Jennifer Milici, D.C. Bar No. 987096

Daniel Matheson, D.C. Bar No. 502490

J. Alexander Ansaldo, Va. Bar No. 75870

Joseph R. Baker, D.C. Bar No. 490802

Elizabeth A. Gillen, Ca. Bar No. 260667

Federal Trade Commission

600 Pennsylvania Avenue, N.W.

Washington, D.C. 20580

Tel: (202) 326-2912; Fax (202) 326-3496

jmilici@ftc.gov

Lin W. Kahn, Ca. Bar No. 261387

Federal Trade Commission

901 Market Street, Suite 570

San Francisco, CA 94103

Tel: (415) 848-5115; Fax: (415) 848-5184 

lkahn@ftc.gov

Attorneys for Plaintiff

FEDERAL TRADE COMMISSION

CRAVATH, SWAINE & MOORE LLP

Gary A. Bornstein (pro hac vice)

gbornstein@cravath.com

Yonatan Even (pro hac vice) 

yeven @cravath.com

825 Eighth Avenue

New York, NY 10019-7475 

Telephone: (212) 474-1000 

Facsimile: (212) 474-3700

KEKER VAN NEST & PETERS LLP

Robert A. Van Nest

rvannest@keker.com 

633 Battery Street 

San Francisco, CA 94111-1809 

Telephone: (415) 676-2289 

Facsimile: (415) 397-7188 

MORGAN, LEWIS & BOCKIUS LLP

Richard S. Taffet (pro hac vice) 

richard.taffet@morganlewis.com 

101 Park Avenue 

New York, NY 10178-0060 

Telephone: (212) 309-0060 

Facsimile: (212) 309-6001 

MORGAN, LEWIS & BOCKIUS LLP

Donn P. Pickett (SBN 72257) 

Donn.pickett@morganlewis.com 

Geoffrey T. Holtz (SBN 191370) 

Geoffrey.holtz@morganlewis.com 

One Market, Spear Street Tower

San Francisco, CA 94105-1596 

Telephone: (415) 442-1000 

Facsimile: (415) 442-1001 

Attorneys for Defendant

QUALCOMM INCORPORATED

Additional Counsel listed on the Signature 

Page

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

FEDERAL TRADE COMMISSION

Plaintiff,

v.

QUALCOMM INCORPORATED,

a Delaware corporation,

Defendant 

Case No. 5:17-cv-00220-LHK-NMC

PLAINTIFF FEDERAL TRADE 

COMMISSION AND DEFENDANT 

QUALCOMM INCORPORATED’S JOINT 

DISCOVERY STATEMENT REGARDING 

ASSERTION OF PRIVILEGE 

Magistrate Judge: 

Hon. Nathaniel M. Cousins

Plaintiff Federal Trade Commission (“FTC”) and Defendant Qualcomm Incorporated 

(“Qualcomm”) hereby submit this joint statement. The parties have met and conferred by 

telephone, but have been unable to reach agreement on the issues addressed herein.

Case 5:17-cv-00220-LHK Document 704 Filed 04/23/18 Page 1 of 9
1

I. The FTC’s Position

A. Qualcomm’s Patent Ratings Data Are Based on an Idea’s “Technical Merit”

1

 The FTC is happy to provide the deposition transcripts and documents cited herein upon request.

pertains. Id. at 419:10-18, 420:7-13, 421:6-10, 423:14-20. The ratings are driven by technical 

merit, not legal analyses. Id. at 425:13-18. That the ratings are technology-centric is confirmed 

by Qualcomm’s formation of multiple, different Patent Review Boards across different technical 

areas of Qualcomm’s engineering operations (e.g., the modem group). Id. at 417:2-9, 418:13-16. 

Sworn testimony and documentary evidence shows the database containing ratings data is 

available for – and used by – various executives within Qualcomm’s management team. E.g.,

Achour Dep. Tr. at 411:19-412:13, 412:25-413:5, 414:2-8; Martin Dep. Tr. at 558:6-11, 60:20-

61:6, 94:19-95:14; Q2014FTC04774115 at 1-2 (Qualcomm’s CTO, Mr. Grob, when asked “Do 

we have fundamental/killer IPR in 802.11 vs other key players[,]” responded “best to ask patent 

group / Roger Martin those questions – they have the compilation of data like that”) (emphasis 

added). Qualcomm has not established that the primary purpose for which these executives use 

this information relates to legal advice. To the contrary, the evidence shows the rating 

information in the database is used for business purposes. 

