GREE, INC. v. SUPERCELL OY

District Court, E.D. Texas·Decided April 28, 2021·No. 2:19-cv-00310·Unknown

Opinion

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

GREE, INC., § § Plaintiff, § Case No. 2:19-cv-00200-JRG-RSP § Case No. 2:19-cv-00237-JRG-RSP v. § Case No. 2:19-cv-00310-JRG-RSP § Case No. 2:19-cv-00311-JRG-RSP SUPERCELL OY, § § Defendant. §

MEMORANDUM ORDER Before the Court are four issues raised during the April 23, 2021 final pretrial conference for the above-captioned matters and two pending motions.1 The first motion is Plaintiff GREE, Inc.’s Motion to Exclude and Motion in Limine Regarding Defendant Supercell Oy’s Untimely Non-Infringing Alternative (“Motion to Exclude”). GREE, Inc. v. Supercell Oy, 2:19-cv-00310- JRG-RSP, Dkt. No. 244. The second motion is GREEs Motion for Clarification Regarding GREE’s Motion in Limine No. 11, or in the Alternative, Supplemental Motion in Limine as to Orders and Issues in the -200 Case (“Motion for Clarification”). GREE, Inc. v. Supercell Oy, 2:19- cv-00310-JRG-RSP, Dkt. No. 249. The first pretrial issue is Plaintiff GREE’s Motion in Limine No. 1, which was previously carried. The second pretrial issue is Defendant Supercell Oy’s Motion in Limine No. 9, for which counsel for Defendants seek an amendment of language. The third pretrial issue is a renewal of the request for preadmission of DX-1370, which regards Zynga source code. The fourth pretrial

1 The citations in this order are to docket numbers in GREE, Inc. v. Supercell Oy, 2:19-cv-00200- JRG-RSP unless identified otherwise. issue is a request for reconsideration of the pre-admission of DX-0130, the Confidential Settlement Agreement between GREE and Supercell (the “CSA”). I. Plaintiff’s Motion in Limine No. 1 GREE’s Motion in Limine No. 1 “Motion to Exclude Evidence or Argument of PTAB

Proceedings” asks that: “Supercell [] be precluded from offering evidence, testimony, opinion, discussion, or attorney argument referencing any proceedings with the United States Patent Trials and Appeals Board (“PTAB”) regarding any patents asserted by either party, or any Federal Circuit proceeding resulting from the same, or that any such proceeding has been filed, instituted, denied or otherwise resolved including at least the exhibits listed at Appx. A.”

Dkt. No. 186 at 6. GREE argues that such evidence is irrelevant to any issue before the jury and poses a danger of unfair prejudice and jury confusion substantially outweighing probative value. Id. at 6–7. GREE notes that in Case Nos. 2:19-cv-00070-JRG-RSP and 2:19-cv-00071-JRG-RSP, two previous cases between GREE and Supercell, the Court granted Supercell’s motion in limine on this issue “with the narrow exception of allowing GREE to reference Supercell’s ‘challenges to GREE’s patents’ given the relevance in that case to notice and pre-issuance damages.” Id. at 7. GREE argues that Supercell opposes this motion in limine “on the basis that it should be permitted to reference the existence, status, details, and outcome of PTAB and non-final Federal Circuit proceedings between the parties.” Id. GREE asserts that “there are outstanding decisions on a number of these proceedings” and such information “only stands to improperly influence the jury’s presumption of validity and runs afoul of existing precedent.” Id. Supercell responds that GREE brings this motion to use the demand letter and litigation history as evidence of willfulness while protecting itself from Supercell’s defense that it proactively sought to invalidate the patent identified in the demand letter. Dkt. No. 206 at 6. Supercell explains that “[o]n September 12, 2016, counsel for GREE sent the CEO of Supercell a demand letter, listing 19 Japanese patents and U.S. Patent Application No. 14/983,984, which matured into U.S. Patent No. 9,597,594. Supercell successfully challenged the validity of this

patent before the PTAB.” Id. Supercell argues that various claims of the ’594 Patent were held invalid by the PTAB and the Federal Circuit affirmed and invalidated further claims and that Supercell should be permitted to “use GREE’s admission that the continuation patents are not patentably distinct from the invalid claims of the ’594 patent as further evidence that Supercell’s belief regarding the invalidity of the patents was well founded and applicable to the continuation patents at issue in the present case.” Id. at 6–7. Supercell continues, noting that six continuations from the ’594 Patent are asserted and GREE “admitted during PTAB proceedings [they] are not patentably distinct from the claims challenged in the IPR.” Id. at 7. In the time since the briefing on the motions in limine were filed, the case has narrowed further and the Court has issued a Report and Recommendation

recommending that the asserted patents in GREE, Inc. v. Supercell Oy, 2:19-cv-00200-JRG-RSP (the “-200 Case”) be found invalid under 35 U.S.C. § 101. Dkt. No. 262. Supercell further argues that the PTAB proceeding on the ’594 Patent is not pending, nor has it been vacated, but rather that the PTAB issued a final written decision and the Federal Circuit affirmed its invalidity finding and found further claims invalid. Id. at 8. GREE argued that GREE is not asserting any patent in this case to which a petition is currently instituted at the PTAB, the PTAB decisions as to the Atobe I patents have been remanded by the Federal Circuit, and the ’594 Patent related to a different claim scope. Dkt. No. 186 at 7. At issue is the probative value toward the reasonableness of Supercell’s state of mind regarding validity and willfulness and the prejudice and jury confusion caused by introduction of PTAB proceedings and related Federal Circuit proceedings. Notably at issue is the ’594 Patent and patents sharing its specification—patents the undersigned recommends are invalid. See Dkt. No.

262. At the pretrial conference, GREE argued that regarding willfulness, Supercell has not disclosed a witness who can say as a subjective matter they believed that the patents are invalid and Supercell has not relied on an opinion of counsel. Supercell argued that the issue came up in corporate representatives Mr. Araki’s and Mr. Harper’s testimonies. When asked what Supercell intends to present to the jury about the PTAB proceedings, counsel for Supercell responded with the fact they were instituted, the result at the PTAB where it is relevant, and the Federal Circuit’s decision subsequent to that. Supercell also reiterated the belief that the claims invalidated by the PTAB and Federal Circuit are patentably indistinct from the claims asserted in this trial. GREE argued that they are not asserting the ’594 Patent in this case,

but rather descendant patents with different claims, and that they did not admit the claims were patentably indistinct for § 101 purposes. At the most recent pretrial conference on April 23, 2021, GREE further argued that, aside from the proceedings regarding the patents asserted in the -200 Case, all remaining PTAB proceedings have not been instituted and were filed after lawsuits between GREE and Supercell began. Between the ’594 Patent, its descendant patents, and the history of those patents as previously asserted but now recommended invalid, there is a overwhelming risk of jury confusion, waste of time, and unfair prejudice by admitting all of this evidence in this matter. However, Supercell should not be completely restricted from presenting any evidence regarding the challenges to the patents in its defense against willfulness. GREE noted that in Case Nos. 2:19-cv-00070-JRG-RSP and 2:19-cv-00071-JRG-RSP, two previous cases between GREE and Supercell, the Court granted Supercell’s motion in limine

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