Morris Reese v. AT&T Mobility II LLC

Filing 36

ORDER GRANTING AT&T Mobility II LLC. MOTION FOR SUMMARY JUDGMENT 28 . A Judgment will issue. The parties are directed to file a joint status report detailing what issues, if any, remain for this Court to decide by Judge Otis D. Wright, II. (lc). Modified on 5/9/2014. (lc).

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O 1 2 3 4 5 6 7 United States District Court Central District of California 8 9 10 11 MORRIS REESE, Plaintiff, 12 13 14 15 Case No. 2:13-cv-05198-ODW(PLAx) v. ORDER GRANTING MOTION FOR SUMMARY JUDGMENT [28] AT&T MOBILITY II, LLC, Defendant. 16 17 I. INTRODUCTION 18 Plaintiff Morris Reese notified virtually the entire cellular wireless industry of 19 U.S. Patent No. 6,868,150 (“the ’150 Patent”) in 2005 through letters alleging that 20 providing call-waiting and caller-ID services infringed the ’150 Patent. But it was not 21 until May 2013—more than eight years later—that Reese filed patent-infringement 22 suits against the five cellular service providers. Finding this delay unfair, the five 23 service providers, including Defendant AT&T Mobility II, Inc., all individually filed 24 motions for summary judgment against Reese based on the defense of laches. Faced 25 with dismissal of his current suits because of his prolonged delay, Reese now offers 26 excuses—such as his illness and involvement in other litigation—to justify his delay 27 in bringing suit. Because none of Reese’s explanations excuse his delay, the Court 28 GRANTS AT&T’s Motion for Summary Judgment. (ECF No. 28.) 1 II. FACTUAL BACKGROUND 2 Reese is the sole named inventor on the ’150 Patent, which issued on March 15, 3 2005. (SUF ¶¶ 1–2; Ex. 1.) The ’150 Patent is a continuation of the ’009 Patent 4 which issued on July 30, 2002. The ’150 Patent expired in 2011, two years prior to 5 Reese’s suit against AT&T. (SUF ¶ 3.) 6 On April 13, 2005, Reese sent a letter to Cingular Wireless LLC asserting that it 7 infringed the ’150 Patent with its call-waiting ID service. (SUF ¶ 5; Mot. Ex. 4.) The 8 April 13, 2005 letter informed Cingular of the ’150 Patent, and directed it in particular 9 to claims 25 and 36—which Reese indicated were “applicable to [Cingular] customers 10 subscribed to ‘Call Waiting ID’ service.’” (Id.) Reese asserted that for Cingular’s to 11 continue to provide that service to its customers, AT&T required a license from Reese. 12 (Id.) Reese also sent a second letter to Cingular on May 11, 2006, (Mot. Ex. 5.) 13 Reese did not inform Cingular in either letter that it would be sued if it did not take a 14 license. (Mot. Exs. 4, 5.) 15 On April 13, 2005, Cingular Wireless LLC was a parent company of Cingular 16 Wireless II LLC. (Begué Del. ¶ 2.) Both Cingular Wireless LLC and Cingular 17 Wireless II LLC operated to provide telephone services marketed under the 18 “Cingular” name. (Id. ¶ 3.) On January 8, 2007, Cingular Wireless LLC changed its 19 name to AT&T Mobility LLC. (Id. ¶ 2; Ex. A.) Similarly, on April 20, 2007, Cingular 20 Wireless II LLC changed its name to AT&T Mobility II LLC. (Id. ¶ 2; Ex. B.) The 21 marketing of the telephone services changed to the “AT&T” name as well. (Id. ¶ 3.) 22 AT&T continues to provide the same call-waiting and caller-ID services provided by 23 Cingular in 2005 and accused by Reese of infringing the ’150 Patent. (Id.) 24 Cingular was one of twelve different telecommunications companies who 25 received infringement notices from Reese in 2005—BellSouth, Verizon, Motorola, 26 Nextel, Nokia, Qwest Communications, Samsung, SBC Communications, Sprint, and 27 T-Mobile also received letters. (Mot. Ex. 4.) Between 2005 and 2013, Reese litigated 28 2 1 several other patent-infringement lawsuits across the country.1 (SUF ¶¶ 10–11.) Four 2 of these suits involved the ’150 Patent or its immediate parent. (Id. ¶¶ 12–13.) Reese 3 was represented by counsel for all of these suits, with the exception of Reese v. 4 Verizon Cal., Inc. et al., Case No. CV-11-01934 SJO (C.D. Cal. Aug. 11, 2011), which 5 he litigated pro se. (Reese Decl. ¶ 33.) 