Foreword

xi

Preface

xiii

Summary Table of Contents

xvii

pt. I

THE OPENING MOVES

ch. 1

Prelitigation Considerations and Strategies

3

I.

The Patentee's Viewpoint

3

A.

Objectives

4

B.

Financial Considerations

7

1.

Compensation to the Patent Owner

7

2.

Dealing With the Cost of Litigation

10

C.

Risks

14

1.

Intangible Risks

14

2.

Affirmative Defenses

14

3.

Potential Counterclaims

15

D.

The Substantive Prefiling Investigation

16

1.

Preliminary Considerations

16

2.

Communications and the Chain of Command

17

3.

Claim Construction and the Infringement Investigation

18

4.

Validity: "To Investigate or Not to Investigate" Sometimes Is the Question

20

5.

Additional Tasks to Consider Before Giving Notice to the Suspected Infringer

21

6.

Prefiling Notice to the Infringer and Concomitant Risks

22

7.

Opinions of Counsel

25

8.

Should a Jury Be Requested?

25

II.

The Infringer's Viewpoint

26

ch. 2

Settlement of Patent Disputes

31

I.

Introduction

32

II.

How Is the Litigation Settled?

33

A.

Mediation

33

B.

Private Negotiations

34

C.

Rule 68 Offers of Judgment

35

III.

Who (Besides the Parties) Is Involved?

36

A.

Patent Holder

36

B.

Insurance Carriers

37

C.

Indemnitors

37

D.

Successors and Assignees

38

E.

Non-Party Infringers

38

IV.

When Is the Settlement Effective?

39

V.

What Are the Terms of the Settlement?

42

A.

Resolution of Litigation

42

1.

By Consent Judgment

42

2.

By Dismissal

42

B.

Resolution of Related Proceedings

43

1.

Foreign Proceedings

43

2.

PTO Proceedings

43

C.

Releases

45

1.

Impact on Third Parties

45

2.

Waiver of Unknown Claims (Cal. Civil Code [§]1542)

46

D.

Licenses and Covenants Not to Sue

47

E.

Design-Arounds

48

F.

Payments and Reverse Payments

49

G.

Continued Viability of Issued Rulings

49

H.

Term

50

I.

Breach, Damages and Attorney's Fees

51

J.

Confidentiality

51

K.

Standard Representations and Warranties

51

L.

Future Events

51

1.

New Designs by the Accused Infringer

53

2.

New or Different Patents Asserted by the Patent Holder

54

3.

Other Litigation involving the Same Patent

54

a.

Subsequent Rulings in Other Actions

54

b.

Assistance by Defendant

55

M.

Satisfaction of Judgment

55

VI.

How Are Disputes About the Settlement Agreement Resolved?

55

A.

Nature of Disputes

55

B.

Modification

56

VII.

Special Hatch-Waxman Considerations

57

ch. 3

Use of ADR in Patent Infringement Litigation

59

I.

Introduction

59

II.

ADR Tools and Methodologies

60

III.

Arbitration

63

A.

Arbitrate or Litigate the Patent Dispute?

66

B.

Arbitration of Patent Rights in the United States

69

1.

Arbitration of Patent Disputes in Federal District Court Litigation

69

2.

Arbitration of Patent Interferences

72

C.

The Federal Arbitration Act

72

D.

Considerations Related to the Arbitration Process

75

E.

Enforcement of an Award

76

IV.

Mediation

76

V.

Early Neutral Evaluation

77

VI.

Summary Jury Trial

78

VII.

Settlement Conferences

78

VIII.

Conclusions

78

Appendix 3.1

79

ch. 4

Adopting a Case Theme

93

I.

The Need for a Theme in Patent Litigation

94

A.

General Objectives

94

B.

Special Problems in Patent Litigation

94

1.

The Technical Challenge

94

2.

The Challenge of Taking Nothing for Granted

96

3.

The Challenge of Complex Legal Questions

97

C.

How Can a Theme Help?

97

1.

Simplifies Issues

97

2.

Unifies Presentation of Case

97

3.

Persuades Trier of Fact to Rule in Your Favor

98

D.

What Is a Theme?

98

II.

Deciding on a Theory Before Choosing a Theme

99

A.

Distinction Between "Theory" and "Theme"

99

B.

Some Common Questions of Theory in the Patent Infringement Context

100

C.

How Theory Affects Theme

101

D.

Flexibility With Respect to Both Theory and Theme

102

III.

How to Develop Your Theme

103

A.

Factors Affecting Your Theme

103

1.

Who Is Your Client?

103

2.

Where Is Your Trial to Take Place?

103

3.

Will It Be a Judge or Jury Trial?

103

4.

How Complex Are the Issues?

104

5.

What Will the Rules Permit?

104

B.

Goals of Your Theme

105

1.

Simplify

105

2.

Emphasize the Human Drama

105

3.

Humanize Your Client

106

4.

Connect With the Judge's or Jury's Real-Life Experience

106

5.

Explain the Commonsense Reasons Behind Abstract Rules of Patent Law

106

6.

Give Jurors or Judges Concise Arguments They Can Use

108

C.

Using Analogies to Further Your Theme

108

D.

Some Common Themes in Patent Cases

111

E.

Testing Your Theme

112

1.

Bothering Friends and Loved Ones

112

2.

Using Mock Juries

112

3.

Using a Jury Consultant

113

F.

Considering More Than One Theme

113

IV.

How to Utilize a Theme at the Pretrial and Trial Stages

114

A.

Planning Discovery to Further the Themes

114

B.

Utilizing the Theme in Motion Practice

114

C.

Utilizing the Theme at Trial

114

1.

Opening Statements

114

2.

Presentation of the Evidence

114

3.

Demonstrative Exhibits

115

4.

Closing Argument

115

ch. 5

The Complaint

117

I.

The Parties

117

A.

Plaintiffs in Actions Asserting Patent Infringement

117

B.

Defendants in Actions Asserting Patent Infringement

120

C.

Parties in ITC Proceedings

122

II.

Jurisdiction

122

A.

Subject Matter Jurisdiction

122

1.

Generally

122

2.

Declaratory Judgment Actions

124

3.

Other Bases for Subject Matter Jurisdiction

128

B.

Jurisdiction Over the Person

128

1.

Due Process Requirements

128

2.

Service of Process

133

III.

Venue

134

A.

Generally

134

B.

Conflicts of Jurisdiction and Venue

136

IV.

Claims for Relief

138

A.

Statement of Claims for Relief

138

B.

Joinder of Claims

140

V.

Demand for Jury Trial

140

VI.

Demand for Judgment

141

VII.

Signing the Complaint

142

ch. 6

The Answer and Other Responsive Filings

143

I.

Introduction

144

II.

Perspectives and Objectives of the Answering Defendant

145

A.

Objectives Common to All Defendants

145

1.

Conduct Conflict Check

145

2.

Docket Response Date

145

3.

Meet With Client

146

4.

Evaluate Patent

146

5.

Evaluate Legal Theories

146

6.

Assess Plaintiff's Objectives

146

7.

Contact Opposing Counsel

147

8.

