In Re: Papst Licensing Digital Camera Patent Litigation - Mdl 1880

CourtDistrict Court, District of Columbia
DecidedAugust 24, 2017
DocketMisc. No. 2007-0493
StatusPublished

This text of In Re: Papst Licensing Digital Camera Patent Litigation - Mdl 1880 (In Re: Papst Licensing Digital Camera Patent Litigation - Mdl 1880) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In Re: Papst Licensing Digital Camera Patent Litigation - Mdl 1880, (D.D.C. 2017).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

IN RE PAPST LICENSING GMBH & CO. Misc. Action No. 07-493 (RDM)

KG PATENT LITIGATION MDL No. 1880

MEMORANDUM OPINION AND ORDER

This matter is before the Court on the Camera Manufacturers’ Motion for Leave to

Amend Invalidity Contentions as to the “new patents” (U.S. Pat. Nos. 8,966,144 and 8,504,746)

asserted by Papst in this multidistrict litigation.1 Dkt. 662. The Camera Manufacturers contend

that they recently discovered a break in the chain of priority that links Papst’s new patents to its

“old patents” (U.S. Pat. Nos. 6,470,399 and 6,895,449) rendering “Papst’s own earlier published

patent applications prior art to the [n]ew [p]atents.” Id. at 4; see also id. at 5–9, 12. Because this

theory was not set forth in the Camera Manufacturers’ invalidity contentions, they seek leave to

amend those contentions. Id. Papst opposes the Camera Manufacturers’ motion, arguing that the

Camera Manufacturers have failed to meet their burden of establishing “good cause” for

amending their invalidity contentions. Dkt. 669.

For the reasons explained below, the Court will GRANT the Camera Manufacturers’

motion for leave to amend their invalidity contentions.

I. BACKGROUND

Initiated almost a decade ago, this multidistrict litigation originally concerned two

patents—U.S. Patent Nos. 6,470,399 (’399 patent) and 6,895,449 (’449 patent). After extended

proceedings, the Court entered final judgment of non-infringement pursuant to Rule 54(b) with

1 Because Papst has not asserted the new patents against Samsung Techwin Co., Ltd. and Samsung Opto-Electronics America, Inc., they do not join the Camera Manufacturers’ motion for leave to amend. See Dkt. 662 at 4 n.1. respect to certain defendants, Dkts. 559, 560, and the plaintiff—Papst Licensing GMBH & Co.

KG (“Papst”)—appealed that partial final judgment, Dkt. 561. In February 2015, the Federal

Circuit concluded that the Court had incorrectly construed various claims terms and, accordingly,

vacated the Court’s entry of summary judgment. In re Papst Licensing Digital Camera Patent

Lit., 778 F.3d 1255 (Fed. Cir. 2015). After the case was remanded, Papst asserted two additional

patents—U.S. Patent Nos. 8,504,746 (’746 patent) and 8,966,144 (’144 patent)—against the

defendants, and, over Papst’s objection, those new patent infringement actions were transferred

to this Court in October 2015 for inclusion in the pending multidistrict litigation. See Dkt. 606.

Following the transfer of the new cases asserting the ’746 and ’144 patents, the Court

issued its Ninth Practice and Procedure Order. Dkt. 608. Among other things, that Order

designated which cases would be included in the “First Wave” cases and designated the

defendants in those cases as the “Camera Manufacturers;” affirmed that the litigation would be

governed by the Patent Local Rules of the Northern District of California (“Patent Local Rules”);

stayed all discovery other than discovery relating to claims construction; and directed that the

Camera Manufacturers file their invalidity contentions no later than February 12, 2016. Id. at 1–

5. The Order emphasized that the Camera Manufacturers would be permitted to amend their

invalidity contentions only “by order of the Court upon a timely showing of good cause,” as

provided in Patent Local Rule 3-6. Id. at 6 (quoting Patent L.R. 3-6). The Camera

Manufacturers filed their invalidity contentions on January 29, 2016. Dkt. 620.

In July 2016, the multidistrict litigation was transferred to the undersigned judge, Dkt.

632, and the Court held a four-day claims construction hearing in November and December

2016. On October 17, 2016, roughly a month before the claims construction hearing, counsel for

the Camera Manufacturers wrote to Papst indicating that they intended to seek leave of the

Court, pursuant to Patent Local Rule 3-6, to amend their invalidity contentions with respect to 2

the ’746 and ’144 patents, and asking whether Papst would consent to the proposed amendment.

Dkt. 662-3 at 2. As explained in the October 17, 2016, letter, the Camera Manufacturers asserted

that the new patents were “not entitled to claim priority” back to the old patents because the

chain of priority linking them together “was broken.” Id. Specifically, the Camera

Manufacturers pointed out that patent application ’778—the application that the new patents cite

to support their priority claim back to the old patents, see Dkt. 662 at 6–7—failed to claim

priority to the ’399 patent or its application, Dkt. 662-3 at 2. Accordingly, the Camera

Manufacturers continued, “all asserted claims in the [new patents] [we]re invalid as anticipated

. . . by” the inventor’s “earlier publications” and applications. Id.; see also Dkt. 662 at 9. On

October 28, 2016, Papst responded in a letter that posed a series of questions relating to whether

the standards set forth in Patent Local Rule 3-6 were satisfied, denied that “there [wa]s any break

in the priority chain for” the new patents, and indicated that, “[b]ased on [the] October 17,

2016[,] letter, Papst [could not] consent to the [Camera Manufacturers’] proposed amendment to

[their] invalidity contentions.” Dkt. 662-4 at 2.

Notwithstanding Papst’s denial that there was a break in the priority chain, on November

10, 2016, Papst filed a petition with the U.S. Patent and Trademark Office (“PTO”) for a

“delayed claim of priority,” arguing that the failure of the ’778 patent application to claim

priority to the ’399 patent was the “result of an administrative error” that had only “recently

come to [Papst’s] attention.” Dkt. 662-1 at 4. The parties continued to correspond with each

other over the next several months. On December 7, 2016, the Camera Manufacturers responded

to the list of questions posed by Papst on October 28, 2016. Dkt. 662-5 at 2. They explained

that the ’778 application was not the application for either of the new patents, but rather was

“one of many applications related to” those patents; that the prosecution of the new patents

“spanned a period of [eighteen] years” and that the prosecution history included “tens of 3

thousands of pages;” that the Camera Manufacturers informed Papst of the issue “[u]pon

discover[y]” of the alleged priority defect; that Papst has been on notice of the issue “since at

least August” when it was raised in a similar case “pending in the Eastern District of Texas;” and

that Papst would suffer no prejudice by permitting the amendment. Id. About three weeks later,

Papst responded more definitively than in its first letter, asserting that “it is apparent that the

Camera Manufacturers . . . cannot demonstrate the requisite diligence for amending [their]

invalidity contentions” and that, accordingly, Papst would oppose their motion for leave to

amend. Dkt. 662-6 at 2.

By mid-January 2017, the Camera Manufacturers had learned that Papst had filed a

petition with the PTO for a delayed claim of priority with respect to the ’778 patent application,

and, on that basis, they asked, once “again[,] that Papst consent to the proposed amendment to

the invalidity contentions” in order to “avoid wasting the parties’ and the Court’s time with an

unnecessary dispute.” Dkt. 662-7 at 2. If Papst would not consent, the Camera Manufacturers

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In Re: Papst Licensing Digital Camera Patent Litigation - Mdl 1880, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-papst-licensing-digital-camera-patent-litigation-mdl-1880-dcd-2017.