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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE ACCELERATION BAY, LLC, Plaintiff, Civil Action No. 22-904-RGA v. AMAZON WEB SERVICES, INC., Defendant. MEMORANDUM OPINION Philip A. Rovner, POTTER ANDERSON & CORROON, LLP, Wilmington, DE; Paul J. Andre, Lisa Kobialka, James Hannah (argued), Kristopher Kastens, Michael Lee, Christina M. Finn, KRAMER LEVIN NAFTALIS & FRANKEL LLP, Redwood Shores, CA; Aaron M. Frankel (argued), Marcus A. Colucci, Pooja P. Parekh, KRAMER LEVIN NAFTALIS & FRANKEL LLP, New York, NY, Attorneys for Plaintiff. Jack B. Blumenfeld, Jennifer Ying, MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Wilmington, DE; Alan M. Fisch, R. Williams Sigler (argued), Jeffrey M. Saltman (argued), Lisa N.Phillips, Kyle K. Tsui, Lauren Hutchison (argued), FISCH SIGLER LLP, Washington, D.C.; Ken K. Fung, FISCH SIGLER LLP, San Mateo, CA, Attorneys for Defendant. September 12, 2024 ANDREWS, U.S. DISTRICT JUDGE: Before me are Plaintiffâs summary judgment and Daubert motions (D.I. 150) and Defendantâs summary judgment and Daubert motions (D.I. 147). The motions have been fully briefed. (D.I. 148, 161, 170 (Defendantâs motion); D.I. 151, 159, 172 (Plaintiffâs motion)). I heard oral argument on August 21, 2024 (Hearing Tr.).1 At my request, the parties submitted supplemental letter briefing on several issues in dispute. (D.I. 192, 193, 194, 195). For the reasons set forth below, Plaintiffâs summary judgment and Daubert motions are GRANTED IN PART and DENIED IN PART. Defendantâs summary judgment and Daubert motions are GRANTED IN PART and DENIED IN PART. I. BACKGROUND Plaintiff owns U.S. Patent Nos. 6,701,344 (âthe â344 patentâ), 6,714,966 (âthe â966 patentâ), 6,732,147 (âthe â147 patentâ), 6,829,634 (âthe â634 patentâ), and 6,910,069 (âthe â069 patentâ). Plaintiff acquired the patents from Boeing, the original assignee and owner of the patents, on December 10, 2014. (D.I. 149-1, Ex. 4). The sale agreement provides that Boeing will receive seventy-five percent of the proceeds from the settlements, sales, and licensing revenues that Plaintiff obtains from the patents. (Id. at 4). The asserted patents are directed towards computer network systems and methods of adding participants to, removing participants from, and delivering information across computer networks. The â344 Patent issued on March 2, 2004 and expired on September 21, 2021. (D.I. 149-1, Ex. 11 ¶ 249). The â966 patent issued on March 30, 2004 and expired on November 10, 2021. (Id.). The â147 patent issued on May 4, 2004 and expired on July 20, 2022. (Id.). The 1 Citations to the transcript of the argument, which is docketed at D.I. 197, are in the format âHearing Tr. at __.â â634 Patent issued on December 7, 2004 and expired on August 7, 2022. (Id.). The â069 Patent issued on June 21, 2005 and expired on July 9, 2022. (Id.). Defendant offers customers a variety of cloud computing products, including âVirtual Private Cloudsâ (âVPCsâ), which are virtual networks that run on computing resources isolated from those used by Defendantâs other customers, and services for connecting VPCs with each other and with other networks. (D.I. 148 at 5â8; D.I. 151 at 3â6). Plaintiff filed this case on July 6, 2022, alleging Defendant infringed the asserted patents through various VPC-related products. (D.I. 1). The products that remain accused are VPC, Transit Gateway, CloudFront, Elastic Cloud Computing (âEC2â), Elastic Kubernetes Services (âEKSâ), GameLift, and App Mesh.2 (D.I. 149-1, Ex. 1 at 3). The remaining asserted claims are claims 13 and 21 of the â344 patent, claim 1 of the â966 patent, claims 10 and 25 of the â634 patent, claim 6 of the â147 patent, and claim 1 of the â069 patent.3 (D.I. 188 at 1). II. LEGAL STANDARD A. Summary Judgment âThe court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.â Fed. R. Civ. P. 56(a). The moving party has the initial burden of proving the absence of a genuinely disputed material fact relative to the claims in question. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). Material facts are those âthat could affect the outcomeâ of the proceeding. Lamont 2 Plaintiff also identified three accused products of Defendantâs parent company in its infringement contentions. (D.I. 149-1, Ex. 1 at 3 (listing Luna, Prime Video, and Twitch as Amazonâs infringing products)). 3 During the time it has taken to decide the pending motions, the parties have narrowed the case. For example, Plaintiff no longer asserts any claims of the â344 or â069 patents. (D.I. 211 at 4). v. New Jersey, 637 F.3d 177, 181 (3d Cir. 2011). â[A] dispute about a material fact is âgenuineâ if the evidence is sufficient to permit a reasonable jury to return a verdict for the non-moving party.â Id. The burden on the moving party may be discharged by pointing out to the district court that there is an absence of evidence supporting the non-moving partyâs case. Celotex, 477 U.S. at 323. The burden then shifts to the non-movant to demonstrate the existence of a genuine issue for trial. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586â87 (1986); Williams v. Borough of West Chester, 891 F.2d 458, 460â61 (3d Cir. 1989). A non-moving party asserting that a fact is genuinely disputed must support such an assertion by: â(A) citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations . . . , admissions, interrogatory answers, or other materials; or (B) showing that the materials cited [by the opposing party] do not establish the absence . . . of a genuine dispute . . . .â Fed. R. Civ. P. 56(c)(1). The non-moving partyâs evidence âmust amount to more than a scintilla, but may amount to less (in the evaluation of the court) than a preponderance.â Williams, 891 F.2d at 460â61. When determining whether a genuine issue of material fact exists, the court must view the evidence in the light most favorable to the non-moving party and draw all reasonable inferences in that partyâs favor. Scott v. Harris, 550 U.S. 372, 380 (2007); Wishkin v. Potter, 476 F.3d 180, 184 (3d Cir. 2007). If the non-moving party fails to make a sufficient showing on an essential element of its case with respect to which it has the burden of proof, the moving party is entitled to judgment as a matter of law. See Celotex Corp., 477 U.S. at 322. B. Infringement A patent is directly infringed when a person âwithout authority makes, uses, offers to sell, or sells any patented invention, within the United States or imports into the United States any patented invention during the term of the patent.â 35 U.S.C. § 271(a). Determining infringement is a two-step analysis. Markman v. Westview Instruments, Inc., 52 F.3d 967, 976 (Fed. Cir. 1995) (en banc), affâd, 517 U.S. 370 (1996). First, the court must construe the asserted claims to ascertain their meaning and scope. Id. The trier of fact must then compare the properly construed claims with the accused infringing product. Id. This second step is a question of fact. Bai v. L & L Wings, Inc., 160 F.3d 1350, 1353 (Fed. Cir. 1998). The patent owner bears the burden of proving infringement by a preponderance of the evidence. SmithKline Diagnostics, Inc. v. Helena Labâys Corp., 859 F.2d 878, 889 (Fed. Cir. 1988). âLiteral infringement of a claim exists when every limitation recited in the claim is found in the accused device.â Kahn v. Gen. Motors Corp., 135 F.3d 1472, 1477 (Fed. Cir. 1998). âIf any claim limitation is absent from the accused device, there is no literal infringement as a matter of law.â Bayer AG v. Elan Pharm. Research Corp., 212 F.3d 1241, 1247 (Fed. Cir. 2000). A product that does not literally infringe a patent claim may still infringe under the doctrine of equivalents if the differences between an individual limitation of the claimed invention and an element of the accused product are insubstantial. See WarnerâJenkinson Co. v. Hilton Davis Chem. Co., 520 U.S. 17, 24 (1997). The patent owner has the burden of proving infringement and must meet its burden by a preponderance of the evidence. See SmithKline Diagnostics, Inc. v. Helena Lab. Corp., 859 F.2d 878, 889 (Fed. Cir. 1988) (citations omitted). When an accused infringer moves for summary judgment of non-infringement, such relief may be granted only if at least one limitation of the claim in question does not read on an element of the accused product, either literally or under the doctrine of equivalents. See Chimie v. PPG Indus., Inc., 402 F.3d 1371, 1376 (Fed. Cir. 2005); see also TechSearch, L.L.C. v. Intel Corp., 286 F.3d 1360, 1369 (Fed. Cir. 2002) (âSummary judgment of noninfringement is . . . appropriate where the patent owner's proof is deficient in meeting an essential part of the legal standard for infringement, because such failure will render all other facts immaterial.â). Thus, summary judgment of non-infringement can only be granted if, after viewing the facts in the light most favorable to the non-movant, there is no genuine issue as to whether the accused product is covered by the claims (as construed by the court). See Pitney Bowes, Inc. v. Hewlettâ Packard Co., 182 F.3d 1298, 1304 (Fed. Cir. 1999). C. Obviousness A patent claim is invalid as obvious under 35 U.S.C. § 103 âif the differences between the claimed invention and the prior art are such that the claimed invention as a whole would have been obvious before the effective filing date of the claimed invention to a person having ordinary skill in the art to which the claimed invention pertains.â 35 U.S.C. § 103; see also KSR Intâl Co. v. Teleflex Inc., 550 U.S. 398, 406â07 (2007). âAs patents are presumed valid, a defendant bears the burden of proving invalidity by clear and convincing evidence.â Shire, LLC v. Amneal Pharms., LLC, 802 F.3d 1301, 1306 (Fed. Cir. 2015) (cleaned up). âUnder § 103, the scope and content of the prior art are to be determined; differences between the prior art and the claims at issue are to be ascertained; and the level of ordinary skill in the pertinent art resolved. Against this background, the obviousness or nonobviousness of the subject matter is determined.â KSR, 550 U.S. at 406 (citations and quotation marks omitted). A court is required to consider secondary considerations, or objective indicia of nonobviousness, before reaching an obviousness determination, as a âcheck against hindsight bias.