Specifically, Qualcomm’s Strategic IP Department (“Strat IP”) created the ratings in part 

for use by Qualcomm’s licensing business unit (“QTL”). Martin Dep. Tr. at 37:14-17; see also 

id. at 65:5-8, 86:15-19. QTL uses the ratings to assess 

technology experts who are familiar with a particular technology area to which the “idea” 

“technical merit.” Achour Dep. Tr. at 425:13-18.1 Each “Patent Review Board” consists of 

that ratings are assigned by one of many “Patent Review Boards” based on the idea’s perceived 

ratings are assigned to an “idea” before it may become the subject of a patent application, and 

and Used for Non-Privileged Business Purposes

Qualcomm Senior Vice President Baaziz Achour explained at his deposition that patent 

This dispute arises out of Qualcomm’s assertion of privilege over a database of certain

metrics Qualcomm uses to classify the perceived technical merit and relative values of 

intellectual property. These metrics, referred to as “ratings,” are used by business personnel to 

make business decisions: for example, the data sought by this motion is presented to 

Qualcomm’s Chief Technology Officer during periodic meetings held to evaluate research and 

development projects, and the data is considered by Qualcomm executives in connection with 

intellectual property acquisitions and corporate restructuring organization proposals. See infra.

Qualcomm cannot carry its burden of showing that this data is privileged, because 

disclosing the data would not reveal the content of a confidential communication between an 

attorney and her client. Data relevant to the value of a business’s assets, which is accessed for 

business purposes, cannot be withheld on the grounds that the same data is used by lawyers to 

render legal advice. Nor can it be withheld based on an assertion that the valuation is influenced 

in part by legal advice. A contrary result would flout controlling precedent and allow businesses 

to conduct their affairs in secret: a company’s view of the value and boundaries of its real estate 

assets would be secret if based in part on a lawyer’s view regarding clarity of title or liability for 

environmental damage; and a company’s assessment of the strength and scope of intellectual 

property would be secret if based in part on a lawyer’s view regarding the likely outcome of 

patent proceedings or future litigation. This would contradict the maxim that the attorney-client 

privilege “ought to be strictly confined within the narrowest possible limits consistent with the 

logic of its principle.’” United States v. Ruehle, 583 F.3d 600, 607 (9th Cir. 2009). 

