Facts
- Plaintiff Brittney Felder was hired by Defendant MGM National Harbor, LLC as an Assistant Retail Manager in the summer of 2017 and alleged discrimination based on her skin color, culminating in her termination. [lines="25-31"].
- Following her termination, Felder filed a motion to compel discovery, leading to a series of motions, including Plaintiff's request for sanctions due to alleged discovery violations by the Defendant. [lines="34-42"], [lines="188-200"].
- The court granted extensions for discovery deadlines, including several months of additional negotiations where both parties addressed ongoing discovery disputes. [lines="105-108"].
- A hearing on Plaintiff's motions to compel took place on March 2, 2023, after which additional procedural directives were issued. [lines="51-60"].
- By February 28, 2023, the parties reported they had resolved all outstanding discovery disputes and requested an extension to complete fact discovery. [lines="94-105"].
Issues
- Whether Defendant spoliated evidence by failing to preserve video footage relevant to Felder's claims prior to the initiation of litigation. [lines="207-209"].
- Whether Defendant adequately responded to Felder's discovery requests and complied with discovery orders, including requests for admissions and depositions. [lines="902-1024"].
Holdings
- The court found that there was no spoliation of evidence as Defendant's duty to preserve was not triggered until Felder notified them of her intent to sue after the video footage in question had already been recorded over as part of standard procedures. [lines="544-545"].
- The court held that Defendant's responses to requests for admissions and conduct regarding depositions complied with the Federal Rules of Civil Procedure, thus rejecting Felder’s claims of discovery abuse. [lines="1023-1024"].
OPINION
KOVE IO, INC., Plaintiff, v. AMAZON WEB SERVICES, INC., Defendant.
Case No. 1:18-cv-8175
IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION
April 9, 2024
Document #: 891 Filed: 04/17/24 Page 1 of 18 PageID #:57047
Alan M. Fisch
alan.fisch@fischllp.com
R. William Sigler
bill.sigler@fischllp.com
Jeffrey M. Saltman (pro hac vice)
jeffrey.saltman@fischllp.com
Lisa Phillips (pro hac vice)
lisa.phillips@fischllp.com
Andrew L. Ramos (pro hac vice)
andrew.ramos@fischllp.com
Brandon P. Evans (pro hac vice)
brandon.evans@fischllp.com
FISCH SIGLER LLP
5301 Wisconsin Avenue NW
Suite 400
Washington, DC 20015
202.362.3500
Ken K. Fung (pro hac vice)
ken.fung@fischllp.com
FISCH SIGLER LLP
400 Concar Drive
San Mateo, CA 94402
650.362.8200
Attorneys for Amazon Web Services, Inc.
INTRODUCTION ........................................................................................................................... 1
LEGAL STANDARD ..................................................................................................................... 1
ASSERTED CLAIMS ..................................................................................................................... 1
ARGUMENT .................................................................................................................................. 2
I. The Court Should Grant JMOL on Willfulness and § 284. .................................................. 2
A. No Reasonable Jury Could Find Willfulness. ............................................................... 2
B. Regardless of Any Jury Finding, § 284 Enhanced Damages Would Be Inappropriate. 5
C. No Reasonable Jury Could Rely on Dr. Overton’s Vague Statement on Redirect Contradicting All His Previous Testimony and Statements. ......................................... 6
II. Kove Failed to Prove Infringement. ..................................................................................... 7
A. Kove Failed to Show That the Accused Products Satisfy the Requirements for “Location Server,” “Location,” and “Identifier.” .......................................................... 7
B. Kove Failed to Prove Infringement for All the Reasons Dr. Grama Identified. ............ 9
C. Kove Failed to Show That the Accused Products Satisfy Other Requirements of the Six Asserted claims. .................................................................................................... 10
D. No Non-Hierarchical Structure ................................................................................... 12
E. No Reasonable Jury Could Rely on Dr. Goodrich’s Testimony .................................. 13
III. Kove Failed to Prove Damages. ......................................................................................... 13
CONCLUSION ............................................................................................................................. 14
INTRODUCTION
With Kove’s case in chief concluded, and before the Court instructs the jury, AWS respectfully requests judgment as a matter of law under
LEGAL STANDARD
Under
[T]he question is simply whether the evidence as a whole, when combined with all reasonable inferences permissibly drawn from that evidence, is sufficient to allow a reasonable jury to find in favor of the plaintiff. A mere scintilla’ of evidence, however, will not suffice.1
ASSERTED CLAIMS
At the beginning of trial, Kove narrowed its asserted claims to the following:
| ’170 Patent | ’640 Patent | ’978 Patent | |
| For DDB | Claims 1, 2 | Claim 18 | Claims 10, 17, 30 |
| For S3 | Claims 1, 2 | -- | Claims 17, 30 |
ARGUMENT
I. THE COURT SHOULD GRANT JMOL ON WILLFULNESS AND § 284.
A. NO REASONABLE JURY COULD FIND WILLFULNESS.
Willfulness requires a defendant to not only have knowledge of an asserted patent, but also knowledge of the alleged infringement.2 As the Federal Circuit stated in Bayer Healthcare LLC v. Baxalta Inc.: “Knowledge of the asserted patent and evidence of infringement is necessary, but not sufficient, for a finding of willfulness. Rather, willfulness requires deliberate or intentional infringement.”3 Here, in the portion of the summary judgment order addressing pre-suit willfulness, this Court found that “[t]he factual dispute over whether AWS engineers had knowledge of the asserted patents prior to this instant case reflects that a genuine issue of material fact remains regarding whether AWS willfully infringed Kove’s patents.”4 Now, after trial, there’s no evidence that any AWS engineers had any knowledge of Kove or its patents until this lawsuit.
Indeed, there’s no evidence that any AWS or Amazon employees knew about the patents-in-suit—much less knew or should’ve known about any infringement of those patents—at any time before Kove provided AWS notice via the December 12, 2018 complaint. All that Kove’s evidence shows is that in 2011 (i.e., five years after Kove stopped attempting to sell products embodying the patents), outside patent prosecution counsel for Amazon Technologies, Inc., overcame a rejection based on the ’978 patent during the prosecution of one Amazon patent (U.S. Patent No. 8,239,571). As Mr. Hayden testified, Amazon’s ’571 patent wasn’t related to either
Courts have repeatedly found such evidence insufficient for a jury to find willfulness. For instance, in BASF v. CSIRO, the Federal Circuit affirmed granting the defendant JMOL on willfulness, where the trial evidence showed that the defendant’s employees “were aware and kept track of” plaintiff’s patents-in-suit.7 And in Intellectual Ventures I LLC v. Symantec Corp., then-District Judge Stark found that “[n]o reasonable jury could find willful infringement” based on citations to the patents-in-suit in the defendant’s patent prosecution filings.8 Other courts have reached similar decisions, including where in-house counsel cited the patents-in-suit.9
Moreover, here there’s no evidence that Kove’s patents were discussed in any other office actions, or during the prosecutions of any of the 202 other patents on the list of 203 Amazon patents that Kove cited.10 In every one of those prosecutions, the examiners determined without fanfare that the technology that Amazon was working on was different from Kove’s patents.11 And there
And in the relevant time period after that (i.e., between the complaint and the September 2020 expiration of all patents-in-suit),12 by virtue of this lawsuit, AWS necessarily would’ve been acting with advice from litigation counsel (as would any similarly situated defendant). For this reason, some district courts automatically dismiss willfulness in the absence of pre-suit notice.13 Other courts, including this one, have held that the complaint alone is enough for post-suit willfulness to survive a Rule 12 motion to dismiss. But these cases don’t suggest that the complaint alone is always sufficient to send willfulness to the jury.14 And it shouldn’t be here. Aside from the complaint, Kove presented no evidence showing that AWS had the specific intent to infringe post-suit. And it’s particularly unreasonable to expect AWS to immediately stop selling accused products upon receipt of an infringement allegation, when those products have been on the market for as long as S3 (nearly 13 years) and DDB (nearly seven years) at the time of the complaint.15
B. REGARDLESS OF ANY JURY FINDING, § 284 ENHANCED DAMAGES WOULD BE INAPPROPRIATE.
As this Court noted, the issue of enhancement under
As Circuit Judge Bryson stated in UroPep v. Eli Lilly, “the party seeking enhanced damages under section 284 has the burden of showing its entitlement to an enhanced award by a preponderance of the evidence.”20 In that case, the court ruled on
Here, Kove’s failure to meet its burden is more clear cut, given that: (1) Kove didn’t provide any pre-suit notice; (2) S3 had been on the market for nearly 13 years and DDB nearly seven years, when Kove finally filed the complaint; and (3) the potentially relevant AWS conduct is limited in time, due to the September 2020 expiration of the patents.24 As noted above, AWS was still investigating this matter and pursuing reasonable defenses, with the advice of litigation counsel, in September 2020. And nothing AWS did before then rises to the level of egregiousness that could warrant
C. NO REASONABLE JURY COULD RELY ON DR. OVERTON’S VAGUE STATEMENT ON REDIRECT CONTRADICTING ALL HIS PREVIOUS TESTIMONY AND STATEMENTS.