â See In re Cyclobenzaprine Hydrochloride Extended-Release Capsule Patent Litig., 676 F.3d 1063, 1078â79 (Fed. Cir. 2012). âSuch secondary considerations as commercial success, long felt but unsolved needs, failure of others, etc., might be utilized to give light to the circumstances surrounding the origin of the subject matter sought to be patented.â Graham v. John Deere Co. of Kansas City, 383 U.S. 1, 17â18 (1966). D. Daubert Federal Rule of Evidence 702 sets out the requirements for expert witness testimony and states: A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if the proponent demonstrates to the court that it is more likely than not: (a) the expertâs scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue; (b) the testimony is based on sufficient facts or data; (c) the testimony is the product of reliable principles and methods; and (d) the expertâs opinion reflects a reliable application of the principles and methods to the facts of the case. FED. R. EVID. 702 (amended Dec. 1, 2023). The Third Circuit has explained: Rule 702 embodies a trilogy of restrictions on expert testimony: qualification, reliability and fit. Qualification refers to the requirement that the witness possess specialized expertise. We have interpreted this requirement liberally, holding that âa broad range of knowledge, skills, and training qualify an expert.â Secondly, the testimony must be reliable; it âmust be based on the âmethods and procedures of scienceâ rather than on âsubjective belief or unsupported speculationâ; the expert must have âgood groundsâ for his o[r] her belief. In sum, Daubert holds that an inquiry into the reliability of scientific evidence under Rule 702 requires a determination as to its scientific validity.â Finally, Rule 702 requires that the expert testimony must fit the issues in the case. In other words, the expertâs testimony must be relevant for the purposes of the case and must assist the trier of fact. The Supreme Court explained in Daubert that âRule 702âs âhelpfulnessâ standard requires a valid scientific connection to the pertinent inquiry as a precondition to admissibility.â By means of a so-called âDaubert hearing,â the district court acts as a gatekeeper, preventing opinion testimony that does not meet the requirements of qualification, reliability and fit from reaching the jury. See Daubert (âFaced with a proffer of expert scientific testimony, then, the trial judge must determine at the outset, pursuant to Rule 104(a) [of the Federal Rules of Evidence] whether the expert is proposing to testify to (1) scientific knowledge that (2) will assist the trier of fact to understand or determine a fact in issue.â). Schneider ex rel. Estate of Schneider v. Fried, 320 F.3d 396, 404â05 (3d Cir. 2003) (footnote and internal citations omitted).4 III. DISCUSSION A. Defendantâs Motions 1. Infringement Defendant seeks summary judgment of noninfringement on the basis that the accused products do not meet the m-regular limitation of the asserted claims. (D.I. 148 at 19). I believe that a genuine issue of material fact exists regarding whether the accused products meet this claim limitation. I deny the motion for summary judgment of noninfringement. 2. The AWS-Boeing Non-Assertion Clause Defendant argues that Plaintiff is barred from enforcing the asserted patents against VPC, EC2 and CloudFront because Boeing bargained away this right in 2010. (Id.). In October 2010, Defendant and Boeing entered into an âAWS Enterprise Customer Agreementâ (âthe 2010 Agreementâ). (D.I. 149-1, Ex. 3). The contract includes a non-assertion clause that reads: 7.6. Non-Assertion. During and after the term of the Agreement, Company will not assert, nor will Company authorize or assist any third party to assert, against AWS, its affiliates or any of their respective customers, vendors, business partners, or licensors, any patent infringement claim with respect to any Services that Company elects to use. 4 The Court of Appeals wrote under an earlier version of Rule 702. Subsequent amendments affect the substance of the rule, but I do not think they alter the applicability of the quoted discussion. (Id. § 7.6). âCompanyâ is defined in the contract as âThe Boeing Company.â (Id. at 1). âServicesâ is defined as â(a) any web services that AWS makes generally available during the term of this Agreement for which Company registers on the AWS Site or (b) any Premium Support.â (Id. § 1). Plaintiff does not dispute that any existing encumbrances traveled with the sale of the patents. (Hearing Tr. at 8:15â25). Plaintiff nevertheless raises several challenges to the enforceability of the non-assertion clause. a. Abandonment Plaintiff argues that Defendant abandoned the non-assertion clause in 2017 based on an announcement posted on Defendantâs website. (D.I. 161 at 2). This announcement states: The AWS Customer Agreement was updated on June 28, 2017. In this update we are improving the terms of the AWS Customer Agreement related to intellectual property rights. These changes include . . . removing the patent non-assert clause. AWS customers do not need to take any action to get the benefit of the updates to the online AWS Customer Agreement. (D.I. 161 at 2 (quoting D.I. 162-1, Ex. 3)). Plaintiff identifies several other items in the record as further evidence of abandonment. In 2019, Plaintiff sent a letter to Defendant (âthe 2019 Letterâ) with the subject line âNotice of Patents from Acceleration Bay.â (D.I. 149-1, Ex. 9, at 337 of 506; see infra Section III.A.3). Defendantâs response to this letter states, âAmazon takes these types of allegations seriously. We will review your allegations and get back to you when appropriate.â (D.I. 149-1, Ex. 10). Plaintiff maintains Defendantâs failure to assert it had a license confirmed Defendant had abandoned its license. In 2022, Defendant and Boeing entered an âAmended and Restated AWS Enterprise Agreementâ (âthe 2022 Amendmentâ), which amended and restated the 2010 Agreement as well as the two 2013 amendments and the 2018 amendment. (D.I. 162-1, Ex. 4). Plaintiff argues the 2022 Amendmentâs replacement of the non-assertion clause language with the word âRESERVEDâ serves as evidence of abandonment. (D.I. 161 at 3â4). Plaintiff further asserts this change should be considered a novation. (Id.). None of Plaintiffâs cited evidence supports a finding of abandonment. Defendantâs announcement that it removed the non-assertion clause in its âAWS Customer Agreementâ does not support an inference that Defendant abandoned the non-assertion clause in the âAWS Enterprise Customer Agreement,â an entirely different agreement, between Defendant and Boeing. Defendantâs response to the 2019 Letter does not indicate that Defendant took any position on whether it had a license; rather the response appears to be a generic corporate reply to allegations of infringement. The 2022 Amendment has an effective date of February 28, 2022 and states, âThe term of this Agreement will commence on the Effective Date.â (D.I. 162-1, Ex. 4, at 1; id. § 6.1). The contract language makes clear that the 2022 Amendment only governs going forward from February 28, 2022. Plaintiff identifies no language in the 2022 Amendment that suggests Boeing and Defendant intended the amendment to have a retroactive effect. There is no indication that Defendant and Boeing intended the 2022 Amendment to be a novation of Boeingâs obligations under the non-assertion clause. âNovation has been described as a mutual agreement among all parties concerned for discharge of a valid existing obligation by the substitution of a new, valid obligation on the part of the debtor or another.â Peterson Power Sys., Inc. v. Turner Logistics, LLC, 141 Wash. App. 1021, 2007 WL 3245259, at *4 (2007). âTo effect a novation there must be a clear and definite intention on the part of all concerned that novation is the purpose of the agreement, for it is a well settled principle that novation is never to be presumed.â Id. âTo find novation, a court requires clear and satisfactory proof of a clear and definite intention on the part of all concerned.â Id. (internal quotations and citations omitted). âA novation is simply a substitution.â Pabst v. Hardwick, 105 Wash. App. 1028, 2001 WL 293184, at *3 (2001) (citing MacPherson v. Franco, 34 Wash. 2d 179, 182 (1949)). âBetween the same parties, a novation substitutes a new obligation for an old one.â Id. âThe elements are: the necessary parties, a valid prior obligation to be displaced by the new obligation, consideration, and mutual agreement.â Id. The contract makes clear that the 2022 Amendment is effective going forward from February 28, 2022 and does not affect pre-existing obligations. Furthermore, for novation to occur, there must be âa valid prior obligation to be displaced by the new obligation.â Pabst, 105 Wash. App. 1028, 2001 WL 293184, at *3. While Boeing might have had prior obligations regarding patents it still owned as of the date of the 2022 Amendment, the asserted patents were sold to Plaintiff in 2014. Boeing had no valid prior obligation regarding the asserted patents under the non-assert clause. Plaintiff points to no case law that suggests that novation can alter obligations possessed by third parties not involved in the contractual relationship. Rather, Plaintiff appears to be a necessary party to a novation affecting its obligations regarding the asserted patents. For the stated reasons, I find no reasonable jury could have found the non-assertion clause was abandoned or was subject to novation. b. Lack of Consideration Plaintiff argues the non-assert clause is unenforceable due to lack of consideration. (D.I. 161 at 4). Plaintiff focuses on the fact that the âAWS Enterprise Customer Agreementâ is a âform agreementâ that offers no âspecial pricingâ in exchange for Boeingâs obligation not to assert its patents. (D.I. 161 at 5â6). Plaintiff is incorrect that Boeing received no consideration. Boeing gained, among other benefits, the right to access the Services provided by Defendant. (See D.I. 149-1, Ex. 3 § 2.1). To the extent that Plaintiff is asking that I find the rate paid under the 2010 Agreement should have been lower because of Boeingâs large patent portfolio, such an inquiry would be inappropriate. See Browning v. Johnson, 70 Wash. 2d 145, 147 (1967) (âWhere the consideration is legally sufficient, the courts are loath to inquire into its âadequacy,â that is, into the comparative value of the promises and acts exchanged.