Case 5:17-cv-00220-LHK Document 704 Filed 04/23/18 Page 2 of 9


B. Qualcomm Cannot Withhold Its Patent Ratings and Metrics Because

Qualcomm Intends to Offer Evidence of the Value of Its Patents at Trial

4XDOFRPP¶V5XOH'LVFORVXUHVPDNHFOHDUWKDW4XDOFRPPLQWHQGVWRRIIHUHYLGHQFHDW

WULDOWKDW4XDOFRPP¶VUR\DOW\UDWHVDUHUHDVRQDEOHLQOLJKWRIWKHYDOXHRI4XDOFRPP¶V

FRQWULEXWLRQVWRFHOOXODUWHFKQRORJLHVOLVWLQJPXOWLSOH4XDOFRPPZLWQHVVHVZKRPD\WHVWLI\RQ

WKLVWRSLF4XDOFRPPZLWQHVVHVKDYHLQGHHGWHVWLILHGWKDW4XDOFRPPKDVPDGHYDOXDEOH



4XDOFRPPDUJXHVWKDWWKH)7&KDVQRWVKRZQWKHVHUDWLQJVZHUHSULPDULO\XVHGIRUEXVLQHVVSXUSRVHV

%XWLWLV4XDOFRPP¶VEXUGHQWRVKRZWKDWWKHSULPDU\SXUSRVHRIWKHUDWLQJVZDVOHJDODGYLFH7&/

:/DW
4XDOFRPPKDVQRWGRQHVR$WEHVWWKHHYLGHQFHLVFRQIOLFWLQJ&RPSDUH

4)7&DWQRWLQJWKHSDWHQWJURXSPDLQWDLQVGDWDWRFRPSDUH,35WRFRPSHWLWRUVZLWK

LQIUDQRWHFLWLQJDWWRUQH\GHFODUDWLRQVWDWLQJWKHGDWDLVQRWXVHGIRUVXFKSXUSRVHV)XUWKHUPRUH

4XDOFRPPFODLPVSULYLOHJHRYHUWKHSRWHQWLDOO\UHOHYDQWHYLGHQFH6HHHJ0DU/WUIURP

-DPHV&DUOVRQFODZLQJEDFN41'&$/WRUHGDFWDGLVFXVVLRQDERXW6DPVXQJ¶V3,3VWUHQJWK ́



+HUH4XDOFRPPFLWHVGHFODUDWLRQVDQGDQLQWHUURJDWRU\UHVSRQVHPDNLQJVLPLODUVWDWHPHQWVUHJDUGLQJ

KRZWKHDVVHVVPHQWVDUHXVHGIRUSDWHQWSURVHFXWLRQDQGOLWLJDWLRQVWUDWHJLHV6HHLQIUD

+HQFHWKHVHUDWLQJVDQGPHWULFVDUHEXVLQHVVWRROVDQGDUHIDLUO\GLVFRYHUDEOH

4XDOFRPP¶VXVHRIUDWLQJVGDWDLQWKLVFRQWH[WSUHFLVHO\DOLJQVZLWK7&/&RPPXQLFDWLRQ

7HFKQRORJ\+ROGLQJV/WGY7HOHIRQDNWHQERORJHW/0(ULFVVRQ1R±FY±:/

&'&DO0D\LQZKLFKWKH&RXUWRUGHUHG(ULFVVRQWRSURYLGHGLVFRYHU\RQ

WKH35HOHYDQF\5DQNLQJV ́RILWVVWDQGDUGHVVHQWLDOSDWHQWV-XVWOLNH4XDOFRPP(ULFVVRQDUJXHG

WKDWLQKRXVHDWWRUQH\VKDGDSULPDU\UROHLQDVVLJQLQJWKHUDWLQJVDQGWKDWWKHUDWLQJVDLGHGLQ

SDWHQWSURVHFXWLRQHIIRUWV 7&/:/DW
VHHDOVR([7&/0DJLVWUDWH-XGJH

2UGHUDW%XWWKH&RXUWUHMHFWHGWKLVDUJXPHQWEHFDXVHWKH5HOHYDQF\5DQNLQJVFRQWDLQHG

3LQIRUPDWLRQWKDW>LV@XVHGIRUPDQDJHPHQWSXUSRVHV ́LQFOXGLQJ3KRZ>(ULFVVRQ@YDOXH>V@WKH

GLIIHUHQWSDWHQWV ́DQG3WKLVYDOXHLVLQWHQGHGWRJRYHUQIXWXUHLQYHVWPHQWVLQWKRVHSDWHQWV ́([

DW,QHYLWDEO\KRZ(ULFVVRQYDOXHGWKHGLIIHUHQWSDWHQWVLQFRUSRUDWHGLWVDWWRUQH\V¶YLHZVRQ

SDWHQWYDOLGLW\DQGHQIRUFHDELOLW\EXWWKDWKDSSHQVWDQFHFRXOGQRWSURWHFWWKH5HOHYDQF\

5DQNLQJVEHFDXVHWKH&RXUWFRQFOXGHG3WKDWWKHSULPDU\SXUSRVHRIWKH>5HOHYDQF\5DQNLQJV@LV

QRWOHJDODGYLFH ́,GVHHDOVR 7&/:/DW


7KLV&RXUWVKRXOGUHDFKWKHVDPHFRQFOXVLRQ-XVWDVLQ7&/Y(ULFVVRQWKHUDWLQJ

