Symbol Technologies, Inc. v. Janam Technologies LLC

729 F. Supp. 2d 646, 2010 U.S. Dist. LEXIS 72638, 2010 WL 2898292
CourtDistrict Court, D. Delaware
DecidedJuly 20, 2010
DocketCivil Action 08-340-JJF
StatusPublished
Cited by5 cases

This text of 729 F. Supp. 2d 646 (Symbol Technologies, Inc. v. Janam Technologies LLC) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Symbol Technologies, Inc. v. Janam Technologies LLC, 729 F. Supp. 2d 646, 2010 U.S. Dist. LEXIS 72638, 2010 WL 2898292 (D. Del. 2010).

Opinion

MEMORANDUM OPINION

FARNAN, District Judge.

Presently before the Court is a Motion For Preliminary Injunction (D.I. 6) filed by Plaintiff Symbol Technologies, Inc., and a Motion To Preclude Evidence of Symbol’s Profits (D.I. 149) filed by Defendant Janam Technologies LLC. For the reasons to be discussed, both Motions will be denied.

BACKGROUND

On June 9, 2008, Plaintiff Symbol Technologies, Inc. (“Symbol”) filed this patent infringement action, alleging infringement of U.S. Patent Nos. 5,334,821 (the “'821 patent”), 5,835,366 (the “'366 patent”), and 6,714,969 (the “'969 patent”) by Defendant Janam Technologies LLC (“Janam”). (D.I. 1.) Symbol designs and sells handheld mobile computers to commercial users. (Id. ¶ 4.)

In brief, Symbol alleges that in 2006 it phased out the Palm operating system (“Palm OS”) in favor of exclusively using the Windows operating system (‘Windows OS”) in its handheld mobile computers. (Id. ¶¶ 6-7.) Symbol alleges that in or around the same period, two long-time Symbol executives formed Janam in order to supply Palm OS-based handheld mobile computers. (Id. ¶ 10.) In 2008, Janam introduced the XM-60, the accused device in this action, which is a Windows-OS based handheld computing device. (Id. ¶ 12.) Symbol alleges not only that the XM-60 infringes the patents-in-suit, but that Janam’s founders capitalized on their knowledge of Symbol’s research, development, and marketing in order to undercut Symbol’s pricing and offer the XM-60 at substantially discounted prices. (Id. ¶¶ 13-15.) The XM-60 competes with Symbol’s current Windows-OS based handheld mobile computers, including Symbol’s MC50, MC70, MC3000, MC 9000, and PPT8800 product lines. (D.I. 8.)

On June 18, 2008, Symbol filed a Motion For Preliminary Injunction (D.I. 6), and the Court heard arguments on December 18, 2008. Also on December 18, 2008, Janam filed a Motion To Preclude Evidence Of Symbol’s Profits (D.I. 149). The tentative claim constructions applied by *651 the Court for the purposes of resolving the present Motion For Preliminary Injunction are set forth in the Court’s Order of March 31, 2009, 605 F.Supp.2d 618 (D.Del. 2009). 1 (D.I. 208.)

MOTION TO PRECLUDE EVIDENCE OF SYMBOL’S PROFITS (D.I. 149)

I. Legal Standard

In pertinent part, Rule 37(c)(1) of the Federal Rules of Civil Procedure provides that “[i]f a party fails to provide information ... as required by Rule 26(a) or (e), the party is not allowed to use that information ... to support evidence on a motion, at a hearing, or at a trial, unless the failure was substantially justified or is harmless.” Fed.R.Civ.P. 37(c)(1).

The Third Circuit and this Court have focused on a series of factors in evaluating harmlessness and substantial justification:

(1) the importance of the information withheld; (2) the prejudice or surprise to the party against whom the evidence is offered; (3) the likelihood of disruption of the trial; (4) the possibility of curing the prejudice; (5) the explanation for the failure to disclose; and (6) the presence of bad faith or willfulness in not disclosing the evidence [ ].

Boehringer Ingelheim Int’l GMBH v. Barr Labs. Inc., Civ. No. 05-700-JJF, 2008 WL 2756127 at *2, 2008 U.S. Dist. LEXIS 53475, at *4-5 (D.Del. July 15, 2008) (citing Konstantopoulos v. Westvaco Corp., 112 F.3d 710, 719 (3d Cir.1997)). Lastly, “the exclusion of critical evidence is an ‘extreme’ sanction, not normally to be imposed absent a showing of willful deception or ‘flagrant disregard’ of a court order by the proponent of the evidence.” Konstantopoulos, 112 F.3d at 719 (quoting Meyers v. Pennypack Woods Home Ownership Ass’n, 559 F.2d 894, 905 (3d Cir.1977)). The determination of whether to exclude evidence is committed to the discretion of the Court. In re Paoli R.R. Yard PCB Litig., 35 F.3d 717, 749 (3d Cir.1994).

II. Parties’ Contentions

By its Motion, Janam seeks to prevent Symbol from relying on any evidence of Symbol’s profits or alleged lost profits in support of its Motion For Preliminary Injunction. (D.I. 149, at 1.) Further, Janam asks the Court to strike paragraphs 74 and 75 of the Declaration of Allyn Strickland (D.I. 130-132), and the related argument at page 18 of Symbol’s Reply Brief (D.I. 124) in support of its Motion For Preliminary Injunction. Janam contends that it sought discovery on Symbol’s profits on its handheld mobile computers, but that Symbol objected that such information was irrelevant to the Motion For Preliminary Injunction. (D.I. 149, at 2.) Specifically, Janam contends that, in a teleconference with Magistrate Judge Stark, Symbol represented that lost profits only related to the collection of damages and not to a preliminary injunction. (Id. at 2-3.) According to Janam, Symbol now relies on its profits and alleged lost profits to argue that it will be irreparably harmed if a preliminary injunction is not entered. (Id. at 3-4.) Janam contends that Symbol should be precluded from relying on such information now since it previously represented to the Court that lost profits were irrelevant to the Motion For Preliminary Injunction. (Id. at 4.)

*652 In response, Symbol contends that Jan-am mischaracterizes the position Symbol took before Magistrate Judge Stark, and that Symbol did produce profit-related information to Janam. (D.I. 170, at 1-2.) Further, Symbol contends that it used lost profits figures solely in an exemplary manner (i.e., to demonstrate Janam’s inability to pay damages). (Id. at 2-3.) Finally, Symbol contends that Janam could have followed up on Symbol’s profit-related productions by deposing Dr. Strickland and Brian Viscount about the profit-related points in their declarations, but that Jan-am failed to do so. (Id. at 4.)

III. Discussion

The Court concludes that an order precluding Symbol from relying on evidence of its profits or alleged lost profits in support of its Motion For Preliminary Injunction, and striking portions of the Strickland Declaration and Symbol’s Reply Brief, is not warranted.

A short summary of the parties’ disputes over the production of Symbol’s profit information is helpful in framing the Court’s consideration of the present Motion.

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729 F. Supp. 2d 646, 2010 U.S. Dist. LEXIS 72638, 2010 WL 2898292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/symbol-technologies-inc-v-janam-technologies-llc-ded-2010.