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This document is a transcript from a January 14, 2009 hearing in several patent cases between Rambus and various defendants including Hynix, Samsung, Micron, and Nanya before Judge Whyte. At the hearing, Judge Whyte outlined two potential approaches: 1) finishing judgments in existing cases, certifying issues for appeal, and staying the patent trial, or 2) proceeding with the patent trial while staying the case against Micron. He invited input from the parties on the benefits and prejudices of each approach. Micron argued for staying the entire case pending appeal, while Rambus argued for proceeding with the patent trial.

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100% found this document useful (1 vote)
75 views

Transcript

This document is a transcript from a January 14, 2009 hearing in several patent cases between Rambus and various defendants including Hynix, Samsung, Micron, and Nanya before Judge Whyte. At the hearing, Judge Whyte outlined two potential approaches: 1) finishing judgments in existing cases, certifying issues for appeal, and staying the patent trial, or 2) proceeding with the patent trial while staying the case against Micron. He invited input from the parties on the benefits and prejudices of each approach. Micron argued for staying the entire case pending appeal, while Rambus argued for proceeding with the patent trial.

Uploaded by

msaba
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF or read online on Scribd
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EXHIBIT 20

1 UNITED STATES DISTRICT COURT

2 NORTHERN DISTRICT OF CALIFORNIA

3 SAN JOSE DIVISION

4 RAMBUS INC., ) C-05-00334 RMW


) C-05-02298 RMW
5 PLAINTIFF, ) C-06-00244 RMW
)
6 VS. ) SAN JOSE, CALIFORNIA
)
7 HYNIX SEMICONDUCTOR, INC., ) JANUARY 14, 2009
HYNIX SEMICONDUCTOR AMERICA )
8 INC., HYNIX SEMICONDUCTOR ) PAGES 1-68
MANUFACTURING AMERICA INC., )
9 )
SAMSUNG ELECTRONICS CO., )
10 LTD., SAMSUNG ELECTRONICS )
AMERICA, INC., SAMSUNG )
11 SEMICONDUCTOR, INC., SAMSUNG)
AUSTIN SEMICONDUCTOR, L.P, )
12 )
NANYA TECHNOLOGY )
13 CORPORATION, NANYA )
TECHNOLOGY CORPORATION USA, )
14 )
)
15 DEFENDANTS. )
____________________________)
16 )
RAMBUS INC., )
17 )
PLAINTIFF, )
18 )
VS. )
19 )
SAMSUNG ELECTRONICS CO., )
20 LTD., SAMSUNG ELECTRONICS )
AMERICA, INC., SAMSUNG )
21 SEMICONDUCTOR, INC., SAMSUNG)
AUSTIN SEMICONDUCTOR, L.P, )
22 )
DEFENDANTS. )
23 ____________________________)

24

25

1
1 RAMBUS INC. )
)
2 PLAINTIFF, )
)
3 VS. )
)
4 MICRON TECHNOLOGY, INC. AND )
MICRON SEMICONDUCTOR )
5 PRODUCTS, INC., )
)
6 DEFENDANTS. )
____________________________)
7

9 TRANSCRIPT OF PROCEEDINGS
BEFORE THE HONORABLE RONALD M. WHYTE
10 UNITED STATES DISTRICT JUDGE

11

12 A P P E A R A N C E S:

13 FOR RAMBUS: MUNGER, TOLLES & OLSON


BY: GREGORY P. STONE,
14 FRED ROWLEY, AND
MARK R. YOHALEM
15 355 SOUTH GRAND AVE, 35TH FLOOR
LOS ANGELES, CALIFORNIA 90071
16
BY: ROSEMARIE T. RING
17 560 MISSION STREET, 27TH FLOOR
SAN FRANCISCO, CALIFORNIA 94105
18
SIDLEY, AUSTIN, LLP
19 BY: ROLLIN A. RANSOM
555 W. FIFTH STREET, SUITE 4000
20 LOS ANGELES, CALIFORNIA 90013

21 FOR SAMSUNG: WEIL, GOTSHAL & MANGES


BY: MATTHEW D. POWERS AND
22 STEVEN S. CHERENSKY
201 REDWOOD SHORES PARKWAY
23 REDWOOD SHORES, CALIFORNIA 94065

24 APPEARANCES CONTINUED ON NEXT PAGE

25

2
1

2 APPEARANCES (CONTINUED)

3 FOR MICRON: WEIL, GOTSHAL & MANGES


BY: JARED BOBROW
4 201 REDWOOD SHORES PARKWAY
REDWOOD SHORES, CALIFORNIA 94065
5

6 FOR NANYA: ORRICK, HERRINGTON & SUTCLIFFE


BY: ROBERT E. FREITAS
7 1000 MARSH ROAD
MENLO PARK, CALIFORNIA 94025
8

9 FOR HYNIX: O'MELVENY & MYERS, LLP


BY: KENNETH L. NISSLY
10 2765 SAND HILL ROAD
MENLO PARK, CALIFORNIA 94025
11
TOWNSEND AND TOWNSEND AND CREW
12 BY: THEODORE G. BROWN, III
379 LYTTON AVENUE
13 PALO ALTO, CALIFORNIA 94301

14
OFFICIAL COURT REPORTER: LEE-ANNE SHORTRIDGE, CSR, CRR
15 CERTIFICATE NUMBER 9595

16

17

18

19

20

21

22

23

24

25

3
1 SAN JOSE, CALIFORNIA JANUARY 14, 2009

2 P R O C E E D I N G S

3 (WHEREUPON, COURT CONVENED AND THE

15:00:23 4 FOLLOWING PROCEEDINGS WERE HELD:)

15:00:23 5 THE COURT: GOOD AFTERNOON, EVERYONE.

15:00:27 6 MR. STONE: GOOD AFTERNOON, YOUR HONOR.

15:00:28 7 MR. BOBROW: GOOD AFTERNOON, YOUR HONOR.

15:00:29 8 THE COURT: I'M GOING TO GIVE YOU SOME

15:00:31 9 THOUGHTS, AND THEN I'LL BRIEFLY HEAR COMMENT FROM

15:00:36 10 ANYONE WHO WISHES TO MAKE COMMENT.

15:00:42 11 MY THINKING IS THAT THE MANUFACTURERS

15:00:50 12 OUGHT TO BE GIVEN AN OPPORTUNITY TO BRIEF THE

15:00:57 13 EFFECT OF JUDGE ROBINSON'S ORDER AND WHAT THAT

15:01:05 14 REQUIRES THIS COURT TO DO; AND IF THEY FEEL THAT A

15:01:10 15 SUMMARY JUDGMENT MOTION IS APPROPRIATE, THAT THEY

15:01:13 16 MAKE THAT MOTION BASED ON THE SCHEDULE THEY

15:01:17 17 PROPOSE.

15:01:20 18 I ALSO FEEL THAT WE SHOULD KEEP THE TRIAL

15:01:27 19 SCHEDULED, AND MY THOUGHT IS THAT FEBRUARY 16TH

15:01:35 20 SHOULD BE THE TRIAL DATE, AND WE'LL SET A COUPLE OF

15:01:41 21 PRETRIAL SESSIONS IN THE WEEK BEFORE.

15:01:48 22 THE REPORTER: FEBRUARY 16TH IS A

15:01:49 23 HOLIDAY.

15:01:51 24 THE COURT: FEBRUARY 17TH, THEN.

15:01:59 25 IT SEEMS TO ME THAT THAT ACCOMPLISHES

4
15:02:03 1 FAIRNESS TO BOTH SIDES IN THE SENSE THAT IT ALLOWS

15:02:12 2 ISSUES TO BE RAISED AND RESOLVED, BUT DOES NOT

15:02:20 3 UNREASONABLY PUT OFF THE TRIAL IF THAT'S THE

15:02:23 4 APPROPRIATE WAY TO GO.

15:02:28 5 THAT BEING SAID, IT SEEMS TO ME THAT

15:02:30 6 THERE ARE TWO BASIC APPROACHES THAT COULD BE TAKEN

15:02:39 7 WITH, OBVIOUSLY, PROBABLY REFINEMENTS TO EACH.

15:02:45 8 BUT IT SEEMS TO ME THAT ONE WAY TO

15:02:48 9 PROCEED WOULD BE FOR THE COURT TO FINISH UP WHAT

15:02:55 10 NEEDS TO BE DONE TO ENTER JUDGMENT IN THE

15:03:01 11 HYNIX/RAMBUS DISPUTE; TO FINISH THE ISSUES THAT ARE

15:03:06 12 UNDER SUBMISSION FROM HAVING BEEN TRIED IN THE

15:03:09 13 CONSOLIDATED CASE AND IN THE SEPARATE

15:03:15 14 RAMBUS/SAMSUNG LITIGATION, OR ASPECT OF THE

15:03:21 15 CONSOLIDATED LITIGATION; AND FOR THE COURT THEN --

15:03:28 16 THEN HYNIX WOULD BE IN A POSITION TO FULLY APPEAL

15:03:32 17 AND THE COURT COULD CERTIFY FOR APPEAL THE CLAIM

15:03:37 18 CONSTRUCTION RULING IN THE CONSOLIDATED

15:03:43 19 PROCEEDINGS, THE JURY VERDICT IN THE CONSOLIDATED

15:03:47 20 PROCEEDINGS, THE SPOLIATION ISSUE WITH SAMSUNG AND

15:03:52 21 THE LICENSING ISSUE WITH SAMSUNG; AND STAY THE

15:03:59 22 PATENT TRIAL PENDING RESOLUTION OF THESE ISSUES ON

15:04:02 23 APPEAL.

15:04:07 24 THE OTHER APPROACH, IT SEEMS TO ME, WOULD

15:04:09 25 BE TO GO FORWARD WITH THE PATENT TRIAL AS, AS IT

5
15:04:21 1 NOW IS PENDING, WITH PROBABLY A STAY AS TO MICRON.

15:04:35 2 I FEEL, AT LEAST TENTATIVELY, THAT MICRON

15:04:40 3 AND RAMBUS HAD THEIR DAY IN COURT ON THE SPOLIATION

15:04:47 4 ISSUE, ALTHOUGH THE DECISION IS CONTRARY TO MY

15:04:57 5 CONCLUSION ON THE ISSUE IN HYNIX, BUT THAT'S WHERE

15:05:04 6 THEY, MICRON AND RAMBUS, TRIED THE CASE AND THE

15:05:10 7 RESULT IS WHAT IT IS.

15:05:13 8 SO WHEN WE GET TO HEARING FROM EACH OF

15:05:20 9 THE PARTIES, I WOULD LIKE TO HAVE THEM BRIEFLY

15:05:24 10 ADDRESS THE BENEFITS OF -- TO THE PARTIES IF I

15:05:39 11 ADOPTED ONE OF THE TWO PROPOSALS THAT I JUST

15:05:42 12 OUTLINED, AND THE PREJUDICE OR DETRIMENT TO THE

15:05:45 13 PARTIES IF I ADOPTED ONE OF THE TWO PROPOSALS.

15:05:54 14 MY THOUGHT WITH RESPECT TO THE BRIEFING

15:05:56 15 SCHEDULE, TO SOME EXTENT I AGREE WITH RAMBUS THAT

15:06:01 16 THE ISSUE OF COLLATERAL ESTOPPEL, RES JUDICATA

15:06:08 17 ISSUE PRECLUSION HAS BEEN PREVIOUSLY BRIEFED, AND I

15:06:18 18 THINK EVERYBODY MAY NOT AGREE, BUT EVERYBODY'S GOT

15:06:21 19 A PRETTY GOOD IDEA AS TO WHAT THEY FEEL THE LAW

15:06:25 20 PROVIDES IN THAT REGARD.

15:06:29 21 THERE ARE, HOWEVER, SOME ISSUES WITH

15:06:36 22 RESPECT TO THE APPLICATION IN THIS PARTICULAR

15:06:40 23 SETTING THAT PROBABLY DESERVE SOME MORE ATTENTION.

15:06:52 24 AND I ALSO THINK THAT, GIVEN WHAT'S

15:06:54 25 OCCURRED, THAT THE PARTIES HAVE A RIGHT TO MAKE A

6
15:07:07 1 MOTION AS TO WHAT THEY FEEL -- OR WHAT THEY SUBMIT

15:07:14 2 IS THE CONSEQUENCE OF WHAT'S HAPPENED.

15:07:27 3 I HAVE SOME OTHER THOUGHTS ON SOME

15:07:31 4 ISSUES, BUT I THINK I'LL WAIT AND SEE WHAT EACH OF

15:07:35 5 YOU HAS TO SAY, AND PERHAPS RAISE SOME QUESTIONS

15:07:40 6 WITH YOU WHEN YOU PERHAPS TOUCH ON THOSE ISSUES.

15:07:50 7 SO LET ME START BY HEARING FROM MICRON.

15:07:53 8 MR. BOBROW: THANK YOU, YOUR HONOR.

15:08:00 9 AS INDICATED IN THE PAPERS, OBVIOUSLY IN

15:08:02 10 TERMS OF A BRIEFING SCHEDULE, IF YOU FEEL THAT IT

15:08:05 11 IS APPROPRIATE TO BRIEF, THAT'S FINE.

15:08:07 12 FRANKLY, FROM OUR REVIEW OF THE RECORD,

15:08:10 13 OUR BELIEF WAS THAT, AT LEAST AS TO MICRON, THIS

15:08:12 14 ISSUE COULD BE RESOLVED FORTHWITH, IN OTHER WORDS,

15:08:16 15 WITHOUT BRIEFING. BUT I UNDERSTAND YOUR REQUEST

15:08:18 16 FOR A MOTION FOR SUMMARY JUDGMENT AND THAT'S INDEED

15:08:21 17 WHAT WE'LL FILE AND WE'LL DO IT ON THE SCHEDULE.

15:08:24 18 THE COURT: WHAT ABOUT THE -- THERE IS

15:08:26 19 OVERLAP -- LET ME -- MR. NISSLY MADE A NICE CHART.

15:08:42 20 THE CLAIMS THAT ARE AT ISSUE IN THE

15:09:04 21 UPCOMING ACTION OVERLAP ABOUT HALF OF THEM, AM I

15:09:17 22 CORRECT, OR --

15:09:18 23 MR. BOBROW: THERE ARE --

15:09:19 24 THE COURT: -- THAT ARE COVERED BY THE

15:09:22 25 ACTION IN DELAWARE?

7
15:09:23 1 MR. BOBROW: YES. THERE WERE TWO PATENTS

15:09:25 2 IN DELAWARE, FOUR OF WHICH OVERLAP WITH PATENTS

15:09:28 3 THAT ARE PART OF THE CASE THAT IS SET FOR TRIAL IN

15:09:33 4 THE NEAR FUTURE.

15:09:35 5 SO FOUR OF THE PATENTS ARE IDENTICAL.

15:09:37 6 THE REST OF THEM STEM FROM THE

15:09:39 7 FARMWALD-HOROWITZ FAMILY, AND THE REST OF THEM

15:09:42 8 INCLUDE APPLICATIONS FOR WHICH JUDGE ROBINSON FOUND

15:09:45 9 THERE HAD BEEN SPOLIATION.

15:09:49 10 THE COURT: THAT'S -- THAT I HAVE NOT

15:09:51 11 SPECIFICALLY LOOKED AT MYSELF, BUT THAT WAS AN

15:09:53 12 ISSUE THAT I THOUGHT PERHAPS THE PARTIES MIGHT NEED

15:10:01 13 TO ADDRESS, AND THAT IS WHETHER OR NOT THE

15:10:05 14 MISCONDUCT THAT JUDGE ROBINSON FOUND INFECTS ALL

15:10:17 15 THE PATENT CLAIMS AT ISSUE BEFORE THIS COURT, OR

15:10:21 16 ARE THERE SOME THAT AREN'T INFECTED?

15:10:26 17 MR. BOBROW: YEAH. IT INFECTS ALL OF

15:10:29 18 THEM, BUT IN WAYS IN ADDITION TO THE FACT THAT SHE

15:10:31 19 SPECIFICALLY FOUND SPOLIATION AS TO THE FILES THAT

15:10:34 20 LESTER VINCENT PURGED AT MR. KARP'S DIRECTION.

15:10:38 21 BUT BEYOND THAT, AGAIN, WE HAVE A FINDING

15:10:41 22 BY HER BY CLEAR AND CONVINCING EVIDENCE OF BAD

15:10:45 23 FAITH; WE HAVE A SPECIFIC FINDING OF PREJUDICE; A

15:10:47 24 SPECIFIC FINDING OF A DUTY TO SUSPEND THE DOCUMENT

15:10:51 25 RETENTION AND TO, IN FACT, RETAIN DOCUMENTS.

8
15:10:53 1 THE COURT: BUT THOSE WERE ALL ONLY WITH

15:10:56 2 RESPECT TO THE CLAIMS AT ISSUE IN HER CASE?

15:10:58 3 MR. BOBROW: NO, I DON'T THINK SO AT ALL.

15:11:00 4 IN OTHER WORDS, WHETHER THERE WERE THESE

15:11:02 5 PATENTS-IN-SUIT HERE AND THOSE WERE THE CLAIMS THAT

15:11:07 6 WERE IN FILE, ON FILE IN DELAWARE, THEY WOULD HAVE

15:11:10 7 TRIED THE EXACT SAME SPOLIATION CASE. IT WOULD NOT

15:11:12 8 HAVE DIFFERED BY ONE WITNESS OR ONE PIECE OF

15:11:15 9 EVIDENCE.

15:11:15 10 THE COURT: YOU MAY BE RIGHT, BUT WHAT

15:11:17 11 I'M SAYING IS HER -- MAYBE I DIDN'T SAY IT VERY

15:11:19 12 WELL.

15:11:20 13 HER DECISION SAYS, "THESE CLAIMS ARE

15:11:23 14 UNENFORCEABLE BECAUSE OF RAMBUS'S CONDUCT."

15:11:27 15 MR. BOBROW: YES, THAT'S CORRECT.

15:11:28 16 THE COURT: THOSE CLAIMS DON'T COVER --

15:11:30 17 AREN'T THE SAME CLAIMS, AREN'T ALL OF THE CLAIMS

15:11:34 18 THAT ARE AT ISSUE IN THIS CASE.

15:11:36 19 MR. BOBROW: THAT'S CORRECT. THERE ARE

15:11:37 20 FOUR PATENTS THAT ARE IDENTICAL, AND THE REST OF

15:11:40 21 THEM ARE IN THE SAME FAMILY, THAT'S CORRECT.