6 From 2000 to 2008, Reese experienced serious heath problems. Reese began 7 dialysis treatments for renal failure in 2000. (Id. ¶ 29.) Reese’s dialysis treatments 8 were performed three times per week until Reese had a kidney transplant in 2008. (Id. 9 ¶¶ 30–32.) 10 On May 29, 2013, Reese filed suit against AT&T—along with Sprint Nextel 11 Corp., TracFone Wireless, Inc., United States Cellular Corporation, Verizon, and T- 12 Mobile USA, Inc. (Morris Reese v. Sprint Nextel Corporation et al., 2:13-cv-03811- 13 ODW-PLA (C.D. Cal. May 29, 2013) ECF No. 1.) The Court severed the case on July 14 15, 2013. (Id. ECF No. 18.) Reese refiled a separate complaint against AT&T on July 15 18, 2013. (ECF No. 1.) III. 16 LEGAL STANDARD 17 Summary judgment should be granted if there are no genuine issues of material 18 fact and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 19 56(c). The moving party bears the initial burden of establishing the absence of a 20 genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323–24 (1986). 21 Once the moving party has met its burden, the nonmoving party must go beyond the 22 pleadings and identify specific facts through admissible evidence that show a genuine 23 1 24 25 26 27 28 Reese v. BellSouth Telecommunications, No. 5:97-cv-00568-BO (E.D.N.C Nov. 14, 1997); Reese v. U.S. West Inc., No. 98-cv-80575-CRW (S.D. Iowa Mar. 12, 1999) (transferred to Reese v. U.S. West Inc., No. 1:99-cv-00773-WDM-MJW (D. Col. Sept. 23, 2002)); N. Telecom, Inc. v. Reese, No. 2:98-cv- 09591-LGB (C.D. Cal. Feb. 9, 1999) (transferred to N. Telecom, Inc. v. Reese, No. 4:99-cv80081-CRW (S.D. Iowa Mar. 10, 1999)); Reese v. Aastra Technologies, No. 2:03-cv-00267-TJW (E.D. Tex. Feb. 9, 2005); Reese v. Samsung Telecommunications America, L.P., No. 2:05-cv- 00415DF (E.D. Tex. Jan. 31, 2007); Reese v. Southwestern Bell Telephone, L.P., et. al., Case No. 2:07CV-219 (E.D. Tex. Dec. 23, 2008); and Reese v. Verizon California, Inc. and AT&T California, Case No. CV-11-01934 SJO (C.D. Cal. Dec. 21, 2012). 3 1 issue for trial. Id.; Fed. R. Civ. P. 56(c). Conclusory or speculative testimony in 2 affidavits and moving papers is insufficient to raise genuine issues of fact and defeat 3 summary judgment. Thornhill’s Publ’g Co. v. GTE Corp., 594 F.2d 730, 738 (9th Cir. 4 1979). 5 A genuine issue of material fact must be more than a scintilla of evidence, or 6 evidence that is merely colorable or not significantly probative. Addisu v. Fred Meyer, 7 198 F.3d 1130, 1134 (9th Cir. 2000). 8 resolution of that fact might affect the outcome of the suit under the governing law. 9 Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1968). An issue is “genuine” if 10 the evidence is sufficient for a reasonable jury to return a verdict for the nonmoving 11 party. Id. Where the moving and nonmoving parties’ versions of events differ, courts 12 are required to view the facts and draw reasonable inferences in the light most 13 favorable to the nonmoving party. Scott v. Harris, 550 U.S. 372, 378 (2007). 14 IV. A disputed fact is “material” where the DISCUSSION 15 In the interest of fairness, those who are granted a monopoly under the patent 16 system have an obligation to enforce their rights in a timely manner. A defendant in a 17 patent-infringement suit may raise the equitable defense of laches when the plaintiff is 18 dilatory bringing suit and that delay prejudices the defendant. A.C. Aukerman Co. v. 19 R.L. Chaides Const. Co., 960 F.2d 1020, 1030 (Fed. Cir. 1992). In patent cases, laches 20 bars recovery of damages for any infringement that occurs prior to the filing of suit. 21 Id. at 1040. A laches defense is a matter within the trial court’s discretion based on 22 consideration of all of the facts in a particular case. Id. at 1040–41. 