LITIOC/2100839v3/101022-0107

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF TEXAS
MARSHALL DIVISION
INNOVATIVE DISPLAY TECHNOLOGIES
LLC
Plaintiff,
v.
ACER INC. AND ACER AMERICA CORP.,
Defendants.


Civil Action No: 2:13-cv-522-J RG
(CONSOLIDATED Lead Case)







INNOVATIVE DISPLAY TECHNOLOGIES
LLC
Plaintiff,
v.
MICROSOFT CORPORATION,
Defendant, Third-party plaintiff,
v.
ACACIA RESEARCH CORPORAITON,
Third-party defendant,


[PROPOSED] ORDER GRANTING THIRD-PARTY DEFENDANT ACACIA
RESEARCH CORPORATIONS AND COUNTERCLAIM DEFENDANT INNOVATIVE
DISPLAY TECHNOLOGIES, LLCS JOINT MOTION TO STRIKE CERTAIN
MATTERS FROM MICROSOFT CORPORATIONS COUNTERCLAIM AND THIRD-
PARTY COMPLAINT UNDER FED. R. CIV. P. 12(f) AND TO DISMISS MICROSOFTS
ABUSE OF PROCESS CLAIM FOR RELIEF UNDER FED. R. CIV. P. 12(b)(6); AND
REQUEST FOR JUDICIAL NOTICE


Before the Court is Third-Party Defendant Acacia Research Corporations (ARC) and
Counterclaim Defendant Innovative Display Technologies, LLCs (IDT) J oint Motion to
Strike certain matters from Microsoft Corporations Counterclaim and Third-Party Complaint
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LITIOC/2100839v3/101022-0107
under Federal Rule of Civil Procedure 12(f) and to Dismiss Microsofts Abuse of Process claim
for relief under Federal Rule of Civil Procedure 12(b)(6). Also before the Court are ARCs and
IDTs Request for J udicial Notice.
After consideration of the parties written submissions and any further argument, the
Court finds that the Motion should be GRANTED. It is therefore
ORDERED that:
Microsofts allegations in Paragraphs 17-21
1
, 23-29, 52, 58(d), 58(e), and D, E, G, and H
to Microsofts Prayer for Relief are stricken in their entirety;
Microsofts allegations in Paragraphs 2, 37, 41, 42(c), 45, 48, 49, 51, 53, and B to
Microsofts Prayer for Relief are stricken in part as identified below.
Paragraph 2: the phrases seven separate ARC subsidiaries
(all under ARCs control) filed seven separate lawsuits against
Microsoft in four separate cities, and several of the lawsuits
contain claims concerning patents that ARC had told Microsoft it
did not infringe, and several contain allegations that ARC knew to
be frivolous, are stricken.
Paragraph 37: the phrase the ARC Actions because all of
the ARC Actions assert patents covered by the Contract and, with
respect to those patents, the ARC Actions all initially, is stricken.
Paragraph 41: the phrase eight of the patents that are
asserted in the ARC Actions are patents that ARC identified in
December 2012 as patents ARC believed Microsoft did not
infringe, is stricken.
Paragraph 42(c): the phrase that ARC, in the ARC
Actions, now asserts to be infringed by Microsoft sale and

1
Except for the allegation in Paragraph 18 referencing IDT.
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LITIOC/2100839v3/101022-0107
activities occurring prior to September 30, 2013, including sales
and activities from prior to December 2012, is stricken.
Paragraph 45: the phrase as well as by the diversion of
corporate personnel and resources to defend against the ARC
Actions and to prosecute its case against ARC alleging breach of
contract and abuse of process in the Southern District of New
York, is stricken.
Paragraph 48: the phrase ARC actions and the legal
processes those lawsuits have set in motion, including early and
extensive disclosures and discovery, is stricken.
Paragraph 49: the phrases ARC knows that many of the
claims and allegations in the ARC Actions lack any merit, and
ARC orchestrated eight lawsuits that include these baseless
claims and allegations in order to maximize the burden and
expense of the ARC Actions on Microsoft. Two of the ARC
Actions have already been voluntarily dismissed in light of their
lack of merit, are stricken.
Paragraph 51: the phrase in a number of the ARC Actions,
ARC has injected allegations of willful infringement even though
ARC knows that neither it nor the specifically named ARC
Affiliate has any plausible basis for such allegations, is stricken.
Paragraph 53: the phrase the ARC Actions, as well as by
the diversion of corporate personnel and resources to defend
against the ARC Actions . . . to prosecute its case in the southern
District of New York, is stricken.
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LITIOC/2100839v3/101022-0107
Paragraph B: the phrase and the Southern District of New
York action to enforce ARCs and IDTs obligations under the
Contract, is stricken.
Additionally, all references in Microsofts Counterclaim and Third-Party Complaint to
the ARC Actions and ARCs subsidiaries, except for references to IDT, are stricken.
IT IS FURTHER ORDERED that Acacias motion to dismiss Microsofts Abuse of
Process claim for relief is GRANTED, with prejudice.
IT IS FURTHER ORDERED that Acacias Request for J udicial Notice is GRANTED.
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