Beruflich Dokumente
Kultur Dokumente
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Plaintiffs,
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v.
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Defendant.
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respectfully submits the following Motion For Judgment As A Matter Of Law (JMOL).
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JMOL is appropriate when, viewing the evidence in a light most favorable to the non-moving
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party, reasonable minds could come to but one conclusion in favor of the moving party. Behne
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v. 3M Microtouch Sys., Inc., 11 F. Appx 856, 858-59 (9th Cir. 2001) (judgment as a matter of
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law is proper if the evidence, construed in the light most favorable to the non-moving party,
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1. Ford has not infringed U.S. Patent No. 6,615,137 (the 137 patent).
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2. Ford has not infringed U.S. Patent No. 7,146,260 (the 260 patent).
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 1
No. 3:11-cv-05503-BHS
3. Ford has not infringed U.S. Patent No. 7,778,739 (the 739 patent).
4. Ford has not infringed U.S. Patent No. 8,006,119 (the 119 patent).
royalty.
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liable for inducing infringement of the 137 patent under 35 U.S.C. 271 by users of its vehicles
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by making, selling, and/or offering for sale vehicles equipped with Active Park Assist (APA).
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(Dkt. 61 [2d Amended Compl.] 20.) To prevail on its claim, Plaintiffs must prove (1) that
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Fords APA system directly infringes the 137 patent, either literally or under the doctrine of
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equivalents, (2) that a third party actually uses the APA system in a manner that infringes claim
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29, and (3) that Ford specifically intended its customers to infringe the 137 patent. See 35
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U.S.C. 271(b); Vita-Mix Corp. v. Basic Holding, Inc., 581 F.3d 1317, 1328 (Fed. Cir. 2009).
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Plaintiffs have been fully heard on these issues, and no reasonable jury could have a legally
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A.
No Reasonable Jury Could Find That Plaintiffs Have Met Their Burden to Prove
Direct Infringement
Plaintiffs have failed to prove direct infringement either literally or under the doctrine
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of equivalents. Plaintiffs presented one witnessDr. Paul Minto testify regarding Fords
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alleged infringement of claim 29. Dr. Min, however, failed to demonstrate that Fords APA
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system meets either the steering queue limitation or the identifying limitation of the claim.
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First, claim 29 of the 137 patent requires a steering queue. (137 patent, claim 29,
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generating a steering queue that provides a direction for the local vehicle to move to avoid the
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identified object.) The Court has construed the term steering queue to mean a steering
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signal and has determined that the step of generating a steering queue that provides a
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 2
No. 3:11-cv-05503-BHS
direction for the local vehicle to move to avoid the identified object must occur after the step
in which the comparison indicates a possible collision condition exists between the identified
object and the local vehicle. (Dkt. 165 [Order of Special Master] at 18; Dkt. 184 [Order
At trial, Dr. Min testified that APA provides two different so-called steering queues,
but neither satisfies this claim limitation as construed by the Court. Dr. Mins first theory,
which was presented for the first time at trial, asserts that the steering queue limitation is
satisfied by the steering signals sent by APA to correct the APAs parking trajectory during a
parking maneuver. (3/11 Tr. at 218:19-219:11.) Dr. Mins second theory asserts that the
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steering queue limitation is satisfied by the pull forward prompt (together with automatic
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steering), which is issued to the driver when the system has determined that the vehicle needs
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to move forward to complete a parallel parking maneuver. (3/11 Tr. at 219:12-17.) Neither of
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these alleged steering queues satisfies this limitation as construed by this Court.
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With respect to the first alleged steering queuesignals to correct the parking
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indication as required by claim 29, or (b) such a correction to the parking trajectory is
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calculated to avoid [an] identified object. Dr. Min failed to identify any alleged warning
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indication related to his first steering queue theory. The only alleged warning indication that
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Dr. Min identified is the one APA gives when the driver is backing up and nearing the object
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behind it.
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Q.
The next step is generating a warning indication when the comparison indicates
a possible collision condition between the identified object and the local vehicle.
How is that satisfied by APA?
A.
Q.
So if you turn to page 33 of Exhibit 112. What is shown there with respect to
warnings that are generated when a possible collision condition exists?
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A.
. . . So it says, end of the rear move, the message the warning indication
would be given to the driver saying: Stop and put in drive going forward.
Otherwise youll collide.
