Patent Trial and Appeal Board
11 (PTAB) by defendants both here and in the parallel Michigan litigation. The
12 petitions and reexamination proceedings collectively challenge the validity of the
13 asserted claims in five of the seven patents-in-suit.
14
As a general matter, Signal has the option to file preliminary responses to the
15 IPR petitions within three months of the issuance of a notice from the Patent Trial
16 and Appeal Board (the Board) that the IPR petition has been granted a filing date.
17 The Board then has three months to decide whether to institute inter partes review.
18 If institution is granted, the Board generally has one year from the date of institution
19 to render a final decision on the patentability of the claims under review.
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The re-examinations and inter partes reviews are likely to simplify the issues
21 involved in these litigations. Many of the asserted claims have been rejected in the
22 re-examination proceedings. In the re-examination of the 601 patent, 90/013,385,
23 the Examiner rejected all of the claims asserted by Plaintiff against Defendants in
24 these actions. See February 18, 2015, Office Action, attached hereto as Exhibit A.
25 In the re-examination of the 375 patent, 90/013,386, the Examiner rejected all of
26 the claims asserted by Plaintiff against Defendants in these actions. See March 9,
27 2015, Office Action, attached hereto as Exhibit B. In the re-examination of the 486
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JOINT POST-MARKMAN REPORT
1 patent, 90/013,384, the Examiner rejected the two independent claims asserted
2 against all defendants and one of the dependent claims. See February 12, 2015,
3 Office Action, attached hereto as Exhibit C.
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Moreover, regardless of the outcome, the parties and this Court will receive
5 guidance from the Patent Trial and Appeal Boards (PTAB) institution decisions,
6 which will issue by October 2015. Should the PTAB institute trial, the statistics
7 compiled by the USPTO paint a stark picture for the Patent Owner. According to
8 statistics through April 9, 2015, of the 698 IPR institution decisions in fiscal year
9 2015, 516 decisions, or 73.9%, resulted in a trial either through institution or
10 joinder. As of January 1, 2015, of the claims that proceeded to a final written
11 decision, the PTAB found 2,176 claims (77%) unpatentable compared to finding
12 only 643 claims (23%) patentable. There is, thus, a strong likelihood that the IPRs
13 will simplify the issues involved in this litigation.
14
The table and text below summarize on a patent by patent basis all
15 Reexamination proceedings and inter partes review petitions that have been filed to
16 date, their current status, and their expected timelines.
17 The 486 Patent
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All claims of the 486 patent asserted against VWGoA currently stand
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Number
No. 90/013,384
Requestor
VWGoA
Status
Filed October 27, 2014
Reexamination ordered December 3, 2014
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No. IPR2015-01005 Honda
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20 the three claims asserted by Signal against VWGoA, i.e., claims 21, 26, and 28, in
21 view of six different prior art documents, and asserting seven grounds of rejection.
22 The Examiner agreed with VWGoA that each of the seven proposed grounds raised
23 a substantial new question of patentability, ordering the reexamination of the 486
24 patent on December 3, 2014. On February 12, 2015, the Examiner rejected each of
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These dates are approximate. The schedule for an IPR proceeding runs from
27 the date on which the PTAB accords a filing date to the IPR petition, which it has
not yet done for Hondas petitions.
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JOINT POST-MARKMAN REPORT
1 the challenged claims in an office action. On April 13, 2005 (today), Signal
2 submitted its response to the rejections to the USPTO.
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MBUSA filed a petition for inter partes review on March 16, 2015,
4 challenging claims 21, 23, 2628, 30, 34, and 35 in view of five different prior art
5 documents, and asserting six grounds of unpatentability. Honda filed a petition for
6 inter partes review on April 3, 2015, challenging claims 1, 2, 68, 13, 14, 21, 22,
7 2629, 33, and 34 in view of five different prior art documents, and asserting nine
8 grounds of unpatentability. Both IPR petitions include prior art documents that are
9 not currently being relied upon in the VWGoA reexamination. The PTAB will
10 decide whether to institute these IPR proceedings by September 30, 2015 (for
11 MBUSAs petition) and mid-October 2015 (for Hondas petition).
12 The 601 Patent
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All claims of the 601 patent asserted against VWGoA currently stand
Number
No. 90/013,385
Requestor
VWGoA
Status
Filed October 27, 2014
Reexamination ordered November 21, 2014
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JOINT POST-MARKMAN REPORT
Number
Requestor
No. IPR2015-00860 Ford
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Filed March 13, 2015
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24 the seven claims asserted against VWGoA, i.e., claims 811, 13, 15, and 17, in view
25 of three different prior art documents, and asserting four grounds of rejection. The
26 Examiner agreed with VWGoA that each of the four proposed grounds raised a
27 substantial new question of patentability, ordering the reexamination of the 601
28 patent on November 21, 2014. On February 18, 2015, the Examiner rejected all
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JOINT POST-MARKMAN REPORT
1 seven challenged claims. Signals due date for responding to the rejections is April
2 18, 2015.
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Ford filed two petitions for inter partes review on March 13, 2015,
4 challenging claims 117 in one petition, and claims 14, 611, and 1317 in the
5 other. MBUSA filed a petition for inter partes review on March 25, 2015,
6 challenging claims 811, 13, 15, and 17. Honda filed a petition for inter partes
7 review on April 3, 2015, challenging claim 117. These IPR petitions rely on
8 entirely different prior art documents than those relied upon in VWGoAs
9 reexamination. The PTAB will make a preliminary decision regarding these IPR
10 proceedings by September 18, 2015 (for Fords petitions), the October 2, 2015 (for
11 MBUSAs petition), and by mid-October, 2015 (for Hondas petition).
12 The 375 Patent
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All claims of the 375 patent asserted against VWGoA currently stand
Number
No. 90/013,386
Requestor
Status
VWGoA
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Requestor
Number
No. IPR2015-01003 Honda
Status
Filed April 3, 2015
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Number
Requestor
No. IPR2015-00968 VWGoA
Status
Filed March 30, 2015
Signals response due July 9, 2015
Decision on request expected by October 9,
2015
Final written decision expected by October 9,
2016
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8 The 007 Patent
Honda filed a petition for inter partes review of the 007 patent on April 3,
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10 2015, challenging claims 13, 5, 9, and 1721 in view of two prior art documents,
11 and asserting four grounds of rejection. The PTAB will decide whether to institute
12 IPR proceedings by mid-October, 2015.
Number
Requestor Status
13 No. IPR2015-01004 Honda
Filed April 3, 2015
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Signals response due mid-July, 2015
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