throbber
Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 1 of 39
`
`VIA TRANSPORTATION, INC.,
`
`Plaintiff/Counterclaim-Defendant,
`
`
`
`
`
`CASE NO.: 6:21-cv-00457-ADA
`
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
`
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`
`RIDECO INC.,
`
`
`v.
`
`
`
`Defendant/Counterclaim-Plaintiff.
`
`VIA TRANSPORTATION, INC.’S MOTION FOR INJUNCTIVE RELIEF,
`ADDITIONAL DAMAGES, AND OTHER RELIEF
`
`
`
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 2 of 39
`
`TABLE OF CONTENTS
`
`Page
`
`II.
`III.
`
`TABLE OF AUTHORITIES .......................................................................................................... ii
`INTRODUCTION .......................................................................................................................... 1
`ARGUMENT .................................................................................................................................. 3
`I.
`The Court Should Permanently Enjoin RideCo. ................................................................. 3
`Via suffers irreparable harm from being forced to compete against its own
`A.
`patented technology. ............................................................................................... 4
`Money damages are inadequate to compensate Via for that harm. ........................ 9
`B.
`The balance of hardships favors an injunction. .................................................... 10
`C.
`An injunction would serve the public interest. ..................................................... 11
`D.
`Absent A Permanent Injunction, Via Is Entitled To Ongoing Royalties. ......................... 13
`The Final Judgment Should Include Supplemental Damages And Interest. .................... 16
`A.
`Via is entitled to pre-verdict supplemental damages. ........................................... 16
`B.
`Via is entitled to pre-judgment interest. ................................................................ 17
`C.
`Via is entitled to post-judgment interest. .............................................................. 19
`RideCo Lacks Both Statutory And Constitutional Standing To Sue Via. ........................ 19
`The ’913 And ’743 Patents Are Ineligible For Patenting. ................................................ 21
`The ’913 and ’743 patents are directed to the abstract idea of selecting the best
`A.
`option for a ride-share trip. ................................................................................... 22
`The ’913 and ’743 patents lack any inventive concept. ........................................ 24
`B.
`The Asserted Claims Of The ’913 And ’743 Patents Are Invalid As Obvious. ............... 26
`A.
`Via’s ’785 patent is prior art. ................................................................................ 26
`B.
`The asserted claims are obvious. .......................................................................... 27
`CONCLUSION ............................................................................................................................. 30
`
`
`IV.
`V.
`
`VI.
`
`i
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 3 of 39
`
`TABLE OF AUTHORITIES
`
`
`
`Page(s)
`
`Cases
`
`ActiveVideo Networks, Inc. v. Verizon Commc’ns, Inc.,
`694 F.3d 1312 (Fed. Cir. 2012)..................................................................................................9
`
`Affinity Labs. of Tex., LLC v. BMW N. Am., LLC,
`783 F. Supp. 2d 891 (E.D. Tex. 2011) .....................................................................................15
`
`Alice Corp. v. CLS Bank Int’l,
`573 U.S. 208 (2014) ...........................................................................................................21, 24
`
`Amado v. Microsoft Corp.,
`517 F.3d 1353 (Fed. Cir. 2008)..........................................................................................13, 14
`
`Apple Inc. v. Samsung Elecs. Co.,
`809 F.3d 633 (Fed. Cir. 2015)................................................................................6, 8, 9, 11, 12
`
`Arctic Cat Inc. v. Bombardier Recreational Prods. Inc.,
`876 F.3d 1350 (Fed. Cir. 2017)................................................................................................14
`
`Bayer Healthcare LLC v. Baxalta Inc.,
`989 F.3d 964 (Fed. Cir. 2021)..................................................................................................16
`
`Broadcom Corp. v. Emulex Corp.,
`732 F.3d 1325 (Fed. Cir. 2013)..................................................................................................8
`
`Brown v. Petrolite Corp.,
`965 F.2d 38 (5th Cir. 1992) .....................................................................................................19
`
`buySAFE, Inc. v. Google, Inc.,
