Memory Integrity, LLC v. Intel Corp.

178 F. Supp. 3d 1022, 2016 U.S. Dist. LEXIS 48875, 2016 WL 1441655
CourtDistrict Court, D. Oregon
DecidedApril 12, 2016
DocketCase No. 3:15-cv-00262-SI
StatusPublished
Cited by1 cases

This text of 178 F. Supp. 3d 1022 (Memory Integrity, LLC v. Intel Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Memory Integrity, LLC v. Intel Corp., 178 F. Supp. 3d 1022, 2016 U.S. Dist. LEXIS 48875, 2016 WL 1441655 (D. Or. 2016).

Opinion

OPINION AND ORDER

Michael H. Simon, District Judge

In 2005, two sophisticated companies— Intel Corporation (“Intel”) and Sanmina-SCI Corporation (“Sanmina”) — entered into an agreement in which Intel agreed to disclose to Sanmina highly confidential information that Sanmina requested as part of its attempt to develop potentially lucrative technology that would be compatible with Intel products. In return for this information, Sanmina- agreed never to sue Intel for patent infringement based on any of Intel’s products that included any of the disclosed technologies. During Sanmina’s development efforts, the U.S. Patent and Trademark Office granted to Sanmina several patents, but Sanmina failed to create any marketable products. Ultimately, San-mina ended its research using Intel’s disclosed information and sold its patents to Memory Integrity, LLC (“Memory Integrity”). In this lawsuit, Memory Integrity seeks to hold Intel liable for patent infringement, which Intel argues is prohibited by thé covenant not to sue that Memory Integrity expressly assumed when it purchased Sanmina’s patents.

Memory Integrity asserts infringement claims against Intel under five patents: U.S. Patent Nos. 7,103,636 (the “’636 patent”), 7,107,409 (the “’409 patent”), 7,296,-121 (the “’121 patent”), 8,572, 206 (the “’206 patent”), and 8,898,254 (the “’254 patent”). These patents are all directed toward maintaining cache coherence in multiprocessor. computer systems.1 Based on the covenant not to sue that Intel negotiated with Memory Integrity’s predecessor in interest, Sanmina, Intel asks the Court to grant summary judgment in favor of Intel on: (1) all Memory Integrity’s infringement claims; (2) Intel’s counterclaim for declaratory judgment; and (3) Intel’s seventh affirmative defense. For the reasons discussed below, the Court grants Intel’s motion.

STANDARDS

A party is entitled to summary judgment if the “movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of,law.” Fed. R. Civ. P. 56(a). The [1025]*1025moving party has the burden of establishing the absence of a genuine dispute of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2648, 91 L.Ed.2d 266 (1986). If the moving party will bear the burden of proof at trial, “the movant must affirmatively demonstrate that no reasonable trier of fact could -find other than for the moving party.” Soremekun v. Thrifty Payless, Inc., 509 F.3d 978, 984 (9th Cir.2007). In patent litigation, contractual defenses to patent infringement — such as a covenant not to sue or an implied license — are affirmative defenses that the defendant must prove. See Meyers v. Brooks Shoe Inc., 912 F.2d 1459, 1461 (Fed.Cir.1990), overruled on other grounds by A.C. Aukerman Co. v. R.L. Chaides Const. Co., 960 F.2d 1020 (Fed.Cir.1992) (“And where the moving party has the burden of proof on a claim or defense raised in a summary judgment motion,, it must show that the undisputed facts establish every element of the claim or defense.”); Met-Coil Sys. Corp. v. Korners Unlimited, Inc., 803 F.2d 684, 687 (Fed.Cir.1986) (“As the alleged infringer, [the defendant] has the burden of showing the establishment of an implied license.”).

The court must view the evidence in the light most favorable to the non-movant and draw all reasonable inferences in the non-movant’s favor. Clicks Billiards Inc. v. Sixshooters Inc., 251 F.3d 1252, 1257 (9th Cir.2001). Although “[credibility determinations, the weighing of the evidence, and the drawing of legitimate inferences from the facts are jury functions, not those of a judge ... ruling on a motion for summary judgment,” the “mere existence of a scintilla of evidence in support of the plaintiffs position [is] insufficient ....” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). “Where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party, there is no genuine issue for trial.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (citation and quotation marks omitted).

BACKGROUND2

A. Sanmina’s “Project Isis” and the Covenant Not to Sue

In the mid-2000s, Sanmina and one it its subsidiaries, Newisys, Inc. (“Newi-sys”) tried to develop a “node controller” chip capable of connecting multiple Intel processors together in a multiprocessor computer system.3 Sanmina called this development effort “Project Isis.” In order to make the chip compatible with Intel processors, Sanmina needed detailed confidential information about how Intel’s processors worked. This confidential information included specifics about how Intel’s processors maintain cache coherence in a multiprocessor system. Intel agreed to provide Sanmina with the requested confidential information on the express condition that Sanmina sign a covenant not to sue Intel based on Intel’s use of any of the disclosed technology.

Before finalizing the covenant not to sue and delivering its secret documents, Intel negotiated several confidentiality agreements with Sanmina. On July 30, 2003, and August 23, 2003, Intel and Sanmina entered into two Corporate Non-Disclosure Agreements (“CNDAs”), which require [1026]*1026Sanmina and its successors to maintain the confidentiality of Intel’s confidential, proprietary, and trade secret information. Additionally, Intel and Samina entered into a Restricted Use Non-Disclosure Agreement (the “RUNDA”) on August 23, 2005. The RUNDA requires Sanmina and its successors to keep a record of all individuals who were given access to Intel’s confidential information. According to the RUNDA, Intel’s confidential information would:

remain confidential until it becomes: (a) rightfully in the public domain other than by breach of a duty to Intel; or (b) rightfully received from a third party without any limitation on disclosure; or (c) rightfully known to Recipient without any limitation on disclosure prior to its receipt from Intel; or (d) independently developed by Recipient’s employees who have not had access to the Confidential Information, or guidance from those who have had access; or (e) generally made available to third parties by Intel without restriction on disclosure.4

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Bluebook (online)
178 F. Supp. 3d 1022, 2016 U.S. Dist. LEXIS 48875, 2016 WL 1441655, Counsel Stack Legal Research, https://law.counselstack.com/opinion/memory-integrity-llc-v-intel-corp-ord-2016.