1:13-cv-00343•Plexus Corp. v. United States
Full text
6OLS2S20188
81,7('67$7(6&28572),17(51$7,21$/75$'(
3/(;86&253
3ODLQWLII
Y
81,7('67$7(6
'HIHQGDQW
%HIRUH7LPRWK\05HLI-XGJH
&RXUW1R
23,1,21
>*UDQWLQJGHIHQGDQW¶VPRWLRQWRGLVPLVVDVWRRQHHQWU\IRUODFNRIVXEMHFWPDWWHU
MXULVGLFWLRQGHQ\LQJSODLQWLII V5XOHPRWLRQIRUVXPPDU\MXGJPHQWDQGGHQ\LQJ
GHIHQGDQW V5XOHFURVVPRWLRQIRUVXPPDU\MXGJPHQWJUDQWLQJSDUWLDOVXPPDU\
MXGJPHQWRQWKHLVVXHVDGGUHVVHGEHORZDQGGLUHFWLQJWKHSDUWLHVWRVXEPLWZLWKLQ
GD\VRIWKHGDWHRIWKLVRSLQLRQDSURSRVHGVFKHGXOLQJRUGHUWKDWLQFOXGHV DGDWHIRU
VXEPLVVLRQRIWKHRUGHUJRYHUQLQJSUHSDUDWLRQIRUWULDO DGDWHIRUWKHVXEPLVVLRQRI
WKHSUHWULDORUGHU DGDWHIRUWKHSUHWULDOFRQIHUHQFHDQG DSURSRVHGWULDOGDWHRQ
RUEHIRUH0DUFKRQWKHLVVXHRIWKHSULQFLSDOXVHRIWKHVXEMHFWPHUFKDQGLVH@
'DWHG
0\URQ3%DUORZ%DUORZ &RPSDQ\//&RI:DVKLQJWRQ'&DUJXHGIRU
SODLQWLII3OH[XV&RUS
%HYHUO\$)DUUHOO7ULDO$WWRUQH\&LYLO'LYLVLRQ&RPPHUFLDO/LWLJDWLRQ%UDQFK
86'HSDUWPHQWRI-XVWLFHRI1HZ<RUN1<DUJXHGIRUGHIHQGDQW8QLWHG6WDWHV:LWK
KHURQWKHEULHIZHUH-RVHSK++XQW$VVLVWDQW$WWRUQH\*HQHUDO-HDQQH('DYLGVRQ
'LUHFWRU&RPPHUFLDO/LWLJDWLRQ%UDQFKDQG2IILFHVRI)RUHLJQ/LWLJDWLRQDQG
,QWHUQDWLRQDO/HJDO$VVLVWDQFHDQG-XVWLQ50LOOHU$WWRUQH\LQ&KDUJH,QWHUQDWLRQDO
7UDGH)LHOG2IILFH2I&RXQVHOZDV0LFKDHO:+H\GULFK2IILFHRIWKH$VVLVWDQW&KLHI
&RXQVHO,QWHUQDWLRQDO7UDGH/LWLJDWLRQ8QLWHG6WDWHV&XVWRPVDQG%RUGHU3URWHFWLRQ
December 22, 2020
Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 1 of 525HLI-XGJH$WLVVXHLQWKLVFDVHLVWKHFRUUHFWFODVVLILFDWLRQRISULQWHGFLUFXLW ERDUGDVVHPEOLHV ³3&%$V´ DQGFKDVVLVLPSRUWHGLQWRWKH8QLWHG6WDWHVE\SODLQWLII 3OH[XV&RUS ³3OH[XV´RU³SODLQWLII´ %HIRUHWKHFRXUWDUHFURVVPRWLRQVIRUVXPPDU\ MXGJPHQWDQGGHIHQGDQW¶VPRWLRQWRGLVPLVVDVWRRQHHQWU\IRUODFNRIVXEMHFWPDWWHU MXULVGLFWLRQSee3O¶V0RWIRU6XPP-(&)1R ³3O%U´ 'HI¶V&URVV0RWIRU 6XPP-DQG0RWWR'LVV(&)1R ³'HI%U´ see also3O¶V5HSO\ 5HVSWR 'HI&URVV0RWIRU6XPP- 5HVS&RQVHQWWR'HI¶V0RWWR'LVV(&)1R ³3O 5HS%U´ 'HI¶V5HSO\LQ6XSSRI&URVV0RWIRU6XPP-(&)1R ³'HI5HS %U´ 3ODLQWLIIFKDOOHQJHVDGHFLVLRQE\8QLWHG6WDWHV&XVWRPVDQG%RUGHU3URWHFWLRQ ³&XVWRPV´RU³GHIHQGDQW´ WRFODVVLI\WKH3&%$VDQGFKDVVLVXQGHUVXEKHDGLQJV DQGUHVSHFWLYHO\RIWKH+DUPRQL]HG7DULII6FKHGXOHRIWKH 8QLWHG6WDWHV ³+7686´ 6XEKHDGLQJFRYHUV³3DUWVVXLWDEOHIRUXVHVROHO\ RUSULQFLSDOO\ZLWKWKHDSSDUDWXVRIKHDGLQJVWR2WKHU3ULQWHG&LUFXLW DVVHPEOLHV2IWHOHYLVLRQDSSDUDWXV2WKHU2WKHU´DQGFDUULHVDad valorem GXW\ 6XEKHDGLQJFRYHUV³3DUWVVXLWDEOHIRUXVHVROHO\RUSULQFLSDOO\ZLWKWKH DSSDUDWXVRIKHDGLQJVWR2WKHU2WKHUSDUWVRIDUWLFOHVRIKHDGLQJV DQG2IWHOHYLVLRQDSSDUDWXV2WKHU´DQGFDUULHVDad valorem GXW\,Q UHDFKLQJWKLVFODVVLILFDWLRQ&XVWRPVILUVWGHWHUPLQHGWKDWWKHVXEMHFWPHUFKDQGLVHLV XVHGDVFRQVWLWXHQWSDUWVLQWKHILQLVKHGPHUFKDQGLVHGHVFULEHGLQ+HDGLQJZKLFK$OOFLWDWLRQVWRWKH+7686LQFOXGLQJ&KDSWHU1RWHVDQG*HQHUDO1RWHVDUHWRWKH HGLWLRQDVWKHUHOHYDQW+7686SURYLVLRQVUHPDLQHGLGHQWLFDOIURPWR GXULQJZKLFKWLPH3OH[XVHQWHUHGWKHVXEMHFWPHUFKDQGLVH Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 2 of 52
LQFOXGHV³WUDQVPLVVLRQDSSDUDWXVIRUUDGLREURDGFDVWLQJRUWHOHYLVLRQ´See &XVWRPV¶ +HDGTXDUWHUV5XOLQJ/HWWHU ³+4´ + -XQ 'HI([ DW 3ODLQWLIIDUJXHVWKDWWKHFRUUHFWFODVVLILFDWLRQRIWKHSURGXFWVLVXQGHUVXEKHDGLQJ ZKLFKFRYHUV³7HOHSKRQHVHWVLQFOXGLQJWHOHSKRQHVIRUFHOOXODUQHWZRUNVRU IRURWKHUZLUHOHVVQHWZRUNVRWKHUDSSDUDWXVIRUWKHWUDQVPLVVLRQRUUHFHSWLRQRIYRLFH LPDJHVRURWKHUGDWDLQFOXGLQJDSSDUDWXVIRUFRPPXQLFDWLRQLQDZLUHGRUZLUHOHVV QHWZRUN VXFKDVDORFDORUZLGHDUHDQHWZRUN RWKHUWKDQWUDQVPLVVLRQRUUHFHSWLRQ DSSDUDWXVRIKHDGLQJRUSDUWVWKHUHRI3DUWV´DQGLVGXW\IUHH 7KHTXHVWLRQSUHVHQWHGLVZKHWKHUWKHLPSRUWHGLWHPVDUH³>S@DUWV´XQGHU +HDGLQJ³VXLWDEOHIRUXVHVROHO\RUSULQFLSDOO\ZLWK´³>W@UDQVPLVVLRQ DSSDUDWXVIRUUDGLREURDGFDVWLQJRUWHOHYLVLRQ´XQGHU+HDGLQJRUSDUWVIRU ³RWKHUDSSDUDWXVIRUWKHWUDQVPLVVLRQRIYRLFHLPDJHVRURWKHUGDWD´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ase 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 3 of 52
'HIHQGDQWDOVRPRYHVWRGLVPLVVDOOFODLPVUHODWLQJWR(QWU\1R836 DOOHJLQJWKDWWKHFODLPVDUHEDVHGRQDQXQWLPHO\DQGWKHUHIRUHLQYDOLGSURWHVW)RU WKHUHDVRQVVHWRXWEHORZWKHFRXUWJUDQWVGHIHQGDQW¶VPRWLRQWRGLVPLVVDVWR(QWU
