81,7('67$7(6',675,&7&2857

($67(51',675,&72)0,&+,*$1

6287+(51',9,6,21

)RUG0RWRU&RPSDQ\

3ODLQWLII&RXQWHU'HIHQGDQW

Y

9HUVDWD6RIWZDUH,QFIND7ULORJ\

6RIWZDUH,QF9HUVDWD'HYHORSPHQW

*URXS,QFDQG7ULORJ\,QF

'HIHQGDQWV&RXQWHU3ODLQWLIIV

&DVH1R0)/($6

(Consolidated with Case No. 15-cv-11624) 

+RQ0DWWKHZ)/HLWPDQ

-85<75,$/'(0$1'('

9(56$7$'()(1'$176¶5(63216(72)25'¶6027,21)25

6800$5<-8'*0(17219(56$7$¶675$'(6(&5(7

0,6$335235,$7,21&/$,06$*$,1673'25

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50162 Page 1 of 25
LL

7$%/(2)&217(176

, ,1752'8&7,21

,, $5*80(17

$ 3'25LVWKH1H[W5HOHDVHRI3'2

 )RUG3ODQQHGIRU5WREHWKH1H[W35HOHDVH ́RI3'2

 5LV9LVXDOO\,QWHJUDWHGWR8VHUVRI3'2

 5LV7HFKQLFDOO\,QWHJUDWHGDV3DUWRI3'2

 5DQG5KDGD&RPPRQ'HYHORSPHQW7HDP

% 50LVDSSURSULDWHVWKURXJKXVHRI9HUVDWD¶V7UDGH6HFUHWV

& 'DPDJHVIRU5DUHLQFOXGHGLQ9HUVDWD¶V'DPDJHV0RGHO

,,, &21&/86,21

 

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50163 Page 2 of 25
LLL

5(63216(72,668(635(6(17('

,V)RUGHQWLWOHGWRVXPPDU\MXGJPHQWRQ9HUVDWD¶VWUDGHVHFUHWFODLPVDJDLQVW3'2

5ZKHUH5LVSDUWRI3'2DQGXVHV9HUVDWD¶VWUDGHVHFUHWVDQGGDPDJHV

IRU5DUHLQFOXGHGZLWKLQ9HUVDWD¶VGDPDJHVPRGHO"

9HUVDWDDQVZHUV 1R 

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50164 Page 3 of 25
LY

&21752//,1*$87+25,7<

BladeRoom Group Ltd. v. Facebook, Inc

1RFY:/1'&DO-DQ

Cognis Corp. v. Chemcentral Corp.

)6XSSG1',OO

GlobeRanger Corp. v. Software AG United States of America Inc.

)GWK&LU

'HIHQG7UDGH6HFUHWV$FW86&

0LFKLJDQ8QLIRUP7UDGH6HFUHWV$FW0&/6

 

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50165 Page 4 of 25
Y

,1'(;2)$87+25,7,(6

&DVHV

American Airlines, Inc. v. KLM Royal Dutch Airlines, Inc.

)GWK&LU

BladeRoom Group Ltd. v. Facebook, Inc

 1RFY:/1'&DO-DQ

Cognis Corp. v. Chemcentral Corp., 

)6XSSG1',OO

GlobeRanger Corp. v. Software AG United States of America Inc.

 )GWK&LU

Next Comms., Inc. v. Viber Media, Inc.

1RFY:/6'1<0DU

Stratienko v. Cordis Corp.

