Panasonic Corporation et al v. Encore Media Services, Inc. et al

Filing 123

FINDINGS OF FACT AND RECOMMENDATIONS TO DISTRICT JUDGE JOHN A. KRONSTADT REGARDING A CONTEMPT CITATION AGAINST MAX OPTICAL DISC, INC. AND MILESTONE ENTERPRISES signed by Magistrate Judge John E. McDermott. [See document for details.] (san)

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SIDLEY AUSTIN LLP
Jeffrey M. Olson (SBN 104074)
[e-mail]
Theodore W. Chandler (SBN 219456)
[e-mail]
555 West Fifth Street, Suite 4000
Los Angeles, California 90013
Telephone: [phone]
Facsimile: [phone]
Attorneys for Plaintiffs and Counter-Defendants
PANASONIC CORPORATION, SANYO
ELECTRIC CO., LTD., WARNER BROS.
HOME ENTERTAINMENT INC. and
MITSUBISHI ELECTRIC CORPORATION

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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WESTERN DIVISION

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215380338v.1

PANASONIC CORPORATION, et al., )
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Plaintiffs,
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v.
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ENCORE MEDIA SERVICES, INC., )
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et al.,
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Defendants.
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AND RELATED COUNTERCLAIMS )
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Case No. LA CV 15-2050 JAK (JEMx)
[PROPOSED] FINDINGS OF FACT
AND RECOMMENDATIONS TO
DISTRICT JUDGE JOHN A.
KRONSTADT REGARDING A
CONTEMPT CITATION AGAINST
MAX OPTICAL DISC, INC. AND
MILESTONE ENTERPRISES

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This Court having taken evidence and heard from Plaintiffs Panasonic Corp.,

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SANYO Electric Co., Ltd., Warner Bros. Home Entertainment Inc. and Mitsubishi

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Electric Corp. (collectively “Plaintiffs”) on June 17, 2016, makes the following

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FINDINGS:

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1.

This is a patent case. Plaintiffs sued Defendant Encore Media Services,

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Inc. (“Encore”) and other defendants for patent infringement on March 19, 2015.

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See ECF No. 1.

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2.

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Entry of default was recorded against Encore on March 8, 2016. See

ECF No. 93.
3.

Encore’s address as provided to the California Secretary of State is

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24853 Avenue Rockefeller, Valencia, CA 91355, and its CEO is Ping Liu. See ECF

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No. 97-5.

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4.

Encore, Max Optical Disc, Inc. (“Max Optical”) and Milestone

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Enterprises (“Milestone”) are related companies, and Plaintiffs have reasonably

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sought discovery of Plaintiffs’ purported damages resulting from patent

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infringement by Encore by serving subpoenas on Max Optical and Milestone. Both

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Max Optical and Milestone failed to respond to the subpoenas. See ECF No. 97

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(Plaintiffs’ Ex Parte Application For Order To Enforce Plaintiffs’ Subpoenas To

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Max Optical Disc, Inc. And Milestone Enterprises) and ECF 97-1 (supporting

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declaration and exhibits attached thereto).

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5.

Max Optical’s business and registered agent address as provided to the

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California Secretary of State is 24865 Avenue Rockefeller, Valencia, CA 91355, and

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its CEO and Registered Agent is Ting Hua Yu. See ECF No. 97-6.

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6.

Milestone’s business and registered agent address as provided to the

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California Secretary of State is 24865 Avenue Rockefeller, Valencia, CA 91355, and

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its CEO is Ping Liu and its Registered Agent is Yun Zhong Jin. See ECF No. 97-11.

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215380338v.1

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7.

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Service of Plaintiffs’ Ex Parte Application For Order To Enforce

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Plaintiffs’ Subpoenas was duly served on Max Optical and Milestone. See ECF No.

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105, including ECF No. 97-20 and ECF No. 98, referenced therein.
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On April 29, 2016, this Court issued an Order enforcing Plaintiffs’

subpoenas. See ECF No. 106.
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On May 2, 2016, the Order enforcing Plaintiffs’ subpoenas was duly

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hand served on both Max Optical and Milestone at 24865 Avenue Rockefeller,

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Valencia, CA 91355. See ECF No. 111.
10.

