Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_04-cv-02000/USCOURTS-cand-4_04-cv-02000-81/pdf.json

Nature of Suit Code: 830
Nature of Suit: Patent
Cause of Action: 28:1331 Fed. Question

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United States District Court

For the Northern District of California

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United States District Court

For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

MONOLITHIC POWER SYSTEMS, INC.,

Plaintiff,

 v.

 02 MICRO INTERNATIONAL LTD., et al.,

Defendants. /

No. C-04-02000 CW (EDL)

CONSOLIDATED WITH

No. C-06-2929 CW (EDL)

ORDER RE O2 MICRO’S MOTION TO

COMPEL FURTHER DEPOSITION

TESTIMONY AND RELATED

DOCUMENTS FROM DEFENDANTS

MONOLITHIC POWER SYSTEMS, INC.

AND MICHAEL HSING

O2 Micro International, Ltd. filed a motion to compel Monolithic Power Systems, Inc. and

Michael Hsing to produce documents and testify in deposition about certain grants of stock options. 

O2 Micro contends that the discovery is related to an unfair competition claim O2 Micro brought in

Case No. C06-2929 CW (EDL), which was consolidated in August 2006 with Case No. 04-2000. 

MPS and Michael Hsing object to “stock option” discovery on the grounds that both actions are

bound by the Court’s prior order in June 2006 holding that such discovery was outside the scope of

relevance, and also that discovery should not be had because the unfair competition claim was

meritless. MPS and Michael Hsing have refused to produce documents or testify on the subject. 

The motion to compel was originally noticed for hearing on February 27, 2007. However,

following MPS’s request for a continuance and with the parties’ consent, the Court addressed the

merits of the motion during a telephonic hearing on February 22, 2007. Present at the telephonic

hearing were Matthew Brigham for MPS and Henry Su for O2 Micro. Upon full consideration of

the papers and the parties’ arguments at the telephonic hearing, and for the reasons stated by the

Court at the telephonic hearing, the Court hereby vacates the February 27, 2007 hearing on this

motion and GRANTS O2 Micro’s motion as follows:

Case 4:04-cv-02000-CW Document 772 Filed 02/26/07 Page 1 of 2
United States District Court

For the Northern District of California

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The two consolidated cases involve related but not identical claims. The second case for the

first time includes an unfair competition claim which expressly alleged that stock options were used

to induce infringement. See Third Amended Complaint, ¶ 28 (alleging that MPS and Hsing made

agreements with certain employees of MPS’s customers to grant MPS stock options to those

individuals, so as to entice them to enter into and/or maintain a customer relationship with MPS). 

This unfair competition claim survived a motion for summary judgment and will proceed to trial. 

See February 16, 2007 Minute Order (Doc. No. 759). Therefore, the claim is active and discovery

on the issue is within the permissible scope of discovery under Rule 26(b)(1). See Fed. R. Civ. P.

26(b)(1) (a party may seek discovery regarding any matter, not privileged, that is relevant to the

claim or defense of any party). The Court’s June 12, 2006 order limiting stock option discovery was

entered prior to consolidation in the context of only the C04-2000 matter, which contains no unfair

competition claim. Accordingly, MPS and Michael Hsing’s objections to discovery are overruled.

The Court hereby overrules MPS’s and Michael Hsing’s objections and orders them to

produce responsive documents. In addition, if necessary to obtain testimony that was refused during

deposition, O2 Micro may reopen the depositions of MPS and Michael Hsing, not to exceed two

additional hours, for that limited purpose. 

IT IS SO ORDERED.

Dated: February _26____, 2007 

ELIZABETH D. LAPORTE

United States Magistrate Judge

Case 4:04-cv-02000-CW Document 772 Filed 02/26/07 Page 2 of 2