)GWK&LU

6WDWXWHV

'HIHQG7UDGH6HFUHWV$FW86&

0LFKLJDQ8QLIRUP7UDGH6HFUHWV$FW0&/6««««««««««

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50166 Page 5 of 25


, ,1752'8&7,21

)RUG¶VPRWLRQLVEDVHGRQWKHIDOVHSUHPLVHWKDW3'25RU5LVDQHQWLUHO\

QHZ DQG LQGHSHQGHQW SURJUDP IURP 3'2 5  +RZHYHU WKH HYLGHQFH FOHDUO\

GHPRQVWUDWHVWKHRSSRVLWHLQIDFW3'25LV35HOHDVH ́RI3'2DQGVLPSO\WKH

QH[WGHYHORSPHQWRI3'255LVYLVXDOO\LQWHJUDWHGZLWK55LVWHFKQLFDOO\

LQWHJUDWHGZLWK5DWWKHVRXUFHFRGHOHYHO)RUGGRFXPHQWVDQGZLWQHVVHVFRQILUP

WKDW5LVWKHQH[WSKDVHRUH[WHQVLRQRI5*LYHQWKLVGHJUHHRILQWHJUDWLRQ)RUG

XQVXUSULVLQJO\XWLOL]HG ZKHQFUHDWLQJ55LQUHDOLW\LV

DQH[WHQVLRQDQGHQKDQFHPHQWRI3'2DQGQRWDVHSDUDWHGRZQVWUHDPDSSOLFDWLRQ

DV)RUGFODLPV

)RUG¶V PRWLRQ DOVR LV GHIHFWLYH EHFDXVH LW LV EDVHG RQ WKH LQFRUUHFW OHJDO

SUHPLVH WKDW WUDGH VHFUHW PLVDSSURSULDWLRQ LV OLPLWHG WR 5 IHDWXUHV WKDW HQWLUHO\

3LQFOXGH ́9HUVDWD¶VWUDGHVHFUHWV0LVDSSURSULDWLRQLVQRWVRQDUURZO\OLPLWHGDQG

HQFRPSDVVHV3XVH ́RIDWUDGHVHFUHWDVVHWIRUWKLQWKHIHGHUDO'HIHQG7UDGH6HFUHWV

$FW86&DQGWKH0LFKLJDQ8QLIRUP7UDGH6HFUHWV$FW0&/6

%DVHG RQ WKLV OHJDO VWDQGDUG 9HUVDWD LGHQWLILHG WZR IHDWXUHV LQ 5 3&KDQJH

0DQDJHPHQW ́DQG30L[5DWH ́WKDWPLVDSSURSULDWHE\XVLQJWZRRIWKH9HUVDWDWUDGH

VHFUHWVDVVHUWHGLQWKLVFDVHDVH[SODLQHGLQGHWDLOE\9HUVDWD¶VWHFKQLFDOH[SHUW'U

0DOHNSee([$0DOHN55HSRUW

&RQWUDU\WR )RUG¶VPRWLRQ 9HUVDWDLV VHHNLQJ GDPDJHV IRU5 9HUVDWD¶V

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50167 Page 6 of 25


GDPDJHVPRGHOLQFOXGHVWKHULJKWIRU)RUGWRGHYHORSRWKHUDSSOLFDWLRQVWKDWXVHWKH

WUDGH VHFUHWV  )RUG¶V GHYHORSPHQW RI 5 LV SUHFLVHO\ WKH W\SH RI LPSURYHPHQW

FRQWHPSODWHG E\ WKH GDPDJHV PRGHO  7KXV ZKLOH 9HUVDWD GRHV QRW VHHN DQ

DGGLWLRQDODPRXQWRIGDPDJHV IRU5)RUG¶VFRQWLQXHGGHYHORSPHQWRIWKHWUDGH

VHFUHWVLQ5LVFRQWHPSODWHGLQ9HUVDWD¶VGDPDJHVPRGHO,IDQ\WKLQJ5FRQILUPV

WKH YDOXH RI 9HUVDWD¶V WUDGH VHFUHWV E\ VKRZLQJ WKDW )RUG FUHDWHG DGGLWLRQDO

IXQFWLRQDOLW\EDVHGRQ9HUVDWD¶VWUDGHVHFUHWV

,, $5*80(17

$ 3'25LVWKH1H[W5HOHDVHRI3'2

 5LVSDUWRI3'2DQG UHIHUVWRWKHQH[W UHOHDVHLQWKHGHYHORSPHQWRIWKH

VRIWZDUH WR DGG DGGLWLRQDO IXQFWLRQDOLW\ DV FRQILUPHG E\ WKH GHHS OHYHO RI

LQWHJUDWLRQEHWZHHQ5DQG5)RUGSODQQHGIRU5WRKDYHWKLVDUFKLWHFWXUHIURP

WKH RXWVHW RIWKH GHVLJQ RI 3'2  7KXV )RUG EODWDQWO\ PLVFKDUDFWHUL]HVWKHWUXH

QDWXUHRI5E\FDOOLQJLWPHUHO\DGRZQVWUHDPV\VWHP

 )RUG3ODQQHGIRU5WREHWKH1H[W35HOHDVH ́RI3'2

$VHDUO\DV )RUG0RWRU&RPSDQ\ KDWFKHG D SODQWR VHFUHWO\ UHSODFH

9HUVDWD¶V$&06RIWZDUHWKDWZDVDWWKHWLPHXQGHUOLFHQVHDQGZDVWKHNH\VRIWZDUH

