SiOnyx, LLC et al.v. Hamamatsu Photonics K.K. et al. (15-cv-13488).

As this patent and breach of contract case nears trial, Judge Saylor granted SiOnyx’ motion to amend its complaint to remove assertions of the ‘591 patent. SiOnyx asserts that, through late-produced discovery, the products accused of infringing this patent were still under development, and that a final configuration of these products was not likely to be set prior to trial. Hamamatsu had not filed counterclaims relating to the ‘591 patent, and would suffer no legal prejudice from the withdrawal of the claim. The dismissal of the ‘591 claims is with prejudice as to any products that had been accused during the proceeding, but not as against products developed in the future.

Judge Saylor also dealt with the parties’ competing motions to exclude testimony from an opposing expert. SiOnyx has accused Hamamatsu of violating a nondisclosure agreement, obtaining patents on SiOnyx’s technology without naming SiOnyx personnel as inventors, and infringing SiOnyx patents. SiOnyx sought to preclude testimony from a technical expert of Hamamatsu for failing to consider objective indicia of non-obviousness, which would render the report unreliable as applying an incorrect legal standard. Judge Saylor determined, however, that the expert’s statement that he had “not seen any evidence of secondary consideration” did not mean that he had not considered secondary factors. Accordingly, he denied SiOnyx’s motion. Hamamatsu, for its part, sought to entirely preclude SiOnyx’s damages expert, who is intended to testify as to damages for breach of contract, unjust enrichment, and patent damages. On the breach of contract claim, the expert relied on a non-binding memorandum of understanding between SiOnyx and Nikon to determine the damages from the loss of that opportunity, which Hamamatsu asserted to be too speculative. Judge Saylor found that, for the most part, the expert had relied not just on the memorandum but also on correspondence between SiOnyx and Nikon and other evidence in coming to her conclusions. Judge Saylor did exclude testimony on damages resulting from a proposed extension of the contract contemplated by the memorandum of understanding, because there was no discussion of pricing terms or the length of any potential extension in the memorandum, making the opinion on the loss of the extension too speculative. He also excluded testimony on SiOnyx’s theory that, had it entered into the Nikon agreement and developed a chip for Nikon, it would have been able to leverage that development in reducing the cost of development of the next generation chip by nearly $1 million. The Judge accepted that such a reduction on R&D costs could be the basis for damages, but felt that the steps used to determine the dollar figure were too attenuated and speculative. He denied Hamamatsu’s request with respect to breach of contract damages that Hamamatsu itself would have paid had it not breached the agreement and instead have licensed the technology, finding that the other SiOnyx agreements relied upon were not so different from the structure that Hamamatsu had discussed as to form an insufficient basis. With respect to the unjust enrichment claim, Mamamatsu objected to testimony on profits it incurred beyond the expiration of the nondisclosure agreement; Judge Saylor found that Hamamatsu had failed to support the notion that damages must end upon expiration of the NDA, and refused to exclude this testimony. Finally, he refused to preclude testimony on patent damages, finding that the expert’s opinions were adequately supported and that any disputes as to the calculations could be dealt with on cross-examination.

LovePop, Inc. v. PaperPop Cards Inc. (17-cv-11017).

Judge Gorton denied both parties’ motions to disqualify each other’s expert witnesses in a contentious litigation involving allegations of doctored evidence. LovePop asserts that PaperPop infringed its copyright in several designs of pop-up greeting cards. PaperPop produced documents and photographs that were alleged to show that PaperPop conceived of the designs first, but LovePop purports that PaperPop tampered with the metadata to falsely back-date the documents to the relevant date. LovePop proffered an expert who would testify as to what metadata was, the means for manipulating metadata, and that some of PaperPop’s documents could not have been created on the dates alleged because the software with which they were created had not yet been made available. PaperPop in turn proffered an expert to testify that LovePop’s expert used unvalidated testing to achieve his results and to present the results of his testing that show the tests of LovePop’s expert were unreliable and incorrect. Judge Gorton determined that both parties’ complaints were directed to the credibility of their opponents’ experts, who were otherwise both well-qualified. Accordingly, he denied both motions.

Egenera, Inc. v. Cisco Systems, Inc. (16-cv-11613).

Judge Stearns denied Cisco’s motion to strike parts of Egenera’s expert report on infringement. Judge Stearns agreed that Egenera’s expert report addressed previously unaccused features of the accused products. He found, however, that Cisco had identified no concrete prejudice to justify striking these parts of the report, discounting Cisco’s assertions that it would have conducted additional prior art searches as too speculative.

Egenera, Inc. v. Cisco Systems, Inc. (16-cv-11613).

Judge Stearns denied Egenera’s motion to strike Cisco Systems’ invalidity expert report.  Cisco’s expert had opined on a prior art Catalyst System found at UNC, of which the expert had personal knowledge; Egenera sought to have his opinion striken because Cisco had not disclosed the expert as a fact witness and had not disclosed the UNC system in its contentions.  Judge Stearns found that the UNC system was merely an exemplar of the Cisco Catalyst System, which had properly been disclosed.  He also noted that Egeneral still has the opportunity to depose the expert, meaning that even if he was not properly identified as a fact witness, there was no prejudice to Egenera.

Crane Security Technologies, Inc. et al. v. Rolling Optics AB (14-cv-12428).

Judge Sorokin precluded Rolling Optics from offering testimony that certain asserted claims are invalid. Defendants did not offer expert opinion that the claims were anticipated by Rowland Technologies patents or products, but sought to elicit non-expert fact testimony from a Rowland representative.  The Court determined that the technology at issue (described briefly here) was too complicated for a jury to understand without expert assistance, and precluded Rolling Optics from presenting any evidence, opinions or argument to the jury on the Rowland technology.  This case is in its fourth day of trial, so I expect to see more from this courtroom.