`765 F.3d 1350 (Fed. Cir. 2014)................................................................................................25
`
`Celsis In Vitro, Inc. v. CellzDirect, Inc.,
`664 F.3d 922 (Fed. Cir. 2012)..............................................................................................7, 10
`
`In re Cirba Inc.,
`No. 2021-154, 2021 WL 4302979 (Fed. Cir. Sept. 22, 2021) .................................................21
`
`Diamond Coating Techs., LLC v. Hyundai Motor Am.,
`823 F.3d 615 (Fed. Cir. 2016)..................................................................................................20
`
`Douglas Dynamics, LLC v. Buyer Prods. Co.,
`717 F.3d 1336 (Fed. Cir. 2013)........................................................................................4, 7, 10
`
`ii
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 4 of 39
`
`eBay Inc. v. MercExchange, LLC,
`547 U.S. 388 (2006) ...................................................................................................................3
`
`Edwards Lifesciences AG v. CoreValve, Inc.,
`699 F.3d 1305 (Fed. Cir. 2012)..............................................................................................3, 4
`
`Energy Transp. Grp., Inc. v. William Demant Holding A/S,
`697 F.3d 1342 (Fed. Cir. 2012)................................................................................................17
`
`Erfindergemeinschaft UroPep GbR v. Eli Lilly & Co.,
`No. 2:15-cv-1202-WCB, 2017 WL 2190055 (E.D. Tex. May 18, 2017) ..........................17, 18
`
`Erfindergemeinschaft UroPep GbR v. Eli Lilly & Co.,
`No. 2:15-cv-1202-WCB, 2017 WL 3034655 (E.D. Tex. July 18, 2017).................................14
`
`Finjan Software, Ltd. v. Secure Comput. Corp.,
`No. 06-cv-369, 2009 WL 2524495 (D. Del. Aug. 18, 2009) ...................................................18
`
`Fox Factory, Inc. v. SRAM, LLC,
`944 F.3d 1366 (Fed. Cir. 2019)................................................................................................29
`
`Fresenius USA, Inc. v. Baxter Int’l, Inc.,
`582 F.3d 1288 (Fed. Cir. 2009)................................................................................................13
`
`Gen. Motors Corp. v. Devex Corp.,
`461 U.S. 648 (1983) .................................................................................................................17
`
`Godo Kaisha IP Bridge 1 v. TCL Commc’n Tech. Holdings Ltd.,
`967 F.3d 1380 (Fed. Cir. 2020)................................................................................................16
`
`Henny Penny Corp. v. Frymaster LLC,
`938 F.3d 1324 (Fed. Cir. 2019)................................................................................................29
`
`Impression Prods., Inc. v. Lexmark Int’l, Inc.,
`581 U.S. 360 (2017) .................................................................................................................21
`
`Int’l Bus. Mach. Corp. v. Zillow Grp., Inc.,
`50 F.4th 1371 (Fed. Cir. 2022) ..............................................................................21, 23, 24, 25
`
`Intellectual Ventures I LLC v. Symantec Corp.,
`838 F.3d 1307 (Fed. Cir. 2016)................................................................................................24
`
`In re Killian,
`45 F.4th 1373 (Fed. Cir. 2022) ................................................................................................25
`
`Lone Star Silicon Innovations LLC v. Nanya Tech. Corp.,
`925 F.3d 1225 (Fed. Cir. 2019)................................................................................................19
`
`iii
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 5 of 39
`
`Mayo Collaborative Servs. v. Prometheus Labs., Inc.,
`566 U.S. 66 (2012) ...................................................................................................................21
`
`In re Merck & Co.,
`800 F.2d 1091 (Fed. Cir. 1986)................................................................................................29
`
`Metalcraft of Mayville, Inc. v. The Toro Co.,
`848 F.3d 1358 (Fed. Cir. 2017)..................................................................................................9
`
`NCS Multistage Inc. v. Nine Energy Serv., Inc.,
`No. 6:20-cv-277-ADA, 2023 WL 149071 (W.D. Tex. Jan. 9, 2023) ................................18, 19
`
`NCS Multistage Inc. v. Nine Energy Serv., Inc.,
`No. 6:20-cv-277-ADA, Dkt. 304 (W.D. Tex. Jan. 31, 2023) ......................................13, 14, 16
`
`Nickson Indus., Inc. v. Rol Mfg. Co.,
`847 F.2d 795 (Fed. Cir. 1988)..................................................................................................17
`
`Paice LLC v. Toyota Motor Corp.,
`504 F.3d 1293 (Fed. Cir. 2007)................................................................................................13