1R836 %$&.5281' ,7KH,PSRUWHG0HUFKDQGLVH 86&,75XOH D UHTXLUHVWKDWWKHFRXUWJUDQWVXPPDU\MXGJPHQWLIDPRYLQJ SDUW\FDQVKRZWKDW³WKHUHLVQRJHQXLQHGLVSXWHDVWRDQ\PDWHULDOIDFWDQGWKHPRYDQW LVHQWLWOHGWRMXGJPHQWDVDPDWWHURIODZ´0RYDQWVVKRXOGSUHVHQWPDWHULDOIDFWVDV VKRUWDQGFRQFLVHVWDWHPHQWVLQQXPEHUHGSDUDJUDSKVDQGFLWHWR³SDUWLFXODUSDUWVRI PDWHULDOVLQWKHUHFRUG´DVVXSSRUW86&,75XOH F $ 7KHRSSRQHQWPXVWLQ UHVSRQVH³LQFOXGHFRUUHVSRQGLQJO\QXPEHUHGSDUDJUDSKVUHVSRQGLQJWRWKHQXPEHUHG SDUDJUDSKVLQWKHVWDWHPHQWRIWKHPRYDQW´86&,75XOH E 7KHSDUWLHVVXEPLWWHGVHSDUDWHVWDWHPHQWVRIIDFWVZLWKWKHLUUHVSHFWLYHVXPPDU
MXGJPHQWPRWLRQVSee generally 3O¶V6WDWHPHQWRI0DWHULDO)DFWVDVWR:KLFK7KHUH $UH1RHQXLQH,VVXHVWREH7ULHG(&)1R ³3O6WPW)DFWV´ 'HI¶V6WDWHPHQW RI0DWHULDO)DFWVDVWR:KLFK7KHUH$UH1R*HQXLQH,VVXHVWREH7ULHG(&)1R ³'HI6WPW)DFWV´ 7KHPDMRULW\RIWKHUHVSRQVHVWRSODLQWLII¶VDQGGHIHQGDQW¶V VWDWHPHQWVUHVSHFWLYHO\ZHUHDGPLVVLRQVEXWPDQ\UHVSRQVHVLQFOXGHGDGGLWLRQDO FODLPVSee generally 'HI¶V5HVSRQVHWR3O¶V6WDWHPHQWRI0DWHULDO)DFWV(&)1R ³'HI5HVS3O6WPW)DFWV´ 3O¶V5HVSRQVHWR'HI¶V6WDWHPHQWRI0DWHULDO)DFWV (&)1R ³3O5HVS'HI6WPW)DFWV´ 8SRQWKHFRXUW¶VUHYLHZRIWKHSDUWLHV¶ UHVSHFWLYHVWDWHPHQWVRIIDFWVDQGVXSSRUWLQJGRFXPHQWVWKHFRXUWGHWHUPLQHVWKDWWKH Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 4 of 52
IROORZLQJPDWHULDOIDFWVUHJDUGLQJWKHVXEMHFWPHUFKDQGLVHDQGWKH+DUPRQLF(05VDUH XQGLVSXWHG )URPWRSODLQWLIILPSRUWHGWKHVXEMHFWPHUFKDQGLVHLQWRWKH8QLWHG 6WDWHVWKURXJKSRUWVLQ&DOLIRUQLD:DVKLQJWRQ2KLRDQG.HQWXFN\3O%UDW'HI%U DW7KHUHZHUHHQWULHVFRYHUHGE\SURWHVWV'HI%UDW7KHVXEMHFW DUWLFOHVDUHSULQWHGFLUFXLWERDUGDVVHPEOLHV 3&%$V DQGFKDVVLVXVHGLQHQFRGHUV PXOWLSOH[HUVDQGUHPXOWLSOH[HUVGHVLJQHGDQGPDUNHWHGE\+DUPRQLF,QF ³+DUPRQLF (05V´ -RLQW6WPW)DFWV+DUPRQLF,QF ³+DUPRQLF´ DQG3OH[XV HQWHUHGLQWRDFRQWUDFWXQGHUZKLFK3OH[XVPDQXIDFWXUHGSURGXFWVGHVLJQHGDQG PDUNHWHGE\+DUPRQLFId.%DVHGRQ6HFWLRQ;9,1RWH E RIWKH+7686 GLVFXVVHGinfraSURSHUFODVVLILFDWLRQRIWKH3&%$VDQGFKDVVLVGHSHQGVRQWKH FODVVLILFDWLRQRIWKHPDFKLQHVZLWKZKLFKWKH\DUHXVHG 7KHVXEMHFW3&%$VDQGFKDVVLVDUHXVHGLQ+DUPRQLF(05VWKDWDUHLGHQWLILHG E\WKHIROORZLQJPRGHOQDPHVDQGQXPEHUV$XGLR(QFRGHU HQFRGHU 'LYL&RP(OHFWUD HQFRGHU 'LYL&RP(OHFWUD HQFRGHU 'LYL&RP(OHFWUD HQFRGHU 'LYL&RP(OHFWUD HQFRGHU 'LYL&RP(OHFWUD HQFRGHU 'LYL&RP,RQ HQFRGHU 3UR6WUHDP PXOWLSOH[HU 3UR6WUHDPZLWK$&( UHPXOWLSOH[HU Id. 7KHIXQFWLRQRIHQFRGHUVLVWRFRPSUHVVDXGLRDQGYLGHRGLJLWDOGDWDUHSUHVHQWLQJ LPDJHVDQGVRXQGLQFOXGLQJYRLFHId.(QFRGHUVDUHXVHGVRWKDWWKHGDWDWKDW DUHFRPSUHVVHGE\WKHHQFRGHURFFXS\OHVVVSDFHLQVWRUDJHDQGOHVVEDQGZLGWK GXULQJWUDQVPLVVLRQId.7KHGDWDRXWSXWIURPWKH+DUPRQLFHQFRGHUVJRHVWR VZLWFKHVDQGURXWHUVDQGRUWRPXOWLSOH[HUVId.0XOWLSOH[HUVWDNHRXWSXWGDWD IURPPXOWLSOHHQFRGHUVDQGFRPELQHWKHPLQWRDVLQJOHVWUHDPVRWKDWPRUHGDWDFDQEH Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 5 of 52
WUDQVPLWWHGZLWKWKHDYDLODEOHEDQGZLGWKId.5HPXOWLSOH[HUVIXOILOODQLGHQWLFDO SXUSRVHIRUGDWDIURPPXOWLSOHPXOWLSOH[HUVId. +DUPRQLF(05VDUHQRWQHFHVVDU\IRUWKHWUDQVPLVVLRQRIDGDWDVLJQDO3O 6WPW)DFWV'HI5HVS3O6WPW)DFWV+RZHYHU+DUPRQLFFXVWRPHUVFRXOG QRWSURYLGHGDWDVLJQDOVLQDFRVWHIIHFWLYHPDQQHUZLWKRXWWKHXVHRI+DUPRQLF(05V 7UDQVFULSWRI2UDO$UJXPHQW ³7U2UDO$UJ´ DW7KH+DUPRQLF(05VGRQRW WKHPVHOYHVVHQGVLJQDOVWRUHFHSWLRQGHYLFHVIRUOLVWHQLQJDQGYLHZLQJE\SHRSOH KRZHYHUWKH\DUHXVHGLQWKHQHWZRUNVWKDWVHQGVLJQDOVRXWWRYLHZLQJGHYLFHVIRU OLVWHQLQJDQGYLHZLQJ3O6WPW)DFWV'HI5HVS3O6WPW)DFWV$ ',&7,21$5<2)&20387(5 6&,(1&( WKHG GHILQHV³QHWZRUN´DVD³V\VWHPWKDW FRQVLVWVRIWHUPLQDOVQRGHVDQGLQWHUFRQQHFWLRQPHGLDWKDWFDQLQFOXGHOLQHVRUWUXQNV VDWHOOLWHVPLFURZDYHPHGLXPDQGORQJZDYHUDGLRHWF,QJHQHUDODQHWZRUNLVD FROOHFWLRQRIUHVRXUFHVXVHGWRHVWDEOLVKDQGVZLWFKFRPPXQLFDWLRQSDWKVEHWZHHQLWV WHUPLQDOV´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ase 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 6 of 52
