Cascades Computer Innovation LLC v. RPX Corporation et al

Filing 161

ORDER by Judge Yvonne Gonzalez Rogers denying 155 Motion to Lift Stay and EXTENDS Stay to be lifted effective 7/31/15. A CMC is set for 9/14/15. (fs, COURT STAFF) (Filed on 3/23/2015)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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CASCADES COMPUTER INNOVATION LLC,
Plaintiff,

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United States District Court
Northern District of California

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v.
RPX CORPORATION, et al.,

Case No.: 12-CV-1143 YGR
ORDER: (1) DENYING MOTION TO LIFT STAY;
(2) EXTENDING STAY AND SETTING CASE
MANAGEMENT CONFERENCE; AND (3)
DENYING REQUEST FOR CERTIFICATION OF
INTERLOCUTORY APPEAL
Re: Dkt. No. 155

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Defendants.
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Before the Court is plaintiff Cascades Computer Innovation LLC’s Motion to Lift Stay.

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(Dkt. No. 155-1 (“Mot.”).) Defendants oppose the motion. (Dkt. No. 157 (“Oppo.”).) Having

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carefully considered the papers submitted and the record in this case,1 and being fully informed

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thereon, the Court DENIES plaintiff’s motion to lift the stay at this juncture. However, given the

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near conclusion of the patent trial justifying the stay, the stay will be lifted on July 31, 2015.

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I. RELEVANT BACKGROUND
The instant dispute concerns an alleged antitrust price-fixing conspiracy regarding licenses

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to certain patents. On March 4, 2014, the Court stayed this litigation pending resolution of a case in

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the Northern District of Illinois, Cascades v. Motorola Mobility et al., No. 11‐cv‐4574 MFK

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(“Illinois Action”), involving one of the critical patents at issue here. (Dkt. No. 133 at 3

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(“[S]ubstantial efficiencies may result from allowing the patent litigation to run its course before

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proceeding to the merits of the antitrust action.”).) The stay has since been extended until June 22,

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2015, as the Illinois Action continued to run its course. (See Dkt. Nos. 150, 154.) On January 6,

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The Court vacated the hearing on this motion pursuant to Civil Local Rule 7-1(b) and
Federal Rule of Civil Procedure 78. (Dkt. No. 160.)

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2015, Judge Kennelly granted in part and denied in part a motion for summary judgment for non-

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infringement in the Illinois Action. See Illinois Action, Dkt. Nos. 223, 229. That case is now set

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for a one-week jury trial starting on July 13, 2015. No delays are expected.

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II. ORDER DENYING MOTION TO LIFT STAY

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A.

LEGAL FRAMEWORK

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A district court has discretionary power to stay proceedings before it. See Landis v. North
American Co., 299 U.S. 248, 254 (1936) (“[T]he power to stay proceedings is incidental to the

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power inherent in every court to control the disposition of the causes on its docket with economy of

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time and effort for itself, for counsel, and for litigants.”). The court “may, with propriety, find it is

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efficient for its own docket and the fairest course for the parties to enter a stay of an action before

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United States District Court
Northern District of California

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it, pending resolution of independent proceedings which bear upon the case.” Leyva v. Certified

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Grocers of Cal. Ltd., 593 F.2d 857, 863 (9th Cir. 1979).

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“[T]he same court that imposes a stay of litigation has the inherent power and discretion to

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lift the stay.” Akeena Solar Inc. v. Zep Solar Inc., No. C 09–05040 JSW, 2011 WL 2669453, at *2

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(N.D. Cal. July 7, 2011) (quoting Canady v. Erbe Elektromedizin GmbH, 271 F. Supp. 2d 64, 74

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(D.D.C. 2002)). The court may lift the stay if the circumstances warranting its imposition have

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since “changed significantly.” Evolutionary Intelligence, LLC v. LivingSocial, Inc., No. 13-CV-

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04205-WHO, 2014 WL 2735185, at *2 (N.D. Cal. June 16, 2014) (quoting Canady, 271 F. Supp.

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2d at 74).

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B.

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The stay was implemented because “substantial efficiencies may result from allowing the

ANALYSIS

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patent litigation to run its course before proceeding to the merits of the antitrust action.” (Dkt. No.

