sheppard, mullin, richter & hampton llp a limited … · 2019. 1. 2. · 1 2 3 4 5 6 7 8 9 10...
TRANSCRIPT
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PLAINTIFFS’ MPAs IN SUPPORT OF EX PARTE APPLICATION FOR TRO
SHEPPARD, MULLIN, RICHTER & HAMPTON LLP A Limited Liability Partnership Including Professional Corporations
STEPHEN S. KORNICZKY, Cal. Bar No. 135532 [email protected] MARTIN R. BADER, Cal. Bar No. 222865 [email protected] MATTHEW W. HOLDER, Cal. Bar. No. 217619 [email protected] RYAN P. CUNNINGHAM, Cal Bar No. 275813 [email protected] 12275 El Camino Real, Suite 200 San Diego, California 92130-2006 Telephone: 858.720.8900 Facsimile: 858.509.3691 DANIEL L. BROWN (Pro Hac Vice Pending) [email protected] 30 Rockefeller Plaza, 39th Fl. New York, New York 10112 Telephone: 212.653.8700 Facsimile: 212.653.8701
Attorneys for Plaintiffs
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF CALIFORNIA
U-BLOX AG, U-BLOX SAN DIEGO,
INC., AND U-BLOX AMERICA,
INC.,
Plaintiffs,
v.
INTERDIGITAL, INC.;
INTERDIGITAL
COMMUNICATIONS, INC;
INTERDIGITAL TECHNOLOGY
CORPORATION; INTERDIGITAL
PATENT HOLDINGS, INC.;
INTERDIGITAL HOLDINGS,
INC.; and IPR LICENSING, INC.
Defendants.
Case No.: PLAINTIFFS’ MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF THEIR EX PARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION Complaint Filed: January 1, 2019
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PLAINTIFFS’ MPAs IN SUPPORT OF EX PARTE APPLICATION FOR TRO
TABLE OF CONTENTS
Page
I. INTRODUCTION ............................................................................................. 1
II. FACTUAL BACKGROUND ........................................................................... 4
A. Standard Setting Organizations and ETSI’s IPR Policy ......................... 4
B. In Reliance on InterDigital’s FRAND Obligations and Commitments, u-blox Becomes an InterDigital Licensee ...................... 6
C. To Coerce u-blox to Sign a Non-FRAND Agreement, InterDigital Interfered with u-blox’s Customer Relationships ............... 7
D.
........................................................................ 10
E. InterDigital Must Be Enjoined From Threatening u-blox’s Customer Relationships to the Extreme Detriment of u-Blox .............. 12
III. ARGUMENT .................................................................................................. 12
A. Applicable Legal Standards .................................................................. 12
B. A TRO And Preliminary Injunction Should Be Granted ...................... 13
1. u-blox is Likely to Succeed on the Merits of its Claims ............ 13
a. u-blox is Likely to Succeed on Its Declaratory Relief Claim ................................................................................ 14
b. u-blox is Likely to Succeed on Its Breach of Contract Claim ................................................................................ 15
c. u-blox is Likely to Succeed on Its Antitrust Claim ................ 17
C. u-blox Will Suffer Irreparable Harm Absent A TRO And Preliminary Injunction .......................................................................... 19
1. InterDigital’s Conduct Will Irreparably Harm u-blox’s Goodwill and Reputation ............................................................ 19
2. The Harm to u-blox ..................................................................................... 22
D. The Equities Weigh Heavily in u-blox’s Favor .................................... 23
E. A Preliminary Injunction is in the Public Interest ................................ 24
IV. u-Blox Should Not Be Required To Post a Bond ........................................... 25
V. CONCLUSION ............................................................................................... 26
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PLAINTIFFS’ MPAs IN SUPPORT OF EX PARTE APPLICATION FOR TRO
TABLE OF AUTHORITIES
Page(s)
Federal Cases
Alliance for the Wild Rockies v. Cottrell
632 F.3d 1127 (9th Cir. 2011) .............................................................................. 13
Auntie Anne’s, Inc. v. Wang
No. CV 14-01049 MMM (EX), 2014 WL 11728722 (C.D. Cal. July
16, 2014) ............................................................................................................... 22
Blindlight, LLC v. Cubbison
No. LA CV-1703497 JAK (PLAx), 2017 WL 4769460 (C.D. Cal.
July 3, 2017) ................................................................................................... 21, 22
Blizzard Entm’t, Inc. v. Ceiling Fan Software LLC
28 F. Supp. 3d 1006 (C.D. Cal. 2013) .................................................................. 15
Broadcom Corp. v. Qualcomm Inc.
501 F.3d 297 (3d Cir. 2007) ........................................................................... 18, 25
C & C Props. v. Shell Co.
No. 1:14-CV-01889-JAM-JLT, 2015 WL 5604384 (E.D. Cal. Sept.
23, 2015) ................................................................................................... 13, 14, 15
California v. Tahoe Reg’l Planning Agency
766 F.2d 1319 (9th Cir. 1985) .............................................................................. 25
Certified Restoration Dry Cleaning Network v. Tenke Corp.
511 F.3d 535 (6th Cir. 2007) ................................................................................ 25
Eureka Fed. Sav. & Loan Ass’n v. Am. Cas. Co.
873 F.2d 229 (9th Cir. 1989) ................................................................................ 14
Extreme Reach v. Spotgenie Partners
No. CV 13-07563-DMG (JCGx), 2013 WL 12081182 (C.D. Cal.
Nov. 22, 2013) ...................................................................................................... 23
Foremost Grps. Inc. v. Ayers Bath USA Corp.
Case No. CV 11-07473 GAF (Ex), 2011 WL 13221024 (C.D. Cal.
Dec. 20, 2011) ...................................................................................................... 21
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Granny Goose Foods, Inc. v. Brotherhood of Teamsters & Auto Truck
Drivers
415 U.S. 423 (1974) ............................................................................................. 12
Henry Schein, Inc. v. Cook
191 F. Supp. 3d 1072 (N.D. Cal. 2016) ................................................................ 13
Huawei Techs., Co. v. Samsung Elecs. Co.
No. 3:16-cv-02787-WHO, 2018 WL 1784065 (N.D. Cal. Apr. 13,
2018) ..................................................................................................................... 24
Image Tech. Servs., Inc. v. Eastman Kodak Co.