7KHFRPSUHVVLRQWKDW+DUPRQLF(05VSHUIRUPLV³>S@ULPDULO\DERXWUHGXFLQJWKH EDQGZLGWKRIYLGHRWKHDPRXQWRIVSDFHLWZRXOGRFFXS\RQDVWRUDJHGHYLFHRUWKH DPRXQWRIEDQGZLGWKLWZRXOGRFFXS\DVWKHYLGHRLVWUDQVPLWWHGIRUD79VHUYLFH´ 'HI6WPW)DFWV FLWLQJ'HI([ 'HSRVLWLRQRI(ULF$UPVWURQJ ³$UPVWURQJ 'HS´ DW 3ODLQWLIIQRWHVWKDWWKHGDWDFRPSUHVVLRQIXQFWLRQRI+DUPRQLF(05VPD\ EHXVHGDOVRLQWKHWUDQVPLVVLRQRIGDWDIRUQRQWHOHYLVLRQDQGQRQUDGLRFRQWHQW3O 5HVS'HI6WPW)DFWV +DUPRQLF(05VDUHQRWQHFHVVDU\IRUWKHWUDQVPLVVLRQRIDGDWDVLJQDO3O6WPW )DFWVEXW³SHUPLWWKHGHOLYHU\RIWKHEHVWSRVVLEOHTXDOLW\IRUWKHPLQLPDO EDQGZLGWKWKHUHE\VDYLQJPRQH\DQGUHGXFLQJH[SHQVHVLQSURYLGLQJFKDQQHOVIRU YLHZLQJ´'HI5HVS3O6WPW)DFWV)RUWKLVUHDVRQSXUFKDVHUVRI+DUPRQLF (05VZRXOGQRWSURYLGHGDWDVLJQDOVZLWKRXWWKHP7U2UDO$UJ DW +DUPRQLF(05VGRQRWDFWXDOO\WUDQVPLWWKHVLJQDOWRWKHILQDOUHFHLYLQJGHYLFH VXFKDVDWHOHYLVLRQ WKH\DUHSDUWRIWKHFKDLQRIHTXLSPHQWWKDWDOORZVIRU WUDQVPLVVLRQRIWKHVLJQDO3O6WPW)DFWV'HI5HVS3O6WPW)DFWV ,, 6XEMHFW0DWWHU-XULVGLFWLRQ 7KLV&RXUWKDVMXULVGLFWLRQXQGHU86& D ZKLFKSURYLGHVWKDW ³>W@KH&RXUWRI,QWHUQDWLRQDO7UDGHVKDOOKDYHH[FOXVLYHMXULVGLFWLRQRIDQ\FLYLODFWLRQ FRPPHQFHGWRFRQWHVWWKHGHQLDORIDSURWHVWLQZKROHRULQSDUWXQGHU86& ´7KH&RXUW¶VGHWHUPLQDWLRQRIVXEMHFWPDWWHUMXULVGLFWLRQLVDWKUHVKROGLQTXLU\ Steel Co. v. Citizens For A Better Environment86 . ³,WLV IXQGDPHQWDOWKDWWKHH[LVWHQFHRIDMXULVGLFWLRQDOSUHGLFDWHLVDWKUHVKROGLQTXLU\LQ ZKLFKSODLQWLIIEHDUVWKHEXUGHQRISURRI´ CR Industries v. United States&,7 Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 7 of 52
³:KHQDIHGHUDOFRXUWFRQFOXGHVWKDWLWODFNVVXEMHFWPDWWHUMXULVGLFWLRQWKH FRXUWPXVWGLVPLVVWKH>FODLP@LQLWVHQWLUHW\´Arbaugh v. Y & H Corp.863OH[XVEURXJKWWKLVWKLVDFWLRQRQ2FWREHUE\ILOLQJDFRPSODLQWWKDW FRYHUHGHQWULHV3OH[XVFODLPVWKDWWKHFRXUWKDVMXULVGLFWLRQRYHUWKLVDFWLRQ SXUVXDQWWR86& D &RPSO(&)1R8QGHUVHFWLRQ D WKLV &RXUWKDV³H[FOXVLYHMXULVGLFWLRQRIDQ\FLYLODFWLRQFRPPHQFHGWRFRQWHVWWKHGHQLDORID SURWHVWLQZKROHRULQSDUW´SXUVXDQWWR86&6HFWLRQUHTXLUHVDQ DJJULHYHGSDUW\WRILOHDSURWHVWXQGHU86& 3XUVXDQWWR86& D DQG F FHUWDLQGHFLVLRQVRI&XVWRPV EHFRPHILQDODQGFRQFOXVLYHDVWRDOOSHUVRQVXQOHVVDSURWHVWLVILOHGZLWKLQGD\V DIWHUWKHGDWHRIOLTXLGDWLRQ³7KHFRXUWODFNVMXULVGLFWLRQRYHUSURWHVWVWKDWGRQRWVDWLVI
WKHUHTXLUHPHQWVRI86& F DQG&)5 D ´Koike Aronson, Inc. v. United States)G )HG&LU 7KHUHIRUHDSUHUHTXLVLWHWR WKLV&RXUW¶VMXULVGLFWLRQLVDWLPHO\ILOHGSURWHVW²VSHFLILFDOO\RQHILOHGZLWKLQGD\V RIOLTXLGDWLRQ 'HIHQGDQWREMHFWVWRWKHFRXUW¶VVXEMHFWPDWWHUMXULVGLFWLRQRYHU(QWU\1R836 EHFDXVHWKHSURWHVWFRYHULQJWKLVHQWU\ZDVILOHGPRUHWKDQGD\VDIWHU OLTXLGDWLRQSee 'HI0RWWR'LVPLVV(&)1R7KHHQWU\ZDVOLTXLGDWHGRQ0DUFK KRZHYHUWKHSURWHVWFRYHULQJWKLVHQWU\ZDVILOHGRQ6HSWHPEHU GD\VODWHUSee 'HI([ 3URWHVW1R $YDOLGSURWHVWZDVQRW Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 8 of 52
WLPHO\ILOHGIRUWKLVHQWU\VRWKHFRXUWODFNVVXEMHFWPDWWHUMXULVGLFWLRQIRUWKHHQWU\ 7KHUHIRUHSODLQWLII¶VFODLPDVWRWKLVHQWU\LVGLVPLVVHG 7KHSURWHVWVIRUWKHRWKHUHQWULHVZHUHWLPHO\ILOHGDQGWKHWLPHOLQHVVRI WKRVHHQWULHVKDVQRWEHHQGLVSXWHGE\GHIHQGDQW'HI%UDW 67$1'$5'2)5(9,(: 7KHFRXUWZLOOJUDQWVXPPDU\MXGJPHQWLI³WKHPRYDQWVKRZVWKDWWKHUHLVQR JHQXLQHGLVSXWHDVWRDQ\PDWHULDOIDFWDQGWKHPRYDQWLVHQWLWOHGWRMXGJPHQWDVD PDWWHURIODZ´86&,75XOH D see also Anderson v. Liberty Lobby, Inc.86 ,QFRQVLGHULQJZKHWKHUPDWHULDOIDFWVDUHLQGLVSXWHWKHFRXUWPXVW FRQVLGHUHYLGHQFHLQWKHOLJKWPRVWIDYRUDEOHWRWKHQRQPRYLQJSDUW\GUDZLQJDOO UHDVRQDEOHLQIHUHQFHVLQLWVIDYRUSee Adickes v. S.H. Kress & Co.86 Anderson86DWQ:KHQDVKHUHFURVVPRWLRQVIRUVXPPDU\ MXGJPHQWDUHEHIRUHWKHFRXUW³HDFKSDUW\FDUULHVWKHEXUGHQRQLWVRZQPRWLRQWRVKRZ HQWLWOHPHQWWRMXGJPHQWDVDPDWWHURIODZDIWHUGHPRQVWUDWLQJWKHDEVHQFHRIDQ\ JHQXLQHGLVSXWHVRYHUPDWHULDOIDFWV´Am. Fiber & Finishing, Inc. v. United States &,7BBBBBB)6XSSG TXRWLQJMassey v. Del Labs. )G )HG&LU ³$JHQXLQHIDFWXDOGLVSXWHLVRQHSRWHQWLDOO\ DIIHFWLQJWKHRXWFRPHXQGHUWKHJRYHUQLQJODZ´Anderson86DW ³7KHFRXUWPD\QRWUHVROYHRUWU\IDFWXDOLVVXHVRQDPRWLRQIRUVXPPDU\ MXGJPHQW´Phone-Mate, Inc. v. United States&,7)6XSS ,QSODLQWLII V5HSO\%ULHISODLQWLIIFRQVHQWVWRGHIHQGDQW VPRWLRQWRGLVPLVVWKLVHQWU\ 3O5HS%UDW ³3ODLQWLIIDJUHHVWKDWHQWU\QXPEHU836VKRXOGEH GLVPLVVHGIRUODFNRIMXULVGLFWLRQEHFDXVHLWZDVSURWHVWHGPRUHWKDQGD\VDIWHU OLTXLGDWLRQ´ Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 9 of 52