XVHGIRUSURGXFWGHILQLWLRQFRPSDQ\ZLGH([%-DPHV%HDUGVOHHGHSR

DW     7KH UHSODFHPHQW VRIWZDUH HYHQWXDOO\ FDOOHG 3URGXFW 'HILQLWLRQ

2IIHU33'2 ́ZDVVODWHGWRXQGHUJRVHYHUDOSKDVHVRIGHYHORSPHQWZLWKVSHFLILF

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50168 Page 7 of 25


UHOHDVHVSODQQHGE\1RYHPEHUWKDWLQFOXGHGWZRLQLWLDOUHOHDVHV3'25DQG

3'25See([&)9DW)9([')9

DW

7KH DFFXVHG IHDWXUHVZLWKLQ5&KDQJH0DQDJHPHQWDQG0L[5DWHZHUH

DOZD\VSDUWRIWKH3'2GHYHORSPHQWSODQDVVKRZQLQD GRFXPHQWIURP)RUG

([&)9 DW)9 HPSKDVLVDGGHGLQ UHGWRVKRZWKH

DFFXVHG5IHDWXUHV1RWDEO\)RUGFRQWHPSODWHGL W

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50169 Page 8 of 25


ZKLFK IXUWKHU HYLGHQFHV WKDW )RUG¶V DWWHPSW WR FKDUDFWHUL]H 5 DV DQ

LQGHSHQGHQWGRZQVWUHDPDSSOLFDWLRQLVIDOVH

&RQVLVWHQWZLWKWKHDERYHSODQ)RUGUHIHUUHGWR3'25DV35HOHDVH ́RI

([/)9DW see also 

([$0DOHN55HSRUWDW

)RUG¶VRZQLQWHUQDOGRFXPHQWDWLRQGRHVQRWGHVFULEH3'25DVDVHSDUDWH

GRZQVWUHDPV\VWHPSee([/)9([$0DOHN55HSRUWDW

7KHVHLQWHUQDOGRFXPHQWVGLVFXVVSODQVIRUH[SDQGHGGHYHORSPHQWRI3'2

LQWRIXUWKHUUHOHDVHVDQGGRHVQRWFKDUDFWHUL]HWKHH[SDQGHGGHYHORSPHQWDVVHSDUDWH

GRZQVWUHDPV\VWHPV

)RUGUHOLHVRQVHOIVHUYLQJGHFODUDWLRQVIURPD)RUGHPSOR\HHLQDQDWWHPSW

WRSURYLGHHYLGHQFHWKDW5LVVLPSO\DQRWKHUGRZQVWUHDPV\VWHPRI5)RUG0WQ

DW   +RZHYHU )RUG FLWHV QR HYLGHQFHLQ VXSSRUW RIWKLV IDOVH SUHPLVH  7RWKH

FRQWUDU\)RUG¶VRZQHPSOR\HHV3DXO6HLOHUDQG)UHGULFN:LONLQVRQDGPLWWKDW5

LVDQH[WHQVLRQRI5([)3DXO6HLOHUGHSRDW

([*

)UHG :LONLQVRQ  GHSR DW 

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50170 Page 9 of 25


%RWKGHVFULEHYDULRXVRWKHUGRZQVWUHDPV\VWHPVEXWGRQRWLGHQWLI\

3'25DVRQHRIWKHP([)3DXO6HLOHUGHSRDW([

*)UHG:LONLQVRQGHSRDW

 5LV9LVXDOO\,QWHJUDWHGWR8VHUVRI3'2

&RQVLVWHQWZLWK)RUG¶VSODQIRU5WREHWKHQH[WUHOHDVHRI55LVYLVXDOO\

LQWHJUDWHGWR XVHUV RI 3'2 7KH5 IHDWXUHV DUH SUHVHQWHGWR XVHUV ZLWKRXW DQ\

GLVWLQFWLRQ WR 5 DV FRQILUPHG E\ D OLYH GHPRQVWUDWLRQ RI 3'2 5 WKDW )RUG

SURYLGHGWR9HUVDWD¶VWHFKQLFDOH[SHUWV$VVKRZQLQWKHVFUHHQVKRWVWDNHQIURPWKH

GHPRQVWUDWLRQWKHXVHUDFFHVVLQJ3'2LVSUHVHQWHGZLWKDVLQJOHXVHULQWHUIDFHWR

DFFHVVERWK3'25DQG3'25IXQFWLRQDOLW\([$0DOHN55HSRUWDW

([+)9DW:KHQDXVHUORJVLQW 



Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50171 Page 10 of 25


IdHPSKDVLVDGGHGLQUHGWRVKRZWKHDFFXVHG5IHDWXUHV

([,)9±DW)9HPSKDVLVDGGHGLQUHGWRVKRZWKH

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50172 Page 11 of 25


DFFXVHG5IHDWXUHV

1RZKHUHGRHVWKHXVHUVHH35 ́RU35 ́QRULVWKHXVHUUHTXLUHGWRRSHQ

VHSDUDWHDSSOLFDWLRQVWRXVHWKHIHDWXUHVZLWKLQ5DQG57KHXVHULVSUHVHQWHG

