Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_05-cv-04472/USCOURTS-cand-5_05-cv-04472-12/pdf.json

Nature of Suit Code: 830
Nature of Suit: Patent
Cause of Action: 15:1126 Patent Infringement

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JOINT STIPULATED MOTION FOR VACATUR AND [PROPOSED] ORDER - 1 - 

CASE NO. C05-04472 PVT 

TOWNSEND AND TOWNSEND AND CREW LLP 

THEODORE T. HERHOLD (State Bar No. 122895) 

JOHN E. LORD (State Bar No. 216111) 

ERIC M. HUTCHINS (State Bar No. 245462) 

379 Lytton Avenue 

Palo Alto, California 94301 

Telephone: (650) 326-2400 

Facsimile: (650) 326-2422 

E-mail: jelord@townsend.com 

 emhutchins@townsend.com 

Attorneys for Plaintiff 

FORTERRA SYSTEMS, INC. 

UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

SAN JOSE DIVISION 

Forterra Systems, Inc., a California corporation, 

Plaintiff, 

v. 

Avatar Factory, a California corporation, 

IMVU, Inc., a Delaware corporation, and 

William D. Harvey, an individual, 

Defendants. 

 Case No. C05-04472 PVT 

JOINT STIPULATED MOTION FOR 

VACATUR AND [PROPOSED] 

ORDER 

 

Plaintiff Forterra Systems, Inc. ("Forterra"), and Defendants William D. Harvey, Avatar 

Factory, and IMVU, Inc. (collectively "IMVU") jointly move this Court to vacate the claim 

construction order in the above-captioned case. Neither party to this patent infringement action 

opposes this motion, which is brought in the interests of equity, and as a condition of settlement. 

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Case 5:05-cv-04472-PVT Document 136 Filed 10/26/07 Page 1 of 5
 

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JOINT STIPULATED MOTION FOR VACATUR AND [PROPOSED] ORDER - 2 - 

CASE NO. C05-04472 PVT 

Forterra and IMVU have reached a settlement regarding Forterra's allegations that IMVU's 

"IMVU.com" product infringes upon Forterra's U.S. Patent No. 6,784,901.1 As part of the settlement, 

Forterra and IMVU have agreed that this Court's Claim Construction Order of October 3, 2006, should 

be vacated because, as a result of the settlement, the parties waive their respective rights to appeal the 

claim construction order to the Court of Appeals for the Federal Circuit for review. 

The Ninth Circuit has held that 

a district court may vacate its own decision in the absence of 

extraordinary circumstances . . . in light of the consequences and 

attendant hardships of dismissal or refusal to dismiss and the competing 

values of finality of judgment and right to relitigation of unreviewed 

disputes. 

American Games, Inc. v. Trade Products, Inc., 142 F.3d 1164, 1168 (9th Cir. 1997). This 

Court, likewise, has held that "when mootness results from settlement, a district court may grant 

vacatur of its own judgment when equitable considerations counsel in favor of vacatur; a finding of 

exceptional circumstances is not required." Davis, Cowell & Bone, LLP v. Social Sec. Adm., 281 

F.Supp.2d 1154, 1156 (N.D. Cal. 2003); see also Persistence Software, Inc. v. The Object People, 

Inc., 200 F.R.D. 626, 627 (N.D. Cal. 2001) (citing American Games as establishing the test for district 

court vacatur under Fed. R. Civ. P. 60(b)); Blair v. Shanahan, 919 F. Supp. 1361 (N.D. Cal. 1996). 

Here, equitable considerations favor vacatur. First, vacatur would not impose hardship upon 

any party to this action. Each party on both sides of this action have joined in and consented to the 

present motion. Second, vacatur would not interfere with the finality of judgment. There is no 

judgment against IMVU arising from this action, and the parties have entered into a settlement 

agreement. Third, vacatur would assure Forterra a means by which it can continue to fully enjoy its 

rights in the '901 patent. Without vacatur, execution of the settlement agreement forecloses Forterra 

from appealing claim construction to the Federal Circuit. 

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 The parties have concurrently filed a Stipulated Order of Dismissal. 

Case 5:05-cv-04472-PVT Document 136 Filed 10/26/07 Page 2 of 5
 

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JOINT STIPULATED MOTION FOR VACATUR AND [PROPOSED] ORDER - 3 - 

CASE NO. C05-04472 PVT 

For these reasons, Forterra and IMVU ask the Court to vacate its Claim Construction Order of 

October 3, 2006. 

DATED: October 9, 2007 Respectfully submitted, 

By: /s/ John E. Lord 

John E. Lord 

Eric M. Hutchins 

TOWNSEND AND TOWNSEND AND CREW LLP 

379 Lytton Avenue 

Palo Alto, California 94301 

Telephone: (650) 326-2400 

Facsimile: (650) 326-2422 

Attorneys for Plaintiff 

FORTERRA SYSTEMS, INC. 

DATED: October 12, 2007 Respectfully submitted, 

By: /s/ Alan J. Heinrich________________ 

Alan J. Heinrich 

Richard E. Lyon 

IRELL & MANELLA LLP 

1800 Avenue of the Stars, Suite 900 

Los Angeles, California 90067-4276 

Telephone: (310) 277-1010 

Facsimile: (310) 203-7199 

Attorneys for Defendants 

AVATAR FACTORY, IMVU, INC., AND 

WILLIAM D. HARVEY 

Case 5:05-cv-04472-PVT Document 136 Filed 10/26/07 Page 3 of 5
 

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JOINT STIPULATED MOTION FOR VACATUR AND [PROPOSED] ORDER - 4 - 

CASE NO. C05-04472 PVT 

GENERAL ORDER 45 ATTESTATION

 I, John E. Lord, am the ECF user whose ID and password are being used to file this JOINT 

STIPULATED MOTION FOR VACATUR AND [PROPOSED] ORDER. In compliance with 

General Order 45, X.B. I hereby attest that Alan J. Heinrich has concurred in this filing. 

DATED: October 12, 2007 Respectfully submitted, 

By: /s/ John E. Lord 

John E. Lord 

Eric M. Hutchins 

TOWNSEND AND TOWNSEND AND CREW LLP 

379 Lytton Avenue 

Palo Alto, California 94301 

Telephone: (650) 326-2400 

Facsimile: (650) 326-2422 

Attorneys for Plaintiff 

FORTERRA SYSTEMS, INC. 

Case 5:05-cv-04472-PVT Document 136 Filed 10/26/07 Page 4 of 5
 

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JOINT STIPULATED MOTION FOR VACATUR AND [PROPOSED] ORDER - 1 - 

CASE NO. C05-04472 PVT 

PROPOSED ORDER TO VACATE CLAIM CONSTRUCTION ORDER 

It is ORDERED that the October 3, 2006 Order Re Claim Construction of United States Patent 

No. 6,784,901 is hereby VACATED. It is the Court's intention that the vacated Order shall have no 

preclusive effect in this or any other proceedings. 

IT IS SO ORDERED. 

DATED: October ___, 2007 

By: 

Hon. Magistrate Judge Patricia V. Trumbull 

United States District Court Judge 

61143037 v2

.

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Case 5:05-cv-04472-PVT Document 136 Filed 10/26/07 Page 5 of 5