Evaluate Settlement Options

147

9.

Evaluate How to Respond

147

10.

Investigate Potential Insurance Coverage

147

11.

Consider Demanding a Jury Trial

147

B.

Additional Objectives of the Accused Infringer

148

1.

Conduct Prior-Art Search

148

2.

Evaluate Possibility of Motion for Preliminary Injunction

148

3.

Obtain Opinion of Counsel

148

C.

Additional Objectives of the Declaratory Judgment Defendant

148

III.

Receiving Service of Process

149

IV.

Evaluating the Merits of the Complaint

150

V.

Considerations in Preparing and Filing the Answer

150

A.

Considering the Impact of Admissions and Denials

151

B.

Potential Affirmative Defenses

152

C.

Potential Counterclaims

152

1.

Declaratory Judgment Counterclaims

153

2.

Antitrust Counterclaims

154

3.

Counterclaims Invoking Insurance Coverage

155

D.

Amendments to the Answer and Counterclaims

156

VI.

Motions to Dismiss and Motions to Transfer

156

A.

Rule 12(b)(1) Motions to Dismiss for Lack of Subject Matter Jurisdiction

157

1.

"Arising Under" Jurisdiction

157

2.

Standing to Sue

158

3.

Declaratory Judgment Jurisdiction

159

B.

Rule 12(b)(2) Motions to Dismiss for Lack of Personal Jurisdiction

162

C.

Rule 12(b)(3) Motions to Dismiss for Improper Venue

166

D.

Rules 12(b)(4)-(5) Motions to Dismiss for Insufficiency of Process or Service of Process

167

E.

Rule 12(b)(6) Motions to Dismiss for Failure to State a Claim

167

F.

Rule 12(b)(7) Motions to Dismiss for Failure to Join an Indispensable Party

168

G.

Motions To Change Venue Under 28 U.S.C. [§]1404(a)

169

VII.

Obtaining an Opinion of Counsel

171

A.

Why Obtain an Opinion of Counsel?

171

B.

When Is Reliance on Advice of Counsel Reasonable?

173

1.

An Opinion of Counsel Should Be Timely Sought

173

2.

The Opinion Should Be Credible and Competent

174

3.

Opinion Counsel Should Be Independent and Competent

175

C.

Waiver of the Attorney-Client Privilege and/or Work-Product Immunity

176

VIII.

Investigating Potential Insurance Coverage

179

IX.

Considering a Demand for Jury Trial

181

A.

Evaluating Right to Jury Trial

181

B.

Evaluating Option to Jury Trial

185

X.

Conclusion

185

ch. 7

Waxman-Hatch Litigation From the Perspective of the Generic Pharmaceutical Industry

187

I.

Introduction

188

II.

The Statutory Scheme

189

A.

Listed Patents

189

B.

Patent Certifications

190

C.

Patent Notices and Detailed Statements of Factual and Legal Bases

191

D.

ANDA Patent Litigation Based on Paragraph IV Certification

191

E.

ANDA Patent Litigation Not Based on Paragraph IV Certification

192

F.

Remedies in ANDA Patent Litigation

192

III.

Special Procedural Characteristics of ANDA Patent Litigation

195

A.

Timing

195

1.

Answer and Counterclaims

196

2.

Motions to Dismiss or to Transfer

196

B.

Personal Jurisdiction and Venue

196

C.

ANDA Declaratory Judgment Claims and Counterclaims

197

1.

MedImmune---A "Sweeping Change"

198

2.

Post-MedImmune Decisions

199

3.

Discretion to Decline Jurisdiction

202

D.

Inducement of Infringement in ANDA Litigation

203

E.

Discovery

206

F.

Claim Construction and Markman Hearings

209

G.

Experts

210

H.

Summary Judgment Motions

211

I.

The Jury in ANDA Litigation

213

J.

Willful Infringement in ANDA Litigation

214

K.

Opinions of Counsel and Advice of Counsel Defense

216

L.

Bifurcation of Willfulness and Damages

218

M.

Settlement of ANDA Patent Litigation

219

N.

Patent Local Rules---New Jersey

220

IV.

Other Issues Particular to ANDA Patent Litigations

221

A.

Delisting Patents

221

B.

Third-Party ANDA Actions

223

C.

Authorized Generics

224

D.

Forfeiture

225

ch. 8

Hatch-Waxman Litigation From the Perspective of Pioneer Pharmaceutical Companies

227

I.

Hatch-Waxman Litigation Fundamentals

228

A.

NDAs and ANDAs: Their Significance and Relationship to Each Other

229

B.

"Paper NDAs": Similarities to and Distinctions From ANDAs

229

C.

Submission of an ANDA as a Statutory Act of Infringement Under 35 U.S.C. [§]271(e)(2)

230

D.

General Scope of Patent Issues in Hatch-Waxman Cases: Similarities and Differences From Ordinary Infringement Actions

230

II.

Patent Listing/FDA Orange Book Issues in Hatch-Waxman Cases

231

A.

The Orange Book and Patent Listing Provisions Generally

231

B.

Importance of Listing to NDA Holder and Patent Owner

231

C.

NDA Holder as Proper Party to Make Listing

232

D.

Timely Listing of Patents

232

E.

Relationship of Patent(s) to NDA-Approved Drug Product

232

F.

Product and Product-by-Process Patents Eligible for Listing

233

G.

Method-of-Use Patents

233

H.

Polymorphs

234

I.

Process and Other Patents Ineligible for Listing

235

J.

Challenges to Patent Listing

235

III.

"Paragraph IV" Certifications by ANDA Applicants, and Notice Requirements

237

A.

Patent Certification Requirements

237

B.

Notice Requirements

237

C.

Detailed Statement of Reasons for Noninfringement or Invalidity

238

IV.

Institution of Suit

238

A.

Proper Parties in Hatch-Waxman Disputes

238

B.

Jurisdiction and Venue

239

V.

Automatic Stays

239

A.

Purpose and Time Period for Obtaining Automatic Stay

239

B.

Calculation of the 30-Month Period

240

C.

Litigation Cooperation and Adjustments to the 30-Month Period

240

D.

Termination of Stay by Operation of Court Decision(s)

241

E.

Effect of Litigation Settlement

241

VI.

Other Differences Between Hatch-Waxman Cases and Conventional Actions

242

A.

Bioequivalence/Doctrine of Equivalents

242

B.

Damages: At-Risk Launches

242

C.

Jury Trials

243

D.

Attorney's Fees and Willful Infringement in Hatch-Waxman Cases

243

VII.

Disputes Among Generic Competitors or With the FDA

244

A.

Standing of Pioneer Manufacturer to Sue the FDA

244

B.

Substantive ANDA Approval Issues Affecting the Pioneer Manufacturer

245

C.

Requirement of a Substantially Complete ANDA

248

VIII.

Settlement of Hatch-Waxman Disputes

249

A.

Reverse Payments

249

1.

Decisions by Courts of Appeal

250

2.

The Federal Trade Commission's Position

254

B.

Other Settlement Terms

255

pt. II

DISCOVERY

ch. 9

Formulating a Discovery Plan

259

I.