125 F.3d 1195 (9th Cir. 1997) .............................................................................. 18
Indep. Living Ctr. of S. California, Inc. v. Maxwell-Jolly
572 F.3d 644 (9th Cir. 2009) ................................................................................ 25
In re Innovatio IP Ventures, LLC Patent Litig.
2013 WL 5593609 (N.D. Ill. Oct. 3, 2013) .................................................... 15, 17
Jews For Jesus v. Brodsky
993 F. Supp. 282 (D.N.J. 1998) ............................................................................ 25
Mahroom v. Best Western Int’l., Inc.
No. C 07–2351 JF (HRL), 2009 WL 248262 (N.D. Cal. Feb. 2,
2009) ..................................................................................................................... 23
Microsoft Corp. v. Motorola, Inc.
795 F.3d 1024 (9th Cir. 2015) ........................................................................ 17, 24
Microsoft Corp. v. Motorola, Inc.
No. C10-1823JLR, 2013 WL 2111217 (W.D. Wash. Apr. 25, 2013) ........... 15, 17
Powell v. McCormack
395 U.S. 486 (1969) ............................................................................................. 14
Rackwise v. Archbold
No. 17-797 WBS CKD, 2017 WL 2547040, at *4 (E.D. Cal. June
13, 2017) ............................................................................................................... 21
Realtek Semiconductor
Corp., No. C-12-3451-RMW, 2014 WL 2738226 (N.D. Cal. June 3,
2014) ..................................................................................................................... 24
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Realtek Semiconductor Corp. v. LSI Corp.
946 F. Supp. 2d 998 (N.D. Cal. 2013) .................................................................. 21
Regents of Univ. of California v. Am. Broad. Cos., Inc.
747 F.2d 511 (9th Cir. 1984) ................................................................................ 22
Rent-A-Center, Inc. v. Canyon Television & Appliance Rental, Inc.
944 F.2d 597 (9th Cir. 1991) ................................................................................ 21
Research in Motion Ltd. v. Motorola, Inc.
644 F. Supp. 2d 788 (N.D. Tex. 2008) ................................................................. 18
Signal Hill Serv., Inc. v. Macquarie Bank Ltd.
No. CV 11-01539 MMM, 2011 WL 13220305 (C.D. Cal. June 29,
2011) ..................................................................................................................... 22
Stuhlbarg Int’l Sales Co. v. John D. Brush & Co.
240 F.3d 832 (9th Cir. 2001) .......................................................................... 13, 21
TCL Commc’n Tech. Holdings v. Telefonaktiebolaget Lm Erricsson
No: SACV 14-341 JVS(DFMx), 2017 WL 6611635, at *57 (C.D.
Cal. Dec. 21, 2017) ....................................................................... 14, 15, 16, 17, 24
Textile Unlimited, Inc. v. A. BMH and Co.
240 F.3d 781 (9th Cir. 2001) ................................................................................ 13
Federal: Statutes, Rules, Regulations, Constitutional Provisions
28 U.S.C. § 2201 ........................................................................................................ 14
Fed. R. Civ. P. 65(b) .................................................................................................. 12
Fed. R. Civ. P. 65(c) .................................................................................................. 25
Sherman Act, 15 U.S.C. § 2....................................................................................... 17
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Plaintiffs u-blox AG, u-blox San Diego, Inc., and u-blox America, Inc.
(collectively, “Plaintiffs” or “u-blox”) respectfully request that this Court
immediately grant u-blox’s motion for a Temporary Restraining Order (“TRO”)
against InterDigital, Inc., InterDigital Communications, Inc., InterDigital
Technology Corporation, InterDigital Patent Holdings, Inc., InterDigital Holdings,
Inc., and IPR Licensing, Inc. (collectively, “InterDigital” or “Defendants”) to
protect its client relationships pending a hearing to show cause why a preliminary
injunction should not issue in this case.
I. INTRODUCTION
u-blox filed this action to obtain the court’s assistance in obtaining a fair,
reasonable and non-discriminatory (“FRAND”) license to InterDigital’s 2G, 3G, and
4G standard essential patent (“SEP”) portfolio. u-blox seeks this TRO to prevent
InterDigital from irreparably interfering with u-blox’s customer relationships in an
attempt to force it to accept license terms and conditions that are not FRAND.
There is no dispute that InterDigital must provide a FRAND license to u-blox. u-
blox requests a TRO merely to keep the status quo between the parties while this
court determines the FRAND terms for such a license. This relief is required
because InterDigital has threatened and interfered with u-blox’s customer
relationships in the past, forcing u-blox to vastly and unlawfully overpay for a
license to InterDigital’s SEP portfolio. Now, without a current license, u-blox’s
business and customer relationships are again at risk. The Court should not allow
InterDigital to engage in such strong-arm tactics in order to extract “hold-up” value
from its SEP portfolio.
By way of background, InterDigital repeatedly contracted with the European
Telecommunications Standards Institute (“ETSI”), a technology standard setting
organization (“SSO”), that if InterDigital’s alleged SEPs were adopted and
incorporated into the 2G, 3G, and 4G telecommunications standards, InterDigital
would license those patent to implementers of the standards, such as u-blox, on
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FRAND terms. u-blox is a third-party beneficiary of this contract and is ready and
willing to enter into a license with InterDigital, but the parties are unable to agree on
the terms. Thus, u-blox filed its Complaint seeking a declaratory judgment to, inter
alia, set the FRAND terms and conditions, including, but not limited to, the FRAND
royalty rate for a license to InterDigital’s 2G, 3G, and 4G SEPs.
As other courts have done when the parties cannot come to an agreement, the
FRAND terms and rates will be decided by the Court in this action. InterDigital has
no incentive to negotiate FRAND terms because in the past it has been able to force
u-blox into license extension agreements that required u-blox to continue paying the
existing exorbitant non-FRAND rates. InterDigital is thus able to hold u-blox
hostage by threatening its customers when the existing license agreement expires.
More recently, in a blatant attempt to force u-blox to capitulate and sign a new
patent license on non-FRAND terms, InterDigital has refused to refrain from
contacting u-blox’s customers and downstream manufacturers. InterDigital’s
strategy is to
InterDigital’s conduct is egregious because InterDigital is well aware that: (i)
u-blox’s customers and downstream manufacturers
and (ii) u-blox is a ready and willing licensee once a FRAND rate is
determined.