V\VWHPGHYHORSHGE\6WUDW,3LVDWRROXVHGIRUEXVLQHVVSXUSRVHV)RUH[DPSOH47/¶V

VWUDWHJLFSODQQRWHGWKDW36WUDW,3ZRUNKDVSXWXVLQDEHWWHUSRVLWLRQWRPDNHLQIRUPHGGHFLVLRQV

DERXWDFTXLVLWLRQV ́4)7&DW4XDOFRPPDUJXHVWKDW0U0DUWLQDQGRWKHU

DWWRUQH\VZLWKLQ6WUDW,3GRQRWIRUPXODWHYLHZVRQSDWHQWPRQHWL]DWLRQ%XWWKDWLVSUHFLVHO\WKH

SRLQW6WUDW,3FUHDWHVDQDVVHVVPHQWEDVHGRQDQLGHD¶VWHFKQLFDOPHULWDQGFRPPHUFLDO

LPSRUWDQFHDQG47/XVHVWKDWGDWDWRPDNHEXVLQHVVGHFLVLRQV

$FFRUGLQJO\HYHQLI4XDOFRPP¶VUDWLQJVDQGPHWULFVZHUHVROHO\XVHGWRLGHQWLI\WKH

KLJKHVWYDOXHLQWHOOHFWXDOSURSHUW\WKHUDWLQJVVWLOOZRXOGQRWFRQVWLWXWHOHJDODGYLFH6HH

6DQ'LVN&RUSY5RXQG5RFN5HVHDUFK1R±FY±:/DW
1'&DO

)HEKROGLQJ,3YDOXDWLRQGRFXPHQWVQRWSULYLOHJHGZKHUHSXUSRVHZDVWRDQDO\]HD

SRWHQWLDOOLFHQVLQJWDUJHWQRWSULPDULO\OHJDODGYLFH1RUGRHVWKHIDFWWKDWRQHXVHRIWKHUDWLQJV

LVWRLQIRUPOHJDOGHFLVLRQVWUDQVIRUPWKHUDWLQJVLQWROHJDODGYLFH&I8QLWHG6WDWHVY5LFKH\

)GWK&LUDSSUDLVDOIRUDQ,56VXEPLVVLRQQRWSULYLOHJHGZKHUHLWZDV

PDGH3IRUWKHSXUSRVHRIGHWHUPLQLQJWKHYDOXHRIWKH(DVHPHQW ́

Case 5:17-cv-00220-LHK Document 704 Filed 04/23/18 Page 3 of 9


FRQWULEXWLRQVWRVXFKWHFKQRORJLHVZKLFKDUHPRQHWL]HGLQWKHIRUPRI,QWHOOHFWXDO3URSHUW\

5LJKWV3,35 ́6HH*URE'HS7UDWWHVWLI\LQJ4XDOFRPPKDVDQ3H[WHQVLYH

SRUWIROLRRI,3WKDWUHODWHVWR/7( ́DQGWKDW4XDOFRPP¶V,3KDV3YDOXH ́DQGLV3KLJKTXDOLW\ ́

,QRUGHUWRSUREHWKHEDVHVIRUWKHVHFODLPVWKH)7&QHHGVDFFHVVWRWKHGDWDUHOLHGRQE\

4XDOFRPP¶VEXVLQHVVSHUVRQQHOWRPDNHEXVLQHVVGHFLVLRQVUHODWHGWRWKHWHFKQLFDOPHULWVRILWV

LQWHOOHFWXDOSURSHUW\7KH&RXUWKDVQRW3SUHYLRXVO\DGGUHVVHG ́WKLVLVVXHWKHRQO\LVVXH

SUHVHQWHGWRWKH&RXUWLQFRQQHFWLRQZLWK0U0DUWLQ¶V'HFODUDWLRQ(&)1RZDVRQHVOLGH

WKDW0U0DUWLQLQVLVWHGZDV3SUHSDUHGDWWKHUHTXHVWRI ́4XDOFRPP¶V*HQHUDO&RXQVHO3VRWKDW

KHFRXOGSURYLGHOHJDODGYLFH ́(&)1RDW7KH&RXUWKDGQRRFFDVLRQWRFRQVLGHUWKH

SULYLOHJHVWDWXVRIWKHXQGHUO\LQJGDWDUHOLHGRQE\4XDOFRPP¶VEXVLQHVVH[HFXWLYHV

$FFRUGLQJO\WKH)7&DVNVWKDW4XDOFRPPLPPHGLDWHO\SURGXFHWKHFRQWHQWVRILWVSDWHQW

UDWLQJGDWDEDVHDQGDQ\UHODWHGGRFXPHQWVFRQFHUQLQJLWVSDWHQWUHODWHGUDWLQJVDQGPHWULFV

ZKLFK4XDOFRPPKDVZLWKKHOG,QDGGLWLRQ4XDOFRPPVKRXOGEHRUGHUHGQRWWRLQVWUXFW

ZLWQHVVHVWRUHIXVHWRDQVZHUUHODWHGTXHVWLRQVGXULQJGHSRVLWLRQVDQG4XDOFRPPVKRXOG

UHSURGXFHZLWQHVVHVZKRKDYHUHIXVHGWRDQVZHUTXHVWLRQVRQWKLVWRSLFDWSDVWGHSRVLWLRQV

II. Qualcomm’s Position

A. The Patent Ratings Reflect Attorneys’ Judgments and Are Used for Legal

Purposes.