`
`PersonalWeb Techs. LLC v. Google LLC,
`8 F.4th 1310 (Fed. Cir. 2021) ..................................................................................................22
`
`Pfizer, Inc. v. Apotex, Inc.,
`480 F.3d 1348 (Fed. Cir. 2007)................................................................................................26
`
`Plantronics, Inc. v. Aliph, Inc.,
`724 F.3d 1343 (Fed. Cir. 2013)................................................................................................28
`
`Presidio Components, Inc. v. Am. Tech. Ceramics Corp.,
`702 F.3d 1351 (Fed. Cir. 2012)..................................................................................................3
`
`Propat Int’l Corp. v. RPost, Inc.,
`473 F.3d 1187 (Fed. Cir. 2007)................................................................................................20
`
`Rite-Hite Corp. v. Kelley Co.,
`56 F.3d 1538 (Fed. Cir. 1995)..................................................................................................18
`
`Robert Bosch LLC v. Pylon Mfg. Corp.,
`659 F.3d 1142 (Fed. Cir. 2011)................................................................................................10
`
`Sanofi-Synthelabo v. Apotex, Inc.,
`470 F.3d 1368 (Fed. Cir. 2006)..........................................................................................10, 12
`
`SAP Am., Inc. v. InvestPic, LLC,
`898 F.3d 1161 (Fed. Cir. 2018)..........................................................................................23, 24
`
`iv
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 6 of 39
`
`SRI Int’l, Inc. v. Cisco Sys., Inc.,
`14 F.4th 1323 (Fed. Cir. 2021) ................................................................................................15
`
`Tech. Licensing Corp. v. Videotek, Inc.,
`545 F.3d 1316 (Fed. Cir. 2008)................................................................................................27
`
`TecSec, Inc. v. Adobe Inc.,
`978 F.3d 1278 (Fed. Cir. 2020)................................................................................................23
`
`TEK Glob., S.R.L. v. Sealant Sys. Int’l, Inc.,
`920 F.3d 777 (Fed. Cir. 2019)..........................................................................................6, 8, 10
`
`Telcordia Techs., Inc. v. Cisco Sys., Inc.,
`612 F.3d 1365 (Fed. Cir. 2010)................................................................................................13
`
`VirnetX Inc. v. Apple Inc.,
`324 F. Supp. 3d 836 (E.D. Tex. 2017) .....................................................................................15
`
`W. Plastics, Inc. v. DuBose Strapping, Inc.,
`No. 5:15-cv-294-D, 2020 WL 5752315 (E.D.N.C. Sept. 24, 2020) ........................................18
`
`Weisner v. Google LLC,
`51 F.4th 1073 (Fed. Cir. 2022) ................................................................................................23
`
`Whitserve, LLC v. Comput. Packages, Inc.,
`694 F.3d 10 (Fed. Cir. 2012)....................................................................................................17
`
`WiAV Sols. LLC v. Motorola, Inc.,
`631 F.3d 1257 (Fed. Cir. 2010)................................................................................................20
`
`Windsurfing Int’l, Inc. v. AMF, Inc.,
`782 F.2d 995 (Fed. Cir. 1986)..................................................................................................11
`
`Statutes
`
`28 U.S.C. § 1961 ............................................................................................................................19
`
`28 U.S.C. § 1961(a) .......................................................................................................................19
`
`35 U.S.C. § 101 ............................................................................................................21, 22, 24, 30
`
`35 U.S.C. § 281 ..............................................................................................................................19
`
`35 U.S.C. § 283 ..........................................................................................................................3, 13
`
`35 U.S.C. § 284 ........................................................................................................................16, 17
`
`v
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 7 of 39
`
`Rules and Regulations
`
`Fed. R. Civ. P. 12(c) ......................................................................................................................19
`
`Fed. R. Civ. P. 50(b) ......................................................................................................................21
`
`Other Authorities
`
`J. Gregory Sidak, Ongoing Royalties for Patent Infringement, 24 Tex. Intell. Prop.