Introduction

259

II.

Why Formulate a Discovery Plan?

260

III.

Developing the Discovery Plan

261

A.

Focus on the Client

261

B.

Focus on the Opponent

262

C.

Focus on the Law of the Case

263

D.

Focus on Other Factors

264

E.

Focus on Discovery Methods

264

1.

Informal Discovery Tools

264

2.

Formal Discovery Tools

265

a.

Interrogatories

266

b.

Document Requests

266

c.

Requests for Admission

267

d.

Oral Depositions

268

3.

Electronic Discovery

270

F.

Mandatory Disclosures

273

1.

Mandatory Initial Disclosures

274

a.

1993 Amendments

275

b.

2000 Amendments

276

2.

Discovery Conference of Parties (Rule 26(f))

277

3.

Initial Disclosures in Local Jurisdictions

278

a.

Northern District of California

278

b.

Other Districts

280

4.

Disclosure of Expert Testimony

282

5.

Timing of Expert Disclosures

288

6.

Deficient Disclosures

289

7.

Addressing Deficient Disclosures

295

G.

Early Markman Determination

296

IV.

Steps for Formulating a Discovery Plan

299

ch. 10

Protective Orders

303

I.

Introduction

303

II.

Stipulated Protective Orders

305

III.

Motions for a Specific Protective Order

308

IV.

Protecting Privilege and Work Product

310

V.

Business Confidential Information and Trade Secrets

314

VI.

Limiting Who Can Access Confidential Information

317

VII.

Compromise as an Effective Alternative

319

VIII.

Conclusion

320

ch. 11

Joint Defense Privileges and Agreements

321

I.

Joint-Defense Privilege: Origins and Operation

322

II.

Joint-Defense Group: How Joint-Defense Groups Actually Work

327

III.

Joint-Defense Agreements

329

A.

Basic Joint-Defense Agreement Components

329

1.

Parties to the Agreement, Plaintiff, Case Number, and Patent(s)-in-Suit

329

2.

Effective Date of the Agreement

330

3.

Statement of Commonality of Interest

330

4.

Types of Information that May Be Shared

331

5.

Individuals Who May Share or Receive Joint-Defense Material

331

6.

Application Only to Inter-Party Communications

332

7.

Waiver of Privilege

333

8.

Duty to Maintain Confidentiality

334

9.

Notice to Joint-Defense Group of Compelled Disclosure

335

10.

Procedure for Joining or Withdrawing from Joint-Defense Group

335

11.

No Attorney-Client Relationship and No Conflict of Interest

336

12.

Agreement Does Not Impact Right to Communicate with Plaintiff or Settle

337

B.

Clauses Addressing Certain Issues

337

1.

Notice to Joint-Defense Group Before Filing a Reexamination

338

2.

Agreement Is Not a Release; Sharing of Prior Art Is Not Notice for Purposes of Willful Infringement

338

3.

Creation of a Steering Committee

338

4.

Agreement and Existence of Agreement Are Privileged

339

5.

Handling Inadvertent Disclosures: Clawback Provisions

339

6.

Limitation on Use of Joint-Defense Material

340

C.

Standard Contract Clauses Included in Joint-Defense Agreements

340

1.

No Agency

340

2.

No Privity

340

3.

Modification

341

4.

Severability

341

5.

Governing Law

341

6.

Entire Agreement

341

7.

Execution in Counterparts

342

8.

Notice

342

9.

No Adequate Remedy at Law

342

10.

Entry into Joint-Defense Group Is Voluntary

342

D.

Checklist of Joint-Defense Agreement Clauses

343

IV.

Advantages and Disadvantages of a Joint-Defense Agreement

343

V.

Conclusion

344

ch. 12

Interrogatories and Requests for Admission

345

I.

Interrogatories

346

A.

Introduction

346

B.

Historical Strategic Use of Interrogatories

346

C.

Drafting Interrogatories

347

1.

Mechanics

347

a.

Timing

347

b.

Limits on the Number of Interrogatories

348

2.

Definitions and Instructions

349

3.

General Considerations for Drafting Interrogatories

350

a.

First Consideration---Be Strategic

350

b.

Second Consideration---Be Clear

351

c.

Third Consideration---Be Specific to Avoid a Blanket Reference to Rule 33(d)

352

d.

Fourth Consideration---Be Defensible

352

4.

Contention Interrogatories

352

D.

Answering Interrogatories

353

1.

The Role of the Client and the Attorney in Answering Interrogatories

353

2.

Timing for Providing Answers and Objections

354

3.

Strategic Use of Objections

354

4.

Motion for a Protective Order

356

5.

Drafting Answers

356

E.

Responding to Objections and Motions to Compel

358

F.

Strategic Use of Interrogatories

360

II.

Requests for Admission

361

A.

Introduction

361

B.

Requirements and Effect of Federal Rule of Civil Procedure 36

362

C.

History of Rule 36

365

D.

Purpose of Rule 36

366

E.

Scope of Permissible Requests

368

F.

The Request for Admission as Compared With Other Discovery Tools

371

G.

Form of Request

373

H.

Use of Admissions

374

ch. 13

Document Discovery in Patent Litigation

377

I.

Introduction

378

II.

Statutory Provisions of the Federal Rules of Civil Procedure

379

A.

Key Federal Rules of Civil Procedure

379

B.

Additional Provisions of the Federal Rules of Civil Procedure

380

C.

Local Rule Provisions

380

D.

Offshore (Non-U.S.) Discovery

381

III.

What May Be Obtained Through Document Discovery

382

IV.

Practical Considerations in Document Production

383

A.

Electronic-Format Productions

384

1.

Understanding Electronic Documents

386

2.

Hidden Data in Electronic Documents

387

B.

Production of Requested Materials

387

1.

Inspection of Company Records Before Production

388

2.

Organizing the Production

388

3.

Numbering and Stamping

389

4.

Selecting the Proper Format for Electronic Production

391

5.

Utilizing a Commercial Vendor for Management of Electronic Documents

391

6.

Costs Associated With Electronic Discovery

393

V.

What May Not Be Obtained Through Document Discovery

393

A.

Material Subject to the Attorney-Client Privilege or the Attorney Work-Product Immunity

393

B.

Material That Does Not Constitute Relevant Information Under Rule 26

395

C.

Material Not Timely Sought or Properly Described

396

1.

Time of Request

396

2.

Required Specific Description of Documents/Things Sought

397

VI.

Parties From Whom Document Discovery May Be Obtained

397

A.

Party to Litigation

397

1.

Parent/Subsidiary/Corporate Family

399

2.

Attorneys, Corporate Officers, and Agents

401

3.

Expert Witnesses

401

B.

Nonparty to Litigation

405

VII.

What Obligation to Preserve Documents for Discovery Exists in Litigation

406

A.

In General

406

B.

Spoliation

407

1.

Spoliation Issues Regarding Electronic Discovery

409

2.

Document Retention Policies and Spoliation

410

3.

Preservation Orders

411

VIII.

Sanctions for Failure to Properly Respond to Document Discovery Requests

412

IX.