ZLWK3'2DQGDOORILWVIHDWXUHVLQFOXGLQJWKRVHIRXQGLQ5DQG5

 5LV7HFKQLFDOO\,QWHJUDWHGDV3DUWRI3'2

,QDGGLWLRQWREHLQJXVHULQWHJUDWHG5VRIWZDUHLVWHFKQLFDOO\LQWHJUDWHGDV

SDUWRI3'2DQGFDQQRWIXQFWLRQDSDUWIURP3'25([$0DOHN55HSRUWDW

  7KH VRXUFH FRGH IRU 5 ZDV RULJLQDOO\ GHYHORSHG DQG VWRUHG LQ WKH VDPH

UHSRVLWRU\DV5Z IdDW	

)RUH[DPSOH

See([6)6&

5VRXUFHFRGHDOVRXVHVWKHVDPH3QDPHVSDFH ́DV3'25ZKHUHDV)RUG¶V

WUXH GRZQVWUHDP V\VWHPV GR QRWSee([$0DOHN55HSRUW DW 	 

1DPHVSDFHLGHQWLILHVFDWHJRULHVRIFRGHIdDW.%\FRPSDULVRQWKHVRXUFHFRGH

IRU)RUG¶V ([

6)6&

7KHVRXUFHFRGHDOVRVKRZVWKDW5GHYHORSHGIXQFWLRQDOLW\LVEXLOWRQ3'2

GHYHORSHG IXQFWLRQDOLW\ DQG VRXUFH FRGH )RU H[DPSOH VKDUHG FRGH H[LVWV LQ

See, e.g.,([6)6&([6

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50173 Page 12 of 25


)6& ([ 6 )6&  -DYD ($5 ILOHV IURP 3'2 DOVR VKRZ

FRQQHFWLRQEHWZHHQ5DQG5([$0DOHN55HSRUWDW

,QDGGLWLRQWRLQWHJUDWLRQDWWKHVRXUFHFRGHOHYHO)RUG¶VRZQDUFKLWHFWXUDO

GRFXPHQWV LQ WKH IRUP RI )RUG 80/ GLDJUDPV GHPRQVWUDWH WKH IXQGDPHQWDO

LQWHUDFWLRQEHWZHHQ5FRPSRQHQWVDQGWKHRWKHU3'2FRPSRQHQWV([$0DOHN

55HSRUWDW80/LVDPRGHOLQJODQJXDJHXVHGWRYLVXDOL]HWKHGHVLJQRI

DVRIWZDUHV\VWHPIdDW

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50174 Page 13 of 25


([6)6& HPSKDVLVDGGHGWR VKRZ3'25 IXQFWLRQDOLW\LQ5HG

LQWHUDFWLQJZLWK3'25IXQFWLRQDOLW\LQEOXHDQGFRPELQHGWRGLVSOD\DVDFRPSOHWH

VLQJOHLPDJH([$0DOHN55HSRUWDW

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50175 Page 14 of 25


7KH 80/ GLDJUDP DERYH VKRZV WKDW

([$0DOHN55HSRUWDW,QRQHH[DPSOHRIWKLVFORVHLQWHUDFWLRQ

IdDW

3'25DOVROHYHUDJHVEXLOGDEOHFRQILJXUDWLRQVIURP5([$0DOHN5

5HSRUW DW   7KH VRXUFH FRGH WKDW

([6)6&([+)9

DW)9

 5DQG5KDGD&RPPRQ'HYHORSPHQW7HDP

*LYHQWKHIXOOLQWHJUDWLRQRI5DQG5DVSDUWRI3'2LWLVQRWVXUSULVLQJ

WKDW )RUG XWLOL]HG D FRPPRQWHDP RI GHYHORSHUV EHWZHHQWKHWZRUHOHDVHV  7KH

$FFXUHYORJVIRUWKHVRXUFHFRGHUHSRVLWRULHVLGHQWLI\XVHUQDPHVZKRZRUNHGRQ

WKHVRIWZDUH$QHYDOXDWLRQRIQDPHVFRPPRQWRERWKWKH5DQG5ORJVLGHQWLILHV

ZKR ZRUNHG RQ ERWK UHOHDVHV  ([ - )RUG 'HYHORSHUV

&RPPRQWR5DQG5See ([6)6&3'2$FFXUHY/RJ([

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50176 Page 15 of 25


6)6&3'25$FFXUHY/RJ

% 50LVDSSURSULDWHVWKURXJKXVHRI9HUVDWD¶V7UDGH6HFUHWV 

 5HOHDVHRI3'2RU5LQFOXGHVWZRIHDWXUHVWKDWPLVDSSURSULDWH9HUVDWD¶V

WUDGHVHFUHWVIRXQGLQWKHILUVWUHOHDVHRI3'2RU3'256SHFLILFDOO\5¶V0L[

5DWHIHDWXUHPLVDSSURSULDWHV9HUVDWD¶VEXLOGDELOLW\WUDGHVHFUHWE\XVLQJEXLOGDEOH

FRQILJXUDWLRQVJHQHUDWHGE\3'2([$0DOHN55HSRUWDW5¶V