`L.J. 161 (2016) .........................................................................................................................16
`
`Lukas Foljanty, On-Demand Transit Market Report-Midyear 2024 (Jan. 26,
`2025), https://tinyurl.com/24mecptp ..........................................................................................5
`
`Lukas Foljanty, On-Demand Transit 2024 Market Report: On-Demand
`Ridepooling World Map (Feb. 8, 2025), https://tinyurl.com/74fhwacu ..................................11
`
`
`
`
`vi
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 8 of 39
`
`INTRODUCTION
`
`Via invented virtual-bus-stop technology and created the market for microtransit in the
`
`United States. Its founders saw the shortcomings of traditional forms of public transportation,
`
`including buses that follow fixed routes, inconvenient locations for bus stops, and poorly timed
`
`buses that arrive only intermittently. Via’s founders envisioned an on-demand transit system
`
`with greater flexibility that would allow riders to travel from Point A to Point B more efficiently
`
`using “virtual bus stops” placed in optimal locations across a city, along with dynamic routing
`
`that determines, in real time, where to direct passengers and vehicles. They established Via in
`
`2012 with the goal of “expand[ing] access [to public transportation] for people all over the
`
`country who otherwise don’t have access” to reliable, convenient, and affordable public
`
`transportation, whether because they do not own a car, are elderly or disabled, or are
`
`overwhelmed by traveling with kids, among other reasons. Trial Tr. 91:16-22.
`
`At first, transit agencies refused to meet with Via because they did not believe that Via’s
`
`“dynamic bus [stop]” concept could work at scale as a form of public transit. Tr. 96:5-11. As a
`
`proof of concept, Via launched a pilot service in summer 2013 in an area of New York City that
`
`lacked easy access to the subway system. Tr. 97:1-16. That service eventually expanded across
`
`New York City, and Via “worked extremely hard” to refine its software to operate at scale,
`
`eventually applying to patent its virtual-bus-stop technology in 2015. Tr. 106:5, 128:11-17. Via
`
`obtained patents covering its virtual-bus-stop invention, which combines “a very convenient
`
`ride” for passengers with “pick[ing] up as many people as possible on the way” to provide transit
`
`services. Tr. 218:21-219:7. Cities and transit agencies began taking notice of Via’s successes,
`
`and Via formed partnerships to bring microtransit to cities across the country.
`
`
`
`
`
`1
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 9 of 39
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`If the Court does not enter a permanent injunction, it should award Via ongoing royalties
`
`to compensate for RideCo’s post-verdict infringement. And in any event, the final judgment
`
`should include supplemental damages and pre- and post-judgment interest. The Court should
`
`2
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 10 of 39
`
`also grant judgment as a matter of law that RideCo lacks standing to assert the ’913 and ’743
`
`patents, and the asserted claims of those patents are ineligible for patenting and obvious.
`
`I.
`
`The Court Should Permanently Enjoin RideCo.
`
`ARGUMENT
`
`Under 35 U.S.C. § 283, courts may “grant injunctions in accordance with the principles
`
`of equity to prevent the violation of any right secured by patent.” Accordingly, the injunction
`
`analysis “proceeds with an eye to the ‘long tradition of equity practice’ granting ‘injunctive relief
`
`upon a finding of infringement in the vast majority of patent cases.’” Presidio Components, Inc.
`
`v. Am. Tech. Ceramics Corp., 702 F.3d 1351, 1362 (Fed. Cir. 2012) (quoting eBay Inc. v.
`
`MercExchange, LLC, 547 U.S. 388, 395 (2006) (Roberts, C.J., concurring)). This history
`
`developed “given the difficulties of protecting” the right to exclude “solely with monetary
`
`relief.” Id. Thus, even after eBay, “the winner of a judgment of validity and infringement may
`
`normally expect to regain the exclusivity that was lost with the infringement.” Edwards
`
`Lifesciences AG v. CoreValve, Inc., 699 F.3d 1305, 1314 (Fed. Cir. 2012) (vacating the denial of
`
`a permanent injunction).
`
`To obtain a permanent injunction, Via must show: “(1) that it has suffered an irreparable
`
`injury; (2) that remedies available at law, such as monetary damages, are inadequate to
`
`compensate for that injury; (3) that, considering the balance of hardships between the plaintiff
`
`and defendant, a remedy in equity is warranted; and (4) that the public interest would not be
`
`disserved by a permanent injunction.” eBay, 547 U.S. at 391 (majority). All four factors favor
`
`an injunction here.
`
`3
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 11 of 39
`
`A.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`4
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 12 of 39
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`5
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 13 of 39
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`6
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 14 of 39
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`7
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 15 of 39
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`8
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 16 of 39
`
`B.
`
`|pd
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`9
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 17 of 39
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`C.