Tactical Considerations in Seeking Document Discovery

413

X.

Tactical Considerations in Defending Against Document Discovery

415

XI.

Production of Tangible Things and Access to Premises

417

A.

Production of Tangible Things

417

B.

Access to Premises

417

C.

Access to Computers

419

XII.

Obtaining U.S. Discovery in Aid of Foreign Litigation

420

A.

Background of Section 1782

420

B.

The Statutory Prerequisites

421

1.

Interested Persons

422

2.

Located in the Judicial District

422

3.

Use in Connection With Foreign Proceedings

423

C.

Discretionary Considerations

423

1.

Respondent's Status as a Party to the Foreign Proceedings

425

2.

The Foreign Tribunal's Receptivity to U.S. Discovery Assistance

425

3.

Attempts to Circumvent Foreign Proof Gathering Restrictions

426

4.

Undue Burden

426

D.

Defenses to Section 1782 Discovery Requests

427

E.

Modification of Protective Order to Permit Discovery to Be Used in Foreign Litigation

428

Appendix 13.1

429

Appendix 13.2

434

Appendix 13.3

435

Appendix 13.4

438

Appendix 13.5

453

Appendix 13.6

454

Appendix 13.7

455

Appendix 13.8

457

ch. 14

Electronic Discovery

461

I.

Introduction

463

A.

Special Considerations in the Electronic Discovery Context

465

1.

Unique Characteristics of Electronic Documents

465

a.

Volume and Duplicability

465

b.

Different Levels of Accessibility

466

c.

"Deleted" Electronic Documents May Be Retrievable

467

d.

Searchability

467

e.

Metadata and Underlying Data

468

f.

Environment-Dependence and Obsolescence

469

g.

Dynamic Content and Automatic Destruction

469

2.

Use of Outside Technical Experts to Locate, Retrieve, and Translate Requested Information

470

B.

Special Considerations for Electronic Discovery in the Patent Litigation Context

470

1.

The Unusual Burdens of Discovery Compliance in Patent Cases

470

2.

Non-Practicing Entities Take Advantage of Imbalances in Discovery Obligations

472

C.

The Seminal Zubulake and Pension Committee Opinions of the S.D.N.Y.'s Judge Scheindlin

473

1.

Keyword Searches

Can the duty to preserve documents in anticipation of or during litigation be satisfied by preserving only electronic documents flagged by keyword searches? (Zubulake V)

474

2.

Sampling

Can the recovery and examination of a sampling of documents or backup tapes be used initially to determine whether the remaining unretrieved documents are likely enough to be relevant to merit their retrieval as well? (Zubulake III)

474

3.

Cost-Shifting

Which party should bear the costs of discovery of "inaccessible" electronic documents? (Zubulake III)

475

4.

Spoliation/Automatic Document Destruction Policies

When does the carrying out of a "routine" document destruction policy, especially in the context of backup tapes, constitute spoliation? (Zubulake IV; Pension Committee)

477

5.

Counsel's Responsibilities

What are counsel's responsibilities for ensuring the client's litigation hold is carried out properly? (Zubulake V; Pension Committee)

478

6.

Sanctions

When should sanctions be given for spoliation due to negligence, gross negligence, or wilfullness?

479

II.

The Federal Rules of Civil Procedure Governing Electronic Discovery

480

A.

Amended Rule 26(f) Makes Discovery Conferences a Critical Part of the Litigation Process

480

B.

Amended Rule 34 Makes All "Electronically Stored Information" ("ESI") Discoverable

481

C.

Amended Rule 26 Adds ESI to the Initial Disclosure Requirements of 26(a) and Discovery Conference Requirements of 26(f)

481

D.

Amended Rule 26 Steers the Law of Privilege in a New Direction

482

1.

Amended Rule 26(b)(5) Arguably Establishes as the Default a Right to "Claw Back" Any Inadvertently Produced Document on Grounds of Privilege

482

2.

Rule 26(f) Requires Issues Relating to Claims of Privilege to Be Discussed During the Discovery Conference

483

E.

Amended Rule 16(b) Adds Electronic Discovery to the Agenda for Pretrial Conferences

484

F.

Amended Rule 26(b)(2) Makes Discoverable All Relevant ESI but also Protects Parties From Unduly Burdensome Discovery

484

G.

Amended Rule 26(b)(2) Allows for Cost-Shifting

485

H.

Amended 34(b) Allows Requesting Parties to Specify the Form in Which ESI Is to Be Produced but Does Not Require the Producing Party to Produce the Same ESI in More Than One Form

486

I.

Amended Rule 34(b) Requires Documents to Be Produced in Either the Forms in Which They Are Ordinarily Maintained or in a Form or Forms That Are "Reasonably Usable"

486

1.

The Amended Rules Suggest that Electronic Documents Must Be Produced in Text-Searchable Form to Be "Reasonably Usable"

487

2.

Certain Electronic Documents Arguably Must Be Produced in Native Format to Be "Reasonably Usable"

487

J.

Amended Rule 34(a) Allows for Requests to Test or Sample ESI

488

K.

New Rule 37(f) Limits Judicial Sanctions for Spoliation of ESI Under the Federal Rules

488

1.

The December 2006 Amendments Leave Unresolved the Question of When the Duty to Preserve Attaches

489

2.

Rule 37(f) Does Not Remove the Courts' Inherent Power to Sanction and Does Not Restrict Discovery Sanctions

491

III.

For the Practitioner

491

A.

Prelitigation Document Retention/Destruction Policies

492

1.

Learn the Client's Computer System and Document Retention/Destruction Policy

492

2.

When Does the Duty to Preserve Attach?

493

B.

During Litigation

493

1.

Meet With the Client's IT Department and "Key Players" to Develop and Execute Litigation Hold

493

2.

Inform Employees of Litigation Hold

495

3.

The Special Problem of Keyword Searches

496

4.

Negotiate With Opposing Counsel/Rule 26(f) Conference

499

5.

Conducting Discovery

499

a.

Drafting Discovery Requests

499

b.

Responding to Discovery Requests

500

i.

Preservation of Documents

500

ii.

Collection and Review of Documents

500

a.

Keyword Search Terms

501

b.

The Special Case of E-mail Production

501

iii.

Form of Production

503

c.

Deposing Opposing Party's IT Department

503

d.

Hiring Computer Expert to Examine Opposing Party's Computer Systems

503

e.

Estimating Costs of Both Parties' Requested Discovery Responses

503

6.

Discovery Disputes

504

a.

Rule 1

504

b.

Rule 26(g)

505

c.

Rule 26(b)(2)(C)

505

d.

Appointment of Special Masters to Address E-Discovery Issues

506

IV.

Conclusion

506

ch. 15

Patent Depositions

509

I.

Introduction

510

II.

The Purposes of Taking Depositions and the Importance of Witness Preparation

510

III.

Preliminary Matters

512

A.

Dealing with Numerical and Temporal Limitations on Depositions

512

B.

When to Begin

513

C.

Establish Priority

514

D.

Selecting Witnesses for Depositions and Rule 30(b)(6)

515

1.

