Pulse Electronics, Inc. v. U.D. Electronic Corp.

District Court, S.D. California·Decided July 6, 2021·No. 3:18-cv-00373·Unknown

Opinion

7 UNITED STATES DISTRICT COURT 8 SOUTHERN DISTRICT OF CALIFORNIA 9

10 PULSE ELECTRONICS, INC., a ) Case No.: 3:18-cv-00373-BEN-MSB 11 Delaware corporation, ) 12 ) ORDERGRANTING PLAINTIFF’S Plaintiff, ) MOTION TO STAY EXECUTION 13 v. ) OF DEFENDANT’S BILL OF COSTS 14 ) PENDING APPEAL

15 U.D. ELECTRONIC CORP., a Taiwan ) ) [ECF Nos. 199, 200] 16 corporation, ) 17 Defendant. ) ) 18 ) 19 U.D. ELECTRONIC CORP., a Taiwan ) corporation, ) 20 ) 21 Counterclaimant, ) v. ) 22 ) 23 PULSE ELECTRONICS, INC., a ) Delaware corporation, ) 24 ) Counterdefendant. 25 ) 26 I. INTRODUCTION 27 Plaintiff/Counterdefendant PULSE ELECTRONICS, INC., a Delaware corporation 28 (“Plaintiff” or “Pulse”) brought this action for patent infringement against Defendant/ 1 Counterclaimant U.D. Electronic Corp., a Taiwan corporation (“Defendant” or “UDE”). 2 Second Amended Complaint, ECF No. 106 (“SAC”). 3 Before the Court is Plaintiff’s Motion to Stay Execution of Defendant’s Bill of Costs 4 Pending Appeal. ECF No. 199. After considering the papers submitted, supporting 5 documentation, and applicable law, the Court Grants Plaintiff’s Motion to Stay Execution 6 of Defendant’s Bill of Costs Pending Appeal. ECF No. 199. 7 II. BACKGROUND 8 A. Statement of Facts 9 This matter arose out of a dispute over whether Defendant was infringing on the 10 claims of United States Patent Nos. (1) 7,959,473 (the “‘473 Patent”), (2) 9,178,318 (the 11 “‘318 Patent”), and (3) 6,593,840 (the “‘840 Patent”) (collectively, the “Patents-in-Suit”). 12 See generally SAC. Plaintiff argued that Defendant directly and indirectly infringed the 13 Patents-in-Suit including by making, using, selling, importing, and/or offering for sale— 14 including through the sale and importation by Defendant’s customers, rather than 15 Defendant itself—multigig (e.g., 2.5G, 5G, 10G) 2xN integrated connector modules 16 (“ICMs”) or products that contain the aforementioned ICMs, including Defendant’s four 17 ICM series products: (1) the G series; (2) the GX-X series; (3) the S Series; and (4) the N 18 Series. Order, ECF No. 176 at 21:15-3:2. A more detailed factual and procedural history 19 was set forth in the Court’s previous orders on the parties’ cross-motions for summary 20 judgment as well as the Court’s order to show cause and is incorporated by reference. 21 Orders, ECF Nos. 160 at 2-9, 176 at 2-9; see also Pulse Electronics, Inc. v. U.D. Electronic 22 Corp., No. 3:18-cv-00373-BEN-MSB, 2021 WL 981123, at *1-4 (S.D. Cal. Mar. 16, 23 2021); Pulse Elecs., Inc. v. U.D. Elec. Corp., No. 3:18-cv-00373-BEN-MSB, ---F. Supp. 24 3d---, 2021 WL 1226470, at *1 (S.D. Cal. Mar. 31, 2021). 25 B. Procedural History 26 On March 16, 2021, after three years of litigation, the Court granted Defendant’s