23 To prevail on a laches defense, a defendant must prove by a preponderance of 24 the evidence that: (1) the plaintiff knew or should have known of the infringement and 25 with that knowledge delayed filing suit for an unreasonable and inexcusable length of 26 time, and (2) the defendant was materially prejudiced by the delay. Id. at 1032; see 27 also Hearing Components, Inc. v. Shure, Inc., 600 F.3d 1357, 1375 (Fed. Cir. 2010). 28 Where the delay in filing the suit exceeds six years, the court will presume the delay 4 1 was unreasonable and prejudicial to the defendant. 35 U.S.C. § 286; Hearing, 600 2 F.3d at 1375 (citing Aukerman, 960 F.2d at 1035–36.) The burden is then on the 3 plaintiff to prove the existence and reasonableness of an excuse for the delay, and to 4 show a lack of prejudice to the infringer. Hearing, 600 F.3d at 1375. 5 Determining the length of the delay involves two sub-issues: when the delay 6 period begins to run and when the delay period ends. The delay period begins to run 7 from the time that the plaintiff had actual or constructive knowledge of the alleged 8 infringing activities. Aukerman, 960 F.2d at 1032; Hearing Components, 600 F.3d at 9 1375. But the plaintiff need not be certain that the conduct is infringing; time starts to 10 run when the patentee is aware of sufficient facts to form a reasonable belief that some 11 infringing conduct exists. Aukerman, 960 F.2d at 1032. The delay period ends no 12 later than the date of the filing of suit. (Id.) 13 The reasonableness of the delay is not determined by application of mechanical 14 rules. Aukerman, 960 F.2d at 1032. Rather, the reasonableness of the delay depends 15 on the particular facts and circumstances of the individual case. Id. The court must 16 consider and weigh any justification offered by the plaintiff for its delay. Id. at 1033. 17 Prejudice to the defendant may be either economic or evidentiary. Id. 18 Economic prejudice arises when a defendant incurs damages that would likely have 19 been prevented by earlier suit. See id. Economic prejudice is not merely damages 20 attributable to patent infringement liability. Id. at 1033. Evidentiary or “defense” 21 prejudice arises when the defendant can no longer present a full and fair defense on 22 the merits due to the plaintiff’s delay. Id. at 1032. This inability may be occasioned 23 by “the loss of records, the death of a witness, [or] the unreliability of memories of 24 long past events.” Id. 25 AT&T asserts that it is entitled to a laches presumption because of Reese’s eight 26 -year delay in filing suit. Reese contends that AT&T is not entitled to a laches 27 presumption because there is no evidence that the delay period, for laches purposes, 28 began to run in 2005. In the alternative, Reese argues that he can rebut the laches 5 1 presumption because his delay was reasonable and resulted in no prejudice to AT&T. 2 The Court considers each in turn. 3 A. Laches Presumption 4 AT&T asserts that it is entitled to a presumption that Reese’s delay in filing suit 5 was unreasonable and prejudicial to AT&T. In support of this assertion, AT&T argues 6 that Reese knew or should have known of AT&T’s alleged infringement as of April 7 13, 2005, when Reese sent the infringement-allegation letter to Cingular. Reese then 8 failed to formally assert his infringement claims against AT&T until 2013. AT&T 9 asserts that because this amounts to a more than eight-year delay, it is entitled to the 10 laches presumption under § 286. 