Mercexchange, L.L.C. v. eBay, Inc.

467 F. Supp. 2d 608, 2006 U.S. Dist. LEXIS 91059, 2006 WL 3780606
CourtDistrict Court, E.D. Virginia
DecidedDecember 18, 2006
DocketCIV.A. 2:01CV736
StatusPublished
Cited by8 cases

This text of 467 F. Supp. 2d 608 (Mercexchange, L.L.C. v. eBay, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mercexchange, L.L.C. v. eBay, Inc., 467 F. Supp. 2d 608, 2006 U.S. Dist. LEXIS 91059, 2006 WL 3780606 (E.D. Va. 2006).

Opinion

ORDER AND OPINION

FRIEDMAN, District Judge.

On November 17, 2006, the court conducted a hearing to address four motions filed by eBay, Inc. and Half.com, Inc. (collectively “eBay”): (1) “Motion to Strike New & Irrelevant Evidence”; (2) “Motion Strike Nahan Declaration”; (3) “Motion for Leave to Submit Motion to Enforce the Court’s Protective Order”; and (4) “Motion to Enforce Court’s Protective Order.” For the reasons set out herein, the court DENIES both eBay’s motion to strike new evidence and motion to strike the Nahan declaration; however, such ruling requires that both eBay and MercExchange be afforded the opportunity to perform limited discovery in order to update the record to the present time. Additionally, the court GRANTS eBay’s motion for leave to submit the protective order motion and GRANTS in part, and DENIES in part, the substantive protective order motion.

I. Factual and Procedural Background

In an effort to avoid repeating a detailed depiction of the facts and procedural posture of the instant litigation, the limited background pertinent to the instant motions is as follows: subsequent to the grant of summary judgment in favor of eBay based on a finding of invalidity on the asserted claims of the ’051 patent and a jury verdict awarding damages to Mer- *610 cExchange based on eBay’s infringement of the ’265 patent, on August 6, 2003, this court entered an order and opinion denying MercExchange’s motion for an injunction. 1 Mercexchange, L.L.C. v. eBay, Inc., 275 F.Supp.2d 695 (E.D.Va.2003). On appeal, the Federal Circuit vacated this court’s grant of summary judgment on the ’051 patent and reversed the denial of MercExchange’s motion for a permanent injunction. MercExchange, L.L.C. v. eBay, Inc., 401 F.3d 1323 (Fed.Cir.2005). The Supreme Court granted certiorari to address the proper standard for entry of a permanent injunction and ultimately vacated the Federal Circuit’s injunction ruling, defining the traditional four-part equitable test as the proper standard for the injunction calculus in patent cases. eBay Inc. v. MercExchange, L.L.C., — U.S. -, 126 S.Ct. 1837, 164 L.Ed.2d 641 (2006).

This matter has now been remanded to this court for consideration of MercEx-change’s renewed motion for a permanent injunction, as well as for an eventual trial on the ’051 patent. The two primary motions presently under consideration by the court are: (1) MercExchange’s renewed motion for a permanent injunction; and (2) eBay’s motion to stay the proceedings in light of the Patent and Trademark Office (PTO) reexamination of both the ’265 and ’051 patents. The four motions that are addressed in this order are secondary motions that are relevant to this court’s consideration of the motion for an injunction and motion to stay. Because the court previously denied MercExchange’s motion for an injunction in an order dated August 6, 2003, the court’s references to “new” evidence or “recent” developments refer to occurrences subsequent to this court’s August 6, 2003, ruling, whereas references to “backfilled” evidence refer to facts that existed as of August 6, 2003, yet were not made part of the record.

II. eBay’s Motion to Strike New and Irrelevant Evidence

eBay’s motion to strike was filed in response to numerous exhibits, including expert declarations, filed by MercExchange in support of its renewed motion for a permanent injunction. 2 Although eBay conceded at the hearing on this matter that injunctive reliefs prospective nature requires the court to consider present circumstances in determining whether or not to grant an injunction, eBay contends that MercExchange has improperly submitted numerous exhibits seeking to backfill the record and re-litigate issues already decided by this court. Furthermore, eBay challenges the fact that two of the expert declarations submitted as exhibits to Mer-cExchange’s motion were submitted by previously undisclosed experts. As to the portions of MercExchange’s exhibits that relate to recent factual developments, consisting primarily of MercExchange’s business relationship with uBid, Inc. (uBid), eBay contends that such evidence is dupli-cative and irrelevant.

In contrast, MercExchange contends that it is not trying to backfill the record, but rather, the portions of the exhibits discussing prior events are merely included to present a factual background that is relevant to this court’s decision as to whether or not to enter an injunction. With respect to the previously undisclosed experts, MercExchange argues that the *611 legal standard applicable to the court’s injunction decision has been called into question by eBay and that such declarations were submitted to clarify the irreparable harm that MercExchange will suffer in case the court concludes that a presumption of irreparable harm no longer exists. Finally, as to uBid, MercExchange argues that such evidence is both relevant and significantly different from evidence previously advanced, and thus, is not dupli-cative.

Although the parties disagree on virtually every factual and legal issue relevant to the instant matter, they agree that the decision as to whether to “reopen the record” on remand lies squarely within this court’s discretion. See United States v. Com. of Va., 88 F.R.D. 656, 662 (E.D.Va. 1980) (recognizing that it is “well-established that, in the absence of error affecting the introduction of evidence at trial, the decision whether to reopen the evidence at a later stage of the proceedings rests with the trial judge”). Although the court’s exercise of such discretion is de-pendant upon a careful case-by-case analysis, the type of relief sought on remand unquestionably has a significant impact on the court’s decision as prospective equitable relief, such as an injunction or a stay of the proceedings, necessitates that the court consider the facts as they exist at the time of remand and not as they existed several years in the past. See Lyons Partnership, L.P. v. Morris Costumes, Inc., 243 F.3d 789, 799 (4th Cir.2001) (“A prospective injunction is entered only on the basis of current, ongoing conduct that threatens future harm.”) (emphasis added). The current facts are so vital to the court’s decision when such form of relief is sought as the court is not only charged with determining the equitable relief appropriate on the date of the court’s order, but is also expected to fashion relief that appears appropriate for extension into the future; such task can hardly be faithfully completed in reliance on a record that is nearly three and half years old and established prior to a significant factual development. See Continental Airlines, Inc. v. United Airlines, Inc., 277 F.3d 499, 503 (4th Cir.

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467 F. Supp. 2d 608, 2006 U.S. Dist. LEXIS 91059, 2006 WL 3780606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mercexchange-llc-v-ebay-inc-vaed-2006.