27 1 Unless otherwise indicated, all page number references are to the ECF-generated 28 1 motion for summary judgment and dismissed with prejudice (1) all of Plaintiff’s claims for 2 induced infringement of all Accused Products and (2) Plaintiff’s claims for direct 3 infringement of the GX-X series as well as all Accused Products in the S and N Series 4 except for MPNs S3Y-HP-0001 and N42-ZT-0001. Order, ECF No. 160 at 86:14-17. On 5 March 31, 2021, the Court issued an order granting summary judgment, sua sponte and 6 following a briefing schedule set by the Court, in Defendant’s favor while vacating all 7 future dates in this case. Order, ECF No. 176. That same day, the Court (1) entered 8 judgment in Defendant’s favor as to all three of Plaintiff’s counts in its operative Second 9 Amended Complaint as well as Defendant’s counterclaims for non-infringement, ECF No. 10 177, and (2) filed a Report on the Filing or Determination of an Action Regarding a Patent 11 or Trademark, ECF No. 180. 12 On April 9, 2021, Plaintiff filed a Notice of Appeal to the United States Court of 13 Appeals for the Federal Circuit, appealing the Court’s (1) March 16, 2021 order granting 14 summary judgment, ECF No. 160; (2) March 31, 2021 order granting summary judgment 15 sua sponte, ECF No. 176; (3) the judgment entered on March 31, 2021, ECF No. 177; and 16 (4) all orders, rulings, and judgments underlying the foregoing. ECF No. 181 at 2. 17 On April 14, 2021, Defendant filed a Motion for Attorney Fees and Costs, ECF No. 18 184, and Bill of Costs, seeking $8,200.70 in costs, ECF No. 185. The following day, or 19 April 15, 2021, Plaintiff’s appeal was docketed. ECF No. 186. 20 On May 3, 2021, Plaintiff filed its (1) Opposition to Defendant’s Motion for 21 Attorney’s Fees and Costs, ECF No. 191, and (2) Response to Defendant’s Bill of Costs, 22 asking the Court to stay enforcement and waive the bond requirement for the Bill of Costs 23 pending appeal. ECF No. 188 at 2:1-3. On June 2, 2021, this Court denied Defendant’s 24 Motion for Attorneys’ Fees and Costs Without Prejudice, pending the conclusion of 25 Plaintiff’s appeal of this case. ECF No. 194 at 19:2-17. 26 On June 11, 2021, the Clerk of the Court taxed costs in the amount of $8,200.70 27 against Plaintiff, ECF No. 198, while Plaintiff filed the instant Motion to Stay Execution 28 of Defendant’s Bill of Costs (ECF No. 198) Pending Appeal. ECF No. 199-1. On June 1 28, 2021, Defendant filed a Notice of Non-Opposition to the Motion. ECF No. 200. 2 III. LEGAL STANDARD 3 Courts may award costs, other than attorney’s fees, to the prevailing party in a case 4 “[u]nless a federal statute, these rules, or a court order provides otherwise.” FED. R. CIV. 5 P. 54(d)(1); see also S.D. Cal. Civ. R. 54.1(a) (“Unless otherwise ordered by the Court, or 6 stipulated by the parties, the prevailing party is entitled to costs.”). The Southern District’s 7 Local Rules provide: “The defendant is the prevailing party upon any termination of the 8 case without judgment for the plaintiff except a voluntary dismissal under Fed. R. Civ. P. 9 41(a).” S.D. Cal. Civ. R. 54.1(f). 10 In order to recover such costs, “[w]ithin fourteen (14) days after entry of judgment, 11 the party in whose favor a judgment for costs is . . . allowed by law, and who claims costs, 12 must file with the Clerk [of the Court] the bill of costs, together with a notice of when the 13 Clerk will hear the application.” S.D. Cal. Civ. R. 54.1(a). However, a “party objecting to 14 any item of costs contained in the bill of costs must file the objections in writing, specifying 15 each item to which objection is made and the ground of the objection, and file any affidavit 16 or present facts relied on which may be rebutted by the opposing party.” S.D. Cal. Civ. R. 17 54.1(g)(1). Following receipt of any response or objections to the Bill of Costs, the Clerk 18 of the Court then proceeds “to tax the costs, and must allow such items specified in said 19 bill of costs as are properly chargeable as costs.” S.D. Cal. Civ. R. 54.1(g)(2). This 20 taxation of costs by the Clerk is final, “unless modified on review as provided in Local 21 Rule 54.1.h.” S.D. Cal. Civ. R. 54.1(g)(3); see also S.D. Cal. Civ. R. 54.1(h) (providing 22 that “[a] review of the decision of the clerk in the taxation of costs may be taken to the 23 court on motion to re-tax by any party in accordance with Rule 54(d), Fed. R. Civ. P., and 24 Civil Local Rule 7.1”). However, Rule 62(a) of the Federal Rules of Civil Procedure 25 (“FRCP”) automatically stay execution on a judgment and proceedings for 30 days after 26 entry of judgment. Additional stays may be secured in two ways: First, “[a]t any time 27 after judgment is entered, a party may obtain a stay by providing a bond or other security.” 28 FED. R. CIV. P. 62(b). This bond, known is as “supersedeas bond,” arises out of “[t]he 1 rationale . . .

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Pulse Electronics, Inc. v. U.D. Electronic Corp., (S.D. Cal. 2021).

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