Lam Research Corp. v. Schunk Semiconductor

65 F. Supp. 3d 863, 2014 U.S. Dist. LEXIS 118322, 2014 WL 4180935
CourtDistrict Court, N.D. California
DecidedAugust 22, 2014
DocketNo. C-03-1335 EMC; Docket Nos. 331, 346
StatusPublished
Cited by10 cases

This text of 65 F. Supp. 3d 863 (Lam Research Corp. v. Schunk Semiconductor) 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.

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Lam Research Corp. v. Schunk Semiconductor, 65 F. Supp. 3d 863, 2014 U.S. Dist. LEXIS 118322, 2014 WL 4180935 (N.D. Cal. 2014).

Opinion

ORDER DENYING XYCARB’S MOTION TO BIFURCATE AND LAM’S MOTION FOR SUMMARY JUDGMENT

EDWARD M. CHEN, United States District Judge

INTRODUCTION

Pending before the Court are Defendant Xycarb Ceramic’s (“Xycarb”) motion to bifurcate this action into two trials — one for liability and one for damages — and Plaintiff Lam Research Corporation’s (“Lam”) motion for partial summary judgment. The Court finds these motions suitable for disposition without a hearing and therefore VACATES the hearings set for August 28, 2014 (Xycarb’s motion to bifurcate) and September 4, 2014 (Lam’s motion for partial summary judgment). For the following reasons, the Court will DENY both motions.

DISCUSSION

I. Xycarb’s Motion to Bifurcate Trial into Liability and Damages Phases Is Denied

Xycarb has moved to bifurcate the trial into separate liability and damage phases. Xycarb contends that bifurcation will prevent juror confusion given the complicated nature of the damages questions in this case. It further contends that because it is overwhelmingly likely to prevail on the question of liability given this Court’s claim construction, bifurcation will likely eliminate the need for a trial on damages and will allow the parties to avoid expense in preparing and presenting evidence on damages. For the foregoing reasons, the motion to bifurcate is DENIED.

Federal Rule of Civil Procedure 42(b) provides that a court may “order a separate trial of one or more separate issues” for “convenience, to avoid prejudice, or to expedite and economize.” Fed. R. Civ. P. 42(b). Whether to grant bifurcation is left to the sound discretion of the district court. See Hangarter v. Provident Life & Acc. Ins. Co., 373 F.3d 998, 1021 (9th Cir.2004); Jinro Am. Inc. v. Secure Investments, Inc., 272 F.3d 1289 (9th Cir.2001). While patent cases frequently present complicated liability and damages question, bifurcation in patent cases remains the exception rather than the rule. See Mformation Techs., Inc. v. Research in Motion Ltd., C08-04990 JW, 2012 WL 1142537, at *1 n.6 (N.D.Cal. Mar. 29, 2012). In determining whether to bifurcate, courts consider a number of factors, including whether bifurcation would promote “efficient judicial administration,” promote convenience, simplify discovery or conserve resources, reduce the risk of juror confusion, and separability of the issues. See Medtronic Minimed Inc. v. Animas Corp., CV 12-04471 RSWL RZX, 2013 WL 3233341, at *1 (C.D.Cal. June 25, 2013); McDermott v. Potter, No. 08-03432 SI, 2010 WL 956808, at *1 (N.D.Cal. Mar. 12, 2010).

First, the Court finds that questions of liability and damages are not wholly separate questions in this case. Lam has alleged that Xycarb’s infringement of the ’456 patent'was “willful, wanton, deliberate, without license, and with full knowledge and awareness of [Lam’s] patent rights.” Compl. ¶9 (Dkt. No. 1). Courts have recognized that questions of liability and damages overlap to an extent where [866]*866wilful infringement is alleged. For example, in Plew v. Limited Brands, Inc., No. 08 Civ. 3741(LTS)(MHD), 2012 WL 379983 (S.D.N.Y. Feb. 6, 2012), the court noted that a “wilfulness determination is ‘inextricably bound to the facts underlying the infringement.’ ” and that this factor weighed against granting bifurcation. Id. at *9 (quoting Computer Assoc. Int’l, Inc. v. Simple.com, Inc., 247 F.R.D. 63, 67-68 (E.D.N.Y.2007)); see also Trading Techs. Int’l, Inc. v. eSpeed, Inc., 431 F.Supp.2d 834, 841 (N.D.Ill.2006) (“The need to consider all of the factors implies that evidence of liability and wilfulness will likely overlap.”).

