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`19A427
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`APPLE INC.,
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`v.
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`VIRNETX INC., LEIDOS, INC.,
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`Petitioner,
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`Respondents.
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`OPPOSITION TO AN APPLICATION FOR AN EXTENSION OF TIME
`IN WHICH TO FILE A PETITION FOR A WRIT OF CERTIORARI
`TO THE U.S. COURT OF APPEALS FOR THE FEDERAL CIRCUIT
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`To the Honorable John G. Roberts, Jr., Chief Justice of the United States
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`and Circuit Justice for the United States Court of Appeals for the Federal Circuit:
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`Applicant Apple Inc. ("Apple") seeks a 60-day extension of the time, to and
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`including December 30, 2019, to file a certiorari petition seeking review of an
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`unpublished summary affirmance issued by the court of appeals nine-and-a-half
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`months ago on January 15, 2019. Respondents VirnetX Inc. ("VirnetX") and
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`Leidos, Inc. ("Leidos") respectfully request that the Court limit any extension to 35
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`days, to and including December 6, 2019.
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`1.
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`This case is nearly ten years old. It has been plagued by efforts to
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`delay its resolution-efforts sufficiently problematic that the district court, citing
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`2
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`Apple's "gamesmanship," found this case "exceptional"; enhanced damages; and
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`awarded attorney's fees. C.A. App. 64-65; see C.A. App. 57. As the district court
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`observed, Apple "repeatedly sought to * * * stay the litigation" in favor of other
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`"proceedings * * * even after receiving adverse rulings" from the district court and
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`"even after few, if any, relevant facts had changed since its last request." C.A.
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`App. 57. Apple also delayed proceedings through conflicts "it created" by hiring
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`VirnetX's former appellate counsel and jury consultant. C.A. App. 64-65.
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`Even in the court of appeals, the pattern continued. The parties agreed that
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`Apple would seek only one 60-day extension to file its opening brief (to which
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`VirnetX would not object), and would seek no further extensions. See C.A. Dkt. 34,
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`Ex. A. After seeking and obtaining the extension, Apple moved to stay the appeal
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`so as to delay the filing of its opening brief indefinitely. See C.A. Dkt. 32; see also
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`Wilton Indils., Inc. v. United States, 310 F. App'x 366, 367 (Fed. Cir. 2008) (a
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`"motion for a stay is in essence another motion for an extension of time"). On the
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`merits, the court of appeals eventually issued the decision below, summarily
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`affirming without an opinion, just one week after hearing oral arguments. Apple
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`then sought delay again: It used its rehearing petition as a sixth stay request,
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`asking for the appeal to be stayed pending resolution of unspecified appeals from
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`Patent Office proceedings. C.A. Dkt. 82, at 16-17; see also C.A. Dkt. 34, at 1
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`(collecting earlier requests). After that request was denied, Apple unsuccessfully
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`moved to vacate the denial of rehearing, for leave to file a second rehearing
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`3
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`petition, and to stay the mandate indefinitely pending resolution of unspecified
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`Patent Office proceedings and appeals therefrom. See C.A. Dkt. 105.
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`Apple seeks delay because-as it told the court of appeals-it hopes that
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`proceedings in the Patent Office and any ensuing appeals will eventually result in
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`invalidation of the asserted patent claims. Apple thus tells this Court that the
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`"Patent Office has held all of the patent claims asserted against Apple to be
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`unpatentable." Apple Application 2. Apple does not mention that the Federal
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`Circuit has in three separate cases overturned Patent Office decisions purporting
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`to invalidate patent claims undergirding the judgments in this case. See VirnetX
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`Inc. v. Apple Inc., 931 F.3d 1363, 1380 (Fed. Cir. 2019); VirnetX Inc. v. Mangrove
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`Partners Master Fund, Ltd., - F. App'x -, 2019 WL 2912776, at *1 (Fed. Cir.
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`July 8, 2019); VirnetX Inc. v. Cisco Sys., Inc., 776 F. App'x 698, 700 (Fed. Cir.
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`2019). Apple overlooks that the Federal Circuit long ago upheld the validity of the
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`patents at issue in this case. See VirnetX Inc. v. Cisco Sys., Inc., 767 F.3d 1308,
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`1323-1324 (Fed. Cir. 2014) (attached as Apple Application Ex. 1). Nor does Apple
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`suggest that it will ask this Court to review the Federal Circuit's validity ruling.
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`As a result, the entire judgment in this case remains supported by patent claims
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`upheld by the Federal Circuit on appeal. C.A. Dkt. 101, at 19-21 & n.1; see C.A.
