Lynwood Investments CY Limited v. Maxim Konovalov, et al.

CourtDistrict Court, N.D. California
DecidedOctober 21, 2025
Docket3:20-cv-03778
StatusUnknown

This text of Lynwood Investments CY Limited v. Maxim Konovalov, et al. (Lynwood Investments CY Limited v. Maxim Konovalov, et al.) 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
Lynwood Investments CY Limited v. Maxim Konovalov, et al., (N.D. Cal. 2025).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 LYNWOOD INVESTMENTS CY Case No. 20-cv-03778-MMC (KAW) LIMITED, 8 Plaintiff, ORDER GRANTING IN PART AND 9 DENYING IN PART MOTION TO v. COMPEL 10 MAXIM KONOVALOV, et al., Re: Dkt. No. 228 11 Defendants. 12 13 Pending before the Court is Plaintiff Lynwood Investments CY Ltd.’s motion to compel 14 non-party Netflix, Inc.’s (“Netflix”) compliance with a subpoena. (Pl.’s Mot. to Compel, Dkt. No. 15 228.) Having considered the parties’ filings, the relevant legal authorities, and the arguments 16 made at the October 16, 2025 hearing, the Court GRANTS IN PART and DENIES IN PART 17 Plaintiff’s motion to compel. 18 I. BACKGROUND 19 The sole claim in this case is Plaintiff’s copyright claim based upon the NGINX1 Plus 20 software code, which was allegedly developed by Defendants Igor Sysoev, Maxim Konovalov, 21 and Gleb Smirnoff while employed at Rambler Internet Holding LLC (“Rambler”) in Russia. (See 22 Sec. Amend. Compl. (“SAC”) ¶ 1, Dkt. No. 217; 2/28/25 CMC St. at 2, Dkt. No. 209.) Plaintiff 23 asserts that because NGINX Plus is a work for hire, it was exclusively owned by Rambler, who 24 later assigned its interest to Plaintiff. (SAC ¶ 183.) 25 Specifically, Defendant Sysoev was a software engineer at Rambler from November 14, 26 2000 through December 1, 2011. (SAC ¶¶ 51.) While employed at Rambler, Defendant Sysoev 27 1 developed the NGINX software code as part of his official duties, using Rambler’s infrastructure 2 and resources. (SAC ¶ 108.) In 2004, Defendant Sysoev released some of the NGINX code as 3 open source software, but stockpiled other NGINX code between 2009 and his separation from 4 Rambler in 2011. (SAC ¶¶ 126-27.) Plaintiff alleges that Defendants Sysoev, Smirnoff, and 5 Konovalov intended to create an “open core” business model, using the Open Source NGINX to 6 build name recognition and goodwill while using the stockpiled NGINX code to develop a 7 proprietary NGINX Plus that could be commercially licensed on top of and in conjunction with 8 the Open Source NGINX code. (SAC ¶¶ 6, 150.) 9 Once Open Source NGINX was sufficiently popular and the stockpiled NGINX Plus code 10 was sufficiently developed and tested, Defendants Sysoev, Smirnoff, and Konovalov created their 11 own NGINX business while still employed at Rambler. (SAC ¶¶ 150, 169, 171.) In September 12 2011, the NGINX business brought on Netflix as its first customer, providing Netflix with content 13 delivery network (“CDN”)-related “custom” add-ons to the Open Source NGINX. (SAC ¶¶ 212- 14 13, 217.) Plaintiff asserts that the NGINX CDN that was provided to Netflix in 2011 and 2012 15 was developed in 2010 and 2011, and was one of the first products formally released under the 16 name NGINX Plus in 2013. (Pl.’s Mot. to Compel at 6.) 17 In October 2011, the NGINX business obtained their first venture capital seed investment. 18 (SAC ¶ 213.) During that time, Defendants Sysoev, Smirnoff, and Konovalov began staggering 19 their resignations from Rambler, with Defendant Konovalov leaving in April 2011, Defendant 20 Sysoev leaving in December 2011, and Defendant Smirnoff leaving in November 2012. (SAC ¶¶ 21 37, 93, 152.) When Defendant Smirnoff left, he allegedly acted as the “cleanup man,” removing 22 the stockpiled NGINX Plus code from the Rambler servers and deleting communications 23 regarding the misappropriation of the NGINX business and NGINX Plus code. (SAC ¶ 10.) In 24 March 2019, the NGINX business was acquired for $670 million. (SAC ¶ 8.) 25 On June 8, 2020, the instant case was filed. (Dkt. No. 1.) Following several motions to 26 dismiss, the case was appealed to the Ninth Circuit. (See Ninth Cir. Slip Op., Dkt. No. 205.) The 27 Ninth Circuit reversed the dismissal of the copyright claim only, based on Plaintiff’s allegation 1 and Open Source NGINX, in both source code and executable form, conceived and/or developed 2 before the end of 2011, when Sysoev left the employ of Rambler.” (Id. at 13.) The Ninth Circuit 3 found that while Plaintiff could not plausibly assert a copyright infringement claim in Open 4 Source NGINX, Plaintiff could bring a claim based on NGINX Plus developed at Rambler. (Id. at 5 13-14.) 6 On March 7, 2025, the presiding judge held a case management conference (“CMC”), 7 setting a deadline for Initial Phase Fact Discovery. (CMC Minutes at 1, Dkt. No. 210.) Initial 8 Phase Fact Discovery was to be “[l]imited to whether any NGINX Plus code was written by 9 defendant Sysoev or other former Rambler employees during their employment by Rambler before 10 the end of 2011.” (Id.) On March 10, 2025, the presiding judge issued a Pretrial Preparation 11 Order, which again reiterated that the Initial Phase Fact Discovery was limited to whether the 12 NGINX Plus code was written by Defendant Sysoev or other former Rambler employees “before 13 the end of 2011.” (Pretrial Prep. Order at 2, Dkt. No. 211.) 14 On June 10, 2025, Plaintiff served a subpoena on Netflix, with 31 requests for production. 15 (Major Decl. ¶ 3, Dkt. No. 230.) Netflix objected on the grounds that the subpoena was unduly 16 burdensome and premature, and that portions of the discovery sought fell outside the scope of the 17 Initial Phase Fact Discovery. (Major Decl., Exh. 2 at 3.) 18 On August 29, 2025, Plaintiff filed the instant motion to compel discovery from Netflix. 19 That same day, the motion was referred to this Court. (Dkt. No. 231.) On September 19, 2025, 20 Netflix filed its opposition. (Netflix Opp’n, Dkt. No. 243.) On October 2, 2025, Plaintiff filed its 21 reply.2 (Pl.’s Reply, Dkt. No. 245.) 22 II. LEGAL STANDARD 23 Federal Rule of Civil Procedure 45 governs discovery of nonparties by subpoena. “The 24 scope of discovery under Rule 45 is the same as under Rule 26(b).” Waymo LLC v. Uber Techs., 25 Inc., No. 17-cv-939-WHA (JSC), 2017 U.S. Dist. LEXIS 105394, at *8 (N.D. Cal. July 7, 2017). 26