15:11:42 22 THE COURT: RIGHT. SO WHAT I'M SAYING

15:11:44 23 IS, AND I THINK MAYBE -- I MAY BE WRONG -- BUT I

15:11:48 24 THINK RAMBUS IS TAKING THE POSITION, IN PART, THAT

15:11:56 25 THERE IS NOT INFECTION OF AT LEAST THOSE CLAIMS

9
15:12:01 1 THAT WEREN'T AT ISSUE BEFORE HER.

15:12:04 2 MR. BOBROW: RIGHT. I -- THAT MAY BE.

15:12:07 3 IT IS WRONG. I THINK WE DEMONSTRATED WHY

15:12:10 4 IT'S WRONG IN OUR PAPERS AND, AGAIN, TO THE EXTENT

15:12:13 5 THAT THE COURT WISHES BRIEFING ON THAT, WE'RE HAPPY

15:12:16 6 TO MOVE FOR SUMMARY JUDGMENT AND ADDRESS THAT

15:12:19 7 SPECIFIC ISSUE.

15:12:20 8 I THINK THAT, AS WE TEE IT UP, THERE IS

15:12:22 9 IDENTITY OF ISSUE DOWN THE LINE, AND WHEN YOU LOOK

15:12:25 10 AT THE NINTH CIRCUIT TEST, WHICH LOOKS AT --

15:12:28 11 THE COURT: YOU MAY BE RIGHT. ALL I'M

15:12:31 12 SAYING IS THAT I THINK THAT IS AN ISSUE AND I DON'T

15:12:34 13 KNOW THAT THAT DOESN'T REQUIRE A MOTION.

15:12:36 14 MR. BOBROW: FAIR ENOUGH, AND WE WILL GO

15:12:38 15 AHEAD ON THE SCHEDULE AND MAKE THAT MOTION.

15:12:40 16 AS FAR AS THE SECOND ASPECT OF IT IN

15:12:42 17 TERMS OF PUSHING BACK THE TRIAL, I THINK THAT THAT,

15:12:47 18 BUT ACCOMPANIED BY YOUR SECOND PROPOSAL, IS WHAT

15:12:51 19 MICRON WOULD FAVOR HERE.

15:12:52 20 IN OTHER WORDS, WE WOULD PROCEED WITH OUR

15:12:54 21 MOTION FOR SUMMARY JUDGMENT.

15:12:55 22 GIVEN THE MUTUALITY THAT YOU'VE ALLUDED

15:12:58 23 TO AS BETWEEN MICRON AND RAMBUS, WE THINK THAT THIS

15:13:01 24 ENDS THE CASE.

15:13:02 25 EFFECTIVELY WHAT'S HAPPENED IS WE HAVE

10
15:13:04 1 TRIED THE THIRD PHASE OF THIS CASE IN DELAWARE, AND

15:13:07 2 BASED UPON RAMBUS'S REPRESENTATIONS AND THE WHOLE

15:13:10 3 WAY THAT THIS HAS BEEN STRUCTURED, WE THINK IT

15:13:12 4 WOULD BE CRAZY FOR MICRON TO GO AHEAD WITH THIS

15:13:15 5 TRIAL WHEN WE BELIEVE STRONGLY THAT THE PATENTS ARE

15:13:17 6 UNENFORCEABLE AS AGAINST MICRON AND WE'D BE

15:13:21 7 HAVING -- SPENDING HUNDREDS OF THOUSANDS IF NOT

15:13:24 8 MILLIONS OF DOLLARS TO PROCEED WITH THAT TRIAL.

15:13:26 9 THE COURT: WELL, ONE OF THE REASONS --

15:13:30 10 THAT'S CERTAINLY ONE.

15:13:32 11 BUT I THINK IT WAS MR. POWERS, IF I'M

15:13:37 12 REMEMBERING CORRECTLY, THAT SUGGESTED THAT THE

15:13:42 13 TRIAL DATE OUGHT TO BE SLIPPED ENOUGH SO THAT THE

15:13:45 14 PARTIES COULD SEPARATE OUT THE -- THEIR POSITIONS

15:13:50 15 WITH RESPECT TO JUDGE ROBINSON'S RULING FROM HAVING

15:13:56 16 TO FURTHER PREPARE FOR TRIAL, SO YOU DIDN'T HAVE TO

15:13:59 17 DO BOTH AT THE SAME TIME.

15:14:00 18 SO THAT, I THINK, GIVEN YOUR PROPOSED

15:14:04 19 BRIEFING SCHEDULE, I THINK A FEBRUARY 16TH -- 17TH

15:14:09 20 START DATE, ASSUMING WE NEED IT, ACCOMPLISHES THAT

15:14:17 21 NEED.

15:14:18 22 MR. BOBROW: YES. I MEAN, MICRON'S

15:14:20 23 INTEREST HERE WOULD BE, GIVEN THE RULING THAT WE

15:14:23 24 NOT HAVE TO PROCEED IN EARNEST WITH TRIAL

15:14:25 25 PREPARATION, THAT IT BE PUSHED FAR ENOUGH SO THAT

11
15:14:29 1 THE COURT COULD RENDER ITS RULING ON THE SUMMARY

15:14:31 2 JUDGMENT MOTION, AND TO THE EXTENT THAT SCHEDULE

15:14:33 3 ACCOMPLISHES THAT, THAT'S CERTAINLY FINE.

15:14:35 4 I THINK THAT AS FAR AS THE STAY, OF

15:14:39 5 COURSE, WE WOULD -- WE WOULD ASK FOR THAT TO BE

15:14:41 6 ENTERED, AS WE REQUESTED, IMMEDIATELY.

15:14:45 7 I UNDERSTAND YOUR HONOR'S WISHES WOULD BE

15:14:46 8 TO HAVE THAT DONE AS A RESULT OF WHATEVER HAPPENS

15:14:50 9 AT THE HEARING ON THE 30TH.

15:14:52 10 BUT I THINK THAT IT IS APPROPRIATE FOR A

15:14:54 11 STAY TO BE ENTERED GIVEN THE RESULT IN DELAWARE AND

15:14:56 12 GIVEN THE MUTUALITY THAT EXISTS.

15:15:00 13 I THINK THAT THE COURT'S FIRST PROPOSAL,

15:15:02 14 IF I UNDERSTOOD IT CORRECTLY, IN OTHER WORDS, TO

15:15:05 15 SORT OF FINISH EVERYTHING UP AND CERTIFY THINGS,

15:15:07 16 AND IF I HEARD IT CORRECTLY, CERTIFYING THE VERDICT

15:15:10 17 FROM THE CONDUCT PHASE OF THE CONSOLIDATED CASE, I

15:15:13 18 THINK THAT IS NOT GOING TO ACCOMPLISH MUCH

15:15:15 19 CERTAINLY VIS-A-VIS MICRON, BECAUSE JUDGE ROBINSON

15:15:18 20 SPECIFICALLY FOUND THAT OUR ANTITRUST CASE AND

15:15:20 21 DEFENSES AND THE PATENT MISUSE DEFENSE AND THE LIKE

15:15:23 22 WERE SPECIFICALLY PREJUDICED BY RAMBUS'S CONDUCT.

15:15:28 23 THE ANTITRUST CASE THAT WE HAVE IN

15:15:30 24 DELAWARE IS THE SAME AS THE CASE HERE, AND SHE

15:15:33 25 SPECIFICALLY FOUND THAT OUR CASE HAD BEEN

12
15:15:34 1 PREJUDICED BY VIRTUE OF THE DOCUMENT DESTRUCTION.

15:15:36 2 SO ANY SORT OF CERTIFICATION ON THAT, AT

15:15:39 3 LEAST AS TO MICRON, IT SEEMS TO ME WOULDN'T

15:15:41 4 ACCOMPLISH PARTICULARLY MUCH.

15:15:42 5 I THINK THAT REALLY THE PROPER COURSE IS

15:15:44 6 ENTRY OF SUMMARY JUDGMENT, AND SHORT OF THAT, ENTRY

15:15:46 7 OF A STAY, AND THEN PULLING THE 244 CASE OUT OF

15:15:49 8 THIS AND THEN PROCEEDING AS, YOU KNOW, AS YOU HAD

15:15:53 9 SUGGESTED.

15:15:53 10 THE COURT: OKAY.

15:15:54 11 MR. BOBROW: ALL RIGHT. THANK YOU.

15:15:57 12 THE COURT: MR. POWERS, YOU WANT TO GO

15:15:58 13 NEXT? OR MR. CHERENSKY. I'M SORRY. I DIDN'T MEAN

15:16:04 14 TO ASSUME ONE OR THE OTHER.

15:16:06 15 MR. POWERS: WE WILL, AS YOUR HONOR

15:16:09 16 SUGGESTED, FILE A MOTION FOR SUMMARY JUDGMENT.

15:16:12 17 I DO WANT TO -- IF THAT'S THE PATH YOUR

15:16:16 18 HONOR WISHES TO PROCEED.

15:16:18 19 AS TO SAMSUNG, OF COURSE, THERE'S A

15:16:20 20 SLIGHTLY DIFFERENT PROCEDURAL POSTURE IN THE SENSE

15:16:23 21 THAT THESE ISSUES ARE PENDING BEFORE YOUR HONOR AND

15:16:27 22 HAVE NOT BEEN RESOLVED.

15:16:29 23 SO ANOTHER WAY TO HANDLE IT -- I MEAN,

15:16:33 24 OBVIOUSLY WE CAN AND WILL MOVE FOR SUMMARY JUDGMENT

15:16:35 25 IF THAT'S WHAT YOU PREFER.

13
15:16:37 1 OBVIOUSLY WE WOULD ASK THE COURT TO TAKE

15:16:39 2 JUDICIAL NOTICE OF JUDGE ROBINSON'S OPINION AND THE

15:16:42 3 FINDINGS AND CONCLUSIONS THEREIN IN CONNECTION WITH

15:16:45 4 WHATEVER DECISION YOU ARE MAKING AS PART OF THE

15:16:47 5 SEPTEMBER TRIAL.

15:16:48 6 THOSE ARE RELATED BUT SOMEWHAT DIFFERENT

15:16:51 7 PROCEDURAL APPROACHES TO THE SAME QUESTION, WHICH

15:16:54 8 IS DECIDING THAT ISSUE AS TO SAMSUNG.

15:16:57 9 BUT WE WILL, UNDER THE BRIEFING SCHEDULE

15:16:59 10 YOUR HONOR PROPOSED, MAKE THE MOTION FOR SUMMARY

15:17:02 11 JUDGMENT TO PROVIDE YOUR HONOR WITH THE AUTHORITY

15:17:04 12 ON THE ISSUES YOU'VE RAISED.

15:17:06 13 TWO SCHEDULING ISSUES THAT I WOULD JUST

15:17:08 14 NOTE FOR THE COURT.

15:17:10 15 FEBRUARY 17, I CANNOT BE HERE. I HAVE A

15:17:13 16 MARKMAN IN TEXAS I HAVE TO DO.

15:17:15 17 THIS CASE WAS SUPPOSED TO START ON THE

15:17:18 18 20TH. THE MATH WORKED THAT I COULD HAVE DONE IT.

15:17:22 19 THE COURT: I DON'T KNOW ABOUT THAT,

15:17:24 20 GIVEN -- YOU KNOW, I THOUGHT ABOUT THAT AFTER YOU

15:17:27 21 MADE THAT PITCH BEFORE, AND I JUST -- CERTAINLY THE

15:17:31 22 TIME SHOULD HAVE BEEN SET ASIDE FOR THIS CASE.

15:17:35 23 IF YOU NEED A DAY OFF, MAYBE WE CAN WORK

15:17:38 24 THAT OUT.

15:17:39 25 BUT I'M NOT SYMPATHETIC WITH AN ARGUMENT

14
15:17:46 1 THAT IF THE CASE GETS DELAYED UNTIL FEBRUARY 17TH,

15:17:49 2 IT'S GOING TO MAKE IT IMPOSSIBLE FOR COUNSEL TO

15:17:51 3 PARTICIPATE.

15:17:52 4 MR. POWERS: I WILL JUST NOTE --

15:17:54 5 THE COURT: THE MANUFACTURERS' ESTIMATE

15:17:55 6 OF TRIAL TIME, WHICH I'M NOT GOING TO RECOGNIZE --

15:17:59 7 OR I SHOULDN'T SAY "RECOGNIZE" -- I'M NOT GOING TO

15:18:05 8 BUY, AS I PREVIOUSLY INDICATED, IN ITS ENTIRETY,

15:18:09 9 CERTAINLY IS -- WOULD HAVE PUT THE TRIAL OUT A LOT

15:18:14 10 MORE THAN I THINK IT WILL BE.

15:18:19 11 MR. POWERS: IT WOULD.

15:18:20 12 I JUST AM NOTING THAT FOR THE COURT AND

15:18:22 13 THE COURT WILL DO WHAT IT WISHES, BUT I HAVE THAT

15:18:25 14 CONFLICT.

15:18:25 15 AND I ALSO HAVE A TRIAL IN NEW JERSEY

15:18:27 16 STARTING ON FEBRUARY 23RD. SO --

15:18:29 17 THE COURT: WHEN?

15:18:30 18 MR. POWERS: FEBRUARY 23RD.

15:18:32 19 WITH REGARD TO THE TWO APPROACHES THAT

15:18:34 20 YOU NOTE, I THINK THAT THE GOAL OF HAVING -- OF

15:18:41 21 ALLOWING THE FEDERAL CIRCUIT TO ADDRESS THE

15:18:43 22 COMPETING SPOLIATION FINDINGS AT THE SAME TIME,

15:18:47 23 BEFORE THE PATENT TRIAL GOES FORWARD, IS THE RIGHT

15:18:49 24 APPROACH.

15:18:50 25 OBVIOUSLY IF THE SPOLIATION FINDING -- IF

15
15:18:54 1 THE SPOLIATION RESULT OF THAT PROCESS IS THAT

15:18:57 2 PATENT -- IS THAT RAMBUS'S PATENTS ARE

15:19:00 3 UNENFORCEABLE, THEN WE SHOULDN'T HAVE HAD THE

15:19:02 4 PATENT INFRINGEMENT TRIAL.

15:19:04 5 AND I THINK THAT GIVEN ALL THAT HAS

15:19:10 6 HAPPENED, THAT OUTCOME IS AT LEAST SUFFICIENTLY

15:19:12 7 LIKELY TO MAKE THAT THE PROPER COURSE.

15:19:16 8 THE PREJUDICE THAT RAMBUS WOULD

15:19:17 9 PRESUMABLY CITE ON THE OTHER SIDE IS A DELAY IN ITS

15:19:21 10 TRIAL, AND THAT DELAY WOULD BE OF MAYBE A YEAR AND

15:19:29 11 A HALF OR SO.

15:19:32 12 RAMBUS IS MERELY SEEKING MONEY. THIS IS

15:19:44 13 NOT SOMETHING WHERE RAMBUS HAS A PLAUSIBLE CASE OF

15:19:47 14 IRREPARABLE INJURY. IT MADE NO MOTION FOR

15:19:50 15 PRELIMINARY INJUNCTION. IT IS A LICENSING ENTITY.

15:19:52 16 AND THAT MONEY, IF IT IS ENTITLED TO IT,

15:19:54 17 WHICH THE CURRENT FRAMING OF MANY OF THE DECISIONS

15:19:57 18 WOULD SAY CERTAINLY NOT, BUT EVEN ASSUMING ALL OF

15:20:01 19 THAT GOES RAMBUS'S WAY, THAT'S JUST MONEY THAT IT'S

15:20:05 20 CLAIMING, AND THAT MONEY CAN BE PAID A YEAR AND A

15:20:10 21 HALF FROM NOW AND RAMBUS SUFFERS NO COGNIZABLE

15:20:14 22 PREJUDICE.

15:20:14 23 IT MAY WISH TO HAVE ITS RESOLUTION

15:20:16 24 EARLIER, BUT FROM A PUBLIC POLICY POINT OF VIEW,

15:20:20 25 THAT'S NOT COGNIZABLE PREJUDICE. IT'S MONEY THAT

16
15:20:23 1 COULD BE MADE WHOLE.

15:20:25 2 WITH REGARD TO OPTION B, IF YOU WERE TO

15:20:30 3 PROCEED WITH --

15:20:31 4 THE COURT: LET ME GO BACK TO OPTION A

15:20:33 5 FOR A MINUTE.

15:20:37 6 WOULDN'T IT MAKE SENSE TO CERTIFY THE

15:20:43 7 CLAIM CONSTRUCTION AND THE CONSOLIDATED CASE, AS

15:20:49 8 WELL AS THE VERDICT FROM THE CONDUCT TRIAL?

15:20:51 9 MR. POWERS: I AGREE WITH THAT.

15:20:52 10 THE COURT: OKAY.

15:20:54 11 MR. POWERS: AND FOR THE REASONS THAT

15:20:55 12 WE'VE DISCUSSED MANY TIMES, BOTH DURING THE MARKMAN

15:20:57 13 HEARING AND AFTERWARDS.

15:20:58 14 I KNOW YOUR HONOR WRESTLED WITH THE

15:21:01 15 QUESTION OF WHAT TO DO WITH THE SAME ISSUES

15:21:03 16 POST-PHILLIPS VERSUS PRE, AND YOUR HONOR'S MARKMAN

15:21:06 17 RULING EXPLICITLY FELT BOUND BY THE FEDERAL

15:21:11 18 CIRCUIT'S PRE-PHILLIPS MARKMAN RULING ON SIMILAR

15:21:14 19 ISSUES.

15:21:15 20 THE FEDERAL CIRCUIT MAY OR MAY NOT COME

15:21:18 21 OUT THE SAME WAY. THAT IS CLEARLY AN ADDITIONAL

15:21:20 22 EFFICIENCY REASON NOT TO BE HOLDING THE PATENT

15:21:23 23 TRIAL NOW WHEN THERE IS A MATERIAL LIKELIHOOD THAT

15:21:28 24 THE CLAIM CONSTRUCTION ASSUMPTIONS MAY WELL BE

15:21:31 25 REVERSED IN SOME MATERIAL RESPECTS.

17
15:21:36 1 WITH REGARD TO OPTION B -- SO OPTION A WE

15:21:40 2 THINK IS THE APPROPRIATE JUDICIAL ECONOMY APPROACH

15:21:43 3 TO TAKE.

15:21:44 4 WITH REGARD TO OPTION B, IF YOU WERE TO

15:21:47 5 PROCEED, I BELIEVE YOU WOULD HAVE -- THAT YOU

15:21:50 6 SHOULD ALSO STAY AS TO MICRON -- AS TO SAMSUNG AS

15:21:53 7 WELL, BECAUSE SAMSUNG WOULD HAVE, IN THAT

15:21:55 8 SITUATION, MANY SIMILAR INTERESTS TO MICRON, HAVING

15:21:59 9 RECEIVED A DECISION OF SPOLIATION FROM JUDGE PAYNE,

15:22:05 10 TO HAVE IT THROWN OUT ON PROCEDURAL GROUNDS, BUT

15:22:08 11 NOT SUBSTANTIVE GROUNDS.