(3/11 Tr. at 217:15-218:18.) Thus, the first alleged steering queue comes before any
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warning indication, contrary to the claim requirements. In addition, there is no evidence that
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any correction to the parking trajectory (initial rearward move) is to avoid an identified
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documentary evidence. Indeed, the only document Dr. Min references in support of this
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infringement theory is a Ford press release summarizing how APA works. This document does
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not address any supposed correction to the parking trajectory, let alone confirm that its
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PX1892).) To the contrary, the APA system keeps the vehicle on the calculated path to
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Dr. Mins second steering queue theorythe forward promptsimilarly fails. There
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is no evidence that the prompt is generated in order to avoid that collision as the claim requires.
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Indeed, Dr. Min conceded that there is no collision condition at the time the forward prompt is
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Q.
. . . Now, at the time the driver stops, there is no collision condition, correct?
A.
Q.
And we both can agree that in APAyou have APA in mind, correct?
A.
Yes.
Q.
The forward prompt, the move forward, occurs only after the driver has
stopped the car, correct?
A.
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(3/12 Tr. at 43:9-44:7; see also id.at 47:23-15.) In sum, Dr. Min failed to provide any
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competent evidence that the use of APA meets the steering queue limitation of claim 29.
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 4
No. 3:11-cv-05503-BHS
Second, claim 29 of the 137 patent requires identifying an object in the sensor data.
(137 patent, claim 29.) Plaintiffs, however, have failed to meet their burden of demonstrating
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parking space are is entirely conclusory. His testimony is based on one document, PX-444,
which describes how to set up or arrange vehicles to test the APA system. The document does
not address whether APA can identify the surrounding obstacles. To the contrary, the
document confirms that APA cannot identify surrounding objects. APA can only measure
distance to detect where objects are present in relation to the drivers vehicle, not what any
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object is. In other words, the APA system cannot identify whether an object surrounding the
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vehicle is a tree, a dumpster, a motorcycle, or a car. The APA system cannot even determine
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whether the object detected by the system is one large object or several smaller objects. Dr.
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Min appeared to concede this when he testified that the ultrasonic sensors in the APA system
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measure empty space. (3/11 Tr. at 206:13-21 (Activate ultrasonic sensors to measure and
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identify a feasible parallel parking space. And you do this by having the vehicle drive slowly
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along the side to park the vehicle. And youll see that the sensor, the blue wiggly form, is
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transmitting to the side identifying, at this point, there is an empty space there, and made a
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determination that that spot is large enough for the red vehicle that is performing the parallel
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parking, to safely maneuver into that space.).) As a result, no reasonable jury could find
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equivalents at trial. Accordingly, Ford is entitled to judgment as a matter of law on this issue.
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B.
No Reasonable Jury Could Find that Plaintiffs Have Met Their Burden to Prove
Infringement By a Third Party
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A claim for inducement requires proof that a third party directly infringed the claim.
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Plaintiffs, however, have failed to prove any use of the APA system in a manner that infringes
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claim 29. Dr. Min and Mr. Wagner failed to identify any individuals who have actually used
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 5
No. 3:11-cv-05503-BHS
the APA system in a manner that would infringe the 137 patent. The Court has already
deemed insufficient Plaintiffs theory that the APA system infringes whenever the driver uses
the system for its intended purpose to prove actual use. (Dkt. 597 [Order Denying Plaintiffs
Motion for Reconsideration].) This Court has also rejected Plaintiffs argument that any Ford
customer who elects to pay over $300 for the APA system can be assumed to have actually
used the system. Because of Plaintiffs complete failure of proof on this point, judgment as a
matter of law is appropriate. Lucent Techs. Inc. v. Gateway, Inc., 580 F.3d 1301, 1334-35 (Fed.
Cir. 2009) (vacating the damages portion of the verdict because, beyond the circumstantial
evidence of at least one infringing use, all the jury had was speculation . . . there was an
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absence of evidence describing how many Microsoft Outlook users had ever performed the
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C.
No Reasonable Jury Could Find that Plaintiffs Have Met Their Burden to Prove
Specific Intent
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A claim for inducement requires proof that Ford affirmatively intends for its APA
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customers to infringe the 137 patent. See, e.g., DSU Med. Corp. v. JMS Co. Ltd., 471 F.3d
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1293, 1305-06 (Fed. Cir. 2006) (Beyond that threshold knowledge, the inducer must have an
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of culpable conduct, directed to encouraging anothers infringement, not merely that the
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inducer had knowledge of the direct infringers activities.). Plaintiffs, however, have provided
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no evidence that Ford specifically intended its customers to directly infringe the 137 patent.