`
`The balance of hardships favors an injunction.
`
`
`
`10
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 18 of 39
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`D.
`
`An injunction would serve the public interest.
`
`The public interest “nearly always weighs in favor of protecting property rights” with an
`
`injunction, “especially when the patentee practices [its] inventions,” as Via does. Apple, 809
`
`F.3d at 647.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`11
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 19 of 39
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`12
`—
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 20 of 39
`
`* * *
`
`The eBay factors warrant a permanent injunction against RideCo. Via’s proposed
`
`permanent injunction is attached to this motion.
`
`II.
`
`Absent A Permanent Injunction, Via Is Entitled To Ongoing Royalties.
`
`If the Court does not enter a permanent injunction against RideCo, the Court should
`
`“award[] an ongoing royalty for patent infringement in lieu of an injunction” until RideCo’s
`
`infringement ceases or Via’s patents expire. Paice LLC v. Toyota Motor Corp., 504 F.3d 1293,
`
`1314 (Fed. Cir. 2007) (citing 35 U.S.C. § 283). And, in the event of a permanent injunction, the
`
`Court should also award Via ongoing royalties from the date of the verdict through the end of the
`
`injunction’s sunset period for RideCo’s current infringing deployments. The jury’s damages
`
`award accounts only for RideCo’s infringing revenue through August 2022 and does not
`
`compensate Via for post-verdict infringement. Tr. 612:12-19. RideCo’s post-verdict
`
`infringement continues to harm Via, and damages continue to accrue, so this Court should “fully
`
`compensate” Via by “account[ing] for post-verdict sales.” Fresenius USA, Inc. v. Baxter Int’l,
`
`Inc., 582 F.3d 1288, 1303 (Fed. Cir. 2009); see also Telcordia Techs., Inc. v. Cisco Sys., Inc.,
`
`612 F.3d 1365, 1379 (Fed. Cir. 2010) (finding an ongoing royalty “appropriate” where the
`
`patentee “ha[d] not been compensated for [the defendant’s] continuing infringement”).
`
`As this Court has recognized, “[f]ollowing a finding of infringement by a jury, and in the
`
`absence of an injunction, a patentee is entitled to receive ongoing royalties that adequately
`
`compensate[] them for the loss of their lawful right to exclude others from profiting from their
`
`invention.” NCS Multistage Inc. v. Nine Energy Serv., Inc., No. 6:20-cv-277-ADA, Dkt. 304 at 2
`
`(W.D. Tex. Jan. 31, 2023). Furthermore, “there is a fundamental difference … between a
`
`reasonable royalty for pre-verdict infringement and post-verdict infringement.” Id. (quoting
`
`Amado v. Microsoft Corp., 517 F.3d 1353, 1361 (Fed. Cir. 2008)). After trial, the “determination
`
`13
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 21 of 39
`
`of liability” changes the “parties’ bargaining positions” and “economic circumstances,” giving
`
`the patentee more leverage in a post-verdict hypothetical negotiation. Amado, 517 F.3d at 1362.
`
`Thus, the jury’s rate sets the floor for ongoing royalties, and courts often award ongoing royalties
`
`for post-verdict infringement at a rate higher than the jury’s. See Erfindergemeinschaft UroPep
`
`GbR v. Eli Lilly & Co., No. 2:15-cv-1202-WCB, 2017 WL 3034655, at *6-7 (E.D. Tex. July 18,
`
`2017) (collecting cases). In NCS Multistage, for instance, this Court awarded ongoing royalties
`
`at $1,000 per unit—the rate that the patentee’s expert offered during trial, which was 25% higher
`
`than the jury’s award of $800 per unit. No. 6:20-cv-277-ADA, Dkt. 304 at 5-6. And in Arctic
`
`Cat Inc. v. Bombardier Recreational Products Inc., the Federal Circuit affirmed an award of
`
`ongoing royalties at double the jury’s rate, explaining that ongoing royalties can be “at or near
`
`the infringer’s alleged profit margin.” 876 F.3d 1350, 1357, 1370 (Fed. Cir. 2017).
`
`Here, the Court should award ongoing royalties at the 10% rate that Mr. Rosen testified
`
`to during trial rather than the
`
` rate that the jury awarded. See Rosen Decl. ¶¶ 30-38.
