British Telecommunications plc v. IAC/INTERACTIVECORP

District Court, D. Delaware·Decided July 15, 2020·No. 1:18-cv-00366·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

BRITISH TELECOMMUNICATIONS PLC, § § Plaintiff, § § v. § Civil Action No. 18-366-WCB § IAC/INTERACTIVECORP, MATCH § (FILED UNDER SEAL) GROUP, INC., MATCH GROUP, LLC, and § VIMEO, INC., § § Defendants.

MEMORANDUM OPINION AND ORDER

On July 2, 2020, plaintiff British Telecommunications PLC (“BT”) filed a letter raising several discovery-related complaints. Dkt. No. 215. Defendants IAC/InteractiveCorp, Match Group, Inc, Match Group, LLC, and Vimeo Inc. (collectively, “Match”) filed a letter response on July 7, 2020. Dkt. No. 216. BT filed a reply on July 9, 2020. Dkt. No. 217. That same day, Match filed another letter, complaining about two alleged misrepresentations in BT’s reply. Dkt. No. 219. BT filed another letter the following day disputing Match’s characterization of the two alleged misrepresentations. Dkt. No. 220. BT’s original letter raises three principal issues, all of which relate to Match’s contention that an algorithm that is a central feature of BT’s infringement claim is no longer used (or at least is not used extensively) in Match’s accused dating platform, Match.com. The algorithm is known as Alotta89 (sometimes referred to as Algo89). While the parties appear to agree that Match used that algorithm throughout the bulk of the time period for which BT is claiming past damages, BT challenges Match’s assertion, through the report of its damages expert and other recently produced evidence, that Match has discontinued its use of the Alotta89 algorithm. First, BT contends that Clark Rothrock, a witness designated by Match to testify under Fed. R. Civ. P. 30(b)(6) on a number of technical topics, improperly submitted an “Errata Sheet” after his May 19, 2020, deposition that materially altered his testimony. The Errata Sheet, according to

BT, impermissibly altered Mr. Rothrock’s testimony about whether the accused algorithm is still used in Match’s programs. BT contends that Mr. Rothrock’s Errata Sheet should be excluded. Second, BT objects to a spreadsheet that Match served on BT after BT had already served its opening expert reports. BT contends that the spreadsheet, which relates to the extent to which various algorithms were used at various times in Match’s programs, was served belatedly and should be excluded. Third, BT objects to the expert report served by Mr. Philip Green, Match’s damages expert. In particular, BT objects to the portion of the expert report that relies on the late-produced spreadsheet and relies on conversations Mr. Green had with two Match employees to interpret the

spreadsheet and help him formulate his opinion regarding the use of different algorithms in Match’s system at different times. Those portions of Mr. Green’s report, according to BT, should be stricken. 1. The Rothrock Errata Sheet During his May 19, 2020, deposition, Mr. Rothrock testified that Match had used and was continuing to use two algorithms, known as Alotta89 and Amaranth, to power certain features of the accused dating platform operated by Match. Fact discovery closed three days after Mr. Rothrock’s deposition. On June 5, 2020, BT served its opening expert reports. BT’s infringement and damages experts relied in part on Mr. Rothrock’s testimony in setting out their opinions as to the scope of infringement and the amount of damages. On June 23, 2020, Match provided BT with an Excel spreadsheet that referred to “alotta” and “otheralgoid,” and appeared to relate to the extent to which various algorithms were used in Match’s programs. On June 25, 2020, Match served an Errata Sheet for Mr. Rothrock’s deposition

in which Mr. Rothrock revised positions he had taken regarding the use of the Alotta89 and Almaranth algorithms in Match’s accused dating platform, particularly with respect to whether Match had discontinued the use of those algorithms in its current programs. On June 26, 2020, Match served Mr. Green’s expert report on damages. His report relied on the Excel spreadsheet and on communications with two Match employees in support of his conclusion that the accused algorithms were not used, or were not used extensively, in Match’s current programs. Based in part on that finding, Mr. Green concluded that the amount of damages, if liability were established, should be much smaller than the amount estimated by BT’s expert. BT contends that Mr. Rothrock’s Errata Sheet is simply an effort to “abrogate and reverse”

the admissions made by Match’s Rule 30(b)(6) witness and should be excluded. Dkt. No. 215, at 2. BT argues that it has been prejudiced by Mr. Rothrock’s about-face on the answers he gave to certain questions at his deposition. The prejudice, according to BT, stems from the fact that BT’s experts relied on Mr. Rothrock’s admissions in their reports and from the fact that BT purportedly forwent follow-up discovery concerning the new Match program to which Mr. Rothrock alluded in his Errata Sheet. In arguing that the Errata Sheet should be excluded, BT relies on the leading Third Circuit case on the propriety of permitting contradictory errata under Federal Rule of Civil Procedure 30(e) in the summary judgment context, EBC, Inc. v Clark Building Systems, Inc., 618 F.3d 253 (3d Cir. 2010). In EBC, the Third Circuit directed district courts to apply a “flexible approach” in determining when to permit or exclude a contradictory errata sheet. Id. at 267; see also id. at 268 (“[W]e emphasize that courts may, in their discretion, choose to allow contradictory changes (and implement the remedial measures discussed above) as the circumstances may warrant.”).1 Match responds that Mr. Rothrock’s Errata Sheet corrected a mistake in his deposition

testimony as to whether the Match.com system currently uses the Alotta89 algorithm. Match argues that Mr. Rothrock was required to be prepared to testify on numerous topics. As part of Mr. Rothrock’s preparation, Match contends, he was required to familiarize himself with the use and operation of a large number of other algorithms “rather than focusing on the only one (unbeknownst to Match) BT actually cared about.” Dkt. No. 216, at 3. Moreover, Match notes that Mr. Rothrock had to conduct his preparation for the deposition remotely. While Match contends that Mr. Rothrock prepared “in good faith and as thoroughly as possible under the circumstances,” Match asserts that Mr. Rothrock understandably made a mistake during his deposition in light of the numerous topics for which he had to prepare and the challenging

circumstances surrounding his preparation. Match further argues that it was not until June 5, 2020, when BT served its expert’s infringement report, that BT disclosed its theory of infringement based solely on Match’s use of the Alotta89 algorithm. At that time, according to Match, BT asserted that Alotta89 served as both

1 BT does not specifically contend that the errata sheet was not served before the deadline set by the Federal Rules. But BT says that Match “waited more than one month to alert BT to the need to dramatically alter his testimony through the errata process.” Dkt. No. 215, at 4. Under Rule 30(e), Match had to submit any changes to the deposition within “thirty days after being notified by the officer that the transcript is available for review.” EBC, 618 F.3d at 265 (quotations omitted). Mr. Rothrock’s errata sheet was timely submitted because Match received notice on May 26, 2020, Dkt. No. 216-1, Ex. B (Rothrock Dep. Tr.), at 201, and submitted the errata sheet on June 25, 2020.

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