4XDOFRPPLPSOLHVWKH6RXWKHUQ'LVWULFWRI&DOLIRUQLDKDVUXOHGWKDWWKLVGDWDLVQRWXVHGWRYDOXHSDWHQWV

DQGLVWKHUHIRUHSULYLOHJHG,QIDFWKRZHYHUWKDWFRXUWKHOGRQO\WKDWWKHGDWDZDVQRWFDOOHGIRUE\

$SSOH¶VLQWHUURJDWRULHVDQGVSHFLILFDOO\GHFOLQHGWRUXOHRQZKHWKHUWKHGDWDZDVSURWHFWHGE\SULYLOHJH

2UGHU(&)1R1RFY6'&DO0DU3>7@KH&RXUWZLOOQRWUXOHRQZKHWKHU

WKHUDWLQJV\VWHPSURSHUO\LVWKHVXEMHFWRIDWWRUQH\FOLHQWSULYLOHJHRUZRUNSURGXFWSURWHFWLRQ ́

7KH)7&¶VDUJXPHQWWKDW4XDOFRPP¶VSDWHQWUDWLQJVDUHQRWSULYLOHJHGLVEDVHGRQDW

OHDVWWZRVLJQLILFDQWO\HUURQHRXVSUHPLVHVWKDW4XDOFRPP¶VLQWHUQDOSDWHQWUDWLQJVDUH

FUHDWHGE\QRQOHJDOSHUVRQQHODQGUHIOHFW3WHFKQLFDO ́UDWKHUWKDQOHJDOMXGJPHQWVDQGWKDW

WKHSDWHQWUDWLQJVDUHSULPDULO\XVHGIRUEXVLQHVVSXUSRVHV7KH)7&¶VPRWLRQGLVUHJDUGV

H[WHQVLYHHYLGHQFHFRQWUDGLFWLQJWKHVHSUHPLVHVLQFOXGLQJDYHULILHGLQWHUURJDWRU\UHVSRQVHDQG

VZRUQGHFODUDWLRQVE\WZR4XDOFRPP,3ODZ\HUVZKRKDYHRYHUVHHQLWVSDWHQWUDWLQJVV\VWHPV

,QVWHDGWKH)7&UHOLHVRQGHSRVLWLRQWHVWLPRQ\RIDZLWQHVVZKRGLVFODLPHGSHUVRQDONQRZOHGJH

RIWKHUHOHYDQWIDFWVDQGRQPLVFKDUDFWHUL]DWLRQVRI4XDOFRPPGRFXPHQWV%RWKRIWKH)7&¶V

SUHPLVHVDUHZURQJDQGWKHUDWLQJVDUHSULYLOHJHG

)LUVWWKHSDWHQWUDWLQJVDVVLJQHGWR4XDOFRPP¶VSDWHQWVDQGSDWHQWDSSOLFDWLRQVZKHWKHU

DVFRORUFRGHVRUQXPHULFDODUHDVVLJQHGE\,3ODZ\HUVDQGUHIOHFWOHJDODQDO\VHV$V5RJHU

0DUWLQ4XDOFRPP¶VWKHQ&KLHI,36WUDWHJLVWH[SODLQHGLQWKHGHFODUDWLRQKHVXEPLWWHGLQ

FRQQHFWLRQZLWKDSULRU)7&PRWLRQRSSRVLQJWKHFODZEDFNRIDQDQDO\VLVUHIOHFWLQJ

4XDOFRPP¶VSDWHQWUDWLQJV4XDOFRPP,3DWWRUQH\VDVVLJQHG3FRORU ́UDWLQJVWRSDWHQWVRUSDWHQW

DSSOLFDWLRQVEDVHGRQ

4XDOFRPPDWWRUQH\VDOVRKDYHDVVLJQHGQXPHULFDOUDWLQJVWRSDWHQWVDVXEVHWRIWKRVH

QXPHULFDOUDWLQJVZDVGHWHUPLQHGE\4XDOFRPP¶VRXWVLGHFRXQVHOZKHUHDVWKHUHPDLQGHUZHUH

GHWHUPLQHGE\4XDOFRPPDWWRUQH\VLQLWV,3'HSDUWPHQW5HVSWR,QWHUURJDWRU\1RDW

35HVS1R ́$QGDOWKRXJKWKHFULWHULDXVHGWRUDWHSDWHQWVKDVHYROYHGWKRVHFULWHULD

WKHPVHOYHVZHUHGHYHORSHGE\4XDOFRPP,3DWWRUQH\VWRDFFRPSOLVKOHJDOSXUSRVHV,G

Case 5:17-cv-00220-LHK Document 704 Filed 04/23/18 Page 4 of 9




7KH)7&UHIHUVWRVHYHUDOGRFXPHQWVJHQHUDOO\FRQFHUQLQJWKH,3'HSDUWPHQWEXWQRQHRIWKHFLWHG

GRFXPHQWVLQFOXGLQJWKHFODZHGEDFNGRFXPHQWWKH)7&UHIHUVWRFRQFHUQSDWHQWUDWLQJVDQGUDWLQJVDUH

QRWXVHGWRFRPSDUH4XDOFRPP¶VSRUWIROLRWRRWKHUV¶:DG]U\N'HFO4XDOFRPPGRHVQRWFODLP

WKDWDOORIWKH,3'HSDUWPHQW¶VGRFXPHQWVDUHSULYLOHJHGDQGKDVLQIDFWSURGXFHGUHVSRQVLYHQRQ

SULYLOHJHG,3'HSDUWPHQWPDWHULDOV7KHLVVXHKHUHLVOLPLWHGWRDVSHFLILFVHWRILQIRUPDWLRQ2WKHSDWHQW

UDWLQJV2DQGWKHGRFXPHQWVFLWHGE\WKH)7&GRQRWUHODWHWRWKHP7KH)7&¶VVXJJHVWLRQWKDW

