Showing posts with label JMOL. Show all posts
Showing posts with label JMOL. Show all posts

Tuesday, March 26, 2019

Qualcomm loses first ITC case against Apple, recent San Diego infringement verdict loses credibility

Earlier today, an Administrative Law Judge (ALJ) of the United States International Trade Commission (USITC, or just ITC) issued a preliminary ruling in Qualcomm's favor with respect to one of the three remaining patents-in-suit (out of five originally asserted patents) in the investigation of Qualcomm's second ITC complaint against Apple. But that finding is still subject to review.

A final (apart from a possible appeal) Commission decision just came down at 5 PM Eastern Time in the investigation of Qualcomm's first ITC complaint against Apple. A different ALJ, Thomas B. Pender, had identified a violation of one patent (out of six patents originally asserted in that case), but recommended that, even if this finding had been affirmed, no import ban should have issued in light of Qualcomm's anticompetitive intentions (as the complaint targets only Intel-powered iPhones). The final ruling (PDF), however, is that there is no violation.

Apple's petition for a review of the infringement holding had been granted in December, while Qualcomm's petition for review had been denied.

As a result of the ITC finding that the sole remaining patent-in-suit being invalid (in the ITC's opinion, it fails to meet the nonobviousness requirement for patentability), any further public-interest analysis became unnecessary.

In my commentary since the Commission's determination to review the finding of a violation, I had repeatedly noted that any one out of the first eight (of nine) questions raised by the Commission on review had the potential to decide the case in Apple's favor, so from a probabilistic point of view it was relatively likely (though far from certain) that the result would be "no violation." And, in any event, Apple had already worked around that patent.

For Qualcomm, this decision is nevertheless disappointing. As I wrote about the recent jury verdict in San Diego relating to a "companion lawsuit" that mirrored the ITC complaint, that verdict is grossly inconsistent (almost an understatement) with the outcome in the ITC. Post-trial proceedings are ongoing, and Judge Dana M. Sabraw of the United States District Court for the Southern District of California still has to adjudicate Apple's motion(s) for judgment as a matter of law (JMOL). The chances of a JMOL motion have definitely improved with today's ITC decision, simply because Judge Sabraw will take note of the fact that the professionals at the ITC found no violation of the '490 patent (which is one of the patents at issue in the San Diego case). The standard for JMOL is that no reasonable jury could have found otherwise, and an ITC decision doesn't necessarily make a jury verdict unreasonable, but again, it has become more likely than before.

Qualcomm may appeal the ITC decision, and I guess it will, while Apple will appeal the upcoming San Diego judgment unless its JMOL motion succeeds with respect to all patents-in-suit (in which case Qualcomm would appeal). Both appeals will go to the Federal Circuit, and will likely be consolidated there.

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Friday, December 8, 2017

Google's Android-Java "fair use" trial win over Oracle is virtually certain to be overturned

I haven't blogged about this case in a long time and won't spend much time now, but I wish to be of service to my readers here since there doesn't seem to be any reporting in the IT press about how yesterday's Oracle v. Google Federal Circuit hearing went. To the extent anyone reported at all, it appears those reports were either written before the hearing or, if after, they're behind paywalls (or at least Google News doesn't find them).

I won't reiterate my unchanged position on the case in general and "fair use" in particular now. All that matters is what's going to happen now, and it would be a major surprise if last year's ruling by Judge Alsup in the Northern District of California, based on a jury verdict that came into being under circumstances I harshly criticized at the time, was affirmed.

The Federal Circuit yesterday published the official recording (MP3) of the hearing. The panel, which previously held the Java API declaring code copyrightable (it's no secret that this has been my view for a long time), does not appear to agree with Judge Alsup's decision to withhold evidence on non-mobile Android devices (desktop PCs etc.) from the jury. The only question at this stage appears to be whether the appeals court, after finding that this decision and possibly some others were wrong and prejudiced Oracle, will resolve the "fair use" defense by throwing it out directly as a matter of law or, at a minimum, remand for a retrial. I think the probability of a JMOL is greater than 50%.

When listening to the recording, you'll see that the appellate panel firstly was very interested in Oracle's JMOL argument and even allowed five minutes above and beyond the originally allotted time. Then Google's appellate attorney got a very rough ride. The most impressive part of the recording is the last five minutes: an amazingly powerful rebuttal statement by Orrick's Joshua Rosenkranz. This is as good as it gets.

While no one said so at the hearing, I believe Judge Alsup completely destroyed his credibility with the Federal Circuit by excluding absolutely essential and outcome-determinative evidence. He's in for a second reversal in the same case--which is unusual, but he had it coming.

When the appellate opinion is handed down, many people will be surprised that the case is still alive. But you won't be because I felt I had to tell you since, to the best of my knowledge, no other free-to-read website has done this job, at least not yet.

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Friday, September 9, 2016

Oracle files proposed notice of deposition of Google witnesses regarding discovery misconduct

On August 25, Oracle and Google filed sworn statements (and Oracle also filed an objection) regarding Oracle's motion for an Android-Java copyright re-retrial over alleged discovery misconduct and lies to the jury. Judge Alsup then ordered the parties to respond to each other's filings with new sworn declarations, which were due today.

To be of service to loyal readers following the case in detail, I have uploaded Google's declaration as well as Oracle's filing (a declaration as well as a proposed notice of deposition of Google witnesses) to Scribd.

Unfortunately, I don't have time, at least at the moment, to analyze these documents in detail and share any observations. However, I don't want this to be misunderstood as my positions on the issues in this case or my belief as to the most likely outcome having changed. So I'd like to explain, just quickly:

Due to my focus on two app development projects, my blogging has slowed down massively in recent years. For example, this is only my 36th post this year (with more than two thirds of the year already behind us), while I wrote a minimum of 40 posts in any given month of the year 2012. Some slowdown would obviously have resulted from the fact that many smartphone disputes have been settled, but not to this extent.

I'm working very hard right now to launch both games (one on iOS first, the other one on Android and iOS simultaneously) before Thanksgiving weekend. Both games are almost feature-complete, with a lot of the current efforts already relating to final touchup and testing. Both have taken much longer to develop than initially planned, but they've also become even better than I would have predicted at the outset--and those were ambitious projects from the beginning.

I have to focus as there still is some hard work on my part to be done, though I have recently stopped doing any coding myself. Now, after six years of "smartphone IP wars," there are only two really big cases pending: this copyright case here and the Apple v. Samsung design patent matter. As a right holder who has already invested a huge amount of money as well as "sweat equity" in software development, I care very much about Oracle v. Google, which is no longer really about APIs as much as it is about software copyright in general. As a potential future defendant against trolls, I'm deeply concerned about the prospect of an unapportioned disgorgement of profits over a design patent on a single icon or whatever other design.

The Supreme Court will hear Samsung's appeal in a month (one month and two days, to be precise). This is obviously not the time to reduce or discontinue my coverage of that matter. It will be over soon. I guess the decision will even come down before Christmas, or in January maybe.

By contrast, Oracle v. Google will take much longer. I honestly can't predict how much time I'll find to comment on it. It could be that I'll somehow manage to find the time to blog about it like in the past, especially because I disagree with 99% of everything else I read about that case, but it could also be that my next post on this case after this one will be my commentary on the final outcome after a settlement or after all appeals have been exhausted. Or anything in between those extremes. Whatever it may be, it has nothing to do with how important this matter is to software developers like me or with what I believe the legally and factually correct outcome should be.

