Touchstream Technologies, Inc. v. Charter Communications, Inc.

District Court, E.D. Texas·Decided August 25, 2025·No. 2:23-cv-00059·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION

TOUCHSTREAM TECHNOLOGIES, INC., § § Plaintiff, § § v. § CASE NO. 2:23-CV-00059-JRG-RSP § CHARTER COMMUNICATIONS, INC., et § al., § § Defendants. § §

MEMORANDUM OPINION AND ORDER Before the Court is the Motion for New Trial filed by Plaintiff Touchstream Technologies, Inc. (“Touchstream”). (Dkt. No. 396.) Also before the Court is Touchstream’s Motion and Memorandum in Support of its Rule 50(b) Motion for Renewed Judgment as a Matter of Law (the “JMOL Motion”). (Dkt. No. 397.) Having considered the Motion for New Trial and JMOL Motion, the Court finds that both motions should be DENIED. I. BACKGROUND Touchstream filed the above-captioned case on February 16, 2023. (Dkt. No. 1.) The Court held a jury trial beginning on March 3, 2025. (Dkt. No. 366.) At trial, Touchstream asserted that Defendants Charter Communications, Inc.; Charter Communications, Inc.; Charter Communications Operating, LLC; Spectrum Management Holding Company, LLC; Time Warner Cable Enterprises, LLC; Spectrum Gulf Coast, LLC; and Charter Communications LLC (collectively, “Charter”) infringed certain claims of U.S. Patent Nos. 8,356,251 (the “’251 Patent”); 11,048,751 (the “’751 Patent”); and 11,086,934 (the “’934 Patent”) (collectively, the “Asserted Patents”). (Dkt. No. 350.) Specifically, Touchstream asserted that Charter infringed claims 1 and 7 of the ’251 Patent, claims 12 and 13 of the ’751 Patent, and claims 17, 18, and 20 of the ’934 Patent (collectively, the “Asserted Claims”). (Id.) At the close of evidence, the parties moved for judgment as a matter of law (“JMOL”) under Rule 50(a) of the Federal Rules of Civil Procedure. (Dkt. No. 389 at 1055:9-1082:21.)

Among the parties’ Rule 50(a) oral motions, the Court heard Touchstream’s motion for JMOL of infringement of the Asserted Claims. (Id. at 1056:24-1057:6.) The Court denied, inter alia, Touchstream’s motion. (Id. at 1081:12-18.) The Jury returned a verdict of no infringement with respect to all Asserted Claims.1 (Dkt. No. 379.) The Court subsequently entered Final Judgment. (Dkt. No. 391.) Touchstream timely filed its Motion for New Trial and JMOL Motion. II. MOTION FOR NEW TRIAL (DKT. NO. 396) In the Motion for New Trial, Touchstream requests a new trial because the verdict was against the great weight of the evidence. (Dkt. No. 396 at 3.) Touchstream relies on its evidence and arguments presented in its JMOL Motion. (Id.) Touchstream also requests “a new trial because Charter repeatedly offered evidence and argument designed to confuse the jury as to the issues

relevant to infringement.” (Id. at 3-11.) Touchstream argues that “Charter distracted the jury with irrelevant and highly prejudicial evidence and attorney arguments” in three ways. (Id.) The Court addresses each in turn and finds no basis to set aside the Jury’s verdict and grant a new trial. A. Applicable Law Rule 59 provides that a new trial may be granted on all or part of the issues on which there has been a trial by jury for “any reason for which a new trial has heretofore been granted in an action at law in federal court.” Fed. R. Civ. P. 59(a). Notwithstanding the broad sweep of Rule 59,

1 The Jury did not answer the questions concerning invalidity because Charter only asserted invalidity as a defense to infringement. (Dkt. No. 58.) Charter did not file any invalidity counterclaims. (Id.) “courts do not grant new trials unless it is reasonably clear that prejudicial error has crept into the record or that substantial justice has not been done, and the burden of showing harmful error rests on the party seeking the new trial.” Metaswitch Networks Ltd. v. Genband US LLC, No. 2:14-cv- 00744-JRG, 2017 WL 3704760, at *2 (E.D. Tex. Aug. 28, 2017); Erfindergemeinschaft UroPep

GbR v. Eli Lilly & Co., 276 F. Supp. 3d 629, 643 (E.D. Tex. 2017). “A new trial may be granted, for example, if the district court finds the verdict is against the weight of the evidence, the damages awarded are excessive, the trial was unfair, or prejudicial error was committed in its course.” Smith v. Transworld Drilling Co., 773 F.2d 610, 612-13 (5th Cir. 1985); see also Laxton v. Gap Inc., 333 F.3d 572, 586 (5th Cir. 2003) (“A new trial is warranted if the evidence is against the great, and not merely the greater, weight of the evidence.”). Furthermore “[u]nless justice requires otherwise, no error in admitting or excluding evidence—or any other error by the court or a party—is ground for granting a new trial. … the court must disregard all errors and defects that do not affect any party’s substantial rights.” Fed. R. Civ. P. 61. B. Discussion

1. The Jury’s Non-Infringement Verdict Was Not Against the Great Weight of the Evidence Touchstream argues that “[t]he Court should order a new trial because the arguments and evidence cited in Touchstream’s concurrently filed JMOL motion demonstrate that ‘the verdict is clearly contrary to the weight of the evidence….’” (Dkt. No. 396 at 3 (quoting Smith, 773 F.2d at 613).) Touchstream asserts that the Court has a duty to set the verdict aside and order a new trial if the Court is not satisfied with the Jury’s verdict. (Id.) Touchstream argues that this “duty is particularly applicable here: … Charter’s non-infringement defense was predicated on irrelevant and confusing evidence that even Charter admitted pretrial was not relevant to infringement.” (Id.) Charter responds that for the reasons set forth in its opposition to the JMOL Motion, there was substantial evidence supporting the Jury’s verdict. (Dkt. No. 399 at 9.) Touchstream replies that Charter misreads the law. (Dkt. No. 405 at 1-2.) Touchstream asserts that the Court may grant a new trial even if there is substantial evidence supporting the

Jury’s verdict if the Court is not satisfied with the Jury’s verdict. (Id.) Touchstream argues that the Court’s “duty applies here for two related reasons: (1) Touchstream’s infringement evidence was strong, as evidenced by its renewed JMOL motion; and (2) in contrast, Charter systematically relied on irrelevant and confusing evidence and arguments that violated the Court’s standing in- limine order in order to distract from Touchstream’s evidence.” (Id. at 2.) Charter reiterates its response that “Touchstream comes nowhere close to meeting the new trial standard.” (Dkt. No. 412 at 1.) Charter argues that “for the reasons explained in Charter’s JMOL Opposition (Dkt. 398), the ‘great weight of the evidence’ affirmatively supports the jury’s verdict.” (Id. (emphasis added by Charter).) As discussed in detail below regarding Touchstream’s JMOL Motion, the Court finds that

the Jury’s non-infringement findings were not against the great weight of the evidence. (Infra Section III.B.) Accordingly, the Court finds that a new trial is not warranted on this basis. 2. Charter’s Presentation was Not Unfair or Prejudicial a. Charter Did Not Confuse the Jury into Finding Non- Infringement Based on a Preferred Internet Embodiment Touchstream argues that “Charter repeatedly contrasted the asserted patents’ preferred ‘internet’ embodiment and related language derived from Touchstream’s marketing materials with the accused Charter functionalities to confuse the jury into ignoring the claim language and instead conducting an improper non-infringement analysis.” (Dkt. No.

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Touchstream Technologies, Inc. v. Charter Communications, Inc., (E.D. Tex. 2025).

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