FLWDWLRQRPLWWHG aff'd)G )HG&LU )XUWKHU³VXPPDU
MXGJPHQWLQDFODVVLILFDWLRQFDVHLVDSSURSULDWHRQO\LIμWKHPDWHULDOIDFWVRIZKDWWKH PHUFKDQGLVHLVDQGZKDWLWGRHVDUHQRWDWLVVXH¶´Roche Vitamins, Inc. v. United States&,7)6XSSG FLWLQJDiachem Indus. Ltd. v. United States&,7 7KH&RXUWUHYLHZVFODVVLILFDWLRQFDVHVde novosee 86& D DQG RQ³WKHEDVLVRIWKHUHFRUGPDGHEHIRUHWKHFRXUW´Id. D ³7KHSODLQWLIIKDVWKHEXUGHQRIHVWDEOLVKLQJWKDWWKHJRYHUQPHQW VFODVVLILFDWLRQ RIWKHVXEMHFWPHUFKDQGLVHZDVLQFRUUHFW´Lerner New York, Inc. v. United States &,7)6XSSG ³>3ODLQWLII@GRHVQRWEHDUWKH EXUGHQRIHVWDEOLVKLQJWKHFRUUHFWFODVVLILFDWLRQLQVWHDGLWLVWKHFRXUW VLQGHSHQGHQW GXW\WRDUULYHDWμWKHFRUUHFWUHVXOW¶´Id FLWDWLRQVRPLWWHG ³7KHXOWLPDWHTXHVWLRQLQDFODVVLILFDWLRQFDVHLVZKHWKHUWKHPHUFKDQGLVHLV SURSHUO\FODVVLILHGXQGHURQHRUDQRWKHUFODVVLILFDWLRQKHDGLQJ´ZKLFKLV³DTXHVWLRQRI ODZ´Bausch & Lomb v. United States)G )HG&LU (YHU
QHZHQWU\RIJRRGVLQWRWKH8QLWHG6WDWHVFRQVWLWXWHVDQHZFDXVHRIDFWLRQEHFDXVH HYHU\FODVVLILFDWLRQLQYROYHVERWKWKHLQWHUSUHWDWLRQRIWKHUHOHYDQWVWDWXWHDVZHOODV TXHVWLRQVRIIDFWUHJDUGLQJWKHPHUFKDQGLVHUnited States v. Mercantil Distribuidora S.A.&&3$&$'
0HUFKDQGLVHLVWREHFODVVLILHGEDVHGRQWKHFRQGLWLRQLQZKLFKLWLVLPSRUWHG See Mita Copystar Am. v. United States)G )HG&LU $WZR VWHSSURFHVVJXLGHVWKHFRXUWLQGHWHUPLQLQJWKHSURSHUFODVVLILFDWLRQRIPHUFKDQGLVH Sports Graphics, Inc. v. United States)G )HG&LU )LUVWWKH Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 10 of 52
FRXUWPXVW³DVFHUWDLQ>@WKHSURSHUPHDQLQJRIVSHFLILFWHUPVZLWKLQWKHWDULIISURYLVLRQ´ BenQ America Corp. v. United States)G )HG&LU 7KLVLVD TXHVWLRQRIODZ6HFRQGWKHFRXUWPXVWGHWHUPLQH³ZKHWKHUWKHPHUFKDQGLVHDWLVVXH FRPHVZLWKLQWKHGHVFULSWLRQRIVXFKWHUPVDVSURSHUO\FRQVWUXHG´Id.7KLVLVD TXHVWLRQRIIDFW³>:@KHQWKHUHLVQRGLVSXWHDVWRWKHQDWXUHRIWKHPHUFKDQGLVHWKHQ WKHWZRVWHSFODVVLILFDWLRQDQDO\VLVμFROODSVHVHQWLUHO\LQWRDTXHVWLRQRIODZ¶´Link Snacks, Inc. v. United States)G± )HG&LU TXRWLQJCummins Inc. v. United States)G )HG&LU ,QWKLVFDVHWKHUHDUH PDWHULDOIDFWVLQGLVSXWHVXFKWKDWVXPPDU\MXGJPHQWLVQRWDSSURSULDWHSeeBausch & Lomb)GDW KROGLQJVXPPDU\MXGJPHQWLVSURSHURQO\ZKHQWKHUHLVQR JHQXLQHGLVSXWHDVWRWKHXQGHUO\LQJIDFWXDOLVVXHRIH[DFWO\ZKDWWKHPHUFKDQGLVHLV Cf. Jedwards Int'l, Inc. v. United States&,7BBBBBB)6XSSG 7KLVLVVXFKDFDVHDQGVXPPDU\MXGJPHQWLVDSSURSULDWH /(*$/)5$0(:25. 7KH+7686LVFRGLILHGDW86&DQGKDVWKHIRUFHRIVWDWXWRU\ODZ Aves. In Leather, Inc. v. United States)G )HG&LU 7KH *HQHUDO5XOHVRI,QWHUSUHWDWLRQ ³*5,V´ RIWKH+7686JRYHUQWKHSURSHUFODVVLILFDWLRQ RIPHUFKDQGLVHHQWHULQJWKH8QLWHG6WDWHV7KH*5,V³DUHDSSOLHGLQQXPHULFDORUGHU´ ABB, Inc. v. United States)G )HG&LU 7KH*5,VFRQVLVWRI VL[UXOHVEXW³LIDQHDUOLHUUXOHUHVROYHVWKHFODVVLILFDWLRQTXHVWLRQWKHFRXUWGRHVQRW ORRNWRVXEVHTXHQWUXOHV´CamelBak Prods., LLC v. United States)G )HG&LU Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 11 of 52
³7KH+7686LVGHVLJQHGVRWKDWPRVWFODVVLILFDWLRQTXHVWLRQVFDQEHDQVZHUHG E*5,´Telebrands Corp. v. United States&,7)6XSSG aff'd )HG$SS[ )HG&LU *5,VWDWHVWKDW ³FODVVLILFDWLRQVKDOOEHGHWHUPLQHGDFFRUGLQJWRWKHWHUPVRIWKHKHDGLQJVDQGDQ
UHODWLYH6HFWLRQRU&KDSWHU1RWHV´5,7KHUHIRUH³DFRXUWILUVWFRQVWUXHVWKH ODQJXDJHRIWKHKHDGLQJDQGDQ\VHFWLRQRUFKDSWHUQRWHVLQTXHVWLRQ´Orlando Food Corp. v. United States)G )HG&LU 3XUVXDQWWR5, SURSHUFODVVLILFDWLRQRIWKHVXEMHFWPHUFKDQGLVHLVLQWKHKHDGLQJWKDWGHVFULEHVWKH SURGXFWDWLVVXHFRPSOHWHO\DQGVSHFLILFDOO
$EVHQWFRQWUDU\OHJLVODWLYHLQWHQW+7686WHUPVDUHFRQVWUXHGDFFRUGLQJWRWKHLU FRPPRQDQGFRPPHUFLDOPHDQLQJVLen–Ron Mfg. Co. v. United States)G )HG&LU :KHQLQWHUSUHWLQJDWDULIIWHUPWKHFRXUWPD\UHO\RQLWV RZQXQGHUVWDQGLQJRIWKHWHUPDQGRQVHFRQGDU\VRXUFHVVXFKDVVFLHQWLILFDXWKRULWLHV DQGGLFWLRQDULHVNorth Am. Processing Co. v. United States)G )HG &LU FLWLQJCarl Zeiss, Inc. v. United States, )G )HG&LU)RUDGGLWLRQDOGLUHFWLRQRQWKHVFRSHDQGPHDQLQJRIWDULIIKHDGLQJVDQGFKDSWHU DQGVHFWLRQQRWHVWKHFRXUWPD\DOVRFRQVXOWWKH([SODQDWRU\1RWHVWRWKH+DUPRQL]HG &RPPRGLW'HVFULSWLRQDQG&RGLQJ6\VWHP ³(1V´ GHYHORSHGE\WKH:RUOG&XVWRPV 2UJDQL]DWLRQ :&2 (1VDUHQRWOHJDOO\ELQGLQJRQWKHFRXUWEXWPD\EHFRQVXOWHGIRU JXLGDQFHDQGDUHJHQHUDOO\LQGLFDWLYHRIWKHSURSHULQWHUSUHWDWLRQRIDWDULIISURYLVLRQ Degussa Corp. v. United States, )G )HG&LU FLWLQJMotorola, Inc. v. United States)G )HG&LU +RZHYHU³WKH([SODQDWRU
Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 12 of 52
1RWHVDUHSHUVXDVLYHDXWKRULW\IRUWKHFRXUWZKHQWKH\VSHFLILFDOO\LQFOXGHRUH[FOXGHDQ LWHPIURPDWDULIIKHDGLQJ´H.I.M./Fathom Inc. v. United States&,7) 6XSS see also BASF Corp. v. United States&,7) 6XSSG aff’d)G )HG&LU 6LPLODUO\RSLQLRQVSXEOLVKHGE\WKH:&2PD\DOVRSURYLGHJXLGDQFH$:&2 RSLQLRQLVQRWELQGLQJDQGLVHQWLWOHGDWPRVWWR³UHVSHFWIXOFRQVLGHUDWLRQ´Cummins )GDW,WLVQRWDSUR[\IRULQGHSHQGHQWDQDO\VLVId ',6&866,21
,&RPSHWLQJ7DULII3URYLVLRQV
7KH+7686GRHVQRWSURYLGHDVSHFLILFFODVVLILFDWLRQIRUWKHVXEMHFWPHUFKDQGLVH viz3&%$VDQGFKDVVLVLPSRUWHGE\3OH[XV3O%UDW$VVWDWHGE\GHIHQGDQW EDVHGRQ6HFWLRQ;9,1RWH E RIWKH+7686³WKHSURSHUFODVVLILFDWLRQRIWKH3&%$V DQGFKDVVLVKLQJHVRQWKHFODVVLILFDWLRQRIWKHHQFRGHUVPXOWLSOH[HUVDQG UHPXOWLSOH[HUVZLWKZKLFKWKH\DUHXVHG´'HI%UDW 6HFWLRQ;9,1RWH E SURYLGHV 6XEMHFWWRQRWHWRWKLVVHFWLRQQRWHWRFKDSWHUDQGWRQRWHWRFKDSWHU SDUWVRIPDFKLQHV QRWEHLQJSDUWVRIWKHDUWLFOHVRIKHDGLQJ>VLF@ RU DUHWREHFODVVLILHGDFFRUGLQJWRWKHIROORZLQJUXOHV « E 2WKHUSDUWVLIVXLWDEOHIRUXVHVROHO\RUSULQFLSDOO\ZLWKDSDUWLFXODUNLQGRI PDFKLQHRUZLWKDQXPEHURIPDFKLQHVRIWKHVDPHKHDGLQJ LQFOXGLQJD PDFKLQHRIKHDGLQJRU DUHWREHFODVVLILHGZLWKWKHPDFKLQHVRIWKDW NLQGRULQKHDGLQJ>VLF@RU DVDSSURSULDWH+RZHYHUSDUWVZKLFKDUHequally VXLWDEOHIRUXVHSULQFLSDOO\ZLWK WKHJRRGVRIKHDGLQJVDQGWRDUHWREHFODVVLILHGLQKHDGLQJ
Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 13 of 52
(PSKDVLVVXSSOLHG 7KHWDULIISURYLVLRQVDWLVVXHDUH+HDGLQJVDQG7KH ODWWHUILUVWUHTXLUHVFODVVLILFDWLRQDVFRQVWLWXHQWSDUWVIRUXVHVROHO\RUSULQFLSDOO\ZLWKWKH DSSDUDWXVGHVFULEHGLQ+HDGLQJ +HDGLQJSURYLGHVLQUHOHYDQWSDUW 7HOHSKRQH VHWV LQFOXGLQJ WHOHSKRQHV IRU FHOOXODU QHWZRUNV RU IRU RWKHUZLUHOHVVQHWZRUNVRWKHUDSSDUDWXVIRUWKHWUDQVPLVVLRQRU UHFHSWLRQ RI YRLFH LPDJHV RU RWKHU GDWD LQFOXGLQJ DSSDUDWXV IRU FRPPXQLFDWLRQ LQ D ZLUHG RU ZLUHOHVV QHWZRUN VXFK DV D ORFDORUZLGHDUHDQHWZRUN other than transmission or reception apparatus of heading8525RUSDUWVWKHUHRI 7HOHSKRQH VHWV LQFOXGLQJ WHOHSKRQHV IRU FHOOXODU QHWZRUNV RU IRU RWKHUZLUHOHVVQHWZRUNV 3DUWV (PSKDVLVVXSSOLHG +HDGLQJVDQGLQWXUQSURYLGHLQUHOHYDQWSDUWV 7UDQVPLVVLRQDSSDUDWXVIRUUDGLREURDGFDVWLQJRUWHOHYLVLRQZKHWKHURU QRWLQFRUSRUDWLQJUHFHSWLRQDSSDUDWXVRUVRXQGUHFRUGLQJRUUHSURGXFLQJ DSSDUDWXVWHOHYLVLRQFDPHUDVGLJLWDOFDPHUDVDQGYLGHRFDPHUD UHFRUGHUV Parts VXLWDEOH IRU XVH VROHO\ RU SULQFLSDOO\ ZLWK WKH DSSDUDWXV RI headings 8525WR 2WKHU 3ULQWHG &LUFXLW $VVHPEOLHV 2I WHOHYLVLRQ DSSDUDWXV 2WKHU 2IUDGDUUDGLRQDYLJDWLRQDODLGRUUDGLRUHPRWHFRQWURO DSSDUDWXV 2WKHU (PSKDVLVVXSSOLHG ,QWKHSUHVHQWFDVHFODVVLILFDWLRQLQ+HDGLQJILUVWUHTXLUHVFODVVLILFDWLRQLQ +HDGLQJZKLFKFRYHUVLQUHOHYDQWSDUW³7UDQVPLVVLRQDSSDUDWXVIRUUDGLR EURDGFDVWLQJRUWHOHYLVLRQZKHWKHURUQRWLQFRUSRUDWLQJUHFHSWLRQDSSDUDWXVRUVRXQG Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 14 of 52
UHFRUGLQJRUUHSURGXFLQJDSSDUDWXV´+HDGLQJFRYHUVLQUHOHYDQWSDUW ³DSSDUDWXVIRUWKHWUDQVPLVVLRQRUUHFHSWLRQRIYRLFHLPDJHVRURWKHUGDWDLQFOXGLQJ DSSDUDWXVIRUFRPPXQLFDWLRQLQDZLUHGRUZLUHOHVVQHWZRUN VXFKDVDORFDORUZLGH DUHDQHWZRUN ´ ,, 3RVLWLRQVRIWKH3DUWLHV 3ODLQWLIIVHHNVFODVVLILFDWLRQRIWKH3&%$VDQGFKDVVLVXQGHUVXEKHDGLQJ DV³SDUWV´RIDUWLFOHVRI+HDGLQJ3O%UDW$VVXFKSODLQWLII DUJXHVWKDWWKH+DUPRQLF(05VZLWKZKLFKWKH3&%$VDQGFKDVVLVDUHXVHGDUH SURSHUO\FODVVLILHGLQ+HDGLQJUDWKHUWKDQLQ+HDGLQJSee id.DW 3ODLQWLIIILUVWDUJXHVWKDWWKHWHUP³transmission apparatusIRUUDGLREURDGFDVWLQJ RUWHOHYLVLRQ´LQ+HDGLQJ HPSKDVLVVXSSOLHG KDVDGLIIHUHQWPHDQLQJWKDQWKH WHUP³apparatus for the transmissionRUUHFHSWLRQRIYRLFHLPDJHVRURWKHUGDWD´LQ +HDGLQJ HPSKDVLVVXSSOLHG Id6SHFLILFDOO\SODLQWLIIDUJXHVWKDWWKHIRUPHU UHIHUVWR³HTXLSPHQWWKDWsends signals outWRUDGLRVDQGWHOHYLVLRQV´Id. HPSKDVLV VXSSOLHG ZKLOHWKHODWWHU³LQFOXGHVHTXLSPHQWWKDWSHUIRUPVDIXQFWLRQthat