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Thursday, August 25, 2016

Oracle pushing hard for Android-Java re-retrial while Google fails to justify its lies to the jury

In litigation, the devil is often in the detail, but not always. Sometimes there are overarching issues that decide a dispute and the legal detail is simply worked out in order to reach the only result that any remotely reasonable person could consider correct. The situation surrounding Oracle's push for a re-retrial is clear: Google's expert witnesses told the opposite of the truth to Judge Alsup and the jury. In Judge Alsup's case, there is evidence that the lies were outcome-determinative because he denied Oracle's first motion for judgment as a matter of law JMOL) on that basis. And with respect to the jury, there can be no reasonable doubt that its deliberations--the details of which are not known--would have been very, very, very different if Google had been unable to base its "transformative use" and "no market harm" arguments on the claim that "Java SE runs on desktops, Android is on smartphones" (because Oracle could have pointed to the Marshmallow-Chrome project as conclusive evidence that it was a lie).

Before the re-retrial is ordered (and I'm sure it will happen, be it by order of Judge Alsup or be it the outcome of an appeal that will, if it has to be filed, be a slam dunk), some procedural details concerning what went wrong in the discovery process may have to be discussed. But at the end of the day, it doesn't really matter what Google told its lawyers. All that matters is what absolute untruths Google's expert witnesses, directed by Google's lawyers, told the judge and, especially, the jury.

Google is trying to hide behind Judge Alsup's pretrial orders that limited the scope. It can run, but it can't successfully hide. Those orders were bad and unfair in their own right. So even if Judge Alsup tried to let Google get away with it, what would happen then? The whole thing would be presented to the appeals court (which is the opposite of hostil to intellectual property right holders). After the first page and a half of an Oracle opening brief, it would already be clear that this here is not just a case about software theft but also about a stolen trial.

Judge Alsup can only make things worse for himself by adopting Google's excuses the way he once adopted Google's misinterpretation of the Sega and Sony Ninth Circuit cases. Everyone knows how that one ended.

The appeals court would simply not let a judgment stand that is based on lies of the worst kind. The expert witnesses communicated those lies to the jury, but they presumably hadn't been briefed and instructed correctly. But the bottom line was that Google, as a party, lied to the jury. Even if Judge Alsup found Google's conduct excusable, the judges above him almost certainly wouldn't.

So instead of going into detail here on how certain discovery responses allegedly came into being and why certain things were said or not said or asked or not asked, I'll just highlight three things now and then I'll show you all three documents filed today (written declarations by attorneys for both parties, and an Oracle response and objection to last week's follow-up order to the motion hearing).

  1. I wrote above that the platform-related lies were outcome-determinative with respect to the denial of Oracle's first JMOL motion. Here's a sentence from that order:

    "With respect to Factor Four, our jury could reasonably have found that use of the declaring lines of code (including their [structure, sequence and organization]) in Android caused no harm to the market for the copyrighted works, which were for desktop and laptop computers."

  2. In my previous post I wrote I had also interpreted the Ninth Circuit's Jones v. Aero/chem decision (which remanded a case with certain similarities to a district court so a hearing would be held) the way Judge Alsup outlined in last week's order. But Oracle's declaration now explains that a "hearing on the motion" was actually held in the Jones proceedings, but, Oracle's lawyers explain, "[w]hat the district court had not done was hold its contemplated hearing where evidence could be presented in order to determine whether there was discovery misconduct."

  3. Google's arguments as they try to now say that the unified Android-Chrome platform is not a "full" version of Marshmallow are ridiculous. Two particularly crazy examples: they argue that "the Google Play Store is not part of (the Marshmallow version of) Android, but is rather a separate application that is available for Android," even though everybody knows that Google contractually requires Android licensees (unless they use Android on open source terms without the right to show the green robot logo etc.) to ship the Play Store (and other proprietary Google apps) with Android. And they write that "the runtime for (the Marshmallow version of) Android that can be run inside of Chrome OS does not include the Linux Kernel at the bottom of the Android stack," even though everybody with a modicum of technical knowledge knows that the Linux kernel has its own APIs that are simply not relevant to a case about the Java APIs.

    I will continue to admire Google regardless, but this is really very bad.

So now, finally, the three documents. I'll start with Google's declaration because Google is the party that really has some 'splaining to do here, followed by Oracle's response and objection (Oracle pushes hard for a re-retrial and argues that the declaration the court requested from a Google attorney is not sufficient but much more is needed to bring the relevant facts to light) and then, finally, a declaration by an attorney for Oracle.

16-08-25 Google Attorney Declaration by Florian Mueller on Scribd

16-08-25 Oracle Response and Objection by Florian Mueller on Scribd

16-08-25 Oracle Attorney Declaration by Florian Mueller on Scribd

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Sunday, August 21, 2016

Don't blame Ars Technica for the inevitability of an Oracle v. Google Android-Java copyright re-retrial

It ain't over till it's over, and Oracle v. Google is very far from over.

At a Wednesday hearing, Judge Alsup told Google that it should have disclosed its Marshmallow Chrome project. As a follow-up to the hearing, he issued an order on Thursday, which I'll quote from and comment on below:

"By THURSDAY AUGUST 25, AT NOON, Christa Anderson, counsel for Google, shall submit a sworn statement explaining why the discovery responses referenced in Court yesterday were not updated, including the full extent to which counsel knew Google's intention to launch a full version of Marshmallow, including the Google Play Store, for Chrome OS."

This could be one last chance for Google to justify the unjustifiable and, which is what I guess is going to happen, for Google's lawyers to avoid consequences for themselves. Oracle's counsel claimed at the hearin g that "they" were "LYING" to the jury. At least that was the net effect of what happened. In a fairly recent post I quoted those lies.

But who is "they" in "they were LYING?"

The expert witnesses were instructed by Google's trial counsel. It's highly unlikely--if not simply implausible--that the expert witnesses were aware of the secretive Marshmallow Chrome project whne testifying.

The net effect of this was that the jury was being lied to. The requested declaration may shed some light on how this happened and on who has to accept responsibility. But Google and its lawyers are less interested in bringing the truth to light. What they'll try to do is to reinforce the points they made at the hearing about why they thought Marshmallow Chrome was outside the scope of the trial though the Marshmallow version of Android undoubtedly was at issue.

I'll comment on that declaration once it is filed. I presume it will be made public, at least large parts of it. For now I doubt that it will change anything with respect to the likelihood of a re-retrial. And the primary reason I doubt it is that Judge Alsup would be headed for another overruling, far worse than last time, if he denied Oracle's motion for a new trial even though the appeals court will then see very clearly that

  • Google's expert witnesses told the opposite of the truth about the single most important issue in the case (given that Marshmallow Chrome affects the "transformative use" analysis as well as the assessment of market harm) and

  • Google itself made it clear, and reporters and industry watchers clearly understood, that the integration of Marshmallow into Chrome is totally unrelated to the App Runtime for Chrome (ARC). I'll talk about the Ars Technica article and its implications further below.

In the event of an appeal, the appeals court will also get to see a list of other problems (I'm sure there would be an appeal on multiple grounds, which is also what Oracle announced after the spring retrial) and a consistent pattern of Oracle being disadvantaged by the judge. At the hearing he again sought to justify some of his decisions to limit Oracle's ability to present the full story to the jury with case management arguments. I've been watching this case for more than six years now and while Judge Alsup has put case management above the truth on various occasions, he has not even been perfectly consistent (for example, he didn't care in 2012 about wasting jury time instead of firstly ruling on copyrightability but then bifurcated merits and damages on remand) except that his case management decisions have always helped Google and harmed Oracle. That kind of consistency would also be easy for the appeals court to see, and let's not forget that the Federal Circuit is generally quite sympathetic to intellectual property right holders trying to enforce their rights against infringers.

