William Reber, LLC v. Samsung Electronics America, Inc.

220 F.R.D. 533, 58 Fed. R. Serv. 3d 1124, 2004 U.S. Dist. LEXIS 4058, 2004 WL 541851
CourtDistrict Court, N.D. Illinois
DecidedMarch 12, 2004
DocketNo. 03 C 4174
StatusPublished
Cited by3 cases

This text of 220 F.R.D. 533 (William Reber, LLC v. Samsung Electronics America, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William Reber, LLC v. Samsung Electronics America, Inc., 220 F.R.D. 533, 58 Fed. R. Serv. 3d 1124, 2004 U.S. Dist. LEXIS 4058, 2004 WL 541851 (N.D. Ill. 2004).

Opinion

MEMORANDUM OPINION AND ORDER

MORTON DENLOW, United States Magistrate Judge.

Plaintiff William Reber, L.L.C. (“Plaintiff’ or “Reber”) is the owner of two United States patents, Nos. 5,584,070 and 5,701,258 (collectively the “Reber Patents”), that it claims have been infringed by twelve defendants (collectively “Defendants”) located in Asia, the United States and Europe, and at least eighteen of their products.

[535]*535This case now comes before this Court on Defendants’ motion to bifurcate the issue of liability from the issues of damages and willful infringement, and to stay all discovery regarding damages and willful infringement until a decision on liability has been reached. Plaintiff opposes this motion, claiming that having two separate trials and staying discovery on the issues of damages and willful infringement will be substantially prejudicial. The Court held an oral argument on this motion on March 1, 2004, at which time the Court announced its oral ruling from the bench. This Memorandum Opinion and Order explains the Court’s rationale in greater detail. For the following reasons, this Court 1) bifurcates the issues of liability and willful infringement from the issue of damages; 2) stays discovery on the issue of damages until after the issues of liability and willful infringement have been decided; and 3) stays discovery of attorney opinions as they relate to willful infringement until it is clear that the issues of liability and willful infringement will be tried and that any defendant will raise an advice-of-counsel defense. The stay regarding discovery of such attorney opinions should be revisited after dispositive motions, if any, on the issue of liability are decided. In any event, Defendants will be given a brief period of time before trial to decide if they intend to raise the advice-of-counsel defense, and if so, expedited discovery will proceed on that issue so that the final pretrial order can be prepared, and trial can proceed, on the issues of liability and willful infringement.

I. BACKGROUND

Plaintiff is a small Illinois company operated by a single individual, Dr. William Reber. Neither Plaintiff nor Dr. Reber makes or sells camera cell phones. Plaintiff sued Defendants for patent infringement arising out of camera-phones manufactured and sold by Defendants. Specifically, Plaintiff asserts one patent against all Defendants and one patent against two of the Defendants. The thirteen claims in the two patents are directed towards millions of wireless telephones in sixteen product lines sold since 2002.

Defendants can be divided into six distinct groups based on corporate affiliations. Defendants are the major players in the wireless telephone market. They compete directly with each other. Plaintiff has joined all of these defendants in one lawsuit rather than filing six separate lawsuits. The propriety of that tactic is not currently before the Court, however, the presence of six competing groups of companies complicates the discovery and trial of this case. Fortunately, the Defendants have shown great cooperation on the issue of developing a joint protective order and in discovery.

The patents at issue are United States Patent Nos. 5,584,070 (“the ’070 patent”) and 5,701,258 (“the ’258 patent”). Dr. Reber is an inventor of both patents. The ’070 patent concerns a wireless pager with a separable receiver unit and a transmitter unit. The ’258 patent concerns a wireless pager with pre-stored images and methods and systems for use therewith.

Plaintiff intends to pursue a claim for willful infringement if the discovery supports such a claim. Nonetheless, Plaintiff has made discovery requests for attorney opinions to which Defendants have objected. Plaintiff seeks damages based on a reasonable royalty and has initiated discovery on the issue of damages. Defendants object. Plaintiff seek damages under 35 U.S.C. § 284, which permits additional damages available for willful infringement.

Defendants state that discovery will involve thousands of documents, many of which will need to be translated from various foreign languages into English. Additionally, the native tongue of many witnesses is not English. Many documents and witnesses are located outside the United States. Some Defendants have raised affirmative defenses, including that they are licensed to practice these inventions, that Defendants’ wireless telephones are not equivalent to the wireless pagers recited in Plaintiffs patents, and that the patents are invalid.

Defendants have filed a motion pursuant to Rule 42(b) of the Federal Rules of Civil Procedure, seeking to bifurcate the issue of liability from the issues of damages and willfulness for both discovery and trial. They [536]*536claim that bifurcation will serve the interests of judicial economy, efficiency, and simplicity, without prejudice to Plaintiffs right to a jury trial. Plaintiff contends that bifurcation will make discovery and trial more expensive, delay the ultimate disposition of the case, and prejudice it.

Thus, the following issues are presented:

1) Whether the issue of liability should be bifurcated from the issue of damages for discovery and trial?
Answer: Yes
2) Whether the issue of willful infringement should proceed with the liability or damages phase of discovery and trial?
Answer: Liability phase, with a limited stay of discovery on the issue of attorney opinions.

II. LEGAL STANDARDS

Rule 42(b) of the Federal Rules of Civil Procedure states:

The court, in furtherance of convenience or to avoid prejudice, or when separate trials will be conducive to expedition and economy, may order a separate trial of any claim, cross-claim, counterclaim, or third-party claim, or of any number of claims, cross-claims, counterclaims, third-party claims, or issues, always preserving the right of trial by jury as declared by the Seventh Amendment to the Constitution or as given by a statute of the United States.

Fed.R.Civ.P. 42(b). All of the rules of civil procedure, including Rule 42(b), should be read in light of the overarching principles set forth in Rule 1, which states that the rules “shall be construed and administered to secure the just, speedy, and inexpensive determination of every action.” Fed.R.Civ.P. 1. Consequently, bifurcation in patent cases, as in others, is the exception, not the rule. Pfizer Inc. v. Novopharm Ltd., No. 00 C 1475, 2000 WL 1847604, at *1, 2000 U.S. Dist. LEXIS 18153, at *4 (N.D.Ill.Dec. 13, 2000). Separate trials should not be ordered unless they are clearly necessary. Real v. Bunn-O-Matic Corp., 195 F.R.D. 618, 619 (N.D.Ill.2000).

The decision to bifurcate pursuant to Rule 42(b) is made on a case by case basis and is reserved for the sole discretion of the court. Real, 195 F.R.D. at 620.

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220 F.R.D. 533, 58 Fed. R. Serv. 3d 1124, 2004 U.S. Dist. LEXIS 4058, 2004 WL 541851, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-reber-llc-v-samsung-electronics-america-inc-ilnd-2004.