Intertrust Technologies Corporation v. Cinemark Holdings, Inc.
2:19-cv-00266
E.D. Tex.May 8, 2020Background:
- Intertrust sued Cinemark, AMC, and Regal for infringement of 11 patents relating to implementation of DCI digital cinema standards.
- Intertrust designated Michael Karagosian as an industry/technical expert; Defendants moved to disqualify him and to block disclosure of Protected materials based on his prior consultancy for NATO.
- Karagosian is a long‑time SMPTE standards participant and operated independent consulting firms (MKPE, The Cinema Group); from ~2000–2011 he consulted for NATO, briefing members and relaying feedback to DCI/SMPTE.
- NATO engagements involved group discussions and reports (some labeled confidential); MKPE signed a JDCA in 2003 and Karagosian attended one meeting, but he was never individually retained or employed by any Defendant.
- Defendants submitted declarations alleging disclosure of confidential business/technical information but did not produce the JDCA or any specific confidential documents for in camera review.
- The Court found (1) no confidential/agency relationship between Karagosian and the Defendants, (2) insufficient evidence that he received confidential information relevant to this case, and (3) denied the Motion for Protective Order — Karagosian may serve as Intertrust’s expert under the Protective Order (Daubert challenge still available).
Issues:
| Issue | Intertrust's Argument | Defendants' Argument | Held |
|---|---|---|---|
| Whether a confidential/agency relationship existed between Defendants and Karagosian | Karagosian was NATO's independent consultant and not an agent or employee of Defendants | Karagosian acted as NATO's agent/liaison, advised NATO members, prepared confidential reports and was paid to represent members' interests | No confidential/agency relationship; Karagosian consulted for NATO, not for Defendants individually |
| Whether Karagosian received confidential information relevant to this litigation | No proof he received relevant confidential material; declarations vague and documents not produced; much info was public or shared with competitors | He received confidential business, strategy and technical information via NATO and the JDCA | Defendants failed to prove disclosure of relevant confidential information to Karagosian |
| Whether public policy and practical considerations warrant disqualification (availability/prejudice) | Disqualification inappropriate absent concrete conflict; Intertrust lacks comparable experts; prejudice to Intertrust | Disqualification would not unduly prejudice Intertrust because other cleared experts exist and there is time to replace | Public policy disfavors disqualification on this record; motion denied; Karagosian may serve under the Protective Order; Daubert challenge remains possible |
Key Cases Cited
- Koch Refining Co. v. Jennifer L. Boudreau M/V, 85 F.3d 1178 (5th Cir. 1996) (establishes two‑step test for expert disqualification: confidential relationship and disclosure of confidential information)
- Daubert v. Merrell Dow Pharm., Inc., 509 U.S. 579 (1993) (court referenced availability of Daubert challenge to test expert admissibility)