is not the sending out of signals but that supportsWUDQVPLVVLRQ´Id. HPSKDVLVVXSSOLHG 7KH GLVWLQFWLRQLQSODLQWLII¶VYLHZLVRQHEHWZHHQ³SURGXFWVWKDWμWUDQVPLW¶PHDQLQJ>WKH\@ VHQGVLJQDOVWRRWKHUORFDWLRQVDQGSURGXFWVWKDWGRQRWμWUDQVPLW¶EXWWKDWGRVRPHWKLQJ WKDWVXSSRUWVWUDQVPLVVLRQ´3O%UDW3ODLQWLIIVWDWHVWKDWLWUHDFKHGWKLV FRQFOXVLRQ³>E@DVHGXSRQWKHFRPPRQFRPPHUFLDODQGWHFKQLFDOPHDQLQJ´RIWKHZRUGV RI+HDGLQJId 2QWKLVEDVLVSODLQWLIIFRQFOXGHVWKDWWKH+DUPRQLF(05VZLWKZKLFKWKH3&%$V DQGFKDVVLVDUHXVHGFDQQRWEHFODVVLILHGLQ+HDGLQJEHFDXVHWKH\³GRQRWVHQG Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 15 of 52
VLJQDOVWRUDGLRVRUWHOHYLVLRQV´ Id.DW5DWKHUDFFRUGLQJWRSODLQWLIIWKH+DUPRQLF (05VDUHSURSHUO\FODVVLILHGLQ+HDGLQJ³>E@HFDXVHWKH>+DUPRQLF(05V@VKULQN WKHVL]HRIGLJLWDODXGLRYLGHRGDWDLQRUGHUWRHQKDQFHWKHVWRUDJHDQGHYHQWXDO WUDQVPLVVLRQRIWKDW>VLF@GDWDE\RWKHUHTXLSPHQW´ Id. &ODVVLILFDWLRQLQ+HDGLQJ LVIXUWKHUVXSSRUWHGSODLQWLIIDGGVE\WKH([SODQDWRU\1RWHVDQGD:&2&ODVVLILFDWLRQ 2SLQLRQSee id. 'HIHQGDQWDUJXHVWKDWWKH3&%$VDUHFODVVLILDEOHLQVXEKHDGLQJDQG WKHFKDVVLVDUHFODVVLILDEOHLQVXEKHDGLQJSee 'HI%UDW&ODVVLILFDWLRQ DW+HDGLQJDVXUJHGE\GHIHQGDQWILUVWUHTXLUHVFODVVLILFDWLRQRIWKH+DUPRQLF (05VLQ+HDGLQJ'HIHQGDQWDVVHUWVWKDWWKHFRPPRQPHDQLQJRI³WUDQVPLVVLRQ DSSDUDWXVIRUWHOHYLVLRQ´VXSSRUWVFODVVLILFDWLRQRIWKH+DUPRQLF(05VLQ+HDGLQJ See id.DW$FFRUGLQJWRGHIHQGDQW³WUDQVPLVVLRQPHDQVWRFRQYH\RUWUDQVIHU LQIRUPDWLRQVLJQDOVRUGDWDIURPRQHORFDWLRQWRDQRWKHU´Id.DW LQWHUQDOFLWDWLRQV RPLWWHG %HFDXVHWKHGDWDVLJQDOVWKDWHQWHUWKH+DUPRQLF(05V³GRQRWUHVLGHWKHUH LQSHUSHWXLW\´id.DWEXWUDWKHUDUH³PRYH>G@DORQJWKHWUDQVPLVVLRQSDWK´WKH +DUPRQLF(05VFDQEHGHVFULEHGDV³WUDQVPLVVLRQDSSDUDWXV´ZLWKLQWKHPHDQLQJRI +HDGLQJId.DW,QEULHIGHIHQGDQWDUJXHVWKDWWKHVFRSHRI³>+@HDGLQJ LVQRWOLPLWHGWRDGHYLFHWKDWLVDQDFWXDOWUDQVPLWWHU´Id.DW ,QDGGLWLRQGHIHQGDQWDUJXHVWKDWWKH+DUPRQLF(05VDUHSURSHUO\FODVVLILHGLQ +HDGLQJEHFDXVH³WKHUHLVQRGLVSXWHWKDW>(05V@DUHXVHGLQWKHSURFHVVWKDW UHVXOWVLQWKHWUDQVPLVVLRQRIWHOHYLVLRQSURJUDPPLQJ´Id.DW0RUHRYHUWKH H[FOXVLRQLQ+HDGLQJRI³WUDQVPLVVLRQRUUHFHSWLRQDSSDUDWXVRIKHDGLQJ´ Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 16 of 52
IURP+HDGLQJVXJJHVWVWKDW³ZKHQWHOHYLVLRQVLJQDO>VLF@DUHLQYROYHGKHDGLQJ FRQWUROV´Id.DW )XUWKHUGHIHQGDQWGLVDJUHHVZLWKSODLQWLII¶VSURSRVHGLQWHUSUHWDWLRQRI+HDGLQJ DVHTXLSPHQWWKDWWUDQVPLWVDQGRI+HDGLQJDVHTXLSPHQWWKDWVXSSRUWV WUDQVPLVVLRQSee id'HIHQGDQWFRQWHQGVWKDW³DVDPDWWHURIVHQWHQFHVWUXFWXUHDQG JUDPPDUDSKUDVHμWUDQVPLVVLRQDSSDUDWXVIRUWHOHYLVLRQ¶KDVWKHVDPHPHDQLQJDV μDSSDUDWXVIRUWKHWUDQVPLVVLRQRIWHOHYLVLRQ¶´Id.DW/DVWO\LQDGGUHVVLQJSODLQWLII¶V DUJXPHQWVGHIHQGDQWSRLQWVRXWWKDWWKH:&2&ODVVLILFDWLRQ2SLQLRQWRZKLFKSODLQWLII UHIHUVLVQRWELQGLQJDQGWKDWSODLQWLII¶VUHOLDQFHRQWKH([SODQDWRU\1RWHVWREROVWHULWV FODVVLILFDWLRQDUJXPHQWLVPLVSODFHGSee id.DW± ,,, &ODVVLILFDWLRQRIWKH6XEMHFW0HUFKDQGLVH 7RDVVHVVZKHWKHUWKHFRXUWPD\GHWHUPLQHWKHDSSURSULDWHFODVVLILFDWLRQRIWKH VXEMHFWPHUFKDQGLVHWKHFRXUWILUVWFRQVLGHUVVL[NH\LVVXHVUDLVHGE\WKHSDUWLHV FRQFHUQLQJWKHPHDQLQJRI+HDGLQJVDQG WKHGHILQLWLRQVRIWKHWHUPV ³WUDQVPLVVLRQ´³DSSDUDWXV´DQG³WHOHYLVLRQ´ WKHDSSURSULDWHQHVVRIDSULQFLSDOXVH DQDO\VLVZLWKUHVSHFWWRWKHKHDGLQJVDWLVVXH WKHUHOHYDQFHRI([SODQDWRU\1RWH * WR+HDGLQJ WKHPHDQLQJRIWKHDPHQGPHQWVWR+HDGLQJ
&XVWRPV¶WUDQVPLVVLRQSDWKWKHRU\DQGGHIHUHQFHWRSULRUUXOLQJOHWWHUVDQG WKH UHOHYDQFHRIWKH&RXUWRI&XVWRPVDQG3DWHQW$SSHDOV¶GHFLVLRQLQUnited States v. Ampex Corp.&&3$)G $IWHUGHWHUPLQLQJWKH DQVZHUVWRWKHVHVL[NH\LVVXHVWKHFRXUWWKHQWXUQVWRWKHFODVVLILFDWLRQLVVXHDWKDQG LQOLJKWRIWKHPHDQLQJRIWKHKHDGLQJVDQGPDNHVDQDVVHVVPHQWDVWRZKHWKHUWKHUHLV DJHQXLQHGLVSXWHDVWRDQ\PDWHULDOIDFW7KHFRXUWFRQFOXGHVWKDWWKHUHLVDQG Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 17 of 52