In addition, as explained herein and in detail in the supporting u-blox
Declarations,1 InterDigital’s threats to u-blox’s customers and their downstream
manufacturers not only threaten to profoundly impact u-blox’s critical customer 1 See Declaration of Andreas Thiel (“Thiel Decl.”), Declaration of Kent Baker
(“Baker Decl.”) and Declaration of Mark Murray (“Murray Decl.”) (collectively, the
“Declarations”).
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relationships, but u-blox’s Indeed, u-blox has been a licensee of
InterDigital’s alleged SEPs since 2011 and relied on InterDigital’s FRAND
commitment to invest significant resources to develop products that practice the 2G,
3G, and 4G cellular standards, all of which will be lost if InterDigital is permitted to
threaten u-blox’s customers and their downstream manufacturers.
Indeed, u-blox’s customers are building products that they plan to sell for
many years, and those customers therefore rely upon and need to have confidence
that their critical component suppliers, such as u-blox, will continue to be licensed
and around long into the future. As such, not only would u-blox’s significant
investments in its technology, business, and customers be lost without any
opportunity for recoupment, but the loss of u-blox customers would be devastating
to u-blox, as the goodwill, image and reputation that u-blox has built up with its
customers and in the industry over many years will be gone forever.
Leveraging and interfering with u-blox’s customers in order to force u-blox to
pay greatly inflated royalties is the definition of patent “hold-up” and should not be
permitted.
Unfortunately, this is not the first time that InterDigital has used these strong-
arm tactics against u-blox in order to coerce it to entering a patent license agreement
on non-FRAND terms. In 2017, upon the expiration of a prior patent license
agreement between the parties, InterDigital immediately contacted and threatened u-
blox’s customers and downstream manufacturers,
. These tactics are
outrageous and highly improper. Indeed, InterDigital knew that: (i) u-blox entered
into relationships with its customers in reliance on InterDigital’s commitment to
offer a FRAND license, and (ii) u-blox’s customers and their downstream
manufacturers relied on u-blox to maintain its license with InterDigital to design and
incorporate u-blox’s technology into their products. Because InterDigital’s threats
to u-blox’s customers would have caused extreme detriment to u-blox’s critical
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customer relationships, u-blox had no choice but to capitulate and sign a temporary
patent license agreement with InterDigital that included royalty payments far in
excess of what could be considered fair or reasonable.
The term of u-blox’s temporary license from InterDigital expired on
December 31, 2018. u-blox is again ready and willing to enter into a new patent
license with InterDigital on FRAND terms. However, InterDigital is refusing to
refrain from repeating the tactics that it employed in 2017, including unnecessarily
contacting u-blox’s customers and downstream manufacturers,
In sum, because the FRAND rate will be decided by this Court and u-blox
will be an InterDigital licensee, there is no legitimate reason for InterDigital to
contact u-blox’s customers during the pendency of this action with respect to u-
blox’s products.
Accordingly, u-blox submits this request for a TRO and preliminary
injunction to enjoin InterDigital, during the pendency of this action, or until the
parties otherwise agree on the FRAND terms of a patent license between them, from
contacting u-blox’s customers and downstream manufacturers, demanding royalty
payments from them for products incorporating u-blox technology, or otherwise
disrupting or interfering with u-blox’s relationships with its customers and
downstream manufacturers.
II. FACTUAL BACKGROUND
A. Standard Setting Organizations and ETSI’s IPR Policy
Standard setting organizations (“SSOs”) are voluntary membership
organizations whose participants engage in the development of industry standards
for the benefit of their members, affiliates, and third parties implementing the
standards. SSOs and the standards they promulgate play an important role in the
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technology market, because SSOs allow companies to agree on common technology
standards so that compliant products implementing the standards will work together.
Standards also deliver economic benefits to innovators, firms that implement the
standards, and consumers who benefit from continued innovation, reduced costs,
and other efficiencies from widespread interoperability and economies of scale and
scope enabled by the standard.
Standards can also potentially impose excessive and unfair costs on these
same constituencies when owners of patents that cover or are declared to cover
various technologies necessary to practice a standard engage in opportunistic
behavior. Therefore, in order to prevent SEP owners from unfairly exploiting
alleged SEPs, SSOs have adopted intellectual property rights (“IPR”) policies. The
IPR policies permit standard setting participants the opportunity to have their
technology incorporated into a standard and to receive compensation for its use in a
larger number of devices that operate using the standard in exchange for agreeing to
license any such SEP on fair, reasonable, and non-discriminatory (“FRAND”)
terms. Firms that implement the standard thus receive assurance that they will
always have access to the standard-essential patents and will not be exploited by
patent holders or disadvantaged relative to other implementers if they invest in
implementing the standard or developing innovative products that may operate with
the standard.
For example, the IPR Policy of the SSO European Telecommunications
Standards Institute (“ETSI”) requires that if an ETSI member owns IPR, including
patents that may be considered essential to a particular standard or technical
specification, the owner must grant irrevocable licenses on FRAND terms and
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conditions to anyone practicing the standard in return for inclusion of such IPR into
the standard.2
Clause 6.1 of ETSI’s IPR Policy provides:
A. When an ESSENTIAL IPR relating to a particular STANDARD or TECHNICAL SPECIFICATION is brought to the attention of ETSI, the Director-General of ETSI shall immediately request the owner to give within three months an irrevocable undertaking in writing that it is prepared to grant irrevocable licences on fair, reasonable and non-discriminatory [FRAND] terms and conditions under such IPR… The above undertaking may be made subject to the condition that those who seek licences agree to reciprocate.
ETSI IPR Policy, § 6.1.
As an ETSI member, in conjunction with the adoption of the 2G, 3G, and 4G
standards, InterDigital made submissions to the technical bodies within ETSI,
declaring that certain of its patents or patent applications may be or may become
essential to the mobile device standards under consideration. InterDigital also
repeatedly represented that it was committed to license any such essential patents it
held on FRAND terms and conditions. True and Correct copies of InterDigital’s
declarations to ETSI are attached to u-blox’s Complaint as Exhibits 1 through 33.
In sum, because InterDigital declared a number of its patents to be essential to
the 2G, 3G, and/or 4G cellular standards established by ETSI and implemented
worldwide in a variety of wireless electronic devices, consistent with ETSI’s IPR
Policy, InterDigital agreed that it would license any such SEPs to implementers of
the technology standard on FRAND terms, including to u-blox. Id.