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establish specific intent. But all Ms. Moody testified was that Ford provides instructions and
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may provide how-to videos regarding the use of APA. (3/13 Tr. at 167:13-169:16.) This
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evidence is not enough. It is well-settled that merely instructing users how to use a product,
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without more, is insufficient to establish affirmative intent. See Vita-Mix Corp., 581 F.3d at
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1329 n.2 (evidence that a user following the instructions may end up using the device in an
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infringing way is insufficient to state a claim for inducement); Unisone Strategic IP, Inc. v.
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 6
No. 3:11-cv-05503-BHS
Life Tech. Corp., No. 3:13-CV-1278, 2013 WL 5729487, at *3 (S.D. Cal. Oct. 22, 2013)
(allegation that Defendant provides instruction, technical support, and training for use of its
Grp., Inc. v. Vonage Holdings Corp., No. 14-502, 2014 WL 3345618, at *2 (D.N.J. July 7,
2014) (allegations that the defendants induced customers by instructing them how to use the
accused products insufficient to establish that Defendants specifically intended for the induced
acts to infringe) (emphasis in original); Intellectual Ventures I LLC v. Bank of Am., Corp., No.
dismiss for an induced infringement claim, Plaintiffs complaint should have alleged facts that
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plausibly demonstrated that Ford not only intended its customers to infringe the 137 patent,
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website. This argument fails to mention any facts that demonstrate that Ford specifically
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intended for its customers to infringe the asserted patent. Additionally, Plaintiffs do not point
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to specific portions of Fords website establishing that Ford knew its customers used APA in an
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infringing manner. Metro-Goldwyn-Mayer Studios Inc. v. Grokster, Ltd., 545 U.S. 913, 937
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(2005) (ordinary acts incident to product distribution, such as offering customers technical
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support or product updates would not support liability for inducement in and of themselves).
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In short, there is no evidence of the specific intent necessary to prove inducement. Judgment as
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II.
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739, and 119 patents. Plaintiffs have failed to meet their burden of demonstrating that the
accused SYNC system infringes any of the asserted claims of the Processor Patents literally or
under the doctrine of equivalents.
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 7
No. 3:11-cv-05503-BHS
Plaintiffs presented only Dr. Paul Min to testify regarding Fords alleged infringement.
(3/11 Tr. at 104:10-13; 3/12 Tr. at 15:15-21.) But Dr. Min failed to demonstrate that Fords
SYNC system meets the limitations of claim 9 of the 260 patent; claims 1 and 3 of the 739
patent; or claim 1 of the 119 patent, for the reasons that follow.
A.
Plaintiffs have failed to present sufficient evidence to prove that SYNC meets
multiple limitations of claim 9 of the 260 patent
1. Plaintiffs have failed to present sufficient evidence to prove that SYNC includes the
required configuration manager of claim 9 of the 260 patent
Claim 9 of the 260 patent requires multiple processors that include a configuration
manager that will reconfigure[] the multiprocessor system to run the real-time car
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applications on different ones of the multiple on-board processors. The claim thus requires:
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(1) multiple processors that each run a dynamic configuration system including a
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configuration manager, and (2) the configuration manager must reconfigure[] the
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multiprocessor systemi.e., change the systems current configurationso that the real-time
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Dr. Min admitted during cross examination, however, that he had not identified any
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applications in SYNC that are run on one processor, then reconfigured to run on a different
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processor. (3/12 Tr. at 60:6-11 (Q. [Y]ou have in mind Claim 9, correct? A, Yes. Q, Im
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going to ask you a question about the SYNC system. True or false. You have not identified
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any applications in SYNC that are run on one processor, then reconfigured to run on a
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different processor, correct? A. Thats right. Thats what I said then, and thats what I just
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told you.).) In addition, Dr. Min has not identified any configuration manager in the ACM
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that reconfigures the multiprocessor system. Indeed, Dr. Min has not identified any software
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module that he contends is the claimed configuration manager. (3/12 Tr. at 61-25-62:24.)
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Because Plaintiffs have provided no competent evidence that Fords SYNC system
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includes the required configuration manager of 260 patent, claim 9, no reasonable juror
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could find that SYNC infringes this claim, and Ford is entitled to judgment as a matter of law.