"By the same date and time, Annette Hurst, counsel for Oracle, shall submit a sworn statement setting forth, after full inquiry, the full extent to which Oracle neglected to update its discovery responses by reason, in whole or in part, of one or more rulings by the judge."

The word "neglected" in the above passage is a bit strange. All dictionary definitions of the word show that it has a very negative connotation in terms of a failure to do something a careful person should have done. A non-judgmental term would have been "decided not [to update]" or something like that. He certainly was non-judgmental in the paragraph quoted further above concerning Google's statement, though in Google's case it's now clear that something was not disclosed that should have been disclosed, while in Oracle's case it's, at best, hypothetical (it's possible that no such thing exists at all but, above all, there doesn't appear to be the slightest indication of any wrongdoing). But I've seen far worse things in connection with this case. Maybe I'm just being hypersensitive after all that has already gone awry. (Again, I'll try my best to look at the proceedings relating to a re-retrial, unless Judge Alsup denies it and the appeals court orders it (in which case it would be absolutely impossible to have too much faith in his fairness), as if nothing had gone wrong before.)

Can this part help Google? I doubt this, too. At most Oracle's response might bring up stuff that would have to be discussed at a re-retrial. But the question of whether a re-retrial is necessary has everything to do with Google's conduct and nothing with Oracle's conduct.

"The same statement shall explain why counsel repeatedly represented that the Jones v. Aero/chem decision required an 'evidentiary hearing' when that decision, as it turns out, made no mention of an 'evidentiary hearing' and instead remanded because no 'hearing' or other consideration at all had been given to the issue of discovery conduct by the district judge."

Despite my other concerns and reservations, I took a quick look at that decision and I understand that decision and the circumstances leading to it just the way Judge Alsup also describes that precedent. What I don't know is what exactly Oracle's counsel said about that case at the hearing. So let's see what Oracle files.

This, again, is nothing that can have any bearing on the pressing need for a re-retrial.

"By the same date, counsel shall meet and confer and advise the Court whether the form of judgment should be amended to reflect that it is not a final judgment but a Rule 52(c) judgment on partial findings, given that Oracle is entitled to challenge further uses of Android herein."

This paragraph here is hard to interpret because everything depends on what will happen with respect to Google's decision to keep the Marshmallow Chrome project secret from Oracle's lawyers. What's certain, however, is that it reflects the fact this dispute could get substantially broader soon.

I don't have the slightest idea of how Oracle and Google's lawyers will address this one. In my opinion, it was a final judgment that must be set aside because Marshmallow was part of the case and the jury was being lied to. However, if the case continues, it might indeed make sense to present everything to the jury including other devices than just smartphones. That is more of a question of admissible evidence to me than anything else.

Ars Technica

In my previous post I already linked to and quoted from the Ars Technica article Google's counsel presented at the Wednesday motion hearing.

Oracle's counsel called Ars Technica "the premier publication in this industry." That's hyperbole, and I attribute it to two factors. One, she obviously wanted to give that article maximum weight at the motion hearing. Two, she had written an op-ed for Ars Technica after the spring retrial.

Ars is certainly influential and widely read. And one could probably define a set of criteria based on which it would be number one. But it's not number one in this industry by all measures and standards. Also, its coverage of Oracle v. Google is neither enlightening nor fair.

Interestingly, when the author of that Ars Technica article heard about how Oracle tried to use it at the trial, he immediately felt compelled to portray another story, but for lack of knowledge about what was really at issue in the motion hearing, he actually just confirmed again why his article helps Oracle:

It is all about the underpinnings. It's about the inner workings.

That's because the App Runtime for Chrome (ARC), which according to Google could not even have passed its Android compatibility test, really was separate from Android, while the Marshmallow Chrome project serves as a great unifier.

What shocked Oracle's lawyers? Not the fact that Google would in some way, shape or form make Android apps run on Chrome. That was old news. The shocker was that Google would actually incorporate the Android Marshmallow APIs into Chrome: APIs that contain APIs Google should have licensed from Oracle a long time ago.

Many people out there have been misled. If all software developers truly understood what this case is about and what it is not (for example, the retrial was not about whether APIs are protected but just about whether Google's trial counsel could manipulate a jury by presenting witnesses who made it sound like everything related to Java, especially the APIs, was for the taking), Ars Technica's Ron Amadeo wouldn't have had to try to put his article into perspective. I'll talk about implications for developers again on some other occasion. The timing of that will very much depend on procedures. I, for my part, would be shocked if the request for a re-retrial was denied.

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Wednesday, August 17, 2016

Judge may order a new Oracle v. Google retrial over evidence unwisely withheld by Google

Thanks to Twitter coverage by Mike Swift (MLex), Sarah Jeong (Motherboard, EFF) and Ross Todd (The Recorder), I just had the opportunity to "follow" the Oracle v. Google post-trial motion hearing in the Northern District of California. Since I already shared my observations, opinions and predictions last week, I can keep this post here brief:

  • As expected, Judge Alsup is not going to agree with Oracle on JMOL. He continues to believe that the jury had a reasonable basis for reaching its verdict based on the evidence and testimony it saw/heard.

  • I'm pleased to see that Judge Alsup, Google and Oracle all affirmatively agreed with me today that Oracle could, as a last resort, bring a new copyright infringement lawsuit to raise issues that were kept out of this year's retrial. Such consensus is unusual. Google tried to somehow nuance its concession by saying "collateral estoppel issues aside," but it's unclear how that would work--not just to me but, more importantly, also to Judge Alsup.

  • Based on the quotes I read on Twitter, I initially felt that Judge Alsup was not quite inclined to order a new trial. But Oracle's counsel, Orrick's Annette Hurst, didn't give up. She pointed to how Google's lawyers had "lied" to the jury and committed "fraud" by centering a transformative-use argument around differences between personal computers and smartphones. She also dealt a blow to Google's argument that the integration of the Marshmallow APIs into Chrome OS was essentially just the same as the Android App Runtime for Chrome (ARC), and in this context she read parts of this Ars Technica article aloud. Here's an unbelievably powerful passage that makes Google's ARC-based excuse downright ridiculous:

    "The real shocker here is that this release of Google Play on Chrome OS is not based on ARC. Zelidrag Hornung, the engineering director of Chrome & Android, filled us in on the details: "We have redone this completely differently. There are no connecting points between the two projects (ARC and today's announcement) from an implementation perspective."

  • Judge Alsup told Google that at the time it decided not to disclose its Marshmallow Chrome project, "this was possibly an important point." And while he made it clear that he wasn't yet at the point of expressing his position on the new trial motion, a re-retrial definitely is a possibility, especially since he also told Google's counsel: "If I had been in your position, I would have disclosed it."

    It's also important to consider that Marshmallow was part of the retrial and the jury verdict was not about particular devices but about Android versions up to and including Marshmallow. I noted on Twitter that this is a key difference between Oracle v. Google and the various Apple v. Samsung trials, where juries made device-specific determinations on the merits and on damages.

