Pragmatus Mobile LLC v. Amazon.com Inc.

Filing 65

MEMORANDUM ORDER re (50 in 1:14-cv-00436-LPS, 52 in 1:14-cv-00440-LPS) MOTION to Stay Pending Inter Partes Review filed by Lenovo Holding Company Inc., Amazon.com Inc., Lenovo (United States) Inc. is DENIED WITHOUT PREJUDICE. Signed by Judge Leonard P. Stark on 6/17/15. Associated Cases: 1:14-cv-00436-LPS, 1:14-cv-00440-LPS (ntl)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
PRAGMATUS MOBILE, LLC,
Plaintiff,
C.A. No. 14-436-LPS

V.

AMAZON.COM, INC.,
Defendant.

PRAGMATUS MOBILE, LLC,
Plaintiff,
V.

C.A. No. 14-440-LPS
LENOVO HOLDING COMPANY INC., et
al.,
Defendants.

MEMORANDUM ORDER
At Wilmington this 17th day of June, 2015:
Having reviewed the parties' filings related to Defendants Amazon.com, Inc., Lenovo
(United States) Inc., and Lenovo Holding Co., Inc.'s (collectively, the "Moving Defendants")
motion to stay litigation (C.A. No. 14-436 D.I. 50; C.A. No. 14-440 D.I. 52) pending inter partes
review ("IPR") ("Motion") of U.S. Patent No. 8,466,795 (the '"795 patent") by the Patent Trial
and Appeal Board ("PTAB") and the corresponding filings (C.A. No. 14-436 D.I. 51, 53, 59;
C.A. No. 14-440 D.I. 53, 63, 66),

IT IS HEREBY ORDERED that, for the reasons stated below, Moving Defendants'
Motion is DENIED WITHOUT PREJUDICE.

1.

Moving Defendants seek a stay of proceedings pending IPR of the '795 patent by

the PTAB. (C.A. No. 14-436 D.I. 50; C.A. No. 14-440 D.I. 52) The PTAB has not instituted the
IPR petition. (See D.I. 53 at 1) 1 Given the filing date, the PTAB is statutorily required to decide
whether to institute the IPR petition by October 22, 2015. (See D.I. 51 at 4)
2.

The Court typically considers three factors when deciding whether to stay

litigation pending IPR: "(1) whether a stay would unduly prejudice or present a clear tactical
disadvantage to the non-moving party; (2) whether a stay will simplify the issues in question and
trial of the case; and (3) whether discovery is complete and whether a trial date has been set."

Neste Oil OYJ v. Dynamic Fuels, LLC, 2013 WL 3353984, at* 1 (D. Del. July 2, 2013).

3.

As to the first factor, the Court finds that Moving Defendants' delay in petitioning

for IPR could create at least some tactical disadvantage for Plaintiff Pragmatus Mobile, LLC
("Plaintiff') and a stay may unduly prejudice Plaintiff. While Plaintiffs status as a nonpracticing entity reduces the prejudice it would suffer from a stay (see D.I. 59 at 1), there remains
a potential for undue prejudice. The timing of Moving Defendants' filing suggests they may be
seeking a tactical advantage, given they were aware of the prior art asserted in their IPR petition
many months before filing the petition just three days before the statutory deadline. (See D.I. 53
at 4)
4.

The second factor, whether a stay will simplify the issues, disfavors a stay at this

time. As noted, the IPR petition has not been instituted. Generally, "the 'simplification' issue
does not cut in favor of granting a stay prior to the time the PTAB decides whether to grant the
1

All docket citations hereinafter are to C.A. No. 14-436 unless otherwise specified.

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petition for inter partes review." Freeny v. Apple Inc., 2014 WL 3611948, at *2 (E.D. Tex. July
22, 2014 ). Moving Defendants may renew their Motion if and when their petition is instituted,
and the simplification factor may be evaluated differently at that time.
5.

Finally, considering the status of discovery and whether a trial date has been set,

the Court observes that a trial date has been set for September 12, 2016 (around the same time as
the IPR petition may be finally decided) and the parties have substantially completed document
production, exchanged invalidity and infringement contentions, and commenced claim
construction briefing in preparation for a Markman hearing scheduled for August. (See D.I. 53 at
14) Final infringement contentions are due in late October, shortly after the PTAB's deadline for
deciding whether to institute the petition. (D.I. 27 at 6) At this time, the Court finds that this
third factor weighs against granting a stay.
6.

Weighing the pertinent factors, the Court concludes that they do not favor

granting the requested stay. Accordingly, Moving Defendants' motion to stay litigation (C.A.
No. 14-436 D.I. 50; C.A. No. 14-440 D.I. 52) is DENIED WITHOUT PREJUDICE.

-{_g__,.j '!bvHON. LEONARD P. STARK
UNITED STATES DISTRICT JUDGE