4XDOFRPP3FODLPVSULYLOHJHRYHUWKHSRWHQWLDOO\UHOHYDQWHYLGHQFH ́LVZURQJ4XDOFRPPKDVSURYLGHG

H[WHQVLYHLQIRUPDWLRQFRQFHUQLQJWKHQDWXUHDQGSXUSRVHVRIWKHUDWLQJV4XDOFRPPZLOOSURYLGHDQ\RI

WKHGRFXPHQWVWRWKH&RXUWXSRQUHTXHVW

UNREDACTED VERSION OF DOCUMENT FILED UNDER SEAL

7KH)7&¶VUHIHUHQFHWR4XDOFRPP¶V3DWHQW5HYLHZ%RDUGV335%V ́LVDUHGKHUULQJ

7KH35%VGRQRWGHWHUPLQHSDWHQWUDWLQJV$WWRUQH\VLQ4XDOFRPP¶V,3'HSDUWPHQWFRQYHQH

DQGFKDLUWKH35%VZKLFKDUHGHVLJQHGWRSURYLGHWKRVHDWWRUQH\VZLWKLQIRUPDWLRQWRLQIRUP

WKHLUOHJDOGHFLVLRQVFRQFHUQLQJSDWHQWSURVHFXWLRQ:DGU]\N'HFODW7RHUURQHRXVO\

FODLPWKDW35%VDVVLJQSDWHQWUDWLQJVEDVHGRQDQLQYHQWLRQ¶V3WHFKQLFDOPHULW ́LQVWHDGRIOHJDO

DQDO\VHVWKH)7&UHOLHVH[FOXVLYHO\RQWHVWLPRQ\E\'U%DD]L]$FKRXUDQHQJLQHHUZKROHDGV

4XDOFRPP¶VPRGHPGHYHORSPHQWHIIRUWVEXWZKRWDNHVQRSDUWLQ35%VRULQSDWHQWUDWLQJV

,QGHHG'U$FKRXUUHSHDWHGO\WHVWLILHGWKDWKHZDVQRWLQYROYHGLQUDWLQJSDWHQWVGLGQRWHYHQ

NQRZZKDWKLVRZQSDWHQWVKDGEHHQUDWHGGLGQRWNQRZZKRWKHPHPEHUVRIWKH35%VDUHDQG

KDGQRWVRPXFKDVLQWHUDFWHGZLWKDQ\35%LQ3\HDUV ́$FKRXU7UDW

,QDQ\HYHQWLWLVZHOOVHWWOHGWKDWWHFKQLFDOGLVFXVVLRQVZLWKODZ\HUV

FRQFHUQLQJSDWHQWDQGSDWHQWDELOLW\LVVXHVOLNHWKRVHWKDWRFFXULQFRQQHFWLRQZLWKWKH35%VDUH

SULYLOHJHG,QUH6SDOGLQJ6SRUWV:RUOGZLGH,QF)G)HG&LU

*DPHV8,QFY*DPH7UXFN/LF//&:/
'$UL]$XJVHH

DOVR&DOLIRUQLD,QVWRI7HFKY%URDGFRP/WG1R&9*:$*5;:/

DW
&'&DO0DU37KHIDFWWKDWDWWRUQH\VRQ>D3DWHQW5HYLHZ

&RPPLWWHH@UHTXLUHGHQJLQHHUVRUWHFKQLFDOH[SHUWVWRDVVLVWWKHPLQHYDOXDWLQJWKHLQYHQWLRQIRU

SXUSRVHVRIGHWHUPLQLQJZKHWKHUWRSXUVXHDSDWHQWGRHVQRWGLVTXDOLI\>DVXEPLVVLRQWRWKH

&RPPLWWHH@IURPEHLQJFRYHUHGE\WKHDWWRUQH\FOLHQWSULYLOHJH ́

6HFRQGWKHHYLGHQFHGHPRQVWUDWHVWKDWUDWLQJVDUHSULPDULO\XVHGIRUOHJDOSXUSRVHVWR

GHYHORSSDWHQWSURVHFXWLRQDQGOLWLJDWLRQVWUDWHJLHVLQFOXGLQJWRDVVHVVWKHVXLWDELOLW\RISDWHQWV

IRUDVVHUWLRQLQOLWLJDWLRQ(J 5HVS1RDW(&)1RDW:DGU\]N'HFODW

7KH)7&¶VDVVHUWLRQWKDWWKHHYLGHQFHRQWKLVLVVXHLV3DWEHVWFRQIOLFWLQJ ́LVEDVHGRQ

PLVFKDUDFWHUL]DWLRQVRIWKHGRFXPHQWVDQGWHVWLPRQ\LWFLWHV)RUH[DPSOHWKHFLWHGWHVWLPRQ\

E\0U0DUWLQVKRZVWKDWPHPEHUVRIWKH,3'HSDUWPHQWQRW4XDOFRPP¶VPDQDJHPHQWWHDP

FDQDFFHVVWKHGDWDEDVHFRQWDLQLQJLQIRUPDWLRQDERXW4XDOFRPP¶VSDWHQWVDQGWKDWRQO\RQ

FHUWDLQRFFDVLRQVKDVKHSURYLGHGUDWLQJVUHODWHGLQIRUPDWLRQWR47/0DUWLQ7UDW

,PSRUWDQWO\QR47/ZLWQHVVKDVVXJJHVWHGWKDWUDWLQJVZHUHXVHGLQ

OLFHQVHQHJRWLDWLRQVDQGFRQWUDU\WRWKH)7&¶VDVVHUWLRQWKHUDWLQJVDUHQRWDQDWWHPSWWR

3PRQHWL]H ́4XDOFRPP¶VSDWHQWSRUWIROLR,GDW3,KDYHQ¶WVSHQWDQ\WLPHWU\LQJWR