&KDQJH 0DQDJHPHQW IHDWXUH PLVDSSURSULDWHV 9HUVDWD¶V ZRUNVSDFHV WUDGH VHFUHW

WKURXJK 5¶V XVH RI

Id

Id.$FFRUGLQJO\

0L[5DWHDQG&KDQJH0DQDJHPHQWPLVDSSURSULDWHWZRRI9HUVDWD¶VWUDGHVHFUHWV

E\XVLQJWKHWUDGHVHFUHWVLQ3'2

)RUGDWWHPSWVWRGLVPLVVWKHVHWUDGH VHFUHWPLVDSSURSULDWLRQFODLPVDJDLQVW

5LVEDVHGRQIDOVHJURXQGV)RUGILUVWDUJXHVWKDW5LVDQLQGHSHQGHQWVRIWZDUH

SDFNDJHWKDWLVIXQFWLRQDOO\GLVWLQFWIURP5+RZHYHU5LVLQWHJUDWHGZLWK5DV

SDUWRI3'2VRIWZDUHDVFRQILUPHGE\WKH3'2XVHUVFUHHQVWKHLQWHJUDWLRQRIWKH





'XHWROHQJWKRQO\WKHUHOHYDQWSDJHVRIWKH3'2DQG3'25$FFXUHY/RJVDUH

DWWDFKHGDVH[KLELWV

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50177 Page 16 of 25


VRIWZDUHDQG)RUG¶VRZQGRFXPHQWVDQGZLWQHVVHVSee, supra7KLVDORQHFUHDWHV

DJHQXLQHLVVXHRIPDWHULDOIDFWWKDWLVVXIILFLHQWWRGHQ\)RUG¶VPRWLRQ

+RZHYHUHYHQSURFHHGLQJXQGHUWKHIDOVHSUHPLVHWKDW5LVLQGHSHQGHQWRI

5)RUG¶VPRWLRQLVEDVHGRQDQRQH[LVWHQWWUDGHVHFUHWPLVDSSURSULDWLRQVWDQGDUG

WKDWWKH5IHDWXUHVPXVW3LQFOXGH ́WKHDVVHUWHGWUDGHVHFUHWV)RUG0WQDWL7KDW

LVQRWWKHVWDQGDUGIRUWUDGHVHFUHWPLVDSSURSULDWLRQXQGHUHLWKHUWKHIHGHUDO'HIHQG

7UDGH6HFUHWV$FW86&DQGWKH0LFKLJDQ8QLIRUP7UDGH6HFUHWV$FW

0&/6%RWKVWDWXWHVGHILQHPLVDSSURSULDWLRQWRLQFOXGH3XVH ́RIDQRWKHU

SHUVRQ¶VWUDGHVHFUHWZLWKRXWWKHLUFRQVHQW

30LVDSSURSULDWLRQ ́PHDQVHLWKHURIWKHIROORZLQJ



LL'LVFORVXUHRUXVHRIDWUDGHVHFUHWRIDQRWKHUZLWKRXWH[SUHVVRU

LPSOLHGFRQVHQWE\DSHUVRQZKRGLGRUPRUHRIWKHIROORZLQJ

$8VHGLPSURSHUPHDQVWRDFTXLUHNQRZOHGJHRIWKHWUDGHVHFUHW

%$WWKHWLPHRIGLVFORVXUHRUXVHNQHZRUKDGUHDVRQWRNQRZWKDW

KLVRUKHUNQRZOHGJHRIWKHWUDGHVHFUHWZDVGHULYHGIURPRUWKURXJKD

SHUVRQZKRKDGXWLOL]HGLPSURSHUPHDQVWRDFTXLUHLWDFTXLUHGXQGHU

FLUFXPVWDQFHVJLYLQJULVHWRDGXW\WRPDLQWDLQLWVVHFUHF\RUOLPLWLWV

XVHRUGHULYHGIURPRUWKURXJKDSHUVRQZKRRZHGDGXW\WRWKHSHUVRQ

WRPDLQWDLQLWVVHFUHF\RUOLPLWLWVXVH

0&/6E6LPLODUO\0L[5DWHDQG&KDQJH0DQDJHPHQWXVH9HUVDWD

WUDGHVHFUHWVIRXQGLQ3'2

 ,QUHDOLW\)RUGLVDWWHPSWLQJWRLPSRVHDSDWHQWLQIULQJHPHQWIUDPHZRUNE\

DOOHJLQJWKDW0L[5DWHDQG&KDQJH0DQDJHPHQWPXVWLQGHSHQGHQWO\PLVDSSURSULDWH

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50178 Page 17 of 25


WKHHQWLUHW\RI9HUVDWD¶VWUDGHVHFUHWV+RZHYHUWKHVFRSHRI3XVH ́RIDWUDGHVHFUHW

LVEURDGHUWKDQWKDWRIDSDWHQWBladeRoom Group Ltd. v. Facebook, Inc1R

FY:/DW
1'&DO-DQ7KLVLVFRQVLVWHQWZLWK

FRXUWVFRQVLVWHQWO\DFNQRZOHGJLQJWKDWWKHVFRSHRI3XVH ́RIDWUDGHVHFUHWLVEURDG

ZKHQ GHWHUPLQLQJ PLVDSSURSULDWLRQ  Cognis Corp. v. Chemcentral Corp. 

)6XSSG   1' ,OO  3μXVH¶ >RI D WUDGH VHFUHW@ LV D YHU\ EURDG

FRQFHSW ́GlobeRanger Corp. v. Software AG United States of America Inc.