All in all, the things I read on Twitter suggest that Judge Alsup was a whole lot more evenhanded today than at any point during the retrial and its preparations. I do believe that this "fair use" issue should never have been put before a jury in the first place, but if a new trial is ordered and the Marshmallow-related evidence becomes part of the case, even Judge Alsup's JMOL analysis (under those new circumstances) may be a different one than so far. What I consider less important is that he appears to consider a Google motion for fees "greedy" and said he might just deny it if the parties couldn't reach an agreement on this one. A motion about a few million dollars of expenses is just a sideshow in the context of a multi-billion dollar case. But the Marshmallow Chrome issue is absolutely pivotal, and in case Judge Alsup orders a re-retrial, it will be a whole new ball game and in that case I'll form my opinion on each and every decision before, during and after the re-retrial as if the things that went wrong last time had never happened in the first place. Yes, the spring 2016 retrial may soon be water under the bridge, and a correct outcome may be possible even prior to an appeal.

In retrospect it's really hard to understand what Google did here. And even harder to justify.

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Monday, August 8, 2016

Google's integration of Android into Chrome makes a third Android-Java copyright trial 100% inevitable

About a month ago, Oracle renewed its motion for judgment as a matter of law against Google and brought a Rule 59 motion for a new trial. While such post-trial motions are common and expected in high-stakes IP cases, there's much more to it here.

Unless the parties settle, it's not just likely or very likely, but absolutely certain, that there will be (at least) a third Oracle v. Google Android-Java copyright trial.

Trust me: there will be one. The only question is whether it will result from

  • a potential decision by Judge Alsup that Google is guilty of serious discovery misconduct,

  • the appeals court overruling the trial judge again, or

  • a new lawsuit that Oracle would have to bring according to Google's position.

The first of these possibilities is much more likely than I initially thought. Judge Alsup will hold a post-trial motion hearing next week. It's a safe guess that he won't agree with Oracle on JMOL. It's also a safe guess that he'll disagree with various Rule 59 arguments that are based on his own pre-trial decisions. He's afraid of Oracle's appeal (this much is sure based on the way he denied JMOL a couple of months ago) but he's not going to say that he messed up. It's hard to think of any judge who would do that but even harder to think of a judge less likely to do it than him. But Google's misconduct actually provides him with a nice exit strategy. He can avoid the potentially huge embarrassment of being overruled twice in the same case by judges who are more powerful and more IP-savvy than him, and put the blame on Google.

I have no idea whether he will do that, but it would be a very appropriate and rational thing to do. And it would be convenient, too, because he could correct some of his pre-trial errors very elegantly without having to backtrack: it would simply be a whole new ball game, especially with respect to the admissibility of evidence relating to Android's non-mobile target markets. Even the question of whether a bifurcated trial prejudiced Oracle (in my opinion, it did, even massively) could be avoided and the third trial could, for whatever case management reason, be a single trial. Furthermore, evidence that Oracle wasn't allowed to use last time to counter some utterly dishonest statements by Google's lawyers could also be admitted in the event Google were to make certain statements again at the third trial.

Judge Alsup can either seize this splendid opportunity to correct some of his mistakes or he can make another huge mistake by letting Google's lawyers get away with what they've done, which is so bad that Oracle would be very likely to get a new trial on appeal (if it doesn't succeed on JMOL anyway, which it might and in my view should, but for the appeals court it would probably also be easier to just look at the integration of Android into Chrome and simply remand for a new trial).

For the huge, game-changing implications of Google's integration of Android Marshmallow into Chrome (i.e., Android is competing with Java SE on desktop and laptop computers, not just in mobile markets), may I refer you to my post on Oracle's Rule 59 motion. Simply put, the whole "fair use" analysis changes, especially with respect to market harm and "transformative" use.

In its July 20 opposition filing, Google essentially argued that it had no obligation to make any disclosures regarding the Marshmallow/Chrome project because it had provided information regarding the Google App Runtime for Chrome (ARC). Google basically said that the integration of Marshmallow into Chrome was just an evolution of ARC ("update"), which Oracle knew about and which was "outside the scope of the retrial." A week later, however, Oracle's lawyers filed a very powerful reply brief that exposes Google's ARC-related arguments as extremely flimsy (this post continues below the document):

16-07-27 Oracle Reply in Support of Motion for New Trial by Florian Mueller on Scribd

The first thing to consider here is that Marshmallow was part of the trial (in a February 16 follow-up trial order, Judge Alsup wrote that "Marshmallow shall be added to the named versions of Android to be in play at the trial") and there was no question about whether it contained the asserted material: Google conceded this much, and the jury was instructed accordingly ("it has already been established that [Marshmallow] used [...] the declaring code and [SSO: structure, sequence and organization] of 37 Java API packages"). That already makes it a very different situation from the one concerning ARC.

On the technical side, the most important difference is, as Oracle's reply brief points out, that ARC could not have passed Google's own Android compatibility test because lots of Android apps wouldn't work with it, and even those that do wouldn't run right away without modifications.

Oracle also notes that fact discovery closed before the orders on trial scope that Google claims put the Marshmallow/Chrome project outside the trial scope. But Google couldn't know at the time what the subsequent orders would be.

What I find disgusting is that Google's technical and economic experts told the jury things that make absolutely no sense in light of Marshmallow/Chrome:

  • Google's only technical expert at trial, Dr. Astrachan, said that Android includes "libraries [that] are designed specifically for the mobile platform, which is a different platform from where the 37 [Java SE] API packages came from." He meant that desktop and laptop computers are a different type of platform. But that's exactly the Chrome market.

  • Similarly, Google's economist Dr. Leonard said "the two products are on very different devices [...] Java SE is on personal computers. Android [...] is on smartphones." In his closing argument, Google's counsel said the same: "Android is not a substitute. Java SE is on personal computers; Android is on smartphones."

There cannot be the slightest doubt that the trial could have had a different result if Oracle had been able to counter those untruths with references to Marshmallow/Chrome.

I look forward to whatever the court reporters attending next week's motion hearing will observe. There's a good chance that Judge Alsup will be very angry with Google. If he is, then a retrial will loom large.

If not, Oracle has another silver bullet for its appeal.

But if everyone told Oracle that Marshmallow/Chrome was outside the scope of that trial, Oracle could and certainly (knowing that Oracle never quits in those kinds of disputes) would file a new complaint over newer Android versions. That would also lead to a third Oracle v. Google trial, though things would take a bit longer then.

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Thursday, July 7, 2016

Oracle moves for new copyright trial against Google, renews motion for judgment as a matter of law

Despite the fact that Google's incorporation of more than 10,000 lines of Oracle's Java API declaring code into Android does not merely fall short of fair use criteria but is simply the exact opposite of fair use, a San Francisco jury, misguided by Judge William H. Alsup, misinformed by Google's manipulative attorneys and misled by questionable witnesses, found in favor of Google in May.

Thereafter, Judge Alsup, who could hardly have done a worse job handling this case, entered final judgment. At the same time, he wrote a JMOL ruling (denying the parties' pre-verdict motions for judgment as a matter of law) that, instead of actually addressing the substantive issues raised by Oracle, was a public letter to the appeals court of the "please don't overrule me again" kind, demonstrating his fear that the Federal Circuit will once again clarify that the law is what is and not what Judge Alsup, labeled by a lawyer on Twitter as a "sore loser" (in light of the previous appellate decision in Oracle's favor), wanted the jury to think it is.

