Intel Corporation v. Future Link Systems LLC

Filing 153

MEMORANDUM ORDER regarding early summary judgment proceedings; the August 7, 2015 teleconference is cancelled. Signed by Judge Leonard P. Stark on 8/5/15. (ntl)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
INTEL CORPORATION,
Plaintiff,
C.A. No. 14-377-LPS

v.

FUTURE LINK SYSTEMS, LLC,
Defendant.

MEMORANDUM ORDER
At Wilmington this 5th day of August, 2015:
Having reviewed the parties' letter briefs regarding early summary judgment proceedings
related to Intel Corporation's ("Plaintiff') license defense (D.I. 142, 143, 146, 147) and
associated exhibits filed therewith, IT IS HEREBY ORDERED that the relief requested in
Plaintiffs opening letter brief (D.I. 143) is GRANTED and the reliefrequested in Future Link
Systems, LLC's ("Defendant") opening letter brief (D.I. 142) is DENIED, for the reasons stated
below. IT IS FURTHER ORDERED that the parties shall comply with the Court's instructions
detailed below.

Plaintiff's Requested Relief
1.

Plaintiff seeks an Order compelling Defendant to "supplement its license.

contentions in accordance with the Court's Revised Patent Form Joint Scheduling Order (D.I. 34
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7G))." (D.I. 143 at 1) Paragraph 7G) of the Scheduling Order states the following: "By

[December 15, 2014], Future Link [is] to provide responsive contentions
providing in detail the bases for any allegation that Intel is not licensed pursuant to Intel's

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License Claim and factual and evidentiary basis for its contention." (D.l. 34 at 5) (emphasis
added)
2.

Defendant has not adequately complied with its obligations under paragraph 7(j)

of the Scheduling Order. Plaintiff identified specific provisions of the relevant license
agreement, specific categories of products and exemplary documents associated with said
products, and specific products allegedly commercialized by Philips· Semiconductors or related
companies (relevant to the "commercialization requirement" identified by Plaintiff in the license
agreement). (See D.I. 142-2 at 6-16) Rather than respond specifically to Plaintiffs arguments
and evidence, Defendant uses the vast majority of its preliminary responsive contentions to
complain about Plaintiffs allegedly deficient document production and discovery responses.
(See, e.g., D.I. 143-1 at 4 (" ... many of the technical documents included in Intel's production

are unlabeled ..."), 9 (" ... Intel has not disclosed

e~idence

... sufficient to authenticate the

Agreement ... '')) The Court agrees with Plaintiff that Defendant "may not avoid its obligations
under the Court's schedule by arguing, generically, that Intel has not 'met its burden' to prove it
is licensed .... [Defendant] needs to explain why." (D.I. 143 at 1) (emphasis added)
3.

In light of the above, Defendant shall supplement its preliminary responsive

contentions (D.I. 143-1 Ex. B) by no later than August 17, 2015 to include Defendant's actual
positions on the arguments and evidence cited in Plaintiffs preliminary license contentions (D.I.
142-2). After August 17, 2015, Defendant shall be barred from raising in its early summary
judgment briefing any additional arguments or evidence that it reasonably could have raised
before this date to address the arguments and evidence cited in Plaintiffs preliminary license
contentions (D.I. 142-2).
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4.

For example, Defendant shall explain why Defendant believes "Intel has not

established that any of the patents are 'Philips Patents"' under the agreement, rather than merely
block quoting sections of the license agreement without explanation and providing conclusory
statements, such as "[n]either Future Link nor NXP ... seemingly qualify as members of the
'Philips Group of Companies' and their patents do not seemingly qualify as 'Philips Patents.'"
(See D.I. 143-1 at 10, 12) Similarly, even if Plaintiff has not "provided Future Link with

information sufficient to fully determine the circuitry of each Intel product-at-issue," Defendant
shall at least address the products that are identified by Intel and explain why Defendant believes
these products do or do not fall under the license agreement. The foregoing examples are
illustrative only and do not limit Defendant's obligations.
Defendant's Requested Relief
5.

The Court rejects Defendant's argument that Plaintiffs license claim is not

suitable for early summary judgment. On the contrary, Plaintiff has identified specific license
provisions, products, and arguments for why it thinks five of the patents-in-suit are licensed.
(See, e.g., D.I. 142-2 at6-16) Certain of the issues likely to be presented on summary judgment

- for example, the applicability of certain license provisions to the five patents-in-suit - are
questions of law (contract interpretation). The Court sees no reason to alter its decision to permit
an early summary judgment motion. Therefore, the parties shall comply with the early summary
judgment schedule outlined in the Scheduling Order (D.I. 34), as amended and clarified by this
and other Orders of the Court. (See D.I. 125, 127) In particular, any such motion and opening
brief shall be filed on September 28, 2015. (D.I. 127)
6.

The Court also rejects Defendant's argument that Plaintiff should not be permitted
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to supplement its preliminary license contentions. The parties have engaged in over eight months
of discovery since Defendant served its preliminary responsive contentions. The Court finds it
not only proper but necessary for Plaintiff to be allowed to supplement its preliminary license
contentions to include new arguments and evidence developed during discovery, to allow the
record and the parties' arguments to be as complete as possible before early summary judgment
briefing. Thus, on or before August 28, 2015, Plaintiff may supplement its preliminary license
contentions (D.I. 142-2) to include new arguments and evidence. After August 28, 2015,
Plaintiff shall be barred from raising in its early summary judgment briefing any additional
arguments or evidence that it reasonably could have raised before this date.

7.

On or before September 9, 2015, Defendant may supplement its responsive

license contentions (D.I. 143-1 Ex. B) to address only the new evidence and/or arguments raised
in Plaintiffs supplemented license contentions. Plaintiff shall be barred from raising in its early
summary judgment briefing any additional arguments or evidence that it reasonably could have
raised before this date.

IT IS FURTHER ORDERED that the teleconference scheduled for August 7, 2015 at
9:00 a.m. is CANCELLED.

-L~P~
HON. LEONARD P. STARK
U.S. DISTRICT COURT JUDGE

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