15:22:10 12 THE COURT: THAT WAS VACATED.

15:22:12 13 MR. POWERS: EXACTLY. THAT'S WHAT I JUST

15:22:14 14 SAID. IT WAS VACATED ON PROCEDURAL GROUNDS, NOT

15:22:16 15 SUBSTANTIVE GROUNDS.

15:22:18 16 AND RAMBUS -- AND SAMSUNG HAS PENDING

15:22:19 17 BEFORE YOUR HONOR RIGHT NOW A DECISION ON THE SAME

15:22:21 18 QUESTIONS.

15:22:23 19 THAT DECISION SHOULD GO UP AND BE

15:22:25 20 RESOLVED AT THE SAME TIME.

15:22:28 21 IF SO -- AND WHEN ALL THAT IS RESOLVED,

15:22:30 22 THE SAME LOGIC UNDER OPTION A THAT ARGUES FOR

15:22:35 23 HAVING THOSE ISSUES RESOLVED AT ONE TIME BY THE

15:22:37 24 FEDERAL CIRCUIT WOULD ARGUE EQUALLY FOR HAVING

15:22:40 25 THOSE -- SAMSUNG'S ISSUES RESOLVED AT THE SAME TIME

18
15:22:44 1 SINCE THEY ARE RIPE AT THE SAME TIME.

15:22:46 2 THE COURT: WIN OR LOSE.

15:22:47 3 MR. POWERS: WIN OR LOSE.

15:22:48 4 THE COURT: OKAY.

15:22:51 5 MR. POWERS: NOTHING FURTHER FROM ME,

15:22:53 6 UNLESS YOUR HONOR HAS A QUESTION.

15:22:54 7 THE COURT: ALL RIGHT.

15:22:55 8 MR. FREITAS: YOUR HONOR, NANYA AND NANYA

15:22:57 9 U.S.A. ARE SITUATED DIFFERENTLY FROM THE OTHER

15:23:00 10 PARTIES IN VARIOUS WAYS.

15:23:02 11 I HAVE A COUPLE OF THOUGHTS. I HAVE A

15:23:06 12 CONCERN, AS MR. BOBROW I EXPECT -- EXPRESSED WITH

15:23:10 13 RESPECT TO AN APPEAL ON THE ANTITRUST ISSUES NOW.

15:23:16 14 I'D LIKE THE OPPORTUNITY TO THINK ABOUT

15:23:17 15 THIS IN GREATER DETAIL, BUT DEPENDING ON WHAT

15:23:21 16 HAPPENS WITH THE COURT'S RULING ON THE MOTIONS THAT

15:23:24 17 WILL BE FILED NOW ON THE IMPACT OF JUDGE ROBINSON'S

15:23:28 18 DECISION, WE DO HAVE A SPOLIATION CASE THAT AWAITS,

15:23:33 19 AND I THINK THAT THE RANGE OF RESULTS OF WHAT YOUR

15:23:39 20 HONOR MIGHT DO ON THE PARTIES' MOTIONS IS NOT

15:23:43 21 SIMPLY THUMBS UP, THUMBS DOWN.

15:23:46 22 I THINK THERE ARE MORE OPTIONS THAN THAT.

15:23:48 23 I THINK THAT THERE IS THE POSSIBILITY OF

15:23:52 24 ISSUE-SPECIFIC RESULTS THAT, REGARDLESS OF

15:23:54 25 EVERYTHING RAMBUS HAS SAID, NONETHELESS, THERE

19
15:23:58 1 MIGHT BE AT LEAST SOME ISSUES THAT GET TAKEN CARE

15:24:00 2 OF IN A WAY THAT'S BINDING.

15:24:03 3 AND WITHOUT KNOWING EXACTLY WHERE --

15:24:05 4 THE COURT: I'M NOT SURE I'M FOLLOWING

15:24:07 5 THAT. WHAT ARE YOU --

15:24:09 6 MR. FREITAS: THERE'S A RANGE OF

15:24:11 7 DIFFERENT FINDINGS THAT WERE MADE BY JUDGE

15:24:14 8 ROBINSON. THERE WERE A VARIETY OF ISSUES, A

15:24:16 9 VARIETY OF FINDINGS.

15:24:18 10 WHAT I'M SAYING IS SIMPLY THAT IT'S NOT

15:24:21 11 NECESSARILY THE CASE THAT THIS COURT'S RULING ON

15:24:23 12 THE APPLICATION OF ISSUE PRECLUSION WILL BE

15:24:25 13 IDENTICAL WITH RESPECT TO EVERY SINGLE ISSUE.

15:24:29 14 WE'VE EXPRESSED THE VIEW THAT, THE WAY WE

15:24:31 15 SEE IT, WHAT JUDGE ROBINSON SAID SHOULD BE BINDING

15:24:34 16 IN A WAY THAT'S PRETTY COMPLETE.

15:24:37 17 RAMBUS IS SAYING, ON THE OTHER HAND,

15:24:39 18 THERE'S NOTHING THAT JUDGE ROBINSON SAID THAT'S

15:24:42 19 BINDING AT ALL.

15:24:43 20 I'M SUGGESTING THERE'S ANOTHER RESULT

15:24:45 21 THAT COULD BE POSSIBLE.

15:24:46 22 THE COURT: WHAT ABOUT THE POSSIBILITY

15:24:47 23 THAT -- OR WHAT DO YOU THINK ABOUT THE ARGUMENT

15:24:53 24 THAT THE EFFECT OF INEQUITABLE CONDUCT, OR THE

15:25:07 25 CONDUCT THAT JUDGE ROBINSON FOUND, THE SEVERITY OF

20
15:25:15 1 IT WOULD VARY AMONG MANUFACTURERS, AND SO IT

15:25:22 2 PERHAPS SHOULD BAR, FOR EXAMPLE, CLAIMS AGAINST ONE

15:25:31 3 MANUFACTURER, BUT PERHAPS RESULT IN SOME OTHER

15:25:34 4 REMEDY VIS-A-VIS ANOTHER MANUFACTURER?

15:25:36 5 DO YOU THINK THAT'S POSSIBLE?

15:25:39 6 MR. FREITAS: I DOUBT IT.

15:25:40 7 BUT I GUESS WHAT I WOULD SAY ABOUT IT

15:25:42 8 WOULD DEPEND ON WHICH MANUFACTURER WAS IN WHICH

15:25:45 9 BOX, AND THE ONLY THING I'VE SEEN SO FAR IS THAT

15:25:47 10 RAMBUS -- EXCUSE ME -- RAMBUS SUGGESTING THAT

15:25:51 11 THERE'S A BASIS TO SAY THAT LITIGATION WASN'T

15:25:53 12 ANTICIPATED AS TO OUR CLIENTS WHEN IT -- WHEN IT

15:25:59 13 WAS BASED ON JUDGE ROBINSON'S FINDINGS AS TO

15:26:03 14 OTHERS.

15:26:03 15 I DON'T THINK THAT RESULT IS LIKELY GIVEN

15:26:05 16 THE FACT THAT THE DOCUMENT RAMBUS IDENTIFIED, THE

15:26:08 17 NUCLEAR WINTER DOCUMENT, IS DATED AFTER ONE OF THE

15:26:12 18 DOCUMENTS THAT WE CITED SHOWING SPECIFIC

15:26:14 19 ANTICIPATION OF LITIGATION AS TO NANYA AND NANYA

15:26:17 20 U.S.A.

15:26:18 21 BUT ON THAT OTHER QUESTION, YOUR HONOR,

15:26:20 22 WITH RESPECT TO THE SEVERITY OF THE REMEDY, I DON'T

15:26:23 23 THINK IT'S LIKELY THAT A LESSER REMEDY WOULD BE

15:26:27 24 AVAILABLE AGAINST ONE OR MORE OF THE MANUFACTURERS,

15:26:30 25 AND -- AS TO ONE OR MORE OF THE MANUFACTURERS, BUT

21
15:26:33 1 I'M NOT SURE WHAT THE BASIS FOR AN ARGUMENT TO THAT

15:26:35 2 EFFECT WOULD BE.

15:26:37 3 THE ONE ISSUE RAMBUS HAS ARTICULATED

15:26:41 4 WE'VE ALREADY SAID -- EXPRESSED PART OF THE REASONS

15:26:45 5 WHY WE DON'T THINK THAT PROVIDES A BASIS.

15:26:47 6 I HAVE A QUESTION, YOUR HONOR, ABOUT

15:26:49 7 OPTION B.

15:26:51 8 THE IDEA WOULD BE THAT THE PATENT TRIAL

15:26:54 9 WOULD GO FORWARD AS TO ALL OF THE MANUFACTURERS

15:26:57 10 OTHER THAN MICRON?

15:26:58 11 THE COURT: YES.

15:26:59 12 MR. FREITAS: AND THE MICRON STAY WOULD

15:27:01 13 BE -- IS THAT -- ARE THERE ANY ASSUMPTIONS ABOUT

15:27:05 14 WHAT RULING THE COURT WOULD MAKE ON THE ISSUE

15:27:08 15 PRECLUSION MOTIONS?

15:27:10 16 THE COURT: I'M -- I WAS JUST THROWING

15:27:13 17 OUT THOSE TWO POSSIBILITIES AS WAYS THAT MIGHT MAKE

15:27:19 18 SENSE. I'M NOT SUGGESTING THAT IT'S NECESSARILY

15:27:22 19 ONE OR THE OTHER, OR THAT A MOTION COULDN'T

15:27:26 20 PERSUADE ME THAT ONE OF THOSE OPTIONS, OR BOTH,

15:27:31 21 ARE -- WOULD HAVE TO BE MODIFIED.

15:27:34 22 I'M JUST TRYING TO GIVE YOU MY THOUGHT AS

15:27:37 23 TO TWO APPROACHES THAT I THOUGHT WERE REASONABLE,

15:27:43 24 SENSIBLE APPROACHES.

15:27:45 25 MR. FREITAS: UM-HUM.

22
15:27:46 1 THE COURT: I'M NOT SURE I'M ANSWERING

15:27:48 2 YOUR QUESTION.

15:27:49 3 MR. FREITAS: THAT WAS -- THAT'S ALL I

15:27:50 4 WAS ASKING, YOUR HONOR.

15:27:51 5 THE COURT: OKAY.

15:27:54 6 MR. FREITAS: WELL, WE'LL GIVE THESE

15:27:55 7 OPTIONS SOME MORE THOUGHT, DISCUSS THEM WITH OUR

15:27:59 8 CLIENTS AND WITH OUR COLLEAGUES, AND EXPRESS MORE

15:28:02 9 DETAILED VIEWS WHEN WE MAKE OUR SUBMISSIONS

15:28:05 10 PURSUANT TO THE COURT'S ORDER.

15:28:07 11 THE COURT: I HAVEN'T MADE THAT ORDER

15:28:09 12 YET, EITHER. I'M JUST -- I WAS TRYING TO COME OUT

15:28:12 13 AND SAY THIS IS WHERE I AM RIGHT NOW.

15:28:15 14 MR. FREITAS: YES, YOUR HONOR.

15:28:16 15 THE COURT: AND LET YOU RESPOND TO IT.

15:28:18 16 MR. FREITAS: RIGHT. I ADMIT THE

15:28:20 17 BRIEFING SCHEDULE.

15:28:23 18 THANK YOU, YOUR HONOR.

15:28:25 19 THE COURT: OKAY.

15:28:25 20 MR. NISSLY: GOOD AFTERNOON, YOUR HONOR.

15:28:30 21 WE APPRECIATE THE COURT'S GUIDANCE, AND

15:28:34 22 OBVIOUSLY WE'LL FILE OUR MOTIONS IN ACCORDANCE WITH

15:28:39 23 THE SCHEDULE THAT WE PROPOSED, OR THAT WAS PROPOSED

15:28:43 24 BY THE MANUFACTURERS, AND WE'LL TAKE A LOOK AT

15:28:46 25 EITHER A MOTION FOR SUMMARY JUDGMENT OR WHATEVER

23
15:28:48 1 OTHER MOTION THAT WE THINK MIGHT BE APPROPRIATE

15:28:50 2 UNDER THE CIRCUMSTANCES.

15:28:52 3 BUT WE CERTAINLY APPRECIATE THE COURT'S

15:28:54 4 COMMENTS IN THAT REGARD.

15:28:56 5 ONE OF THE THINGS I WOULD SAY IN RESPONSE

15:28:59 6 TO YOUR HONOR'S SUGGESTIONS OF POSSIBLE WAYS TO

15:29:03 7 MOVE FORWARD WOULD SIMPLY BE TO CIRCLE BACK AND

15:29:07 8 POINT OUT THAT AS THINGS HAVE DEVELOPED IN THE

15:29:09 9 COURSE OF THIS CASE OVER THE YEARS, HOW

15:29:12 10 CONSOLIDATED IT HAS BECOME AND HOW INTERTWINED IT'S

15:29:17 11 BECOME, AND I WAS STRUCK IN THAT REGARD BY A

15:29:19 12 STATEMENT, FRANKLY, FROM A BRIEF THAT RAMBUS

15:29:22 13 FILED -- AND IT'S NOT OFTEN, OBVIOUSLY, I QUOTE ONE

15:29:26 14 OF THEIR BRIEFS -- FROM AUGUST OF 2008 WHICH I

15:29:31 15 THOUGHT WAS APPROPRIATE FOR THE DISCUSSION WE'RE

15:29:33 16 GOING TO HAVE HERE THIS AFTERNOON.

15:29:35 17 AND I'M READING FROM A BRIEF THAT RAMBUS

15:29:39 18 FILED ON THEIR CONSOLIDATED OPPOSITIONS TO THE STAY

15:29:43 19 MOTIONS THAT WERE FILED LAST, LAST YEAR.

15:29:46 20 AND RAMBUS WROTE, ON PAGE 2, "THE HISTORY

15:29:49 21 OF THIS LITIGATION, INCLUDING THE POSITIONS JOINTLY

15:29:52 22 TAKEN BY THE MANUFACTURERS AT THE SUMMARY JUDGMENT

15:29:55 23 STAGE, CONFIRMED THAT RAMBUS'S PATENT CLAIMS AND

15:29:58 24 THEIR DEFENSES ARE DOMINATED BY COMMON AND

15:30:01 25 INTERWOVEN ISSUES."

24
15:30:03 1 AND THAT'S CERTAINLY TRUE, AND THAT'S ONE

15:30:05 2 OF THE POINTS, ONE OF THE REASONS WHY WE GAVE YOU

15:30:08 3 THE CHART THAT WE DID THAT SHOWED THE OVERLAP

15:30:11 4 BETWEEN THE MICRON DELAWARE CASE, OUR 905 CASE, THE

15:30:19 5 334 CASE WHICH WE'RE TALKING ABOUT THIS AFTERNOON

15:30:22 6 IN TERMS OF SCHEDULE, AND THE RE-EXAMINATIONS.

15:30:24 7 AND IT SEEMS TO US THAT THIS ISSUE OF

15:30:27 8 SPOLIATION, WHICH YOU TOOK UP FIRST AND YOU HEARD

15:30:29 9 AND OBVIOUSLY YOU CAME OUT AT A DIFFERENT PLACE

15:30:32 10 THAN NOW TWO OTHER FEDERAL DISTRICT JUDGES HAVE

15:30:35 11 COME OUT, IS THE ONE ISSUE THAT WE'VE EVER SEEN IN

15:30:37 12 THIS CASE WHICH CUTS ACROSS ALL OF THIS, WHICH

15:30:41 13 CUTS, AS WE SAID IN OUR PAPERS, THIS GORDIAN KNOT,

15:30:45 14 AND IT SEEMS TO US THAT WHAT WE OUGHT TO DO IS

15:30:47 15 FOCUS ON THAT ISSUE AND GET THAT RESOLVED IN A WAY

15:30:51 16 THAT IS CONSISTENT FOR ALL THE MANUFACTURERS ACROSS

15:30:53 17 THE INDUSTRY, BECAUSE OBVIOUSLY THAT'S WHAT WE HAVE

15:30:56 18 HERE, AS THE COURT CERTAINLY HAS COME TO

15:30:59 19 APPRECIATE. WE HAVE AN INDUSTRY-WIDE ISSUE AND AN

15:31:01 20 INDUSTRY-WIDE PROBLEM.

15:31:04 21 AND WE DO NOT SEE ANY LEGAL BASIS UPON

15:31:06 22 WHICH PATENTS ARE UNENFORCEABLE AS TO MICRON ON

15:31:11 23 CERTAIN PRODUCTS, AND NOT AS TO HYNIX OR SAMSUNG OR

15:31:14 24 NANYA OR ANYONE ELSE.

15:31:15 25 THE COURT: I SUPPOSE IT'S THEORETICALLY

25
15:31:17 1 POSSIBLE, THOUGH, THAT -- I MEAN, I WOULD AGREE

15:31:20 2 THAT I DON'T THINK IT'S GOING TO HAPPEN, BUT THAT

15:31:25 3 THE FEDERAL CIRCUIT COULD AFFIRM A FINDING OF

15:31:30 4 SPOLIATION AS TO -- IN THE MICRON CASE AND AFFIRM A

15:31:37 5 FINDING OF NO SPOLIATION IN YOUR CASE ON THE BASIS

15:31:40 6 THAT IT'S A FACTUAL QUESTION AND THE COURT

15:31:45 7 INTERPRETED FACTS DIFFERENTLY.

15:31:47 8 MR. NISSLY: WE BELIEVE -- I'LL AGREE

15:31:49 9 WITH YOUR HONOR. IT'S THEORETICALLY POSSIBLE. I

15:31:52 10 DON'T THINK IT'S LIKELY.

15:31:53 11 THE COURT: I DON'T THINK IT IS, EITHER,

15:31:54 12 AND I THINK IN SOME WAYS IT WOULD BE UNFORTUNATE IF

15:31:57 13 THAT OCCURRED.

15:31:58 14 MR. NISSLY: AGREED.

15:31:59 15 OBVIOUSLY THIS IS A DECISION THAT NEEDS A

15:32:02 16 CONSISTENT TREATMENT, AND THAT'S WHY WE BELIEVE

15:32:04 17 THAT THE RIGHT WAY TO MOVE FORWARD ON THIS IS, AS

15:32:07 18 THE COURT SUGGESTED, TO FILE MOTIONS, TO GET IT

15:32:09 19 SORTED OUT BEFORE YOU, AND THEN ALLOW THOSE -- YOUR

15:32:12 20 DECISIONS ON THOSE ISSUES TO GO TO THE FEDERAL

15:32:14 21 CIRCUIT, ALONG WITH THE APPEAL THAT RAMBUS PROMISES

15:32:18 22 FROM DELAWARE, AND HAVE THE CIRCUIT FOCUS ON THOSE

15:32:21 23 ISSUES AND RESOLVE THEM.