B. In Reliance on InterDigital’s FRAND Obligations and
Commitments, u-blox Becomes an InterDigital Licensee
u-blox delivers wireless technology to reliably locate and connect people and
devices. u-blox is a leading developer of global positioning technology, including
2 ETSI’s IPR Policy is available at https://www.etsi.org/images/files/IPR/etsi-ipr-
policy.pdf.
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products and services based on Global Navigation Satellite Systems (GNSS),
including GPS and GALILEO, for the automotive, mobile communications, and
infrastructure markets. u-blox develops cellular modules incorporating a variety of
different cellular technologies, including those that provide global geographic
coverage such as the 2G, 3G, and 4G standards. See Thiel Decl. at ¶ 9.
In reliance on InterDigital’s promise to license its alleged SEPs on FRAND
terms,
See Thiel Decl. at ¶¶ 20 – 21.
In addition,
. Id. at ¶ 15.
As explained above, InterDigital is required to license its declared SEPs to u-
blox consistent with InterDigital’s commitments to ETSI and participants and
implementers of the technology standards. However, as explained below,
InterDigital is refusing to license its declared essential patents to u-blox on FRAND
terms and conditions.
C. To Coerce u-blox to Sign a Non-FRAND Agreement, InterDigital
Interfered with u-blox’s Customer Relationships
Baker Decl. at ¶ 16.
There are a number of reasons why the royalty rates u-blox is paying are not
FRAND, including that the rates cannot be supported by any reasonable “top-down”
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analysis, which has become a well adopted method for valuing SEPs. Additionally,
patent royalty rates decline over time.
Baker Decl. at
¶ 17. Accordingly,
See id. at ¶ 23. However, despite the fact that such true-ups are
commonly agreed to by patent owners in order to allow licensees to negotiate
without the licensee being unfairly locked into paying non-FRAND rates,
Id. at ¶ 24.
In addition,
but in a blatant attempt to coerce u-blox to agree to pay excessive non-FRAND
rates, InterDigital immediately reached out to u-blox’s customers and downstream
manufacturers, informing them that
. See Baker Decl. at ¶ 25.
InterDigital’s conduct was unnecessarily destructive and outrageous, because
InterDigital knew that: (i) u-blox’s customers and downstream manufacturers would
, and (ii) u-blox was ready and willing to enter into a license with
InterDigital once a FRAND rate was agreed upon. As such, there was no legitimate
reason why InterDigital would reach out to u-blox’s customers or downstream
manufacturers to discuss u-blox.
Nonetheless, InterDigital refused to provide a FRAND license to u-blox and
then, in order to force u-blox into a license that was not on FRAND terms,
InterDigital reached out to important u-blox customers and downstream
manufacturers including, at a minimum,
. See Murray Decl. at ¶¶ 18 – 21. Not surprisingly,
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u-blox’s customers and/or downstream manufacturers were extremely concerned.
Id. at ¶ 17. InterDigital was now in a position to
that incorporate the 2G, 3G and 4G standard.
Indeed, those u-blox customers and downstream manufacturers had relied on u-
blox’s representation that it was licensed by InterDigital to design, incorporate,
and/or manufacture products containing a u-blox component – products that take
years to design and manufacture. See Baker Decl. at ¶ 30. But, now, after having
relied on u-blox’s representation that it was licensed by InterDigital to design,
incorporate, and/or manufacture products containing a u-blox component, u-blox’s
customers and downstream manufacturers found themselves at risk of
In addition, u-blox’s customers and those customers’ manufacturers and end
users – particularly in the automotive and industrial markets – are building products
they plan to sell for many years. These customers and manufacturers need
confidence that their suppliers, such as u-blox, will be around and able to supply
modules long into the future. But, InterDigital was now causing u-blox’s customers
to question u-blox’s credibility and reliability, and to lose their trust in u-blox.
Baker Decl. at ¶ 32.
It was clear to u-blox that the only reason why InterDigital continued to
demand non-FRAND rates from u-blox while threatening u-blox’s customer
relationships was to force u-blox to agree to a license extension based on excessive
royalty payments and non-FRAND terms. u-blox faced a dilemma – refuse the
unfair license terms and lose its clients and business or continue to negotiate the
license while paying the exorbitant (i.e., non-FRAND) rates. u-blox could not risk
losing its customers, goodwill, and reputation. Therefore,
See Baker Decl. at ¶ 33, Exhibit B.
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D.
In addition, because, as
discussed above, the rates that u-blox was paying were not FRAND rates,
Id. at ¶ 35.
Id. at ¶ 36.
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In
other words, despite u-blox committing to accepting a license on FRAND terms,
Id. at ¶ 37.
As such, and in order to limit the time when u-blox would
continue to be forced to pay royalties that were not FRAND,
Id. at ¶ 38.
Id. at ¶ 39.
Id. at ¶ 40.
On December 21, 2018,
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Id. at ¶ 41.
E. InterDigital Must Be Enjoined From Threatening u-blox’s
Customer Relationships to the Extreme Detriment of u-Blox
u-blox is ready and willing to enter into a new patent license with InterDigital
on FRAND terms, and those terms will now be decided by this Court in this action.
Therefore, there is no legitimate reason for InterDigital to contact u-blox’s
customers or downstream manufacturers claiming that u-blox is unlicensed. The
only reason why InterDigital needs to do so would be to threaten u-blox’s customer
relationship to force u-blox to once again sign a license agreement that is not on
FRAND terms. Nonetheless, InterDigital is refusing to refrain from this conduct
that it employed successfully in 2017.
As a result, u-blox respectfully requests that a TRO issue and an Order to
Show Cause why a Preliminary Injunction should not issue prohibiting InterDigital
during the pendency of this action or until a FRAND rate is otherwise determined
from contacting u-blox’s customers and downstream manufacturers, demanding
royalty payments from them for products incorporating u-blox technology, or
otherwise disrupting or interfering with u-blox’s relationships with its customers and
downstream manufacturers.
III. ARGUMENT
A. Applicable Legal Standards
A temporary restraining order (“TRO”) is a form of preliminary injunctive
relief that can be issued with or without notice to the opposing party or that party’s
attorney. See Fed. R. Civ. P. Rule 65(b). Its sole purpose is to prevent irreparable
harm from occurring by preserving the status quo pending a hearing on the moving
party’s application for a preliminary injunction. See Granny Goose Foods, Inc. v.