11 Reese argues that the delay period did not begin to run on April 13, 2005 12 because AT&T didn’t exist in 2005. This argument has no merit. AT&T is the same 13 entity as the Cingular Wireless to which Reese directed his infringement allegation 14 letters—it merely underwent a corporate name change. (Begué Del. ¶¶ 2–3; Exs. A, 15 B.) In fact, in his amended interrogatory responses Reese recognized that Cingular 16 Wireless was the “predecessor company” and the “entity which became AT&T 17 Mobility II LLC.” (Galluzzo Decl. Ex. 8.) Reese also admitted that he first provided 18 notice to AT&T of his infringement claim “through correspondence to Cingular 19 Wireless sent April 13, 2005.” (Id.) 20 Two days after the Court granted AT&T’s request to file this Motion Reese 21 again amended his interrogatory responses; despite his prior admissions, Reese now 22 claims he did not become aware of AT&T until 2013. (Id. Exs. 9, 10.) This amended 23 response is self-serving, suspect, and insufficient to raise a genuine issue of material 24 fact. Accord Gagné v.Nw. Nat’l Ins. Co., 881 F.2d 309, 315 (6th Cir. 1989) (“a party 25 may not create 26 summary judgment has been made, which contradicts his earlier deposition 27 testimony”); Trans-Orient Marine Corp. v. Star Trading & Marine, Inc., 925 F.2d 566, 28 572 (2d Cir. 1991) (“a party may not, in order to defeat a summary judgment motion, a factual issue by filing 6 an affidavit, after a motion for 1 create a material issue of fact by submitting an affidavit disputing his own prior sworn 2 testimony”); Babrocky v. Jewel Food Co., 773 F.2d 857, 861 (7th Cir. 1985) (holding 3 that a “party should not be allowed to create issues of credibility by contradicting his 4 own earlier testimony.”); see also Anderson v. Liberty Lobby, Inc., 477 U.S. at 249(“If 5 the [non-movant’s] evidence is merely colorable . . . or is not significantly probative . . 6 . summary judgment may be granted.”). 7 Reese presents no authority for his assertion that AT&T, as a different legal 8 entity from Cingular, must independently show entitlement to a laches defense. There 9 has never been any magic in a corporate entity; Federal Circuit precedent confirms 10 that the related equitable defense of estoppel applies to successors-in-interest where 11 privity has been established. Radio Sys. Corp. v. Lalor, 709 F.3d 1124, 1131 (Fed. Cir. 12 2013); see also Jamesbury Corp. v. Litton Indus. Prods., Inc., 839 F.2d 1544, 1555 13 (Fed.Cir.1988), overruled on other grounds by Aukerman, 960 F.2d at 1042 (holding 14 that a successor-defendant is entitled to rely on the lack of communication to its 15 predecessor as well as to itself). Although generally personal in nature, equitable 16 defenses are available to successors-in-interest so long as the equitable doctrine’s aims 17 are not somehow frustrated by such an application. 18 The key inquiries for a laches defense are when Reese new of his infringement 19 claims, and how long Reese waited before asserting those claims. So long as the 20 corporate name change did not have the effect of concealing the entity’s identity— 21 such that Reese was impeded from bringing suit—there is no principled reason to 22 refuse to allow AT&T to assert Cingular’s laches defense. 23 Engineers, Inc. v. Duriron Co., Inc., No. 73-2640, 1976 WL 21019 (E.D. Pa. Feb. 19, 24 1976) (permitting “tacking” of the delay period for laches purposes where the identity 25 of the business entity remained unchanged after acquisition). To hold otherwise to 26 would be to exalt form over substance. Accord Autoclave 27 Here, Reese knew of Cingular’s infringement in 2005 as evidenced by his 28 infringement-allegation letter. (Mot. Ex. 4.) Cingular’s corporate name change to 7 1 AT&T did not change the corporation’s identity—the business was carried on and 2 controlled as it was before the change, just under a new name. (Begué Del. ¶¶ 2–3.) 3 There is no evidence that Reese was impeded from bringing suit by this name change. 4 Most importantly, AT&T continues to provide the same call-waiting and caller-ID 5 services provided by Cingular in 2005 that Reese asserts infringe the ’150 Patent. (Id. 6 ¶ 3.) Accordingly, AT&T may rely on the 2005 infringement-allegation letters sent to 7 Cingular for purposes of its laches defense. 