FaceTec, Inc. v. iProov Ltd.

CourtDistrict Court, D. Nevada
DecidedSeptember 10, 2024
Docket2:21-cv-02252
StatusUnknown

This text of FaceTec, Inc. v. iProov Ltd. (FaceTec, Inc. v. iProov Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

Opinion

1 UNITED STATES DISTRICT COURT

2 DISTRICT OF NEVADA

3 * * *

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

5 Plaintiff, ORDER 6 v.

7 iProov, Ltd.,

8 Defendant.

10 iProov, Ltd., 11 Counter-Claimant, 12 v. 13 FaceTec, Inc., 14 Counter-Defendant. 15 16 17 This is a patent dispute over facial-recognition software in which both companies assert 18 patent-infringement claims against the other. Before the Court are two related motions: FaceTec’s 19 motion to compel (ECF No. 89) and iProov’s motion to strike (ECF No. 99). The Court heard oral 20 argument on both motions. For the reasons discussed below, the Court grants FaceTec’s motion 21 to compel and denies iProov’s motion to strike. 22 I. BACKGROUND 23 iProov is the developer and patent owner of Liveness Assurance, which is a software that 24 verifies whether an online user is real and the right person to access sensitive information through 25 facial-recognition technology. ECF No. 99 at 2. FaceTec alleges that this software infringes its 26 two patents. ECF No. 98 at 3. The two motions before the Court only concern FaceTec’s, not 27 iProov’s, infringement claims. 1 This district’s local patent rules (“LPRs”) set forth a series of disclosures that each party 2 must make in a patent case. See generally LPRs. As part of these disclosures, a party claiming 3 patent infringement must serve infringement contentions, which include a claim chart or charts 4 that specifically identify how the accused instrumentalities allegedly infringe each limitation of 5 each patent. LPR 1-6(c). The party defending against patent infringement must then produce 6 certain discovery, including source code, of the instrumentalities accused in the infringement 7 contentions. LPR 1-9(a). 8 In August of 2022, FaceTec served its preliminary infringement contentions, in which it 9 defined the accused instrumentalities as all iProov products that included the Liveness Assurance 10 software. ECF 89 at 3. iProov asked FaceTec to supplement its contentions because it believed 11 that they did not show infringement of any accused instrumentality. ECF No. 98 at 4. The parties 12 conferred, and FaceTec agreed to amend its preliminary infringement contentions to include more 13 details about its infringement allegations. ECF No. 89 at 3; ECF No. 98 at 4. At this conference, 14 iProov did not mention the issue it brings up now—that FaceTec’s definition of accused 15 instrumentalities was overbroad and that FaceTec did not accuse the mobile platforms of Liveness 16 Assurance. ECF No. 89 at 3. In July of 2023, FaceTec served its amended infringement 17 contentions, which contained the same definition of accused instrumentalities as its prior 18 contentions but added more details to its claim charts. ECF No. 89 at 4. 19 iProov argues that the details FaceTec added to its amended claim charts were specific to 20 the web platform of Liveness Assurance, and therefore, only accused the web platform. ECF No. 21 98 at 4. Conversely, FaceTec argues that it accused both the web and mobile platforms in its 22 amended infringement contentions. ECF No. 89 at 3. The parties’ differing views on this issue did 23 not surface until approximately eight months later, when FaceTec requested that iProov produce 24 the source code of the mobile platforms of Liveness Assurance. ECF No. 89 at 4. This request 25 erupted into the two instant motions before the Court. 26 / / / 27 / / / 1 II. MOTION TO COMPEL 2 A. Legal Standard 3 “Parties may obtain discovery regarding any nonprivileged matter that is relevant to any 4 party’s claim or defense and proportional to the needs of the case . . . .” Fed. R. Civ. P. 26(b)(1). 5 Relevant information is broad and need not be admissible in evidence to be discoverable. Under 6 FRCP 37, “a party seeking discovery may move for an order compelling an answer, designation, 7 production, or inspection.” Fed. R. Civ. P. 37(a)(3)(B). “The party seeking to compel discovery 8 has the burden of establishing that its request satisfies the relevancy requirements of Rule 9 26(b)(1). Thereafter, the party opposing discovery has the burden of showing that the discovery 10 should be prohibited, and the burden of clarifying, explaining or supporting its objections.” 11 Garces v. Pickett, No. 2:17-CV-0319-JAM-ACP, 2021 WL 978540, at *2 (E.D. Cal. Mar. 16, 12 2021) (citations omitted). 13 Patent cases are unique because the LPRs mandate some early discovery. For example, the 14 preliminary infringement contentions take “the place of a series of interrogatories that defendants 15 would likely have propounded had the patent local rules not provided for streamlined discovery.” 16 Uniloc 2017 LLC v. Apple, Inc., No. 19-CV-01929-EJD-VKD, 2020 WL 978678, at *2 (N.D. 17 Cal. Feb. 28, 2020) (quoting Network Caching Tech., LLC v. Novell, Inc., No. 01-CV-2079- 18 VRW, 2002 WL 32126128, at *4 (N.D. Cal. Aug. 13, 2002)).1 Additionally, defendants are 19 required to produce certain information, like source code, for any aspects or elements of an 20 accused instrumentality identified in the claim charts. LPR 1-9(a). As numerous courts point out, 21 the LPRs “are designed to require parties to crystallize their theories of the case early in the 22 litigation and to adhere to those theories once they have been disclosed.” See, e.g., Taction Tech., 23 24