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Brotherhood of Teamsters & Auto Truck Drivers, 415 U.S. 423, 439 (1974); Textile
Unlimited, Inc. v. A. BMH and Co., 240 F.3d 781, 786 (9th Cir. 2001) (“A
preliminary injunction is not a preliminary adjudication on the merits, but a device
for preserving the status quo and preventing the irreparable loss of rights before
judgment.”).
The standard for issuing a TRO is the same as the standard for issuing a
preliminary injunction. See Stuhlbarg Int’l Sales Co. v. John D. Brush & Co., 240
F.3d 832, 839-40 & n.7 (9th Cir. 2001). To obtain a TRO, a movant “must establish
that he is likely to succeed on the merits, that he is likely to suffer irreparable harm
in the absence of preliminary relief, that the balance of equities tips in his favor, and
that an injunction is in the public interest.” Henry Schein, Inc. v. Cook, 191 F. Supp.
3d 1072, 1076 (N.D. Cal. 2016).
These factors are balanced against one another, such that a strong showing of
irreparable harm may overcome a lesser showing of likelihood of success, and
likewise a strong showing on the merits justifies preserving the status quo even in
cases with less substantial irreparable harm. See Alliance for the Wild Rockies v.
Cottrell, 632 F.3d 1127, 1134-35 (9th Cir. 2011) (“A preliminary injunction is
appropriate when a plaintiff demonstrates … that serious questions going to the
merits were raised and the balance of hardships tips sharply in the plaintiff's
favor.”).
B. A TRO And Preliminary Injunction Should Be Granted
1. u-blox is Likely to Succeed on the Merits of its Claims
“A plaintiff need only show success on the merits is likely for one claim, not
all claims to meet the burden of establishing an entitlement to a preliminary
injunction.” C & C Props. v. Shell Co., No. 1:14-CV-01889-JAM-JLT, 2015 WL
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5604384, at *4 (E.D. Cal. Sept. 23, 2015), report and recommendation adopted
(Dec. 3, 2015). Here, u-blox is likely to succeed on the merits of several claims.3
a. u-blox is Likely to Succeed on Its Declaratory Relief
Claim
The Declaratory Judgment Act allows a federal court to “declare the rights
and other legal relations” of parties to a “case of actual controversy.” 28 U.S.C. §
2201 (2018); C & C Props., 2015 WL 5604384, at *8. “The availability of
declaratory relief depends on whether there is a live dispute between the parties, and
a request for declaratory relief may be considered independently of whether other
forms of relief are appropriate.” TCL Commc’n Tech. Holdings v.
Telefonaktiebolaget Lm Ericsson, No: SACV 14-341 JVS(DFMx), 2017 WL
6611635, at *57 (C.D. Cal. Dec. 21, 2017) (citing Powell v. McCormack, 395 U.S.
486, 517-518 (1969)).
In the Ninth Circuit, “[d]eclaratory relief is appropriate (1) when the
judgment will serve a useful purpose in clarifying and settling the legal relations in
issue, and (2) when it will terminate and afford relief from the uncertainty,
insecurity, and controversy giving rise to the proceeding.” Eureka Fed. Sav. & Loan
Ass’n v. Am. Cas. Co., 873 F.2d 229, 231 (9th Cir. 1989).
Here, as detailed in Plaintiffs’ Complaint and u-blox’s Declarations, a
justiciable controversy exists between u-blox and InterDigital regarding what
constitutes FRAND terms and conditions for a license to InterDigital’s alleged 2G,
3G, and 4G SEPs with respect to u-blox’s products.
As such, as other courts have done when the parties cannot agree on FRAND
terms, this Court will resolve the parties’ dispute by issuing a judgment that sets the
applicable FRAND terms and conditions, including the royalty rate(s), for a license
3 u-blox is likely to succeed on the merits of each of its claims, but since it is only
required to succeed with respect to one for purposes of an injunction, u-blox does
not address the merits of each of its claims.
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to InterDigital’s alleged 2G, 3G, and 4G SEPs. See, e.g., TCL Commc’n Tech.
Holdings, 2017 WL 6611635, at *51-52, *57-58 (entering judgment determining the
FRAND rate); In re Innovatio IP Ventures, LLC Patent Litig., No. 11 C 9308, 2013
WL 5593609, at *43 (N.D. Ill. Oct. 3, 2013) (determining FRAND rate); Microsoft
Corp. v. Motorola, Inc., No. C10-1823JLR, 2013 WL 2111217, at *100 (W.D.
Wash. Apr. 25, 2013) (determining FRAND rate).
In fact, it is virtually a certainty that this Court will determine the applicable
FRAND rate in this action. See TCL Commc’n Tech. Holdings., 2017 WL 6611635,
at *2 (“It is unnecessary for the Court to determine whether the failure to arrive at an
agreed FRAND rate violated Ericsson’s FRAND obligation. Regardless of the
answer to that question, the Court is required to assess whether FRAND rates have
been offered in light of the declaratory relief which both sides seek.”). Based on the
foregoing, u-blox is likely to succeed on its claim seeking a declaratory judgment
that sets the FRAND terms and conditions.4
b. u-blox is Likely to Succeed on Its Breach of Contract
Claim
A cause of action for breach of contract requires proof of: (1) existence of the
contract; (2) plaintiff’s performance or excuse for nonperformance; (3) defendant’s
breach; and (4) damages to plaintiff as a result of the breach.” Blizzard Entm’t, Inc.
v. Ceiling Fan Software LLC, 28 F. Supp. 3d 1006, 1017 (C.D. Cal. 2013).
4 In addition, when the plaintiff has shown that it is likely to succeed on the merits
of a substantive claim, courts have found that the plaintiff is likely to succeed in
obtaining a related determination of the rights and interests of the parties. See C &
C Props., 2015 WL 5604384, at *9 (finding that plaintiffs were likely to succeed on
its declaratory judgment claim when plaintiffs also established a trespass claim).
Here, u-blox is likely to succeed on its declaratory judgment claim because, as set
forth below, u-blox is also likely to succeed on the merits of its underlying breach of
contract claim based on InterDigital’s failure to negotiate in good faith for a
FRAND license.