Choosing the Deponents Yourself

516

2.

Federal Rule of Civil Procedure 30(b)(6)

516

E.

Videotaping

518

IV.

Examining Adverse Party Witnesses

518

A.

General Considerations

518

B.

Liability Depositions of the Patentee

520

1.

Examining the Inventor

520

2.

Examining the Prosecuting Attorney

524

C.

Liability Depositions of the Alleged Infringer

525

D.

Damages Depositions

527

V.

Witness Preparation

528

A.

Preliminary Considerations

528

1.

Gather the Relevant Documents

528

2.

Keep in Mind That Anything Shown to the Witness May Be Subject to Disclosure

529

3.

Should the Witness's Recollection Be Refreshed?

529

B.

Preparing the Witness

530

1.

Put the Case in Context

530

2.

Establish What the Witness Knows

531

3.

Some Do's and Don'ts

532

a.

Make Sure You Understand the Question, and Answer That Question Succinctly---Don't Volunteer

532

b.

Don't Guess or Speculate; Say "I Don't Know" or "I Don't Remember"

533

c.

Beware of Questions Concerning Documents

533

4.

If Time and Money Allow, Conduct a Mock Examination

534

C.

Representing the Witness

534

VI.

Third-Party Depositions

536

A.

Contact the Witness Before Proceeding with Discovery

536

B.

Examining Favorable and Neutral Third-Party Witnesses

537

C.

Examining Hostile Third Parties

538

D.

Defending Third-Party Depositions

538

VII.

Expert Witnesses

539

A.

Purpose of the Examination

539

B.

Preparing for an Expert Deposition

540

C.

Work Product Immunity Issues

541

D.

Examining the Adverse Expert

542

ch. 16

Attorney-Client Privilege and the Work Product Doctrine in Patent Litigation

545

I.

Introduction

545

II.

Attorney-Client Privilege: An Overview

546

A.

Confidentiality and Disclosure

548

B.

Diminution of Privilege

549

III.

Discoverability of Patent Attorney's and Company's Patent Files

550

A.

The Privilege of Prosecution

551

B.

Applicability of Privilege to U.S. and Foreign Patent Agents and to Foreign Patent Attorneys

553

C.

Applicability of Privilege During Due Diligence and Patent Purchase Procedures

558

IV.

Inadvertent Disclosure of Privileged Documents

559

A.

Waiver Due to Inadvertent Disclosure

561

B.

Rule 502

564

C.

What to Do With Inadvertently Disclosed, Privileged Material

566

V.

The Applicability of Privilege to E-Mail and Metadata

567

VI.

Experts and Privilege

569

VII.

Conclusion

572

ch. 17

Foreign Discovery

573

I.

Introduction and Overview

573

II.

Channels for Foreign Discovery

574

A.

Use of the Federal Rules of Civil Procedure

575

B.

Use of the Hague Convention

583

C.

Letters Rogatory

586

D.

Extraterritorial Subpoenas

587

III.

Obstacles to Foreign Discovery

589

A.

Privileges and Immunities

589

1.

Attorney-Client Privilege

589

2.

Qualified Immunities

593

3.

Community of Interest

593

B.

Foreign Blocking Statutes

594

IV.

Jurisdictional Issues

599

ch. 18

Third-Party Discovery

605

I.

Introduction

606

II.

Overview of Third-Party Discovery Methods

607

A.

Subpoenas under Federal Rule of Civil Procedure 45 and Relevance

607

B.

Jurisdiction Issues

613

1.

Jurisdictional Discovery

614

2.

Third-Party Discovery and Transfer

615

C.

Winning Strategies

617

III.

Typical Third-Party Discovery Scenarios

619

A.

Third-Party Companies

619

1.

Scenario 1

619

a.

Katz v. Batavia Marine & Sporting Supplies, Inc.--- The Federal Circuit's Restrictive Approach to Third Party Discovery

620

b.

Third Party Discovery in the Lower Courts

621

2.

Scenario 2

626

a.

Truswal Systems Corp. v. Hydro-Air Engineering, Inc.--- The Federal Circuit Vacates an Order Quashing a Subpoena for Confidential Sales Information

626

b.

American Standard, Inc. v. Pfizer, Inc.---The Federal Circuit Upholds a Protective Order Concerning Confidential Information

628

c.

Discovery of Third Party Sales Information to Prove Lost Profits

630

d.

Conclusion

634

3.

Scenario 3

635

a.

The Haworth Cases---The Requirement to First Seek Litigation Materials from a Party Opponent Before Resorting to Third Party Discovery

635

b.

Third Party Discovery of Litigation Materials

637

4.

Scenario 4

637

a.

Joy Technologies, Inc. v. Flakt, Inc.---Specific Need Required to Obtain Evidence from Third Party Customers

638

b.

Harm to a Party's Relationship with Customers or Availability of the Discovery from Alternative Sources Lead to Preclusion of Discovery from Third Party Customers

638

B.

Third-Party Individuals

641

1.

Scenario 1

641

a.

Analysis

641

b.

Societe Internationale Pour Participations Industrielles et Commerciales, S.A. v. Rogers---Dismissal for Failure to Comply with a Discovery Order in Violation of Foreign Law Is Not Always Appropriate

643

c.

Third Restatement of Foreign Relations Law and the Hague Convention

644

d.

In re Nifedipine Capsule Patent Litigation---Agreements of Foreign Third Parties to Testify

647

e.

Abbott Laboratories v. Impax Laboratories, Inc.--- Requirements for Letters of Request

649

f.

Foreign Discovery of Third Parties Located in the United States

650

g.

Great Britain's Treatment of Third-Party Discovery in Patent Litigation

652

h.

Modification of Protective Order

656

2.

Scenario 2

657

a.

Analysis

657

b.

Origins of the "Mental Processes" Rule

658

c.

Application of the "Mental Processes" Rule to Patent Examiners by the Federal Circuit

658

d.

Conclusion

659

3.

Scenario 3

660

IV.

Electronic Discovery of Third Parties

661

ch. 19

Confronting Discovery Problems

665

I.

Introduction

666

II.

Brief Review and Summary of the Law and Rules Governing Discovery

668

A.

Governing Law

669

B.

Standard of Review

671

C.

Summary of Entitlements and Limitations of Discovery Under the Federal Rules of Civil Procedure

671

1.

Required Disclosures

671

a.

Initial Disclosures Under Federal Rule of Civil Procedure 26(a)

671

b.

Disclosure of Expert Testimony

672

c.

Pretrial Disclosures Under Federal Rule of Civil Procedure 26(a)(3)(A-B)

672

d.

Duty to Supplement Under Federal Rule of Civil Procedure 26(e)

673

2.

Permissible Discovery

673

a.

Forms of Discovery

673

b.

Scope and Limitations

673

c.

Protective Orders Under Federal Rule of Civil Procedure 26(c)

674

d.

Other Limitations to Discovery

674

e.

Options in Document Production Under Federal Rule of Civil Procedure 34(b)

675

f.

Duty to Supplement Under Federal Rule of Civil Procedure 26(e)(2)

675

III.

Rule 37 Motions to Compel

675

A.

Failure to Make or Cooperate in Discovery

675

B.

Unwarranted Discovery Requests

676

C.

Where to File Motions and Prerequisite Notice

676

D.

Involvement of the Judge in Controlling Discovery

677

1.

Consequences of Discovery Misconduct

677

2.

Being Sensitive to the Judge

677

3.

Avoiding Untimely or Unnecessary Entreaties

677

4.

Limitations on Discovery

678

5.

Own House in Order

678

6.

Production Under Protective Order

679

7.

Motions for Stay

680

8.

Motion for Additional Discovery Under Federal Rule of Civil Procedure 56(f)

680

9.

Discovery Extension Practice

681

E.

Practical Considerations

681

1.

"Irrelevant and Overly Broad"

681

2.

Interrogatories or Deposition Questions That Arguably Require "Claim Interpretation as a Matter of Law"

682

3.

Privileged Communications/Work Product

684

4.

Protection of Trial Preparation Materials

685

5.

Expert Reports

685

6.

Patent Examiners

688

IV.

Penalties for Discovery Misconduct

688

A.

Penalties Available Under the Federal Rules

688

1.

Limiting Litigation Rights

688

2.

Recovery of Costs

690

a.

When the Motion Is Granted

690

b.

When the Motion Is Denied

690

B.

Remedies for Discovery Abuse Under the Patent Statute

691

C.

Judicial Application of Available Sanctions

692

V.

Appeal of Discovery Orders

694

A.

Appeal of Magistrate Judges' Discovery Determinations

694

B.

Appeal to the Federal Circuit

694

VI.

Special Problems

697

A.

Discovery of Sensitive Commercial Documents

697

B.

Discovery Into Whether Patentee Has Disclosed the Best Mode

699

C.

Discovery Into Pending Patent Applications

700

D.

Discovery From Related Entities

700

E.

Attorney-Client Privilege

702

1.

Disclosure to a Third Party

708

2.

"Limited Waiver"

709

3.

Failure to Properly Log Documents for Which Privilege Is Asserted

710

F.

Motions to Compel Discovery from Nonlitigant Third Parties

711

G.

Protection Against Disclosure to Competitive Decision-Makers

712

H.

Document Retention Policies

714

I.

Joint Discovery Agreements

715

VII.

Discovery After Trial: The Due Diligence Rule

716

ch. 20

Section 337 Litigation Strategies

719

I.

Introduction

722

II.

The Opening Moves

724

A.

Differences Between U.S. District Court Patent Litigation and Patent Litigation Before the ITC Under Section 337

724

1.

The Participants

724

2.

The Rules

725

3.

Protective Orders

725

4.

Timing of a Section 337 Investigation

726

5.

Protection of the Public Interest and Presidential Review

727

6.

Remedies

728

a.

Available Remedies

728

b.

Default Judgment

728

7.

Concurrent District Court Litigation

729

a.

Temporary Stay of Commission Proceedings Pending Reexamination

729

8.

Nationwide In Rem Jurisdiction of the ITC and Nationwide Subpoena Power

731

9.

Other Notable Distinctions

732

a.

Participation by the Commission Investigative Staff

732

b.

Expenses Involved in Bringing and Defending a Section 337 Investigation

732

c.

Temporary Relief

732

d.

Permanent Relief

732

B.

Prefiling Considerations and Strategies From a Complainant's Viewpoint

734

1.

The Complaint

734

a.

Unfair Method of Competition or Unfair Act

735

b.

Importation or Sale for or After Importation

737

c.

Domestic Industry

742

d.

Mandatory Exhibits

744

e.

Level of Detail Required

746

f.

Injury

747

2.

Meeting With the Commission Investigative Staff

747

3.

Preparation of Discovery Requests and Organization of Client's Documents

748

4.

The Institution Phase

749

C.

Early Considerations From a Respondent's Viewpoint

751

1.

What to Do in the 30-Day Preinstitution Phase

751

2.

The Response

752

3.

Defenses

754

4.

Joint Defense Agreements

754

III.

Discovery

754

A.

Timing and General

754

B.

Discovery Statement

757

C.

Discovery Committee

757

D.

Discovery of Expert Witnesses

758

E.

Foreign Depositions and Facility Inspections

759

F.

Third-Party Discovery

760

G.

Scope of Discovery

760

1.

Scope of Entities Subject to Discovery

760

2.

Scope of Merchandise Subject to Discovery

766

H.

Privilege Practice

771

I.

Role of Commission Staff in Discovery

772

J.

Discovery Advantages in the ITC

772

IV.

Motions Practice

772

A.

General Procedure

772

1.

Initial Filing

773

2.

Service

774

3.

Response and Reply

775

B.

Summary Determination Motions

776

1.

Standard for Summary Determination Motions

776

2.

Procedure

777

3.

Strategic Use of Summary Determination Motions

778

a.

Strategic Tips for Complainants' Use of Summary Determination Motions

778

b.

Strategic Tips for Respondents' Use of Summary Determination Motions

779

c.

Other Considerations for Summary Determination Motions

779

C.

Markman Hearings

779

D.

Technology Tutorials

781

V.

Termination Without Trial (Hearing)

781

A.

Settlements

781

1.

Settlement Conferences

782

2.

Mediation

782

3.

Procedure

783

4.

Contents

784

5.

Remedy and Settlements

785

6.

Requests for Nondisclosure of Settlement/License Agreements

786

B.

Default

788

1.

Bases for Default

788

2.

Procedure

790

3.

Remedy and Default

790

C.

Consent Orders

791

1.

Procedure

791

2.

Contents

793

3.

Remedy and Consent Orders

793

VI.

Trial

794

A.

Pretrial

794

1.

Prehearing Statements

794

2.

Prehearing Briefs

795

3.

Joint Submissions

795

4.

Technology Tutorial

796

5.

High Priority Objections

796

6.

Prehearing Conference

796

B.

Trial

797

1.

Length of Hearing

797

2.

Proving Infringement

797

3.

Coordination Among Respondents

798

4.

Examination of Witnesses/Submission of Written Questions

798

5.

Experts and Expert Reports

799

6.

Rules of Evidence and Hearsay

800

7.

Exhibits

800

8.

Use of Depositions

802

9.

Closing Arguments

803

C.

Posttrial

803

1.

Posthearing Brief

803

2.

Proposed Findings of Fact

804

3.

Posthearing Reply Briefs

804

VII.

After Trial

805

A.

The Initial Determination

805

1.

In General

805

2.

Contents

805

3.

Confidentiality

806

B.

Commission Review

806

1.

In General

806

2.

Petitions for Review

806

3.

Review Procedure

807

4.

Standard of Review

808

5.

Final Determination by the Commission

808

6.

Petition for Reconsideration

808

C.

Determination of Remedy and Bonding

809

1.

Recommended Determination on Remedy and Bonding

809

2.

Commission Determination on Remedy and Bonding

809

3.

Exclusion Orders

809

4.

Scope and Duration of Exclusion Orders

811

5.

Remedy Issues Regarding Nonparties

811

a.

Subject or Nonsubject Merchandise?--- That Is the Question

811

i.

Subject Merchandise Specifically Found to Infringe and Imported by Nonparties

811

ii.

Subject Merchandise Not Specifically Found to Infringe and Imported by Nonparties

813

b.

So What Is a Nonparty to Do?---Intervention

814

6.

Cease-and-Desist Orders

817

7.

Bonding

817

D.

Consideration of the Public Interest

818

1.

Public Hearings Regarding Remedy

818

E.

Presidential Review

820

F.

Judicial Review of Final Commission Determinations

821

1.

The Timing of an Appeal

821

2.

The Filing of an Appeal

822

3.

The Standard of Review

822

4.

The Record on Appeal and Confidentiality

823

5.

Proceedings Before the Federal Circuit

823

6.

Stay of Effectiveness of Remedy Pending Appeal Before the Federal Circuit

823

G.

Enforcement, Modification, and Revocation of Commission Orders

825

1.

Enforcement of Commission Orders by Customs

825

2.

Enforcement Proceedings Before the Commission

825

H.

Weight and Effect of Commission Determinations on District Court Proceedings

827

Appendix 20.1

829

Appendix 20.2

870

pt. III

MOTION PRACTICE

ch. 21

Motion Practice

885

I.

Introduction

886

II.

The Unique Context of Patent Litigation

886

A.

The Impact of Motion Practice on the Court

887

B.

The Impact of Motion Practice on the Parties

888

III.

Pleadings Motions

889

A.

Rule 12 Motions

889

B.

Inequitable Conduct

890

C.

Sanctionable Pleadings

891

IV.

Summary Judgment Motions

893

V.

Preliminary Injunction Motions

898

VI.

Motion Practice After Markman

901

A.

Promoting Early Disposition of Key Markman Issues

902

B.

Defining the Context in Which Markman Issues Are Resolved

904

C.

Altering the Logistics of Any Hearings on Key Markman Issues

904

VII.

Festo Motion Practice

905

A.

Background

905

B.

Festo Motion Practice: Establishing Whether the Doctrine of Equivalents Is in the Case

905

VIII.

Motions in Limine

906

A.

Background

906

B.

Motions in Limine Seeking to Exclude the Introduction of Evidence at Trial

907

1.

Motions in Limine to Exclude Expert Testimony

907

2.

Motions in Limine to Exclude Evidence of Prior Litigations

908

3.

Motions in Limine to Exclude Prior Settlement Agreements

908

4.

Motions in Limine to Exclude Evidence Bearing on Willful Infringement

909

5.

Motions in Limine to Exclude Hearsay Testimony

909

6.

Motions in Limine to Exclude Evidence of an Issued Patent

909

7.

Motions in Limine Regarding Inequitable Conduct

910

8.

Motions in Limine to Exclude Findings of Infringement

910

9.

Motions in Limine to Preclude Witness Testimony on Claim Construction

910

C.

Motions in Limine Precluding Proof on Certain Matters

911

D.

Preservation of Evidentiary Issues for Appellate Review

912

IX.

Procedural Motions

913

A.

Supplementation of Prior Discovery

913

B.

Motion Practice Relating to Violations of the Duty to Supplement

915

C.

Motion Practice in Relation to the Section 282 Prior Art Notice

917

D.

Motion Practice Relating to Third-Party Subpoenas

919

E.

Motion Practice Relating to Discovery From Patent Examiners

923

F.

Secondary Motions

925

G.

Bifurcation of Issues for Trial

925

H.

Bifurcation of Discovery

927

X.

Conclusion

928

ch. 22

Markman Practice, Procedures, and Tactics

931

I.

Introduction

932

II.

Claim Construction: Approaches and Evidence

933

A.

Claim Terms Are Presumed to Have Their Ordinary Meaning

934

1.

Claim Terms Where Ordinary Meaning Is Modified by Patent Applicant

935

2.

Claim Terms That Have No Ordinary Meaning in the Relevant Art

936

B.

Types of Evidence Relied Upon in Claim Construction

936

1.

Intrinsic Evidence

936

a.

Claim Language

937

b.

The Specification

940

c.

Prosecution History

945

2.

Extrinsic Evidence

947

3.

Dictionaries

949

C.

Relative Importance of the Types of Evidence: Claim Construction in Light of Phillips

950

D.

Unambiguous Claim Language and Language Not in Dispute Need Not Be Construed

952

III.

Invalidity Issues in Claim Construction

953

IV.

The Timing of Markman Hearings

957

A.

Timing in Relation to Discovery

957

1.

Early-Stage Claim Construction Hearing

957

a.

Generally

957

b.

Simultaneous Claim Construction and Preliminary Injunction Hearings

959

2.

Later-Stage Claim Construction Hearing

960

a.

Generally

960

b.

Simultaneous Claim Construction and Summary Judgment Hearings

961

3.

Alternative Approaches

962

B.

Timing Established by Local Rules

963

C.

No Markman Hearing

965

D.

Claim Construction as Part of the Trial

966

V.

Other Procedures

967

A.

The Use of Court-Appointed Experts

967

1.

Experts Appointed Pursuant to Fed. R. Evid. 706

968

2.

Experts Appointed Pursuant to the Court's Inherent Authority

968

B.

The Effect of Collateral Estoppel on Claim Construction

971

C.

Handling Claim Construction at Trial

973

D.

Claim Construction as a Component of the Prefiling Inquiry

975

VI.

Appeal of Claim Construction Decisions

975

A.

Standard of Review

975

B.

Appealability of Claim Construction Rulings

976

C.

Issues Considered on Appeal

978

VII.

Conclusion

980

pt. IV

THE TRIAL PRESENTATION

ch. 23

The Judge's Viewpoint

983

I.

Generally

984

II.

Pleadings

984

A.

The Complaint

985

1.

Subject-Matter Jurisdiction

985

2.

Statement of the Claim

985

3.

Demand for Relief

986

4.

Venue

986

B.

Filings Responsive to the Complaint

986

1.

Motions to be Filed before the Answer

986

2.

Answer

987

a.

Admissions and Denials

987

b.

Asserting Affirmative Defenses

988

c.

Counterclaims

988

III.

Pretrial Scheduling

989

A.

Local Rules

989

B.

Rule 16 Conferences

989

IV.

Discovery

990

A.

Relevance

990

B.

Electronically Stored Information Discovery

990

C.

Discovery Disputes

992

D.

Preliminary Injunctions

992

V.

Claim Construction

993

A.

Technology Tutorials

993

B.

Identifying Claim Terms

994

C.

Preparing Claim Construction Briefs

994

D.

The Markman Hearing

996

VI.

Potentially Dispositive Motions

996

VII.

Pretrial Issues

997

A.

Pretrial Statement

997

B.

Proposed Jury Instructions

998

C.

Motions in Limine

999

VIII.

Settlement

999

IX.

Trial

999

A.

Persuasive Presentation Procedures

999

B.

Expert Witnesses

1002

1.

Effective Direct Examination

1002

2.

Effective Cross Examination

1003

C.