WKHUHIRUHGHQLHVSODLQWLII V5XOHPRWLRQIRUVXPPDU\MXGJPHQWGHQLHVGHIHQGDQW V 5XOHFURVVPRWLRQIRUVXPPDU\MXGJPHQWDQGJUDQWVSDUWLDOVXPPDU\MXGJPHQWRQ WKHLVVXHVDGGUHVVHGEHORZ $ 0HDQLQJRI+HDGLQJVDQG 7RXQGHUVWDQGDQGDSSO\SURSHUO\WKHODQJXDJHRI+HDGLQJVDQGWKH FRXUWEHJLQVE\GHILQLQJWKHWHUPVLQHDFKKHDGLQJ%RWKKHDGLQJVFRQWDLQWKHZRUGV ³DSSDUDWXV´DQG³WUDQVPLVVLRQ´KRZHYHUDVQRWHGDERYHWKHKHDGLQJVXVHWKHZRUGV GLIIHUHQWO\DQGWKHSDUWLHVGLVSXWHWKHFRQWH[WDQGPHDQLQJRIWKHZRUGVLQWKH UHVSHFWLYHKHDGLQJV 'HILQLWLRQVRI.H\7HUPV²7UDQVPLVVLRQ$SSDUDWXVDQG 7HOHYLVLRQ D 7UDQVPLVVLRQDQG$SSDUDWXV 7KHFRXUWEHJLQVZLWKWKHZRUG³WUDQVPLVVLRQ´7KH+7686GRHVQRWGHILQH ³WUDQVPLVVLRQ´7KHUHIRUHWKHFRXUWWXUQVWRGLFWLRQDU\GHILQLWLRQVWRGHWHUPLQHWKH SURSHUPHDQLQJ:KHQLQWHUSUHWLQJDWDULIIWHUPWKHFRXUWPD\UHO\RQLWVRZQ XQGHUVWDQGLQJRIWKHWHUPDQGRQVHFRQGDU\VRXUFHVVXFKDVVFLHQWLILFDXWKRULWLHVDQG GLFWLRQDULHVNorth Am. Processing Co.)GDW FLWLQJCarl Zeiss, )GDW'LFWLRQDULHVRQZKLFKERWKSDUWLHVUHO\GHILQHWKHWHUP³WUDQVPLVVLRQ´DVIROORZV ³WKHSURFHVVRIWUDQVIHUULQJDVLJQDOPHVVDJHSLFWXUHRURWKHUIRUPRILQWHOOLJHQFH IURPRQHORFDWLRQWRDQRWKHUORFDWLRQE\PHDQVRIZLUHOLQHVUDGLROLJKWEHDPVLQIUDUHG EHDPVRURWKHUFRPPXQLFDWLRQVV\VWHPV´0 &* 5$:+,// ',&7,21$5<2) 6&,(17,),&$1' 7(&+1,&$/ 7(506 WKHG ³&RQYH\DQFHRUWUDQVIHUIURPRQHSHUVRQRUSODFH WRDQRWKHU«&RQYH\DQFHRUSDVVDJHWKURXJKDPHGLXPDVRIOLJKWKHDWVRXQG Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 18 of 52
HWF$OVRspec., WKHVHQGLQJRXWRIHOHFWURQLFVLJQDOVRUHOHFWURPDJQHWLFZDYHVWKH EURDGFDVWLQJRIUDGLRRUWHOHYLVLRQSURJUDPV´6+257(5 2 ;)25' (1*/,6+ ',&7,21$5<21+,6725,&$/3 5,1&,3/(6 WKHG ³7KHVHQGLQJRIDVLJQDOSLFWXUH RURWKHULQIRUPDWLRQIURPDWUDQVPLWWHU´7+( $0(5,&$1 +(5,7$*( ',&7,21$5<2)7+( (1*/,6+/ $1*8$*( WKHG ³7KHSDVVDJHRIUDGLRZDYHVLQWKHVSDFH EHWZHHQWUDQVPLWWLQJDQGUHFHLYLQJVWDWLRQValsoWKHDFWRUSURFHVVRIWUDQVPLWWLQJE\ UDGLRRUWHOHYLVLRQ´0(55,$0 : (%67(5 2 1/,1( ',&7,21$5<3O%UDW'HI%UDW ,QVXPGLFWLRQDU\GHILQLWLRQVLQGLFDWHWKDWDWUDQVPLVVLRQSURGXFWVHQGVDVLJQDO IURPRQHORFDWLRQWRDQRWKHUORFDWLRQ 6LPLODUO\WKH+7686GRHVQRWGHILQH³DSSDUDWXV´KRZHYHUWKH&RXUWKDV FRQVWUXHGWKDWWHUPRQDQXPEHURIRFFDVLRQVSee, e.g., Photonetics, Inc. v. United States&,7)6XSSG ITT Thompson Industries, Inc. v. United States&,7)6XSS In re Alappat)G )HG &LU ,QITT ThompsonWKHFRXUWFRQFOXGHGWKDWWKHWHUPLV³LQWHQGHGWR HQFRPSDVVDJURXSRIGHYLFHVRUDFROOHFWLRQRUVHWRIPDWHULDOVLQVWUXPHQWVRU DSSOLDQFHVWREHXVHGIRUDSDUWLFXODUSXUSRVHRUDJLYHQHQG´ITT Thompson,) 6XSSDW3ODLQWLIIGRHVQRWRIIHUDQ\GHILQLWLRQVRI³DSSDUDWXV´ZKLOHGHIHQGDQW SURYLGHVWKUHHGLFWLRQDU\GHILQLWLRQV7KRVHGHILQLWLRQVDUHVLPLODUWRWKHRQHXVHGE\ WKHFRXUWLQITT ThompsonSee 'HI5HS%UDW 7KHUHIRUHWKHFRPPRQPHDQLQJ 'HIHQGDQWSUHVHQWVWKHIROORZLQJGHILQLWLRQV³DVHWRIPDWHULDOVRUHTXLSPHQW GHVLJQHGIRUDSDUWLFXODUXVH´0(55,$0 : (%67(5 2 1/,1( ',&7,21$5<³7KHWHFKQLFDO HTXLSPHQWRUPDFKLQHU\QHHGHGIRUDSDUWLFXODUDFWLYLW\RUSXUSRVH´/(;,&2³DJURXS RUFRPELQDWLRQRILQVWUXPHQWVPDFKLQHU\WRROVPDWHULDOVHWFKDYLQJDSDUWLFXODU IXQFWLRQRULQWHQGHGIRUDVSHFLILFXVH´',&7,21$5< &20 7KHVHGHILQLWLRQVLQGLFDWHWKDW ³DSSDUDWXV´UHIHUVJHQHUDOO\WRDGHYLFHGHVLJQHGIRUDSDUWLFXODUXVHRUSXUSRVH Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 19 of 52
RIWKHWHUPV³WUDQVPLVVLRQ´DQG³DSSDUDWXV´LQGLFDWHVGHYLFHVGHVLJQHGIRUWKHSXUSRVH RIVHQGLQJVLJQDOVIURPRQHORFDWLRQWRDQRWKHU 3ODLQWLIIDUJXHVWKDW³WUDQVPLVVLRQDSSDUDWXV´LQ+HDGLQJUHIHUVWR HTXLSPHQWWKDWVHQGVVLJQDOVRXWWRDfinal UHFHSWLRQGHYLFHZKLFKIRU+HDGLQJ ZRXOGEHHLWKHUDUDGLRRUDWHOHYLVLRQ3O%UDW3ODLQWLIIPDLQWDLQVWKDWLQFRQWUDVW WKHPHDQLQJRIWKHWHUP³DSSDUDWXVIRUWKHWUDQVPLVVLRQ´LQ+HDGLQJHQFRPSDVVHV SURGXFWVWKDWsupport WUDQVPLVVLRQSee 3O%UDW 7KLVDUJXPHQWLVQRWVXSSRUWHGE\WKHWH[WRIWKH+7686)LUVWWKHUHLVQR LQGLFDWLRQLQWKHWH[W([SODQDWRU\1RWHVRURWKHULQWHUSUHWDWLYHPDWHULDOVWKDWWKHXVHRI WKHWZRQHDUO\LGHQWLFDOWHUPV²³WUDQVPLVVLRQDSSDUDWXV´LQ+HDGLQJDQG ³DSSDUDWXVIRUWKHWUDQVPLVVLRQ´LQ+HDGLQJ²ZDVLQWHQGHGWRFRQYH\GLIIHUHQW PHDQLQJV6HFRQGWKHFRPPRQPHDQLQJRIWKHWHUP³WUDQVPLVVLRQDSSDUDWXV´GRHV QRWUHTXLUHDVSODLQWLIIZRXOGKDYHLWWKDWWKHVXEVHTXHQWORFDWLRQEHWKHfinal UHFHSWLRQ GHYLFHSee GLFWLRQDU\GHILQLWLRQVGLVFXVVHGsupra S6LPLODUO\WKHUHLVQR LQGLFDWLRQIURPWKHWH[WWKDW³WUDQVPLVVLRQDSSDUDWXV´UHIOHFWVWKHQDUURZGHILQLWLRQWKDW SODLQWLIIVHHNVWRLPSRVHRQLW ,QIDFWWKHGLFWLRQDU\GHILQLWLRQVFLWHGDERYHE\ERWK SDUWLHVVXSSRUWDFRPPRQPHDQLQJRI³WUDQVPLVVLRQ´WKDW³PHDQVWRFRQYH\RUWUDQVIHU LQIRUPDWLRQVLJQDOVRUGDWDIURPRQHORFDWLRQWRDQRWKHU´See3O5HS%UDW 3ODLQWLIIFLWHV([SODQDWRU\1RWH $ WR+HDGLQJDVVXSSRUWIRULWVQDUURZGHILQLWLRQ RI³WUDQVPLVVLRQDSSDUDWXV´DV³WKHDSSDUDWXVWKDWSHUIRUPVWKHDFWRIVHQGLQJDVLJQDO RXW´3O%UDW([SODQDWRU\1RWH $ SURYLGHVDOLVWRIH[HPSODUVRIPHUFKDQGLVH WKDWPHHWWKLVGHILQLWLRQZKLFK³VKDUHWKHFRPPRQSXUSRVHRISHUIRUPLQJWKHDFWRI VHQGLQJVLJQDOVIURPRQHORFDWLRQWRDQRWKHU´3O%UDW3ODLQWLIIWKHQPDNHVWKH ORJLFDOOHDSWKDW³>L@QFRQWUDVWWKH+DUPRQLFSURGXFWVGRQRWVHQGVLJQDOVRXWWRDQRWKHU ORFDWLRQ´Id Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 20 of 52