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Here, InterDigital entered into contractual commitments with ETSI and their
respective members, participants, and implementers relating to the 2G, 3G, and 4G
standards. As a member of ETSI and to comply with ETSI’s IPR Policy,
InterDigital made a binding commitment to ETSI, ETSI members, and implementers
of the standard, such as u-blox, to grant irrevocable licenses to InterDigital’s alleged
SEPs on FRAND terms and conditions if its alleged SEPs were incorporated into the
technology standards.
u-blox stands willing to enter into a license with InterDigital on terms that are
FRAND. However, in breach of InterDigital’s contract with ETSI, InterDigital is
attempting to extract from u-blox supra-competitive royalties which are not on
FRAND terms. See Baker Decl. at ¶¶ 20 – 21. Among other things,
Id. at ¶¶ 21 – 22. In
addition, a study conducted by Concur IP as part of unrelated litigation,
See Complaint ¶¶ 101-103. Compare to TCL where the Court used a total
royalty stack of between only 6-10% for a license to all 4G SEPs. TCL Commc’n
Tech. Holdings, 2017 WL 6611635, at *26
As explained
above, there is no legitimate reason for Interdigital to contact u-blox’s customers or
downstream manufacturers because u-blox is willing and committed in good faith to
finalize a new PLA.
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A number of cases that have been litigated in U.S. courts demonstrate that
patent hold-up is a widespread problem, with SEP owners violating their FRAND
commitments by making royalty demands significantly above the adjudicated
FRAND rates. See, e.g., TCL Commc’n Tech. Holdings., 2017 WL 6611635, at
*51-52 (determining FRAND rates of 0.314%-0.45% for 4G, 0.224%-0.30% for 3G,
and 0.09%-0.16% for 2G, as compared to Ericsson’s demand of 1.5% for 4G, 1.2%
for 3G, and 0.8%-1.0% for 2G); In re Innovatio, 2013 WL 5593609, at *43 (for 19
asserted patents, assessing damages of $0.0956 per unit as compared to the proposed
royalty of $16.17 per unit for tablet computers); Microsoft Corp. v. Motorola, Inc.,
2013 WL 2111217, at *100 (determining, FRAND rate of $0.03471 per Microsoft’s
xBox unit, as compared to Motorola’s initial demand of $6.00-$8.00 per xBox unit).
In every case, the SEP owner demanded royalty payments that were multiple times
in excess of what was FRAND.
This is precisely what is occurring here. InterDigital is refusing to offer u-
blox a license on FRAND terms, and is continuing to take actions, like it did in
2017, to force u-blox to enter into a non-FRAND license. Without a FRAND license
from InterDigital, not only will u-blox suffer significant monetary harm, but as
explained below, u-blox will suffer a loss of its customers, its goodwill, product
image, and reputation.
Based on the foregoing, u-blox is more than likely to succeed on its breach of
contract claim. See Microsoft Corp. v. Motorola, Inc., 795 F.3d 1024, 1046 (9th Cir.
2015) (“the jury could conclude that Motorola's actions were intended to induce
hold-up, i.e., to pressure Microsoft into accepting a higher RAND rate than was
objectively merited, and thereby to frustrate the purpose of the contract.”).
c. u-blox is Likely to Succeed on Its Antitrust Claim
u-blox asserts an antitrust monopolization claim under the Sherman Act, 15
U.S.C. § 2, based on InterDigital’s alleged abusive licensing practices and unlawful
monopolization in certain relevant markets for 2G, 3G, and 4G cellular
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technologies. As alleged in detail in u-blox’s Complaint and described above,
InterDigital has engaged in an unlawful scheme to exploit its undue market power
over technologies necessary for implementers, including u-blox, to practice the 2G,
3G, and 4G standards. InterDigital’s market power is due solely to its false
commitments to license its alleged SEPs on FRAND terms and conditions, which
“locked in” its technology into the standard(s).
However, after acquiring an unlawful monopoly over the relevant technology
markets, InterDigital has illegally exploited this power against u-blox by refusing to
honor its obligation to license its alleged SEPs on FRAND terms and conditions and
threatening u-blox’s customers relationships to further its monopolistic scheme.
InterDigital’s actions injure competition by excluding alternate technologies
which could have been included in the standard and then forcing implementers of
the standards such as u-blox to face drastically higher costs for access to cellular
technologies necessary for the manufacture of standard-compliant products.
InterDigital’s attempt to extract monopoly rates that are not FRAND from u-blox,
including, for example,
, see Baker Decl. at ¶ 22, is
precisely the type of “patent hold-up” that patent policies of SSOs were designed to
eliminate. See Research in Motion Ltd. v. Motorola, Inc., 644 F. Supp. 2d 788, 791,
794 (N.D. Tex. 2008); see also Image Tech. Servs., Inc. v. Eastman Kodak Co., 125
F.3d 1195, 1216 (9th Cir. 1997) (“the right of exclusion [does not] protect an
attempt to extend a lawful monopoly beyond the grant of a patent”); Broadcom
Corp. v. Qualcomm Inc., 501 F.3d 297, 312 (3d Cir. 2007) (explaining the “unique
dangers of deception in the standard- setting context … where participants rely on
structural protections, such as rules requiring the disclosure of [intellectual property
rights], to facilitate competition and constrain the exercise of monopoly power”).
Accordingly, u-blox is likely to succeed on the merits of its antitrust claim.
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C. u-blox Will Suffer Irreparable Harm Absent A TRO And
Preliminary Injunction
1. InterDigital’s Conduct Will Irreparably Harm u-blox’s
Goodwill and Reputation
As explained in detail in the Declarations of u-blox’s representatives, if, prior
to this Court determining the FRAND rate for u-blox’s license to InterDigital’s
patents, InterDigital is permitted to contact u-blox’s customers and downstream
manufacturers and , u-blox’s customer
relationships will be profoundly harmed and the
Indeed, as explained above, when InterDigital contacted u-blox’s customers
and downstream manufacturers in 2017, stating that
(even though the real reason why InterDigital
was doing so was to pressure u-blox to accept InterDigital’s non-FRAND rate), u-
blox’s customers and their downstream manufacturers were confused and, not
surprisingly, extremely concerned. See Murray Decl. at ¶¶ 17 – 21. Indeed, having
relied on u-blox’s representation that it was licensed by InterDigital to design,
incorporate, and/or manufacture products containing a u-blox component that takes
years to design and manufacture, these customers and downstream manufacturers
were suddenly at risk of
Id. at ¶ 19 (“u-blox is
the licensee of InterDigital, but now InterDigital said u-blox is not in the license list.