8 In the alternative, Reese argues his letter to AT&T was not an infringement 9 allegation, but merely an invitation for AT&T to open licensing discussions with 10 Reese. Thus, Reese contends, there is no evidence that Reese actually knew of 11 AT&T’s infringement in 2005. This argument is contrary to the plain text of the letter. 12 Reese states in his letter to AT&T that in order for it to continue to provide call- 13 waiting-ID services, AT&T “requires a license from Mr. Reese.” (Mot. Ex. 1.) It 14 strains credibility to argue that a patent owner who demands that a company take a 15 license can somehow not know of his infringement claim on that patent. 16 Moreover, Federal Circuit precedent establishes that knowledge as to whether 17 the device actually infringes is not required to establish laches. A good-faith belief is 18 sufficient. Aukerman, 960 F.2d at 1032. Reese clearly believed that AT&T’s call- 19 waiting-ID services infringed the ’150 Patent—evidenced by his attempt to open 20 licensing negotiations in 2005. Accordingly, the Court finds that Reese had actual 21 knowledge of AT&T’s infringement at least on April 13, 2005. Because Reese failed 22 to formally assert his rights until 2013, AT&T is entitled to a presumption of laches. 23 Thus, Reese “must come forward with evidence sufficient to put the existence of these 24 presumed undisputed facts into genuine dispute, either by showing that the delay was 25 reasonable or that the movant did not suffer prejudice caused by the wait.” Id. 26 at 1038. 27 /// 28 /// 8 1 B. Reasonableness of the delay 2 Reese argues that even if he had knowledge of AT&T’s infringement in 2005, 3 his eight-year delay in filing suit was reasonable. Reese proffers two justifications for 4 his delay: his involvement in other litigation and his worsening medical condition. 5 Reese also claims he is entitled to leniency because he was representing himself for 6 some of the litigation. The Court addresses each in turn. 7 First, Reese argues that his eight-year delay in filing suit against AT&T was 8 reasonable because he was extensively involved in other litigation. On August 31, 9 2005, Reese filed suit against cellular phone manufacturers Samsung, Motorola, Sony, 10 Siemens, LG, RiM and Palm, alleging infringement of the ’009 Patent (the immediate 11 patent of the ’150 Patent). (Reese Decl. ¶ 17.) That suit continued through January 12 31, 2007. (Id. ¶ 18.) Four months later, Reese sued land-line telephone service 13 providers Southwestern Bell Telephone Company, GTE Southwest, and their parent 14 companies AT&T and Verizon, for infringement of the ’150 Patent. (Id. ¶ 21.) Reese 15 voluntarily dismissed AT&T and Verizon from that action, but later brought a separate 16 suit against the same companies that lasted from March 2011 to December 21, 2012. 17 (Id. ¶¶ 24, 33.) Approximately five months later, Reese filed this action against the 18 AT&T, again alleging infringement of the ’150 Patent. 19 Involvement in other enforcement litigation may, in some circumstances, 20 excuse a plaintiff’s delay in suing an alleged infringer. But the Federal Circuit has 21 held that a plaintiff’s calculated choice to proceed with certain lawsuits while delaying 22 others—absent other factors—is a strategic decision that does not excuse or otherwise 23 toll the presumption period for laches. Hall v. Aqua Queen Mfg., Inc., 93 F.3d 1548, 24 1554 (Fed. Cir. 1996). 25 In Hall, the Federal Circuit noted that delay occasioned by involvement in other 26 enforcement litigation may be reasonable if the alleged infringer has knowledge of 27 (1) the existence of the other litigation, and (2) the plaintiff’s intent to enforce its 28 rights against the infringer at the conclusion of the other litigation. Although there is 9 1 no rigid requirement that such notice be given, “[w]here there is prior contact 2 [between the patentee and the accused infringer], the overall equities may require 3 appropriate notice.” 