15:32:23 24 THERE ARE MANY OTHER VERY DIFFICULT

15:32:25 25 ISSUES BEFORE YOUR HONOR, AS YOU WELL APPRECIATE,

26
15:32:27 1 THAT CAN TAKE UP AN ENORMOUS AMOUNT OF YOUR TIME

15:32:32 2 AND OUR TIME AND OUR RESOURCES, WHICH ARE OBVIOUSLY

15:32:34 3 NOT UNLIMITED, BUT HAVE BEEN SORELY TAXED BY THIS

15:32:37 4 LITIGATION, AND REALLY FOCUS ON THOSE.

15:32:40 5 THAT'S WHY WE ASKED YOU TWICE BEFORE FOR

15:32:42 6 A 1292(B) CERTIFICATION, AND THAT'S WHY WE'LL ASK

15:32:46 7 YOU FOR IT AGAIN, BECAUSE WE THINK THAT'S THE WAY

15:32:49 8 TO MOVE FORWARD. LET'S GET THOSE ISSUES RESOLVED

15:32:52 9 ON AN INDUSTRY-WIDE BASIS AND THEN LET'S SEE WHAT'S

15:32:55 10 LEFT WITH REGARD TO THAT.

15:32:57 11 AND THAT'S A POINT PERHAPS OTHER COUNSEL

15:32:59 12 MENTIONED, BUT PARTICULARLY WHEN WE THINK ABOUT THE

15:33:02 13 CONDUCT CASE, FOR EXAMPLE, AND THE CONDUCT TRIAL

15:33:04 14 THAT WE HAD LAST YEAR.

15:33:05 15 CERTAINLY HYNIX BELIEVES THAT THAT CASE

15:33:08 16 WAS TAINTED BY THE FACT THAT WE DID NOT HAVE ACCESS

15:33:11 17 TO EVIDENCE THAT RAMBUS DESTROYED.

15:33:14 18 THE COURT: WHY SHOULDN'T THAT CASE BE

15:33:18 19 CERTIFIED FOR APPEAL?

15:33:20 20 MR. NISSLY: BECAUSE IT IS TAINTED BY THE

15:33:22 21 ALLEGATIONS OF SPOLIATION, BECAUSE WE WERE --

15:33:25 22 THE COURT: WHY SHOULDN'T --

15:33:27 23 MR. NISSLY: I'M SORRY.

15:33:27 24 THE COURT: WHY SHOULDN'T IT BE CERTIFIED

15:33:29 25 FOR APPEAL, TOO?

27
15:33:30 1 MR. NISSLY: BECAUSE WE BELIEVE THAT THAT

15:33:31 2 OUGHT TO AWAIT THE RESOLUTION OF THE SPOLIATION

15:33:33 3 ISSUES BECAUSE IT CUTS ACROSS ALL OF THESE.

15:33:36 4 THE COURT: RIGHT.

15:33:37 5 MR. NISSLY: I'M SORRY.

15:33:38 6 THE COURT: BUT COULDN'T THE FEDERAL

15:33:39 7 CIRCUIT SAY THERE WAS SPOLIATION; THEREFORE, THIS

15:33:47 8 VERDICT CAN'T STAND? OR SAY THERE WASN'T AND IT

15:33:51 9 SHOULD STAY?

15:33:52 10 I MEAN, WHAT'S THE POINT OF -- IF THERE

15:33:56 11 IS A STAYING FOR THE PURPOSES OF RESOLVING SOME

15:34:01 12 ISSUES, WHY SHOULDN'T THE KEY ISSUES GET RESOLVED

15:34:06 13 AT THE SAME TIME?

15:34:07 14 MR. NISSLY: BECAUSE, YOUR HONOR --

15:34:09 15 PARDON ME. I DIDN'T MEAN TO STEP ON YOU.

15:34:11 16 THE COURT: THAT'S OKAY. YOU'RE ALWAYS

15:34:13 17 VERY PROFESSIONAL, SO DON'T WORRY ABOUT IT.

15:34:24 18 IF THE -- LET'S ASSUME THAT IT WENT UP

15:34:29 19 AND THE COURT SAID, "WE FEEL THAT THE FINDING OF NO

15:34:35 20 SPOLIATION IS AFFIRMED."

15:34:44 21 MR. NISSLY: UM-HUM.

15:34:45 22 THE COURT: AND IT COMES BACK FOR TRIAL.

15:34:48 23 AND THEN IT'S TRIED AND GOES UP ON APPEAL

15:34:53 24 AND THE COURT SAYS, "CLAIM CONSTRUCTION WAS WRONG."

15:34:58 25 WHY SHOULDN'T THOSE THINGS BE DONE

28
15:35:00 1 TOGETHER?

15:35:00 2 MR. NISSLY: I'D PUT CLAIM CONSTRUCTION

15:35:02 3 IN A SEPARATE BUCKET BECAUSE IT DOES PRESENT A

15:35:06 4 DIFFERENT SET OF LEGAL ISSUES AND THERE ARE -- THE

15:35:09 5 CLAIM CONSTRUCTION ISSUE MAY MAKE MORE SENSE TO GO

15:35:11 6 UP AT THIS POINT THAN OTHERS, AND THAT'S WHY I SAY

15:35:16 7 I'D PUT IT IN A SEPARATE BUCKET.

15:35:18 8 BUT WITH REGARD TO THE CONDUCT ISSUES

15:35:19 9 THAT WERE TRIED, THOSE, WE BELIEVE, AS I JUST SAID,

15:35:23 10 ARE TAINTED BY THE ISSUE OF SPOLIATION. BUT PUT

15:35:27 11 THAT ASIDE.

15:35:28 12 SPOLIATION GOES UP AND THE FEDERAL

15:35:30 13 CIRCUIT AFFIRMS YOU AND SAYS, "NO, JUDGE WHYTE WAS

15:35:33 14 CORRECT ON HIS ANALYSIS," OR "WE FIND A FACTUAL

15:35:37 15 DIFFERENCE, SOMEHOW, BETWEEN WHAT JUDGE WHYTE DID

15:35:39 16 AND WHAT JUDGE ROBINSON DID," THEN THAT CASE CAN

15:35:43 17 COME BACK HERE AND BE FINISHED LIKE MANY OTHER

15:35:45 18 CASES THAT ARE IN THIS SORT OF POSTURE.

15:35:47 19 SO THAT I DON'T SEE AS AN ISSUE. IN

15:35:50 20 FACT, IT WOULD BE, TO MY WAY OF THINKING, MORE

15:35:55 21 JUDICIALLY EFFICIENT TO DO IT THAT WAY THAN ANOTHER

15:35:58 22 WAY.

15:35:59 23 AND AS MR. POWERS POINTED OUT, THERE'S NO

15:36:02 24 PREJUDICE TO RAMBUS HERE. THIS IS A CASE ABOUT

15:36:04 25 ROYALTIES AND MONEY. AND SO THERE'S -- THAT'S --

29
15:36:08 1 THAT'S REALLY NOT AN ISSUE.

15:36:10 2 THE COURT: IF I HEARD MR. POWERS

15:36:11 3 CORRECTLY, HE WAS SUGGESTING THAT THOSE -- THAT THE

15:36:15 4 ISSUE OF CLAIM CONSTRUCTION AND THE CONDUCT TRIAL

15:36:17 5 MADE SENSE TO CERTIFY.

15:36:19 6 MR. NISSLY: HE DID SAY THE CONDUCT

15:36:20 7 TRIAL, AND THAT'S WHERE I PART COMPANY WITH HIM.

15:36:23 8 THE COURT: OKAY.

15:36:24 9 MR. NISSLY: BECAUSE I THINK THAT IS AN

15:36:25 10 ISSUE THAT IS DIRECTLY AFFECTED BY THE SPOLIATION

15:36:27 11 ISSUES AND ONE THAT OUGHT TO BE PUT ASIDE WHILE WE

15:36:31 12 SORT OUT WHERE ARE WE WITH SPOLIATION GIVEN THE

15:36:34 13 FACT THAT WE'VE NOW HAD THESE DIFFERENT DECISIONS

15:36:37 14 BY FEDERAL DISTRICT JUDGES, FEDERAL DISTRICT COURTS

15:36:40 15 ON WHETHER OR NOT SPOLIATION IS PRESENT.

15:36:42 16 THERE IS A WHOLE COMPLEX OF OVERLAPPING

15:36:45 17 ISSUES BETWEEN THE 334 CASE AS IT INVOLVES HYNIX

15:36:51 18 AND THE 905 CASE, WHICH WE POINTED OUT IN OUR

15:36:54 19 PAPERS.

15:36:55 20 WE HAVE THE OVERLAP IN PATENTS AS

15:36:57 21 ILLUSTRATED BY THE CHART WHICH WE GAVE YOU; WE HAVE

15:37:00 22 THE OVERLAP IN THE WAIVER AND ESTOPPEL CLAIMS WHICH

15:37:02 23 WERE PART OF THE CONDUCT TRIAL; AND WE HAVE THE

15:37:05 24 POINT, YOUR HONOR, THAT THESE PATENTS ARE ASSERTED

15:37:08 25 AGAINST INDUSTRY STANDARD PRODUCTS AND IT OUGHT TO

30
15:37:11 1 HAVE AN INDUSTRY STANDARD SOLUTION AND AN

15:37:15 2 INDUSTRY-WIDE SOLUTION AND, THEREFORE, WE'LL

15:37:17 3 CERTAINLY, OF COURSE, FILE OUR MOTIONS WITH THE

15:37:19 4 COURT AND MAKE THOSE POINTS. WE'LL ASK YOU FOR

15:37:22 5 ANOTHER 1292(B) CERTIFICATION.

15:37:24 6 BUT IT SEEMS TO US THAT THE MOST SENSIBLE

15:37:27 7 WAY TO PROCEED IS TO CARVE OFF THE SPOLIATION

15:37:30 8 ISSUES, LET THOSE GO TO THE CIRCUIT.

15:37:32 9 IF THERE ARE ISSUES, SUCH AS CLAIM

15:37:34 10 CONSTRUCTION, THAT MAKE SENSE AT THIS POINT TO

15:37:36 11 THINK ABOUT IN THAT REGARD, THAT MAY MAKE SOME

15:37:39 12 SENSE.

15:37:40 13 BUT ALL THE REST OF THESE ISSUES THAT ARE

15:37:42 14 SO FACT BOUND THAT ARE AFFECTED BY WHAT HAPPENS ON

15:37:45 15 SPOLIATION OUGHT, IN FAIRNESS, TO STAY UNRESOLVED

15:37:51 16 UNTIL WE DECIDE AND UNDERSTAND EXACTLY WHAT THE LAW

15:37:53 17 OF THIS CASE IS REGARDING SPOLIATION, AND THEN WE

15:37:56 18 CAN MOVE FORWARD.

15:37:57 19 THE COURT: OKAY.

15:37:57 20 MR. NISSLY: THANK YOU.

15:38:04 21 MR. STONE: GOOD AFTERNOON, YOUR HONOR.

15:38:06 22 THE COURT: GOOD AFTERNOON.

15:38:07 23 MR. STONE: FIRST, I THINK THAT YOU

15:38:09 24 PROPOSED A BRIEFING SCHEDULE, AND IN OUR PAPERS

15:38:12 25 WE'D SUGGESTED WE DIDN'T SEE THE NEED FOR IT, AND

31
15:38:15 1 OBVIOUSLY YOU THINK THERE IS PROBABLY A NEED AND I

15:38:19 2 APPRECIATE THAT.

15:38:19 3 THE COURT: I THINK THERE'S A NEED FOR

15:38:21 4 TWO REASONS. ONE IS THE -- SOME SPECIFIC

15:38:25 5 APPLICATIONS, OR AN EXPLANATION OF WHY OR WHY NOT

15:38:32 6 ISSUE PRECLUSION APPLIES.

15:38:34 7 BUT, FRANKLY, I'M MORE CONCERNED WITH

15:38:39 8 GETTING FURTHER THOUGHTS ON WHAT MAKES SENSE FROM A

15:38:42 9 PRACTICAL STANDPOINT, BECAUSE I SUSPECTED THE

15:38:48 10 PARTIES WOULD COME OUT THE WAY THEIR LETTERS DID AS

15:38:53 11 FAR AS THEIR POSITIONS, BUT I WASN'T SURE.

15:38:57 12 I MEAN, I CAN SEE SOME ADVANTAGES,

15:38:59 13 FRANKLY, TO RAMBUS OF BOTH APPROACHES. SO I WASN'T

15:39:05 14 100 PERCENT SURE AS TO WHERE YOU WOULD COME OUT ON

15:39:08 15 THIS.

15:39:09 16 MR. STONE: OKAY. SO LET ME TRY TO

15:39:10 17 ADDRESS BRIEFLY SOME OF THE ISSUES YOU'VE RAISED

15:39:14 18 AND SOME OF THE QUESTIONS THAT YOU'VE ASKED, IF I

15:39:17 19 MIGHT, AND IF YOU HAVE OTHER QUESTIONS, PLEASE POSE

15:39:19 20 THEM TO ME.

15:39:21 21 BUT I'M ASSUMING THAT -- THE BRIEFING

15:39:22 22 SCHEDULE YOU PROPOSED, WE'LL MEET THE BRIEFING

15:39:26 23 SCHEDULE AND SO FORTH.

15:39:27 24 I THINK WE'VE LAID OUT IN SOME

15:39:29 25 SIGNIFICANT DETAIL OUR POSITION ON THE MERITS OF

32
15:39:31 1 THIS ISSUE, SO I HOPE THE MANUFACTURERS, IN THEIR

15:39:34 2 PAPERS, CAN SORT OF ADDRESS AND CAN JOIN ISSUES

15:39:40 3 QUICKLY ON SOME OF THOSE.

15:39:41 4 I WANT TO START MAYBE WITH -- THERE WAS

15:39:45 5 THE POINT FROM OUR EARLIER BRIEF THAT MR. NISSLY

15:39:48 6 QUOTED ABOUT TO SOME EXTENT THIS CASE HAS -- THERE

15:39:52 7 ARE COMMON ISSUES THAT CUT ACROSS MANY OF THE CASES

15:39:54 8 AND MANY OF THE ISSUES ARE COMMON.

15:39:56 9 INDEED, THAT WAS THE REASON WHY WE HAD

15:39:58 10 FILED THE MOTION TO TRANSFER VENUE IN THE DELAWARE

15:40:01 11 ACTION TO TRY TO BRING IT OUT HERE, AND MICRON

15:40:04 12 RESISTED THAT.

15:40:05 13 AND THAT'S IMPORTANT WHEN WE COME BACK IN

15:40:08 14 THE BRIEFING, AS WE WILL, TO RECOGNITION THAT WHAT

15:40:11 15 MICRON SEEKS IS OFFENSIVE COLLATERAL ESTOPPEL,

15:40:15 16 BECAUSE THEY WERE THE ONES WHO SELECTED THE FORUM,

15:40:18 17 AND AS THE SUPREME COURT NOTED IN PARKLANE, AND

15:40:22 18 THEY TALKED ABOUT IT IN THE TEXT OF THAT OPINION AT

15:40:25 19 FOOTNOTE 15, AND IN FOOTNOTE 15, THEY NOTED THAT

15:40:30 20 IT'S OFFENSIVE COLLATERAL ESTOPPEL WHEN THE PARTY

15:40:34 21 WHO SELECTED THE FORUM THEN SEEKS TO IMPOSE THE

15:40:39 22 RESULT IN THAT FORUM ON WHAT HAPPENS IN SOME OTHER

15:40:42 23 FORUM, NAMELY, THE FORUM HERE THAT RAMBUS HAS

15:40:45 24 SELECTED.

15:40:46 25 SO THERE IS AN ISSUE, AND THAT ISSUE DOES

33
15:40:48 1 GO TO THE COLLATERAL ESTOPPEL LAW, BECAUSE THERE IS

15:40:52 2 AT LEAST SOME RECOGNITION IN THE CASES THAT THE

15:40:55 3 DISCRETIONARY FACTORS MAY BE MORE HEAVILY WEIGHED

15:40:59 4 IN AN OFFENSIVE COLLATERAL ESTOPPEL AS OPPOSED TO

15:41:03 5 DEFENSIVE.

15:41:03 6 AND HERE WE DO HAVE, EVEN IN MICRON'S

15:41:06 7 CASE -- AND I REALIZE I'M TALKING ABOUT THE

15:41:08 8 TOUGHEST CASE FROM MY PERSPECTIVE -- EVEN IN

15:41:10 9 MICRON'S CASE, WE HAVE OFFENSIVE COLLATERAL

15:41:13 10 ESTOPPEL WHERE THE VARIOUS DISCRETIONARY FACTORS

15:41:17 11 SHOULD BE WEIGHED MOST HEAVILY.

15:41:19 12 THAT'S NOT TO SAY THEY'RE NOT WEIGHED IN

15:41:21 13 DEFENSIVE COLLATERAL ESTOPPEL. I THINK THEY ARE.

15:41:23 14 THE RESTATEMENT, AMONG OTHER AUTHORITIES, MAKES

15:41:25 15 THAT CLEAR.

15:41:27 16 BUT SO WE HAVE HERE A SITUATION IN WHICH

15:41:29 17 WE'RE GOING TO -- THIS COURT WILL LOOK AT, IN THE

15:41:32 18 BRIEFS WE FILE, I THINK AT WHETHER, IN FACT, A STAY

15:41:35 19 FROM MICRON IS APPROPRIATE, OR WHETHER THE DECISION

15:41:37 20 OF JUDGE ROBINSON HAS ANY IMPACT HERE.

15:41:40 21 YOU TALKED WITH MR. BOBROW ABOUT THE

15:41:42 22 OVERLAP IN THE PATENTS AND THE PRODUCTS, AND THERE

15:41:44 23 IS NO OVERLAP IN PATENTS AND PRODUCTS.

15:41:47 24 THERE ARE FOUR PATENTS WHICH ARE HERE,

15:41:50 25 BUT THEY'RE ASSERTED HERE AGAINST A PRODUCT THAT IS

34
15:41:52 1 NOT IN THE DELAWARE CASE, I'M TALKING NOW JUST

15:41:56 2 ABOUT MICRON, AGAINST DDR3, A PRODUCT THAT WAS NOT

15:42:00 3 EVEN IN CONTEMPLATION OR DESIGN AT THE TIME THAT

15:42:03 4 JUDGE ROBINSON FOUND THERE WAS A PERIOD OF

15:42:06 5 SPOLIATION.