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 8
No. 3:11-cv-05503-BHS
2. Plaintiffs have failed to present sufficient evidence to prove that SYNC includes the
required device manager of claim 9 of the 260 patent
Dr. Min has not identified a device manager for automatically detecting and adding
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new hardware devices to the on-board multiprocessor system that runs on multiple different
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ones of the multiple on-board processors, as required by claim 9 of the 260 patent. Dr. Min
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does not point to anything on the ACM that automatically detect[s] and add[s] new hardware
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devices to the SYNC system. Instead, Dr. Min says only that a message from the APIM is
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communicated to the ACM. (3/11 Tr. at 161:2-22.) Nowhere does Dr. Min say a device
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manager within the ACM itself includes the claimed device manager.
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3. Plaintiffs have failed to present sufficient evidence to prove that SYNC includes the
different communication links recited in claim 9 of the 260 patent
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Claim 9 of the 260 patent requires different communication links coupling the
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multiple processors together. Dr. Min has not, however, identified the required different
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communications links. Dr. Min instead points to a single linkthe MS_CAN Network. (3/11
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Tr. at 159:2-14.) Dr. Min argues that this single MSCAN link has multiple wires where the
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data channels are redundant or complementary to each other. Id. However, the CAN bus
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is a single link as that term has been construed by the Court (a data communications
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channel, which can be wired or wireless, connecting two points or entities); see also PX-70 at
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19.
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Claim 1 of the 119 patent requires a distributed processing system. The Court
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multiprocessor system in which processing tasks for applications can be distributed among
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multiple processors. (Dkt. 165 at 45; Dkt. 184 at 2-3, 11.) Consistent with the specifications
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and the alleged novelty of the Processor Patents, this claim construction requires that the
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claimed system be capable of moving or re-allocating processing tasks for applications between
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dedicated processors, and no task for an application is ever moved from one processor to
another. Under the Courts claim construction, therefore, SYNC is not a distributed
processing system.
Dr. Mins trial testimony does not prove otherwise. Instead, Dr. Min interprets the
Courts construction to require only that the multiple processors work[] together. (3/11 Tr. at
190:13-14.) Dr. Min testified that SYNC meets the distributed processing system limitation
because the processors in the APIM and ACM work together when receiving a phone call.
(3/11 Tr. at 190:23-193:1.) Dr. Min failed to identify any application or task in the SYNC
system that can move from one processor to another processor or be distributed among multiple
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processors. Faced with this absence of evidence, no reasonable juror could find that SYNC is a
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distributed processing system as required by claim 1 of the 119 patent, and SYNC does not
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infringe.
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the second software application from the memory to a particular processor after the
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connection of a new device. Claim 1 of the 119 patent includes a similar limitation, requiring
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that the system download the stored application from memory into the processing system
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Dr. Min identified an alleged phone book application that he contended is the second
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software application of claims 1 and 3 of the 739 patent. He testified that the system has no
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reason to have a phone book application running on the SYNC system before a phone is
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connected, and will copy the portion of the software to the memory location so that the
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CCPU can actually run the software. (3/11 Tr. [Min] at 181:13-182:6.) Dr. Min makes an
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even more conclusory argument with respect to claim 1 of the 119 patent, citing absolutely no
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evidence of the alleged application. (3/11 Tr. [Min] at 197:19-23 (If it is phone book data,
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 10
No. 3:11-cv-05503-BHS
phone book application here. If you say music, music application here, so forth. And then
after that the application gets downloaded into the memory.).) There are three problems with
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that while the patent uses both the terms application and thread, the claim uses only the
word application and a [t]hread is not part of the claim term. 3/12 Tr. at 65:17-66:3; see
also id. at 66:15-17, 68:21-25 ([Q.] Again, what you highlighted yesterday was a thread,
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correct? A. Yes. Its identified as a TID.). Indeed, even the Special Masterwhose
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constructions the Court adopted and found that he had provided a thorough explanation for his
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constructions (Dkt. 345 at 6)expressly stated that [i]n every case, the claims expressly
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indicator of a subset of an application (Dkt. 333 at 18-19). The Court recognized that in light
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of this statement, this issue may be subject to determination as a matter of law. (Dkt. 530 at
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12 n. 4.) Further, Dr. Min conceded that he identified only a portion of software or page
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that is copied to a memory location (3/11 Tr. at 181:23-24, 183:9-11), and he never made any
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attempt to establish how many instructions are actually downloaded under his theory. (See
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Dkt. 530 at 13 (Once Dr. Mins terminology is further clarified as to how many instructions
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are actually downloaded, Ford may move for judgment as a matter of law that either the term
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application can not be construed to meet this minimal amount of code or no reasonable juror
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could ever find that this amount of code infringes the relevant patents.).)