4 Aukerman, 960 F.2d at 1039. Hall, 93 F.3d at 1554 (internal quotations omitted); accord 5 Here, AT&T received no communications from Reese for eight years after 6 receipt of the 2005 infringement-allegation letters. There is no evidence that AT&T 7 had any notice—from Reese or otherwise—that Reese intended to sue it after the 8 close of his other litigation. Reese’s eight-year silence made it reasonable for AT&T 9 to believe that Reese had simply declined to assert his rights against AT&T. Where 10 there is prior contact between the plaintiff and the accused infringer—especially when 11 the contact is in the form of an infringement accusation—notice becomes essential to 12 a finding of excusable delay. A clear indication that the plaintiff intends to enforce its 13 rights against the alleged infringer after the conclusion of the other litigation allows 14 the accused infringer an opportunity to take steps to protect itself from liability. 15 Accord Odetics, Inc. v. Storage Tech. Corp., 919 F. Supp. 911 (E.D. Va. 1996). Here, 16 AT&T had no such opportunity. 17 The equivocal nature of Reese’s contact with AT&T failed to give adequate 18 notice that it may be subject to suit in the future. The equities dictate that notice of 19 intent to pursue infringement claims against AT&T at the conclusion of Reese’s other 20 litigation was required in this case. Accordingly, Reese’s choice to strategically 21 pursue other lawsuits while ignoring AT&T is legally insufficient to overcome the 22 presumption of unreasonable delay. 23 Second, Reese argues that his delay in bringing suit was reasonable because of 24 the serious health problems he experienced from 2000 to 2008. He argues that his 25 ability to sue AT&T was significantly restricted because of his frequent dialysis 26 treatments and eventual kidney transplant. 27 Generally, illness is not recognized as an adequate excuse for a plaintiff’s delay 28 in bringing suit. And although Reese certainly was afflicted with a debilitating illness, 10 1 Reese’s assertion that his delay was necessary because of his failing health is directly 2 contradicted by his previous excuse—his extensive involvement in other litigation. 3 Notwithstanding his poor health, Reese was able to file multiple suits against other 4 infringers during his illness and litigate them to conclusion. (Reese Decl. ¶¶ 17–33.) 5 The fact that Reese was able to competently litigate several other lawsuits undermines 6 his contention that he was physically unable to pursue lawsuits against AT&T. 7 Moreover, Reese ignores the five years that have passed since his kidney 8 transplant. Even after his health issues ended in 2008, Reese did and said nothing 9 until he filed suit in 2013. Reese does not assert that his health issues continued after 10 2008. Thus, at a minimum Reese had three years after the resolution of his health 11 issues before laches would be presumed. 12 Finally, an inability to find willing counsel, another of Reese’s excuses, is 13 widely rejected as a legally cognizable reason to excuse an unreasonable delay in 14 filing suit. Hall, 93 F.3d at 1554. Additionally, Reese’s litigation history shows that 15 he has used multiple counsel at various times, and was fully capable of engaging in 16 different litigation activities with different counsel—or by himself. 17 C. Prejudice 18 A plaintiff can also rebut the laches presumption by raising a genuine fact issue 19 regarding the absence of prejudice to the defendant. Aukerman, 960 F.2d 1030. Reese 20 contends that his delay did not materially prejudice AT&T. But Reese attempts to 21 prove this lack of prejudice by asserting that AT&T has failed to demonstrate that it 22 has been prejudiced by Reese’s delay—thus placing the burden of production on 23 AT&T. This is incorrect; the Auckerman presumption places the burden of production 24 on the plaintiff. Hall, 93 F.3d at 1553. Thus it is Reese’s burden to come forward 25 with affirmative evidence of a lack of prejudice. AT&T may remain “utterly mute on 26 the issue of prejudice and nonetheless prevail[].” Hall, 93 F.3d at 1554. 