I/P Engine, Inc. v. AOL, Inc. et al

Filing 954

MOTION for Leave to File Notice of Supplemental Evidence by AOL Inc., Gannett Company, Inc., Google Inc., IAC Search & Media, Inc., Target Corporation. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C)(Noona, Stephen)

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Exhibit A UNITED STATES DISTRICT COURT EASTERN DISTRICT OF VIRGINIA NORFOLK DIVISION I/P ENGINE, INC. Plaintiff, v. AOL, INC., et al., Civil Action No. 2:11-cv-512 Defendants. DEFENDANTS’ NOTICE OF SUPPLEMENTAL EVIDENCE Defendants respectfully submit this Notice of Supplemental Evidence. Attached is an excerpt of a May 30, 2013 recent SEC Form 8-K for Plaintiff I/P Engine’s parent corporation, Vringo, Inc. regarding a settlement of I/P Engine’s action filed in Southern District of New York against Microsoft on January 31, 2013, alleging infringement of the patents at issue in this case. That filing reports: On May 30, 2013, Vringo, Inc. (the “Company”) issued a press release announcing that its wholly-owned subsidiary I/P Engine, Inc. (“I/P Engine”) has entered into a Settlement and License Agreement with Microsoft Corporation (“Microsoft”) to resolve patent litigation that was pending in the U.S. District Court for the Southern District of New York (I/P Engine, Inc. v. Microsoft Corporation, Case No. 1:13-cv-00688 (SDNY)). Pursuant to the Settlement and License Agreement, Microsoft agreed to pay I/P Engine $1 million within fifteen (15) business days, plus five percent (5%) of any amounts Google pays for use of the patents I/P Engine acquired from Lycos. The parties also agreed to a limitation on Microsoft’s total liability, which would not impact the Company unless the amounts received from Google substantially exceed the judgment previously awarded. In addition, the companies entered into a Patent Assignment Agreement, pursuant to which Microsoft will assign six patents to I/P Engine. The assigned patents relate to telecommunications, data management, and other technology areas. Exhibit A at Item 8.01. This recent settlement agreement is relevant to I/P Engine’s pending motion for postjudgment royalties. Specifically, it confirms that I/P Engine is willing to grant lump-sum licenses to the patents-in-suit. (Dkt. 822.) Microsoft must provide a payment of $1 million, six 01980.51928/5345501.1 1 patents, and a percentage of any award that I/P Engine may recover from Google in this case. Each of these components is a lump-sum transfer. In particular given that the payment tied to I/P Engine’s recovery against Google is capped as a percentage of the existing judgment in this case and is not tied to Microsoft’s revenue or use of the invention, that amount is effectively a lump sum. See Lucent Techs., Inc. v. Gateway, Inc., 580 F.3d 1301, 1326-27 (Fed. Cir. 2009) (“In a standard running royalty license, the amount of money payable by the licensee to the patentee is tied directly to how often the licensed invention is later used or incorporated into products by the licensee.”) (emphasis added). This is strong evidence that I/P Engine’s argument that it would have insisted in a hypothetical negotiation with Google in 2012 upon a running royalty agreement with no upward bound (Dkt. 949 at 16-17) is incorrect. See Transocean Offshore Deepwater Drilling, Inc. v. Maersk Drilling USA, Inc., 699 F.3d 1340, 1357-59 (Fed. Cir. 2012) (patentee’s licensing practices are relevant to determining form of agreement that would result from hypothetical negotiation). DATED: June 4, 2013 /s/ Stephen E. Noona Stephen E. Noona Virginia State Bar No. 25367 KAUFMAN & CANOLES, P.C. 150 West Main Street, Suite 2100 Norfolk, VA 23510 Telephone: (757) 624-3000 Facsimile: (757) 624-3169 senoona@kaufcan.com David Bilsker David A. Perlson QUINN EMANUEL URQUHART & SULLIVAN, LLP 50 California Street, 22nd Floor San Francisco, California 94111 Telephone: (415) 875-6600 Facsimile: (415) 875-6700 01980.51928/5345501.1 2 davidbilsker@quinnemanuel.com davidperlson@quinnemanuel.com Counsel for Google Inc., Target Corporation, IAC Search & Media, Inc., and Gannett Co., Inc. /s/ Stephen E. Noona Stephen E. Noona Virginia State Bar No. 25367 KAUFMAN & CANOLES, P.C. 150 W. Main Street, Suite 2100 Norfolk, VA 23510 Telephone: (757) 624-3000 Facsimile: (757) 624-3169 senoona@kaufcan.com Robert L. Burns FINNEGAN, HENDERSON, FARABOW, GARRETT & DUNNER, LLP Two Freedom Square 11955 Freedom Drive Reston, VA 20190 Telephone: (571) 203-2700 Facsimile: (202) 408-4400 Cortney S. Alexander FINNEGAN, HENDERSON, FARABOW, GARRETT & DUNNER, LLP 3500 SunTrust Plaza 303 Peachtree Street, NE Atlanta, GA 94111 Telephone: (404) 653-6400 Facsimile: (415) 653-6444 Counsel for Defendant AOL Inc. 01980.51928/5345501.1 3 CERTIFICATE OF SERVICE I hereby certify that on June 4, 2013, I will electronically file the foregoing with the Clerk of Court using the CM/ECF system, which will send a notification of such filing (NEF) to the following: Jeffrey K. Sherwood Kenneth W. Brothers DICKSTEIN SHAPIRO LLP 1825 Eye Street NW Washington, DC 20006 Telephone: (202) 420-2200 Facsimile: (202) 420-2201 sherwoodj@dicksteinshapiro.com brothersk@dicksteinshapiro.com Donald C. Schultz W. Ryan Snow Steven Stancliff CRENSHAW, WARE & MARTIN, P.L.C. 150 West Main Street, Suite 1500 Norfolk, VA 23510 Telephone: (757) 623-3000 Facsimile: (757) 623-5735 dschultz@cwm-law.cm wrsnow@cwm-law.com sstancliff@cwm-law.com Counsel for Plaintiff, I/P Engine, Inc. /s/ Stephen E. Noona Stephen E. Noona Virginia State Bar No. 25367 KAUFMAN & CANOLES, P.C. 150 West Main Street, Suite 2100 Norfolk, VA 23510 Telephone: (757) 624-3000 Facsimile: (757) 624-3169 senoona@kaufcan.com 01980.51928/5345501.1 4

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