25 1 The Court finds opinions from the Northern and Southern District Courts of California persuasive because the LPRs relevant to this Order (e.g., LPR 1-6, LPR 1-9) are nearly identical 26 to the patent rules in those districts (e.g., Patent Local Rules 3.1, 3-1, 3.4, 3-4). See, e.g., Signify 27 N. Am. Corp. v. Lepro Innovation Inc., 2:22-cv-02095-JAD-DJA, 3 n.7 (D. Nev. Oct. 5, 2023) (“The local patent rules for the District of Nevada are similar to those in the Northern District of 1 Inc. v. Apple Inc., 686 F. Supp. 3d 995, 1006 (S.D. Cal. 2023) (quoting Wi-LAN Inc. v. LG Elecs., 2 Inc., No. 18-CV-01577-H-BGS, 2019 WL 5790999, at *2 (S.D. Cal. Sept. 18, 2019)). 3 B. FaceTec’s preliminary infringement contentions regarding the mobile 4 platforms do not give iProov sufficient notice under LPR 1-6(a). 5 The first question before the Court is whether FaceTec’s preliminary infringement 6 contentions, as they relate to the mobile platforms of Liveness Assurance, give iProov sufficient 7 notice under LPR 1-6.2 LPR 1-6 states that the preliminary infringement contentions must 8 contain: 9 Separately for each asserted claim, each accused apparatus, product, device, process, method, act, or other instrumentality (“Accused Instrumentality”) of each opposing party 10 of which the party is aware. This identification must be as specific as possible. Each product, device, and apparatus must be identified by name or model number, if known. 11 Each method or process must be identified by name, if known, or by any product, device, or apparatus which, when used, allegedly results in the practice of the claimed method or 12 process. . . . [And a] chart identifying specifically where each limitation of each asserted claim is found within each Accused Instrumentality . . . 13 14 LPR 1-6(b)–(c). “All courts agree that the degree of specificity under [LPR 1-6] must be 15 sufficient to provide reasonable notice to the defendant why the plaintiff believes it has a 16 reasonable chance of proving infringement.” Geovector Corp. v. Samsung Elecs. Co., No. 16-CV- 17 02463-WHO, 2017 WL 76950, at *3 (N.D. Cal. Jan. 9, 2017) (quoting Shared Memory Graphics 18 LLC v. Apple, Inc. 812 F. Supp 2d 1022, 1025 (N.D. Cal. 2010)) (cleaned up).

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