Lyft, Inc. v. Quartz Auto Technologies LLC

District Court, N.D. California·Decided November 18, 2022·No. 4:21-cv-01871·Unknown

Opinion

LYFT, INC., Case No. 21-cv-01871-JST (RMI)

Plaintiff, ORDER RE: DISCOVERY DISPUTES v. Re: Dkt. Nos. 101, 102 Defendant.

Now pending before the court are a pair of discovery disputes (dkts. 100, 102). As set forth herein, the undersigned finds that, pursuant to Federal Rule of Civil Procedure 78(b) and Civil Local Rule 7-1(b), the matters presented on both disputes are suitable for disposition without oral argument. By way of background, Plaintiff (“Lyft”) is engaged in the business of arranging and administering a peer-to-peer marketplace for on-demand ridesharing transportation services. See Compl. (dkt. 1) at 2. After acquiring a number of patents from one or more third parties, Defendant (“Quartz”) contacted Lyft to allege that the patents (U.S. Patent Nos. 7,007,013; 9,691,275; 6,944,443; 6,847,871; and 7,958,215) (collectively the “Patents-in-Suit”) were relevant to Lyft’s operations such that Quartz sought to secure certain payments from Lyft “to license a portfolio including the Patents-in-Suit.” See FAC (dkt. 15) at 2. In February of 2021, Quartz’s counsel emailed Lyft’s counsel to communicate the view that Lyft had infringed four of the Patents-in-Suit. Id. Given that Quartz had sued Lyft for infringement in another district – Lyft, in turn, filed the instant action in this court seeking a declaratory judgment of noninfringement as to each of the five Patents-in-Suit. See id. at 6-26. Through its Answer (dkt. 45), Quartz advanced three affirmative defenses (id. at 39); denied Lyft’s claims and many of their supporting allegations (see id. at 1-39); and, in turn, Quartz presented five counterclaims for infringement as Quartz’s Motion to Compel (Dkt. 100) Quartz moves to compel further responses to its Interrogatory (“ROG”) Nos. 1, and 2 through 6. See Ltr. Br. (dkt. 100) at 2. Quartz’s ROG No. 1 asks Lyft to describe the factual and legal basis for the contention that Lyft’s platforms and methods do not infringe the claims asserted in the Patents-in-Suit – directing Lyft to “explain[] in detail the basis and reasoning for each such contention.” See id., Exh. A (dkt. 100-1) at 3, 5. Quartz then contends that Lyft’s responses in this regard operated only to “provide[] a conclusory statement listing nearly every limitation from the asserted claims as supposedly not present in its accused systems.” See id. at 2. Regarding the level of specificity provided by Lyft, Quartz’s portion of the letter brief essentially asserts that “each limitation requires additional detail explaining why Lyft believes it is not met.” Id. However, Quartz does not provide any meaningful details or specifics as to how much more detail it seeks, or specifics as to which of Lyft’s responses are attended with insufficient detail, or why – instead, as to ROG. No. 1, Quartz’s portion of the letter brief has been painted with the broadest of brushes, simply asserting that Lyft’s responses should be more detailed. See generally id. at 2-4. On the other hand, Lyft notes that Quartz’s “deficient (and entirely conclusory) infringement contentions impede [Lyft’s] ability to [provide additional detail] without additional clarity from [Quartz] regarding how the accused technology could even possibly meet certain limitations.” Id. at 4. More specifically, Lyft contends “that the accused technologies simply do not perform certain elements of the asserted claims [and] [i]n several of these instances, [Quartz] itself has not pointed to any aspect of the accused technology that meets those limitations, and cannot do so, making [Quartz’s] request for additional detail virtually impossible to fulfill.” Id. Lyft then stated that Quartz’s argument in this regard attempts to saddle Lyft with the burden of disproving infringement: “Quartz vaguely alleges infringement and asks Lyft to provide a detailed explanation for why infringement is not possible.” Id. at 5. At bottom, Lyft