Free Declaration - District Court of Delaware - Delaware

Case 1 :04-cv—00884-SLR Document 71 -1 1 Filed 07/17/2006 Page 1 of 4

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i Eiasiaess fiiiaatiari ferrari
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Over the ast several ears, e-discove u as arties confront the d namic
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—— the discovery of electronically nature of electronic storage systems,
stored information — has evolved the inadvertent and often automatic
4 from a rarity to perhaps the central and deletion of relevant electronically stored
,_ most burdensome aspect of discovery. information, the burden and expense
The volume of electronically stored of retrieving electronically stored
iii` information is often substantially larger information stored in older technologies,
r, than that of hard copy records, making the generation of automatic metadata
it more time-consuming and costly for and the information it contains, and
liti ants to retrieve, review and roduce. the fact that hard-co rint-outs of
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lr .,r, , Si nificant motion ractice has s run documents stored electronicall ma not
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at ~ s ws (continued rzextpage)
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‘ lwi Lawyf-*¤‘ 2 It’s nice to be recognized for winning big,
Q _ _ _ I _ _
el *‘“’ il°°mh’ = and even better when the b1g wins keep rolling rn. In its ]une 5, 2006 ISSUC, T/we
iv': rr `L ur i . - · · ·
my K Pm `Y . Nnrwmzl Lrzwjaurnnl named Quinn Emanuel partner Bill Price one of its ten top
a >e 7 = . . . . . . . . .
5 I winning htrgators. Bill rs the only attorney in the country to receive this honor from
-~ , ( _ , _ » the NL] in two of the last three years. In honoring Bill in 2006, the NL] cited his
· brnnmary_;uegrm:nr in _ _ _ _ _ _ _
eww ( RW and recent vrctory assertrng Freedom Wrrelesss patents on pre-paid cellular services against
·· , 5 · · a number of re- aid cellular service roviders, includin Boston Communications
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ggm,,mm·; \!g(~ » —‘ Grou and Cin ular. There, a `u returned a verdict of over $128 million. In 2004,
Lx>1&c5> A
Page 6 the NL] named Bill a top ten trial lawyer based on a track record of defense trial ,
victories and a victo in Buertner é' Wn Blmtmizz zz. Bertelsmann A.G., which netted
. » *7
‘ Qwm l»2“·'Y¢"$ 1*¤r¤¤¤a ; a $250 million 'u verdict for two former executives in a breach of contract case.
i<>i¤ \‘¤’<>¤¤<¢¤ i·¤¤¤r;¤¤<>r¤ . . . .... . ...... . r ....... . . ...... . .... . ..,. . ..... . ,.... ..... .....,............... . .....................,,,,,...,......... . ...,. rr ......, r rr .....,.,.... ..,.. . ....,. . ..... .
in C.Zalili>mia i
>. v 4 as .· _ ir ·,
. ldiif ’ ag;
* {Noted \%'1U`l lrnetest:
\Y/iixat lrrrors l<.r:ow rr » · · -
,___ _ , ; _,_, __ ` Once called a scourge on patent dealing with the patent examiner,
(or l lnmt ll`l<§`*y'l.\I1OW) . . . . . . .
. ‘ ., lrtr ation, the me urtable conduct me urtable conduct occurs when the
an llviem Laces q q
pw _';' W defense is gaining greater acceptance applicant or its attorney has submitted
C in the U.S. Court of Appeals for the false information, or omitted material
. " ya 1 I ,, v Federal Circuit, which has exclusive information, with the intent to deceive
Quinn . I\e x \’,>.»<
O·§iiee Moves jurisdiction over patent appeals. or mislead the examiner into granting
Page i2 iilnequitable conduct" is a judicially- the patent.
( wwri created, equitable defense to patent
infrin ement, which, if successful, Histar . Durin the 1980’s, the Federal
J'
renders unenforceable a arent that Circuit attem ted to rein in what
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may otherwise be valid. Defined as many had seen as a rampant misuse
misconduct b a arent a licant in of the ine uitable conduct defense.
