FaceTec, Inc. v. iProov Ltd.

District Court, D. Nevada·Decided September 10, 2024·No. 2:21-cv-02252·Unknown

Opinion

* * *

FaceTec, Inc., Case No. 2:21-cv-02252-ART-BNW

Plaintiff, ORDER v.

iProov, Ltd.,

Defendant.

iProov, Ltd., Counter-Claimant, v. FaceTec, Inc., Counter-Defendant. This is a patent dispute over facial-recognition software in which both companies assert patent-infringement claims against the other. Before the Court are two related motions: FaceTec’s motion to compel (ECF No. 89) and iProov’s motion to strike (ECF No. 99). The Court heard oral argument on both motions. For the reasons discussed below, the Court grants FaceTec’s motion to compel and denies iProov’s motion to strike. iProov is the developer and patent owner of Liveness Assurance, which is a software that verifies whether an online user is real and the right person to access sensitive information through facial-recognition technology. ECF No. 99 at 2. FaceTec alleges that this software infringes its two patents. ECF No. 98 at 3. The two motions before the Court only concern FaceTec’s, not iProov’s, infringement claims. This district’s local patent rules (“LPRs”) set forth a series of disclosures that each party must make in a patent case. See generally LPRs. As part of these disclosures, a party claiming patent infringement must serve infringement contentions, which include a claim chart or charts that specifically identify how the accused instrumentalities allegedly infringe each limitation of each patent. LPR 1-6(c). The party defending against patent infringement must then produce certain discovery, including source code, of the instrumentalities accused in the infringement contentions. LPR 1-9(a). In August of 2022, FaceTec served its preliminary infringement contentions, in which it defined the accused instrumentalities as all iProov products that included the Liveness Assurance software. ECF 89 at 3. iProov asked FaceTec to supplement its contentions because it believed that they did not show infringement of any accused instrumentality. ECF No. 98 at 4. The parties conferred, and FaceTec agreed to amend its preliminary infringement contentions to include more details about its infringement allegations. ECF No. 89 at 3; ECF No. 98 at 4. At this conference, iProov did not mention the issue it brings up now—that FaceTec’s definition of accused instrumentalities was overbroad and that FaceTec did not accuse the mobile platforms of Liveness Assurance. ECF No. 89 at 3. In July of 2023, FaceTec served its amended infringement contentions, which contained the same definition of accused instrumentalities as its prior contentions but added more details to its claim charts. ECF No. 89 at 4. iProov argues that the details FaceTec added to its amended claim charts were specific to the web platform of Liveness Assurance, and therefore, only accused the web platform. ECF No. 98 at 4. Conversely, FaceTec argues that it accused both the web and mobile platforms in its amended infringement contentions. ECF No. 89 at 3. The parties’ differing views on this issue did not surface until approximately eight months later, when FaceTec requested that iProov produce the source code of the mobile platforms of Liveness Assurance. ECF No. 89 at 4. This request erupted into the two instant motions before the Court. / / / / / / A. Legal Standard “Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case . . . .” Fed. R. Civ. P. 26(b)(1). Relevant information is broad and need not be admissible in evidence to be discoverable. Under FRCP 37, “a party seeking discovery may move for an order compelling an answer, designation, production, or inspection.” Fed. R. Civ. P. 37(a)(3)(B). “The party seeking to compel discovery has the burden of establishing that its request satisfies the relevancy requirements of Rule 26(b)(1). Thereafter, the party opposing discovery has the burden of showing that the discovery should be prohibited, and the burden of clarifying, explaining or supporting its objections.” Garces v. Pickett, No. 2:17-CV-0319-JAM-ACP, 2021 WL 978540, at *2 (E.D. Cal. Mar. 16, 2021) (citations omitted). Patent cases are unique because the LPRs mandate some early discovery. For example, the preliminary infringement contentions take “the place of a series of interrogatories that defendants would likely have propounded had the patent local rules not provided for streamlined discovery.” Uniloc 2017 LLC v. Apple, Inc., No. 19-CV-01929-EJD-VKD, 2020 WL 978678, at *2 (N.D. Cal. Feb. 28, 2020) (quoting Network Caching Tech., LLC v. Novell, Inc., No. 01-CV-2079- VRW, 2002 WL 32126128, at *4 (N.D. Cal. Aug. 13, 2002)).1 Additionally, defendants are required to produce certain information, like source code, for any aspects or elements of an accused instrumentality identified in the claim charts. LPR 1-9(a). As numerous courts point out, the LPRs “are designed to require parties to crystallize their theories of the case early in the litigation and to adhere to those theories once they have been disclosed.” See, e.g., Taction Tech.,

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FaceTec, Inc. v. iProov Ltd., (D. Nev. 2024).

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