If that is true, we will have a big issue.”).
u-blox was extremely worried because InterDigital was causing u-blox’s
customers to question u-blox’s credibility and lose their trust in u-blox. Id. at ¶¶ 22
– 23 (“if InterDigital continued to state to
, it would
not only kill u-blox’s business with its customers, but, as explained below, would
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cause u-blox irreversible harm.”). u-blox could not risk losing its customers, and
ultimately its business. Therefore,
.
See Baker Decl. at ¶ 33.
The impact on u-blox if InterDigital is permitted to again contact u-blox’s
customers and downstream manufacturers claiming, again, that
would be
devastating to u-blox. See Thiel Decl. at ¶¶ 27-29; see also Murray Decl. at ¶¶ 25 –
32.
Indeed, among other things, in reliance upon InterDigital’s promises that it
would license its technology to u-blox and others on FRAND terms, u-blox has
made significant investments into the research, development, and production of its
cellular modules, and has committed to its customers a product roadmap based on
cellular technology reaching beyond 2020. See Thiel Decl. at ¶¶ 20-22. Similarly,
u-blox’s customers – particularly in the automotive and industrial markets – are
building products that they plan to sell for many years, and those customers
therefore rely upon and need to have confidence that their critical component
suppliers, such as u-blox, will continue to be licensed and around long into the
future. See Thiel Decl. at ¶ 29.
As such, not only would the significant investments by u-blox in its
technology, business, and customers essentially be lost without any opportunity for
recoupment, see Thiel Decl. at ¶ 27, but the loss of u-blox customers would be
devastating to u-blox, as the goodwill, image and reputation that u-blox has built up
with its customers and in the industry over many years will be gone forever. See
Thiel Decl. at ¶ 30.
u-blox’s customers would also be facing
after spending significant time and money to design
their products around u-blox’s technology. In addition, u-blox’s customers and
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downstream manufacturers will lose credibility in u-blox, destroy u-blox’s goodwill
and reputation and, ultimately, its customers. See Thiel Decl. at ¶¶ 31 – 32 (“[i]f,
after all of these efforts a u-blox customer is left with an unsaleable product, the
goodwill and trust that u-blox has obtained with many years of hard work will
inevitably be destroyed.”)
“Evidence of threatened loss of prospective customers or goodwill certainly
supports a finding of the possibility of irreparable harm.” Stuhlbarg Int’l. Sales Co.,
240 F.3d at 841; see also Rent-A-Center, Inc. v. Canyon Television & Appliance
Rental, Inc., 944 F.2d 597, 603 (9th Cir. 1991) (damage to goodwill may support a
finding of irreparable harm because it is difficult to quantify); Rackwise v. Archbold,
No. 17-797 WBS CKD, 2017 WL 2547040, at *4 (E.D. Cal. June 13, 2017)
(granting plaintiff’s motion for preliminary injunction when defendant’s conduct
would harm “the reputation and goodwill of plaintiff with investors, customers, and
the SEC.”); Realtek Semiconductor Corp. v. LSI Corp., 946 F. Supp. 2d 998, 1009
(N.D. Cal. 2013) (granting plaintiff’s motion for a preliminary injunction to enjoin
defendant from enforcing an exclusion order when it “harmed [plaintiff’s] reputation
and poses an imminent threat of customer and revenue loss.”); Foremost Grps. Inc.
v. Ayers Bath USA Corp., Case No. CV 11-07473 GAF (Ex), 2011 WL 13221024,
at *10 (C.D. Cal. Dec. 20, 2011) (granting plaintiff’s request to enjoin defendant
from selling parts and products because the court found it likely that such conduct
would impair plaintiff’s ability to maintain business relationships with its customers
and develop business with others).
It will be impossible for u-blox to recover from the harm to its goodwill and
business reputation. See Thiel Decl. at ¶ 35 (“[I]t would be impossible for u-blox to
recover the goodwill and reputation that u-blox has built up over so many years.”).
Blindlight, LLC v. Cubbison, No. LA CV-1703497 JAK (PLAx), 2017 WL
4769460, at *12 (C.D. Cal. July 3, 2017), is instructive. In Blindlight, the court
found that potential harm to a plaintiff’s business reputation was irreparable because
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plaintiff’s clients were “confused and concerned by the abrupt change” in plaintiff’s
service after the plaintiff and defendant subcontractor were unable to reach an
agreement. Id. at *12. This is precisely what occurred here in 2017 before u-blox
was forced to give up its rights and accept a non-FRAND license. See Murray Decl.
at ¶¶ 17 – 21 (explaining that u-blox’s clients expressed serious concerns and
confusion when InterDigital began communicating with them stating that u-blox
was not licensed by InterDigital). Here, as in Blindlight, InterDigital’s actions are
“likely to harm Plaintiff’s goodwill with both particular clients and in the general
marketplace.” Blindlight, 2017 WL 4769460, at *12. “Because the loss of goodwill
is not easily quantified, it supports a showing of irreparable harm.” Id.
2. The Harm to u-blox
While monetary harm generally will not support a request for injunctive
relief, it is well-settled that monetary harm can rise to the level of irreparable harm
when a monetary remedy would be inadequate, such as when there is a threat to the
very existence of a business. Regents of Univ. of California v. Am. Broad. Cos.,
Inc., 747 F.2d 511, 523 n.3 (9th Cir. 1984) (“threat to business’ existence” is an
exception to the rule that monetary damages do not constitute irreparable harm).
Here, InterDigital’s refusal to refrain from contacting u-blox customers in
order to put pressure on u-blox See Thiel
Decl. at ¶ 39
Thus, InterDigital’s conduct “support[s] a finding of irreparable harm.”
Signal Hill Serv., Inc. v. Macquarie Bank Ltd., No. CV 11-01539 MMM (JEMX),
2011 WL 13220305, at *18 (C.D. Cal. June 29, 2011) (“Courts within the Ninth
Circuit have also recognized that the ‘major disruption of a business’ or
‘termination’ thereof can constitute irreparable injury.”); see also Auntie Anne’s,
Inc. v. Wang, No. CV 14-01049 MMM (Ex), 2014 WL 11728722, at *9 (C.D. Cal.