WKLQNDERXWUHODWLRQVKLSVEHWZHHQFRORUFRGHVDQGPRQHWDU\YDOXHWR4XDOFRPP ́VHHDOVR

5HVS1RDW:DGU]\N'HFODW

)LQDOO\WKH)7&VXJJHVWVWKDWUDWLQJVDUHXVHGDW

5	'PHHWLQJV3WRHYDOXDWHUHVHDUFKDQGGHYHORSPHQWSURMHFWV ́EXWWKHFLWHGWHVWLPRQ\E\

'U$FKRXUZDVRQO\WKDWUDWLQJVZHUH3VRPHWLPHVPHQWLRQ>HG@ ́DWWKRVHPHHWLQJV$FKRXU

7UDW7KDWGRHVQRWDSULPDU\SXUSRVHPDNH(YHQLIOHJDODGYLFHPD\DVVLVWWKH

HYDOXDWLRQRIDSRWHQWLDOEXVLQHVVWUDQVDFWLRQOLNHDQDFTXLVLWLRQRUDFRUSRUDWHUHVWUXFWXULQJ

Case 5:17-cv-00220-LHK Document 704 Filed 04/23/18 Page 5 of 9


3DGYLFHRQWUDQVDFWLRQDOPDWWHUV ́LV3MXVWWKHVRUWRIODZ\HUO\WKLQJRQHZRXOGH[SHFWRIDQLQ

KRXVHODZ\HU ́([[RQ0RELO&RUSY+LOO)GWK&LU

7KH7&/GHFLVLRQUHOLHGXSRQE\WKH)7&FRQILUPVWKDW4XDOFRPP¶VSDWHQWUDWLQJVDUH

SULYLOHJHG,Q7&/XQOLNHLQWKLVFDVH(ULFVVRQ¶VZLWQHVVHVWHVWLILHGWKDWLWVUDWLQJVZHUH3XVHG

IRUPDQDJHPHQWSXUSRVHVVXFKDVKRZZHYDOXHWKHGLIIHUHQWSDWHQWV ́([DW)XUWKHU

(ULFVVRQUHIXVHGWRSURYLGHDQ\LQIRUPDWLRQFRQFHUQLQJ3ZKDWIDFWRUVLQIOXHQFH ́LWVUDWLQJV7KH

FRXUWWKHUHIRUHZDVXQDEOHWRFRQFOXGHWKDWWKHUDWLQJVUHIOHFWHG(ULFVVRQDWWRUQH\V¶OHJDO

MXGJPHQWVRUVHUYHGSULPDULO\DOHJDOSXUSRVH([DW+HUH4XDOFRPPKDVRIIHUHGWZR

GHFODUDWLRQVDQGDQH[WHQVLYHLQWHUURJDWRU\UHVSRQVHHVWDEOLVKLQJWKHOHJDOSXUSRVHDQGFRQWHQW

RIWKHSDWHQWUDWLQJV

7KH)7&VLPSO\FKRRVHVWRGLVUHJDUGVXFKHYLGHQFH

B. Qualcomm Does Not Rely on the Privileged Ratings in This Litigation.

3ULYLOHJHLVQRWZDLYHGXQOHVVDSDUW\SODFHVWKHSULYLOHJHGLQIRUPDWLRQLWVHOIDWLVVXH

5RFN5LYHU&RPPVY8QLYHUVDO0XVLF*URXS)GWK&LU'XNHVY

:DO0DUW6WRUHV,QF1RFY&5%-6&:/DW
1'&DO0DU

+HUH4XDOFRPPGRHVQRWLQWHQGWRRIIHUDQ\HYLGHQFHEDVHGRQLWVSDWHQWUDWLQJV

$OWKRXJK4XDOFRPPLQWHQGVWRRIIHUHYLGHQFHFRQFHUQLQJLWVFRQWULEXWLRQVWRFHOOXODU

WHFKQRORJLHVVXFKHYLGHQFHZLOOEHEDVHGRQZLWQHVVHV¶RZQH[SHUWLVHRUNQRZOHGJHQRWRQ

SULYLOHJHGSDWHQWUDWLQJV(J*URE7UDW)XUWKHUWKHSDWHQWUDWLQJVGRQRWDVVHVV

WKHPRQHWDU\YDOXHRI4XDOFRPP¶VLQYHQWLRQV,QGHHGLQWKHFRRUGLQDWHGDFWLRQLQWKH6RXWKHUQ

'LVWULFW$SSOHPRYHGWRFRPSHO4XDOFRPPWRUHVSRQGWRLQWHUURJDWRULHVDVNLQJ4XDOFRPPWR

GHVFULEHWKHYDOXHLWDWWULEXWHVWRLWVSDWHQWV$OWKRXJKWKH&RXUWGLGQRWUHDFKWKHSULYLOHJH

LVVXH0DJLVWUDWH-XGJH'HPELQGHQLHG$SSOH¶VUHTXHVWIRUSDWHQWUDWLQJVFRQFOXGLQJ37KH

&RXUWLVQRWSHUVXDGHGWKDW4XDOFRPP¶VLQWHUQDOSDWHQWUDWLQJV\VWHPDVGLVFXVVHGLQWKLV

PRWLRQYDOXHVWKHSDWHQWVZLWKLQWKHPHDQLQJRIWKHVHLQWHUURJDWRULHV ́1RFY

(&)DW6'&DO

C. The FTC’s Renewed Attempt To Obtain Qualcomm’s Privileged Patent



,Q6DQ'LVN&RUSWKHGRFXPHQWVDWLVVXHGLG3QRWFRQWDLQDQ\OHJDODGYLFH ́6DQ'LVN&RUS

:/DW
1'&DO)HE

Ratings Should Be Denied.