While it's very obvious that this case will go back to Washington, DC, Oracle has just filed two motions. The first one is a renewed motion for JMOL (this post continues below the document):

16-07-06 Oracle's Renewed Motion for JMOL Against Google by Florian Mueller on Scribd

There is no question that Judge Alsup will deny it. His aforementioned open letter made that clear. He's now just going to hide behind the jury since he accomplished his objective: a verdict in Google's favor. But he may just have to go through the motions process now, and Oracle has requested that a hearing be held in August.

The JMOL question is extremely important because it's hard to imagine a "fair use" case where JMOL would be more warranted than here. As I've talked about that on a few occasions and will talk about it some more during the appellate proceedings, I'd now like to focus on Oracle's motion for a new trial since it raises a number of serious issues due to which the "final judgment" can't and most probably won't stand. Here's Oracle's motion (this post continues below the document):

16-07-06 Oracle Motion for New Copyright Trial Against Google by Florian Mueller on Scribd

Prior to raising several specific issues, Oracle reserves the right to pursue other bases for a new trial on appeal. Now, the issues raised explicitly in the motion:

The first argument for a new trial is that "the verdict was against the weight of the evidence." This is basically the JMOL argument, just in the context of a Rule 59 motion.

The second argument is that just after Oracled rested its case, Google announced that a full version of Android Marshmallow (one of the Android versions at issue in this case) would be released as part of ChromeOS--including the Google Play Store, i.e., all Android apps. Oracle argues that Google withheld this information (given that it presumably had been working on that project for some time) and failed to make disclosures in discovery requests.

Here's why this is a big problem: ChromeOS is a desktop/notebook/netbook operating system. That's just another huge market in which it's now competing with Java; more specifically, with Java SE. It also shows that any distinction between mobile Java and Java in general makes no sense in the Android-Java context (when it comes to harm, transformative use etc.). It was a Google-Judge Alsup smokescreen in any event, but the smoke lifted with Google's announcement--at a time when Oracle no longer had any chance to inject this issue into the rigged trial.

Oracle rightfully demands a new trial in order to be able to "present its full case, including this newly discovered and improperly withheld evidence."

The third argument relates to how Judge Alsup improperly limited Oracle's evidence of market harm to the mobile phone and tablet computer markets. Oracle recalls how it filed a supplemental complaint last summer to bring up various other Android business areas such as Android Wear. Judge Alsup, however, sided with Google on a motion in limine and told Oracle that it would have "to sue on those new products in a future trial."

The fourth argument is also about how the judge precluded Oracle's lawyers from making their strongest legitimate case. Google made the "Java was free and open" point more than thirty times in that trial, but the court did not allow Oracle to present an April 2007 email from Stefano Mazzocchi (then an Apache Foundation leader), which stated the following:

"This makes us *already* doing illegal things (in fact, Android using Harmony code is illegal as well)."

Judge Alsup required that key sentence to be redacted because it was, in his incorrect opinion, "too inflammatory and without foundation." That email actually had much more of a foundation than most of the key decisions Judge Alsup has made in this litigation so far. But the biggest problem is that Google's lawyers were able to elicit statements from Mr. Mazzochi (during examination) that he thought what Apache was doing was above board.

Those first four points are all very strong, but I personally feel very strongly about the fifth one as well. The fifth argument is that bifurcation prejudiced Oracle and that a new trial should be a single-phase trial on liability and damages.

When I saw Judge Alsup's bifurcation decision last year, I started to doubt that he was going to act fairly. And indeed, he turned out to be the most unfair judge I've ever watched in a high-profile case except in fictional movies, historic documentaries, or reports on some of the totalitarian regimes that still exist today.

Toward the end of that fifth section, Oracle says the following:

"And, bifurcation provided a structural incentive for the jury to return a defense verdict."

That is exactly right. I saw something on Twitter from one of the courtroom tweeters that indicates Judge Alsup told the jury something like "please don't let your desire to go home quickly influence your decision." Should Judge Alsup really have said so (and I wouldn't put it past him), it was a devious way of telling the jury to be smart, to get their lives back and to go back to making more money than (roughly) minimum wage.

The sixth part of Oracle's argument for a new trial is about documents that were excluded on hearsay grounds. Among other things, Oracle argues that the court "incorrectly excluded damning evidence of market harm solely because that evidence was in PowerPoint format."

All in all, the Oracle v. Google retrial was a total disgrace for the American court system, and while there are some well-liked and well-respected people who view this differently, I remain convinced that Judge Alsup will be overruled for good, by judges who are neutral, which he isn't, and smarter than him.

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Thursday, May 26, 2016

Oracle v. Google: jury finds in favor of "fair use," as no reasonable, properly-instructed jury could have

Courtroom tweeters in San Francisco have just reported that the Oracle v. Google retrial jury has found in favor of Google, i.e., has determined that Android's use of the declaring code and structure, sequence and organization of 37 Java APIs is "fair use."

This is the outcome of a rigged (for emotional, not financial reasons) retrial. It's absolutely wrong. This here is a far cry from anything any appeals court ever deemed to constitute fair use.

At the outset of the trial, I had already predicted that the jury was more likely than not to find for Google. I said 55%-60%. That was based on the fact that pretrial decisions by Judge Alsup had already favored Google, and his jury instructions on the "fair use" rules were unbelievably unfair and biased. They made it sound like the hurdle for "fair use" was rather low, while it's actually just meant to be an EXCEPTION (and copyright protection is the norm).

Also, while Google was able to present all of the "evidence" and testimony that helped its defense, Oracle had been precluded from presenting the entirety of its willful-infringement evidence.

Presumably, Judge Alsup will deny Oracle's motion for judgment as a matter of law (JMOL), if his jury instructions are any indication. Then Oracle will appeal again. I predict Oracle is very likely to succeed once again on appeal.

Judge Alsup has already said he knows there will be appeals. Last time, Oracle's appeal didn't end well for him. What the circuit judges said at the appellate hearing was anything but flattering for him.

I almost forgot to mention, before going to bed (and I'll sleep well because all's well that ends well), that a jury verdict obviously has no precedential relevance of any kind. As I wrote before the trial even started: this trial wasn't going to resolve the question of unlicensed, incompatible API reimplementations either way. Several hours before the verdict I said on Twitter that trial courts are the WRONG forum to resolve overarching, big issues--and especially in this case.

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Sunday, May 22, 2016

Google's 'fair use' defense against Oracle is an insult to human intelligence: Android's use of Java APIs violates copyright

There's a whole lot of doomsday stories out there on the Internet about Oracle v. Google, the Android-Java copyright case. In reality, the ongoing trial, in which jury deliberations will begin shortly, is not going to provide clarification regarding incompatible, unlicensed reimplementations of application programming interfaces (APIs) either way.

Let me be clear about this: I believe in pluralism, and that's why people certainly have every right to campaign against intellectual property (IP) protection of the declaring code and structure, sequence and organization (SSO) of APIs. What I do take issue with is that the anti-API IP crowd consistently advocates a misguided approach. If they wanted to talk to lawmakers on Capitol Hill about copyright and APIs, that would be democratically legitimate. If they showed a case in which a major API owner abused its rights in an anticompetitive manner, I'd most probably support a call for compulsory licensing. But after that non-copyrightability idiocy that failed at the appeals court (and that the Supreme Court declined to buy), the anti-API IP movement now picks a second inappropriate vehicle: the "fair use" exception to copyright infringement.

I'm investing a lot in software development (you'll see the results later this year) and I will fight hard against anyone seeking to unreasonably weaken software IP for purely ideological reasons. App developers like me would suffer collateral damage if anti-API IP advocates got their way on the wrong basis. On the right basis, such as compulsory licensing, I wouldn't have a problem with it. But I'll continue to speak out against a carpet-bombing of software copyright that would render even the most creative program code unprotected. That's where I draw the line, and the longer this takes, the more people will likely agree with me.

