Hynix Semiconductor Inc. v. Rambus Inc.

609 F. Supp. 2d 951, 2009 U.S. Dist. LEXIS 13530, 2009 WL 440473
CourtDistrict Court, N.D. California
DecidedFebruary 23, 2009
DocketC-00-20905 RMW
StatusPublished
Cited by14 cases

This text of 609 F. Supp. 2d 951 (Hynix Semiconductor Inc. v. Rambus Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hynix Semiconductor Inc. v. Rambus Inc., 609 F. Supp. 2d 951, 2009 U.S. Dist. LEXIS 13530, 2009 WL 440473 (N.D. Cal. 2009).

Opinion

PUBLIC REDACTED ORDER GRANTING IN PART AND DENYING IN PART RAMBUS’S MOTION FOR POST-VERDICT RELIEF

RONALD M. WHYTE, District Judge.

This patent/antitrust litigation involving dynamic random access memory (“DRAM”) interface technology patented by Rambus and used by Hynix, 1 among others, was bifurcated into three phases, each of which had to be tried. The issue in the first phase was whether Rambus’s patent infringement claims were barred by the doctrine of unclean hands. Hynix contended that Rambus spoliated evidence resulting in prejudice to Hynix. On January 5, 2006 the court issued its Findings of Fact and Conclusions of Law on Unclean Hands Defense in favor of Rambus. Hynix Semiconductor Inc. v. Rambus Inc., 591 F.Supp.2d 1038 (N.D.Cal.2006). The second phase concerned Rambus’s allegations that Hynix infringed U.S. Patents 5,915,105, 6,034,918, 6,324,120, 6,378,020, 6,426,916, and 6,452,863. On April 26, 2006 a jury returned a verdict that Ram-bus’s patent claims were infringed and that Rambus was entitled to hundreds of millions in damages. Docket No. 2053 (Apr. 24, 2006). The court ordered a new trial on damages unless Rambus elected to remit the award to reflect the maximum reasonable royalty rates established at trial, which Rambus did. Docket Nos. 2197 (Jul. 14, 2006); 2229 (Jul. 27, 2006). The third and final phase involved allegations by Hynix that Rambus obtained its patents in violation of its disclosure obligation to members of a standards setting organization (“JEDEC”) of which it was a member and committed antitrust and related violations by attempting to assert its patent claims against manufacturers of DRAMs that complied with the JEDEC standard. Hynix’s allegations in this third phase were tried in a consolidated proceeding with similar claims made by other DRAM manufacturers. On March 26, 2008 a jury returned a verdict in favor of Rambus and against Hynix and the other manufacturers on their legal claims. The court will shortly issue its Findings of Fact and Conclusions of Law on the equitable claims and defenses in the third phase. Now, after over eight years of litigation, three discrete trials, and hundreds of motions, the court hereby issues its rulings on the last pending motions and seeks the parties’ input on the form of the judgment to be entered.

Rambus moves for a permanent injunction against Hynix, an award of supplemental damages, and its attorney’s fees. Unfortunately, Rambus did not include a proposed order with its initial moving papers as required by Civil Local Rule 7-2(c). The lack of a proposed order hindered Hynix’s ability to oppose Rambus’s request for injunctive relief, for example, because Hynix was not certain of the scope of Rambus’s requested relief. Rambus filed its proposed order with its reply. See Docket No. 3735 (Jun. 6, 2008). 2

*956 Hynix opposes the request for an injunction and has also filed a motion to stay any injunction pending an appeal. 3 The court has reviewed the papers and considered the arguments of counsel. For the following reasons, the court denies Rambus’s request for attorney’s -fees, grants in part Rambus’s request for supplemental damages, and denies Rambus’s request for an injunction. Hynix’s motion for a stay of any injunction is denied as moot.

I. ATTORNEY’S FEES

Rambus asserts that this is an “exceptional case” and that it should therefore receive its attorney’s fees. See 35 U.S.C. § 285. Whether a prevailing party is entitled to attorney’s fees is a two-step inquiry. Cybor Corp. v. FAS Technologies, Inc., 138 F.3d 1448, 1460 (Fed.Cir. 1998) (en banc). First, the district court must make factual findings as to whether the case is “exceptional.” Id. Second, the court must exercise its discretion as to whether or not attorney’s fees are appropriate. Id. Rambus bears the burden of establishing the exceptional nature of the case by clear and convincing evidence, Ruiz v. A.B. Chance Co., 234 F.3d 654, 669 (Fed.Cir.2000), and its argument falters at this first step.