â). If Boeing thought it was not receiving adequate consideration, the company and its team of experienced lawyers had, and should have taken, the opportunity to negotiate the contract terms. c. Ambiguity Plaintiff argues the language of the non-assertion clause is ambiguous because there are two possible interpretations as to the scope of the infringing use covered. (D.I. 161 at 6; Hearing Tr. at 21:23â23:21). Plaintiff proposes an interpretation of the non-assertion clause that prohibits Boeing from âassert[ing] or assist[ing] others in asserting infringement claims that are based on Boeingâs own use of AWS services.â (D.I. 161 at 6). Whether a contract provision is ambiguous is a question of law. Stranberg v. Lasz, 115 Wash. App. 396, 402 (2003). âA provision is not ambiguous merely because the parties suggest opposing meanings.â Id. (citing Mayer v. Pierce County Med. Bureau, Inc., 80 Wash. App. 416, 420 (1995)). âIf a contract provision's meaning is uncertain or is subject to two or more reasonable interpretations after analyzing the language and considering extrinsic evidence (if appropriate), the provision is ambiguous.â Viking Bank v. Firgrove Commons 3, LLC, 183 Wash. App. 706, 713 (2014). There is a âhigh standard of clarity for exculpatory clauses: although such clauses are enforceable in commercial transactions, the law disfavors promises not to sue in the future.â United Emps. Ins. Co. v. Mentor, 1996 WL 509559, at *2 (Wash. Ct. App. Sept. 9, 1996). To assist in determining the meaning of contract language, Washington courts apply âthe context rule.â Id. (citing Berg v. Hudesman, 115 Wash. 2d 657, 666â69 (1990)). âThis rule allows examination of the context surrounding a contract's execution, including the consideration of extrinsic evidence to help understand the partiesâ intent.â Id. (citing Hearst Commc'ns, Inc. v. Seattle Times Co., 154 Wash. 2d 493, 502 (2005)). âWashington courts focus on objective manifestations of the contract rather than the subjective intent of the parties; thus, the subjective intent of the parties is generally irrelevant if the intent can be determined from the actual words used.â Brogan & Anensen LLC v. Lamphiear, 165 Wash. 2d 773, 776 (2009) (en banc) (citing Hearst, 154 Wash. 2d at 504). âExtrinsic evidence is to be used to determine the meaning of specific words and terms used and not to show an intention independent of the instrument or to vary, contradict or modify the written word.â Viking Bank, 183 Wash. App. at 713 (quoting Hearst, 154 Wash. 2d at 503) (cleaned up). âIf relevant for determining mutual intent, extrinsic evidence may include (1) the subject matter and objective of the contract, (2) all the circumstances surrounding the making of the contract, (3) the subsequent acts and conduct of the parties, and (4) the reasonableness of respective interpretations urged by the parties.â Hearst, 154 Wash. 2d at 502 (citing Berg, 115 Wash. 2d at 663). I find, even after accounting for the higher clarity standard for exculpatory clauses, that the language of the non-assertion clause is unambiguous with respect to the scope of the infringing use covered. Boeing agreed it will not âauthorize any third party to assert, against AWS . . . any patent infringement claim with respect to any Services that Company elects to use.â (D.I. 149-1, Ex. 3 § 7.6). The provisionâs language contains no hint that the clause contains an additional limitation specifying that the non-assertion clause only applies to patent infringement claims based on infringing use stemming from Boeingâs use of Defendantâs Services.5 Plaintiff fails to offer evidence that its interpretation is a reasonable interpretation of the contract language. In its briefing, Plaintiff focuses on the phrase âwith respect to any Services that Company elects to use.â (D.I. 161 at 6). A facial reading of this language shows that the phrase expresses a limitation about which Services are subject to the non-assertion clause. Beyond Plaintiffâs conclusory assertion, it does not explain how this phrase also includes the limitation that Boeing only promised not to assert or assist others in asserting infringement actions based on Boeingâs own use of AWS services. Plaintiffâs extrinsic evidence, which focuses on the circumstances of the contract, does not support its interpretation. Plaintiff asserts that both parties are large, sophisticated companies, that the agreement was a form agreement, and that the purpose of the agreement was to purchase cloud services, not to give a broad portfolio license to Boeingâs entire patent 5 Plaintiff cites two articles as evidence that the public criticized the âabusive nature and the serious ambiguitiesâ of a similar provision in a different set of Defendantâs contracts. (See D.I. 161 at 6 (citing D.I. 162-1, Exs. 1â2)). The articles provide no analysis regarding contract language. The single line which might suggest the non-assertion clause has multiple interpretations does not indicate which part of the clause is subject to multiple interpretations or what those multiple interpretations might be. (D.I. 162-1, Ex. 2 (âDepending on how a court interpreted the clause, this could have allowed AWS to expand into virtually any customerâs market without having to worry if it was violating patents, and prevent customers from asserting their patents against a hypothetical suit filed by AWS.â)). Furthermore, rather than asserting ambiguity, the article writer appears to be attempting to remain conservative in his assertions by not ruling out the possibility of a court finding a different reading. The author interprets the contract language as âappear[ing] to give AWS the right to deflect patent lawsuits filed by current and former customersâno matter the amount of services they had used during their business relationship with AWSâuntil the end of time.â (Id.). I do not rely upon the authorâs interpretation. portfolio. (Hearing Tr. at 20:24â24:14; D.I. 161 at 7â8). Plaintiff fails to explain how these circumstances show that the âspecific words and termsâ it has identified incorporates the limitation it suggests. Viking Bank, 183 Wash. App. at 713. Rather than suggesting that the extrinsic evidence supports its proposed interpretation, Plaintiffâs argument appears to be that the extrinsic evidence demonstrates that the parties intended the agreement to be generally ânarrowerâ than it is on its face.6 Based on the evidence in the record, no reasonable jury could find that Plaintiffâs proposed reading is a reasonable interpretation of the non-assertion clause language. I am furthermore unconvinced that the extrinsic evidence supports Plaintiffâs position that the parties had a mutual intent to pursue a ânarrowerâ contract beyond the limitations expressly stated in the contract. The âobjective manifestations of the contract,â the âactual words used,â suggest the partiesâ intent to limit the non-assertion clauseâs scope based on which Services Boeing used. See Brogan, 165 Wash. 2d at 776. Plaintiff argues that the definition of âServiceâ allows Defendant to unilaterally change the scope of the non-assertion clause by updating its website to change the web services covered by the contract. (D.I. 161 at 8). The non-assertion clauseâs scope and Defendantâs ability to alter the scope seem to be appropriately limited by Boeingâs choice to elect usage of Defendantâs Services. This limitation also appears to reasonably tie the non-assertion clause to the purpose of the contract by allowing Defendant to 6 For instance, one of Plaintiffâs repeated criticisms is that it would not make sense for Boeing to give Defendant license rights to its âtens of thousands of patents.â (Hearing Tr. at 20:24â24:12). Even under Plaintiffâs interpretation, however, for Boeingâs use of a particular service, Boeing would still be giving Defendant a license to its entire patent portfolio. Plaintiffâs arguments appear to be focused less on interpreting the contract language and more based on adequacy of the consideration or unconscionability. See Tadych v. Noble Ridge Constr., Inc., 200 Wash. 2d 635, 641 (2022) (âWe have defined substantive unconscionability as an unfairness of the terms or results.â (internal quotations omitted)). offer Services to Plaintiff in exchange for Plaintiff agreeing not to pursue patent infringement claims related to those Services. The partiesâ use of a form agreement similarly does not provide sufficient basis to discount the clear language of the contract. That the agreement was a form agreement did not stop the parties from altering their agreement multiple times since 2010. (See D.I. 162-1, Ex. 4; D.I. 179-1, Exs. 54â56). Boeing, a Fortune 500 company, had the ability to negotiate the contract terms if it so desired. I find the non-assertion clause is susceptible to only one reasonable interpretation. Hall v.Custom Craft Fixtures, Inc., 87 Wash. App. 1, 9 (1997) (â[S]ummary judgment is proper if the partiesâ written contract, viewed in light of the partiesâ other objective manifestations, has only one reasonable meaning.â). The clause is not limited to patent infringement claims based on infringing use resulting from Boeingâs own use of Defendantâs Services. d. Failure to Produce the 2022 Amendment Plaintiff argues Defendant should be precluded from relying on the 2010 Agreement because Defendant failed to produce the 2022 Amendment or any discovery relevant to abandonment.7 (D.I. 161 at 9). Plaintiff effectively seeks discovery sanctions at the summary judgment phase. Plaintiff should have made this request earlierâit is too late to do so now.8 7 I note that Plaintiff never filed a motion to strike; its position is only detailed in its answering brief to Defendantâs motion. 