Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-02361/USCOURTS-cand-3_06-cv-02361-16/pdf.json

Nature of Suit Code: 830
Nature of Suit: Patent
Cause of Action: 35:271 Patent Infringement

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THE WATER GARDEN

1620 26 TH STREET • FOURTH FLOOR • NORTH TOWER • SANTA MONICA, CA 90404-4060

TELEPHONE: 310-907-1000 • www.agsk.com • FACSIMILE: 310-907-2000

ALSCHULER GROSSMAN L L P

ATTORNEYS AT LAW

WILLIAM J. O'BRIEN OUR FILE NUMBER

ATTORNEY AT LAW

wobrien@alschuler.com

Direct Dial: 310-255-9033

Direct Fax: 310-907-2033

January 5, 2007

BY ELECTRONIC FILING

Honorable Joseph C. Spero

United States Magistrate Judge 

United States Courthouse 

450 Golden Gate Avenue 

Courtroom A, 15th Floor 

San Francisco, CA 94102-3483

Re: Netflix v. Blockbuster

U.S. District Court Case No: C 06-02361 WHA (JCS)

Joint Letter Regarding Issues on Pending Discovery Motions

Dear Judge Spero:

After extensive negotiations, Plaintiff and Counterdefendant, Netflix, Inc., and 

Defendant and Counterclaimant, Blockbuster Inc., have succeeded in resolving all but two of the 

issues in contention in the three discovery motions that were filed November 3, 2006, and are 

currently scheduled for hearing on January 12, 2007. The parties’ agreements on the other 

issues are set forth in the Stipulation Regarding Discovery Disputes that was filed on 

December 15, 2006.1

The two issues remaining for decision both relate to Netflix’s Motion for 

Protective Order as to certain Blockbuster document subpoenas to third parties. The remaining 

issues are: 

1. Netflix’s motion for a protective order directed to Categories 16 and 17 of 

Blockbuster’s document subpoenas to NBC Universal, Yahoo!, Sony Pictures, Paramount 

Pictures, The Walt Disney Company, Warner Bros., Best Buy, Fox Entertainment, AOL, and 

Microsoft (collectively, the “Studio and Internet Subpoenas”); and 

2. Netflix’s motion for a protective order directed to Blockbuster’s Subpoena 

to the Gutride Safire law firm, which was counsel for the plaintiff in Chavez v. Netflix, a classaction lawsuit against Netflix in the San Francisco Superior Court. 

1 A corrected version of that Stipulation was filed on December 19, and the Court entered an 

Order pursuant to the corrected Stipulation on December 20. 

12460-206704

Case 3:06-cv-02361-WHA Document 125 Filed 01/08/07 Page 1 of 2
Honorable Joseph C. Spero

January 5, 2007

Page 2

Since filing the Stipulation Regarding Discovery Disputes, the parties have 

continued to discuss possible resolution of these two remaining issues. The parties have 

exchanged proposals and made progress towards that end. There now appears to be a serious 

prospect of reaching a further agreement that would resolve the remaining issues and eliminate 

the need for any further Court proceedings on the pending discovery motions. Additionally, 

even if a complete resolution is not achieved – as hoped -- the parties may succeed in further 

narrowing the issues. However, the negotiations now in progress are likely to require a few more 

days. 

With the status of the remaining issues and the parties’ positions in flux, Netflix 

and Blockbuster believe that deferring briefing of the remaining issues for a few days would 

increase the chances of a negotiated resolution. The parties jointly request the Court’s 

indulgence in permitting them to either submit a stipulation resolving all remaining issues by 

Wednesday, January 10, 2007, or to set forth by letter on that date any remaining issues and the 

parties’ respective positions, along with a submission of their respective proposed orders. 

The parties and their counsel thank the Court for its assistance. 

Respectfully submitted,

/S/

Eugene M. Paige

of Keker & Van Nest LLP 

Attorneys for Netflix, Inc.

/S/

William J. O'Brien

of Alschuler Grossman LLP 

Attorneys for Blockbuster Inc.

WJO:js

Dated: Jan. 8, 2007

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

Judge Joseph C. Spero

Case 3:06-cv-02361-WHA Document 125 Filed 01/08/07 Page 2 of 2