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Case 2:13-cv-00213-JRG Document 352 Filed 02/17/16 Page 1 of 9 PageID #: 12466
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`
`REMBRANDT WIRELESS
`TECHNOLOGIES, LP,
`
`
`Plaintiff,
`
`MEMORANDUM OPINION AND ORDER
`
`
`
`Before the Court is Samsung Defendants’ (“Samsung”) Rule 50(b) Renewed Motion for
`
`Judgment as a Matter of Law and/or Rule 59(a) Motion for New Trial on Liability Issues (Dkt.
`
`No. 329 (“Mot.”). The Court heard argument on November 3, 2015. For the reasons set forth
`
`below, Samsung’s Rule 50(b) Renewed Motion for Judgment as a Matter of Law and/or Rule
`
`59(a) Motion for New Trial on Liability Issues is DENIED.
`
`I. BACKGROUND
`
`The Court held a jury trial in this case. The jury returned a verdict on February 13, 2015.
`
`The asserted claims of U.S. Patent No. 8,023,580 (“’580 Patent”) and U.S. Patent No. 8,457,228
`
`(“’228 Patent”), the two patents-in-suit, involve a system in which devices can communicate
`
`with each other on the same network using different modulation methods. The jury returned a
`
`unanimous verdict that the asserted claims were infringed and not invalid, and it awarded $15.7
`
`million in damages to Plaintiff Rembrandt Wireless Technologies, LP (“Rembrandt”).
`
`(“Verdict”, Dkt. No. 288.) Samsung now asserts that the jury did not have sufficient evidence for
`
`its findings.
`
`1
`
`
`
`
`
`CASE NO. 2:13-cv-213-JRG
`













`
`
`v.
`
`SAMSUNG ELECTRONICS CO., LTD.,
`SAMSUNG ELECTRONICS AMERICA,
`INC., AND SAMSUNG AUSTIN
`SEMICONDUCTOR, LLC,
`
`
`
`
`
` Defendants.
`
`

`
`Case 2:13-cv-00213-JRG Document 352 Filed 02/17/16 Page 2 of 9 PageID #: 12467
`
`II. APPLICABLE LAW
`
`A. Applicable Law Regarding FED. R. CIV. P. 50
`
`Upon a party’s renewed motion for judgment as a matter of law following a jury verdict,
`
`the Court should properly ask whether “the state of proof is such that reasonable and impartial
`
`minds could reach the conclusion the jury expressed in its verdict.” FED. R. CIV. P. 50(b); see
`
`also Am. Home Assur. Co. v. United Space Alliance, 378 F.3d 482, 487 (5th Cir. 2004). “The
`
`grant or denial of a motion for judgment as a matter of law is a procedural issue not unique to
`
`patent law, reviewed under the law of the regional circuit in which the appeal from the district
`
`court would usually lie.” Finisar Corp. v. DirectTV Group, Inc., 523 F.3d 1323, 1332 (Fed. Cir.
`
`2008). “A JMOL may only be granted when, ‘viewing the evidence in the light most favorable to
`
`the verdict, the evidence points so strongly and overwhelmingly in favor of one party that the
`
`court believes that reasonable jurors could not arrive at any contrary conclusion.’” Versata
`
`Software, Inc. v. SAP Am., Inc., 717 F.3d 1255, 1261 (Fed. Cir. 2013) (quoting Dresser-Rand
`
`Co. v. Virtual Automation, Inc., 361 F.3d 831, 838 (5th Cir. 2004)).
`
`Under Fifth Circuit law, a court is to be “especially deferential” to a jury’s verdict, and
`
`must not reverse the jury’s findings unless they are not supported by substantial evidence.
`
`Baisden v. I’m Ready Prods., Inc., 693 F.3d 491, 499 (5th Cir. 2012). “Substantial evidence is
`
`defined as evidence of such quality and weight that reasonable and fair-minded men in the
`
`exercise of impartial judgment might reach different conclusions.” Threlkeld v. Total Petroleum,
`
`Inc., 211 F.3d 887, 891 (5th Cir. 2000). A motion for judgment as a matter of law must be denied
`
`“unless the facts and inferences point so strongly and overwhelmingly in the movant’s favor that
`
`reasonable jurors could not reach a contrary conclusion.” Baisden, 693 F.3d at 498 (citation
`
`omitted). However, “[t]here must be more than a mere scintilla of evidence in the record to
`
`2
`
`