I'm 100% independent from Oracle but 100% behind its motion (filed Tuesday) for judgment as a matter of law (JMOL) against Google's "fair use" claim. And after reading Google's opposition brief, filed last night, my support for Oracle's motion is undiminished and I may be even more determined now because Google's lawyers have filed something utterly absurd.

To all you dreamers out there: it's time to wake up and face the facts. And the law.

The only regard in which Google has a point is that Sun Microsystems' management, including one of the industry's worst CEOs ever, failed to make it consistently clear to Google that the way it incorporated the Java API headers into Android was against the law. And failed to enforce. That combination of inconsistencies and weakness, however, is still a far cry from Google having had a license or that Java was "fair game." In fact, even the very Google-friendly jury in the first (spring 2012) trial accurately concluded that Google didn't actually rely upon its conduct being permitted. The retrial jury would almost certainly arrive at the same conclusion, and Oracle has shown some strong evidence that proved Google believed it needed a license at least for the sake of legal certainty, but most of the willful-infringement evidence has been withheld from the current jury by an unfair, biased, partial judge an IP lawyer (and software developer) described as a "sore loser."

JMOL in Oracle's favor is more than warranted because no reasonable, unbiased jury could possibly side with Google on "fair use" in this case. Google bears the burden of proof, but its defense is incredibly weak. You can read this in excruciating detail in Oracle's JMOL motion, which I published a few days ago. What I'll do now is point out the key deficiencies of Google's "fair use" defense, factor by factor based on the four-factor test in 17 U.S.C. § 107.

1. "the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes"

There's no dispute about this being commercial. If Judge Alsup had followed the instructions from the appeals court more clearly, he wouldn't have stricken the adverb "purely" before the word "commercial".

The availability of (most but not even all of) Android on open-source terms changes nothing about this.

Commercial use doesn't automatically defeat a "fair use" defense, but it does up the ante for Google.

Commercial nature is one of several aspects of the purpose and character of the use. The one Google mostly stresses here (and no doubt it's going to be key on appeal) is whether its use was "transformative." And it's this area in which I find Google's argument most absurd. It provides a large part of the reason for the headline of this post calling Google's defense an insult to human intelligence.

The fact of the matter is that any given API header has the same meaning in Android as it had and continues to have in Java. There's no change of expression or meaning here whatosever. So Google is making a context-based argument: Android is a mobile operating system and it's open source. I'll say it bluntly what I think of this: transformative my ass!

First, Java was in use on a huge number of mobile devices (BlackBerry, Nokia, Samsung etc.) before Android. Some of those device makers have meanwhile adopted Android, and others have more or less gone out of business. But at the time Android was launched, no one needed Google to take Java to mobile phones, and even Eric Schmidt, Google's former CEO and now the executive chairman of its corporate parent (Alphabet), conceded that BlackBerry phones were smartphones.

Second, Java was already available on open-source terms (OpenJDK) at the time, but Google didn't want to have the so-called copyleft obligation of contributing derivative works back to the free and open-source software (FOSS) community. The open-source argument is furthermore ridiculous because Android is licensed on Apache terms, meaning that anyone can take that code and build closed-source, proprietary software.

2. "the nature of the copyrighted work"

Already at the time of the first trial, exceptional creativity in API design had been conceded. There's plenty of evidence for it in the current record, such as an admission by one of Google's own witnesses that API design is more of an art than a science.

The (flawed) jury instructions suggest that something functional (such as program code) gets weaker protection than something very creative. However, here we are talking about highly creative and expressive code.

This is also an aspect that could become a big topic on appeal because it threatens to vitiate all software copyright. I also think it's at least unbalanced to suggest weak protection of software in connection with the second factor without simultaneously clarifying in connection with the first factor that functional arguments for "transformative" use are generally weaker than creative arguments. The perfect "fair use" case involves, as § 107 says, "criticism, comment, news reporting, teaching (...), scholarship, or research." I also think that parody is at a level with that list. But if you take someone's program code and simply build another program, you don't criticize, ridicule, comment, report, teach or research anything. You just steal. Nothing more than that.

It's very rare that someone uses program code for the purpose of criticism/parody. One of the very few examples I know is only a few months old: the Trump programming language. I don't think it treats the candidate fairly, but that doesn't matter: this clearly is a humorous use of program code. Android, however, is just another program, not a parody, nor commentary.

3. "the amount and substantiality of the portion used in relation to the copyrighted work as a whole"

I don't blame programmers for misunderstanding this part, but I've also seen some inexcusable nonsense from at least one lawyer about this.

While there's a lot more implementing code in those Java APIs than declaring code (as in any computer program), this factor must be seen in light of the applicable case law. Taking the "heart" of a work is what Google has done here, but there's also plenty of case law that shows even a minor percentage of an overall work is often enough to defeat a "fair use" defense. For example, the Supreme Court held in its 1985 Harper & Row v. Nation Enterprises ruling that even just copying a Gerald Ford speech manuscript of 300 words taken from a biography was enough to constitute copyright infringement.

Here we're talking about 11,000 lines of code, more lines of code than NASA used to control the Apollo moon landing.

Oracle's JMOL motion provides additional examples from the case law.

4. "the effect of the use upon the potential market for or value of the copyrighted work"

Java may still be popular in some other areas, but Oracle has shown plenty of evidence of losing business from customers such as Samsung (which is now the biggest Android device maker). Now, Google (and potentially Judge Alsup) would like to make a distinction between Java ME and Java SE. The stolen code has been taken from Java SE; Java ME was the mobile edition. But the question of whether Java ME was a derivative work of Java SE or vice versa is ultimately not going to decide this case.

Key holdings in Google Books case

Last month, the Supeme Court declined to take a look at the "Google Books" case. Earlier on, the Second Circuit had ruled in favor of Google's related fair use defense, and as I explained at the time, the rationale actually supports Oracle's case against "fair use" in connection with Android. I'd like to just quote and briefly discuss two key passages from the Second Circuit's Google Books ruling:

  • "Google's division of the page into tiny snippets is designed to show the searcher just enough context surrounding the searched term to help her evaluate whether the book falls within the scope of her interest (without revealing so much as to threaten the author's copyright interests)"

    Note particularly the part in parentheses. Google Books basically provide a teaser that can generate book sales. But Android does not use only so little of Java that programmers would ultimately prefer the real thing.

  • "Snippet view thus adds importantly to the highly transformative purpose of identifying books of interest to the searcher. With respect to the first factor test, it favors a finding of fair use (unless the value of its transformative purpose is overcome by its providing text in a manner that offers a competing substitute for Plaintiffs' books [...])"

    Here, too, the part in parentheses is key. Android crossed the line because it did become a competing substitute for Java-based mobile platforms.

The body of evidence is far stronger now than in 2012

There was enough evidence on the table back in 2012 that I called Google's "fair use" defense a fairy tale. But now there is so much more evidence, especially but not only regarding market impact, that no jury should even have to deliberate. This is a no-brainer. It's unfair use. As unfair as it gets. It may require an appeals court, though, to arrive at the correct result.

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Friday, September 18, 2015

Judge enters partial final judgment for Apple against Samsung -- Samsung said it would appeal

For the factual background of this Apple v. Samsung matter, I would like to refer you to my previous post on this one and just sum it up like this: two key Apple patents underlying the 2012 and 2013 jury verdict against Samsung have serious validity issues, one of them even at a rather advanced stage of proceeding, but the Federal Circuit had not held those patents invalid and Apple, on that basis, requested entry of partial final judgment.