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(continued on pug: 4)


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5 _ Case 1 :04-cv—00884-SLR Document 71 -1 1 Filed 07/17/2006 Page 3 of 4
12, 2006). For example, electronically information, and approaches to
g stored information normally maintained asserting claims of privilege or work-
i in a searchable database may not be product protection for electronically
¤ Tp; gmgygdmgygy produced in hard copy unless hard copy stored information. The parties will be
is specifically requested. Additionally, required to report the results of that
mdkg Mfjmixl Ckfmggf a party who produces electronically discussion to the court.
I/mt. muyél Syféstdyltidgy stored information in response to either aa Parties will be required to include
a document request or interrogatory may their electronically stored information
€£’d”§€’ 6"i$€`0?’€’7’}’ be obligated to assist the requesting party in Rule 26(a) initial disclosures, either
pwimifcsd in reviewing that electronically stored by producing it or by describing it by
information by `isome combination category and location.
of technical support, information on The Court will be permitted to
application software, or other assistance? include provisions for e-discovery in its
f Fed. R. Civ. P. 33 (d) advisory Rule 16 (b) scheduling order.
i committee’s note (Apr. 12, 2006). Instead of answering an interrogatory,
Finally, the amendments permit a a party may describe the electronically 3
· requesting party to test or sample another stored information (or documents)
I party’s electronically stored information containing the answer and provide the
and documents instead of inspecting and requesting party access to those materials
copying it. Additionally, sampling will be (so long as the burden of finding the
permitted in connection with discovery answer among those records would be
. on a motion to compel production of substantially the same for either party).
_ electronically stored information claimed Third-party subpoena recipients will
to be “not reasonably accessible.” Fed. be required to produce electronically
R. Civ. P. 45 (as amended Apr. 12, stored information, when specifically
2006). Although the Committee Notes requested to do so.
claim that “ [t] he addition of testing Document requests may contain
i and sampling. . .is not meant to create a specific requests for electronically
routine right of direct access to a party’s stored information. Responses to such
electronic information system,” there will requests may contain specific objections
be no statutory limit on when testing or to the requested electronically stored
[)z$/l"i}2g` Zaire Rule 266/) sampling is permissible. Fed. R. Civ. P. information, such as objections to the
i 34(a)(1) 8L advisory committee’s note requested form of production or that
g case mamzgemezzf . .
(Apr. 12, 2006); see also Fed. R. Civ. P. the requested electronically stored
c‘0?(fi?1‘c?zce,_j}rzrzi2$ wif! 45 SC advisory committees note (Apr. 12, information is not reasonably accessible.
! } ) { _ · J dg ’ Q 2006). Thus, the inclusion ofthe right A party will not be required
M MQW? 6 M ’ ISC M5 to test and sample creates a serious risk of to produce electronically stored
1 €_6,[i5c.m,m3_, i5_m&,_ discovery abuses. At the very least, this information that is “not reasonably
- provision is likely to generate substantial accessible because of undue burden
j motion practice. or cost” if it identifies “by category
Additional changes to the discovery or type” the sources of potentially
and litigation process that will occur as responsive electronically stored
i a result of the amendments include: information that it has not searched
‘ During the Rule 26 (f) case or produced and can prove such
` management conference, parties will electronically stored information is not
V be required to discuss e-discovery reasonably accessible. However, this
issues, including how electronically does not relieve a party of preserving
_ stored information will be preserved, that electronically stored information.