`
`Case 2:13-cv-00213-JRG Document 352 Filed 02/17/16 Page 3 of 9 PageID #: 12468
`
`prevent judgment as a matter of law in favor of the movant.” Arismendez v. Nightingale Home
`
`Health Care, Inc., 493 F.3d 602, 606 (5th Cir. 2007).
`
`In evaluating a motion for judgment as a matter of law, a court must “draw all reasonable
`
`inferences in the light most favorable to the verdict and cannot substitute other inferences that
`
`[the court] might regard as more reasonable.” E.E.O.C. v. Boh Bros. Const. Co., L.L.C., 731 F.3d
`
`444, 451 (5th Cir. 2013) (citation omitted). However, “[c]redibility determinations, the weighing
`
`of the evidence, and the drawing of legitimate inferences from the facts are jury functions, not
`
`those of a judge.” Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150 (2000). “[T]he
`
`court should give credence to the evidence favoring the nonmovant as well as that ‘evidence
`
`supporting the moving party that is uncontradicted and unimpeached, at least to the extent that
`
`that evidence comes from disinterested witnesses.’” Id. at 151 (citation omitted).
`
`B. Applicable Law Regarding FED. R. CIV. P. 59
`
`Under Federal Rule of Civil Procedure 59(a), a new trial can be granted to any party after
`
`a jury trial on any or all issues “for any reason for which a new trial has heretofore been granted
`
`in an action at law in federal court.” FED. R. CIV. P. 59(a). In considering a motion for a new
`
`trial, the Federal Circuit applies the law of the regional circuit. z4 Techs., Inc. v. Microsoft Corp.,
`
`507 F.3d 1340, 1347 (Fed. Cir. 2007). “A new trial may be granted, for example, if the district
`
`court finds the verdict is against the weight of the evidence, the damages awarded are excessive,
`
`the trial was unfair, or prejudicial error was committed in its course.” Smith v. Transworld
`
`Drilling Co., 773 F.2d 610, 612–13 (5th Cir. 1985). “The decision to grant or deny a motion for a
`
`new trial is within the discretion of the trial court and will not be disturbed absent an abuse of
`
`discretion or a misapprehension of the law.” Prytania Park Hotel, Ltd. v. General Star Indem.
`
`Co., 179 F.3d 169, 173 (5th Cir. 1999).
`
`3
`
`

`
`Case 2:13-cv-00213-JRG Document 352 Filed 02/17/16 Page 4 of 9 PageID #: 12469
`
`C. Applicable Law Regarding Infringement
`
`To prove infringement under 35 U.S.C. § 271, a plaintiff must show the presence of
`
`every element, or its equivalent, in the accused product or service. Lemelson v. United States,
`
`752 F.2d 1538, 1551 (Fed. Cir. 1985). First, the claim must be construed to determine its scope
`
`and meaning; and second, the construed claim must be compared to the accused device or
`
`service. Absolute Software, Inc. v. Stealth Signal, Inc., 659 F.3d 1121, 1129 (Fed. Cir. 2011)
`
`(citing Carroll Touch, Inc. v. Electro Mech. Sys., Inc., 15 F.3d 1573, 1576 (Fed. Cir. 1993)). “A
`
`determination of infringement is a question of fact that is reviewed for substantial evidence when
`
`tried to a jury.” ACCO Brands, Inc. v. ABA Locks Mfr. Co., 501 F.3d 1307, 1311 (Fed. Cir.
`
`2007).
`
`D. Applicable Law Regarding Validity
`
`An issued patent is presumed valid. 35 U.S.C. § 282; Fox Grp., Inc. v. Cree, Inc., 700
`
`F.3d 1300, 1304 (Fed. Cir. 2012). Samsung has the burden to show by clear and convincing
`
`evidence that the asserted claims were anticipated by or obvious over the prior art. Microsoft
`
`Corp. v. i4i Ltd. P’ship, 131 S. Ct. 2238, 2242 (2011). To prevail on judgment as a matter of
`
`law, moreover, Samsung must show that no reasonable jury would have a legally sufficient
`
`evidentiary basis to find for the Plaintiff. FED. R. CIV. P. 50. “Generally, a party seeking to
`
`invalidate a patent as obvious must demonstrate by clear and convincing evidence that a skilled
`
`artisan would have had reason to combine the teaching of the prior art references to achieve the
`
`claimed invention, and that the skilled artisan would have had a reasonable expectation of
`
`success from doing so.’’ In re Cyclobenzaprine Hydrochoride, 676 F.3d 1063 (Fed. Cir. 2012)
`
`(internal quotation marks omitted).
`
`4
`
`