8 Plaintiff claims it became aware of the 2022 Amendment after receiving the summary judgment papers and because Plaintiffâs counsel also served as counsel for Boeing. (Hearing Tr. at 26:16â 25). Assuming that Plaintiffâs counsel could not have obtained these agreements earlier even with proper due diligence, that suggests Plaintiff found the 2022 Amendment, at the latest, by mid-June when it filed its answering brief. September 23rd, the date trial is scheduled to begin, was still three months away. Plaintiff could have, and should have, raised the discovery issue to the Court when there was still plenty of time to pursue any necessary remedial actions. Furthermore, I do not think Defendantâs nondisclosure of the 2022 Amendment was improper. Plaintiffâs request was for â[a]ll Documents, communications and things relating to Your defenses of . . . express or implied license . . . and other equitable defenses.â (D.I. 162-1, Ex. 6, at 73). As stated above, I agree that the 2022 Amendment, which was executed eight years after the patents were sold to Plaintiff, provides no support for abandonment of the non- assertion clause. Plaintiff has not demonstrated Defendant failed to properly respond to the production request. e. Usage of Defendantâs Services i. Relevant Usage Under the Non-Assertion Clause Plaintiff maintains that only usage of Defendantâs Services by Boeing, as opposed to usage by Boeing affiliates, triggers the non-assertion clause. (D.I. 161 at 12). The non-assertion clause bars infringement actions related to âany Services that Company elects to use.â (D.I. 149- 1, Ex. 3 § 7.6). Plaintiff argues that because âCompanyâ is defined as âThe Boeing Company,â rather than âThe Boeing Company and Boeing Affiliates,â only Boeingâs usage is relevant. (Hearing Tr. at 15:20â19:15, 36:13â37:2). On March 1, 2013, Plaintiff and Boeing executed âAmendment No. 1 to AWS Enterprise Customer Agreementâ (âthe March 2013 Amendmentâ) which added a new section to the 2010 Agreement: 2.6 Affiliates. Any Company Affiliate (as defined below) AWS Account covered under Exhibit 2.6 to this Agreement may use the Service Offerings under the terms of this Agreement. Company represents and warrants that it has the full power and authority to enter into this Agreement and legally bind each Company Affiliate to the terms of this Agreement. Each Company Affiliate will be deemed to have entered into a separate agreement with AWS under the same terms and conditions as this Agreement and, for purposes of this separate agreement (other than this Section 2.6 and Section 9.1(d)), will be considered âCompany.â If, at any time during the term of this Agreement, a Company Affiliate no longer meets the definition of âCompany Affiliateâ, that Company Affiliate and that Company Affiliateâs AWS accounts will no longer be covered under this Agreement (in the absence of any other agreement between the former Company Affiliate and AWS, any accounts of such former Company Affiliate will be governed by the AWS Customer Agreement). Company and each Company Affiliate will be joint and severally liable under this Agreement and the separate agreement between AWS and the Company Affiliate. For purposes of this Section 2.6, the defined term âCompany Affiliateâ means any entity that directly or indirectly controls, is controlled by or is under common control with Company.9 (D.I. 171-1, Ex. 54 § 1). Plaintiff maintains that âCompanyâ only covers Boeing affiliates for purposes of the âseparate agreements.â (D.I. 195 at 2 of 5). Plaintiff argues that Boeing therefore does not have any obligations under the non-assertion clause based on affiliate use. (Id.). Plaintiff also argues that, because Boeing was the owner of the asserted patents up until the sale to Plaintiff, the separate contracts had no impact on Boeingâs ability to enforce the asserted patents. (Id.). Defendant notes that the amendment (1) allows Boeing affiliates to use Defendantâs Services under the terms of the 2010 Agreement, (2) legally binds Boeing affiliates to the terms of the agreement, (3) states Boeing and Boeing affiliates are to be jointly and severally liable for 9 Plaintiff notes that Defendant did not identify the amendment as part of its license defense in its interrogatory responses. (D.I. 195 at 3 of 5). Plaintiff argues that, because of Defendantâs failure to identify the March 2013 Amendment in its interrogatory response, neither party conducted any discovery into the March 2013 Amendment. (Id.). Plaintiff also notes that Defendant did not cite to the March 2013 Amendment in its original briefing. (Id.). I do not agree that Defendantâs failure to cite to the amendment demonstrates that it âviewed [the March 2013 Amendment] as notable in not impacting its license defense.â (Id. (emphasis omitted)). The March 2013 Amendment appears to be relevant only as a response to Plaintiffâs rebuttal of the non-assertion clause defense. Defendant, in writing its opening brief or in drafting its interrogatory response, is not required to anticipate and preemptively respond to every single one of Plaintiffâs responsive arguments. The argument based on the March 2013 Amendment is not an âundisclosed groundâ for Defendantâs defense. In addition, Plaintiffâs answering brief addresses the issue in a rather cursory manner near the end of a section focused on whether Defendantâs proffered spreadsheets are admissible as business records. (See D.I. 161 at 11â12). I do not think it unfair to allow Defendant to rely on the March 2013 Amendment. In any event, I think consideration of the March 2013 Amendment imposes minimal prejudice on Plaintiff as it was previously produced to Plaintiff and the parties have been given an opportunity to present arguments through supplemental letter briefing. (See D.I. 191, 194, 195). both the 2010 Agreement and any separate agreement, and (4) that Exhibit 2.6 to the March 2013 Amendment provides for âCompany Affiliate AWS Accountsâ which are governed by the terms of the 2010 Agreement. (D.I. 194 at 1; see D.I. 171-1, Ex. 54 §§ 1â2; id. at Ex. 2.6). Defendant argues that this language demonstrates that the terms of the 2010 Agreement apply to both Boeing and Boeing affiliates. (D.I. 194 at 1). I believe the contract language is ambiguous. On its face, the contract language only defines âCompanyâ to refer to each Boeing affiliate for the purposes of the separate agreements. Several lines in Section 2.6 suggest, however, that Boeing and Defendant intended Boeing affiliates gain the benefits and obligations provided for under the 2010 Agreement. Neither party cites to any extrinsic evidence to support construing the 2013 Amendment. âInterpreting a contract provision is a question of law when ⊠the interpretation does not depend on the use of extrinsic evidence.â Spectrum Glass Co. v. Pub. Util. Dist. No. 1 of Snohomish Cnty., 129 Wash. App. 303, 311 (2005). I therefore take on the role of interpreting the contract terms. I agree with Plaintiffâs reading of the 2013 Amendment. Section 2.6 makes clear that that âCompanyâ refers to each Boeing affiliate for the purposes of the separate agreements. The provision is silent on alterations to the definition of âCompanyâ in the 2010 Agreement, suggesting the meaning of âCompanyâ in the 2010 Agreement was not modified to incorporate Boeing affiliates. Furthermore, the 2013 Amendment creates separate agreements to govern Defendantâs relationship with each Boeing affiliate âunder the same terms and conditions as this Agreement.â It therefore would be generally redundant for each Boeing affiliate also to qualify as part of âCompanyâ under the terms of the 2010 Agreement. The remainder of Section 2.6 can be reconciled with this reading. Boeing and Boeing affiliatesâ joint and several liability and Boeingâs representation that it can legally bind each affiliate merely serve to guarantee accountability under the contract. The 2013 Amendmentâs recognition of Company Affiliate AWS Accounts likewise does not indicate whether the 2010 Agreement or the separate agreements govern Defendantâs relationship with each Boeing affiliate. I do not think that Section 2.6âs statement that Boeing affiliates will be permitted to âuse the Service Offerings under the terms of this Agreementâ demonstrates that the Boeing affiliates fall within the definition of âCompanyâ in the 2010 Agreement. Rather, this sentence appears to describe the purpose of the newly added provision. That purpose is served through the recognition of the separate agreements between Boeing affiliates and Defendant which allow Boeing affiliates to use Defendantâs Services under the same terms set forth in the 2010 Agreement. I conclude that the meaning of âCompanyâ in the 2010 Agreement is not altered by the 2013 Amendment. It follows that the 2010 Agreementâs non-assertion clause does not bar infringement actions based on Boeing affiliatesâ uses of Defendantâs Services.10 Only Boeingâs own use of Defendantâs Services triggers the non-assertion clause. I note this conclusion is consistent with the lawâs wariness of exculpatory clauses. See Mentor, 1996 WL 509559, at *2. ii. Evidence Demonstrating Usage Defendant relies on spreadsheets, which purportedly summarize data pulled from its financial system, and testimony regarding those spreadsheets as its evidence to prove usage of 10 It appears undisputed that Boeing owned all asserted patents prior to the 2014 sale to Plaintiff. (See D.I. 148 at 4; D.I. 195 at 2 of 5). VPC, EC2, and CloudFront by Boeing in the relevant timeframe.11 (See D.I. 148 at 4 n. 8 (citing D.I. 149-1, Exs. 5â8)). Plaintiff argues that Defendant does not have admissible evidence to demonstrate usage because Defendantâs spreadsheets were âcreated solely for the purpose of this litigationâ and do not establish that Boeing, as opposed to Boeing affiliates, used Defendantâs Services.12 (D.I. 161 at 11â12). The parties do not dispute that Defendant has financial information that would be admissible pursuant to the business records exception. See FED. R. EVID. 803(6). They do dispute whether the spreadsheets qualify as business records or are otherwise admissible. (See id.; D.I. 170 at 2â3; Hearing Tr. at 6:20â8:15, 17:19â20:13). Defendant asserts that the 11 Defendant does not assert that Boeing used any of the other accused products. (D.I. 148 at 8). I agree with Defendant that the non-assertion clause would nevertheless also bar infringement claims against Lambda, EKS, GameLift, and Luna as they are accused of infringement based solely on their use of VPC. (See infra Section III.A.6.a). 