Judge Lucy Koh of the United States District Court for the Northern District of California has just denied Samsung's motion for judgment as a matter of law on the '915 patent as well as Samsung's alternative request for a stay, and has entered the following partial final judgment for Apple to the tune of $548 million (this post continues below the document with a quote from a previous Samsung filing announcing an immediate appeal):

15-09-18 Partial Final Judgment Over 548 Million Dollars by Florian Mueller

In preparation of a hearing held a few hours ago, Judge Koh had asked Samsung whether it would, in the event of partial final judgment for Apple, use a bond posted back in 2012 to make a payment. Samsung replied as follows (in a supplemental case management statement):

"Samsung objects to the entry of partial final judgment and, were such judgment entered, would appeal to the U.S. Court of Appeals for the Federal Circuit pursuant to 28 U.S.C. § 1295(a)(1), arguing, among other things, that the judgment is not authorized by Fed. R. Civ. P. 54(b). See, e.g., Unitherm Food Sys. v. Swift-Eckrich [...]. Because Samsung's existing supersedeas bond [...] remains in effect, during Samsung’s appeal any partial final judgment would remain secured by the bond or any modified bond that the Court may approve, and execution of the judgment therefore would be automatically stayed pursuant to Fed. R. Civ. P. 62(d). If any partial final judgment were affirmed on appeal, Samsung would satisfy that judgment when it becomes executable and then move to release the bond."

It will be interesting to see how the Federal Circuit now addresses the issue that the United States Patent and Trademark Office has changed its mind and believes it shouldn't have granted Apple the '915 patent in the first place. The D'677 iPhone design patent is also deemed invalid on the current basis, at an earlier stage of proceeding.

It's disappointing that Apple is trying to collect money (partly) over patents it doesn't even rightfully hold based on the USPTO's current analysis. Over all these years Apple struggled to achieve a breakthrough in its patent spats with three major Android device makers (HTC, Motorola, Samsung), but recently U.S. courts, especially the Federal Circuit, have handed down some controversial decisions that may give Apple some leverage in forthcoming settlement talks. However, that leverage has its limits: it's not like Apple could prevent anyone from selling highly functional Android-based multitoch smartphones in the U.S., and it remains to be seen what comes out of those recent decisions in the months ahead. Apple is closer than ever to actually receiving a payment, but it's not there yet.

I've said repeatedly that this thing should finally be settled, but I have no idea whether those rulings make it more likely to work out (because a settlement at this stage would make Apple look stronger than it could have expected at any time since the spring 2014 trial) or less likely to happen (because Samsung and other industry players may see a pressing need to get clarification on some key legal issues, such as how to deal with patents deemed invalid by the patent office or on the value of design patents).

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Thursday, September 17, 2015

Samsung presents legal argument against 'manifest injustice' that would result from Apple's proposal

Apple and Samsung have agreed to try to resolve whatever little is left of their patent spat by means of mediation before Magistrate Judge Spero. But for now, they are fighting over whether or not Apple can collect more than $540 million in damages in the near term despite a USPTO decision according to which Apple's most valuable software patent in the 2012 trial (and 2013 retrial) shouldn't have been granted in the first place.

Apple says: "Enough is enough." It wants to finally get something out of almost four-and-a-half years of litigation with Samsung. There are, however, various ways to look at this situation. On the one hand, the fact that it takes Apple so many years to get paid calls into question the efficiency of the overall process. On the other hand, Apple also has itself to blame for a substantial part of the problem. If Apple had gone into those Android lawsuits (not just with Samsung, and not just in the U.S.) with more modest expectations, asserting its most defensible patent claims (even if those are usually not broad) and presenting reasonable damages theories (consistent with Apple's FRAND defenses, for example), then it would have received something a while ago. Apple, however, engaged in moonshot-style litigation.

Most of the time, I also believe that "justice delayed is justice denied," as the saying goes. But the solution to that problem is not an outright denial of justice. Ultimately, delayed enforcement is the lesser evil when compared to premature enforcement, as proposed by Apple, which could lead to irrecoverable payments over non-property. The Apple that demands this is not the Apple that so many people like.

Late on Wednesday, Samsung filed a reply in support of its motion to either hold the '915 (pinch-to-zoom API) patent invalid as a matter of law or stay the first California case so the USPTO can finish its job (this post continues below the document):

15-09-16 Samsung Reply in Support of '915 JMOL or Stay by Florian Mueller

It's easy to disagree with Apple philosophically on the wider issue. Invalid patents should not entitle anyone to a payment of any kind. But Apple never addressed the question of what was right or wrong: it argued that the law simply entitled it to this. Samsung's reply brief contains stronger arguments against Apple's demand for immediate (i.e., premature) enforcement than I would have expected.

Apple argued that the Federal Circuit's appellate ruling required the court to enter partial final judgment for Apple "immediately" and that the appeals court had implicitly rejected Samsung's argument that Apple's defeat before a Patent Trial and Appeals Board (PTAB) last year had the effect of collateral estoppel on the parties' first California litigation. Samsung's latest filing now points out that its notice to the appeals court came after briefing and even after the oral hearing, and no briefing took place.

Samsung's reply brief points to case law that says a district court "should not be foreclosed from considering [an] issue on remand" if there is substantial doubt as to whether it had actually been decided by the appellate panel, and then goes on to say the following:

"It is highly unlikely that the Federal Circuit chose to resolve the merits of the collateral estoppel (or stay) issues without briefing, and there is at a minimum substantial doubt as to whether these issues were decided. The issues certainly were not necessarily decided when they were raised only in a Rule 28(j) letter and were not addressed by the appellate court at all. The issues thus fall outside the scope of the mandate rule."

"Rule 28(j)" means "supplemental authority": Samsung showed the PTAB decision to the Federal Circuit in order to increase the likelihood of the appeals court holding the '915 patent invalid (which it didn't). That's different from a collateral estoppel argument or a motion for a stay.

Even this traditionally rather patentee-friendly appeals court has held that "a district court must apply intervening legal developments affecting [an] asserted patent's validity, even if the court of appeals already decided the validity issue the other way." (emphasis added) The Federal Circuit said so in its mid-2013 Fresenius decision and based this holding on "[t]he Supreme Court's decision in Simmons Co. v. Grier Bros. Co. (from 1922).

Even though the case law Samsung cites gives Judge Koh more than enough ammunition to at least stay the case, Samsung's lawyers also present an argument that would enable the district court to reject Apple's demand for premature enforcement even if the court interpreted the Federal Circuit's mandate the way Apple proposes: "Manifest injustice would warrant deviation from a decision rejecting, without briefing, collateral estoppel or a stay"

"Manifest injustice" is an accurate description of what Apple unfortunately wants here.

The second part of Samsung's reply brief argues that case law supports Samsung's theory of collateral estoppel here rather than Apple's argument that the technically non-final nature of the USPTO decision makes estoppel a non-option. That part of Samsung's argument is more about what the decisions cited by Apple did not specifically say than about what they did say. Finally, the third part explains that there should at least be a stay, considering that the Federal Circuit remanded for "any further proceedings necessitated" by its decision, giving (in Samsung's lawyers' opinion) Judge Koh every opportunity to stay those proceedings.