`
`Case 2:13-cv-00213-JRG Document 352 Filed 02/17/16 Page 5 of 9 PageID #: 12470
`
`A. Non-Obviousness of the Patents-in-Suit
`
`III. ANALYSIS
`
`Samsung argues that it presented unrebutted, clear and convincing evidence that the
`
`asserted claims are invalid as obvious in view of U.S. Patent No. 5,706,428 (“Boer patent”) in
`
`combination with other prior art and is therefore entitled to judgment as a matter of law as to
`
`obviousness. (Mot. at 3–4.) In particular, Samsung argues that its expert, Dr. Goodman, testified
`
`that all but two elements of the asserted claims, including the “different types” of modulation
`
`methods, were present in and disclosed by the Boer patent: 1) the use of a master/slave protocol
`
`and 2) the requirement in claim 21 of the ’228 patent that an address be placed in the first portion
`
`of a transmission. (Id.) With regard to the use of the “master/slave protocol” and the larger issue
`
`of the disclosure of “different types” of modulation methods, Samsung argues that the Boer
`
`patent by itself, as well as in combination with the Lucent Press Release (DX1185), discloses the
`
`use of “different types” of modulation methods and that the Upender article (DX1190) in
`
`combination with the Boer patent discloses the use of the “master/slave protocol” described in
`
`the asserted claims. (Id. at 8–16.) As to the requirement in claim 21 of the ’228 patent that an
`
`address be placed in the first portion of a transmission, Samsung argues that Dr. Goodman
`
`testified that this limitation would have been obvious because “placing the address in the header
`
`[was] ‘a way of saving power’” and the limitation was disclosed in U.S. Patent No. 5,537,398
`
`(the “Siwaik patent”). (Id. at 16–19.) Further, Samsung argues that Dr. Goodman provided
`
`unrebutted testimony on motivations to combine the identified prior art. (Id. at 4.)
`
`Rembrandt responds by arguing that Samsung failed to show that prior art combinations
`
`identified disclosed the “different types” of modulation methods, as required by the asserted
`
`claims. (Dkt. No. 335 (“Resp.”) at 7.) Rembrandt also argues that Samsung failed to show that it
`
`5
`
`

`
`Case 2:13-cv-00213-JRG Document 352 Filed 02/17/16 Page 6 of 9 PageID #: 12471
`
`would have been obvious to a person of ordinary skill in the art to combine the Boer patent with
`
`the Upender article for the use of the master/slave protocol, because Upender teaches against
`
`using the master/slave protocol. (Id. at 9–13.) Rembrandt further argues that, with respect to
`
`claims 2 and 59 of the ’580 patent, Dr. Goodman’s conclusory statement regarding the claimed
`
`“reversion” of the communication back to the first modulation method, as needed, failed to show
`
`by clear and convincing evidence that such a limitation existed in the prior art. (Id. at 13–15.)
`
`With regard to claim 21, Rembrandt argues that the Siwaik patent was non-analogous prior art
`
`that was previously considered by the PTO and that Samsung failed to show any disclosure of
`
`the “first information . . . first message address data” limitation in the prior art. (Id. at 15–16.)
`
`Finally, Rembrandt argues that Samsung failed to show that it would have been obvious to a
`
`person of ordinary skill in the art to combine all the different pieces of prior art necessary to
`
`disclose all elements of the asserted claims. (Id. at 17–18.)
`
`For example, Dr. Morrow testified as follows regarding “different [modulation method]
`
`types”:
`
`Q. Now, why are those GFSK frequency modulations and DPSK phase
`modulations we just talked about of a different type under the Court’s
`construction?
`
`
`A. Well, they’re different types, because they’re in different families. You notice
`that frequency modulation is in the frequency family. The frequency is
`changed with the information. Phase modulation is in the phase family in that
`the phase is changed in accordance with the information. There are no
`overlapping characteristics between these two modulation types. So they’re in
`different families and thus different types of modulation.
`
`
`(2/10/2015 P.M. Trial Tr. (Morrow), Dkt. No. 291 at 18:13–24.)
`
`Further, Dr. Goodman testified that all of the modulation methods disclosed in the Boer patent
`
`and the Lucent Press Release vary the “phase” characteristic of a carrier signal. See (2/11/2015
`
`P.M. Trial Tr. (Goodman), Dkt. No. 296 at 17:8–13, 34:7–21; 53:1–54:13.)
`
`6
`
`

`
`Case 2:13-cv-00213-JRG Document 352 Filed 02/17/16 Page 7 of 9 PageID #: 12472
`
`Additionally, with respect to the Upender article, Dr. Goodman gave the following
`
`testimony:
`
`Q. (By Mr. Heim) And what is shown there, Dr. Goodman, are how polling rates
`were with respect to these particular conditions, correct?
`
`
`A. That’s – that’s what it says, yes.
`
`Q. And if we go to the bottom, the CSMA/CA, and if we highlight that, that row
`indicates how CSMA/CA fares with respect to those same conditions, correct?
`
`
`A. That’s what they’re presenting, yes.
`
` Q. And if we do a comparison between what they’re showing for polling and
`what they’re showing for CSMA/CA, fair to say that the CSMA/CA does
`better in almost every category, correct?
`
`
`A. Right. In their applications, yes.
`
`(2/11/2015 P.M. Trial Tr. (Goodman), Dkt. No. 296 at 63:8–20.)
`
`The jury was free to weigh the competing testimony and weigh the credibility of the
`
`witnesses. Ultimately, the jury agreed with Rembrandt’s expert. After consideration of the
`
`admitted evidence, including evidence regarding whether the Boer patent and Lucent Press
`
`Release disclosed the limitations for which they are being relied upon, the jury found that the
`
`asserted patents were valid. See (2/11/2015 P.M. Trial Tr. (Goodman), Dkt. No. 296 at 17:8–13,
`
`34:7–21; 53:1–54:13.) The Court will not substitute its judgment for that of the jury. Applying
`
`the clear and convincing standard, the jury found that the patents-in-suit were not invalid. The
`
`Court does not find that no reasonable jury could have found the asserted patents were valid
`
`based on the presented evidence. Accordingly, Samsung’s Motion for Judgment as a Matter of
`
`Law in regard to obviousness is DENIED.
`
`B. The Construction of Modulation Methods “of a Different Type”
`
`The Court previously addressed the issues of the proper construction of the terms,
`
`7
`
`