contends that its response to the effect “that the accused functionality fails to meet meaningful requirements of the asserted claims directly responds to the interrogatory, but Lyft is happy to rephrase its response to confirm that Quartz fails to provide sufficient evidence of infringement for these limitations, if “[T]he movant has the initial burden of demonstrating relevance.” See United States v. McGraw-Hill Companies, Inc., Case No. CV 13-779-DOC (JCGx), 2014 U.S. Dist. LEXIS 197500, 2014 WL 164738, at *8 (C.D. Cal. 2014); see also Apple Inc. v. Samsung Electronics Co. Ltd., Case No. 12-CV-0630-LHK (PSG), 2013 U.S. Dist. LEXIS 91450, 2013 WL 3246094, at *21 n.84 (N.D. Cal. 2013) (“In this district, the party moving to compel has the burden of showing relevance.”); Soto v. City of Concord, 162 F.R.D. 603, 610 (N.D. Cal. 1995) (“[I]n general the party seeking to compel discovery bears the burden of showing that his request satisfies the relevance requirement of Rule 26.”). Most importantly for present purposes, conclusory statements are insufficient to establish a movant’s entitlement to discovery because, under Rule 26, “[a] party claiming that a request is important to resolve the issues should be able to explain the ways in which the underlying information bears on the issues as that party understands them.” See Apple Inc. v. Qualcomm Inc., No. 3:17-cv-00108-GPC-MDD, 2018 U.S. Dist. LEXIS 137539, at *17-18 (S.D. Cal. Aug. 14, 2018) (quoting Medicinova Inc. v. Genzyme Corp., Case No. 14-cv-2513- L(KSC), 2017 U.S. Dist. LEXIS 101450, 2017 WL 2829691, at *5 (S.D. Cal. June 29, 2017) (citing Fed. R. Civ. P. 26(b) advisory committee’s note (2015 amendments)). Thus, conclusory statements, or unsupported arguments, as to why the issuing party believes it is entitled to an order compelling discovery are insufficient to establish relevancy. See Apple Inc. v. Qualcomm Inc., 2018 U.S. Dist. LEXIS 101450 at *17-18 (citing Leadership Studies, Inc. v. Blanchard Training and Development, Inc., Case No. 15cv1831-WQH(KSC), 2017 U.S. Dist. LEXIS 100435, 2017 WL 2819847, at *6 (S.D. Cal. June 28, 2017) (“Based on the foregoing, plaintiff’s conclusory arguments about relevance and proportionality are not enough to convince the Court that it is entitled to an order compelling defendant to produce all of the [discovery in question].”). In light of these authorities, and given Quartz’s failure to explain, with any degree of specificity, what additional details (to which it would be entitled) are missing from Lyft’s response to ROG No. 1, the undersigned finds that Quartz has failed to carry its burden of establishing its entitlement to an order compelling Lyft to provide any further detail at all in this regard. Once again, Quartz has only stated that it wants “more” details, but it has not explained the precise information it seeks – instead, Quartz has only baldly stated that it wants more. Ironically, Quartz’s quest for more detail in this regard must fail because the request itself is wholly devoid of any detail. Thus, Quartz’s request as to ROG No. 1 is DENIED. As Quartz puts it, ROG Nos. 2 through 6 “seek basic information about relevant functionalities of Lyft’s accused methods and platforms.” See Ltr. Br. (dkt. 100) at 2. Specifically, Quartz seeks narrative descriptions of the step-by-step process by which the Lyft Platform matches riders to drivers and coordinates pick-up (ROG No. 2); the name of, and functionality provided by, any software modules involved in each step identified in response to ROG No. 2 (ROG No. 3); a description of the data collected and used to provide monitoring and notification features (ROG No. 4); a description of the information available to Lyft’s algorithms when considering which driver to match with a rider, and how the algorithms process the information to create a match (ROG No. 5); an

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Lyft, Inc. v. Quartz Auto Technologies LLC, (N.D. Cal. 2022).

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