12 At oral argument, Plaintiffâs counsel also argued that what Defendantâs records labelled as âVPCâ could be different from the âVPCâ accused of infringement because the technology evolved over time. (Hearing Tr. at 19:19â20:13). More specifically, he argued that âwhat Boeing was using in 2010, 2011 before the infringement even started, before the product was changed and began infringingâ is different from the accused âVPC.â (Id.). Defendantâs spreadsheets, however, include usage well past the alleged date of first infringement in 2011; such recorded usage would be of the âevolved VPCâ containing the allegedly infringing functionality. (See D.I. 149-1, Exs. 5â6; see D.I. 211-1, Sch. A ¶ 22, at 2 of 200 (noting, as a joint statement of admitted fact, that â[t]he hypothetical negotiation would have occurred in August 2011, which is the date Acceleration Bay contends AWSâs infringement beganâ)). Furthermore, Plaintiffâs counsel did not identify any evidence in the record supporting his assertion at oral argument, nor am I aware of any. Plaintiffâs answering and supplemental letter briefing did not raise this assertion and therefore also did not identify any supporting evidence. Plaintiffâs assertion that the accused âVPCâ is different from the âVPCâ in Defendantâs records appears to be mere attorney argument. See Invitrogen Corp. v. Clontech Lab'ys, Inc., 429 F.3d 1052, 1068 (Fed. Cir. 2005) (âUnsubstantiated attorney argument regarding the meaning of technical evidence is no substitute for competent, substantiated expert testimony.â); Glaverbel Societe Anonyme v. Northlake Mktg. & Supply, Inc., 45 F.3d 1550, 1562 (Fed. Cir. 1995) (âThere must be sufficient substance, other than attorney argument, to show that the issue requires trial.â). deposition testimony of Mr. Gasper, Defendantâs Finance Director, authenticates the spreadsheets as business records. (D.I. 170 at 2â3 (citing D.I. 171-1, Ex. 51); Hearing Tr. at 7:3â 15; see D.I. 149-1, Exs. 5â6). After reviewing the deposition testimony available in the record, I conclude that Defendant has not established the admissibility of the records at issue.13 In addition, I agree with Plaintiff that Defendant has not produced evidence that links the account IDs in Defendantâs spreadsheets to particular companies within the Boeing family. (D.I. 161 at 12; see D.I. 149-1, Exs. 5â6). I conclude a genuine dispute exists as to whether Defendant has demonstrated that Boeing, as opposed to one of its affiliates, used Defendantâs Services. For both of the reasons stated, I cannot find that Boeing used VPC, EC2, and CloudFront in the relevant timeframe. See Philbin v. Trans Union Corp., 101 F.3d 957, 961 n. 1 (3d Cir. 1996). (âCourts may only consider evidence âcapable of being admissible at trialâ in adjudicating a motion for summary judgment.â). I therefore cannot find that Plaintiff is barred from enforcing the asserted patents against VPC, EC2 and CloudFront by the 2010 Agreementâs non-assertion clause. 3. Relevant Damages Period Defendant maintains that Plaintiff should be limited to damages from July 6, 2022, the date that it filed its Complaint, onwards. (D.I. 148 at 11). Plaintiff submits it is entitled to damages starting from March 13, 2019 based on its sending Defendant the 2019 Letter. (D.I. 161 at 13; D.I. 149-1, Ex. 9, at 337 of 506). The parties dispute whether the 2019 Letter provides actual notice of Defendantâs alleged infringement. 13 My conclusion is based on the record before me at summary judgment. I express no opinion regarding the admissibility of the spreadsheets at trial. I expect to discuss this topic at the pretrial conference. â[T]he purpose of the actual notice requirement is met when the recipient is notified, with sufficient specificity, that the patent holder believes that the recipient of the notice may be an infringer.â SRI Int'l, Inc. v. Advanced Tech. Lab'ys, Inc., 127 F.3d 1462, 1470 (Fed. Cir. 1997). Actual notice âis satisfied when the recipient is informed of the identity of the patent and the activity that is believed to be an infringement, accompanied by a proposal to abate the infringement, whether by license or otherwise.â Id. âActual notice requires the affirmative communication of a specific charge of infringement by a specific accused product or device.â Amsted Indus. Inc. v. Buckeye Steel Castings Co., 24 F.3d 178, 187 (Fed. Cir. 1994). This standard does not require the patentee to make an âunqualified charge of infringement.â Gart v. Logitech, Inc., 254 F.3d 1334, 1345â46 (Fed. Cir. 2001). âIt is not controlling whether the patentee threatens suit, demands cessation of infringement, or offers a license under the patent.â SRI, 127 F.3d at 1470. âUnder this standard, general letters referring to the patent and including an admonishment not to infringe do not constitute actual noticeâ while âletters that specifically identify a product and offer a license for that product do constitute actual notice.â Minks v. Polaris Indus., Inc., 546 F.3d 1364, 1376 (Fed. Cir. 2008) (citing Amsted, 24 F.3d at 187; Gart, 254 F.3d at 1346). The 2019 letter reads: Our analysis of our patent portfolio and Amazon.com & Amazon Web Serviceâs CloudFront Content Delivery Network (CDN) indicates direct use of Acceleration Bay patented technologies. At minimum, Amazon requires a license to US 6,714,966 entitled Information Delivery Service and the other patented technologies in the table below [which is titled âPatents Infringed by Amazon, Amazon Web Services, AWS CloudFrontâ and which includes the â966, â147, â634, and â069 patents] . . . . . . . . According to http://aws.amazon.com/CloudFront: Amazon CloudFront is a fast content delivery network (CDN) service that securely delivers data, videos, applications, and APIs to customers globally with low latency, high transfer speeds, all within a developer-friendly environment. CloudFront is integrated with AWS â both physical locations that are directly connected to the AWS global infrastructure, as well as other AWS services. _ anne - > = =; ifs i iis â iis â = = â = = Furthermore, Amazon operates the Amazon CloudFront Global Edge Network to deliver content to end users with lower latency, Amazon CloudFront uses a global network of 166 Points of Presence (155 Edge Locations and 11 Regional Edge Caches) in 65 cities across 29 countries. We believe Amazonâs CloudFront Content Networks Delivery services are utilizing Acceleration Bayâs patented technologies. We look forward to your working with Amazon on a business solution, and we thank you in advance for your prompt attention to this matter. (D.I. 149-1, Ex. 9, at 337-339 of 506). It appears undisputed that the letter does not identify the °344 patent. (See D.I. 148 at 11; D.I. 161 at 13-16). a. Accused Products Defendant argues the 2019 Letter fails to identify specific accused products aside from CloudFront. (D.I. 148 at 11). Plaintiff claims the 2019 Letter âmakes clear that AWSâ 24 infringement goes beyond CloudFront, referencing AWS as a whole, including through its integration âwith AWSâboth physical locations that are directly connected to the AWS global infrastructure, as well as other AWS services.ââ (D.I. 161 at 13 (quoting D.I. 149-1, Ex. 9 at 338 of 506)). Plaintiff points to the letter âlisting the family of Asserted Patents as âinfringed by Amazon, Amazon Web Services, [and] AWS CloudFrontâ and to the diagram of CloudFront, which it argues âidentifies the underlying structure supporting CloudFrontâs content delivery,â as providing notice that it was accusing the VPC products. (D.I. 161 at 14). Plaintiffâs position that it can accuse products by âreferencing AWS as a wholeâ would render the requirement to identify âspecific accused productsâ meaningless. Furthermore, no reasonable jury could find that Plaintiff has identified VPC as an accused product. VPC is only mentioned, in barely legible font,14 in the diagram that functions as part of Plaintiffâs recitation of CloudFrontâs functionality and its importance within Defendantâs ecosystem of products. In contrast to the letterâs repeated insistence that CloudFront utilizes Plaintiffâs patented technologies, there is no indication that CloudFrontâs underlying infrastructure or VPC are also independently accused of infringement. Plaintiffâs argument appears to be based on the position that â[w]hen an Amazon engineer looks at that diagram, they know that thatâs talking about VPC Peering.â (Hearing Tr. at 73:19â21). Plaintiffâs position runs afoul of established case law.15 âIt is irrelevant . . . whether the defendant knew of the patent or knew of his own infringement.â Amsted, 24 F.3d at 187. âThe correct approach to determining notice under section 287 must focus on the action of 14 I cannot accurately reproduce the degree of legibility. 15 Plaintiffâs assumption that an Amazon engineer would have understood that VPC (and Transit Gateway) were being accused based on the diagram also seems dubious. the patentee, not the knowledge or understanding of the infringer.â Id.; see also Gart v. Logitech, Inc., 254 F.3d 1334, 1346 (Fed. Cir. 2001) (â[W]hether or not the alleged infringer subjectively believed that the patentee's letter was a charge of infringement has no bearing on the adequacy of notice.â). Plaintiffâs failure to properly identify accused products cannot be salvaged by what it claims Defendantâs engineers would have understood from a diagram in the letter. The 2019 Letter fails to identify VPC as a specific accused product and fails to affirmatively communicate a specific charge of infringement against VPC. Plaintiff argues the letter identifies Transit Gateway because âTransit Gateway is an additional way to connect VPCs.â (Hearing Tr. at 75:4â18). This claimed identification of Transit Gateway is even more attenuated than that of VPC. The connection is made even weaker by the fact that Plaintiff does not allege that CloudFront infringes through the use of Transit Gateway. (See D.I. 149-1, Ex. 1 at 3). The 2019 Letter fails to name Transit Gateway as an accused product and fails to affirmatively communicate a specific charge of infringement against Transit Gateway. b. Specific Charge of Infringement Defendant maintains the 2019 Letter did not make any specific charge of infringement against CloudFront. (D.I. 148 at 13). I start by addressing Defendantâs argument that Plaintiff is estopped from arguing that the 2019 Letter makes a specific charge of infringement. (Id. at 14). As a result of receiving a similar letter from Plaintiff, Epic Games filed an action seeking declaratory judgment of noninfringement. (See D.I. 149-2, Ex. 27; Epic Games, Inc. v. Acceleration Bay LLC, No. 19- cv-4133 (N.D. Cal.)). Plaintiff moved to dismiss, arguing that its letters were âsuperficial communicationsâ that did not explain âwhat claims Epic allegedly infringes, or which patents or claims are supposedly infringed by each of the games named in the letters.