`
`Case 2:13-cv-00213-JRG Document 352 Filed 02/17/16 Page 8 of 9 PageID #: 12473
`
`“modulation method [] of a different type” and “different types of modulation methods,” as
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`raised by Samsung in this Motion. See (Dkt. No. 114 at 22–29). For the reasons set forth below,
`
`the Court declines to grant new trial on these re-urged issues of claim construction.
`
`On July 10, 2014, the Magistrate Judge issued a substantial and carefully reasoned Claim
`
`Construction Memorandum Order and Opinion after carefully considering the Parties’
`
`arguments, the patent, and the proper intrinsic and extrinsic evidence. See (Dkt. No. 114). Now,
`
`after trial has completed and a verdict had been returned, Samsung seeks to reopen the claim
`
`construction issues previously addressed.
`
`These issues have already received full and fair treatment. In the Claim Construction
`
`Order, the Magistrate Judge considered essentially the same arguments raised by Samsung in the
`
`current motion. See (Dkt. No. 114 at 22–24.) After considering both Parties’ arguments and the
`
`language of the patent, the Magistrate Judge declined to adopt the same construction now put
`
`forward by Samsung. See (Dkt. No. 114 at 22.) That decision, when made, was not clearly
`
`erroneous or contrary to the law and has not since created such prejudicial error that new trial is
`
`warranted. Accordingly, Samsung’s Motion for New Trial, based upon an allegedly incorrect
`
`claim construction, is DENIED.
`
`C. Judgment as a Matter of Law as to Non-Infringement of Claims 1, 19, 23, 29, 41, 52,
`and 58 of the ’580 Patent and Claims 1, 26, 28, 29, 50, and 51 of the ’228 Patent
`
`Samsung requests Judgment as a Matter of Law as to non-infringement of claims 1, 19,
`
`23, 29, 41, 52, and 58 of the ’580 patent and claims 1, 26, 28, 29, 50, and 51 of the ’228 patent
`
`(collectively, the “dropped claims”). (Mot. at 28–30.) More specifically, Samsung argues that the
`
`claims were withdrawn on the eve of trial, and therefore, no evidence of infringement was
`
`presented on these dropped claims. (Id.) Rembrandt responds that the present motion is an
`
`improper vehicle for Samsung’s request and is also untimely. (Resp. at 29–30.) In particular,
`
`8
`
`

`
`Case 2:13-cv-00213-JRG Document 352 Filed 02/17/16 Page 9 of 9 PageID #: 12474
`
`Rembrandt argues that these counter-claims of non-infringement were no longer live once
`
`Rembrandt filed notice of the dropped claims and thus, were never submitted to the jury. (Id.)
`
`The Court finds that Samsung’s request should be DENIED. Federal Rule of Civil
`
`Procedure 50 is clear that relief under this Rule may be appropriate only “[i]f a party has been
`
`fully heard on an issue during a jury trial” and if certain other conditions are met. FED. R.
`
`CIV. P. 50(a) (emphasis added). In this case, neither party was heard, let alone fully heard, on the
`
`issue of either infringement or non-infringement regarding the dropped claims. Accordingly,
`
`Rule 50 relief is inappropriate and Samsung’s Motion is DENIED with regard to such dropped
`
`claims.
`
`IV. CONCLUSION
`
`For the reasons set forth above, the Court finds no compelling basis upon which the
`
`jury’s verdict with regard to liability should be disturbed. The jury’s verdict in this respect is
`
`supported by substantial evidence and should stand unchanged by this Court. Further, the Court
`
`finds that Samsung is not entitled to a new trial on liability. Accordingly, Samsung’s Rule 50(b)
`
`Renewed Motion for Judgment as a Matter of Law and/or Rule 59(a) Motion for New Trial on
`
`Liability Issues (Dkt. No. 329) is in all things DENIED.
`
`9

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