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Message: OT, WILN vs AAPL

Sarah Barrows (Bar No. 253278)

barrowss@gtlaw.com

Stephen Ullmer (Bar No. 277537)

ullmers@gtlaw.com

GREENBERG TRAURIG LLP

4 Embarcadero Center, Suite 3000

San Francisco, CA 94111

Tel: (415) 655-1300

Fax: (415) 707-2010

James J. DeCarlo (

pro hac vice

)

decarloj@gtlaw.com

GREENBERG TRAURIG LLP

200 Park Avenue

Florham Park, NJ 07932

Tel: (973) 360-7900

Fax: (973) 301-8410

Kevin J. O’Shea (

pro hac vice

)

osheak@gtlaw.com

GREENBERG TRAURIG LLP

77 West Wacker Drive

Chicago, IL 60601

Tel: (312) 456-8400

Fax: (312) 456-8435

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

e.Digital Corporation,

Plaintiff,

v.

APPLE Inc., a California

Corporation,

Defendants.

CASE NO. 13CV0785 DMS WVG

DEFENDANTS’ REPLY IN SUPPORT

OF EX PARTE APPLICATION FOR

ORDER SHORTENING TIME

Assigned to: Hon. Dana M. Sabraw

Courtroom: 13A

Apple is moving to amend the Stipulated Judgment of Non-Infringement to

allow any appeal of the Collateral Estoppel Order in this case to be heard

concurrently with the appeal in the

Huawei case, and to stay the pending

e.Digital

cases pending appeal in order to preserve the Court’s and the parties’ resources,

and to avoid duplicative briefing at the Federal Circuit and multiple

Markman

proceedings before this Court. Apple requests an expedited briefing schedule so

that the parties can remain as close as possible to the schedule entered by the

Federal Circuit in the

Huawei

appeal.

I. Apple’s Interests are Materially Harmed Absent an Expedited Schedule

As discussed more fully in Apple’s Application, the timeline of the

Huawei

appeal will impact whether any appeal in this case will be heard concurrently with

the

Huawei appeal. (See

Rec. Doc. No. 55.) Plaintiff’s opening brief in the

Huawei

appeal is due December 9, 2013—before this Court is scheduled to hear

argument on the Motion to Amend the Judgment and Motion to Stay. (

See

Rec.

Doc. No. 55 (motion currently set for hearing on December 20, 2013).)

Plaintiff states without reasoning or support that the Federal Circuit might

schedule

oral argument in Huawei

after the Court amends the Partial Judgment in

this case to allow for appeal of the Collateral Estoppel Order. This argument is not

logically sound. In particular, if the present schedule is maintained for the pending

Motion to Amend the Stipulated Partial Judgment Pursuant to Rule 54(b), the

briefing in the

Huawei

appeal will have been completed and oral argument

scheduled before Plaintiff and Apple even complete their briefing in an appeal

from the Collateral Estoppel Order in this case. Therefore, the likelihood of

consolidation would be greatly diminished. Alternatively, the schedule for all

appeals of the Collateral Estoppel Order will be significantly delayed.

Plaintiff’s argument that Apple’s interests are

already

being represented at

the Federal Circuit by a competitor is premised on faulty information. Initially,

Apple and Huawei are not in a joint defense group for purposes of appeal.

Moreover, Apple’s interests cannot be properly represented by a third-party

competitor, especially given that Apple is not informed of the terms of the

settlement that Huawei entered into with Plaintiff.

1

II. Plaintiff is not Prejudiced by an Expedited Briefing Schedule.

Plaintiff has been aware of Apple’s intent to file the Motion to Amend and

the Motion to Stay, as well as the substantive bases for these motions, since

October 14, 2013. (

See Rec. Doc. No. 56 at ¶¶ 1-3.2

) The motions are neither

lengthy nor legally complex, and Plaintiff is well aware of the underlying facts.

Therefore, Plaintiff will have had ample time to formulate arguments as to why the

Court should not enter a final judgment, as to why the Federal Circuit should

address an identical issue in multiple appeals, and as to why this Court should

potentially conduct two claim construction hearings.

III. Apple did not Cause the Need for Ex Parte Relief

Apple does not dispute that it was aware that Plaintiff intended to eventually

appeal the Collateral Estoppel Order. But that is very different from knowing that

Plaintiff intended to

immediately

appeal that Order. During the negotiations of the

parties’ stipulated partial judgment in this case, Plaintiff hid the fact that it

already

had secured the right to file an immediate appeal of the Collateral Estoppel Order.

plan, it would have required that the stipulated partial agreement include a Rule

54(b) certification, so that the appeals could be taken together.

The current situation would have been avoided if Plaintiff had simply

informed Apple and the other Defendants of its intention to immediately appeal the

Collateral Estoppel Order. Instead, Plaintiff hid the ball. Apple and the other

Defendants cannot be faulted for what they did not—and could not—know.

Plaintiff’s argument that Apple and the other Defendants should have

foreseen the current situation is equally applicable to Plaintiff. Plaintiff should

have known—and likely did know—that Apple and other Defendants would seek

to participate in any appeal. Notably, despite arguing various substantive issues in

its Opposition to the Application to Shorten Time, Plaintiff did not explain why—

or if—it objects to an amendment of the Stipulated Partial Judgment to include a

Rule 54(b) certification.

IV. Conclusion

Apple and other Defendants seek to prevent a situation where the parties’

rights are adjudicated without all parties being present and allowed to represent

themselves. Shortening the briefing schedule as requested in the Application to

Shorten Time will significantly increase the likelihood that the appeals will be

heard together, and reduce the overall time for the Federal Circuit’s consideration

of the Collateral Estoppel Order.

Had Plaintiff told Apple and the other Defendants about its strategy, the

Defendants could have taken that into consideration when negotiating their

respective stipulated partial judgments. Indeed, had Apple known about Plaintiff’s



1

For example, it is possible that the settlement agreement incentivizes Huawei to

not vigorously defend this Court’s ruling at the Federal Circuit.

See Allflex USA,

Inc. v. Avid Identification Sys., Inc.

, 704 F.3d 1362, 1366-67 (Fed. Cir. 2013).

2

Apple sought Plaintiff’s consent to the motions prior to filing, in part because it

assumed that Plaintiff would grant that consent, considering that the Collateral

Estoppel Order was already being appealed.

DATED: October 23, 2013 GREENBERG TRAURIG, LLP

By

/s/ Kevin J. O’Shea

Kevin J. O’Shea (

pro hac vice

)

osheak@gtlaw.com

GREENBERG TRAURIG LLP

77 West Wacker Drive

Chicago, IL 60601

Tel: (312) 456-8400

Fax: (312) 456-8435

Sarah Barrows (Bar No. 253278)

barrowss@gtlaw.com

Stephen Ullmer (Bar No. 277537)

ullmers@gtlaw.com

GREENBERG TRAURIG LLP

4 Embarcadero Center, Suite 3000

San Francisco, CA 94111

Tel: (415) 655-1300

Fax: (415) 707-2010

James J. DeCarlo (

pro hac vice

)

decarloj@gtlaw.com

GREENBERG TRAURIG LLP

200 Park Avenue

Florham Park, NJ 07932

Tel: (973) 360-7900

Fax: (973) 301-8410

Attorneys for Defendant Apple Inc

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