)G WK&LU WUDGHVHFUHW3XVH ́LVGHILQHG EURDGO\WRPHDQDQ\

3FRPPHUFLDOXVHE\ZKLFKWKHRIIHQGLQJSDUW\VHHNVWRSURILWIURPWKHXVHRIWKH

WUDGHVHFUHW ́Next Comms., Inc. v. Viber Media, Inc.1RFY:/

 DW 
 6'1< 0DU   SODLQWLII VXIILFLHQWO\ DOOHJHG D

PLVDSSURSULDWLRQFODLPEDVHGRQWKHGHIHQGDQW¶VXVHRIWKHWUDGHVHFUHWWRGHYHORS

LWVRZQVRIWZDUHDSSIHDWXUH

 )RUG¶VDWWHPSWWRFULWLFL]H'U0DOHN¶V1RYHPEHUWUDGHVHFUHWUHSRUW

LVHQWLUHO\PLVSODFHG)RUG0WQDW'U0DOHNSURYLGHGWKLVUHSRUWpriorWR)RUG

SURYLGLQJOLPLWHGGLVFRYHU\LQWR5LQFOXGLQJSULRUWR)RUGPDNLQJ5VRXUFHFRGH

DYDLODEOHIRULQVSHFWLRQ)RUGHYHQWXDOO\SURYLGHGVXFKGLVFRYHU\DQG'U0DOHN

VXEVHTXHQWO\SURYLGHGKLV5UHSRUWRQ'HFHPEHU,QWKLVUHSRUWDQGDWKLV

GHSRVLWLRQ'U0DOHNDGGUHVVHGWKHDOOHJHGXQFHUWDLQW\UDLVHGE\WKH6SHFLDO0DVWHU

DQG PDGH LW FOHDU WKDW 5 DSSOLFDWLRQV PLVDSSURSULDWH E\ XVLQJWKH WUDGH VHFUHWV

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50179 Page 18 of 25


IRXQGLQ RWKHU SDUWV RI 3'2 )RUGLQH[SOLFDEO\ DUJXHVWKDWWKLV XQFHUWDLQW\ VWLOO

H[LVWV \HW FLWHV WR 'U 0DOHN¶V GHSRVLWLRQ DV HYLGHQFH WKDW 5 UHOLHV RQ FHUWDLQ

FDSDELOLWLHVZLWKLQ5)RUG0WQDW	

7KH DXWKRULW\ RQ ZKLFK )RUG UHOLHVLQ VXSSRUW RILWV DUJXPHQWWKDWWKH 5

DSSOLFDWLRQVPXVWLQGHSHQGHQWO\SUDFWLFH9HUVDWD¶VDOOHJHGWUDGHVHFUHWVPLVVHVWKH

PDUN)RUG0WQ

1RZKHUHGRHVWKHFRXUWLQStratienkoSRVWXODWHWKDWWKHDOOHJHGWUDGHVHFUHW

PXVWEH3DFWXDOO\LQFRUSRUDWHGLQWRWKHDFFXVHGSURGXFW ́DV)RUGDOOHJHVStratienko 

v. Cordis Corp.)GWK&LU7KHWULDOFRXUWLQWKDWFDVHJUDQWHG

VXPPDU\MXGJPHQWDJDLQVWWKHSODLQWLIIEHFDXVHWKHSODLQWLII¶VH[SHUWVLPSO\DYHUUHG

WKDWWKHGHIHQGDQW¶VDFFXVHGGHYLFHVKDUHG3DOOVDOLHQWIHDWXUHVIRXQGLQ>SODLQWLII¶V

GHYLFH@ ́EXWIDLOHGWRLGHQWLI\WKHUHOHYDQWIHDWXUHVRUWKHWUDGHVHFUHWId. DW

,QDIILUPLQJWKHORZHUFRXUW¶VUXOLQJWKH6L[WK&LUFXLWKHOGWKDWWKHSODLQWLII

IDLOHGWRVKRZDVXIILFLHQWEDVLVIRUWKHMXU\WRILQGDQLQIHUHQFHRIWUDGHVHFUHWXVH

Id.7KH FRXUW IXUWKHUH[SODLQHGWKDWD SURGXFWWRSURGXFW IHDWXUHFRPSDULVRQZDV

VLPSO\3LUUHOHYDQW ́WRVXFKLQTXLU\Id.

+HUHXQOLNHWKHH[SHUWLQStratienko9HUVDWD¶VH[SHUWKDVLGHQWLILHGWKHWUDGH

VHFUHWVWKDW)RUG¶V5DSSOLFDWLRQPLVDSSURSULDWHV E\ XVLQJWKHVHWUDGH VHFUHWVLQ

3'2

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50180 Page 19 of 25


/LNHZLVHWKHAmerican AirlinesFDVHKDVQRWKLQJWRGRZLWKWUDGHVHFUHWXVH

DV)RUGDOOHJHVAmerican Airlines, Inc. v. KLM Royal Dutch Airlines, Inc.)G

  WK &LU  7KH ORZHU FRXUW LQ American Airlines JUDQWHG

VXPPDU\MXGJPHQWIRUWKHGHIHQGDQWEHFDXVH3WKHUHFRUGFRQFOXVLYHO\HVWDEOLVKHG ́

WKDWWKHGHIHQGDQWQHYHUUHFHLYHGWKHFRPELQDWLRQWUDGHVHFUHWLQLWVHQWLUHW\IdDW

,QVWHDGWKHGHIHQGDQWZDVRQO\SURYLGHGZLWKIRXURXWRIWKHILYHFRQVWLWXHQW

HOHPHQWV RIWKHWUDGH VHFUHW ZLWKRXWWKH QHFHVVDU\ DOJRULWKP IRU XVLQJWKHPId

7KXVWKHORZHUFRXUWKHOG±DQGWKH(LJKWK&LUFXLWDIILUPHG±WKDWWKHGHIHQGDQWLQ

American AirlinesGLGQRWPLVDSSURSULDWHWKHSODLQWLII¶VWUDGHVHFUHWEHFDXVHLWQHYHU

DFTXLUHGLWWREHJLQZLWKId.DW

7KHUHLVQRGLVSXWHLQWKHLQVWDQWFDVHWKDW)RUGKDGDFFHVVWRDQGDFTXLUHG

9HUVDWD¶V DOOHJHG WUDGH VHFUHWV LQ WKHLU HQWLUHW\ XQGHU WKH OLFHQVH  $FFRUGLQJO\

)RUG¶VUHOLDQFHRQAmerican AirlinesLVFRPSOHWHO\PLVSODFHG

& 'DPDJHVIRU5DUHLQFOXGHGLQ9HUVDWD¶V'DPDJHV0RGHO

 )RUG DWWHPSWV WR PLQLPL]H WKH LPSRUWDQFH RI 5 EDVHG XSRQ 9HUVDWD¶V

GDPDJHVPRGHODQGWKHSDUWLHV¶HDUOLHUDWWHPSWWRVLPSOLI\WKLVFDVHE\UHPRYLQJ5

+RZHYHUQRZWKDW)RUGKDVSURYLGHGGLVFRYHU\LQWR5LWRQO\VHUYHVWRFRQILUP

WKHLPSRUWDQFHDQG YDOXHWR)RUGRIWKHFRQWLQXHGXVHRI9HUVDWD¶VWUDGHVHFUHWV

VXFKDVWKURXJKWKHGHYHORSPHQWRIDGGLWLRQDOIHDWXUHVOLNH5

 9HUVDWD¶VVXSSOHPHQWDOGDPDJHVPRGHOLQFOXGHVGDPDJHVIRUH[WHQGHGXVHRI

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50181 Page 20 of 25


9HUVDWD¶VWUDGHVHFUHWV([.([SHUW5HSRUWRI&UDLJ(OVRQ5HJDUGLQJ3'25DW

  7KLV DOORZV )RUG 3VLJQLILFDQW FRQWURO RYHU WKH XVH RI 9HUVDWD¶V RWKHUZLVH

SURWHFWHGWUDGHVHFUHWV ́VXFKDVWKHDELOLW\WRGHYHORSRWKHUDSSOLFDWLRQVWKDWXVHWKH

WUDGH VHFUHWVOLNH )RUG DFFRPSOLVKHG ZLWK5Id DW %HIRUHLPSOHPHQWLQJ

3'2 )RUG ZDV UHTXLUHG WR VHHN 9HUVDWD¶V DVVLVWDQFH WR GHYHORS WKHVH W\SHV RI

IHDWXUHVDQGSD\IRUVXFKVHUYLFHV9HUVDWD¶VGDPDJHVPRGHODOORZV)RUGWRGHYHORS

DGGLWLRQDOIHDWXUHVRQLWVRZQ

$VDUHVXOWWKHUHZDVQRQHHGWRVHSDUDWHO\TXDQWLI\GDPDJHVIRU5HYHQ

WKRXJK5LVLQIDFWLQFOXGHGZLWKLQWKHVFRSHRIWKHGDPDJHVWKDW9HUVDWDLVVHHNLQJ

1RWDEO\)RUGGRHVQRWDUJXHWKDW9HUVDWD¶VWUDGHVHFUHWVFODLPDJDLQVW5VKRXOGEH

GLVPLVVHGEDVHGRQWKHGDPDJHVPRGHO

 )RUGDOVRPLVFKDUDFWHUL]HVWKHQDWXUHRIWKHSDUWLHV¶GLVFXVVLRQVWRGURS5

IURPWKHFDVH9HUVDWDSURSRVHGWKDWLI5ZDVWREHUHPRYHGLWVKRXOGEHUHPRYHG

IRUDOOSXUSRVHV2WKHUZLVHDVFRXQVHOIRU9HUVDWDH[SODLQHGDWWKH0DUFK

KHDULQJ )RUG FRXOG 3XVH 3'25 DV ERWK D VZRUG DQG D VKLHOG ZKHUH WKH\¶UH

VKLHOGLQJGLVFRYHU\ ́ZKLOHDWWKHVDPHWLPHIRUH[DPSOHXVLQJLWWRDWWDFN9HUVDWD¶V

GDPDJHVPRGHO'NW  +HDULQJ7UDQV$W +RZHYHUWKH

SDUWLHVZHUHXQDEOHWRUHDFKDJUHHPHQWRQUHPRYLQJ5DQG9HUVDWD¶VSULRUDWWHPSW

WRVWUHDPOLQHWKHFDVHKDVQREHDULQJRQZKHWKHU5VKRXOGQRZEHGLVPLVVHG

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50182 Page 21 of 25


,,, &21&/86,21

 )RUG¶VPRWLRQLVEDVHGRQDVWUDZPDQDUJXPHQWWKDW5LVDVWDQGDORQHSLHFH

RIVRIWZDUHWKDWLVLQGHSHQGHQWRI3'25+RZHYHUDOOHYLGHQFHSRLQWVWRH[DFWO\

WKHRSSRVLWHFRQFOXVLRQ5LQWHJUDWHGZLWK5DVSDUWRI3'2LQHYHU\SRVVLEOH

ZD\ IURP WKH XVHU H[SHULHQFH GRZQ WR WKH DUFKLWHFWXUDO VRXUFH FRGH OHYHO

0RUHRYHU'U0DOHNDSSOLHVWKHSURSHUWUDGHVHFUHWPLVDSSURSULDWLRQVWDQGDUGWR

H[SODLQKRZWKH5&KDQJH0DQDJHPHQWDQG0L[5DWHIHDWXUHVXVH9HUVDWD¶VWUDGH

VHFUHWV)RUWKHVHUHDVRQVDQGDVH[SODLQHGDERYH9HUVDWDUHVSHFWIXOO\VXEPLWVWKDW

)RUG¶VPRWLRQVKRXOGEHGHQLHG 

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50183 Page 22 of 25


0D\    $+0$' =$9,76$126 $1$,3$.26

$/$9,	 0(16,1* 3&

/s/ Steven J. Mitby

'HPHWULRV$QDLSDNRV

GDQDLSDNRV#D]DODZFRP

$PLU$ODYL

DDODYL#D]DODZFRP

6WHYHQ-0LWE\

VPLWE\#D]DODZFRP

.\XQJ'UHZ.LP

GNLP#D]DODZFRP

6FRWW:&ODUN

VFODUN#D]DODZFRP

-DQH5RELQVRQ

MURELQVRQ#D]DODZFRP

.\ULO7DODQRY

NWDODQRY#D]DODZFRP

0DVRRG$QMRP

PDQMRP#D]DODZFRP

0LFKDHO0F%ULGH

PPFEULGH#D]DODZFRP

-XVWLQ&KHQ

MFKHQ#D]DODZFRP

0F.LQQH\6XLWH

+RXVWRQ7H[DV

7HOHSKRQH

)DFVLPLOH

'DQLHO.:HEE

':HEE#ZLQVWRQFRP

0DWWKHZ5&DUWHU

0&DUWHU#ZLQVWRQFRP

:,16721	 675$:1 //3

::DFNHU'ULYH

&KLFDJR,/

3KRQH

)DFVLPLOH

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50184 Page 23 of 25


5RGJHU'<RXQJ

-D\H4XDGUR]]L

<281*	 $662&,$7(6

6WDQVEXU\%OYG6XLWH

)DUPLQJWRQ+LOOV0,



HILOLQJ#\RXQJSFFRP

6KDURRQ6DOHHP

-21(6	 6352663//&

6KDURRQVDOHHP#MRQHVVSURVVFRP

/DNHFOLII+LOOV/Q6XLWH

$XVWLQ7;

$77251(<6)253/$,17,))6

9(56$7$62)7:$5(,1&IND

75,/2*<62)7:$5(,1&

9(56$7$'(9(/230(17*5283

,1&$1'75,/2*<,1&

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50185 Page 24 of 25


3522)2)6(59,&(

6WHYHQ-0LWE\FHUWLILHVWKDWRQ0D\KHVHUYHGWKHDERYHUHVSRQVH

DQGWKLV3URRIRI6HUYLFHXSRQDOOFRXQVHORIUHFRUGYLDHOHFWURQLFILOLQJ

,GHFODUHXQGHUWKHSHQDOW\RISHUMXU\WKDWWKHVWDWHPHQWVPDGHDERYHDUHWUXH

WRWKHEHVWRIP\NQRZOHGJHLQIRUPDWLRQDQGEHOLHI

/s/ Steven J. Mitby 

6WHYHQ-0LWE\

VPLWE\#D]DODZFRP

$+0$' =$9,76$126 $1$,3$.26

$/$9,	 0(16,1*3&

0F.LQQH\6W6XLWH

+RXVWRQ7;

7HOHSKRQH

Case 2:15-cv-10628-MFL-EAS ECF No. 656 filed 05/03/19 PageID.50186 Page 25 of 25