BAILY DECLARATION REGARDING FEES AND COSTS

CASE NO. C 05-2129 RSM

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The Honorable Ricardo S. Martinez 

UNITED STATES DISTRICT COURT 

WESTERN DISTRICT OF WASHINGTON 

AT SEATTLE 

Eon-Net, L.P., 

Plaintiff, 

v. 

Flagstar Bancorp, 

Defendant. 

 CASE NO. C 05-2129 RSM 

DECLARATION OF MELISSA J. 

BAILY IN SUPPORT OF 

FLAGSTAR’S MEMORANDUM 

REGARDING FEES AND COSTS 

Case 2:05-cv-02129-RSM Document 192 Filed 02/01/2010 Page 1 of 4
BAILY DECLARATION REGARDING FEES AND COSTS

CASE NO. C 05-2129 RSM

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 I, Melissa J. Baily, declare as follows: 

 1. I am an attorney admitted to practice in the State of California and the State of 

New York, and I am a member of the law firm of Quinn Emanuel Urquhart Oliver & Hedges, 

LLP (“Quinn Emanuel”). I represent Flagstar Bank (“Flagstar”) in this action. Except as 

otherwise stated, I have personal firsthand knowledge of the matters set forth in this Declaration, 

and if called as a witness I would testify competently to those matters. 

 2. Quinn Emanuel is lead counsel for Flagstar in this action. 

 3. Attached hereto as Exhibits 1 through 25 are true and correct copies of Quinn 

Emanuel invoices paid by Flagstar. The invoices reflect fees and costs incurred in connection 

with the defense of Eon-Net’s patent infringement claims between October 2007 and December 

2009. Certain invoices are redacted to conceal information protected by the attorney-client 

privilege and/or work product doctrine. 

 4. The costs reflected in the invoices attached as Exhibits 7 and 10 include fees paid 

to a consulting expert (see paragraphs 7-8 below). Excluding those payments, the total fees and 

costs reflected on the invoices attached as Exhibits 1 through 25 is $382,494.18. 

 5. In January 2010, Flagstar incurred at least $3,025 in attorneys’ fees and expenses, 

which have not yet been invoiced by Quinn Emanuel. 

 6. Byrnes & Keller LLP is local counsel for Flagstar in this action. 

 7. Attached as Exhibits 26 through 31 are true and correct copies of Byrnes & Keller 

invoices paid by Flagstar. The invoices reflect fees and costs incurred in connection with the 

defense of Eon-Net’s patent infringement claims between October 2007 and December 2009. 

Certain invoices are redacted to conceal information protected by the attorney-client privilege 

and/or work product doctrine. 

 8. The total fees and costs reflected on the invoices attached as Exhibits 26 through 

31 is $4,049.16. 

 9. Flagstar retained a consulting expert, Dr. James A. Fogarty, to assist with the 

identification of relevant prior art, the preparation of invalidity contentions, and the evaluation of 

Case 2:05-cv-02129-RSM Document 192 Filed 02/01/2010 Page 2 of 4
BAILY DECLARATION REGARDING FEES AND COSTS

CASE NO. C 05-2129 RSM

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Eon-Net’s infringement contentions. Dr. Fogarty’s curriculum vitae is attached hereto as Exhibit 

32. 

 10. Attached hereto as Exhibits 33 and 34 are true and correct copies of Dr. Fogarty’s 

invoices, which were paid by Flagstar. Certain contact information for Dr. Fogarty was redacted 

from these invoices. 

 11. Flagstar retained a testifying expert, Dr. Kenneth Zeger, to assist with the analysis 

of the patents at issue in this case and to provide expert testimony regarding claim construction 

issues. Dr. Zeger’s curriculum vitae is attached hereto as Exhibit 35. 

 12. Attached hereto as Exhibits 36 through 39 are true and correct copies of Dr. 

Zeger’s invoices, which were paid by Flagstar. Certain contact information for Dr. Zeger was 

redacted from these invoices. 

 13. The total fees and costs reflected on the invoices attached as Exhibits 33, 34, and 

through 36 through 39 is $102,607.14. 

 14. All invoices attached hereto have been reviewed and edited. 

 15. The fees and costs incurred by Flagstar since this case was remanded by the 

Federal Circuit in October 2007 total $492,175.48. All fees and costs charged are reasonable. 

Especially in light of the minimal settlement offer by Eon-Net, significant measures were 

undertaken to minimize costs and fees. 

 16. On April 2, 2008, Flagstar served its invalidity contentions addressing the 92 

patent claims (from three patents) asserted by Eon-Net in this case. Those contentions included 

391 pages of charts comparing the elements of each claim to prior art references. The 

contentions cited 28 prior art references. 

 17. Attached hereto as Exhibit 40 is a true and correct copy of pages I-128 and I-129 

of the American Intellectual Property Law Association’s Report of the Economic Survey (2009). 

/// 

/// 

/// 

Case 2:05-cv-02129-RSM Document 192 Filed 02/01/2010 Page 3 of 4
BAILY DECLARATION REGARDING FEES AND COSTS

CASE NO. C 05-2129 RSM

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I declare under penalty of perjury that the foregoing is true and correct. 

 Executed this 1st day of February, 2010, in San Francisco, California. 

 

 /s/Melissa J. Baily 

 Melissa J. Baily 

Case 2:05-cv-02129-RSM Document 192 Filed 02/01/2010 Page 4 of 4