the form in which electronically If the requesting party shows good
stored information will be retrieved cause, a court may order discovery of
p and produced, who will pay for the that electronically stored information,
production of electronically stored but may specify conditions for that
(continued on back page)

Case 1 :04-cv—00884-SLR Document 71 -1 1 Filed 07/17/2006 Page 4 of 4
( continued from cover page)
In Burlington Industries, Inc. zz. Dayco Dickinson Vascular/lccess, Inc., 120
Corp., 849 F.2d 1418 (Fed. Cir. 1988), F.3d 1253 (Fed. Cir. 1997). These cases
the court remarked that “the habit break with previous Federal Circuit
of charging inequitable conduct in precedent which held that a party
. almost every mgjgr Patcnf Case has Cl'l3.I'g1I`1g 1HCqLll[3.b1C conduct HIUSIC Sl'lOW
. become an absolute plague,” and took materiality and intent separately; that is,
``'lr steps to impose objective standards of there must be evidence not only that the
proof Id. at 1422. After this change, omitted or misleading information was
__ alleged patent infringers who claimed known to be material, but that it was
the inequitable conduct defense were omitted or submitted with knowledge
_:g_ Q; required to show that the patent and intent to deceive. See Allen Organ
‘i Q applicant acted intentionally, and Co. v. Iémball Int’l, Inc., 839 F.2d
`_ not merely negligently, in misleading 1556 (Fed. Cir. 1988). The recent cases
the Patent Office and could not infer appear to collapse these requirements: if
4 deceptive intent from the failure to the patent applicant knew that omitted
disclose a material fact. See Kingsdown or misleading information was highly
Med. Consultants, Ltd zz. Hollister; Inc., material, it follows that the failure
_i 863 F.2d 867 (Fed. Cir. 1988). to disclose or correct such material
* Recently, however, the Federal information was intentionally deceitful.
» Circuit has been more hospitable to Under this less stringent “should
I 1 inequitable conduct claims and has been have known” intent standard, several
‘ accused of “resurrect[ing] the plague fact patterns have emerged in recent
· of the past.” Ferring BM v. Barr Labs., Federal Circuit case law that illustrate
Inc., 437 F.3d 1181, 1197 (Fed. Cir. the sort of misleading or omitted
2006) (Newman, ]., dissenting). In t information that will support a finding
Ferring for example, the court affirmed of inequitable conduct. For example,
a finding of inequitable conduct without the Federal Circuit has emphasized
direct evidence of intent to deceive the the need to disclose relationships
Patent Office. The Court found that between the patent applicant and
evidence suggesting that the applicant authors of supporting declarations,
“should have known” that the omission particularly where these declarations
Beczzrtse arti}! the of material information would mislead are purportedly from disinterested
A digit L; I fixing the Patent Office was sufficient. third parties. In Ferring; the Federal
P n pp n A Circuit affirmed the district court’s
presents irrformatim; Case Law. Ferringjoins a handful of finding of inequitable conduct based
_ i _) H , , _ Federal Circuit cases in the past several on the patent applicants failure to
{0 thi) {mimi OZTWQ years in which the Federal Circuit disclose ties between the non-inventor
{gg, jlgfffimj C,g,,Cuj,· appears to infer intent to deceive the scientists submitting declarations
Patent Office, based on a °°should have in support of the application and
“PI"?m`5 fg be Sfrffffif known” standard when the omitted the patent applicant. Ferring B.V.
e”fgH,i?2g Dim or misleading information is known and Irventis Pharmaceuticals, Inc.,
to be highly material. See generalbw originally brought suit against Barr
applicant'} duty Bruno Ina/ep, LioingAia{r, [nr, o, Acorn Laboratories, Inc. for infringement
Ofcmidgn Mobility Servs., Ltd, 394 F.3d 1348 of Ferring’s patent. Barr moved for
I (Fed. Cir. 2005); Bristol-Myers Squibb summary judgment, claiming that
Co. 11. Rhone-Poulenc Rorer; Inc., 326 the patent was unenforceable due to
F.3d 1226 (Fed. Cir. 2003); GEL Inc. inequitable conduct.
_ v. Franklin Corp., 265 F.3d 1268 (Fed. The inequitable conduct charge
Cir. 2001), cert. denied, 537 U.S. 1046 stemmed from declarations Ferring
(2002); Semiconductor Energy Lab. Co. submitted in support of its application,
12. Samsung Elec:. Co., 204 F.3d 1368 after the Patent Office repeatedly
(Fed. Cir. 2000); Critikon, Inc. zz. Becton rejected the patent claims. Concerned
(continued on page 8)