15:42:07 6 THE COURT: BUT WHY DOES THAT MATTER,

15:42:11 7 BECAUSE WHAT CONDUCT SHE FOUND INFECTED THE PATENTS

15:42:14 8 WOULD APPLY TO THE -- IT WOULDN'T BE PRODUCT

15:42:19 9 DEPENDENT, WOULD IT?

15:42:21 10 MR. STONE: I DON'T -- I THINK, FOR THE

15:42:22 11 VERY REASON THAT THE MANUFACTURERS HAVE INSISTED ON

15:42:25 12 HAVING DIFFERENT REPRESENTATIVE PRODUCTS FOR EVERY

15:42:28 13 GENERATION OF PRODUCT, I THINK THERE ARE DIFFERENT

15:42:30 14 PRODUCTS.

15:42:30 15 I THINK THIS COURT LOOKED CAREFULLY AT

15:42:32 16 THE ABILITY TO REVERSE ENGINEER A PRODUCT.

15:42:34 17 I THINK A QUESTION AS TO WHETHER A DUTY

15:42:36 18 AROSE WITH RESPECT TO THAT PRODUCT AT A PARTICULAR

15:42:38 19 TIME, I THINK ALL OF THOSE ARE DIFFERENCES.

15:42:41 20 AND THE MOST CRITICAL DIFFERENCE, IN

15:42:43 21 TERMS OF THOSE TWO CASES AS IT BEARS ON MICRON, IS

15:42:47 22 WITH RESPECT TO THE TIME AT WHICH THE CASE WAS

15:42:49 23 FILED, BECAUSE JUDGE ROBINSON'S DECISION IS BASED

15:42:53 24 ON, AND HER FINDING OF PREJUDICE IS, AND BAD FAITH,

15:42:57 25 REALLY, IS BASED ON TWO THINGS: A DETERMINATION

35
15:43:03 1 ABOUT WHEN THERE WAS A DUTY TO PRESERVE AND A

15:43:05 2 FAILURE TO PRESERVE; AND, SECONDLY, ABOUT

15:43:08 3 LITIGATION MISCONDUCT THAT OCCURRED IN 2001.

15:43:11 4 AND SHE REFERS, AND IT'S NOT -- I THINK

15:43:14 5 IT'S CLEAR FROM HER RECORD AND HER DECISION WHAT

15:43:17 6 SHE'S REFERRING TO, AND WE CAN MAKE IT CLEAR IN OUR

15:43:20 7 BRIEFING IF IT'S NOT, AND I THINK THE COURT HAS

15:43:22 8 SEEN THE SAME EVIDENCE, BUT THERE WAS AN ARGUMENT

15:43:26 9 THAT IT WAS LITIGATION MISCONDUCT WHAT OCCURRED IN

15:43:29 10 THE INFINEON CASE, AND SHE REACHED OUT TO THAT

15:43:31 11 CONDUCT AND SHE SAID AT LEAST ONE BRIEF, OR PERHAPS

15:43:36 12 TWO, IT'S A LITTLE UNCLEAR FROM HER DECISION, THAT

15:43:39 13 WERE FILED IN HER CASE IN 2001 WERE NOT CONSISTENT

15:43:44 14 WITH THE FACTS AS SHE LATER FOUND THEM TO EXIST.

15:43:48 15 ALL OF THAT CAME TO LIGHT IN 2005, EARLY

15:43:52 16 2005 BEFORE THIS CASE WAS FILED.

15:43:54 17 SO THERE'S NO ARGUMENT, AND APTIX, I

15:43:57 18 THINK, MAKES CLEAR THAT THERE'S NO ARGUMENT THAT

15:44:00 19 THE LITIGATION MISCONDUCT, WHICH IS SORT OF

15:44:04 20 INTERWOVEN AND INEXTRICABLY TIED TO HER

15:44:07 21 CONCLUSIONS, HAS ANY BEARING IN THIS CASE, AND

15:44:09 22 MICRON I DON'T THINK CAN CONTEND OTHERWISE.

15:44:12 23 SO I THINK THERE'S REAL ISSUES FOR US TO

15:44:14 24 BRIEF ON THE MICRON QUESTION.

15:44:16 25 AND, OF COURSE, WITH RESPECT TO THE OTHER

36
15:44:18 1 PARTIES, HYNIX, OF COURSE, THERE'S BEEN A DECISION.

15:44:21 2 SAMSUNG, THE CASE -- THE MATTER IS

15:44:23 3 PENDING BEFORE YOUR HONOR.

15:44:25 4 AND NANYA, I THINK THERE'S GOING TO BE

15:44:27 5 VERY DISTINCT ISSUES, TOO, NOT THE LEAST OF WHICH

15:44:30 6 IS THE DIFFERENCE IN THE DATE THAT THE ACTION WAS

15:44:32 7 FILED.

15:44:33 8 SO I DO THINK WE'LL SEE SIGNIFICANT

15:44:36 9 DIFFERENCES, AND THE COURT -- I THINK THE COURT IS

15:44:38 10 RIGHT TO SAY THERE'S CERTAINLY THE POSSIBILITY THAT

15:44:41 11 THE FEDERAL CIRCUIT COULD REACH -- COULD AFFIRM,

15:44:45 12 LET'S SAY, BOTH DECISIONS, AND LEAVE THE DECISIONS,

15:44:48 13 ON THEIR FACE AT LEAST, ARRIVING AT INCONSISTENT

15:44:51 14 RESULTS, COULD LEAVE THEM STANDING, BOTH BECAUSE

15:44:54 15 ONE IS GOING TO BE ASSESSED UNDER NINTH CIRCUIT

15:44:58 16 LAW, THE OTHER UNDER THIRD CIRCUIT LAW.

15:45:00 17 THE FACTUAL SCENARIO IS DIFFERENT, AND

15:45:02 18 THE TIMING OF SOME OF THE ACTS, AS SEEN BY THE

15:45:05 19 COURTS, I THINK, CAME OUT DIFFERENT. SO IT'S

15:45:08 20 POSSIBLE.

15:45:09 21 SO I THINK THERE'S A NUMBER OF ISSUES

15:45:11 22 THAT WE WILL BRIEF IN AN EFFORT TO PERSUADE THE

15:45:15 23 COURT NOT TO STAY THE MICRON CASE AND TO PERSUADE

15:45:18 24 YOU THAT WHAT JUDGE ROBINSON DOES IN HER CASE

15:45:21 25 SHOULD NOT AFFECT WHAT THIS COURT DOES IN ITS CASE

37
15:45:24 1 AND THAT WE SHOULD PROCEED TO TRIAL ON FEBRUARY

15:45:27 2 17TH AS THE COURT SUGGESTED AS A POSSIBLE TRIAL

15:45:30 3 DATE.

15:45:30 4 NOW -- SO I THINK THAT'S A PREVIEW, I

15:45:34 5 GUESS, OF WHAT WE'LL TRY TO ADDRESS IN THE BRIEFS.

15:45:38 6 LET ME -- LET ME ADDRESS, IF I COULD, THE

15:45:44 7 COURT'S TWO SCENARIOS AND JUST TRY TO BREAK THEM

15:45:47 8 DOWN.

15:45:49 9 THE FIRST IS, SHOULD THE COURT ENTER

15:45:51 10 JUDGMENT IN HYNIX I AFTER -- WHICH IS COMPLETED BUT

15:45:55 11 FOR DECISIONS ON VARIOUS MOTIONS AND ONE MATTER

15:45:58 12 THAT HAD BEEN TRIED TO THE COURT AS OPPOSED TO THE

15:46:01 13 JURY IN THE CONDUCT TRIAL.

15:46:02 14 AND I THINK IT'S APPROPRIATE TO, TO ENTER

15:46:05 15 JUDGMENT IN THAT CASE AS PROMPTLY AS THE COURT CAN.

15:46:09 16 THE COURT: I, OBVIOUSLY, WISH IT HAD

15:46:12 17 ALREADY BEEN DONE, BUT IT'S -- IT HASN'T BEEN, SO I

15:46:15 18 DON'T THINK THERE'S ANY DISPUTE THAT THAT SHOULD

15:46:17 19 PROCEED.

15:46:17 20 MR. STONE: OKAY. AND SO THEN THAT

15:46:19 21 RAISES THE QUESTION OF, YOU KNOW, THAT TAKES UP THE

15:46:22 22 CONDUCT TRIAL, THE JURY'S VERDICT IN THE CONDUCT

15:46:25 23 TRIAL.

15:46:26 24 IT WOULD SEEM THAT THE OTHER PARTIES WHO

15:46:29 25 HAVE AN INTEREST IN APPEALING FROM THAT VERDICT,

38
15:46:32 1 THAT THEIR APPEAL SHOULD GO UP AT THE SAME TIME

15:46:34 2 JUST IN THE INTERESTS OF JUDICIAL EFFICIENCY. I

15:46:38 3 THINK THE FEDERAL CIRCUIT WOULD APPRECIATE THAT,

15:46:40 4 AND IT SEEMS TO ME TO MAKE SENSE.

15:46:42 5 AND TO THE EXTENT THAT ANY OF THE

15:46:44 6 DEFENDANTS WANT TO ARGUE THAT -- I GUESS THE

15:46:48 7 MANUFACTURERS ARE PLAINTIFFS IN THAT INSTANCE --

15:46:51 8 WANT TO ARGUE THAT THE FINDING THAT JUDGE ROBINSON

15:46:53 9 MADE SOMEHOW IMPACTS THE JURY'S VERDICT IN THE

15:46:56 10 CONDUCT TRIAL -- AND THE COURT WILL RECALL WE HAD A

15:46:59 11 STIPULATION AS TO HOW SPOLIATION WOULD BE TREATED

15:47:02 12 IN THE CONDUCT TRIAL, AND I DON'T THINK THERE'S ANY

15:47:05 13 ARGUMENT TO BE MADE THERE -- BUT THAT ISSUE SHOULD

15:47:07 14 GO UP ON THE RECORD OF THE CONDUCT TRIAL, NOT

15:47:09 15 ISOLATED.

15:47:12 16 SO I DO THINK THAT SHOULD GO UP.

15:47:14 17 IT MAKES SENSE TO ME, ALTHOUGH I

15:47:18 18 UNDERSTAND YOU CAN MAKE AN ARGUMENT TO THE CONTRARY

15:47:20 19 AND SOME OF THE APPELLATE DECISIONS WOULD SEEM TO

15:47:23 20 COME OUT TO THE CONTRARY, THAT THE SAMSUNG DECISION

15:47:26 21 THAT YOUR HONOR HAS UNDER SUBMISSION, THAT THAT

15:47:29 22 WOULD GO UP AT THE SAME TIME.

15:47:31 23 IT'S SIMILAR -- I MEAN, IT'S THE SAME

15:47:34 24 ISSUE AND SO I UNDERSTAND WHY IT MIGHT.

15:47:36 25 I UNDERSTAND THAT MANY APPELLATE COURTS,

39
15:47:38 1 INCLUDING THE FEDERAL CIRCUIT, MIGHT SAY, NO,

15:47:40 2 THAT'S JUST A PIECE OF THE WHOLE CASE AND WE SHOULD

15:47:42 3 TRY THE WHOLE CASE AND WE SHOULDN'T JUST SEND IT UP

15:47:45 4 PIECEMEAL.

15:47:46 5 I SEE BOTH SIDES OF THE SAMSUNG ISSUE AND

15:47:49 6 I'M NOT SURE WHICH IS RIGHT AND WHETHER IT SHOULD

15:47:51 7 BE CERTIFIED OR NOT.

15:47:53 8 BUT I'LL THINK ABOUT IT SOME MORE AND TRY

15:47:58 9 TO PROVIDE THE COURT WITH ANY HELPFUL INSIGHTS WE

15:48:02 10 CAN.

15:48:03 11 SIMILARLY, THE LICENSING ISSUE, ALTHOUGH

15:48:05 12 I THINK THERE THE ARGUMENT IS LESS STRONG THAT THAT

15:48:07 13 SHOULD GO UP BECAUSE IT'S NOT SIMILAR TO ANY

15:48:10 14 OTHERS.

15:48:10 15 THE COURT: I AGREE THAT THAT'S, IN MY

15:48:13 16 VIEW, THE MOST UNLIKELY ONE FOR INTERLOCUTORY

15:48:18 17 APPEAL.

15:48:19 18 MR. STONE: THE CLAIM CONSTRUCTION --

15:48:21 19 OBVIOUSLY YOUR CLAIM CONSTRUCTION IN HYNIX I WILL

15:48:23 20 GO UP. THAT'LL BE PART OF THE HYNIX VERDICT.

15:48:27 21 THE COURT: RIGHT.

15:48:27 22 MR. STONE: WHETHER THE CLAIM

15:48:28 23 CONSTRUCTION HERE SHOULD BE CERTIFIED IN MY MIND

15:48:31 24 SORT OF FALLS IN -- I MEAN, A, YOU MIGHT MODIFY

15:48:34 25 CLAIM CONSTRUCTION DURING THE COURSE OF THE TRIAL.

40
15:48:36 1 IT'S POSSIBLE THAT CERTAIN THINGS WILL NECESSITATE

15:48:39 2 THAT, OR THAT YOU WILL CONSTRUE ADDITIONAL CLAIMS

15:48:41 3 ALONG THE WAY.

15:48:42 4 AND AS WE'VE ARGUED PREVIOUSLY, I THINK

15:48:46 5 IT'S IMPORTANT, AND THE FEDERAL CIRCUIT HAS SEEMED

15:48:48 6 TO MAKE IT CLEAR THAT THEY WANT A FULL RECORD ON

15:48:50 7 CLAIM CONSTRUCTION. MAYBE THEY WILL THINK THEY

15:48:52 8 HAVE IT.

15:48:53 9 MAYBE THEY WILL THINK THE CASE SHOULD BE

15:48:54 10 TRIED BEFORE THEY REVIEW CLAIM CONSTRUCTION.

15:48:57 11 I THINK THEY CERTAINLY HAVE SOME

15:48:58 12 DECISIONS WHICH WOULD SUGGEST THAT THEY DON'T WANT

15:49:01 13 CERTIFICATION OF CLAIM CONSTRUCTIONS.

15:49:04 14 THE COURT: WELL, THEY'VE CERTAINLY

15:49:08 15 GENERALLY TAKEN THAT VIEW, BUT I'VE SENSED A LITTLE

15:49:10 16 BIT OF A SOFTENING OF THAT, AND I ALSO THINK THIS

15:49:14 17 CASE PRESENTS A VERY COMPELLING ARGUMENT FOR DOING

15:49:18 18 INTERLOCUTORY REVIEW OF CLAIM CONSTRUCTION.

15:49:20 19 MR. STONE: SO -- AND I -- AGAIN, IT'S AN

15:49:24 20 ISSUE I'D LIKE TO THINK ABOUT. I APPRECIATE THAT

15:49:26 21 THIS CASE HAS MANY UNIQUE ASPECTS TO IT, SO I DON'T

15:49:30 22 WANT TO TRY TO SAY THIS IS A RUN-OF-THE-MILL CASE,

15:49:32 23 NOR WOULD THE FEDERAL CIRCUIT, I THINK, LOOK AT

15:49:35 24 THIS AS AN ORDINARY CASE. I THINK THEY WOULD SEE

15:49:37 25 THE COMPLICATED ASPECT OF IT THAT THIS COURT HAS

41
15:49:40 1 CONFRONTED AND DEALT WITH.

15:49:43 2 SO I THINK THE LICENSING ISSUE FOR

15:49:44 3 SAMSUNG AND CLAIM CONSTRUCTION ARE SOMEWHAT

15:49:46 4 DIFFERENT IN MY MIND THAN THE OTHERS, BUT I

15:49:49 5 APPRECIATE THAT THEY'RE ALSO DIFFERENT FROM EACH

15:49:51 6 OTHER AND WOULDN'T NECESSARILY BE TREATED THE SAME

15:49:54 7 WAY.

15:49:54 8 I THINK WHICHEVER THINGS GO UP, THE

15:49:57 9 HYNIX I JUDGMENT AND WHATEVER THINGS ARE CERTIFIED

15:49:59 10 FOR INTERLOCUTORY APPEAL, I DON'T THINK THAT'S A

15:50:02 11 REASON TO DELAY THIS TRIAL, AND I DO WANT TO

15:50:05 12 ADDRESS THAT.

15:50:07 13 AS THE COURT KNOWS, RAMBUS MADE A VERY

15:50:12 14 STRONG ARGUMENT FOR AN INJUNCTION AT THE CONCLUSION

15:50:17 15 OF HYNIX I, WHICH THE COURT HAS UNDER SUBMISSION.

15:50:21 16 THIS IS A CASE NOT JUST ABOUT DAMAGES.

15:50:23 17 IT IS ALSO ABOUT RAMBUS'S RIGHT TO INJUNCTIVE

15:50:28 18 RELIEF.

15:50:29 19 MOREOVER, IT'S A CASE IN WHICH THERE IS

15:50:32 20 COGNIZABLE INJURY TO RAMBUS FROM DELAY IN RECEIVING

15:50:37 21 ROYALTIES IF IT TURNS OUT AT THE END OF THE DAY

15:50:40 22 IT'S ENTITLED TO THEM, AND WE LAID THAT OUT IN THE

15:50:45 23 INJUNCTION PAPERS AND POST-JUDGMENT PLEADINGS WE

15:50:49 24 FILED IN CONNECTION WITH HYNIX I, AND I THINK THE

15:50:52 25 COURT'S AWARE OF THE FACT THAT IT IS NOT SIMPLY --

42
15:50:55 1 A DOLLAR PLUS INTEREST DEFERRED IS NOT THE

15:50:58 2 EQUIVALENT TO RAMBUS OF A DOLLAR TODAY.

15:51:01 3 INDEED, THE COMPANY IS IN A MUCH

15:51:05 4 DIFFERENT SITUATION THAN THAT WHERE TRYING TO

15:51:07 5 RESOLVE THESE MATTERS PROMPTLY MAKES A HUGE

15:51:10 6 DIFFERENCE.

15:51:11 7 IN ADDITION, AS I KNOW THE COURT ALSO

15:51:13 8 APPRECIATES, THERE ARE REAL ISSUES WITH RESPECT TO

15:51:16 9 WITNESSES CONTINUING TO HAVE AS GOOD A RECALL AS

15:51:21 10 THEY HAD WHEN THE EVENTS OCCURRED, AND A DELAY -- I

15:51:25 11 THINK IT WOULD BE OPTIMISTIC TO SUGGEST THAT THE

15:51:27 12 COURT COULD GET THE CASE BACK IN 18 MONTHS. I

15:51:30 13 THINK WE'RE LOOKING AT SOMETHING LONGER THAN THAT,

15:51:33 14 PROBABLY TWO YEARS.

