PersonalWeb Technologies, LLC v. Twitch Interactive, Inc.

District Court, N.D. California·Decided December 15, 2023·No. 5:18-cv-05619·Unknown

Opinion

IN RE PERSONALWEB Case No. 18-md-02834-BLF TECHNOLOGIES, LLC, ET AL., PATENT Case No. 18-cv-00767-BLF Case No. 18-cv-05619-BLF AMAZON.COM, INC. And AMAZON

Plaintiffs, ORDER GRANTING IN PART AND DENYING IN PART AMAZON’S v. MOTION FOR FURTHER SUPPLEMENTAL FEES PERSONALWEB TECHNOLOGIES, LLC, Re: ECF No. 880 (Case No. 18-md-02834) et al., Defendants. Re: ECF No. 375 (Case No. 18-cv-00767) PERSONALWEB TECHNOLOGIES, LLC, Re: ECF No. 280 (Case No. 18-cv-05619) et al., Plaintiffs, v. TWITCH INTERACTIVE, INC., Defendant. Pending before the Court is Amazon.com, Inc., Amazon Web Services, Inc., and Twitch Interactive, Inc.’s (collectively, “Amazon”) Motion for Further Supplemental Fees (the “Motion”). See Mot., ECF No. 880.1 Amazon seeks attorney fees and costs from PersonalWeb Technologies, LLC (“PersonalWeb”) for work performed between March 2021 and March 2023. See id. at 1. PersonalWeb disputes the majority of the fees. See Corrected Opp’n (“Opp’n”), ECF No. 889-1. The Court heard oral argument on the Motion on November 16, 2023. Having considered the parties’ written submissions and oral arguments, the Court GRANTS IN PART and DENIES IN PART the Motion, for the reasons described below. This multi-district litigation stems from PersonalWeb filing dozens of suits in 2018 against Amazon and a bevy of its customers, in which it asserted patent infringement claims that this Court has found—in an order affirmed by the Federal Circuit—were objectively baseless and not reasonable when brought. See Order Re Exceptional Case 33, ECF No. 636; In re PersonalWeb Techs. LLC, 85 F.4th 1148, 1154–57 (Fed. Cir. 2023). The Court granted Amazon’s motions for summary judgment in two phases, and by February 3, 2020, Amazon had won on summary judgment as to all claims. See ECF Nos. 394, 578. The Court entered judgment against PersonalWeb in the MDL action and all member cases on October 28, 2020. See J., ECF No. 643. The Court then entered an amended judgment on July 27, 2021, that incorporated fees and costs awarded by the Court in orders issued on March 2, 2021, and April 19, 2021. See Am. J., ECF No. 708; see also infra, at Part I(A). A. Prior Requests for Attorney Fees and Costs Amazon moved for attorney fees and costs for the first time in March 2020. See ECF No. 593. The Court granted that motion in October 2020, reasoning that the case was exceptional because:

(1) PersonalWeb’s infringement claims related to Amazon S3 were objectively baseless and not reasonable when brought because they were barred due to a final judgment entered in the Texas Action; (2) PersonalWeb frequently changed its infringement positions to overcome the hurdle of the day; (3) PersonalWeb unnecessarily prolonged this litigation after claim construction foreclosed its infringement theories; (4) PersonalWeb’s conduct and positions regarding the customer cases were unreasonable; and (5) PersonalWeb submitted declarations that it should have known were not accurate. Order Re Exceptional Case 33. On March 2, 2021, following additional briefing requested by the Court on whether the fees requested by Amazon were reasonable, the Court awarded Amazon over $4.6 million in attorney fees and $203,300.10 in non-taxable costs for work performed from January 2018 through January 2020. See First Fee Award 9, 30, ECF No. 648. On March 11, 2021, Amazon filed a supplemental declaration in support of a request for additional attorney fees incurred from February 2020 through February 2021. See ECF No. 649. On April 19, 2021, the Court granted in part and denied in part the additional attorney fee request. See Second Fee Award, ECF No. 656. With respect to one category of fees—Amazon’s work related to PersonalWeb’s appeal of the Court’s final summary judgment order, for which it requested $106,291.43—the Court declined to award fees while the appeal was pending, and denied the request without prejudice to Amazon moving again for the same fees. See id. at 2–3. After excluding this amount and applying certain other reductions to the requested fees, the Court awarded Amazon $571,961.71 in fees and $11,120.97 in non-taxable costs. See id. at 4. Accordingly, the Amended Judgment entered on July 27, 2021, incorporated these fee and cost awards, as well as post-judgment interest accrued through July 14, 2021, and amounted to $5,403,122.68. See Am. J. 3. B. PersonalWeb’s Actions Following Fee Awards The parties agree that, to date, PersonalWeb has not paid any portion of the judgment entered against it. See, e.g., Mot. 10. Instead, mere days after the Court issued the second of its two orders awarding fees and costs on April 19, 2021, PersonalWeb commenced two procedural tracks through which it attempted to circumvent this Court’s jurisdiction over post-judgment proceedings. First, on April 22, 2021, PersonalWeb took the position that it was not represented by counsel with respect to Amazon’s attempts to secure or enforce any monetary award. See ECF No. 661-1. Over the next 16 months, PersonalWeb continued to stymie Amazon’s efforts to enforce the judgment by instructing its then-counsel to file no fewer than seven motions to withdraw or substitute counsel and notices of a purported substitution of counsel—with no substitute counsel ever properly identified, see ECF Nos. 674, 678, 679, 683, 688, 728, 7672— until at last PersonalWeb had its new counsel file a sufficient notice of appearance on August 8, 2022, see ECF No. 770. Second, on April 27, 2021, PersonalWeb’s principals and secured creditors filed suit in 2 Amazon states that PersonalWeb’s then-counsel attempted to withdraw six times, see Mot. 6, but appears not to have counted the notice of withdrawal filed on August 2, 2022, see ECF No. 767, California state court to place PersonalWeb into a receivership. See ECF No. 717-2. Unsurprisingly, PersonalWeb made no objection to the receivership, and the state court appointed a receiver on May 10, 2021. See ECF Nos. 717-4, 717-6, 747-4. PersonalWeb then stipulated to the entry in state court of an order stating that the state court possessed exclusive jurisdiction over PersonalWeb’s property and assets, and enjoining PersonalWeb’s judgment holders from enforcing any judgment against PersonalWeb. See ECF No. 717-6. Next, PersonalWeb repeatedly attempted to use the state court’s receivership jurisdiction to assert that this Court lacked jurisdiction to oversee the enforcement of its judgment, see, e.g., ECF No. 728, forcing the Court to issue an order directing PersonalWeb’s counsel to obtain precise confirmation from the receiver that the receiver would authorize PersonalWeb to retain and compensate counsel for the ongoing proceedings in this Court, see ECF No. 760. Within one month of the Court’s order, PersonalWeb provided the Court a written response from the receiver confirming that the receiver was authorized to pay attorney fees for PersonalWeb’s counsel in this action and would in fact pay such fees for as long as funding was available. See ECF No. 766. In response to these actions, Amazon has served post-judgment discovery on PersonalWeb; twice requested the Court compel compliance with its discovery requests; and intervened in the state court receivership action. See Mot. 6–7; see also, e.g., Decl. of Todd R. Gregorian (“Gregorian Decl.”) ¶ 22, ECF No. 873. C. Appeals in This Action In addition, over the course of this action, PersonalWeb has timely appealed this Court’s two summary judgment rulings, its claim construction ruling, and its prior awards of attorney fees and costs. See Mot. 3–6. The Federal Circuit upheld the Court’s first summary judgment ruling in 2020; PersonalWeb then petitioned the Supreme Court for certiorari on April 2, 2021, see PersonalWeb Techs., LLC v. Patreon, Inc., No. 20-1394, 2021 WL 1298201 (S. Ct. Apr. 2, 2021), and, following briefing, the Supreme Court denied certiorari in May 2022, see 142 S. Ct. 2707 (2022) (Mem.). PersonalWeb appealed the second summary judgment r

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PersonalWeb Technologies, LLC v. Twitch Interactive, Inc., (N.D. Cal. 2023).

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