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As mentioned above, with respect to claim 1 of the 119 patent Dr. Min simply refers
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back to his earlier scenario and otherwise provides completely unsupported testimony. (See
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b. Dr. Min has not shown that the thread he contends is the application is
downloaded or moved in response to connecting a new device to the system
FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 11
No. 3:11-cv-05503-BHS
Second, even putting aside whether a thread may be considered an application or how
much of an application must be downloaded, Dr. Min has failed to establish when the software
he identifies is allegedly downloaded. It is undisputed that claim 1 of the 739 patent and
connected. (3/11 Tr. at 175:25-176:2 (Theres no reason for SYNC system to run phone book
when the phone is not connected. So when the phone gets connected, now this time it needs to
run that.).) However, Dr. Min only speculates the system has no reason to have a phone
book application running on the SYNC system before the phone gets connected. (3/11 Tr.
at 181:15-19.) Dr. Min cites no concrete evidence demonstrating that phone book
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applicationwhich, to be clear, does not exist and is not referenced in any evidenceis
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move[d] as the Court has construed that term in response to a phone being connected.
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book applicationis actually part of the PhoneApp (as shown in Dr. Mins demonstrative at
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or moved before any phone is connected to the system, and cannot meet these limitations.
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c. Dr. Min points to separate software to meet the same second application
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Finally, Dr. Min appears to identify different applications for different claim
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limitations, when those limitations refer to the same application. For example, with respect to
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the limitation identify a second software application, Dr. Min identifies only a media
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player. 3/11 tr. [Min] at 174:23-175:2 (And the second software application, the media
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player, as a part of SYNC system, is identified and clearly that application is in a memory
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within the SYNC system. . . .). However, when Dr. Min provides his opinion regarding the
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limitation that requires the system to automatically move the second software application, Dr.
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Min identifies the alleged phone book application. 3/11 Tr. [Min] at 181:2-6, 15-19.
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The Special Master made clear that [i]n every case, the claims expressly require
downloading or moving an application, not instructions threads, or some other indicator of a
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 12
No. 3:11-cv-05503-BHS
subset of an application. (Dkt. 333 at 18-19.) The Court recognized that this issue may be
subject to determination as a matter of law. (Dkt. 530 at 12 n. 4.) Plaintiffs also have failed to
show that any purported application is made available in an address space after a new device is
connected.
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6. Plaintiffs have failed to present sufficient evidence to prove that SYNC selects a
particular processor to which to download or move applications, as required by
claims 1 and 3 of the 739 patent
Claims 1 and 3 of the 739 patent require that the claimed multiprocessor system select
a particular one of the on-board processors for operating the application that is being
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Although the Special Master concluded that the select a processor limitation need not
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be construed, he explained that the parties agreed that select and choose are synonymous,
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and that the claim language plainly refers to multiple processors. (Dkt. 165 at 51-52.) Thus,
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under the Special Masters analysis, the select a processor limitation requires that the system
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can choose a processor from among multiple processors to operate the second software
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application.
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the system therefore never selects a processor on which an application should run. In SYNC,
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there is no choice.
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Faced with these facts, Dr. Min presented a theory directly contrary to the Special
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Masters reasoning. Dr. Min instead argued that SYNC infringes because, for example, the
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CCPU processor allegedly selects itself to run one of its own predetermined applications.
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(3/12 Tr. at 179:21-180:8 (the CCPU has a corresponding software, so it [the CCPU] selects
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itself to run the program.).) This argument is nonsensical; where a processor is indisputably
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the only processor capable of running an application, there is no choice, and thus, no selection.
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Similarly, Dr. Min argues only that the CCPU let[s the] ACM know that it needs to run its
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 13
No. 3:11-cv-05503-BHS
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No reasonable juror could find that SYNC meets the select a processor limitations of
the asserted claims. SYNC therefore does not infringe claims 1 and 3 of the 739 patent.