`
`Several factors justify the increased royalty rate. First, the parties’ legal relationship has changed
`
`fundamentally. RideCo is now an adjudged infringer, and Via occupies a “stronger bargaining
`
`position” than it did before the verdict. NCS Multistage, No. 6:20-cv-277-ADA, Dkt. 304 at 3.
`
`Other changed circumstances also support an upward adjustment to the royalty rate. RideCo’s
`
`annual revenue and gross profit from its infringing use of Via’s patented technology grew by
`
`% and %, respectively, between 2022 and 2024. Rosen Decl. ¶¶ 32-33. Also, since
`
`August 2022 (the latest date for which RideCo produced financial information for trial), RideCo
`
`“has implemented Via’s patented technology at an additional 7 projects in the United States,”
`
`thus increasing its infringing projects by more than 50%. Rosen Decl. ¶ 33. RideCo itself has
`
`14
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 22 of 39
`
`publicly bragged about its market growth and expansion over the last few years, and it won
`
`accolades in 2024—all for its infringing use of Via’s invention. Rosen Decl. ¶¶ 35-37.
`
`Second, as in NCS Multistage, Mr. Rosen offered trial testimony that supported a 10%
`
`rate. See Tr. 612:8-650:19. He explained his Georgia-Pacific analysis to the jury, including
`
`that: Via’s patented technology offers “significant” “real-world benefits” in “provid[ing] for
`
`faster trips at lower costs,” Tr. 628:7-629:12; Via “has never licensed the three [asserted] patents
`
`to anybody,” Tr. 631:2-13; Via and RideCo compete “head-to-head,” Tr. 632:6-9; and RideCo
`
`has used “virtual-bus-stop technology to market and win bids and has implemented and used it
`
`pretty extensively,” Tr. 642:22-25. Thus, a pre-verdict hypothetical negotiation would have
`
`resulted “in a reasonable royalty rate of no less than 10 percent.” Tr. 650:12-19.
`
`Third, RideCo’s continued infringement after the verdict is willful. Plainly, RideCo
`
`knows of Via’s asserted patents now and understands that RideCo’s system infringes those
`
`patents. Thus, RideCo’s ongoing infringement can only be “deliberate or intentional.” SRI Int’l,
`
`Inc. v. Cisco Sys., Inc., 14 F.4th 1323, 1330 (Fed. Cir. 2021). In fact, district courts apply a
`
`“general presumption that post-verdict infringement is willful.” VirnetX Inc. v. Apple Inc., 324
`
`F. Supp. 3d 836, 862-63 (E.D. Tex. 2017) (citing Affinity Labs. of Tex., LLC v. BMW N. Am.,
`
`LLC, 783 F. Supp. 2d 891, 899 (E.D. Tex. 2011)).1
`
`Together, these factors justify awarding Via ongoing royalties of 10% of RideCo’s
`
`infringing revenue. At minimum, however, Via is entitled to ongoing royalties of at least
`
`
`
`
`1 On March 31, 2025, RideCo’s counsel told Via’s counsel that “RideCo implemented a
`design/configuration change disabling what Via referred to at trial as the ‘Near’ functionality.”
`Although RideCo apparently believes that this change renders its system non-infringing, Via’s
`infringement argument was not limited to the “Near” functionality. See Tr. 444:8-465:3
`(testimony from Via’s technical expert, Dr. Valerdi). Thus, RideCo’s supposed design-around is
`not colorably different from the infringing system adjudicated at trial and continues to infringe.
`
`15
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 23 of 39
`
`of the infringing revenue, per the jury’s award. See Rosen Decl. ¶ 7; NCS Multistage, No. 6:20-
`
`cv-277-ADA, Dkt. 304 at 5. That award determines the minimum rate for ongoing royalties, and
`
`there is no basis to drop below it. See J. Gregory Sidak, Ongoing Royalties for Patent
`
`Infringement, 24 Tex. Intell. Prop. L.J. 161, 175 (2016) (study of ongoing royalty awards from
`
`2007 to 2015 finding zero cases where the ongoing award was lower than the jury’s rate). Via’s
`
`proposed order regarding ongoing royalties and other relief is attached to this motion.
`
`III. The Final Judgment Should Include Supplemental Damages And Interest.
`
`A.
`
`Via is entitled to pre-verdict supplemental damages.