)LQDOO\WKLV&RXUWKDVSUHYLRXVO\DGGUHVVHGDQGUHMHFWHGWKH)7&¶VDUJXPHQWVUHJDUGLQJ

DQDO\VHVE\4XDOFRPPODZ\HUVRI4XDOFRPP¶VSDWHQWSRUWIROLR2Q2FWREHUWKH)7&

PRYHGWRRSSRVH4XDOFRPP¶VFODZEDFNRIDQDQDO\VLVE\0U0DUWLQWKDWZDVEDVHGRQ

4XDOFRPP¶VSDWHQWUDWLQJV(&)1R0U0DUWLQH[SODLQHGLQDGHFODUDWLRQWKDWWKH

SDWHQWUDWLQJVVXPPDUL]HGLQWKHFODZHGEDFNGRFXPHQW

7KLV&RXUWZDV3SHUVXDGHGE\

4XDOFRPP¶VDVVHUWLRQRIWKHDWWRUQH\FOLHQWSULYLOHJH ́DQGGHQLHGWKH)7&¶VPRWLRQRQ

1RYHPEHU(&)1R7KH)7&DSSHDOHGWKLV&RXUW¶VUXOLQJ(&)1RDQG

WKDWDSSHDOZDVGHQLHG(&)1R7KH)7&¶VUHQHZHGDWWHPSWWRVHHNGLVFRYHU\RI

4XDOFRPP¶VSULYLOHJHGSDWHQWUDWLQJVVKRXOGOLNHZLVHEHGHQLHG7KH)7&KDVQRWVRXJKWRU

REWDLQHGOHDYHWRPRYHIRUUHFRQVLGHUDWLRQRIWKH&RXUW¶VSULRURUGHU6HH&LYLO/5$QG

DVGHVFULEHGDERYHWKHGLVFRYHU\UHFRUGLQWKLVFDVHFRQILUPVWKDW4XDOFRPP¶VSDWHQWUDWLQJV

DUHSULYLOHJHG



Case 5:17-cv-00220-LHK Document 704 Filed 04/23/18 Page 6 of 9
6

Respectfully submitted,

/s/ Jennifer Milici

Jennifer Milici, D.C. Bar No. 987096

jmilici@ftc.gov

Daniel Matheson, D.C. Bar No. 502490

dmatheson@ftc.gov

J. Alexander Ansaldo, Va. Bar No. 75870

jansaldo@ftc.gov

Joseph R. Baker, D.C. Bar No. 490802

jbaker@ftc.gov

Elizabeth A. Gillen, Ca. Bar No. 260667

egillen@ftc.gov

Federal Trade Commission

600 Pennsylvania Avenue, N.W.

Washington, D.C. 20580

Tel: (202) 326-2912; Fax (202) 326-3496

Lin W. Kahn, Ca. Bar No. 261387

lkahn@ftc.gov

Federal Trade Commission

901 Market Street, Suite 570

San Francisco, CA 94103 

Tel: (415) 848-5115; Fax: (415) 848-5184 

Attorneys for Plaintiff

FEDERAL TRADE COMMISSION

/s/ Gary Bornstein

CRAVATH, SWAINE & MOORE LLP

Gary A. Bornstein (pro hac vice)

gbornstein@cravath.com

Yonatan Even (pro hac vice) 

yeven @cravath.com

825 Eighth Avenue

New York, NY 10019-7475 

Telephone: (212) 474-1000 

Facsimile: (212) 474-3700 

KEKER VAN NEST & PETERS LLP

Robert A. Van Nest

rvannest@keker.com

Asim M. Bhansali

abhansali@keker.com

Eugene M. Paige

epaige@keker.com

633 Battery Street

San Francisco, CA 94111-1809 

Telephone: (415) 676-2289 

Facsimile: (415) 397-7188 

Case 5:17-cv-00220-LHK Document 704 Filed 04/23/18 Page 7 of 9
7

MORGAN, LEWIS & BOCKIUS LLP

Richard S. Taffet (pro hac vice) 

richard.taffet@morganlewis.com

101 Park Avenue

New York, NY 10178-0060 

Telephone: (212) 309-0060 

Facsimile: (212) 309-6001 

MORGAN, LEWIS & BOCKIUS LLP

Donn P. Pickett (SBN 72257)

donn.pickett@morganlewis.com 

Geoffrey T. Holtz (SBN 191370)

geoffrey.holtz@morganlewis.com 

One Market, Spear Street Tower

San Francisco, CA 94105-1596 

Telephone: (415) 442-1000 

Facsimile: (415) 442-1001 

MORGAN, LEWIS & BOCKIUS LLP

Willard K. Tom

willard.tom@morganlewis.com 

1111 Pennsylvania Avenue, N.W.

Washington, D.C. 20004-2541 

Telephone: (202) 739-3000 

Facsimile: (202) 739-3001 

Attorneys for Defendant

QUALCOMM INCORPORATED

Case 5:17-cv-00220-LHK Document 704 Filed 04/23/18 Page 8 of 9
FILER’S ATTESTATION

I, Gary A. Bornstein, am the ECF user whose identification and password are being used 

to file this Joint Discovery Statement. In compliance with Civil Local Rule 5-1(i)(3), I hereby 

attest that the signatories of this document have concurred in this filing. 

/s/ Gary A. Bornstein

Gary A. Bornstein

Case 5:17-cv-00220-LHK Document 704 Filed 04/23/18 Page 9 of 9