For the first time ever in this case, after a break between his cross and redirect, Dr. Overton testified on redirect that he told an Amazon employee about a potential infringement action.25
In any event, even if Dr. Overton’s statement could be taken at face value, it wouldn’t support willfulness, because Dr. Overton repeatedly confirmed that he never mentioned the patents-in-suit to Amazon. For instance, on cross he testified as follows:
Q. During the course of Kove‘s communications with AWS in 2017 and 2018, Kove never identified the ’978, ’170, or ’640 patents, right?
A. Yes, that is correct.29
And his one-sentence answer to Kove counsel’s question about “infringement action” doesn’t mention the patents-in-suit. Accordingly, Dr. Overton’s dubious redirect testimony is no basis to deny JMOL on willfulness.
II. KOVE FAILED TO PROVE INFRINGEMENT.
A. KOVE FAILED TO SHOW THAT THE ACCUSED PRODUCTS SATISFY THE REQUIREMENTS FOR “LOCATION SERVER,” “LOCATION,” AND “IDENTIFIER.”
All asserted claims require the following construed terms:
- Location server: “component that maintains a set of identifier/location mappings that are modified or returned in response to location request messages from clients.”
Location: “an encoding that is a member of a set of associations with an identifier in a location server, and that specifies where data pertaining to the entity identified by the identifier is stored.” - Identifier: “a unique encoding that identifies an individual entity, and with which zero or more location strings are associated in a location server.”30
Kove failed to present evidence at trial that would allow a reasonable jury to find that the accused products satisfy these requirements. For example, Dr. Goodrich agreed at trial that S3 doesn’t infringe if the [REDACTED] and [REDACTED] aren’t location servers.31 But given the undisputed record evidence, [REDACTED] and [REDACTED] can’t be location servers for several reasons. These reasons include Dr. Goodrich’s conclusory explanation that S3’s [REDACTED] comprising a [REDACTED] satisfies the location requirement.32 AWS’s witnesses with personal knowledge repeatedly testified that the [REDACTED] is just a label.33 Further, AWS’s expert confirmed that it doesn’t “specif[y] where data … is stored.”34 And Dr. Goodrich failed to show otherwise. As a result, S3 doesn’t satisfy the “location” requirements. And it doesn’t satisfy the “location server” requirements either, since the claimed location servers must maintain identifier/location mappings.
For another example, Dr. Goodrich continued to assert at trial that a [REDACTED] in DDB satisfies the identifier requirement.35 But as Amazon previously explained, what Dr. Goodrich relied on for “location servers,” i.e., the [REDACTED], don’t use or interact with a [REDACTED]36
Accordingly, for at least these reasons,40 no reasonable jury could find that DDB satisfies at least the “identifier” and “location server” requirements of the asserted claims.
B. KOVE FAILED TO PROVE INFRINGEMENT FOR ALL THE REASONS DR. GRAMA IDENTIFIED.
Amazon’s expert, Dr. Ananth Grama testified that there were at least four limitations in each claim that DDB and S3 don’t meet. He specifically noted that nothing in the accused components of DDB meets the Court’s constructions of identifier, location, location server, or plurality of location servers.41 Thus, DDB doesn’t infringe any of the asserted claims. He went on to describe how DDB doesn’t use redirect messages as required by claim 18 of the ’640 patent or claim 10 of the ’978 patent.42 And he showed that DDB also doesn’t transfer data according to a
Similarly, for S3, Dr. Grama testified that the accused components don’t meet the Court’s construction of location, location server, plurality of location servers, and thus don’t infringe any claim of any patent.45 And, as he showed, the [REDACTED]—the accused location servers—don’t [REDACTED], so they can’t meet the claims’ requirement that each identifier must be associated with at least one location.46 Beyond that, he also explained that S3 doesn’t infringe claims 1 and 2 of the ’170 patent since [REDACTED] don’t distribute [REDACTED]—the accused identifier—according to a hash function.47 Nor does S3 transfer [REDACTED], as required by claims 17 and 30 of the ’978 patent.48