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`Dkt. 92, at 4-10. Having had a decade to challenge patent validity, Apple is not
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`entitled to further delay. In view of Apple's pattern of delay, and the outsized
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`4
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`effect of a longer extension, respondents respectfully request that Apple's
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`extension of time be limited to 35 days. 1
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`2.
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`The absence of "good cause" for a 60-day extension is underscored by
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`Apple's failure to identify any issue that plausibly warrants this Court's review.
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`The sole issue Apple identifies concerns "the Federal Circuit's interpretation of
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`this Court's requirement, set forth in Garretson v. Clark, 111 U.S. 120 (1884), that
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`patent damages must always be apportioned to reflect the value of the patented
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`invention." Apple Application 3. Apple overlooks that, when the Federal Circuit
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`addressed apportionment in this case five years ago, it "agree[ d] with Apple"
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`concerning Garretson's apportionment requirement. VirnetX Inc. v. Cisco Sys.,
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`Inc., 767 F.3d 1308, 1327 (Fed. Cir. 2014); see also id. at 1328-1329, 1331-1334
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`("agree[ing]" with additional Apple arguments). 2 Apple does not explain how it
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`may seek review of an apportionment issue on which it prevailed.
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`The Federal Circuit's most recent decision-the only other one from which
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`Apple may seek review-says nothing about apportionment. The Federal Circuit
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`1 January 8, 2020, is the last distribution date for paid petitions to be considered at
`a conference in January. The next conference is not until February 21. An
`extension much beyond December 6, 2019, would leave respondents with little time
`to prepare a brief in opposition and still have the petition considered at a January
`conference.
`2 The Federal Circuit disagreed with Apple's damages arguments only on a fact(cid:173)
`bound issue unrelated to apportionment-whether the district court had "abused
`its discretion" in determining that six prior licenses were sufficiently "comparable"
`to be admitted into evidence. 767 F .3d at 1330-1331. Apple did not seek further
`review of that decision, either in the court of appeals or this Court.
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`5
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`affirmed without an opinion because the issues were so straightforward that "an
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`opinion" addressing Apple's challenges "would have no precedential value." Fed.
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`Cir. R. 36; see Apple Application Ex. 2 (citing Federal Circuit Rule 36). Despite
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`the Federal Circuit's admonition against seeking rehearing en bane of unpublished
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`decisions, Practice Note to Fed. Cir. R. 35, Apple sought rehearing en bane. The
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`full court denied Apple's request, with no judge requesting a vote on whether to
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`grant rehearing en bane. Compare Apple Application Ex. 3, with Fed. Cir. IOP
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`14.l(f) (order denying rehearing must state if vote is requested). Apple does not
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`explain how the unpublished decision below presents any issue warranting this
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`Court's review. See Sup. Ct. R. 10. Given that the Federal Circuit's earlier
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`decision in this case "agree[d] with" Apple's apportionment arguments, and that
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`the Federal Circuit's most recent decision affirmed without an opinion, it is hard to
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`see how Apple's petition could present any apportionment issue with any
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`significance beyond this case. That further weighs against Apple's request for a
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`60-day extension in this already much-delayed case.
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`3.
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`Rehearing was denied on August 1, 2019. Neither of the two counsel
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`listed on Apple's application mentions other commitments for two-thirds of the
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`standard 90-day period for seeking this Court's review. See Apple Application 2-3.3
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`The underlying decision, moreover, was issued more than nine months ago. Apple
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`Application Ex. 2. That decision was a summary affirmance. Because the issues
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`3 Mr. Davies mentions no commitments in October either. See Apple Application 2.
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`6
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`were so straightforward that "an opinion" addressing Apple's challenges "would
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`have no precedential value," Fed. Cir. R. 36, Apple had little reason to await the
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`inevitable denial of rehearing before considering any effort to seek this Court's
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`review. Apple does not require an extension, to nearly a year after the Federal
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`Circuit issued its summary affirmance, to seek review. Under the circumstances,
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`respondents respectfully submit that a 35-day extension would be amply sufficient.
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`Donald Urrabazo
`URRABAZO LAW, P.C.
`2029 Century Park East
`Suite 1400
`Los Angeles, CA 90067
`(310) 388-9099
`durrabazo@ulawpc.com
`
`The Watergate, Suite 660
`600 New Hampshire Ave., N.W.
`Washington, D.C. 20037
`(202) 556-2000
`jlamken@mololamken.com
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`Counsel for Respondent Leidos, Inc.
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`Counsel for Respondent VirnetX Inc.
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`October 18, 2019
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