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Both Max Optical and Milestone failed to respond to the Order

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enforcing Plaintiffs’ subpoenas. See ECF No. 116 (Plaintiffs’ Ex Parte Application

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For An Order To Show Cause Why A Contempt Citation Should Not Issue And

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Request For Hearing Date And Attorney Fees And Costs), ECF 116-1 (supporting

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declaration and exhibits attached thereto), and ECF 118, Exhibits A and B

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(certificates of hand service of Ex Parte Application).
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On May 23, 2016, this Court issued an Order to show cause why Max

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Optical and Milestone should not be held in civil contempt for failing to comply

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with the Court’s Order. See ECF No. 117.
12.

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On May 24, 2016, the Order to Show Cause was duly hand served on

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both Max Optical and Milestone at 24865 Avenue Rockefeller, Valencia, CA 91355.

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See ECF No. 118, Exhibits C and D.
13.

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In accordance with Order to Show Cause, Plaintiffs filed a declaration

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of fees and costs that had been reasonably incurred relating to Plaintiffs’ efforts to

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take discovery from Max Optical and Milestone, and which was served on them.

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See ECF No. 119.
14.

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Both Max Optical and Milestone failed to file any objections to being

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held in civil contempt, in accordance with Order to Show Cause. See ECF No. 117,

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¶ 4.

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215380338v.1

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Both Max Optical and Milestone failed to appear at the hearing in

accordance with Order to Show Cause. See ECF No. 117, ¶ 3 and ECF No. 121.
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Plaintiffs have incurred substantial fees in pursing reasonable discovery

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from Max Optical and Milestone in the amount of $19,082, comprising $17,672 as

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set forth in ECF No. 119-1, p. 4, and an additional one hour ($470) for attending the

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June 17, 2016 hearing and an additional two hours ($940) for preparing the draft

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findings and recommendations.

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Plaintiffs have incurred substantial costs in pursing reasonable

discovery from Max Optical and Milestone in the amount of $2,099.06 as set forth in
ECF No. 119-1, p. 2.

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In view of these findings and for good cause shown, to District Judge John A.
Kronstadt, this Court makes the following RECOMMENDATIONS:

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1.

Both Milestone and Max Optical are held in civil contempt;

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2.

As against Milestone, and its CEO Ping Liu, and Max Optical, and its

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CEO Ting Hua Yu, jointly and severally, Plaintiffs are awarded both their

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reasonable attorney fees of $19,082 and their actual costs of $2,099.06; and

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3.

Milestone and Max Optical shall provide all of the discovery set forth

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in the Order enforcing Plaintiffs’ subpoenas, see ECF No. 106, by July 11, 2016, or

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additional sanctions will be considered by this Court.

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Dated: June 21, 2016

JOHN E. McDERMOTT
United States Magistrate Judge

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215380338v.1

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CERTIFICATE OF SERVICE

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In addition to counsel served by ECF, I hereby certify that on June 20, 2016, I

4 will cause a true and correct copy of the foregoing [PROPOSED] FINDINGS OF
5 FACT AND RECOMMENDATIONS TO DISTRICT JUDGE JOHN A.
6 KRONSTADT REGARDING A CONTEMPT CITATION AGAINST MAX
7 OPTICAL DISC, INC. AND MILESTONE ENTERPRISES by first class mail
8 delivery to:
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Max Optical Disc, Inc.

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24865 Avenue Rockefeller

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Valencia, California 91355

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Milestone Enterprises

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24865 Avenue Rockefeller

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Valencia, California 91355

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Daren M. Schlecter, Esq.

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Law Office of Daren M. Schlecter, A Prof. Corp.

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1925 Century Park East, Suite 830

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Los Angeles, California 90067

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215380338v.1

/s/ Jeffrey M. Olson
Jeffrey M. Olson, Esq.