Second, Xycarb argues that it is “likely” that Xycarb will prevail on the question of liability. Some courts have looked to the probability that a defendant would prevail on infringement in determining whether bifurcation is appropriate. See, e.g., Real v. Bunn-O-Matic Corp., 195 F.R.D. 618, 622 (N.D.Ill.2000). In support of its contention that it will likely prevail, Xycarb points to the fact that Lam, in its claim construction brief, stated that the “meaning of the word ‘bonding’ in the asserted patents is the primary issue with respect to liability in this case.” Dkt. No. 272. In light of this Court’s construction of the term “bonding” as excluding connections “maintained solely by mechanical force,” Xycarb argues it is overwhelmingly likely to prevail at the liability phrase. The Court cannot so conclude on this record. Lam contends that Xycarb’s product does not rely solely on mechanical force for bonding, but rather employs a graphite slurry and seal that provides bonding force. Xycarb’s opinion of the strength of its own case notwithstanding, it has not moved for summary judgment on Lam’s theory and, as a result, there is no way for the Court to determine the strength of Lam’s argument. Accordingly, this factor does not favor bifurcation. See Brown v. Toscano, 630 F.Supp.2d 1342, 1346 (S.D.Fla.2008) (“Defendants did not proffer any facts or explanation supporting their contention that they will likely prevail on the infringement issue.... [T]he record now before the Court is simply inadequate for the Court to determine whether a finding of infringement is likely. This factor, therefore, does not weigh in favor of bifurcation.”).1

Third, the Court finds that the risk of prejudice does not support bifurcation. Prejudice comes in two forms — the risk of jury confusion on complex issues if bifurcation is denied and the risk of considerable delay, if bifurcation is denied. See Briggs & Stratton Corp. v. Chongqing RATO Power Co., Ltd., 5:13-CV-316 LEK/ATB, 2013 WL 5963151 (N.D.N.Y. Nov. 7, 2013). Here, the Court finds that there is little risk of juror confusion given the nature of this case. Even granting that there are complicated damage theories implicated (advanced market access, calculation of lost profits where there are multiple potential causes, etc.), this is true in almost every patent case. See, e.g., Real v. Bunn-O-Matic Corp., 195 F.R.D. 618 [867]*867(N.D.Ill.2000) (“Although Defendant claims that complex damages calculations may be involved, there is no evidence to suggest that this computation is more unusual complex or complicated than the average patent case.”) For example, in THK America, Inc. v. NSK, Ltd., 141 F.R.D. 463 (N.D.Ill.1991), the district court denied bifurcation despite the fact that the case raised a similar “accelerated market entry damages” theory. See THK America, Inc. v. NSK, Ltd., 917 F.Supp. 563, 575 (N.D.Ill.1996).

Further, any complicated issues in the calculation for damages is mitigated substantially by the fact that this case involves allegations that a single defendant infringed a single patent in a single product. These facts make this case quite different from cases where a significant risk of juror confusion warranted bifurcation of damages and liability. Compare Real, 195 F.R.D. at 622 (rejecting bifurcation, in part, because “[t]his ease involves only one patent and one allegedly infringing product” and involved “types of computations regularly performed in patent litigation”); and Depomed Inc. v.

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65 F. Supp. 3d 863, 2014 U.S. Dist. LEXIS 118322, 2014 WL 4180935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lam-research-corp-v-schunk-semiconductor-cand-2014.