Cpc Patent Technologies Pty Ltd. v. Apple Inc.

119 F.4th 1126
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 24, 2024
Docket23-3449
StatusPublished
Cited by3 cases

This text of 119 F.4th 1126 (Cpc Patent Technologies Pty Ltd. v. Apple Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cpc Patent Technologies Pty Ltd. v. Apple Inc., 119 F.4th 1126 (9th Cir. 2024).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

CPC PATENT TECHNOLOGIES No. 23-3449 PTY LTD., D.C. No. 4:21-mc-80091- Petitioner - Appellee, JST v. OPINION APPLE INC.,

Respondent - Appellant.

Appeal from the United States District Court for the Northern District of California Jon S. Tigar, District Judge, Presiding

Argued and Submitted September 24, 2024 San Francisco, California

Filed October 24, 2024

Before: Milan D. Smith, Jr., Jacqueline H. Nguyen, and Daniel A. Bress, Circuit Judges.

Opinion by Judge Bress 2 CPC PATENT TECHNOLOGIES PTY LTD. V. APPLE

SUMMARY*

Discovery / Appellate Jurisdiction

The panel dismissed, for lack of appellate jurisdiction, an appeal from the district court’s order granting the application of CPC Patent Technologies Pty Ltd. for discovery under 28 U.S.C. § 1782 against Apple Inc. for use in a not-yet-filed patent infringement suit in Germany. The panel held that the district court’s decision was not final and appealable because the scope of discovery and the type of discovery that Apple was required to produce remained undetermined. In these circumstances, the district court’s order did not end the litigation on the merits, place the parties effectively out of federal court, or result in the district court disassociating itself from the case entirely, retaining nothing of the matter on its docket. The panel explained that the lack of a determination as to the scope of Apple’s discovery obligations under the district court’s § 1782 order materially affected the panel’s ability to evaluate the Intel factors used to determine whether discovery was warranted under § 1782 because it was difficult for the panel to assess the sufficiency of the German legal system’s confidentiality protections or the risks and burdens that the discovery could create for Apple.

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. CPC PATENT TECHNOLOGIES PTY LTD. V. APPLE 3

COUNSEL

George C. Summerfield (argued), K&L Gates LLP, Chicago, Illinois; Zachary T. Timm, Vanuhi Zohrabians, and Christina N. Goodrich, K&L Gates LLP, Los Angeles, California; Darlene F. Ghavimi, K&L Gates LLP, Austin, Texas; for Petitioner-Appellee. James Sigel (argued), Davis Wright Tremaine LLP, San Francisco, California; Seth Sproul, Fish & Richardson PC, San Diego, California; Joel F. Wacks, Morrison & Foerster LLP, San Francisco, California; for Respondent-Appellant.

OPINION

BRESS, Circuit Judge:

Under 28 U.S.C. § 1782, a district court may permit discovery for use in a foreign proceeding. In this case, CPC Patent Technologies Pty Ltd. applied for § 1782 discovery against Apple Inc. for use in a not-yet-filed patent infringement suit in Germany. The district court granted CPC’s § 1782 application, and Apple now appeals. We hold that the district court’s decision is not final because the scope of discovery remains undetermined. The lack of a final judgment means that we lack appellate jurisdiction. We dismiss the appeal. I Rooted in longstanding practice, 28 U.S.C. § 1782 “authorizes, but does not require,” federal district courts to order discovery for use in a foreign proceeding. Intel Corp. 4 CPC PATENT TECHNOLOGIES PTY LTD. V. APPLE

v. Advanced Micro Devices, Inc., 542 U.S. 241, 255 (2004). To secure this discovery, a § 1782 applicant must show at the outset (1) that “the person from whom the discovery is sought ‘resides or is found’ in the district of the district court where the application is made,” (2) “the discovery is ‘for use in a proceeding in a foreign or international tribunal,’” and (3) “the application is made by a foreign or international tribunal or ‘any interested person.’” Khrapunov v. Prosyankin, 931 F.3d 922, 925 (9th Cir. 2019) (quoting 28 U.S.C. § 1782(a)). Even if an applicant meets these requirements, “the district court still retains substantial discretion to permit or deny the requested discovery.” Id. at 926 (citing Intel, 542 U.S. at 264–65). This discretion is guided by the Supreme Court’s articulation in Intel of four non-exclusive factors: (1) whether “the person from whom discovery is sought is a participant in the foreign proceeding;” (2) “the nature of the foreign tribunal, the character of the proceedings underway abroad, and the receptivity of the foreign government or the court or agency abroad to U.S. federal-court judicial assistance;” (3) “whether the § 1782(a) request conceals an attempt to circumvent foreign proof-gathering restrictions or other policies of a foreign country or the United States;” and (4) whether the discovery requests are “unduly intrusive or burdensome.” Intel, 542 U.S. at 264–65; see also In re Premises Located at 840 140th Ave. NE, 634 F.3d 557, 563 (9th Cir. 2011). These factors are sometimes described as the “Intel factors.” See, e.g., Frasers Grp. PLC v. Stanley, 95 F.4th 54, 56 (2d Cir. 2024); Schlich v. Broad Inst., Inc. (In re Schlich), 893 F.3d 40, 45 (1st Cir. 2018). The § 1782 applicant in this case is CPC, an Australian patent holding company that in 2019 acquired a series of biometric security patents. CPC has sued Apple for patent CPC PATENT TECHNOLOGIES PTY LTD. V. APPLE 5

infringement in the United States and elsewhere, claiming that certain Apple security features, such as Face ID, infringe on patents in the CPC portfolio. In April 2021, CPC filed a § 1782 application in the Northern District of California. CPC’s application sought discovery from Apple for use in CPC’s prospective German patent infringement suit against a German Apple entity concerning the parties’ German patents. CPC sought to serve Apple with a subpoena for fifteen categories of documents “sufficient to describe” the functionality of various aspects of Apple’s biometric security technology. By local general order, the matter was assigned to a magistrate judge, who denied CPC’s petition under the Intel factors, finding the requested discovery unduly burdensome. CPC then sought review in the district court. Applying a clear error standard of review, the district court affirmed the magistrate judge’s denial of CPC’s § 1782 application. On appeal to this court, we held that the district court erred in reviewing the magistrate judge’s decision for clear error. CPC Patent Techs. Pty Ltd. v. Apple, Inc., 34 F.4th 801, 803 (9th Cir. 2022) (“CPC I”). Examining the intersecting rules governing the powers of magistrate judges, see 28 U.S.C. § 636; Fed. R. Civ. P. 72, we held that a ruling on a § 1782 application should be regarded as a dispositive matter because it “necessarily disposes of the ‘ultimate relief sought’ in the federal case.” CPC I, 34 F.4th at 808 (quoting SEC v. CMKM Diamonds, Inc., 729 F.3d 1248, 1260 (9th Cir. 2013)).

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119 F.4th 1126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cpc-patent-technologies-pty-ltd-v-apple-inc-ca9-2024.