27 2 Plaintiff’s reply fails to comply with Civil Local Rule 3-4(c)(2)(B), which requires that all text, 1 Rule 26(b), in turn, allows a party to “obtain discovery regarding any nonprivileged matter that is 2 relevant to any party’s claim or defense and proportional to the needs of the case[.]” “Underlying 3 the protections of Rule 45,” however, “is the recognition that ‘the word non-party serves as a 4 constant reminder of the reasons for the limitations that characterize third-party discovery. Thus, a 5 court determining the propriety of a subpoena balances the relevance of the discovery sought, the 6 requesting party’s need, and the potential hardship to the party subject to the subpoena.” Gonzales 7 v. Google, Inc., 234 F.R.D. 674, 680 (N.D. Cal. 2006). 8 III. DISCUSSION 9 As an initial matter, the parties acknowledged at the hearing that Plaintiff and Netflix have 10 not fully met and conferred as to each individual request due to Netflix’s threshold objections that: 11 (1) Plaintiff is improperly seeking discovery from Netflix without identifying the “gaps” in party 12 discovery that non-party discovery is expected to fill, and (2) Plaintiff’s subpoena exceeds the 13 scope of Initial Phase Fact Discovery because it seeks documents through December 31, 2012. 14 (See Pl.’s Mot. to Compel at 12; Major Decl. ¶ 9; Netflix Opp’n at 6-12.) Thus, the Court is not in 15 a position to consider whether each of Plaintiff’s discovery requests are appropriate. The Court 16 will resolve these threshold issues, determine whether NGINX Plus-related code should be 17 produced, and provide guidance to assist with any future meet and confers. 18 A. Initial Phase Fact Discovery Timeframe 19 Plaintiff and Netflix dispute whether Initial Phase Fact Discovery extends through the end 20 of 2011 or 2012. (Pl.’s Mot.

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Bluebook (online)
Lynwood Investments CY Limited v. Maxim Konovalov, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/lynwood-investments-cy-limited-v-maxim-konovalov-et-al-cand-2025.