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133 at 3.) For instance, “if the Illinois litigation determines that Plaintiff’s ’750 Patent is invalid,

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any damage stemming from a refusal to negotiate a license under that patent may well prove to be

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illusory.” (Id.) “Thus, the Illinois litigation has the potential to narrow substantially, or moot

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entirely, the antitrust issues now before this Court.” (Id.) Judge Kennelly’s recent order, clearing

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the way for a jury trial in the near future, does not justify lifting the stay. To the contrary, it

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strengthens the justification for maintaining the stay, because a relevant judgment should soon issue

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in that case. Defendant reiterates its previous argument, claiming even if it suffers an adverse

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decision in the Illinois Action, the instant action will not be entirely resolved. (Dkt. No. 159

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(“Reply”) at 1; see also Dkt. No. 122 at 1.) However, even if the Illinois Action only substantially

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narrows the issues involved here, maintaining the stay for a few more months is warranted.

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III. ORDER EXTENDING STAY AND SETTING CMC
The stay is currently in place only until June 22, 2015. (Dkt. No. 154.) In light of the

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upcoming one-week trial, set for July 13, 2015, and for the reasons stated above, the Court hereby

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EXTENDS the stay to be lifted effective July 31, 2015 to allow that trial to run its course before this

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case resumes. A case management conference (“CMC”) is SET for September 14, 2015.

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United States District Court
Northern District of California

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IV. ORDER DENYING MOTION FOR INTERLOCUTORY APPEAL
Plaintiff also requested, in its reply brief in support of the motion to lift the stay, that the

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Court certify this issue for interlocutory appeal under 28 U.S.C. § 1292(b) in the event that it

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denied the motion. (Reply at 2.)

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A.

LEGAL FRAMEWORK

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Typically, a district court’s ruling is not appealable until after entry of final judgment. In re

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Dynamic Random Access Memory (DRAM) Antitrust Litig., No. 02-MD-1486, 2008 WL 863994, at

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*1 (N.D. Cal. Mar. 28, 2008). However, under 28 U.S.C. section 1292(b), the district court may

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certify appeal of an interlocutory order if: (1) the order involves a controlling question of law, (2)

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appealing the order may materially advance the ultimate termination of the litigation, and (3) there

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is substantial ground for difference of opinion as to the question of law. James v. Price Stern

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Sloan, Inc., 283 F.3d 1064, 1067 n.6 (9th Cir. 2002). “Section 1292(b) is a departure from the

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normal rule that only final judgments are appealable, and therefore must be construed narrowly.”

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Id. Courts apply the statute’s requirements strictly, and grant motions for certification only when

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exceptional circumstances warrant it. See Coopers & Lybrand v. Livesay, 437 U.S. 463, 475

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(1978). A party seeking certification to appeal an interlocutory order has the burden of establishing

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the existence of such exceptional circumstances. Id. A party must establish that all three

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requirements of section 1292(b) are met in order to seek an appeal of an interlocutory order. Couch

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v. Telescope Inc., 611 F.3d 629, 633 (9th Cir. 2010).

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B.

ANALYSIS

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Plaintiff has failed to establish any of the three requirements for section 1292(b)

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certification. Indeed, plaintiff only directly addressed its request for certification in a single

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sentence:

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If the stay cannot be lifted now that all the motions for summary
judgment have been denied, Cascades respectfully asks that the Court
certify under 28 U.S.C. § 1292(b) the question of the appropriateness
of granting continuing stays because of the mere pendency of patent
infringement litigation on one of 38 patents that were subject to the
illegal action.

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(Reply at 2.)
Nevertheless, the Court has considered the request. Here, the first and third factors fuse,

United States District Court
Northern District of California

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because the request does not appear to relate to a specific controlling question of law, but rather to

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the application of well-established legal precedent to the specific factual circumstance at issue here.

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As for the second factor, in light of the Court’s intention, noted herein, for the stay to be lifted in

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less than five months, it is unclear how an interlocutory appeal—which would itself consume the

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resources of the parties and the Ninth Circuit and likely take several months to resolve—would

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materially advance the ultimate termination of this case. Therefore, the request for 1292(b)

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certification is DENIED.

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V. CONCLUSION

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For the foregoing reasons, the Court DENIES plaintiff’s Motion to Lift Stay and EXTENDS

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the stay to be lifted effective July 31, 2015 in light of the upcoming trial in the Illinois Action. A

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CMC is SET for September 14, 2015.

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This Order terminates Docket Number 155.

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IT IS SO ORDERED.

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Date: March 23, 2015

_______________________________________
YVONNE GONZALEZ ROGERS
UNITED STATES DISTRICT COURT JUDGE

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