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July 16, 2014); Mahroom v. Best Western Int’l., Inc., No. C 07–2351 JF (HRL),
2009 WL 248262, at *3 (N.D. Cal. Feb. 2, 2009).
Indeed, InterDigital’s wrongful interference has put u-blox’s business
. See Thiel Decl. at ¶ 19 (stating that if InterDigital is
permitted to contact u-blox’s customers stating that
; see also Baker Decl. at ¶ 32 (“InterDigital’s threats to u-blox’s customers
and downstream manufacturers ); Murray
Decl. at ¶ 29 (u-blox’s harm would be such that “u-blox would be unable to
recover”); id. at ¶ 30 (“if, under these circumstances, u-blox loses a design to a
competitor and/or u-blox’s customer finds another supplier and transfers its goodwill
to that supplier, it will be extremely difficult, if not impossible, to unwind that
relationship and get that customer to return to u-blox”).
Based on the foregoing, if a TRO is not granted prohibiting InterDigital from
contacting u-blox’s customers and downstream manufactures claiming that u-blox is
not licensed, u-blox will be irreparably harmed.
D. The Equities Weigh Heavily in u-blox’s Favor
The Court must also consider and “balance the competing claims of injury
and must consider the effect on each party of the granting or withholding of the
requested relief.” Extreme Reach v. Spotgenie Partners, No. CV 13-07563-DMG
(JCGx), 2013 WL 12081182, at *8 (C.D. Cal. Nov. 22, 2013). Here, the equities
strongly favor u-blox.
Here, on the one hand, u-blox is willing to enter into a license agreement with
InterDigital as long as the rate is FRAND. See Baker Decl. at ¶ 43. As such, and
because the parties are in disagreement as to what the FRAND rate is, u-blox
brought this action so that the Court may adjudicate the issue. Once the FRAND
rate is determined by this Court (subject, of course, to any potential appeals), u-blox
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will pay the FRAND rate to InterDigital, as the parties did in TCL Commc’ns Tech.
Holdings. See 2017 WL 6611635, at *5. u-blox will therefore ultimately have an
InterDigital license,
.
On the other hand, there is no legitimate reason why InterDigital would reach
out to u-blox’s customers or downstream manufacturers while this litigation is
pending. To the contrary, the only reason why InterDigital would interfere with u-
blox’s customers would be to apply wrongful pressure on and “hold-up” u-blox to
force it to accept a non-FRAND license. See Microsoft, 795 F.3d at 1046 (upholding
a jury verdict finding that Motorola breached its good faith and fair dealing
obligations when Motorola intended to induce hold-up, i.e., to pressure Microsoft
into accepting higher RAND rate than was objectively merited).
As explained above, if InterDigital is not enjoined pending the outcome of
this litigation and determination of a FRAND rate, u-blox is at risk of losing its
market goodwill, losing its key clients, suffering financial loss
In sharp contrast, InterDigital will not suffer any
injury if InterDigital is enjoined, because InterDigital will be paid the FRAND rate
once it is established by this Court. See, e.g., Realtek Semiconductor, Corp., No. C-
12-3451-RMW, 2014 WL 2738226, at *6 (N.D. Cal. June 3, 2014) (setting a
FRAND rate as part of final judgement). In sum, the equities strongly favor u-blox.
See, e.g., Huawei Techs., Co. v. Samsung Elecs. Co., No. 3:16-cv-02787-WHO,
2018 WL 1784065, at *10 (N.D. Cal. Apr. 13, 2018) (“the Shenzhen Order
interfere[s] with ‘equitable considerations’ by compromising the court’s ability to
reach a just result in the case before it free of external pressure on [Samsung] to
enter into a ‘holdup’ settlement before the litigation is complete.”).
E. A Preliminary Injunction is in the Public Interest
Finally, the public interest factor weighs heavily in favor of u-blox as well.
This factor requires the Court to consider “whether there exists some critical public
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interest that would be injured by the grant of preliminary relief.” Indep. Living Ctr.
of S. California, Inc. v. Maxwell-Jolly, 572 F.3d 644, 659 (9th Cir. 2009). “Where a
party demonstrates both the likelihood of success on the merits and irreparable
injury, ‘it almost always will be the case that the public interest will favor’ the
issuance of an injunction.” Jews For Jesus v. Brodsky, 993 F. Supp. 282,
312 (D.N.J. 1998).
Here, the public has an interest in seeing companies like InterDigital, that
own SEPs, comply with their obligations to offer licenses to alleged SEPs at fair
rates. See Broadcom Corp., 501 F.3d at 308–14 (explaining how industry standard-
setting can enhance consumer welfare by increasing competition, preventing patent
hold-up, and reducing costs); Certified Restoration Dry Cleaning Network v. Tenke
Corp., 511 F.3d 535, 551 (6th Cir. 2007) (granting injunction based on the “general
public interest in the enforcement of voluntarily assumed contract obligations”).
The public also has an interest to see technology companies and manufacturers
design and innovate products, but InterDigital’s interference with u-blox’s customer
relationships, and prospective customer relationships, will disrupt the supply chain.
The issuance of this injunction will thus allow u-blox to pursue a FRAND rate,
without the disruption of its relationships with customers and its business. It will
also prevent u-blox from being wrongfully pressured into an unfair and non-
FRAND license.
In sum, the public interest will be served by the injunctive relief and
therefore, u-blox’s request for relief should be granted.
IV. u-Blox Should Not Be Required To Post a Bond
For purposes of the security requirement under Federal Rule of Civil
Procedure 65(c), u-blox submits that, in light of the high likelihood that u-blox will
prevail in this action, the fact that the balance of equities sharply favors u-blox, and
because InterDigital’s interests will not be impacted if an injunction issues, u-blox
should not be required to post a security at all. See California v. Tahoe Reg’l
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Planning Agency, 766 F.2d 1319, 1326 (9th Cir. 1985) (“the likelihood of success
on the merits . . . tips in favor of a minimal bond or no bond”).
V. CONCLUSION
For the foregoing reasons, u-blox respectfully requests that a TRO issue and
an Order to Show Cause on why a Preliminary Injunction should not issue,
prohibiting InterDigital during the pendency of this action or until a FRAND rate is
otherwise determined from contacting u-blox’s customers and downstream
manufacturers, demanding royalty payments from them for products incorporating
u-blox technology, or otherwise disrupting or interfering with u-blox’s relationships
with its customers and downstream manufacturers.
Dated: January 1, 2019 SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
By
/s/ Stephen S. Korniczky STEPHEN S. KORNICZKY
MARTIN R. BADER
MATTHEW W. HOLDER
DANIEL L. BROWN
RYAN P. CUNNINGHAM
Attorneys for Plaintiffs