7. Plaintiffs have failed to present sufficient evidence that SYNC meets the claimed
security limitations of claim 1 of the 119 patent
Claim 1 of the 119 patent includes two limitations regarding security: the first requires
the system to identify a security attribute; and the second requires the system to use the
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being processed by the system. Dr. Mins testimony regarding how SYNC allegedly meets the
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Dr. Min testified that both a link key and Bluetooth profiles are required to meet the
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identify a security attribute limitation, but referred to only the link key with respect to
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the use the identified security attribute limitation (3/11 Tr. at 196:13-24). This is fatal to Dr.
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Mins analysis because claim 1 of the 119 patent requires the same security attribute to be
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identified and used. (PX-4 [119 patent] at claim 1 (identify a security attribute. . . . use
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the identified security attribute. . . .).) Moreover, Dr. Min never explained how a Bluetooth
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profile provides any form of security in SYNC. Indeed, Dr. Min identified the Bluetooth
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For at least these reasons, no reasonable juror could find that SYNC meets the security
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limitations of claim 1 of the 119 patent, and there, SYNC does not infringe the 119 patent.
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8. Plaintiffs have failed to present sufficient evidence to prove that SYNC takes over
control and operation of a mobile device, as required by claims 1 and 3 of the 739
patent
Claims 1 and 3 of the 739 patent require that the claimed multiprocessor system take
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over control and operation of a connected device. The Special Master concluded that the
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take over control limitation requires the system to take over control and operation of the
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device such that the new device cannot be controlled and operated directly, outside the
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multiprocessor system. (Dkt. 165 at 71.) Indeed, Dr. Min dodged Plaintiffs own questions
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 14
No. 3:11-cv-05503-BHS
on direct when asked whether SYNC prevent[s] a user from using the phone outside the
context of the multiprocessor system (3/11 Tr. at 184:9-10), as required under the plain
meaning articulated by the Speecial Master, answering only that the phone must operate
SYNC does not take over control and operation of any device. Although mobile
devices can connect to and communicate with SYNC, a device connected to the SYNC system
continues to be controllable and operable directly, outside the SYNC system, and Dr. Min
Dr. Mins testimony, while conclusory, nevertheless fails to even contend that a phone
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connected to SYNC cannot be controlled and operated directly, outside the multiprocessor
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system. (See Dkt. 165 at 71; 3/12 Tr. [Min] at 183:2-22 ([W]hen a new phone gets
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connected, it is really no longer a phone as it existed on this phone. It is now a part of the
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SYNC system. So even if you press the same button on the same phone before it was
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connected, it would not be the same way after it is connected.).) Dr. Min never addresses
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Fords argument that a user can continue to control and operate their devices directly using the
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devices interface even when the devices are connected to SYNC, a fact which Dr. Min
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admitted during his deposition. See Dkt. 377, Ex. 12 [Min Dep. (Vol. II)] at 699:10-22 (Q.
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Now, Dr. Min, have you ever tested whether a person can continue to control and operate a
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device directly through that devices user interface while its connected to SYNC? A. Yeah,
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you can still use the control on the device. But it still acts, behave as a part of the SYNC
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system, not independent anymore. The behavior has certainly changed by being connected to
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the SYNC system, even after even if the device can use its own panel to control.)
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In sum, Dr. Min, the only one of Plaintiffs witnesses to testify regarding Fords alleged
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infringement, failed to provide competent evidence that SYNC takes over control and
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operation of a new device, as required by claims 1 and 3 of the 739 patent. As such, no
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 15
No. 3:11-cv-05503-BHS
1
2
9. Plaintiffs have failed to prove that SYNC configure[s] the particular one of the onboard processors to run the second software application moved from the memory
as required by the 739 patent, claims 1and 3
Claims 1 and 3 of the 739 patent require that the claimed system configure the
particular one of the on-board processors to run the second software application moved from
the memory. Plaintiffs have offered no evidence that SYNC meets this element, and indeed,
Dr. Min failed to address this element when testifying regarding claim 1 of the 739 patent. See
3/11 Tr. [Min] at 180:20-183:16 (skipping from automatically move the second software
application from the memory in the multiprocessor network to the particular one of the on-
board processors selected by the data manager limitation (180:20-23) to wherein running the
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second software application causes the particular one of the on-board processors to take over
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control and operation of the new device limitation (183:15-19) with no discussion of the
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intervening limitation (configure[s] the particular one of the on-board processors to run the
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particular one of the on-board processors limitation, they have not carried their burden of
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proof to show that SYNC meets each and every element of the asserted claims. As a result, no
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reasonable juror could find that SYNC infringes claims 1 or 3 of the 739 patent, and a
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B.