15:51:34 15 TWO YEARS IS A SIGNIFICANT PERIOD OF TIME

15:51:37 16 WITH RESPECT TO SOME OF THE WITNESSES WHO ARE

15:51:38 17 CRITICAL TO THIS CASE, SOME OF WHOM, FOR WHOM THERE

15:51:44 18 CONTINUES TO BE SOME HEALTH ISSUES, AND OTHERS FOR

15:51:47 19 WHOM JUST THE PASSAGE OF TIME, I THINK, MAKES IT

15:51:50 20 MORE DIFFICULT FOR THEIR TESTIMONY TO BE AS

15:51:54 21 COMPLETE AND WITH AS GOOD A RECALL AS THEY HAVE HAD

15:51:56 22 IN THE PAST.

15:51:57 23 SO I THINK THE COURT --

15:51:58 24 THE COURT: HAVEN'T MOST OF THESE

15:52:00 25 WITNESSES BEEN DEPOSED ABOUT FIVE TIMES?

43
15:52:03 1 MR. STONE: I WOULD SAY MOST OF THEM HAVE

15:52:05 2 BEEN DEPOSED MANY MORE THAN FIVE TIMES, YOUR HONOR.

15:52:08 3 THAT I DO AGREE WITH. AND WE HAVE LOTS OF CAPTURED

15:52:11 4 TESTIMONY.

15:52:11 5 BUT AS I THINK THE COURT KNOWS, AND WE

15:52:13 6 HAVE FELT IT'S A DIFFERENCE, THERE WAS CERTAINLY A

15:52:15 7 DIFFERENCE IN THE TRIAL BEFORE JUDGE ROBINSON AND

15:52:18 8 THE TRIAL HERE, IS OUR ABILITY TO GET WITNESSES WHO

15:52:20 9 NO LONGER WORK FOR RAMBUS AND HAVE NO PARTICULAR

15:52:23 10 TIES TO RAMBUS TO APPEAR VOLUNTARILY CONTINUES TO

15:52:26 11 BE A STRUGGLE WHEN WE'RE IN DELAWARE, OR OUTSIDE OF

15:52:29 12 CALIFORNIA, AND IT'S MUCH EASIER FOR US TO PROCURE

15:52:33 13 THEIR ATTENDANCE HERE.

15:52:34 14 AND WE DO THINK IT'S PREFERABLE FOR THEIR

15:52:36 15 TESTIMONY TO BE TAKEN LIVE RATHER THAN THROUGH

15:52:39 16 DEPOSITION OR PRIOR TRIAL TESTIMONY.

15:52:42 17 SO WE WOULD URGE YOU TO GO FORWARD WITH

15:52:44 18 THIS TRIAL AS EXPEDITIOUSLY AS POSSIBLE WITH

15:52:48 19 WHICHEVER PARTIES, WE THINK IT SHOULD INCLUDE

15:52:51 20 MICRON, BUT CLEARLY I RECOGNIZE MICRON'S IN A

15:52:54 21 DIFFERENT POSITION THAN THE OTHER THREE, AND INDEED

15:52:57 22 EACH OF THE OTHER THREE IS IN A DIFFERENT POSITION,

15:52:59 23 HYNIX HAVING TRIED THE CASE AND RECEIVED A

15:53:02 24 DECISION; SAMSUNG HAVING TRIED IT AND AWAITING A

15:53:05 25 DECISION; NANYA NOT HAVING YET TRIED THE

44
15:53:08 1 SPOLIATION.

15:53:09 2 I THINK THERE ARE DIFFERENCES THERE, BUT

15:53:12 3 I THINK WITH WHICHEVER PARTIES, WE THINK IT SHOULD

15:53:14 4 BE ALL FOUR, THAT TRIAL SHOULD MOVE FORWARD AS SOON

15:53:17 5 AS WE CAN.

15:53:18 6 I THINK IT'S IN THE INTERESTS OF JUDICIAL

15:53:20 7 ECONOMY AND EFFICIENCY.

15:53:21 8 AND, IN FACT, I THINK WHAT IT WOULD ALLOW

15:53:24 9 IS IT WOULD ALLOW A DECISION IN THIS CASE, WHICH

15:53:26 10 AFTER THE TRIAL THAT IS CURRENTLY SET, WE WILL HAVE

15:53:30 11 COMPLETED TRIAL OF ALL OF THE ISSUES FOR SAMSUNG;

15:53:32 12 AND IF MICRON IS IN IT, ALL OF THE ISSUES FOR

15:53:36 13 MICRON; AND WHAT WILL REMAIN TO BE TRIED, I THINK,

15:53:39 14 IS JUST THE NANYA SPOLIATION CLAIM.

15:53:41 15 SO WE WOULD BE ABLE -- AND I THINK THE

15:53:43 16 TIMING WOULD BE SUCH THAT THE APPEALS WOULD

15:53:46 17 ULTIMATELY BE CONSOLIDATED, THAT A TRIAL NOW WOULD

15:53:50 18 RESULT IN ALL OF THOSE ISSUES, AND PERHAPS WE COULD

15:53:52 19 DO THE NANYA ONE QUICKLY AND EVEN THE NANYA ONE

15:53:56 20 BEING PUT ON THE SAME APPELLATE SCHEDULE, SO THAT

15:53:59 21 ALL OF THE ISSUES AND FINAL JUDGMENTS IN ALL OF THE

15:54:01 22 CASES COULD BE BEFORE THE FEDERAL CIRCUIT AT ONE

15:54:04 23 TIME.

15:54:04 24 THAT, I THINK, WOULD ACCOMPLISH MORE IN

15:54:07 25 THE INTERESTS OF JUDICIAL EFFICIENCY AND MORE TO

45
15:54:09 1 ACHIEVE THE GOAL THAT SOME OF THE MANUFACTURERS'

15:54:15 2 COUNSEL HAVE SPOKEN TO OF SORT OF GETTING AN

15:54:18 3 INDUSTRY-WIDE RESOLUTION. THAT WOULD GIVE THE

15:54:20 4 FEDERAL CIRCUIT ALL OF THE PARTIES AND ALL OF THE

15:54:23 5 ISSUES IN FRONT OF THEM AT ONE TIME.

15:54:27 6 THE COURT: COSTS HAVE BEEN A CONCERN OF

15:54:31 7 MINE ALL ALONG, BUT, FRANKLY, HAVEN'T APPEARED TO

15:54:34 8 BE MUCH OF A CONCERN OF THE PARTIES, BUT I'M NOW

15:54:39 9 HEARING TALK OF CONCERNS FROM MICRON AND RAMBUS AND

15:54:47 10 OTHERS.

15:54:53 11 IT WOULD BE INTERESTING TO HAVE THE

15:54:56 12 PARTIES ADDRESS THE JUDICIAL EFFICIENCY/ECONOMY

15:55:03 13 ISSUE FOR ME, AND PERHAPS EVEN SUPPORT THAT BY SOME

15:55:08 14 EVIDENCE.

15:55:10 15 MR. STONE: WELL, WE CERTAINLY WILL

15:55:12 16 INCLUDE THAT --

15:55:13 17 THE COURT: BECAUSE THAT'S A REAL ISSUE

15:55:14 18 IN MY MIND AS TO WHETHER OR NOT IT'S MORE EFFICIENT

15:55:22 19 AND COST EFFECTIVE TO GET EVERYTHING WOUND UP NOW,

15:55:25 20 OR TO TAKE UP SOME ISSUES THAT ARE ISSUES THAT, AT

15:55:31 21 LEAST IN MY VIEW, COULD PRESENT SOME GENUINELY

15:55:36 22 TOUGH ISSUES ON APPEAL THAT COULD GO EITHER WAY.

15:55:39 23 MR. STONE: AND I THINK I WOULD LIKE TO

15:55:42 24 TRY TO COLLECT THOSE THOUGHTS AND SOME EVIDENCE TO

15:55:45 25 SUPPORT IT.

46
15:55:46 1 BUT I THINK, TO THE EXTENT I HAVE HAD

15:55:49 2 SOME TIME TO THINK ABOUT IT, MY VIEW IS, AT THE

15:55:51 3 MOMENT AT LEAST, THAT WE ACHIEVE REAL EFFICIENCIES

15:55:54 4 BY PROCEEDING FORWARD TO TRIAL AND TRYING TO GET

15:55:57 5 ALL THE ISSUES IN FRONT OF THE APPELLATE COURT.

15:56:00 6 OUR HISTORY IN THIS CASE HAS SUGGESTED

15:56:02 7 THAT, AS ISSUES HAVE BEEN DECIDED, BUT ENTIRE

15:56:07 8 CLAIMS HAVEN'T BEEN DECIDED, THAT IT HASN'T DONE

15:56:10 9 MUCH TO ADVANCE THE ULTIMATE RESOLUTION OF THE

15:56:13 10 CASES.

15:56:14 11 THE COURT: UNFORTUNATELY, I CAN'T

15:56:16 12 DISAGREE.

15:56:17 13 MR. STONE: IT HAS SOMETIMES CHANGED THE

15:56:19 14 DIRECTION WE'VE BEEN POINTED IN FROM TIME TO TIME,

15:56:22 15 AND IT HAS MOVED US ON DIFFERENT COURSES, BUT I

15:56:25 16 DON'T THINK IT'S RESULTED IN THE CONCLUSION THAT I

15:56:26 17 THINK YOU HEAR EVERYBODY SAYING IS DESIRABLE.

15:56:31 18 THEY OBVIOUSLY ALL WANT A CONCLUSION THAT

15:56:34 19 GOES ONE WAY OR THE OTHER, BUT I DON'T HEAR ANYBODY

15:56:37 20 SAYING TODAY THEY DON'T WANT SOME FINALITY, AND I

15:56:40 21 THINK THAT -- AND I'D LIKE TO ADDRESS IT IN OUR

15:56:42 22 BRIEF -- THAT THE PROPOSAL THAT I'VE AT LEAST

15:56:45 23 SKETCHED OUT WOULD BEST ACHIEVE THAT.

15:56:48 24 THE COURT: OKAY. THANK YOU.

15:56:49 25 MR. STONE: THANK YOU.

47
15:56:50 1 THE COURT: ANYBODY HAVE ANY ADDITIONAL

15:56:51 2 BRIEF COMMENTS?

15:56:53 3 MR. POWERS: JUST TWO ADDITIONAL THOUGHTS

15:56:57 4 AND ONE QUESTION.

15:56:58 5 ONE ADDITIONAL THOUGHT IS THAT OPTION A

15:57:03 6 AS LAID OUT BY YOUR HONOR HAS THE ADDITIONAL

15:57:05 7 ADVANTAGE OF ALLOWING THE PATENT OFFICE PROCEDURES

15:57:07 8 TO LET PLAY OUT AS WELL, AND THAT ADDS, AS YOUR

15:57:14 9 HONOR RECALLS FROM THE PRIOR MOTION, SIGNIFICANT

15:57:16 10 WEIGHT TO THE JUDICIAL ECONOMY AND FAIRNESS

15:57:21 11 CONSIDERATIONS, BECAUSE IF YOU FOLLOWED OPTION A,

15:57:24 12 YOU WOULD, IN ALL LIKELIHOOD, HAVE FINAL DECISIONS

15:57:27 13 FROM THE PTO ON THE PATENTS AT ISSUE.

15:57:30 14 THE PATENT OFFICE HAS BEEN PROGRESSING

15:57:32 15 TOWARDS THAT ALREADY. WE NOW HAVE FINAL DECISIONS,

15:57:35 16 I BELIEVE, IN ALL THE PATENTS STATING THERE'S A

15:57:39 17 SUBSTANTIAL NEW QUESTION OF PATENTABILITY, AND IF,

15:57:42 18 IN FACT, ALL OF THOSE PATENTS ARE FOUND INVALID,

15:57:47 19 THEN I THINK YOUR HONOR WILL SEE THE JUDICIAL

15:57:50 20 EFFICIENCY AS BEING QUITE SIGNIFICANT.

15:57:53 21 THE COURT: WHAT -- I DON'T KNOW OFF THE

15:57:58 22 TOP OF MY HEAD.

15:58:00 23 WHAT IS THE EFFECT OF GOING TO JUDGMENT

15:58:05 24 ON THIS CASE WITH RESPECT TO THE RE-EXAM?

15:58:07 25 MR. POWERS: IT WOULD HAVE NO EFFECT AT

48
15:58:09 1 THE MOMENT. THE WAY IT WORKS IS THE RE-EXAM

15:58:12 2 PROGRESSES AND THE APPEALS PROGRESS, AND WHICHEVER

15:58:15 3 ONE IS DECIDED FIRST AT THE FEDERAL CIRCUIT DECIDES

15:58:18 4 THE OTHER.

15:58:19 5 THE COURT: SO -- OKAY.

15:58:21 6 MR. POWERS: SO IF THE PTO -- LET'S SAY

15:58:23 7 ALL THE -- THAT PATENT X WAS FOUND INVALID, RAMBUS

15:58:28 8 APPEALED THAT TO THE FEDERAL CIRCUIT, AND THAT

15:58:31 9 APPEAL STARTED BEFORE, OR WAS RESOLVED BEFORE ANY

15:58:35 10 APPEAL FROM A SIMILAR VALIDITY QUESTION ON THE SAME

15:58:38 11 PATENT HERE, THAT DECIDES THE QUESTION.

15:58:40 12 THE COURT: SO AN INITIAL DECISION

15:58:43 13 FROM -- OR PTO DECISION THAT THE PATENTS ARE

15:58:46 14 INVALID, OR A DECISION FROM THIS COURT THAT THE

15:58:49 15 PATENTS -- THAT A PATENT WAS INVALID DOESN'T STOP

15:58:53 16 THE OTHER ONE?

15:58:54 17 MR. POWERS: CORRECT.

15:58:55 18 THE COURT: IT'S ONLY THE FEDERAL CIRCUIT

15:58:57 19 DECISION THAT DOES?

15:58:58 20 MR. POWERS: THAT'S MY UNDERSTANDING.

15:59:00 21 SECOND -- THE SECOND THOUGHT -- AND

15:59:02 22 OBVIOUSLY YOUR HONOR DENIED THAT MOTION TO STAY

15:59:06 23 UNDER SUBSTANTIALLY DIFFERENT CIRCUMSTANCES, BUT I

15:59:10 24 DON'T THINK -- I DON'T THINK IT'S -- I THINK IT'S

15:59:12 25 FAIR TO SAY THAT THE OPPORTUNITY TO HAVE THAT

49
15:59:17 1 PROCESS PLAY ITSELF OUT LENDS SUBSTANTIAL

15:59:20 2 ADDITIONAL WEIGHT IN FAVOR OF OPTION A OVER OPTION

15:59:23 3 B.

15:59:24 4 A SECOND THOUGHT WITH REGARD TO THE COSTS

15:59:27 5 OF PROCEEDING FORWARD, PROCEEDING WITH THE PARTIES,

15:59:31 6 AND THIS IS TRUE ON BOTH SIDES OF THE V, IN THE

15:59:35 7 CURRENT ECONOMIC CLIMATE, THE MILLIONS OF DOLLARS

15:59:41 8 THAT WOULD BE SPENT BY BOTH SIDES ON GOING TO TRIAL

15:59:45 9 CAN BE MUCH BETTER SPENT IN MANY OTHER WAYS.

15:59:48 10 THE -- THE ECONOMIC CONDITIONS ARE

15:59:50 11 AFFECTING EVERY SINGLE COMPANY IN THIS ROOM IN A

15:59:54 12 VERY, VERY SUBSTANTIAL WAY, AND I THINK THAT CAN'T

15:59:56 13 BE IGNORED.

15:59:58 14 THE COURT: AND, YET, THEY CAN'T FOR SOME

16:00:01 15 REASON REACH ANY KIND OF RESOLUTION.

16:00:03 16 MR. POWERS: IT TAKES TWO TO TANGO, AND

16:00:06 17 THE --

16:00:06 18 THE COURT: RIGHT.

16:00:07 19 MR. POWERS: WITHOUT COMMENTING ON WHO'S

16:00:09 20 NOT TANGOING, IT TAKES TWO.

16:00:11 21 THE COURT: RIGHT.

16:00:12 22 MR. POWERS: NO PARTY CAN DO THAT

16:00:14 23 UNILATERALLY.

16:00:15 24 THE COURT: WELL, IT TAKES MORE THAN TWO

16:00:17 25 IN THIS CASE BECAUSE OF THE MARKETPLACE.

50
16:00:19 1 MR. POWERS: THAT'S FAIR.

16:00:21 2 THE THIRD POINT, WHICH IS REALLY A

16:00:24 3 QUESTION, HAS TO DO WITH WHETHER YOUR HONOR WANTS

16:00:26 4 TO CONTINUE TO PROCEED WITH THE HEARING WE HAD

16:00:29 5 SCHEDULED FOR FRIDAY AFTERNOON.

16:00:31 6 THE COURT: MY SUGGESTION WAS, IF I

16:00:34 7 DIDN'T SAY IT AT THE BEGINNING, WAS TO FREE THE

16:00:42 8 PARTIES UNTIL THE 30TH, AND THEN SCHEDULE PERHAPS

16:00:47 9 TWO DAYS THE WEEK OF THE 9TH TO -- TWO HALF DAYS

16:00:52 10 THE WEEK OF THE 9TH TO FINISH UP PRETRIAL MATTERS.

16:00:56 11 MR. POWERS: OKAY. THANK YOU.

16:00:58 12 MR. BOBROW: YOUR HONOR, VERY BRIEFLY ON

16:01:01 13 THE ISSUE OF THE CERTIFICATION POINT THAT YOU

16:01:04 14 RAISED.

16:01:05 15 I SIMPLY WANTED TO ECHO THE THOUGHT THAT

16:01:07 16 MR. NISSLY HAD, WHICH IS THAT, AND PARTICULARLY IN

16:01:11 17 MICRON'S CASE, I THINK THAT IT WOULD BE

16:01:14 18 FUNDAMENTALLY UNFAIR, PREJUDICIAL, TO CERTIFY THE

16:01:16 19 ANTITRUST ISSUES FROM THE CONSOLIDATED CONDUCT

16:01:19 20 TRIAL UNLESS AND UNTIL THE COURT RESOLVES THE ISSUE

16:01:23 21 THAT WE'RE GOING TO PUT TO YOU ON SUMMARY JUDGMENT

16:01:25 22 AND WE HAVE OUR DECISION ON WHAT IS ESSENTIALLY THE

16:01:31 23 UNCLEAN HANDS, SPOLIATION, AND MISCONDUCT ISSUES,

16:01:35 24 BECAUSE JUDGE ROBINSON'S FINDING THAT THE ANTITRUST

16:01:42 25 CASE AND DEFENSE WAS TAINTED IS, WE SUBMIT AND WILL

51
16:01:45 1 BRIEF, BINDING ON THIS COURT.

