Masimo Corporation v. Sotera Wireless

CourtDistrict Court, S.D. California
DecidedFebruary 1, 2021
Docket3:19-cv-01100
StatusUnknown

This text of Masimo Corporation v. Sotera Wireless (Masimo Corporation v. Sotera Wireless) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Masimo Corporation v. Sotera Wireless, (S.D. Cal. 2021).

Opinion

6 7 UNITED STATES DISTRICT COURT 8 FOR THE SOUTHERN DISTRICT OF CALIFORNIA 9 MASIMO CORPORATION, Case No. 19-cv-01100-BAS-NLS 10 Plaintiff, ORDER GRANTING DEFENDANT 11 SOTERA WIRELESS’S MOTION v. TO STAY 12 SOTERA WIRELESS; HON HAI (ECF No. 48) 13 PRECISION INDUSTRY CO., LTD., 14 Defendants. 15 16 Before the Court is Defendant Sotera Wireless’s (“Sotera”) Motion to Stay 17 Proceedings (“Stay Motion” or “Motion”). (ECF No. 48.) Sotera seeks a stay in light of 18 its filings of nine petitions for inter partes review (“IPR”) with the Patent and Trial Appeal 19 Board (“PTAB”) for each of the nine patents asserted by Masimo in this litigation. Masimo 20 opposes and Sotera replies. (ECF Nos. 51, 58.) The Court finds the Motion suitable for 21 determination without oral argument. See CivL.R. 7.1(d)(1). For the foregoing reasons, 22 the Court GRANTS Sotera’s Motion. 23 I. BACKGROUND 24 A. History of This Action 25 Plaintiff Masimo Corporation (“Masimo”) filed this patent infringement action on 26 June 12, 2019 against Defendants Sotera and Hon Hai Precision Industry Co. Ltd. (“Hon 27 Hai”) (collectively, “Defendants”). (ECF No. 1.) The suit involves nine patents and 94 28 asserted claims, of which 80 claim terms are in dispute. (Stay Mot. at 7.) 1 Sotera filed the instant Motion to Stay on May 20, 2020. (ECF Nos. 48.)1 Between 2 May 8, 2020 and June 13, 2020, Sotera filed petitions for IPR on all nine asserted patents 3 with the PTAB. (Stay Mot. at 9.) As of the date of this Order, the PTAB has instituted 4 IPR on eight of the patents asserted in this litigation and denied IPR as to one. (See ECF 5 No. 102; see also ECF Nos. 91, 92, 94–96, 98.) The last IPR institution was granted on 6 December 7, 2020. (ECF No. 102.) 7 B. Overview of IPR 8 The IPR procedure was created “to create a timely, cost-effective alternative to 9 litigation.” Changes to Implement IPR Proceedings, Post–Grant Review Proceedings, and 10 Transitional Program for Covered Business Method Patents, 77 Fed. Reg. 48,680 (Aug. 11 14, 2012) (codified at 37 C.F.R. §§ 42.100 et seq.); see also 35 U.S.C. §§ 311–319. The 12 procedure is designed, in part, “to minimize duplicative efforts by increasing coordination 13 between district court litigation and inter partes review.” 77 Fed. Reg. at 48,721. 14 IPR allows a party other than the patentee to bring an adversarial proceeding in the 15 PTO to establish that the patent claims are invalid under 35 U.S.C. §§ 102 or 103. 35 16 U.S.C. § 311. IPR is adjudicative and conducted before a panel of three technically trained 17 Administrative Patent Judges of the PTAB. 35 U.S.C. § 6. The parties can conduct 18 discovery and have the right to an oral hearing. 35 U.S.C. § 316(a)(5), (8), (10), and (13). 19 The petitioner need only prove invalidity by a preponderance of the evidence. 35 U.S.C. 20 § 316(e). The parties may also settle. 35 U.S.C. § 317. PTAB decisions are appealed 21 directly to the Federal Circuit. 35 U.S.C. § 319; 35 U.S.C. § 141(c). 22 The PTO will grant a request for IPR if “there is a reasonable likelihood that the 23 petitioner would prevail with respect to at least 1 of the claims challenged in the 24 petition.” 35 U.S.C. § 314(a). If the PTO grants review, a final determination must be 25

26 1 The Court previously granted Hon Hai’s Motion to Dismiss the Complaint, after which Masimo filed a First Amended Complaint (“FAC”). (ECF Nos. 46, 52.) Hon Hai moved to dismiss the FAC, 27 which was granted in part. (ECF Nos. 62, 103.) Masimo has since filed an SAC. (ECF No. 106.) Sotera filed an answer to the SAC and Hon Hai has once again filed a Motion to Dismiss, which is pending 28 1 issued “not later than 1 year” after the petition is granted. 35 U.S.C. § 316(a)(11). “If the 2 PTAB finds that a claim is unpatentable, and the patent holder fails to file a timely appeal 3 or the appeal is unsuccessful, then the PTO is required to issue a certificate cancelling the 4 claim, and the patent holder may no longer assert that claim in litigation or otherwise.” In 5 re Papst Licensing GmbH & Co. KG Patent Litig., 320 F. Supp. 3d 132, 134 (D.D.C. 2018) 6 (citing 35 U.S.C. § 318(b)). But if the claim survives IPR in a final written decision, the 7 petitioner is estopped from asserting that a claim is invalid “on any ground that the 8 petitioner raised or reasonably could have raised during that inter partes review.” 35 U.S.C. 9 § 315(e)(2). 10 II. LEGAL STANDARD 11 “Courts have inherent power to manage their dockets and stay proceedings, 12 including the authority to order a stay pending conclusion of a PTO reexamination.” 13 Ethicon, Inc. v. Quigg, 849 F.2d 1422, 1426–27 (Fed. Cir. 1988) (citations omitted). Courts 14 apply the same framework to motions to stay pending IPR used for motions to stay pending 15 patent reexamination, which includes consideration of the following factors: “(1) whether 16 discovery is complete and whether a trial date has been set; (2) whether a stay will simplify 17 the issues in question and trial of the case; and (3) whether a stay would unduly prejudice 18 or present a clear tactical disadvantage to the nonmoving party.” Universal Elecs., Inc. v. 19 Universal Remote Control, Inc., 943 F. Supp. 2d 1028, 1030–31 (C.D. Cal. 2013) 20 (quotations omitted). However, “[t]he inquiry is not limited to these three factors” because 21 “the totality of the circumstances governs.” Id. (quotations omitted). 22 “There is a liberal policy in favor of granting motions to stay proceedings pending 23 the outcome of re-examination, especially in cases that are still in the initial stages of 24 litigation and where there has been little or no discovery.” Aten Int’l Co., Ltd v. Emine 25 Tech. Co., Ltd., No. SACV 09–0843 AG (MLGx), 2010 WL 1462110, at *6 (C.D. Cal. 26 Apr. 12, 2010) (quotations omitted). But “[c]ourts are not required to stay judicial 27 proceedings pending re-examination of a patent.” Id. at *6 (quoting Nanometrics, Inc. v. 28 Nova Measuring Instruments, Ltd., No. C 06–2252 SBA, 2007 WL 627920, at *1 (N.D. 1 Cal. Feb. 26, 2007)). Nevertheless, courts have “recognized a liberal policy in favor of 2 granting motions to stay pending IPR.” Zomm, LLC v. Apple Inc., 391 F. Supp.

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Masimo Corporation v. Sotera Wireless, Counsel Stack Legal Research, https://law.counselstack.com/opinion/masimo-corporation-v-sotera-wireless-casd-2021.