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Specifically, Dr. MinPlaintiffs only witness regarding infringementdid not provide any
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III.
DAMAGES
A.
Eagle Harbor Has Failed To Prove A Reasonable Royalty For The 137 Patent
Mr. Wagner provided insufficient evidence with respect to a reasonable royalty on APA
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Federal Circuit requires that damages for alleged infringement of a method claim be tied to
evidence of use. Lucent Technologies, Inc. v. Gateway, Inc., 580 F.3d 1301, 1334 (Fed. Cir.
2009) (rejecting damages award for infringement of patented method where the evidence of
record is conspicuously devoid of any data about how often consumers use the patented
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invention). Cardiac Pacemakers, Inc. v. St. Jude Med., Inc., 576 F.3d 1348, 1359 (Fed. Cir.
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2009) ([Plaintiff] can only receive infringement damages on those devices that actually
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performed the patented method during the relevant infringement period.). This principle was
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confirmed by the Federal Circuit in Mirror Worlds, LLC v. Apple Inc., 692 F.3d 1361 (Fed. Cir.
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2012). In Mirrorworlds, the Federal Circuit found no indirect infringement, and therefore no
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damages, where the plaintiff failed to offer any evidence that the patented method at issue in
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that case was actually used. The Court held that capability of infringement, without evidence of
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actual use is not sufficient to find inducement of infringement of a method patent. Id.
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Instead, the Federal Circuit held that [e]vidence of actual use of each limitation is required.
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Id.
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Neither Mr. Wagner nor Dr. Min, on whom Mr. Wagner relies for his opinions related
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to APA and the 137 patent, have offered any evidence at trial regarding evidence of actual use
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of each limitation in Claim 29 of the 137 patent. (Trial Day 3; Trial Day 5.) The Court
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correctly excluded Mr. Wagners ultimate conclusion of APA damages as a result of his failure
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to cite any evidence of actual use of the patented method in his expert reports. (Dkt. No. 575 at
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5.) Because Eagle Harbor has offered no evidence at trial that the asserted method in the 137
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patent is actually used, the Court should grant judgment as a matter of law that Plaintiffs have
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Second, Mr. Wagner failed to apportion patented features from non-patented features in
the APA system. Mr. Wagner testified that APA includes features, such as automated steering,
that are not alleged to infringe the 137 patent. (Trial Day 5.) Mr. Wagner also testified that he
included in his damages calculation a number of other hardware components of APA, including
the APA ultrasonic sensors, steering angle sensors, and other wiring components, that Plaintiffs
did not invent. (Id.) Accordingly, Ford is entitled to judgment as a matter of law that Mr.
Wagner has failed to prove damages or a reasonable royalty related the 137 patent for this
additional reason.
B.
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SYNC damages related to SYNC is appropriate because Eagle Harbor has failed to provide a
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In calculating damages for a multi-component product like SYNC, the Federal Circuit
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has held that the governing rule is that the ultimate combination of royalty base and royalty
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rate must reflect the value attributable to the infringing features of the product, and no more.
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Ericsson, Inc. v. D-Link Sys., Inc., 773 F.3d 1201, 1226 (Fed. Cir. 2014).
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agree that that the alleged patented technology does not drive demand for Fords vehicles.
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(Trial Day 5.) As a result, Federal Circuit precedent requires Mr. Wagner to identify the
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smallest salable patent practicing unit, and then apportion the SSPPU to reflect the value of the
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claimed technology. LaserDynamics, Inc. v. Quanta Computer, Inc., 694 F.3d 51, 67 (Fed. Cir.
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2012) (We reaffirm that in any case involving multi-component products, patentees may not
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calculate damages based on sales of the entire product, as opposed to the smallest salable
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patent-practicing unit); VirnetX v. Cisco Sys., Inc., 767 F.3d 1308, 1329 (Fed. Cir. 2014)
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(The law requires patentees to apportion the royalty down to a reasonable estimate of the
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value of its claimed technology, or else establish that its patented technology drove demand for
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the entire product.). Eagle Harbor has failed to meet this burden as a matter of law.
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 18
No. 3:11-cv-05503-BHS
First, Mr. Wagner conceded in his testimony at trial that he did not perform any
analysis to determine the SSPPU for SYNC. (Trial Day 5.) As a result, his conclusions do not
comply with the fundamental rule of identifying the SSPPU and apportioning the SSPPU to
reflect only the value of the patented features. While Mr. Wagner purported to rely on Dr. Min
to supply his conclusion that the SYNC system is the SSPPU, (id.) Dr. Min did not address this
issue in his trial testimony (id.). Accordingly, Mr. Wagner and Eagle Harbor have failed to
establish the SSPPU as a matter of law. See e.g., Tokio Marine & Fire Ins. Co. v. Norfolk &
Western Ry.Co., 172 F.3d 44, 199 WL 12931 at *4 (4th Cir. 1999) (one expert may not give
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Second, Mr. Wagner failed to apportion damages as required by Federal Circuit law.
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Ericsson, 773 F.3d at 1233 (patentee should only be compensated for the benefit derived from
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his invention and nothing more). SYNC is a system comprised of both hardware and software
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components. (Trial Day 5.) Mr. Wagner testified that his damages opinion is based on his
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calculation of incremental profits for the entire SYNC system, including hardware components.
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(Id.) Yet, he admitted that Plaintiffs did not invent any of the hardware, including the
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processors and other hardware modules, that make up the SYNC system. (Id.) Mr. Wagners
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failure to exclude these hardware components renders his royalty conclusion unsupportable as a
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matter of law. VirnetX, 767 F.3d at 1328 (vacating damages award where expert failed to
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apportion various features indisputably not claimed by [Plaintiff], e.g., touchscreen, camera,
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Third, Mr. Wagners royalty conclusions for SYNCwhich are not based on any
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calculation and rest on Mr. Wagners professional judgment are insufficient to prove
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damages as a matter of law. (Trial Day 5.) In General Elec. Co. v. Joiner, the Supreme Court
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held that nothing in either Daubert or the Federal Rules of Evidence requires a district court to
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admit opinion evidence that is connected to existing data only by the ipse dixit of the expert.
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522 U.S. 136, 146 (1997). But ipse dixit is all Mr. Wagner has offered here, and his damages
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 19
No. 3:11-cv-05503-BHS
opinions are therefore legally insufficient. See GPNE Corp. v. Apple, Inc 12-cv-02885, 2014
WL 1494247, at *4-*5 (N.D. Cal. Apr. 16, 2014) (Mr. Danskys analysis is an impermissible
black box without sound economic and factual predicates. Mr. Danskys 30 years of
experience does not constitute sufficient facts or data, or reliable principles and methods.).
C.
for alleged infringement of the 260, 739 and 119 patents by the SYNC system. If awarded,
such a verdict would far exceed the real-world value of Eagle Harbors patents. For example,
Mr. Wagner testified that his $24 per unit royalty for the 260, 739 and 119 patents is more
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than 100 times greater than the royalty rates set forth in Fords license agreement with Richard
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Himmelstein. (Trial Day 5.) Mr. Wagner similarly testified that his $246 million damages
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claim is twenty-times greater than the $12 million price that Eagle Harbor paid to Medius, Inc.
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for the Medius patent portfolio in an arms-length transaction, and nearly fifty times greater than
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the next highest offer to purchase the Medius patent portfolio. (Id.) In addition, while it has
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been precluded from presenting a damages number with respect to APA, Eagle Harbor has
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requested a rate of $70 per unit 14 times the royalty in Fords license with Continental Teves,
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which Dr. Min admits is marginally technically comparable to the 137 patent. (Id.) A
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damages award consistent with Mr. Wagners opinions would be excessive because it exceeds
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the maximum amount that a reasonable jury could find to be compensatory. See Atlas-Pac.
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Engg Co. v. Geo. W. Ashlock Co., 339 F.2d 288, 289-90 (9th Cir. 1964) (finding that
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reasonable royalty damages based on Defendants total income from rental of the infringing
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IV.
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DROPPED CLAIMS
In addition to the foregoing, Ford also seeks a judgment of noninfringement with
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respect to the previously-asserted patent claims that Plaintiffs have dropped during the course
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of the litigation. Ford intends to file a supplemental brief with respect to this issue, and will
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provide the Court with a list of the previously-asserted claims at that time.
FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 20
No. 3:11-cv-05503-BHS
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FORDS MOTION FOR JUDGMENT
AS A MATTER OF LAW - 21
No. 3:11-cv-05503-BHS
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CERTIFICATE OF SERVICE
I certify that a copy of the foregoing document was filed electronically with the Court
and thus served simultaneously upon all counsel of record, this 17th day of March, 2015.
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CERTIFICATE OF SERVICE
No. 3:11-cv-05503-BHS