In determining whether a case is “exceptional,” the court may consider a number of factors, including, for example, whether the infringer engaged in litigation misconduct, advanced frivolous arguments, or willfully infringed the patent. Epcon Gas Systems, Inc. v. Bauer Compressors, Inc., 279 F.3d 1022, 1034 (Fed.Cir.2002). Rambus does not argue that Hynix • engaged in either of the former, and Rambus cannot prove the latter. Despite Ram-bus’s contention in its brief that Hynix “knowingly and willfully infringed Ram-bus’s patents” and that Hynix lacked a good faith belief in its non-infringement, Rambus did not attempt to prove willfulness because it dropped the issue to avoid the possibility that the court would bifurcate the patent trial. Hrg. Tr. 15:2-10; 17:1-4; 29:4-6 (Feb. 23, 2006). In light of Rambus’s decision not to try the issue of willfulness, Hynix cannot be faulted for a failure to introduce evidence of its good faith belief in its non-infringement arguments. That aside, given the many close issues this litigation has involved, the court cannot conclude that Hynix lacked a good-faith basis for its positions on claim construction, non-infringement, invalidity and unenforceability.

Nevertheless, Rambus argues that the “Read factors” used to determine whether or not to enhance damages may also inform whether or not a case is exceptional. See Liquid Dynamics Corp. v. Vaughan Co., Inc., 449 F.3d 1209, 1225 (Fed.Cir. 2006) (listing the nine “Read factors” that may establish whether an infringer acted in bad faith and whether damages should be enhanced); Read Corp. v. Portee, Inc., 970 F.2d 816 (Fed.Cir.1992), abrogated on other grounds as recognized in Hoechst Celanese Corp. v. BP Chems. Ltd., 78 F.3d 1575, 1578 (Fed.Cir.1996). Implied in Rambus’s argument is the notion that a court may deem a case “exceptional” based on conduct that informs willfulness and enhanced damages, even where a showing of willfulness is not made.

*957 The court questions the correctness of Rambus’s expansize approach to the “exceptional case” inquiry is correct. 4 The Federal Circuit has held that where willful infringement is proven, a case may, or may not, be deemed “exceptional” under section 285. Golight, Inc. v. Wal-Mart Stores, Inc., 355 F.3d 1327, 1340 (Fed.Cir.2004) (explaining cases).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Akins v. Islamic Republic of Iran
District of Columbia, 2025
Ecoservices, LLC v. Certified Aviation Servs., LLC
340 F. Supp. 3d 1004 (C.D. California, 2018)
Verinata Health, Inc. v. Ariosa Diagnostics, Inc.
329 F. Supp. 3d 1070 (N.D. California, 2018)
Cobalt Boats, LLC v. Brunswick Corp.
296 F. Supp. 3d 791 (E.D. Virginia, 2017)
Wisconsin Alumni Research Foundation v. Apple, Inc.
261 F. Supp. 3d 900 (W.D. Wisconsin, 2017)
Polara Engineering, Inc. v. Campbell Co.
237 F. Supp. 3d 956 (S.D. California, 2017)
Douglas Dynamics, LLC v. Buyers Products Co.
76 F. Supp. 3d 806 (W.D. Wisconsin, 2014)
Apple, Inc. v. Samsung Electronics Co.
67 F. Supp. 3d 1100 (N.D. California, 2014)
Creative Internet Advertising Corp. v. Yahoo! Inc.
689 F. Supp. 2d 858 (E.D. Texas, 2010)
CREATIVE INTERNET ADVERTISING CORPORATION v. Yahoo! Inc.
674 F. Supp. 2d 847 (E.D. Texas, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
609 F. Supp. 2d 951, 2009 U.S. Dist. LEXIS 13530, 2009 WL 440473, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hynix-semiconductor-inc-v-rambus-inc-cand-2009.