27 /// 28 /// 11 1. Evidentiary prejudice 1 2 Reese has provided no affirmative evidence that AT&T will not suffer 3 evidentiary prejudice from his eight-year delay. In contrast, AT&T argues that it will 4 suffer evidentiary prejudice because Reese is unable to account for evidence relevant 5 to AT&T’s defense of this action. Reese does not dispute that he no longer has a 6 complete of set documents produced in or generated during the course of his prior 7 litigation relating to ’150 Patent. (SUF ¶¶ 21–24.) To date, Reese has been unable to 8 produce all the documents that existed for the US West, Northern Telecom, Aastra, 9 Samsung, or Verizon California cases. (Id. ¶ 22.) Additionally, Reese does not 10 dispute that he no longer has a complete set of licensing agreements for the ’150 or 11 related patents. (Id. ¶¶ 21, 22, 24.) Reese’s prior counsel also admitted to destroying 12 68 folders of documents related to Reese’s prior litigation—some of which directly 13 involved the ’150 Patent. (Id. ¶ 25.) 14 The loss of these documents is problematic for two major reasons. the licenses—many of which were given to First, 15 because cell-phone-handset 16 manufacturers—may protect AT&T from Reese’s infringement allegations. If Reese 17 licensed customers to use handsets that subscribe to AT&T’s services or network, that 18 license may protect AT&T from infringement claims. Second, those licenses are 19 essential to allow AT&T to propose a reasonable-royalty rate for any potential 20 damages involving unlicensed products. In the absence of this evidence, AT&T’s 21 opportunity to defend itself against Reese’s infringement claim is somewhat less than 22 “full and fair.” 23 Reese attempts to argue that AT&T should endeavor to reconstruct the evidence 24 for its defense, which he alleges should still be available from some other sources. 25 But Reese presents no authority for his novel proposition that AT&T is required to 26 attempt to gather whatever evidence remains and hope that it works for their defense. 27 This burden lies with Reese, not AT&T. Consequently, Reese has not met his burden 28 to come forward with affirmative evidence of a lack of evidentiary prejudice. 12 1 2. Economic prejudice 2 Reese also argues that AT&T has failed to prove that it has been economically 3 prejudiced by Reese’s delay in filing. But again, it is not AT&T’s burden, as Reese 4 argues, to demonstrate economic prejudice in light of the laches presumption. Rather, 5 Reese has the burden of proving that AT&T has not been economically prejudiced by 6 Reese’s delay—which he does not attempt to do in his Opposition. Reese merely 7 attacks AT&T’s assertions of economic prejudice as “largely conclusory and lack[ing] 8 any proof.” (Opp’n 15.) This is insufficient. Accordingly, Reese has failed to adduce 9 any affirmative evidence that AT&T has not been economically prejudiced by Reese’s 10 eight-year delay in filing suit. V. 11 CONCLUSION 12 Based on the undisputed facts, AT&T is entitled to the presumption of laches. 13 Reese has failed to prove that his delay was reasonable, or that AT&T suffered no 14 prejudice as a result of the delay. Accordingly, for the reasons discussed above, 15 AT&T’s Motion for Summary Judgment is GRANTED. (ECF No. 28) A Judgment 16 will issue. The parties are directed to file a joint status report detailing what issues, if 17 any, remain for this Court to decide. 18 19 IT IS SO ORDERED. 20 21 May 9, 2014 22 23 24 ____________________________________ OTIS D. WRIGHT, II UNITED STATES DISTRICT JUDGE 25 26 27 28 13

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