`
`The jury’s damages award accounts only for infringing revenue that RideCo earned from
`
`May 3, 2021 to August 31, 2022. Rosen Decl. ¶ 6. The jury did not consider infringing acts that
`
`occurred from September 1, 2022 through the verdict on January 30, 2025, so the verdict does
`
`not fully compensate Via for RideCo’s pre-verdict infringement. Under 35 U.S.C. § 284, “the
`
`court shall award … a reasonable royalty,” and “[w]hen the damages are not found by a jury, the
`
`court shall assess them.” (Emphases added.)
`
`Assessing pre-verdict supplemental damages “merely require[s] applying the jury’s
`
`royalty rate to the undisputed actual infringing sales base.” Bayer Healthcare LLC v. Baxalta
`
`Inc., 989 F.3d 964, 986 (Fed. Cir. 2021). Here, the jury’s award of $1,385,210.90 translates to a
`
`royalty rate of
`
`, given the royalty base of
`
`. See Rosen Decl. ¶ 7; Tr. 618:13-
`
`24. Via is entitled to pre-verdict supplemental damages for RideCo’s infringing U.S. revenue
`
`from September 1, 2022 to January 30, 2025 at the
`
`% rate that the jury awarded. See Godo
`
`Kaisha IP Bridge 1 v. TCL Commc’n Tech. Holdings Ltd., 967 F.3d 1380, 1382 (Fed. Cir. 2020)
`
`(affirming pre-verdict supplemental damages awarded at the jury’s royalty rate following an
`
`accounting of infringing sales “through the date of the verdict”). RideCo produced updated
`
`financial information after the trial, and Mr. Rosen used that data to determine a “supplemental”
`
`16
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 24 of 39
`
`royalty base of $
`
`. Rosen Decl. ¶ 8. Applying the jury’s rate to that royalty base, Via
`
`is entitled to $
`
` in pre-verdict supplemental damages. Rosen Decl. ¶ 9.2
`
`B.
`
`Via is entitled to pre-judgment interest.
`
`Awarding pre-judgment interest advances “Congress’s ‘overriding purpose of affording
`
`patent owners adequate compensation’ since a patentee’s damages also include the ‘forgone use
`
`of the money between the time of infringement and the date of judgment.’” Whitserve, LLC v.
`
`Comput. Packages, Inc., 694 F.3d 10, 36 (Fed. Cir. 2012) (quoting Gen. Motors Corp. v. Devex
`
`Corp., 461 U.S. 648, 655-56 (1983)). Thus, “[a]s a rule,” courts should award pre-judgment
`
`interest under § 284 “absent some justification for withholding an award.” Id. (quoting Gen.
`
`Motors, 461 U.S. at 657); see also Energy Transp. Grp., Inc. v. William Demant Holding A/S,
`
`697 F.3d 1342, 1358 (Fed. Cir. 2012) (“The award of pre-judgment interest is the rule, not the
`
`exception.” (internal quotation marks omitted)). No justification exists here for denying pre-
`
`judgment interest, so the Court should award Via pre-judgment interest at the prime rate “from
`
`the date of infringement to the date of judgment.” Nickson Indus., Inc. v. Rol Mfg. Co., 847 F.2d
`
`795, 800 (Fed. Cir. 1988).
`
`Because RideCo held money during the infringement period that it should have “used to
`
`make royalty payments, it is reasonable to treat that money as a compelled loan from [Via] to
`
`[RideCo] and to value the loan at the rate that [RideCo] would have been required to pay on the
`
`open market for the use of that money.” Erfindergemeinschaft UroPep GbR v. Eli Lilly & Co.,
`
`No. 2:15-cv-1202-WCB, 2017 WL 2190055, at *9 (E.D. Tex. May 18, 2017); see also Rosen
`
`Decl. ¶ 15 (explaining that “Via would likely have been able to earn a return on its investments
`
`2 Via reserves the right to update the calculations for supplemental damages and interest—along
`with the relevant proposed order—after RideCo produces additional information about its current
`deployments, per the March 31, 2025 discovery hearing with the Court.
`
`17
`
`

`

`Case 6:21-cv-00457-ADA Document 299 Filed 04/10/25 Page 25 of 39
`
`at the prime rate or higher” if it had “received royalty payments on a quarterly basis”). Courts
`
`generally agree “that the prime rate best compensates a patentee for lost revenues” during the
`
`infri

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket