Patent Pilot Project Goes Into Effect On September 1, 2011; Judges Lynn, Godbey, And Kinkeade To Hear All Patent Cases

Chief Judge Fitzwater recently entered Special Order No. 3-287 (available here).  The Order states that, when a patent case is filed in or transferred to the Northern District of Texas on or after September 1, 2011, the case will be assigned according to the civil case assignment procedure then in effect in that division.  But, within seven days, the assigned judge may decline to accept the case and direct that the case be reassigned to a designated patent judge.  The designated patent judges are Judges Lynn, Godbey, and Kinkeade.  The Order notes that all Northern District of Texas Judges in the Dallas Division (except Judges Lynn, Godbey, and Kinkeade) have “advised that they intend to decline to accept [patent cases] for a period of at least one year, and that, if they later decide to accept [patent cases], they will notify the other district judges and the bar of their intentions.”

To summarize the Order, then, all patent cases filed in the Northern District of Texas (Dallas Division) on or after September 1, 2011 will be heard by either Judge Lynn, Judge Godbey, or Judge Kinkeade for at least the next year and thereafter until the bar hears otherwise from the other district judges.  This is a very exciting development for the Northern District of Texas, and we expect patent filings in the Northern District of Texas to continue to increase.

Posted in Judge Fitzwater, Judge Godbey (Chief Judge), Judge Kinkeade, Judge Lynn, N.D. Tex. News | Comments Off on Patent Pilot Project Goes Into Effect On September 1, 2011; Judges Lynn, Godbey, And Kinkeade To Hear All Patent Cases

Public Notice Regarding The Reappointment Of Magistrate Judge Roach

Magistrate Judge Roach’s current term expires on March 31, 2012.  The Northern District of Texas has issued a public notice (available here) regarding Judge Roach’s reappointment.  Written comments from members of the bar or the public regarding reappointment should be submitted, by September 23, 2011, to Karen Mitchell, Clerk of Court, United States District Court Northern District of Texas, 1100 Commerce Street, Room 1452 Dallas, Texas 75242.

Posted in Magistrate Judge Roach (Ret.), N.D. Tex. News | Comments Off on Public Notice Regarding The Reappointment Of Magistrate Judge Roach

Magistrate Judge Kaplan Issues Important Discovery Opinion in Patent Case

On July 22, 2011, Magistrate Judge Kaplan issued an Order resolving a discovery dispute in Red River v. Verizon Services Corp. et al. (Order available here).  The patent infringement case was recently transferred from the Eastern District of Texas, and Red River had filed a motion to compel discovery from Qwest.  Specifically, Red River sought discovery on three of Qwest’s services, which are offered over the computer network Red River accuses of infringement.  Qwest argued that discovery should not be allowed because Red River had failed to properly chart the three services under Patent Rule 3-1.  Red River argued that the services were in the case (and hence discoverable), based on an earlier ruling from the Court in the Eastern District of Texas.

Judge Kaplan found that it was not necessary to determine whether Red River’s infringement contentions complied with Patent Rule 3-1, because, under the Northern District of Texas’ Patent Rules, discovery is not limited by the preliminary infringement contentions, but is governed by the Federal Rules of Civil Procedure.  Judge Kaplan held that the scope of discovery in patent cases may include products or services that are “reasonably similar” to those accused in the infringement contentions.  Judge Kaplan concluded that the three services at issue were reasonably similar to the other services charted by Red River in its infringement contentions.  Accordingly, Judge Kaplan issued an Order compelling Qwest to provide discovery relating to the three services.

Red River is represented by Sam Baxter, Douglas Cawley, Christopher Bovenkamp, David Sochia, and Steven Callahan, all of McKool Smith, P.C.; Andrew Gorham, Charles Ainsworth, Robert Bunt, and Robert Parker, all of Parker, Bunt, & Ainsworth, P.C.; and D. Scott Hemingway, of Hemingway & Hansen LLP.

Qwest is represented by Brian Roche, Doyle Johnson, James Hultquist, Jennifer Yule DePriest, and John Bovich, all of Reed Smith LLP; and Bruce Sostek, of Thompson & Knight LLP.

 

Posted in Discovery, Magistrate Judge Kaplan (Ret.) | Comments Off on Magistrate Judge Kaplan Issues Important Discovery Opinion in Patent Case

Chief Judge Fitzwater Strikes Mark Cuban’s Unclean Hands Defense in SEC Enforcement Action

On July 18, 2011, in a thorough opinion (available here), Chief Judge Fitzwater agreed with the SEC that Mark Cuban’s unclean hands defense should be struck.  The SEC had instituted an enforcement action against Cuban, alleging that Cuban violated the securities acts by selling shares of stock in Mamma.com after learning material, nonpublic information concerning a planed private investment in public equity offering by the company, thereby avoiding substantial losses when the stock price later declined.  In response to the SEC’s Complaint, Cuban pled unclean hands as an affirmative defense.

Chief Judge Fitzwater rejected the SEC’s argument that unclean hands was unavailable as a matter of law, finding that it is available, but “only in strictly limited circumstances when the SEC’s misconduct is egregious, the misconduct occurs before the SEC files the enforcement action, and the misconduct results in prejudice to the defense of the enforcement action that rises to a constitutional level and is established through a direct nexus between the misconduct and the constitutional injury.”  Because Chief Judge Fitzwater found that Cuban had not sufficiently pled that Cuban suffered prejudice due to the SEC’s alleged misconduct, the SEC’s motion to strike the defense was granted.

(Chief Judge Fitzwater’s decision also noted that he has, thus far, declined to apply the plausibility standard of Twombly and Iqbal to affirmative defenses.)

 

Posted in Judge Fitzwater | Comments Off on Chief Judge Fitzwater Strikes Mark Cuban’s Unclean Hands Defense in SEC Enforcement Action

Galderma Laboratories Sues Tolmar for Patent Infringement In the Northern District of Texas

On July 18, 2011, Galderma Laboratories filed a patent infringement lawsuit against Tolmar in the Northern District of Texas.  According to the Complaint (available here), Tolmar manufactures a generic 1% metronidazole topical gel for use in the treatment of rosacea, which it has filed an Abbreviated New Drug Application with the FDA for.  Galderma claims that this gel infringes its U.S. Patent No. 7,981,916, which claims technology relating to solubilizing metronidazole.

Galderma is represented by Michael Wilson and Jamil Alibhai, both of Munck Carter, LLP; and by Joseph Mahoney, Vera Nackovic, Melissa Anyetei, and Erick Palmer, all of Mayer Brown LLP.

The case is before Judge Solis.

 

Posted in Judge Solis (Ret.), New Lawsuits Filed | Comments Off on Galderma Laboratories Sues Tolmar for Patent Infringement In the Northern District of Texas

Fifth Circuit Vacates Judge McBryde’s Triple Tee Golf Sanctions Order

Last February, we blogged about Judge McBryde’s 114-page Triple Tee Golf opinion sanctioning several attorneys (and their client) for allegedly violating Rule 11.  We just noticed that the Fifth Circuit Court of Appeals, in an unpublished opinion from April 2011 (available here), vacated the sanctions Order and remanded it to the district court for assignment to a different judge to consider the sanctions question.

The sanctions Order was premised on whether Judge McBryde “said and did the things of which [an individual] accused him[.]”  Judge McBryde’s Order stated:  “The court judicially knows that the undersigned did not say the things [the individual] stated in his declaration[.]”  The Fifth Circuit, without considering the merits of the Order, found that Judge McBryde was disqualified from presiding over the sanctions hearing because he had personal knowledge of disputed evidentiary facts.  See 28 U.S.C. §455(b)(1) (a judge “shall . . . disqualify himself . . . [w]here he has . . . personal knowledge of disputed evidentiary facts concerning the proceeding.”).

Posted in Fifth Circuit Court of Appeals, Judge McBryde (Ret.), Sanctions | Comments Off on Fifth Circuit Vacates Judge McBryde’s Triple Tee Golf Sanctions Order

Northern District of Texas Judges To Hold CLE Discussing the Implementation of the Patent Pilot Program

The IP Law Section of the Dallas Bar Association has announced that, on July 26, 2011, Judges Lynn, Godbey, and Kinkeade will hold a lunch-time CLE at the Belo to discuss the Northern District of Texas’ Patent Pilot Program and discuss how they run their patent cases.

The IP Law Section has been asked to gather questions, concerns, and ideas about the Pilot Program, and has requested any such comments to be sent to PatentPilotProgram@dbaip.com.  The IP Law Section will provide comments to the Judges (anonymously) prior to the CLE.

We’ll try to attend the event and provide our readers with a summary.

 

Posted in Judge Godbey (Chief Judge), Judge Kinkeade, Judge Lynn, N.D. Tex. News | Comments Off on Northern District of Texas Judges To Hold CLE Discussing the Implementation of the Patent Pilot Program

President Obama Nominates Sarah Saldana to Become the Next United States Attorney for the Northern District of Texas

It was announced yesterday that President Obama has nominated Sara Saldana to become the next United States Attorney for the Northern District of Texas.  Ms. Saldana presently heads the public corruption unit of the United States Attorney’s Office of the Northern District of Texas, and has served as an Assistant United States Attorney in the Northern District of Texas since 2004.  Ms. Saldana’s nomination now must be confirmed by the Senate.  News articles on the nomination can be found here and here.

Posted in N.D. Tex. News | Comments Off on President Obama Nominates Sarah Saldana to Become the Next United States Attorney for the Northern District of Texas

Judge O’Connor Issues Important Patent Opinion in Lighting Ballast Control

On June 10, 2011, Judge O’Connor issued an opinion in Lighting Ballast Control v. Philips Electronics North America Corp. et al. (copy of opinion located here).  Judge O’Connor struck the plaintiff’s damages expert’s opinion that used the entire market value theory to confirm the reasonableness of his proposed royalty rate.  Judge O’Connor found that the expert “[was] clearly checking or analyzing his royalty rate in light of [the defendant’s] total sales of the accused products, without any evidence that the [patent-in-suit] drives or forms the basis for sales of the accused products.”  According to Judge O’Connor, the use of the entire market value theory was improper under Federal Circuit authority where the expert failed to present evidence that the patented technology drove sales of the accused products.

Judge O’Connor also prohibited the plaintiff’s damages expert from relying on a settlement agreement between the plaintiff and a former defendant in the case, as such reliance was not reliable under Daubert in light of the relevant facts the case.

As patent practitioners know, the state of patent damages law is currently in flux.  Judge O’Connor’s opinion in Lighting Ballast Control should be considered when formulating damages theories in patent infringement cases.

Judge O’Connor’s opinion is also notable because it rejected the defendant’s attempt to preclude the plaintiff from referring to the statutory presumption of validity before the jury.

Lighting Ballast Control is represented by Jonathan Suder and David Skeels, both of Friedman Suder & Cooke PC.

Universal Lighting Technologies, Inc. is represented by Deborah Sterling and Brenda Cubbage, both of Spencer, Crain, Cubbage, Healy, & McNamara; and Diana Szego, John Inge, Sten Jensen, Steven Routh, and Vann Pearce, all of Orrick Herrington & Sutcliffe LLP.

Posted in Judge O'Connor | Comments Off on Judge O’Connor Issues Important Patent Opinion in Lighting Ballast Control

Judge Solis Upholds the Constitutionality of the False Marking Statute

On June 20, 2011, Judge Solis of the Northern District of Texas, in United States ex rel. Vandever v. Intermatic Manufacturing, upheld the constitutionality of the false marking statute, 35 U.S.C. § 292, which prohibits, among other things, the false marking of products with patent numbers, if done with the intent to deceive the public.  A copy of the decision is available here.

Judge Solis upheld the constitutionality of the qui tam provision of the false marking statute, 35 U.S.C. § 292(b), which allows any person to file a lawsuit on behalf of the United States, against a “take Care” challenge under Article II of the United States Constitution.  Judge Solis found that the qui tam provision did not offend the “take Care” clause of the Constitution because the United States retains “the control necessary to hold the civil statute constitutional.”

 

Posted in Judge Solis (Ret.) | Comments Off on Judge Solis Upholds the Constitutionality of the False Marking Statute