16:01:47 2 AND BECAUSE OF THAT TAINT, TO THEN

16:01:49 3 CERTIFY THAT ISSUE WITHOUT TAKING TO GROUND THE

16:01:52 4 ISSUE OF MISCONDUCT AND THE ISSUE OF SPOLIATION AS

16:01:56 5 TO MICRON IS FUNDAMENTALLY UNFAIR.

16:01:59 6 THOSE ISSUES, IT SEEMS TO ME, HAVE TO GO

16:02:01 7 UP AT THE SAME TIME.

16:02:03 8 AND WHAT THE --

16:02:04 9 THE COURT: WHAT'S --

16:02:07 10 MR. BOBROW: I DIDN'T UNDERSTAND YOUR

16:02:08 11 HONOR TO SAY THAT ALL OF THOSE SPOLIATION ISSUES

16:02:11 12 WERE GOING TO GET RESOLVED AND CERTIFIED AS WELL.

16:02:14 13 PERHAPS I MISUNDERSTOOD.

16:02:15 14 THE COURT: I'M -- MY CONCERN --

16:02:22 15 CERTAINLY MY THOUGHT WOULD BE THAT ALL SPOLIATION

16:02:24 16 ISSUES WOULD GO AT THE SAME TIME. THE ONES FROM

16:02:27 17 JUDGE ROBINSON WOULD HAVE TO BE CONSOLIDATED IN

16:02:31 18 SOME WAY. I COULDN'T DO THAT.

16:02:32 19 MR. BOBROW: BUT -- YES, YOU CAN, IN

16:02:34 20 EFFECT, BY FINDING THAT IT HAS COLLATERAL ESTOPPEL

16:02:37 21 EFFECT AND DETERMINING IN THIS CASE, AND

16:02:39 22 ESSENTIALLY ENTERING THOSE FINDINGS IN THIS CASE,

16:02:42 23 BECAUSE WITHOUT THAT, THEN WE'RE PREJUDICED.

16:02:44 24 SO THAT'S MY POINT IS WE HAVE --

16:02:45 25 THE COURT: WHY?

52
16:02:47 1 MR. BOBROW: BECAUSE SHE HAS MADE A

16:02:48 2 FINDING THAT WE DIDN'T GET A FAIR TRIAL, IN EFFECT,

16:02:51 3 ON THE ISSUE OF ANTITRUST. SHE FOUND THAT THERE

16:02:54 4 WERE INNUMERABLE DOCUMENTS ACROSS RAMBUS'S BUSINESS

16:02:57 5 THAT HAD BEEN SPOLIATED.

16:02:58 6 THE COURT: BUT THAT'S GOING TO GO UP ON

16:03:00 7 APPEAL, RIGHT?

16:03:01 8 MR. BOBROW: WELL, PRESUMABLY RAMBUS MAY

16:03:04 9 DECIDE TO APPEAL THAT IN THE DELAWARE CASE.

16:03:07 10 I'M SAYING THAT IN THIS CASE, TO ALLOW

16:03:09 11 CERTIFICATION AS TO JUST PHASE 1 OF THE 244 CASE --

16:03:13 12 WE HAVE THE 244 MICRON-ONLY CASE. THE ONLY ASPECT

16:03:16 13 OF THAT THAT HAS GONE TO TRIAL IS THE CONDUCT

16:03:18 14 PHASE.

16:03:18 15 THAT PHASE, WE SUBMIT, HAS -- BY JUDGE

16:03:20 16 ROBINSON'S FINDINGS AND DETERMINATION, THAT PHASE

16:03:24 17 HAS BEEN TAINTED.

16:03:25 18 TO ALLOW THAT TO GO UP ON APPEAL AND

16:03:27 19 FORCE MICRON TO THEN APPEAL THAT ISSUE IN A VACUUM

16:03:30 20 IN THIS CASE ALONE, WITH ONLY THE HYNIX SPOLIATION

16:03:35 21 DECISION GOING UP AS WELL IS FUNDAMENTALLY UNFAIR

16:03:39 22 TO MICRON.

16:03:39 23 IT SEEMS TO ME THAT AS TO MICRON, EITHER

16:03:42 24 WE HAVE, AND WE THINK IT'S PROPER, WE HAVE A

16:03:45 25 SPOLIATION DECISION BASED UPON COLLATERAL ESTOPPEL,

53
16:03:48 1 OR WE HAVE TO HAVE PHASE 3 ADJUDICATED IN THIS

16:03:53 2 CASE.

16:03:53 3 WE THINK THAT WOULD BE IMPROPER BECAUSE,

16:03:55 4 AS RAMBUS SAID, AND I THINK EVERYBODY AGREED, THERE

16:03:58 5 SHOULD BE ONE SHOT AND RAMBUS HAD IT AND LOST.

16:04:02 6 BUT THERE ARE THREE PHASES TO THIS CASE,

16:04:04 7 AND ALLOWING THAT RECORD TO GO UP WITHOUT GIVING US

16:04:08 8 THE OPPORTUNITY TO LITIGATE PHASE 3 OF THIS CASE WE

16:04:11 9 THINK IS UNFAIR.

16:04:12 10 JUDGE ROBINSON FOUND THAT OUR DEFENSE WAS

16:04:14 11 PREJUDICED.

16:04:16 12 AND THEN TO ALLOW IT TO GO UP ON THE

16:04:19 13 HYNIX RECORD IS NOT FAIR TO MICRON.

16:04:21 14 NOW, THE QUESTION OF WHETHER CLAIM

16:04:23 15 CONSTRUCTION GOES UP IS A TOTALLY DIFFERENT

16:04:25 16 QUESTION, BUT THE ISSUE OF THE ANTITRUST CASE AND

16:04:29 17 US BEING FORCED TO DEAL WITH THAT ON APPEAL NOW

16:04:32 18 SEEMS TO ME IS FUNDAMENTALLY UNFAIR.

16:04:35 19 THE COURT WOULD HAVE TO ENTER,

16:04:36 20 ESSENTIALLY, THE JUDGMENT OF COLLATERAL ESTOPPEL

16:04:39 21 AND THEN, OF COURSE, THAT OPTION BECOMES VIABLE FOR

16:04:42 22 MICRON.

16:04:42 23 SHORT OF THAT, IT'S NOT.

16:04:44 24 THE COURT: IF THE COURT OF APPEALS

16:04:46 25 CONSOLIDATED THE APPEALS, RAMBUS'S APPEAL FROM THE

54
16:04:50 1 MICRON CASE WITH AN APPEAL FROM THIS CASE, THAT

16:04:55 2 WOULD SOLVE THE PROBLEM, WOULDN'T IT?

16:04:56 3 MR. BOBROW: YOU MEAN THE DELAWARE CASE?

16:04:59 4 THE COURT: YES, IF I MISSPOKE.

16:05:02 5 MR. BOBROW: TO THE EXTENT THAT THERE IS

16:05:04 6 CONSOLIDATION, I THINK THAT AMELIORATES THE ISSUE.

16:05:06 7 BUT I THINK THAT HAS TO GO UP IN A WAY

16:05:08 8 THAT ALLOWS MICRON TO BE ABLE TO HAVE, IN HAND ON

16:05:11 9 THAT APPEAL, THAT ISSUE BEING ADJUDICATED IN ITS

16:05:14 10 FAVOR.

16:05:15 11 OTHERWISE WE'RE STUCK WITH A RECORD WE

16:05:17 12 DIDN'T CREATE AND WERE NOT GIVEN THE OPPORTUNITY TO

16:05:20 13 ADDRESS THAT ISSUE FULLY AND COMPLETELY ON APPEAL.

16:05:23 14 THE COURT: OKAY.

16:05:29 15 MR. NISSLY: YOUR HONOR, I'LL JUST MAKE A

16:05:32 16 COUPLE OF BRIEF POINTS.

16:05:33 17 I THINK THE DISCUSSION WITH MR. STONE AND

16:05:36 18 MR. BOBROW HIGHLIGHTS A POINT THAT I WAS TRYING TO

16:05:40 19 MAKE BEFORE, WHICH IS THAT THIS SPOLIATION ISSUE IS

16:05:43 20 THE ISSUE WHICH CUTS ACROSS ALL OF THESE CLAIMS,

16:05:49 21 AND EVERY TIME ANOTHER ISSUE GETS TOUCHED OR

16:05:54 22 ANOTHER ISSUE GETS BROUGHT IN, WE DEVELOP ALL THESE

16:05:57 23 OTHER ARGUMENTS AND COMPLICATIONS ABOUT THE

16:06:00 24 POTENTIAL IMPACT OF THIS DECISION ON THAT ISSUE AND

16:06:03 25 THIS DECISION ON THE OTHER ISSUE.

55
16:06:09 1 PEOPLE ASK ME, HOW COME THIS CASE IS SO

16:06:11 2 COMPLICATED? AND I EXPLAIN, LOOK, THERE ARE A LOT

16:06:14 3 OF ISSUES HERE THAT CUT ACROSS A LOT OF

16:06:16 4 MANUFACTURERS WITH VERY DIFFICULT LAW.

16:06:19 5 BUT HERE WE HAVE AN ISSUE THAT DOES CUT

16:06:21 6 ACROSS, IT DOES CUT THIS KNOT, AND IF WE COMPLICATE

16:06:25 7 IT WITH THE CONDUCT CASE AND ALL THESE OTHER

16:06:29 8 ISSUES, IT SEEMS TO ME WE ARE DOING SOMETHING THAT

16:06:32 9 WE SHOULD NOT DO IN TERMS OF JUDICIAL EFFICIENCY

16:06:35 10 AND THAT THE BEST WAY TO DO THIS IS TO CUT THROUGH

16:06:38 11 IT.

16:06:38 12 THE COURT: LET ME RAISE THE QUESTION,

16:06:40 13 THOUGH, THAT I THINK YOU RAISED.

16:06:42 14 OBVIOUSLY WE'VE CUT THIS CASE UP IN A

16:06:44 15 VARIETY -- OR THESE CASES UP IN A VARIETY OF WAYS

16:06:47 16 IN THE HOPES OF BEING EFFICIENT. WHETHER IN

16:06:51 17 HINDSIGHT WE HAVE BEEN OR NOT IS ANOTHER QUESTION

16:06:53 18 PERHAPS.

16:06:54 19 MR. NISSLY: RIGHT.

16:06:54 20 THE COURT: BUT IF WE CARVE OUT THE

16:07:01 21 SPOLIATION ISSUE AND THAT GOES UP ON APPEAL AND THE

16:07:09 22 MANUFACTURERS AREN'T FULLY SUCCESSFUL ON THEIR --

16:07:13 23 OR IN THEIR POSITION ON APPEAL, THE COURT SAYS,

16:07:17 24 "WELL, THERE'S SPOLIATION, BUT THERE WAS TOO HARSH

16:07:20 25 A REMEDY, "OR "YES, THERE WAS SPOLIATION, BUT

56
16:07:25 1 THERE'S NO SHOWING THAT ANY MATERIAL DOCUMENTS WERE

16:07:28 2 MISSING," OR WHATEVER --

16:07:30 3 MR. NISSLY: RIGHT.

16:07:31 4 THE COURT: -- THEN IT COMES BACK AND WE

16:07:39 5 TRY THE CASE WITHOUT A RESOLUTION OF CLAIM

16:07:44 6 CONSTRUCTION OR OTHER ISSUES, CLAIM CONSTRUCTION

16:07:53 7 BEING THE MAIN ONE, OR -- AND WE HAVE TO DO IT

16:07:59 8 OVER, PERHAPS DO IT AGAIN, WHICH IS GOING TO PUT

16:08:02 9 THE FINAL RESOLUTION FURTHER DOWN THE ROAD.

16:08:04 10 SO I GUESS WHAT I'M SAYING IS, WHY

16:08:07 11 DOESN'T IT MAKE SENSE EITHER TO GO UP ON APPEAL ON

16:08:13 12 EVERYTHING, ESSENTIALLY, THAT'S POSSIBLE TO GO UP

16:08:15 13 ON -- NOW, PERHAPS, WITHOUT THE SAMSUNG LICENSING

16:08:23 14 ISSUE -- SO THAT THE RULES ARE PRETTY CLEAR WHEN

16:08:33 15 THE CASE COMES BACK TO BE TRIED, IF IT COMES BACK,

16:08:37 16 AS OPPOSED TO DOING AN APPEAL THAT STAYS EVERYTHING

16:08:43 17 ELSE AND IF THE MANUFACTURERS AREN'T FULLY

16:08:49 18 SUCCESSFUL ON THE SPOLIATION, WE'VE STILL GOT ALL

16:08:55 19 THESE OTHER ISSUES REMAINING, WHICH COULD REQUIRE

16:08:57 20 ANOTHER APPEAL AND ANOTHER TRIAL?

16:08:59 21 MR. NISSLY: MY THOUGHT IN RESPONSE TO

16:09:00 22 THAT IS THIS, YOUR HONOR: AND, AGAIN, THE CLAIM

16:09:03 23 CONSTRUCTION IS A, IS ONE THAT PERHAPS BELONGS IN

16:09:07 24 ITS OWN BUCKET BECAUSE OF THE ROLE OF CLAIM

16:09:10 25 CONSTRUCTION AND THE DE NOVO REVIEW.

57
16:09:13 1 BUT WHAT I SUGGEST TO YOU IS THAT IF WE

16:09:16 2 GET THE SPOLIATION ISSUE RESOLVED, ALL THOSE OTHER

16:09:20 3 ISSUES HAVE BEEN TRIED ONE WAY OR ANOTHER. THE

16:09:23 4 RECORD IS COMPLETE.

16:09:24 5 AS THE COURT NOTED, ALL THESE WITNESSES

16:09:26 6 HAVE BEEN DEPOSED MULTIPLE TIMES. THEY ALL HAVE

16:09:29 7 VIDEO DEPOSITION TAPES AVAILABLE. ALL OF THIS WORK

16:09:32 8 THAT HAS BEEN DONE OVER ALL THESE YEARS IS NOT

16:09:35 9 GOING AWAY.

16:09:37 10 BUT IF 15 ISSUES GO UP TO THE COURT OF

16:09:39 11 APPEAL ON ALL THESE VARIOUS ASPECTS, I SUBMIT AND

16:09:42 12 SUGGEST TO THE COURT THAT THAT'S NOT A WAY TO

16:09:45 13 PROCEED HERE, IT'LL MAKE THINGS WORSE, AND THAT THE

16:09:49 14 WAY TO PROCEED IS TO CARVE OUT THIS ONE ISSUE THAT

16:09:51 15 DOES GO ACROSS ALL OF THESE PATENTS AND ALL OF

16:09:54 16 THESE CLAIMS AND FIND OUT, ONCE AND FOR ALL, IS

16:09:57 17 RAMBUS PERMITTED TO ASSERT THESE CLAIMS OR NOT, BY

16:10:00 18 THE COURT OF APPEAL, AND GET THAT RESOLVED.

16:10:03 19 EVERYTHING ELSE IS IN THE CAN IN THE

16:10:04 20 SENSE THAT YOU HAVE CONSTRUED THESE CLAIMS, OR

16:10:07 21 MAYBE THE CIRCUIT TAKES A LOOK AT THAT. THESE

16:10:11 22 ISSUES HAVE BEEN TRIED AND THEN WE SEE WHERE WE

16:10:13 23 ARE.

16:10:14 24 BUT WE START TALKING ABOUT APPEALING

16:10:16 25 DETERMINATIONS FROM THE CONDUCT CASE WHEN MICRON

58
16:10:19 1 ARGUES, "NOT FAIR AS TO US," WE ARGUE THAT WASN'T

16:10:22 2 FAIR, THAT TRIAL WAS TAINTED BY SPOLIATION, THERE

16:10:25 3 ARE ALL THESE OTHER COMPLEX ISSUES AND FACTS THAT

16:10:28 4 MAKE IT SO DIFFICULT TO SORT OUR WAY THROUGH THAT

16:10:31 5 WE OUGHT TO FOCUS ON THE ONE ISSUE THAT'LL CUT

16:10:34 6 ACROSS ALL OF THESE.

16:10:35 7 THE COURT: OKAY. DO YOU HAVE ANY FINAL

16:10:37 8 FINAL?

16:10:38 9 MR. STONE: UM --

16:10:41 10 THE COURT: YOU CERTAINLY DON'T HAVE TO.

16:10:42 11 I JUST WANT TO GIVE EVERYBODY A CHANCE.

16:10:45 12 MR. STONE: I JUST THINK -- JUST AS TO

16:10:47 13 THE LATTER POINT.

16:10:48 14 I JUST THINK WE KNOW, FOR EXAMPLE, THAT

16:10:50 15 THE MANUFACTURERS BROUGHT THEIR JEDEC CLAIM AGAINST

16:10:54 16 RAMBUS AND WOULD INTEND TO PURSUE IT SOME DAY IN

16:10:59 17 ANY EVENT, SO THAT ISSUE IS GOING UP.

16:11:02 18 I THINK WE WILL SEE THAT IT COULD GO UP

16:11:06 19 ON CERTIFICATION AS TO THE PARTIES OTHER THAN HYNIX

16:11:08 20 WHERE IT WOULD BE A FINAL JUDGMENT VERY QUICKLY.

16:11:11 21 CERTAINLY IN SAMSUNG'S CASE, AFTER THE

16:11:13 22 TRIAL THAT YOU'VE SUGGESTED WE WOULD START IN

16:11:15 23 FEBRUARY, AS SOON AS THAT TRIAL ENDS SAMSUNG WOULD

16:11:20 24 HAVE A FINAL JUDGMENT IN THE CASES HERE AND WOULD

16:11:22 25 BE ABLE TO GO UP.

59
16:11:23 1 AND THERE WOULD THEN BE, UNDER -- I GUESS

16:11:26 2 MR. BOBROW CORRECTED ME.

16:11:28 3 THERE WOULD THEN BE, UNDER OUR VIEW OF

16:11:30 4 THE IMPLICATIONS OF JUDGE ROBINSON'S RULING, A

16:11:32 5 TRIAL ON THE SPOLIATION HERE INVOLVING BOTH MICRON

16:11:36 6 AND NANYA, AND AT THAT TIME THEIR CASES WOULD BE

16:11:39 7 DONE.