C. KOVE FAILED TO SHOW THAT THE ACCUSED PRODUCTS SATISFY OTHER REQUIREMENTS OF THE SIX ASSERTED CLAIMS.
Kove also failed to show how the accused products satisfy other requirements of the narrowed list of six asserted claims.49 For example, JMOL is warranted based on the “client” limitations of all claims. This includes the requirement in ’640 claim 18 that the location servers “transmit[] a redirect message to the client” that contains information “to calculate a location of a
Additional examples include Kove’s failure to show that the [REDACTED] meet the requirement of the ’170 claims that “at least one of the plurality of data location servers includes location information associated with the identifier string,” and the requirement of ’978 claims 17 and 30 for “storing the received location in a location store at the first data location server, the location store comprising a plurality of identifiers, each identifier associated with at least one location, wherein the received location is associated with the received identifier in the location store.” For instance, Goodrich admitted that “[REDACTED] don‘t store location information for every request.”53 Accordingly,
D. NO NON-HIERARCHICAL STRUCTURE
All asserted claims describe systems or networks that require a “plurality of location servers,”55 which this Court construed as “location servers in a non-hierarchical configuration.”56 As AWS has explained S3 and DDB are both configured [REDACTED].57 And the undisputed testimony of those with personal knowledge of the systems confirmed that.
No reasonable jury could conclude otherwise, given that Kove’s expert testimony failed to show how either accused product satisfies the non-hierarchical requirements of the asserted claims. For instance, Dr. Goodrich confirmed that his opinions rely on the alleged location servers in a particular grouping or region for the required “plurality of location servers.”58 To begin with, this directly contradicts what Kove argued at summary judgment.59 And, more importantly, Dr. Goodrich admitted at trial that the location servers in what he defined as the “plurality of location servers” in a non-hierarchical configuration wouldn’t have all the information necessary to satisfy
E. NO REASONABLE JURY COULD RELY ON DR. GOODRICH’S TESTIMONY
In Wechsler v. Macke Int’l Trade Inc., the Federal Circuit held that a defendant was entitled to JMOL where the patent owner’s “expert presented little more than conclusory evidence.”61 Here, Dr. Goodrich confirmed at trial that he didn’t review source code.62 Yet, the opinions he presented to the jury consisted, to a significant extent, of conclusory statements that the source code or various publicly available documents about the benefits of the accused products confirm his infringement opinions.63 JMOL of non-infringement thus is warranted for this reason as well.
III. KOVE FAILED TO PROVE DAMAGES.
It’s well established that the patent owner has “the burden of proving the amount of reasonable royalty damages it is entitled to recover.”64 To do so, the patent owner may not rely on speculation. As the Federal Circuit explained in Promega Corp. v. Life Techs. Corp.:
In patent cases, … [d]amages ‘must not be left to conjecture by the jury. They must be proved, and not guessed at.’65
Here, Kove’s expert Mr. Bergman testified that he employed the “income approach” to determine that the patents’ value to Amazon is $1.034B. He further testified that, in the hypothetical negotiation, the parties would’ve agreed that Kove would receive at least 50%, and up to 100%, of the incremental profits attributable to the use of the patents-in-suit.66 But apart from
Additionally, a patentee can seek “only those damages that are attributable to the infringing features of the product.”67 And where multi-component products are involved, as is the case here, damages awarded for patent infringement “must reflect the value attributable to the infringing features of the product, and no more.”68 At trial, Mr. Bergman failed to explain how he apportioned damages to the allegedly infringing features. For example, he didn’t explain why he attributed the entire value of S3’s [REDACTED] to the ’170 patent claims, ignoring the other functionalities of the [REDACTED].69 And he incorrectly assumed that S3’s ability to scale derives solely from allegedly infringing features, so his non-infringing alternative for other claims omitted S3’s entire index system. For these and other reasons, including a variety of unexplained errors in Mr. Bergman’s direct testimony, Kove failed to prove damages.
CONCLUSION
Accordingly, AWS respectfully request that the Court grant JMOL of non-infringement under
Respectfully Submitted,
/s/ R. William Sigler
Alan M. Fisch
alan.fisch@fischllp.com
R. William Sigler
bill.sigler@fischllp.com
Jeffrey M. Saltman (pro hac vice)
jeffrey.saltman@fischllp.com
Lisa Phillips (pro hac vice)
lisa.phillips@fischllp.com
Andrew L. Ramos (pro hac vice)
andrew.ramos@fischllp.com
Brandon P. Evans (pro hac vice)
brandon.evans@fischllp.com
FISCH SIGLER LLP
5301 Wisconsin Avenue NW
Suite 400
Washington, DC 20015
202.362.3500
Ken K. Fung (pro hac vice)
ken.fung@fischllp.com
FISCH SIGLER LLP
400 Concar Drive
San Mateo, CA 94402
650.362.8200
Attorneys for Amazon Web Services, Inc.
I hereby certify that on April 9, 2024, I electronically filed the foregoing under seal with the Clerk of the Court for the United States District Court for the Northern District of Illinois, via the CM/ECF system, and also served a copy on all counsel of record via email.
/s/ R. William Sigler
R. William Sigler