Toward the end of Samsung's brief I found a quote from what Judge Koh said at an April 29, 2013 hearing in this case:

"If the examiner decides not to reopen the case and Apple is forced to file a notice of appeal, then I think that that third factor may then swing into Samsung's favor, because if this an invalid patent, then certainly it would be more prejudicial and more of a tactical disadvantage to Samsung to have to do a second trial and to have to do, you know, further litigation on I.P. that may ultimately not be valid."

Considering where the '915 proceedings stood then, Samsung has made lots of headway. The examiner refused to reopen the case, and a PTAB decision affirmed the rejection.

I have previously said that the problem with some of Apple's arguments in the Samsung litigation (design patent damages, for example) are even against Apple's own interests with respect to other litigation, especially where Apple has to defend itself against patent trolls. Less than two weeks ago, Apple made the following argument in the Eastern District of Texas for a stay of case brought by a company named Smartflash LLC. Apple's argument for a stay of that case was merely based on the fact that the USPTO had initiated reexamination proceedings. Nevertheless, Apple stated all the reasons for which Samsung (on a stronger basis, since the proceedings concerning Apple's '915 patent are more advanced) is now also asking for a stay:

"Apple argues there that '[t]his is a case about money, and money would be an adequate remedy for any compensable injury to Smartflash resulting from delay,' [..] and that 'although a trial date was recently set, numerous discovery tasks remain to be completed, including the exchange of supplemental or amended expert reports for the damages retrial and related depositions, as well as motions practice, jury selection, and trial,' [...]"

I wish Apple could just put the remainder of the Samsung dispute aside and then work with companies like Samsung to defend the interests of operating companies (and I also wish Samsung would then support Apple on FRAND licensing questions such as the availability of injunctive relief and the royalty base).

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Friday, September 11, 2015

Apple to court: let us collect hundreds of millions of dollars regardless of how weak some patents are

Due to previous press reports on what Apple was going to show at Wednesday's event, there were no surprises for an informed audience, but I actually liked--as an app developer and as a user--what I saw. Before the official announcement of 3D touch I had already discussed with the lead user interface programmer on one of my projects how we were going to make use of 3D touch in that app. In my opinion, many people understimate how the lack of "right-clicks", hovering and similar alternatives has really limited smartphone app UIs for some time.

But Apple wasn't first to come up with this. As The Verge noted, Huawei brought a comparable technology to market first. That is so symptomatic of Apple's problems in patent litigation: Apple is often first to do it right, no doubt about that. But the patent system is about being first, period, and the difference between "first" and "first to do it right" is either not patentable at all or, where it is, it usually doesn't result in a scope of protection that gives a right holder serious leverage in court.

I wouldn't have thought so. I learned it over the years watching those Apple v. Android cases unfold. There came a point at which I had to face this reality, even at the risk of being portrayed as a flip-flopper on some Apple investor discussion board or wherever.

At least it's comforting to know Steve Jobs himself apparently used to think that his patents were nuclear weapons.

Apple may be an even better company under Tim Cook than it was under Steve Jobs. I just can't reconcile with Apple's aspirations to be the greatest company in human history its inexplicable approach to honor and justice in connection with invalid patents. I have no idea whether Steve Jobs would have done the same, but according to his biography, he wanted to sue Android device makers "to right this wrong" (of Google having imitated iOS; "a stolen product" in Steve Jobs's opinion) as opposed to committing a whole new wrong. The latter is, regrettably, what Apple is doing now.

Simply put, Apple wants to cash in to the tune of hundreds of millions of dollars over intellectual property rights some of which shouldn't have been granted in the first place. The one who set out in 2010 to chase thieves would become a large-scale thief himself if this happened, not in a purely legalistic sense, but in ethical terms.

The contrast between the two Apples--the one people all over the world love and the one whose patents just haven't proven to be strong enough--has never been clearer than on Wednesday. Within hours of Apple's San Francisco product event, its lawyers filed the following document, telling the United States District Court for the Northern District of California that Apple wants $540 million from Samsung irrespectively of the fact that two key patents underlying that partial award are invalid in the (latest) opinion of the very patent office that granted them (this post continues below the document):

15-09-09 Apple Opposition to Samsung Motion for Stay by Florian Mueller

In a nutshell, Apple wants a license to steal. I'm not saying that what Apple demands isn't possible under U.S. patent law: unfortunately, it could happen, especially since invalidations resulting from reexamination proceedings don't have retroactive effect with respect to damage awards in previously-concluded cases. But as the saying goes, it takes good people to do nothing in order for bad things to happen. Some people at Apple have unfortunately chosen to keep pushing for something that would be bad. Now the ball is in the court of... the court.

A little over three years ago, within only five days of the 2012 verdict in this case, I already wrote a blog post with the following headline: "The biggest issue with the Apple-Samsung jury verdict: are all those patents really valid as granted?" In that post I already offered the following prediction:

Samsung accurately noted in its post-verdict reaction that at least some of these patents are being reexamined by the patent office, and I think we are definitely going to see some invalidations there.

The invalidations have indeed happened. The '915 patent, which Apple considered its most valuable software patent in the 2012 trial, has been held invalid by the USPTO's Central Reexamination Division, a decision that has been affirmed by a Patent Trial and Appeals Board (PTAB). The reexamination of the D'677 iPhone design patent is at an earlier stage, but it took more than two years for a first Office action to come down, and it appears very solid.

Apple now argues that the '915 rejection isn't formally final because Apple will appeal any rejection decisions further. It wants a rehearing. Should the rehearing be denied or not change the outcome, Apple will appeal the case on to the Federal Circuit.

No matter how right Apple may be on any formal aspects of this, I don't understand why Apple thinks it's a good idea to request a partial final judgment in order to collect money over what appears to be, in part, non-property. Some of the patents Apple holds will, unless things change in the further process, be ultimately found never to have rightfully belonged to Apple in the first place. Apple is not entitled to a payment over such "rights" any more than it would be to the price of an iPhone from someone who never got an iPhone.

The key legal argument with which Apple's filing, shown further above, urges Judge Koh to enter a partial final judgment is that the Federal Circuit, in its mandate to the district court, directed "immediate entry of final judgment on all damages awards not predicated on Apple's trade dress claims." Apple says that the court should therefore reject Samsung's motion for judgment as a matter of law (JMOL) that the '915 patent is invalid as well as a motion for a stay.

Apple obviously wasn't going to become the first patent holder not to oppose JMOL on invalidity. But the alternative request for a stay would not hurt Apple. After the 2012 verdict Samsung already posted a billion-dollar bond (which was adjusted after the retrial). There's no risk--none at all, even if Samsung theoretically went out of business--that Apple wouldn't get paid. Apple will get paid with interest.

Since there is really no need for immediate enforcement of a partial final judgment, I wonder why the Federal Circuit ordered it at all. It benefits Apple, but it just doesn't seem right. I defended the U.S. government's FRAND-based veto of an ITC import ban in 2013 and wrote that allegations of protectionism failed the plausibility test. If U.S. courts simply allowed Apple to cash in on patents that shouldn't have been granted in the first place, instead of letting the USPTO finish its job, the question of protectionism would be on the agenda again, and the answer would be a different one than two years ago in a disparate context.

I also found it a bit strange that Judge Koh recently set a retrial date, given that Samsung's intention to appeal the design patents-related part of the case to the Supreme Court is well known. By contrast, in Oracle v. Google the district court did absolutely nothing on remand from the Federal Circuit in light of Google's Supreme Court petition, much less set a retrial date.

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