â (D.I. 149-2, Ex. 28 at 6). Defendant argues that Plaintiff should be estopped from taking the opposing position with respect to the 2019 Letter. (D.I. 148 at 14). Defendantâs arguments fail as a matter of law because the court in Epic Games declined to dismiss the case. (See D.I. 149-2, Ex. 29; G-I Holdings, Inc. v. Reliance Ins. Co., 586 F.3d 247, 262 (3d Cir. 2009) (â[I]n our Circuit judicial estoppel is generally not appropriate where the defending party did not convince the District Court to accept its earlier position.â)). The 2019 Letter claims that CloudFront uses Plaintiffâs patented technologies, includes a table listing âPatents Infringed by . . . CloudFront,â and states that âAmazon requires a licenseâ to the patents listed in that table. The letter provides sufficient notice that CloudFront faces accusations of infringement. For the reasons stated, I find the 2019 Letter provides actual notice of infringement of the â966, â147, â634, and â069 patents by CloudFront. The 2019 Letter fails to provide actual notice of infringement by the other accused products and for infringement of the â344 patent. Where actual notice was not given, Plaintiff is limited to seeking damages from July 6, 2022 onwards. 4. Willful Infringement Defendant moves for summary judgment of no willful infringement. âA finding of willful infringement requires knowledge of both the patent and its infringement of the patent.â Intuitive Surgical, Inc. v. Auris Health, Inc., 549 F. Supp. 3d 362, 377â78 (D. Del. 2021). A determination of willfulness requires a finding of âdeliberate or intentionalâ infringement. SRI Int'l, Inc. v. Cisco Sys., Inc., 14 F.4th 1323, 1330 (Fed. Cir. 2021), cert. denied, 142 S.Ct. 2732 (2022); Eko Brands, LLC v. Adrian Rivera Maynez Enters., Inc., 946 F.3d 1367, 1378 (Fed. Cir. 2020). A finding of âsubjective willfulness,â proof that the defendant acted in the face of a risk of infringement that was âeither known or so obvious that it should have been known to the accused infringer,â can satisfy this standard. WesternGeco LLC v. ION Geophysical Corp., 837 F.3d 1358, 1362 (Fed. Cir. 2016) (quoting Halo Elecs. Inc. v. Pulse Elecs., Inc., 579 U.S. 93, 101 (2016)) (internal quotations omitted), rev'd on other grounds, 585 U.S. 407 (2018). Plaintiffâs willful infringement claim relies on the 2019 Letter. (See D.I. 161 at 18). Given my findings on the notice provided by the 2019 Letter, I grant summary judgment of no willful infringement as to the non-CloudFront products and for the â344 patent. The 2019 Letter provides actual notice of infringement of the other four patents by CloudFront. Viewing the 2019 Letter and the other evidence in the light most favorable to Plaintiff, as I must, I believe a triable issue as to willfulness exists. I deny Defendantâs motion with respect to CloudFrontâs infringement of theâ966, â147, â634, and â069 patents. 5. BigMac and HyperPlane Damages Theories Plaintiff accuses VPC of infringement based on âVPC Peering,â a feature that enables connections between VPCs, and based on âBigMac,â an underlying network service. (See D.I. 161 at 20; D.I. 149-1, Exs. 12, 15). Plaintiff accuses Transit Gateway of infringement based on âHyperPlane,â an underlying network service.16 (See D.I. 161 at 20; D.I. 149-1, Ex. 21). Defendant seeks to preclude Plaintiff from presenting damages theories based on BigMac or HyperPlane (but not VPC Peering) on the basis that Plaintiffâs apportionment expert, Dr. 16 In its supplemental letter briefing, Plaintiff asserts that HyperPlane is a different name for Transit Gateway. (D.I. 192 at 2â3 of 4). As Plaintiff and Defendant both described HyperPlane as intertwined but separate services in the original briefing, I will treat them as such. (See D.I. 148 at 7; D.I. 151 at 5â6; D.I. 161 at 20, 27â30; D.I. 170 at 12; see also D.I. 193 at 2). This distinction ultimately does not affect my conclusion. Cole, did not apportion the value of BigMac or HyperPlane from VPC and Transit Gateway respectively. (D.I. 148 at 29). Defendant notes that, during his deposition, Dr. Cole testified that he did not attempt to isolate the value of Big Mac or HyperPlane. (Id. (citing D.I. 149-1, Ex. 39 at 176:15â18, 213:16â21)). Plaintiff argues that Dr. Cole did apportion damages based on the functionality of the infringing technologies. (D.I. 161 at 30). Plaintiff maintains that Dr. Cole identified these infringing functionalities based on Dr. MedvidoviÄâs analysis of BigMac and HyperPlane. (Id. at 30â31). âWhere multi-component products are involved, the governing rule is that the ultimate combination of royalty base and royalty rate must reflect the value attributable to the infringing features of the product, and no more.â Ericsson, Inc. v. D-Link Sys., Inc., 773 F.3d 1201, 1226 (Fed. Cir. 2014) (citing VirnetX, Inc. v. Cisco Systems, Inc., 767 F.3d 1308, 1326 (Fed. Cir. 2014)). âWhen the accused infringing products have both patented and unpatented features, measuring this value requires a determination of the value added by such features.â Id. While Plaintiffâs position regarding Hyperplane is difficult to pin down, I understand Plaintiffâs position to be that all the accused functionality for Transit Gateway is attributable, in its entirety, to HyperPlane. (See D.I. 161 at 30â31; D.I. 192 at 2â3 of 4). This position appears consistent with Dr. MedvidoviÄâs analysis of the accused features. (D.I. 162-1, Ex. 18 ¶¶ 201â07 (naming âHyperPlane Top-Top Forwarding,â âMulticast on HyperPlane,â and âHyperPlaneâs Health Layerâ as the accused features)). It follows that Dr. Coleâs reliance on Dr. MedvidoviÄâs opinion inherently apportions HyperPlane features from other Transit Gateway features. (See D.I. 149-2, Ex. 43 ¶¶ 163â74 (listing âRouting,â âMulticast,â and âNetwork Monitoring and Health Managementâ as the infringing functionality categories)). I conclude that Plaintiff has disclosed a damages theory that apportions for the value of HyperPlane. In regard to VPC, Plaintiff stated that âthe value of the four [infringing] functions identified by Dr. Cole comes from both VPC Peering and BigMac.â17 (D.I. 192 at 3 of 4). Dr. Coleâs identification of infringing functions therefore does not inherently separate BigMac features from other VPC features. Dr. Cole testified that he did not independently isolate BigMacâs value from the rest of VPC. (D.I. 149-1, Ex. 39 at 176:15â18). Plaintiff does not argue otherwise and does not identify any other point at which such apportionment might have occurred. I find that Plaintiffâs damages theory does not apportion for the value of BigMac. This conclusion does not mean that Plaintiffâs VPC damages theory, to the extent that it involves BigMac, should necessarily be excluded. As Plaintiff claims the infringing functionality is entirely attributable to VPC Peering and BigMac (and Defendant does not suggest otherwise in its briefing), the apportionment principle is still satisfied if VPC is found to infringe based on both VPC Peering and BigMac. Thus, preclusion is only proper in the scenario where one, but not the other, of these services is found to be a basis for infringement. The matter of how the partiesâ arguments and witness testimony should be presented to a jury should be a topic for later discussion. 6. Mr. Gundersonâs Damages Opinion a. Revenue of non-VPC and non-Transit Gateway Products Defendant seeks to exclude Mr. Gundersonâs damages calculations for CloudFront, Lambda, EC2, EKS, and GameLift for relying on revenue unrelated to infringement. 17 Defendant contends that Plaintiffâs assertion âthat the value of each function is âsimultaneouslyâ attributable to both VPC and BigMacâ is a new theory first disclosed in its supplemental letter briefing and unsupported by its expertsâ reports. (D.I. 193 at 1). Defendant argues that Plaintiffâs experts should not be permitted to present this theory at trial. (Id.). While Defendant can reraise this issue at an appropriate time, I decline to address it now as it does not affect my conclusion regarding the motion at hand. I also believe additional information and argument from the parties on the matter would be helpful. Defendant tracks both âexternal revenueâ and âinternal revenueâ generated by its products. External revenue comes from external users of Defendantâs products. (Hearing Tr. at 112:5â114:12). Internal revenue is tracked, as a matter of accounting practice, based on the internal usage of VPC and Transit Gateway by Defendantâs products and the products of its affiliates, such as Amazon. (Id.). Defendant argues that Mr. Gunderson, by relying on the external revenue of CloudFront, Lambda, EC2, EKS, and GameLift, fails to limit his damages calculation to those productsâ infringement through their internal use of VPC and/or Transit Gateway, which is already tracked through the internal revenue of VPC and Transit Gateway.18 (D.I. 148 at 36). The partiesâ dispute has little to do with Mr. Gundersonâs analysis and instead centers on a disagreement over the infringement theories Plaintiff has timely disclosed. The parties agree that Plaintiff has alleged infringement based on Defendantâs VPC and Transit Gateway products. (See id.; D.I. 161 at 36). Defendant maintains that Dr. MedvidoviÄâs opening report limited his allegations against CloudFront, Lambda, EC2, EKS, and GameLift to infringement through their use of VPC and/or Transit Gateway. (D.I. 148 at 36). Plaintiff maintains Dr. MedvidoviÄ opined that these five products infringe both through their use of VPC and/or Transit Gateway and based on independent functionality. (D.I. 161 at 36). I agree with Defendant that Dr. MedvidoviÄ first alleges independent infringement by CloudFront, Lambda, EC2, EKS, and GameLift in his reply report. (See D.I. 162-1, Ex. 39 ¶¶ 200â212). While Dr. MedvidoviÄâs reply report cites back to sections of his opening report, the 18 The parties initially framed this issue as one of double counting of damages. (See Hearing Tr. at 114:15â124:14). This dispute appears to go beyond double counting to encompass whether Mr. Gunderson calculates damages for functionality that falls outside Plaintiffâs infringement theory. (See id. at 124:15â126:16). Regardless, these issues deal with the same underlying disagreement over Dr. MedvidoviÄâs disclosed infringement theories. paragraphs cited do not disclose a theory of independent infringement. Plaintiffâs counsel identified paragraph 195 of Dr. MedvidoviÄâs opening report as a representative example. (Hearing Tr. at 129:15â130:4 (arguing that paragraph 195 shows âGameLiftâs infringement goes beyond this internal use of VPC. GameLift provides infringing âgaming application services and broadcast channels for gaming applications.ââ)). The relevant portion of paragraph 195 reads: As another example, GameLift also uses VPCs peering directly and to provide gaming application services and broadcast channels for gaming applications. AB- AWS_011654-973 at 11814-818 (explaining, inter alia, that GameLift can âuse [VPC] peering connections to enable [customer] game services to communicate directly and privately with [the customerâs] other AWS resourcesâ); Byskal Tr. at 17:4-17:16 (âGameLift will create â for every deployment . . . what we call . . . a VPCâ). (D.I. 162-1, Ex. 18 ¶ 195 (alterations in original)). This sentence does not show that Dr. MedvidoviÄ opined that GameLift has non-VPC related functionality that allows it to âprovide gaming application services and broadcast channels for gaming applications.â Rather, Dr. MedvidoviÄ opines that GameLift uses VPC Peering directly, but also uses VPC Peering to provide the other described services. That the referenced functionality is a product of VPC Peering is confirmed by the citation parentheticals. Plaintiffâs position is further undermined by its infringement contentions which only describe the accused products as infringing through the use of VPC and/or Transit Gateway. (D.I. 149-1, Ex. 1 at 3). The only infringement theories that Dr. MedvidoviÄ disclosed in his opening report, and that Plaintiff will be permitted to rely on at trial, are those based on use of VPC and/or Transit Gateway. See HSM Portfolio LLC v. Elpida Mem., Inc., 2016 WL 552543, at *2 (D. Del. Feb. 11, 2016) (âPlaintiffs should not be permitted to advance a new infringement theory in their reply report.â (citing Fed. R. Civ. P. 26(a)(2)(D)(ii); MobileMedia Ideas, LLC v. Apple, Inc., 2012 WL 6019305, at *1 (D. Del. Dec. 3, 2012))). Plaintiff raises no other arguments in response to Defendantâs challenge to Mr. Gundersonâs damages theory. I will exclude Mr. Gundersonâs opinion to the extent that it relies on the external revenues of CloudFront, Lambda, EC2, EKS, or GameLift. b. Reliance on Jury Verdict Mr. Gunderson issued a supplemental report which discusses the damages awarded in a recent trial between Plaintiff and a different defendant. (See D.I. 149-2, Ex. 49; Acceleration Bay LLC v. Activision Blizzard Inc., C.A. No. 16-453, D.I. 858 (D. Del. May 3, 2024)). Defendant moves to exclude Mr. Gundersonâs report on the basis that its reliance on this jury verdict was improper. (D.I. 148 at 39). For the reasons stated at oral argument, I agree that Mr. Gundersonâs supplemental report should be excluded, as the probative value of the recent jury verdict, if any, is substantially outweighed by the risk of unfair prejudice. (Hearing Tr. at 110:10â11:3). 7. Dr. Coleâs Apportionment Opinion Defendant moves to exclude the opinion of Plaintiffâs apportionment expert, Dr. Cole. Defendant argues that Dr. Cole based his opinions on accused productsâ features that existed only after the end of the damages period and that Dr. Cole failed to apply his own stated methodology. Dr. Cole relied on documentation from Defendantâs website to determine the features that were present in the accused products. (D.I. 148 at 30; D.I. 161 at 33; D.I. 149-2, Ex. 39 at 185:4â7). Defendant argues that Dr. Cole relied on document versions that existed after the damages period ended in 2022. (D.I. 148 at 30â31). Plaintiff does not dispute Dr. Coleâs reliance on such documents. (D.I. 161 at 33). Plaintiff instead maintains that there were no relevant changes in functionality after the damages period expired, noting that Dr. Cole testified that he saw no evidence of material changes in functionality based on his review of the record, including technical documents, deposition testimony, and source code. (Id. (citing D.I. 162-1, Ex. 25 at 188:5â14, 333:9â18)). The primary debate appears to be over an underlying factual dispute about whether certain features existed during the relevant damages period.19 I believe the proper path forward is for the parties to present the factual dispute to the jury and allow for Defendant to cross examine Dr. Cole on his âassumption.â See Thomson Reuters Enter. Ctr. GmbH v. Ross Intel. Inc., 2023 WL 6316418, at *2 (D. Del. Sept. 28, 2023) (â[Q]uestions regarding the factual underpinnings of the expert witnessâs opinion affect the weight and credibility of the witness's assessment, not its admissibility.â (quoting Bresler v. Wilmington Tr. Co., 855 F.3d 178, 195 (4th Cir. 2017))). Defendant argues that Dr. Cole inconsistently applied his own stated methodology. (D.I. 148 at 34). Dr. Cole states in his report, âIn determining the relative importance of the functions of the Accused Products, I took into account [seven] technical considerations.â (D.I. 149-2 ¶ 131). Defendantâs critique appears to be twofold: (1) that he did not address several of these factors, and (2) that he does not have sufficient factual support for his opinions. (See D.I. 148 at 34; D.I. 170 at 17). Defendant focuses on Dr. Coleâs factors 1, 2, and 6: (1) whether the function is standard in the industry; (2) the cost to develop a particular function; and (6) whether a feature drives consumer demand. (D.I. 148 at 34; D.I. 170 at 17; see D.I. 149-2 ¶ 131). As an initial matter, Dr. Coleâs list of factors does not appear to represent a set of factors that he believes must be discussed with respect to every allegedly infringing functionality. For 19 Defendantâs reply brief âconfirms the feature lists on its website changed during the damages period,â pointing to the EKS and VPC webpages as examples. (D.I. 170 at 16 (citing D.I. 171-2, Exs. 61, 66)). Defendantâs opening brief did not identify any functionality changes. (D.I. 161 at 33 (citing D.I. 162-1, Ex. 25 at 332:19â333:8)). This issue was not discussed at the oral argument and Plaintiff never had an opportunity to address this argument. instance, his discussion of some functions is limited to a single paragraph. (See, e.g., D.I. 149-2, Ex. 43 ¶ 154). I understand that Defendantâs criticism is not that Dr. Cole should have discussed every factor for each functionality, but rather that some factors are not discussed in relation to any of the accused functionality. Contrary to Defendantâs assertion, Dr. Cole does appear to discuss factors 1 and 6 to some degree.20 (See, e.g., D.I. 149-2, Ex. 43 ¶¶ 154, 159). Dr. Cole fails to discuss the second factor, but I am not convinced this necessitates exclusion of his opinions. To be clear, Dr. Cole will not be permitted to provide testimony that goes beyond his expert report and Defendant can cross-examine him on his failure to discuss certain factors. However, the failure to discuss one factor that he lists among the relevant set of factors considered does not undermine Dr. Coleâs overall methodology, which involved a review of the source code, specification documents, deposition testimony, and other materials (id. ¶¶ 123â134), and whether that methodology was reliably applied. Defendant argues Dr. Coleâs opinions are not based on sufficient facts or data, noting that he did not review customer services or speak with users to analyze factor 6 or review any documents regarding Defendantâs competitor products to analyze factor 1. (D.I. 148 at 34; D.I. 170 at 17). I agree with Plaintiff that Dr. Coleâs âtechnical expertise and industry experience in developing, marketing, and valuing productsâ appears sufficient to support his opinions. (D.I. 149-2, Ex. 43 ¶¶ 123). I am not convinced that it was necessary for Dr. Cole, in order to provide helpful and reliable opinions on these factors, to consider the particular types of data and evidence suggested by Defendant. 20 The parties appear to agree that paragraphs 141â59 of Dr. Coleâs opening report are representative of his analysis. (See D.I. 161 at 34; D.I. 170 at 17). Defendant raises arguments regarding Dr. Coleâs attribution of value for products that rely on other allegedly infringing products. (D.I. 148 at 35â36). Given my determination of the infringement theories Dr. MedvidoviÄ has disclosed and my disposition of Defendantâs motion to exclude Mr. Gundersonâs damages opinion, I understand these arguments now to be moot. For the stated reasons, I will not exclude Dr. Coleâs apportionment opinion. B. Plaintiffâs Motions 1. Infringement Plaintiff maintains it is entitled to partial summary judgment of infringement regarding whether Defendantâs Transit Gateway product satisfies the m-regular and incomplete limitations of the asserted claims. (D.I. 151 at 2). I believe a genuine dispute exists regarding whether the accused products meet these claim limitations. I deny the motion for partial summary judgment of infringement. 2. Invalidity a. Anticipation Plaintiff moves for summary judgment of no anticipation. (D.I. 151 at 13). As Defendant has now dropped its anticipation defense (D.I. 159 at 18 n. 84), I grant Plaintiffâs motion. b. Inherency The opinion of Defendantâs invalidity expert, Mr. Greene, repeatedly states that, to the extent any limitation of the asserted claims is not explicitly disclosed, it is inherently disclosed. (See generally D.I. 152-1, Ex. 15â20; D.I. 152-2, Ex. 21â24). Plaintiff argues Mr. Greeneâs opinion is conclusory and unsupported and should be excluded. (D.I. 151 at 15â17). As stated at oral argument, I agree that Mr. Greeneâs expert report does not contain sufficient disclosure to support an inherency theory. (Hearing Tr. at 46:25â48:19). Mr. Greene will not be permitted to testify at trial on inherent disclosure of any of the claim elements. c. Obviousness Plaintiff maintains that Mr. Greeneâs obviousness opinion should be excluded as unreliable and that, as a result, it is entitled to summary judgment of no obviousness. Plaintiff argues Mr. Greene failed to explain why a person of ordinary skill in the art (âPOSAâ) would have been motivated to combine the asserted prior art references. (D.I. 151 at 17â22). â[O]bviousness concerns whether a skilled artisan not only could have made but would have been motivated to make the combinations or modifications of prior art to arrive at the claimed invention.â Belden Inc. v. Berk-Tek LLC, 805 F.3d 1064, 1073 (Fed. Cir. 2015). Defendant agrees that paragraph 149 of Mr. Greeneâs report was ârepresentative of all the motivation to combine analysis that Mr. Greene has.â (Hearing Tr. at 50:3â23). This paragraph reads: As those charts show, ATT Maxemchuk builds upon â882 Maxemchuk and informs a POSITA of additional details related to â882 Maxemchukâs grid-based mesh network. A POSITA would be motivated to combine these references for several reasons. Both references are in the network architecture field and are directed to improving mesh networks. Both teach the simplification of routing of data that arises from the grid-based mesh network. And both disclose the same grid-based mesh network. In addition, ATT Maxemchuk includes additional implementation details for the grid-based mesh network that â882 Maxemchuk describes. (D.I. 152-1, Ex. 14 ¶ 149). Mr. Greene âfails to explain why a person of ordinary skill in the art would have combined elements from specific references in the way the claimed invention does.â ActiveVideo Networks, Inc. v. Verizon Commc'ns, Inc., 694 F.3d 1312, 1328 (Fed. Cir. 2012) (citing KSR, 550 U.S. at 418). His opinion does nothing more than explain why the prior art references are analogous to each other and to the claimed invention. See Comaper Corp. v. Antec, Inc., 596 F.3d 1343, 1351 (Fed. Cir. 2010) (âTwo criteria are relevant in determining whether prior art is analogous: â(1) whether the art is from the same field of endeavor, regardless of the problem addressed, and (2) if the reference is not within the field of the inventor's endeavor, whether the reference still is reasonably pertinent to the particular problem with which the inventor is involved.ââ (quoting In re Clay, 966 F.2d 656, 658â59 (Fed. Cir. 1992))); In re GPAC Inc., 57 F.3d 1573, 1577â78 (Fed. Cir. 1995) (â[T]he prior art relevant to an obviousness determination necessarily encompasses not only the field of the inventor's endeavor but also any analogous arts.â). Plaintiffâs âassertions that the references were analogous art, . . . without more, is an insufficient articulation for motivation to combine.â21 Sisvel Int'l S.A. v. Sierra Wireless, Inc., 82 F.4th 1355, 1364 (Fed. Cir. 2023). As Defendantâs invalidity contentions rely on Mr. Greeneâs testimony, Mr. Greeneâs failure to opine on a POSAâs motivation to combine the asserted prior art references proves fatal to Defendantâs obviousness theory. I grant summary judgment of nonobviousness as to all asserted obviousness defenses. 21 Despite indicating paragraph 149âs representativeness, Defendant maintains that other paragraphs of Mr. Greeneâs report, such as paragraph 151, and claim charts cited in the report âgo beyondâ paragraph 149. (Hearing Tr. at 51:22â54:9 (referencing D.I. 152-1, Ex. 14 ¶¶ 139â 70; D.I. 152â1, Ex. 15â20; D.I. 152-2, Ex. 21â24)). These paragraphs add nothing in terms of demonstrating motivation to combine. The paragraphs that come closest to discussing motivation to combine refer to âcommon problems and challenges addressed by the referencesâ or âimprovement[s] described in one of these references [that] can be readily applied to the operation of another referenceâs description.â (D.I. 152-1, Ex. 14 ¶¶ 141â43). These generic and unspecified motivations are insufficient. See Intel Corp. v. Qualcomm Inc., 21 F.4th 784, 797 (Fed. Cir. 2021) (noting that motivations to combine are legally insufficient where they are asserted in a generic, conclusory manner). The claim charts, which do little more than identify relevant portions of each prior art reference, likewise do not describe any motivation to combine the references. (See D.I. 152â1, Ex. 15â20; D.I. 152-2, Ex. 21â24). 3. Ms. Sultanikâs and Ms. Kindlerâs Non-Infringing Alternatives Opinions Plaintiff moves to exclude the opinions of Defendantâs experts, Ms. Sultanik and Ms. Kindler, on non-infringing alternatives (âNIAsâ). Plaintiffâs primary critique of Ms. Sultanikâs opinion is that she does not provide any independent opinion on NIAs as her expert report is nearly a word-for-word copy of Defendantâs November 2023 interrogatory response.22 (D.I. 151 at 22; Hearing Tr. at 82:18â86:9; Compare D.I. 152-1, Ex. 10 ¶¶ 715â24 with D.I. 152-2, Ex. 27 at 23â27). Defendant contends Ms. Sultanikâs reliance on the interrogatory response was not improper because the response was prepared with the assistance of Mr. MacCĂĄrthaigh, Defendantâs Rule 30(b)(6) witness on NIAs. (D.I. 159 at 27â28). Defendant argues Plaintiffâs failure to question him about the topic at his deposition was its own fault. (Id. at 28; Hearing Tr. at 86:16â88:19). Plaintiff argues that they did not depose Mr. MacCĂĄrthaigh about NIAs because he was not identified in Defendantâs interrogatory response as a person knowledgeable about NIAs. (D.I. 172 at 13; Hearing Tr. at 83:2â85:9). At oral argument, I granted Plaintiff the opportunity to take an additional deposition of Mr. MacCĂĄrthaigh regarding the topic of NIAs. (Hearing Tr. at 87:23â99:21). This deposition23 should, in theory, resolve the dispute between the parties regarding the factual basis upon which 22 While Plaintiff focused on questioning whether Ms. Sultanikâs opinions were her own at oral argument, Plaintiffâs briefing also includes several arguments attacking Ms. Sultanikâs analysis as conclusory. (See D.I. 151 at 23â26). Setting aside the issue of the independence of Ms. Sultanikâs analysis, the report presents a substantial amount of discussion to support Ms. Sultanikâs conclusions. (See D.I. 152-1, Ex. 10 ¶¶ 715â24). Any gaps appear to be of the type that a POSA would reasonably be able to fill in based on their âown experience coding and revising code.â (Id. ¶ 717). To the extent that Plaintiff was confused about Ms. Sultanikâs reasoning regarding particular conclusions, it could have raised these questions at her deposition. 23 The docket does not yet reflect any notice of deposition of Mr. MacCĂĄrthaigh. Defendantâs experts formed their opinions. I deny the motion to exclude Ms. Sultanikâs NIA opinion, but grant Plaintiff leave to raise the issue again in the event that Mr. MacCĂĄrthaighâs testimony substantially deviates from Defendantâs interrogatory responses. Plaintiffâs objection to Ms. Kindlerâs NIA opinion is based on her dependence on Ms. Sultanikâs opinion. (See D.I. 151 at 26; Hearing Tr. at 82:22â83:3). The motion to exclude Ms. Kindlerâs NIA opinion is similarly denied, with leave to raise the issue again. 4. Ms. Kindlerâs Damages Opinion Plaintiff moves to exclude Ms. Kindlerâs damages opinion as arbitrary and unreliable. Plaintiffâs criticisms all boil down to arguing that Ms. Kindlerâs evasiveness at her deposition demonstrates that her opinions are unreliable. As an example, Ms. Kindlerâs report discusses license agreements and settlement agreements which, as Plaintiff acknowledges, appear to support the $1.5 million and $3 million bounds of her reasonable royalty range. (D.I. 151 at 31 (citing D.I. 152-2, Ex. 29 ¶¶ 10, 67â72, 88â99, 112â16); see also D.I. 152-2, Ex. N ¶¶ 70, 104, 107, 170). When Ms. Kindler was asked at her deposition what evidence formed the basis for this range, she generally referred to âall of the evidence and economic analysis presented in [her] report.â (D.I. 152-2, Ex. 30 at 38:2â18; see also id. at 37:5â38:1, 40:9â41:5). Ms. Kindler also testified that her opinion would not change even if she were not permitted to rely on certain agreements. (D.I. 152-2, Ex. 30 at 38:19â40, 129:14â130:22, 146:25â147:10, 157:13â158:14). Plaintiff argues that these deposition responses demonstrate that Ms. Kindlerâs reasonable royalty opinion was âinherently unreliable.â (D.I. 151 at 30). I agree with Defendant that Ms. Kindlerâs conclusions, which purportedly rely on multiple data points, are not shown to be arbitrary and unsupported based on her testimony that elimination of one data point does not affect her conclusion. (D.I. 159 at 31). Ms. Kindlerâs evasiveness during her deposition is not grounds to categorically exclude Ms. Kindlerâs opinion. TQ Delta, LLC v. 2Wire, Inc., 2021 WL 2954356, at *3 (D. Del. July 14, 2021). Unlike critiques challenging, for example, the scientific validity of an expertâs opinion or the methodology an expert used, those challenging an expert witnessâs evasiveness raise issues of credibility, not reliability.24 Id. District courts are gatekeepers for the reliability of expert opinions, Schneider, 320 F.3d at 405, but the âquestion of whether the expert is credible or the opinion is correct is generally a question for the fact finder, not the court.â Summit 6, LLC v. Samsung Elecs. Co., 802 F.3d 1283, 1296 (Fed. Cir. 2015). Plaintiff will be able to address Ms. Kindlerâs credibility through cross examination at trial. Daubert, 509 U.S. at 596. Plaintiff seeks exclusion of Ms. Kindlerâs damages opinions on the basis that Ms. Kindler improperly assumed Plaintiffâs infringement case was limited to products infringing âthrough the useâ of VPC and/or Transit Gateway. (D.I. 151 at 36â37). As discussed, Plaintiffâs infringement theory is so limited. For the reasons above, I will not exclude Ms. Kindlerâs opinions. IV. CONCLUSION An appropriate order will issue. 24 Plaintiffâs briefing does contain phrasing claiming, for example, that Ms. Kindlerâs opinions âlack[] any cognizable methodology.â (D.I. 151 at 29â30). It is clear, however, that Plaintiffâs arguments are all based on Ms. Kindlerâs deposition testimony and accusations of evasiveness. (See D.I. 151 at 28â35; D.I. 172 at 16â17).
Case Information
- Court
- D. Del.
- Decision Date
- September 12, 2024
- Status
- Precedential