16:11:40 8 IF THAT WAS DONE PROMPTLY, THE APPEAL,

16:11:42 9 EVEN OF A FINAL JUDGMENT IN THOSE CASES, WOULD BE

16:11:45 10 IN TIME TO BE CONSOLIDATED WITH THE OTHERS.

16:11:49 11 SO I DO THINK WE SHOULD ADDRESS THIS AND

16:11:51 12 WE SHOULD LOOK AT REALISTIC TIME TABLES AND TRY TO

16:11:55 13 UNDERSTAND WHETHER THAT WOULD HAPPEN.

16:11:57 14 BUT THERE IS NO DOUBT, I THINK, THAT A

16:11:59 15 FINAL APPEAL IN SAMSUNG OF ALL OF THE ISSUES WOULD

16:12:02 16 BE ABLE TO BE CONSOLIDATED WITH AN APPEAL IN

16:12:05 17 HYNIX I GIVEN THE TENTATIVE SCHEDULE YOU'VE SORT OF

16:12:08 18 LAID OUT, AND PERHAPS THE MICRON ISSUES, AND

16:12:11 19 CERTAINLY, DEPENDING ON YOUR RULING ON THE

16:12:14 20 COLLATERAL ESTOPPEL CONSEQUENCES OF JUDGE

16:12:16 21 ROBINSON'S RULING, THAT RULING WOULD BE PART OF

16:12:19 22 WHATEVER WENT UP HERE IN ANY EVENT IF THERE WERE

16:12:22 23 CERTIFICATION OF THE CONDUCT TRIAL OR THE JEDEC

16:12:25 24 ISSUES AS TO MICRON.

16:12:27 25 SO I THINK IN THE -- THE CONCERN THAT

60
16:12:29 1 MR. BOBROW EXPRESSED, HE WOULD BE PROTECTED IN THAT

16:12:32 2 REGARD WITH WHATEVER THIS COURT RULES FOLLOWING THE

16:12:34 3 ARGUMENT, SAY, ON JANUARY 30TH. HE'D BE PROTECTED

16:12:39 4 THERE AND THAT ISSUE WOULD BE PROPERLY PRESENTED.

16:12:42 5 SO I DO THINK THAT THERE IS -- I THINK

16:12:44 6 THE BEST THAT WE CAN DO, THE BEST THING WE CAN DO

16:12:47 7 FOR THE FEDERAL CIRCUIT IS TO GIVE THEM AS MANY OF

16:12:51 8 THESE ISSUES THAT IT IS POSSIBLE FOR THEM TO DECIDE

16:12:53 9 AT THIS TIME, CONSISTENT WITH WHAT THEY'VE TOLD US

16:12:56 10 IN THE PAST IS THEIR PREFERENCE FOR HEARING THINGS

16:12:58 11 AFTER FINAL JUDGMENT, AS OPPOSED TO ON AN

16:13:01 12 INTERLOCUTORY BASIS.

16:13:02 13 THE COURT: OKAY.

16:13:03 14 MR. STONE: THANK YOU.

16:13:04 15 MR. POWERS: VERY BRIEFLY, IF I MAY, YOUR

16:13:04 16 HONOR.

16:13:06 17 MR. STONE'S SUGGESTION THAT IF YOU WENT

16:13:10 18 TO TRIAL IN THE CASE THAT'S CURRENTLY SET FOR

16:13:13 19 JANUARY, THAT THAT COULD REACH FINAL JUDGMENT SUCH

16:13:18 20 THAT IT COULD BE CONSOLIDATED WITH EVERYTHING

16:13:21 21 ANYWAY AND GO UP IN TIME TO BE HEARD WITH JUDGE

16:13:24 22 ROBINSON'S, THERE'S NO WAY THAT HAPPENS BECAUSE --

16:13:27 23 FOR TWO REASONS: ONE, THERE'S STILL THE

16:13:30 24 UNSCHEDULED SUBSEQUENT TRIAL, IN THEORY, WITH BOTH

16:13:35 25 NANYA AND SAMSUNG ON SDR AND DDR, THAT HASN'T EVEN

61
16:13:39 1 BEEN SCHEDULED; AND, SECONDLY, THERE WOULD BE THE

16:13:42 2 NEED FOR ALL THE POST-TRIAL MOTIONS. YOU DON'T

16:13:44 3 JUST ENTER FINAL JUDGMENT THE DAY A JURY COMES BACK

16:13:49 4 ONE WAY OR THE OTHER. THAT TAKES MONTHS.

16:13:51 5 SO IT'S FANTASY TO SUGGEST THAT WE CAN

16:13:54 6 COMBINE ALL OF THIS IN ONE AND GET ALL THE BENEFITS

16:13:57 7 AND GO TO TRIAL IN JANUARY. THAT JUST DOESN'T

16:14:00 8 WORK.

16:14:01 9 SO THAT, THAT I THINK -- I THINK THAT

16:14:03 10 HOPE THAT HE'S HOLDING OUT JUST ISN'T REALISTIC.

16:14:07 11 THE COURT: OKAY.

16:14:09 12 MR. BOBROW: I'M SORRY, YOUR HONOR. MAY

16:14:11 13 I, IN 30 SECONDS?

16:14:13 14 MR. STONE'S SUGGESTION THAT WE'RE

16:14:16 15 PROTECTED IF THIS COURT DENIES SUMMARY JUDGMENT IS

16:14:19 16 JUST WRONG. THERE'S NOTHING TO CERTIFY AND IT JUST

16:14:24 17 DOESN'T WORK THAT WAY. SO THAT'S A SIGNIFICANT

16:14:26 18 ISSUE.

16:14:27 19 WE HAVE TO HAVE EITHER, NUMBER ONE,

16:14:30 20 SUMMARY JUDGMENT AND JUDGMENT ENTERED BASED UPON

16:14:32 21 COLLATERAL ESTOPPEL, WHICH WE THINK IS THE ONLY

16:14:34 22 RIGHT THING TO DO HERE GIVEN THAT WE HAD OUR DAY IN

16:14:37 23 COURT WITH RAMBUS AND RAMBUS LOST; OR, NUMBER TWO,

16:14:40 24 WE HAVE TO HAVE THE SPOLIATION TRIAL OR ELSE ANY

16:14:43 25 RECORD GOING UP AS TO US ON THE ANTITRUST ISSUES IS

62
16:14:46 1 FUNDAMENTALLY UNFAIR.

16:14:48 2 A SCHEDULING ISSUE IF I MAY. THE COURT'S

16:14:50 3 SUGGESTION OF MOVING THINGS TO THE WEEK OF THE 9TH,

16:14:53 4 I HAVE A CONCERN ABOUT WHETHER OR NOT THAT'S GOING

16:14:56 5 TO GIVE THE PARTIES AND THE COURT ENOUGH TIME TO

16:14:59 6 RESOLVE THE ISSUES THAT NEED TO BE RESOLVED GIVEN

16:15:02 7 THE DATE THAT YOU HAD MENTIONED BEFORE IN TERMS OF

16:15:05 8 WHEN THE ISSUE WAS RAISED AS TO WHAT TO DO WITH THE

16:15:08 9 DAMAGES MOTIONS.

16:15:09 10 I DON'T KNOW IF THE COURT'S AVAILABLE THE

16:15:11 11 WEEK OF THE 2ND, TOWARDS THE END OF THAT WEEK, BUT

16:15:14 12 PERHAPS THAT'S A --

16:15:16 13 THE COURT: WHY DON'T I -- MS. GARCIA,

16:15:19 14 UNFORTUNATELY, IS NOT HERE. I DIDN'T REALIZE THAT

16:15:22 15 SHE WASN'T GOING TO BE HERE.

16:15:24 16 MAYBE THE BEST THING TO DO IS TO HAVE A

16:15:30 17 COORDINATED CALL WITH HER OR MR. FLETCHER WHEN WE

16:15:37 18 CAN LOOK AT A CALENDAR AND SEE WHAT -- WE COULD

16:15:44 19 TAKE A LOOK NOW, IF YOU WANT.

16:15:46 20 MR. BOBROW: I THINK IT'S -- OBVIOUSLY

16:15:48 21 THERE'S A LOT OF BRIEFING AND OTHER THINGS TO DO TO

16:15:51 22 TRY TO FIGURE OUT WHAT THE BEST APPROACH IS GOING

16:15:53 23 FORWARD AND WHETHER IT MAKES SENSE TO HAVE THAT

16:15:56 24 TRIAL SCHEDULED OR NOT, AS THE COURT HAD INDICATED

16:15:58 25 BEFORE.

63
16:15:59 1 THE COURT: I WANT TO SCHEDULE IT -- I

16:16:00 2 WANT A FIRM UNDERSTANDING THAT IF WE'RE GOING TO

16:16:03 3 GO, WE'RE GOING TO START ON THE 17TH.

16:16:05 4 MR. BOBROW: AND IN THAT EVENT, THEN, THE

16:16:07 5 ONLY ISSUE THAT I'M RAISING NOW, THEN, IS THE

16:16:10 6 QUESTION VIS-A-VIS THE MOTION THAT WE'LL BE FILING

16:16:13 7 AND OBVIOUSLY THE NEED FOR RESOLUTION EARLIER

16:16:17 8 RATHER THAN LATER AND WHETHER THAT GIVES THE COURT

16:16:20 9 AND THE PARTIES ENOUGH TIME TO HAVE ESSENTIALLY 17

16:16:23 10 DAYS IN BETWEEN THE TWO.

16:16:24 11 THE COURT: WELL, THEORETICALLY WE WERE

16:16:26 12 GOING TO START NEXT MONDAY AND YOU WERE GOING TO BE

16:16:29 13 IN HERE ON FRIDAY.

16:16:30 14 MR. BOBROW: I UNDERSTAND, BUT THINGS

16:16:32 15 HAVE CHANGED, AT LEAST I THINK AS TO MICRON, AS YOU

16:16:35 16 RECOGNIZED IN A FUNDAMENTAL WAY, AND I THINK THAT

16:16:38 17 IT'S IMPORTANT AND FAIR AND JUST THAT GIVEN THAT

16:16:40 18 WE'VE REALLY HAD PHASE 3 OF THIS TRIAL ALREADY,

16:16:43 19 THAT THE IMPLICATIONS OF THAT BE UNDERSTOOD RIGHT

16:16:45 20 AWAY SO THAT WE DON'T HAVE A TRIAL ON PATENTS THAT

16:16:48 21 ARE UNENFORCEABLE AS TO MICRON.

16:16:50 22 BUT HAVING SAID THAT, THE REASON I RAISE

16:16:52 23 THE ISSUE VIS-A-VIS THE 9TH, OR SCHEDULING THINGS

16:16:55 24 THE WEEK OF THE 9TH, IS UNDER WHAT THE COURT HAD

16:16:57 25 JUST TALKED ABOUT, WE'RE GOING TO HAVE OPENINGS THE

64
16:17:00 1 WEEK OF THE 17TH.

16:17:02 2 MR. STONE: I WAS JUST GOING TO SAY, I

16:17:04 3 AGREE WITH MR. BOBROW THAT IT WOULD BE PREFERABLE,

16:17:06 4 I THINK FROM EVERYBODY'S PERSPECTIVE, IF THE

16:17:09 5 REMAINING MOTIONS WERE ARGUED, IF IT WORKS WITH THE

16:17:13 6 COURT'S SCHEDULE, THE WEEK OF THE 2ND.

16:17:17 7 I WOULD GUESS -- IF WE START ON THE 17TH

16:17:19 8 WITH THE CURRENT PLAN, THE QUESTIONNAIRES WOULD BE

16:17:22 9 FILLED OUT ON THE 17TH, AND THEN I GUESS THE JURY

16:17:25 10 SELECTION WOULD PROBABLY BE ON THE --

16:17:31 11 THE COURT: PROBABLY ON THE 23RD.

16:17:33 12 MR. STONE: PROBABLY THE 23RD. SO I

16:17:34 13 THINK THAT'S -- WITH OPENINGS, I WOULD GUESS, ON

16:17:37 14 THE 24TH IS WHAT I'M --

16:17:39 15 THE COURT: I THINK THAT'S PROBABLY

16:17:40 16 CORRECT.

16:17:40 17 MR. STONE: THAT'S WHAT I'M THINKING

16:17:42 18 WOULD PROBABLY BE THE SCHEDULE.

16:17:43 19 I THINK THE SOONER, THOUGH, WE CAN DO THE

16:17:45 20 MOTIONS -- I AGREE WITH YOU WE WOULD BE DOING

16:17:48 21 MOTIONS THIS FRIDAY AND STARTING NEXT WEEK, BUT I

16:17:50 22 THINK IF IT'S POSSIBLE WITH THE COURT'S SCHEDULE,

16:17:52 23 I'D JOIN IN MR. BOBROW'S REQUEST.

16:17:54 24 AND I'M HAPPY TO MEET AND CONFER WITH

16:17:56 25 THEM AND TALK WITH MS. GARCIA.

65
16:17:58 1 THE COURT: MAYBE THE BEST THING TO DO,

16:17:59 2 IF YOU WANT TO TAKE FIVE MINUTES AND LET ME GO GET

16:18:03 3 MY SCHEDULE, I'LL RISK GETTING MYSELF INTO

16:18:11 4 DANGEROUSNESS, BUT I'LL AT LEAST GIVE YOU DATES

16:18:15 5 THAT ARE AVAILABLE.

16:18:17 6 MR. BOBROW: OKAY.

16:18:20 7 (WHEREUPON, A RECESS WAS TAKEN.)

16:21:44 8 THE COURT: MY REPORTER CALLED MY

16:21:47 9 ATTENTION TO THE FACT THAT I CAME OUT AND STARTED

16:21:49 10 BLABBING AND DIDN'T HAVE YOU STATE YOUR

16:21:52 11 APPEARANCES, SO WOULD YOU DO THAT AT THIS TIME SO

16:21:54 12 WE HAVE A RECORD OF WHO'S HERE.

16:21:56 13 MR. STONE: GOOD AFTERNOON, YOUR HONOR.

16:21:57 14 GREGORY STONE OF MUNGER, TOLLES & OLSON ON BEHALF

16:21:59 15 OF RAMBUS.

16:22:00 16 MR. POWERS: MATT POWERS AND STEVE

16:22:02 17 CHERENSKY FOR SAMSUNG.

16:22:04 18 MR. BOBROW: JARED BOBROW FOR MICRON.

16:22:06 19 MR. FREITAS: BOB FREITAS FOR NANYA AND

16:22:08 20 NANYA U.S.A.

16:22:09 21 MR. NISSLY: KEN NISSLY AND TED BROWN FOR

16:22:12 22 HYNIX, YOUR HONOR.

16:22:13 23 THE COURT: ALL RIGHT. LOOKING AT THE

16:22:14 24 CALENDAR, AND OBVIOUSLY I HAD DATES LOCKED OUT FOR

16:22:25 25 THE WEEK OF FEBRUARY 2ND ON TUESDAY THROUGH

66
16:22:28 1 THURSDAY, SO IF WE WANTED TO -- MAYBE WE SHOULD

16:22:34 2 PICK ONE OF THOSE DATES AND THEN ONE AT THE

16:22:36 3 BEGINNING OF THE WEEK OF THE 9TH.

16:22:40 4 SO YOU WANT TO DO, SAY, WEDNESDAY THE 4TH

16:22:47 5 AT 9:00 O'CLOCK? AND TUESDAY -- OR HOW ABOUT

16:23:04 6 WEDNESDAY THE 11TH AT 9:00. DOES THAT WORK?

16:23:09 7 MR. STONE: THAT'S FINE, YOUR HONOR.

16:23:10 8 AND WHAT TIME WOULD YOU LIKE US HERE ON

16:23:13 9 THE 30TH FOR THAT?

16:23:21 10 THE COURT: THAT'LL HAVE TO BE 2:00

16:23:26 11 O'CLOCK, BECAUSE I HAVE A FULL CALENDAR THAT

16:23:28 12 MORNING.

16:23:29 13 MR. STONE: OKAY.

16:23:33 14 MR. POWERS: YOUR HONOR, COULD WE DO

16:23:35 15 EITHER TUESDAY OR THURSDAY INSTEAD OF WEDNESDAY THE

16:23:38 16 4TH? IS THAT POSSIBLE?

16:23:40 17 THE COURT: SURE. I'M SORRY. INSTEAD OF

16:23:44 18 WHEN?

16:23:45 19 MR. POWERS: INSTEAD OF WEDNESDAY THE

16:23:48 20 4TH? AND IF WE COULD DO IT THE 12TH INSTEAD OF THE

16:23:51 21 11TH, I WOULD APPRECIATE IT, IF POSSIBLE.

16:23:57 22 THE COURT: 5TH AND 12TH WORK FOR

16:23:59 23 EVERYBODY?

16:24:00 24 MR. STONE: 5TH AND 12TH, YOUR HONOR?

16:24:03 25 THE COURT: RIGHT.

67
16:24:03 1 MR. STONE: YES, THAT'S FINE.

16:24:05 2 MR. BROWN: WOULD THAT BE IN THE

16:24:06 3 AFTERNOON, THEN, YOUR HONOR?

16:24:07 4 THE COURT: NO. THE 5TH AND 12TH WOULD

16:24:10 5 BE IN THE MORNING AT 9:00.

16:24:12 6 AND THEN THE 30TH WOULD BE AT 2:00.

16:24:16 7 NOW, I THINK RAMBUS FILED A COUPLE OF

16:24:27 8 MOTIONS THAT DON'T HAVE HEARING DATES ON THEM.

16:24:29 9 MR. STONE: THAT'S RIGHT, YOUR HONOR.

16:24:30 10 THE COURT: WOULD YOU SEE IF YOU CAN MEET

16:24:31 11 AND CONFER AND AGREE TO HEAR THOSE AND TELL ME WHAT

16:24:34 12 DATE YOU'RE PLANNING ON DOING THOSE?

16:24:37 13 MR. STONE: YES.

16:24:37 14 THE COURT: IF THERE'S A PROBLEM, LET ME

16:24:39 15 KNOW.

16:24:39 16 MR. STONE: THANK YOU, YOUR HONOR.

16:24:40 17 THE COURT: ALL RIGHT. ANYTHING ELSE?

16:24:41 18 MR. BOBROW: NO.

16:24:42 19 THE COURT: OKAY. THANK YOU.

16:24:43 20 MR. STONE: THANK YOU, YOUR HONOR.

16:24:45 21 MR. BOBROW: THANK YOU, YOUR HONOR.

16:24:47 22 MR. NISSLY: THANK YOU.

16:24:49 23 MR. POWERS: THANK YOU.

16:24:50 24 (WHEREUPON, THE PROCEEDINGS IN THIS

16:24:50 25 MATTER WERE CONCLUDED.)

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