Rule 50 Motions at the Close of Evidence

1004

X.

Conclusion

1005

ch. 24

The Trial

1007

I.

Introduction

1008

II.

Preparation for Trial

1010

A.

General

1010

B.

Know Your Judge and the Local Rules

1012

C.

Planning the Trial Presentation

1014

1.

Narrowing the Issues

1014

2.

Educating the Jury

1016

3.

Persuading the Jury

1018

D.

The Pretrial Statement and Conference

1020

1.

The Pretrial Statement

1020

2.

Stipulations

1022

3.

Transitional Statements

1022

4.

Bifurcation of Issues

1023

5.

Consent to Trial of Issues by the Jury

1025

6.

The Final Pretrial Conference

1028

III.

The Jury

1031

A.

Introduction

1031

B.

Jury Selection

1033

C.

Juror Notebooks, Note Taking, and Questions

1035

D.

Jury Tutorials

1038

E.

Jury Consultants (Litigation Support)

1039

F.

Pretrial Jury Instructions

1040

G.

Post-trial Instructions

1041

H.

Special Verdicts

1044

IV.

Selection and Preparation of Witnesses

1049

A.

Introduction

1049

B.

Selection of Fact Witnesses

1049

C.

Selection of the Testifying Expert Witnesses

1051

1.

Areas of Expertise

1053

2.

Types of Skills and Qualifications

1055

3.

Prior Inconsistent Statements

1057

D.

Preparation of Witnesses for Testimony at Trial

1057

1.

General Preparation of Witnesses

1057

2.

Special Concerns for the Preparation of Expert Witnesses

1064

V.

Order of Presentation

1066

A.

The Case in Chief

1066

1.

The Inventor

1068

2.

Other Corporate Witnesses

1070

B.

The Answering Case and Case in Chief

1071

C.

Subsequent Stages

1071

VI.

Opening Statement

1072

VII.

Presentation of Proof

1076

A.

Examination of Witnesses

1076

1.

Order of Witnesses

1076

2.

Direct Examination

1078

3.

Deposition Designations

1079

4.

Cross-Examination

1081

5.

Examining the Expert Witness

1083

B.

Evidentiary Issues

1087

1.

The Inventor Notebooks

1088

2.

Admissions

1090

3.

Offers of Proof

1093

4.

The Bench Brief

1093

C.

Direct Evidence

1094

1.

Models and Other Physical Exhibits

1098

2.

Experiments at Trial

1100

D.

Demonstrative Evidence

1101

E.

Computer-Created Exhibits

1104

VIII.

Rule 50 and 52 Motions

1106

A.

Rule 50 Motion for Judgment as a Matter of Law

1106

1.

Rule 50(a) Motion for Judgment as a Matter of Law

1106

2.

Rule 50(b) Renewing Motion for JMOL After Trial

1108

B.

Judgment on Partial Findings Pursuant to Rule 52

1110

IX.

The Charge Conference

1112

X.

Closing Argument

1119

XI.

The Injunction

1122

ch. 25

Proving Infringement

1125

I.

Introduction

1126

II.

The Approach to Proving Infringement

1127

A.

Proving Direct Infringement

1127

1.

What Was the Wrongful Activity?

1128

a.

Making the Claimed Invention

1128

b.

Using the Claimed Invention

1129

c.

Selling or Offering to Sell the Claimed Invention

1130

d.

Importing the Claimed Invention

1130

e.

Importing, Using, Selling, or Offering to Sell a Product Made by the Claimed Process

1131

f.

Submitting an Abbreviated New Drug Application (ANDA) for the Claimed Drug or Medical Device

1131

g.

Exporting a Component of a Patented Combination or Process

1131

2.

When Did the Wrongful Activity Occur?

1132

3.

Where Did the Wrongful Activity Occur?

1134

4.

Who Did It?

1135

5.

Why Did It Infringe?

1136

B.

Common Evidentiary Issues

1140

1.

Testimony From Expert Witnesses

1141

2.

Deposition Testimony

1144

3.

Demonstrative Exhibits and Courtroom Demonstrations

1145

C.

Proving Contributory Infringement

1145

1.

When Is the Item Being Sold a "Material Part of the Invention"?

1146

2.

To What Item Is the Staple/Nonstaple Article of Commerce Test Applied?

1146

3.

Is the Sale, Import, or Export Prohibited Before the Patent Issues or After It Expires?

1146

4.

What Type of Knowledge Must Be Proved?

1147

5.

What Constitutes a "Sale" of a "Component"?

1147

D.

Proving Active Inducement of Infringement

1147

III.

Infringement of Design Patents

1149

IV.

Conclusion

1150

ch. 26

Willful Infringement

1153

I.

Introduction

1154

II.

Willful Infringement Fundamentals

1154

A.

Willfulness Finding Increases Damages

1155

1.

Enhanced Damages

1155

2.

Attorney's Fees for Exceptional Cases

1156

B.

The Willfulness Test

1156

1.

Part 1: Objective Risk

1157

2.

Part 2: Subjective Knowledge

1157

C.

The Advice of Counsel Defense

1159

III.

Willful Infringement Prior to Seagate

1159

IV.

The Seagate Decision

1161

A.

Rejection of the Duty-of-Care Standard

1161

B.

Waiver Resulting From Reliance on an Opinion of Counsel Does Not Extend to Trial Counsel in Most Cases

1162

V.

The Impact of Seagate

1163

A.

The Patentee's Burden of Proof for Willfulness

1163

1.

The Seagate Recklessness Standard

1163

2.

The Federal Circuit's Application of the Seagate Recklessness Standard

1165

3.

District Court Application of the Seagate Recklessness Standard

1165

B.

Post-filing Versus Prefiling Willful Infringement

1167

C.

Opinions of Counsel After Seagate

1168

1.

Competent Opinions are Still Based on Accurate and Complete Information

1169

2.

Author of the Opinion

1172

D.

The Scope of Waiver Resulting From Assertion of an Advice-of-Counsel Defense to Willful Infringement

1173

1.

In re Echostar

1173

2.

Waiver of Privilege Regarding a Written Opinion of Counsel

1174

3.

Extending Waiver to Trial Counsel

1176

4.

Considerations Regarding Opinions Offered by In-House Counsel

1177

VI.

Conclusion

1178

ch. 27

The Doctrine of Equivalents

1179

II.

Basic Equivalents Strategy

1180

A.

Plaintiffs' Strategy

1180

B.

Defendants' Strategy

1183

III.

Origin of the Doctrine

1185

A.

Early Development of the Doctrine

1186

B.

Graver Tank and the "Triple Identity" Test

1189

IV.

The Nature of an Equivalent

1191

A.

The "Insubstantial Differences" Test

1191

B.

The Traditional "Function-Way-Result" Test

1193

C.

The Lingering Benefits of Wilson Sporting Goods

1194

V.

Modern Defenses and Limitations

1195

A.

The Rise of Federal Circuit Hostility to Equivalents

1195

B.

The "All Limitations Rule"

1196

C.

Dedication to the Public

1200

D.

Other Limitations on the Doctrine

1202

E.

Summary Judgment