British Telecommunications PLC v. Coxcom, Inc.

9 F. Supp. 3d 423, 2014 WL 119077
District Court, D. Delaware·Decided January 13, 2014·No. Civ. Nos. 10-658-SLR, 11-843-SLR·Published·Cited by 2 cases

Opinion

MEMORANDUM OPINION

ROBINSON, District Judge

I. INTRODUCTION

On August 5, 2010, British Telecommunications pic (“BT”) filed a complaint against Coxcom, Inc. '(“Coxcom”), Cox Communications, Inc. (“Cox Communications”) (collectively, “Cox”), and Cable One, Inc. (“Cable One”),1 alleging infringement of U.S. Patent Nos. 5,142,532 (“the ’532 patent”), 5,526,350 (“the ’350 patent”), 6,538,989 (“the ’989 patent”), and 6,665,264 (“the ’264 patent”).2 (D.1.1) On September 6, 2011, BT amended its complaint against Cox and Cable One, expanding the infringement to also cover U.S. Patent Nos. 5,790,643 (“the ’643 patent”), 5,923,247 (“the ’247 patent”), 6,205,216 (“the ’216 patent”), and 6,473,742 (“the ’742 patent”).3,4 (D.1.66) Two weeks later, Com-[428]*428cast Cable Communications (“Comcast Cable”) and Comcast Corporation (collectively, “Comcast”) filed a complaint alleging invalidity and noninfringement of those same eight patents.5 (Civ. No. 11-843, Dll)

Presently before the court are several motions: Cox’s motion to strike the declarations of Dr. Lyon and Dr. Almeroth (D.1.381); the parties’ competing motions for summary judgment regarding whether Cox’s use of Cisco products or combinations thereof is licensed (D.I. 314; D.I. 352); BT’s motion to dismiss Cox’s counterclaim for breach of contract (D.I.343); the parties’ competing motions as to Cox’s affirmative defense of patent exhaustion (D.I. 317; D.I. 349); and BT’s motion for summary judgment regarding Cox’s affirmative defense of estoppel (D.I.340). The court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 1331 and 1338(a).

II. STANDARD OF REVIEW

“The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a). The moving party bears the burden of demonstrating the absence of a genuine issue of material fact. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 n.10, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). A party asserting that a fact cannot be — or, alternatively, is — genuinely disputed must support the assertion either by citing to “particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for the purposes of the motions only), admissions, interrogatory answers, or other materials,” or by “showing that the materials cited do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissible evidence to support the fact.” Fed. R. Civ. P. 56(e)(1)(A) & (B). If the moving party has carried its burden, the nonmovant must then “come forward with specific facts showing that there is a genuine issue for trial.” Matsushita, 475 U.S. at 587, 106 S.Ct. 1348 (internal quotation marks omitted). The court will “draw all reasonable inferences in favor of the nonmoving party, and it may not make credibility determinations or weigh the evidence.” Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000).

To defeat a motion for summary judgment, the non-moving party must “do more than simply show that there is some metaphysical doubt as to the material facts.” Matsushita, 475 U.S. at 586-87, 106 S.Ct. 1348; see also Podobnik v. U.S. Postal Service, 409 F.3d 584, 594 (3d Cir.2005) (stating party opposing summary judgment “must present more than just bare assertions, conclusory allegations or suspicions to show the existence of a genuine issue”) (internal quotation marks omitted). Although the “mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment,” a factual dispute is genuine where “the evidence is such that a reasonable jury could return a verdict for the nonmov-[429]*429ing party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). “If the evidence is merely colorable, or is not significantly probative, summary judgment may be granted.” Id. at 249-50, 106 S.Ct. 2505 (internal citations omitted); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) (stating entry of summary judgment is mandated “against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial”).

III. MOTION TO EXCLUDE

BT’s experts, Dr. Almeroth and Dr. Lyon, issued their opening expert reports on March 8, 2013 and March 11, 2013 respectively, neither of which discussed the licensing issues or any “substantial non-infringing uses” of the accused devices in Cox’s network. (D.I.313, exs.3, 4) On April 25, 2013, Cox’s expert, Dr. Evans, issued his rebuttal expert report stating that the accused products “have no known usage that is divorced from the functionality that [BT] alleges as constituting [certain claim limitations].” (D.l. 381, ex. 4 at ¶¶ 208, 225, 239, 269, 344, 362) On May 17, 2013, Dr. Lyon and Dr. Almeroth issued their reply reports providing that the Cisco products, including “CMSs, CMTSs, and EMTAs have known, actual, and substantial uses that do not infringe the asserted claims” and giving some general examples thereof. (D.1, 381, ex. 7 at ¶¶ 88-91; ex. 8 at ¶¶ 55-57)

Thereafter, BT submitted Dr. Al-meroth’s and Dr. Lyon’s declarations to support its argument that the Cisco products (routers, switches, CMTSs, EMTAs, CMSs) have substantial non-infringing uses. (D.1.355, exs.I, J) The declarations paralleled the reply reports, but provided additional examples of non-infringing uses, some conclusory explanations, and comparisons to claim limitations. Evidence appropriate for review on summary judgment is that which has been vetted through discovery and issues of fact are raised by conflicting evidence, not by attorney argument or conclusory expert opinions. As such, the court grants Cox’s motion to strike portions of the declarations of Dr. Lyon and Dr. Almeroth. (D.l. 381)

IV. LICENSES

New York law governs the asserted licensing issues. (D.l. 316, ex. 1 at § 5.11; D.l. 355, ex. F at § 6.8) Under New York law, a contract should be construed so as “to give effect to the intent of the parties as revealed by the language” of the contract itself.

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British Telecommunications PLC v. Coxcom, Inc., 9 F. Supp. 3d 423, 2014 WL 119077 (D. Del. 2014).

9 F. Supp. 3d 423 (British Telecommunications PLC v. Coxcom, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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