Google Inc. v. Rockstar Consortium US LP et al

Filing 31

Declaration of Kristin J. Madigan in Support of 30 Google Inc.'s Opposition to Defendants' Motion to Dismiss or Transfer filed byGoogle Inc.. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19 - Part 1 of 3, # 20 Exhibit 19 - Part 2 of 3, # 21 Exhibit 19 - Part 3 of 3, # 22 Exhibit 20, # 23 Exhibit 21 - Part 1 of 2, # 24 Exhibit 21 - Part 2 of 2, # 25 Exhibit 22, # 26 Exhibit 23, # 27 Exhibit 24, # 28 Exhibit 25, # 29 Exhibit 26, # 30 Exhibit 27, # 31 Exhibit 28, # 32 Exhibit 29, # 33 Exhibit 30, # 34 Exhibit 31, # 35 Exhibit 32, # 36 Exhibit 33, # 37 Exhibit 34, # 38 Exhibit 35, # 39 Exhibit 36, # 40 Exhibit 37)(Related document(s) 30 ) (Warren, Matthew) (Filed on 2/7/2014) Modified on 2/10/2014 (cpS, COURT STAFF).

EXHIBIT 26

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LAW JOURNAL

Patent Wars Erupt Again in Tech Sector
Consortium Including Apple, Microsoft, Ericsson Sues Google and Makers of Android Phones
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By ASH BY JON ES

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Nov. 3, 2013 6:31 p.m. ET

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The long-running patent war among the technology industry's heavyweights just grew a
whole lot bigger—and more controversial.
After a brief hiatus for major new litigation, a joint venture owned by Apple Inc.,
AAPL +0.12% Microsoft Corp. MSFT -3.59% , BlackBerry Ltd. BB.T -4.45% , Ericsson
Inc. and Sony Corp. 6758.TO -2.77% launched a barrage of new lawsuits against a group
of defendants that include Google Inc., GOOG -4.03% Samsung Electronics Co.
005930.SE -0.63% , LG Electronics Inc., 066570.SE -3.48% HTC Corp. 2498.TW -2.51%
and Huawei Technologies Co.

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The suits, brought by the so-called Rockstar
Consortium, largely position companies that don't sell
smartphones built around Google's Android operating
system against those that do. Reuters

The suits, brought by the Rockstar
Consortium, largely position companies that
don't sell smartphones built around
Google's Android operating system against
those that do. The suits accuse most of the
defendants of violating patents involving
smartphone designs and features. The
litigation also targets parts of Google's core
Web-search technology, based on patents
Rockstar bought from Nortel Networks Inc.
in 2011 after defeating Google in a bidding
war.

That purchase of the 6,000 Nortel patents caused anxiety at the Justice Department. A
chief concern was that Apple and Microsoft, which took ownership of many patents related
to wireless standards, rather than leave them with Rockstar, would use the patents to
quash competition.
The Justice Department ultimately blessed the deal last year after getting concessions
from the companies that they would agree to license the patents on "fair, reasonable and
nondiscriminatory" terms.
The patents at the heart of the Rockstar suits filed last week don't pertain to standards.
Also, the Justice Department's agreements were with Apple and Microsoft, not the
consortium, which was formed during the bidding for the Nortel patents. Rockstar took
ownership of most of the patents that the companies bought.
Rockstar says the handset makers have infringed patents related to some basic features
of many smartphones, including a 2000 patent that relates to navigating through
documents on a hand-held device. Rockstar is seeking injunctions to prevent the handset
makers from infringing its patents and pursuing unspecified damages from the handset
makers and Google.
Some legal experts expect the lawsuits will trigger new attention to Rockstar, largely
because it gives the appearance that three leading competitors to Android are teaming up

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"Alarm bells have to be going off at the Justice Department," said Michael Carrier, a
professor at Rutgers School of Law who specializes in antitrust and patents.
The Justice Department declined to comment.
Rockstar Chief Executive John Veschi said the consortium, not the shareholder
companies, made the decision to sue. "This really has nothing to with Apple or Microsoft,"
he said.
Mr. Veschi said that his efforts to license the patents hadn't gone as well as he had hoped
in 2011. "I figured that given the price that parties were willing to pay for these patents,
talks to license them would be much easier," Mr. Veschi said. "We were reluctant to sue,
but since we've paid the ante, I'm more than eager to enter good-faith negotiations."
Google, Samsung, LG and Huawei declined to comment on the lawsuits. HTC and three
other defendants—Pantech Co., ZTE Corp. 000063.SZ -1.70% and Asustek Computer Inc.
2357.TW -2.42% —didn't return requests for comment.
"Although BlackBerry owns shares in Rockstar…BlackBerry does not have the voting
power to control Rockstar's actions with respect to litigations," a BlackBerry
spokeswoman said. Apple, Microsoft and Ericsson declined to comment. Sony, which
makes Android phones, also declined to comment.
Technology companies have gotten used to patent litigation in recent years. The biggest
players have sued and countersued in the U.S. and elsewhere, accusing each other of
stealing their inventions.
Little has been resolved. Some of the suits have settled. Judges or juries have decided
several others, most notably the Apple-Samsung dispute that ended last year in a $1.05
billion jury verdict in favor of Apple. The judge on that case later cut the award by about
40% and ordered a retrial on several damages issues, which is set to begin next week.
Several cases are on appeal.

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Nevertheless, the Rockstar lawsuits, filed Thursday in federal court in Marshall, Texas,
sent shock waves through an industry for which courtroom brawling has become the
norm.
The Nortel patent portfolio at the center of the suits had been the subject of a high-stakes
battle between Google and the Rockstar group 21/2 years ago. Google bid as much as
$4.4 billion for the patents, but Rockstar won with a $4.5 billion bid.
The new wave of suits reflects a marketplace where Android-powered phones have
outsold their competitors by a wide margin in recent years. Android controls three-quarters
of the world-wide market for smartphones, according to research firm IDC. Phones
powered by operating systems owned by Apple, Microsoft and BlackBerry make up the
bulk of the rest.
Mr. Veschi said Rockstar's lawsuit is legitimate under the settlement with the government.
He said the agreements made by Apple and Microsoft and the Justice Department only
applied to the patents that the companies held on to, not to Rockstar or its 4,000 patents.
"We got the OK to go off and assert these patents, and that's exactly what we're doing," he
said.
—Rolfe Winkler and Daisuke Wakabayashi contributed to this article.
Write to Ashby Jones at [e-mail]
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