Finesse Wireless LLC v. AT&T Mobility LLC

CourtDistrict Court, E.D. Texas
DecidedAugust 30, 2023
Docket2:21-cv-00316
StatusUnknown

This text of Finesse Wireless LLC v. AT&T Mobility LLC (Finesse Wireless LLC v. AT&T Mobility LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Finesse Wireless LLC v. AT&T Mobility LLC, (E.D. Tex. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION

FINESSE WIRELESS LLC, § § Plaintiff, § CIVIL ACTION NO. 2:21-CV-00316-JRG § (LEAD CASE) v. § § AT&T MOBILITY LLC, §

CELLCO PARTNERSHIP D/B/A VERIZON § CIVIL ACTION NO. 2:21-CV-00317-JRG WIRELESS, § (MEMBER CASE) § Defendants. §

MEMORANDUM OPINION AND ORDER I. INTRODUCTION Before the Court is Defendants’ Rule 59 Motion for New Trial (the “Motion”). (Dkt. No. 297.) In it, Defendant AT&T Mobility, LLC (“AT&T”) and Intervenor-Defendant Nokia of America Corporation (“Nokia”) (collectively, “Defendants”) move for a new trial. (See generally, id.) Plaintiff Finesse Wireless LLC (“Finesse”) opposes the Motion. (See Dkt. No. 309 at 1.) For the following reasons, the Court finds that the Motion should be DENIED. II. BACKGROUND Finesse filed a complaint on August 23, 2021, alleging infringement by Defendants of U.S. Patent Number 7,346,134 and U.S. Patent Number 9,578,775 (collectively, the “Asserted Patents”). (See generally, Dkt. No. 1.) Specifically, Finesse accused Defendants of using certain infringing cellular base stations. (See id.) A jury trial was held on the Asserted Patents in January of 2023. On January 13, 2023, the jury returned a verdict finding that the Defendants infringed all asserted claims. (Dkt. No. 273 at 4.) Further, the jury found that Defendants had failed to prove that any of the asserted claims were invalid. (Id. at 5.) The jury awarded damages in the form of a lump sum for the remaining life of the patents in the amount of $166,303,391.00. (Id. at 6.) A. Background of the Technology Base stations include radios that send and receive signals. A signal that is sent by the radio station is called a downlink signal (e.g., the signal that is sent to a cell phone), and a received signal

(e.g., a signal that is received by a cell phone) is called an uplink signal. Sometimes, signals interact with one another to create interference. The resulting interference is sometimes called passive intermodulation (“PIM”). The patents-in-suit describe methods and apparatuses for removing this type of interference. This is known as passive intermodulation cancellation or “PIMC”, or “PIM‑C”. B. Background on the Damages Models Presented At trial, Plaintiff and Defendants each presented a lump sum damages model. Defendants’ model was largely based on the cost associated with manually fixing any PIM generated at a base station. Plaintiff’s model, on the other hand, was based on the amount of spectrum salvaged by the technology at issue. Another word for spectrum is bandwidth, and cellular communication

companies purchase spectrum wherein they can operate. Plaintiff’s model is essentially based on the idea that the technology at issue allows AT&T to make better use of its own spectrum. III. LEGAL STANDARD Rule 59 provides that a new trial may be granted on all or part of the issues on which there has been a trial by jury for “any reason for which a new trial has heretofore been granted in an action at law in federal court.” Fed. R. Civ. P. 59(a). Notwithstanding the broad sweep of Rule 59, “courts do not grant new trials unless it is reasonably clear that prejudicial error has crept into the record or that substantial justice has not been done, and the burden of showing harmful error rests on the party seeking the new trial.” Metaswitch Networks Ltd. v. Genband US LLC, 2017 WL 3704760, at *2 (E.D. Tex. Aug. 28, 2017); Erfindergemeinschaft UroPep GbR v. Eli Lilly & Co., 276 F. Supp. 3d 629, 643 (E.D. Tex. 2017). “A new trial may be granted, for example, if the district court finds the verdict is against the weight of the evidence, the damages awarded are excessive, the trial was unfair, or prejudicial error was committed in its course.” Smith v. Transworld Drilling

Co., 773 F.2d 610, 612–13 (5th Cir. 1985); see also Laxton v. Gap Inc., 333 F.3d 572, 586 (5th Cir. 2003) (“A new trial is warranted if the evidence is against the great, and not merely the greater, weight of the evidence.”). Furthermore “[u]nless justice requires otherwise, no error in admitting or excluding evidence—or any other error by the court or a party—is ground for granting a new trial . . . the court must disregard all errors and defects that do not affect any party’s substantial rights.” Fed. R. Civ. P. 61. IV. ANALYSIS A. Whether a New Trial on Damages is Warranted Defendants argue that, for many of the same reasons put forward in their motion for judgment as a matter of law (“JMOL”) regarding damages (Dkt. No. 296), the jury award of $166MM is against the great weight of the evidence. (Dkt. No. 297 at 4.) Defendants further argue

that Dr. Bazelon should not have been permitted to offer a speculative damages theory based on future infringement. (Id. at 2.) Defendants also argue that Dr. Bazelon’s opinions should have been excluded because he offered technical opinions he was not qualified to offer. (Id. at 3.) Defendants also argue that the Court made several evidentiary rulings that improperly affected the scope of the damages case. (Id.) Defendants argue that the Court improperly excluded AT&T test data from Southern Ohio and New York City which showed that PIM was present at a limited number of sites, and that PIM-C had a modest effect on PIM. (Id.) Defendants also argue that the Court improperly excluded evidence demonstrating that Finesse licensed Verizon’s use of the accused products in its network for no consideration. (Id.) Defendants further contend that the Court improperly excluded evidence showing that Ericsson entered into a covenant not to sue with respect to certain PIM-C products and this exclusion allowed the jury to reach a much higher damages verdict. (Id. (citing Hinojosa v. Butler, 547 F.3d 285, 292 (5th Cir. 2008) (remanding for a new trial where excluded evidence prejudiced party)).) Finally, Defendants contend that Plaintiff

improperly made repeated references to billions of dollars which prejudiced the Defendants, as discussed in their JMOL of damages. (Id. at 4 (citing Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292, 1320 (Fed. Cir. 2011)).) In response, Plaintiff argues that Dr. Bazelon’s damages model was properly submitted to the jury. (Dkt. No. 309 at 4.) It was not speculative, according to Plaintiff, for Dr. Bazelon to calculate a lump sum using continued infringement at a steady rate, as Finesse’s expert also opined on a lump sum model. (Id. at 4–5.) Moreover, Plaintiff argues, Defendants have waived this argument because it was not raised at the Daubert stage. (Id. at 5.) Plaintiff further contends that the Court correctly denied Defendants’ motion to strike Dr. Bazelon’s opinions. (Id. at 5–6.) Plaintiff also contends that the Court did not err in its evidentiary rulings (Id. at 6–10.)

Plaintiff argues that the Court correctly excluded testing data produced well after discovery closed, despite Finesse having requested it earlier. (Dkt. No. 309 at 6–7.) Further, Plaintiff argues, Plaintiff’s covenants not to sue with Verizon/Ericsson were made in light of the low level of sales of relevant products and were properly excluded. (Id.

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Finesse Wireless LLC v. AT&T Mobility LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/finesse-wireless-llc-v-att-mobility-llc-txed-2023.