'HI%UDW)LQDOO\WKHXVHRIWKHPRUHJHQHUDOWHUP³WUDQVPLVVLRQ´DOVRFRQWUDVWV ZLWKWKHZRUG³WUDQVPLWWHU´ZKLFKLVQRWXVHGLQ+HDGLQJDQGFRQQRWHVDQDUURZHU PHDQLQJDORQJWKHOLQHVRIWKDWRIIHUHGE\SODLQWLII'HI%UDW ,QDGGLWLRQWRLQFOXGLQJWKHWHUPV³WUDQVPLVVLRQ>@DSSDUDWXV´DQG³DSSDUDWXVIRU WKHWUDQVPLVVLRQ´WKHSODLQODQJXDJHRI+HDGLQJSURYLGHVWKDWZKHQWHOHYLVLRQ VLJQDOVDUHLQYROYHG+HDGLQJFRQWUROV+HDGLQJsee also'HI%UDW %DVHGRQWKLVWH[WWKHGUDIWHUVRIWKH+7686DSSDUHQWO\UHFRJQL]HGWKDWLWHPVPD\EH FODVVLILDEOHLQERWK+HDGLQJVDQGDPRQJRWKHUVUHJDUGOHVVRIWKH FRQVWUXFWLRQRIWKHZRUGV³WUDQVPLVVLRQ´DQG³DSSDUDWXV´:HUHLWRWKHUZLVHWKH GUDIWHUVZRXOGQRWKDYHH[SUHVVO\H[FOXGHGWHOHYLVLRQVLJQDOVIURP+HDGLQJ 3ODLQWLIIPDLQWDLQVWKDW+HDGLQJFRYHUVRQO\LWHPVWKDWVXSSRUW WUDQVPLVVLRQZKLOH+HDGLQJHQFRPSDVVHVRQO\LWHPVWKDWIXQFWLRQDVDFWXDO WUDQVPLWWHUV3O%UDW7KLVDUJXPHQWLVLQFRUUHFW([SODQDWRU\1RWH * WR+HDGLQJ QDPHV³WUDQVPLWWHUV´DVDQH[DPSOHRIOLQHHTXLSPHQWUHODWHGWRPXOWLSOH[HUV(1
- ,I+HDGLQJFRQVLVWHGRQO\RILWHPVWKDWsupport WUDQVPLVVLRQUDWKHU WKDQLWHPVWKDWDFWXDOO\transmit VLJQDOV³WUDQVPLWWHUV´ZRXOGQRWEHOLVWHGLQWKH
3ODLQWLIIDOVRUHOLHVRQDQRSLQLRQRIWKH:RUOG&XVWRPV2UJDQL]DWLRQ :&2 WKDW
FODVVLILHGGLJLWDOHQFRGHUVPXOWLSOH[HUVDQGUHPXOWLSOH[HUVLQ+HDGLQJ3O%UDW
$FFRUGLQJWRSODLQWLIIWKH:&2RSLQLRQGHWHUPLQHGWKDWWKHLWHPVDUHFODVVLILHG
LQ+HDGLQJDQGQRWLQ+HDGLQJEHFDXVHWKH\GRQRWSHUIRUPWKHIXQFWLRQRI
WUDQVPLWWLQJVLJQDOVIdDW3ODLQWLIIDUJXHVWKDWWKH:&2RSLQLRQWKXVSURYLGHV
JXLGDQFH³WKDW+HDGLQJμWUDQVPLVVLRQDSSDUDWXV¶FRYHUVLWHPVWKDWWUDQVPLWD
VLJQDODQGWKDW+HDGLQJ¶VμDSSDUDWXVIRUWKHWUDQVPLVVLRQ¶FRYHUVLWHPVWKDWGRQRW
WUDQVPLWEXWWKDWSHUIRUPDIXQFWLRQLQVXSSRUWRIWUDQVPLVVLRQ´Id$VQRWHGDERYHWKH
ODQJXDJHRIWKH+7686GRHVQRWVXSSRUWWKLVFRQFOXVLRQSee GLVFXVVLRQsupra
6HFWLRQ,,,$$FFRUGLQJO\WKH:&2RSLQLRQLVHQWLWOHGWR³UHVSHFWIXOFRQVLGHUDWLRQ´E
WKHFRXUWKRZHYHUWKHFRXUWGRHVQRWILQGWKHRSLQLRQSHUVXDVLYHCummins,)G
DW
Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 21 of 52
([SODQDWRU\1RWHV+HDGLQJWKHUHIRUHGHVFULEHVERWKGHYLFHVWKDWDFWXDOO
WUDQVPLWDQGRQHVWKDWVXSSRUWWUDQVPLVVLRQ 3ODLQWLIIQH[WDUJXHVWKDW([SODQDWRU\1RWH $ PDNHVFOHDUWKDW+HDGLQJ DSSOLHVRQO\WRDFWXDOWUDQVPLWWHUVWKHUHE\H[FOXGLQJWKHVXEMHFW+DUPRQLF(05VDW LVVXHLQWKLVFDVH7KHFRUHSUHPLVHRISODLQWLII¶VDUJXPHQWLVWKDW([SODQDWRU\1RWH $ WR+HDGLQJVKRXOGEHLQWHUSUHWHGEDVHGRQWKHSULQFLSOHRIejusdem generisVXFK WKDWLWLQFOXGHVRQO\GHYLFHVWKDWDFWXDOO\SHUIRUPWKHDFWRIVHQGLQJVLJQDOVIURPRQH ORFDWLRQWRDQRWKHU3O%UDW'HIHQGDQWDUJXHVWKDWWKHSULQFLSOHRIejusdem generisGRHVQRWDSSO\WRWKHSURYLVLRQDQGWKDWSODLQWLII¶VSURIIHUHGLQWHUSUHWDWLRQZRXOG LPSURSHUO\QDUURZWKHSODLQPHDQLQJRI+HDGLQJ ([SODQDWRU\1RWH $ WR+HDGLQJSURYLGHV ³WKLVJURXS>RIWUDQVPLVVLRQDSSDUDWXVIRUUDGLREURDGFDVWLQJRUWHOHYLVLRQ@includes ³ 7UDQVPLWWHUIRUUDGLREURDGFDVWLQJRUWHOHYLVLRQ 5HOD\DSSDUDWXVXVHGWRSLFNXSDEURDGFDVWIRUWUDQVPLVVLRQDQG UHWUDQVPLWLWWRDQGVRLQFUHDVHWKHUDQJH LQFOXGLQJWHOHYLVLRQUHOD\DSSDUDWXV IRUPRXQWLQJLQDLUFUDIW 5HOD\WHOHYLVLRQWUDQVPLWWHUVIRUWUDQVPLVVLRQE\PHDQVRIDQDHULDODQG SDUDEROLFUHIOHFWRUIURPWKHVWXGLRRUVLWHRIDQRXWVLGHEURDGFDVWWRWKHPDLQ WUDQVPLWWHU 7HOHYLVLRQWUDQVPLWWHUVIRULQGXVWULDOXVH HJIRUUHDGLQJLQVWUXPHQWVDWD GLVWDQFHRUIRUREVHUYDWLRQLQGDQJHURXVORFDOLWLHV :LWKWKLVDSSDUDWXVWKH WUDQVPLVVLRQLVRIWHQE\OLQH´([SODQDWRU\1RWH $ WR+HDGLQJ HPSKDVLVVXSSOLHG *HQHUDOO, ejusdem generisDQDO\VLVLVD³FDQRQRIFRQVWUXFWLRQKROGLQJWKDW ZKHQDJHQHUDOZRUGRUSKUDVHIROORZVDOLVWRIVSHFLILFVWKHJHQHUDOZRUGRUSKUDVHZLOO EHLQWHUSUHWHGWRLQFOXGHRQO\LWHPVRIWKHVDPHFODVVDVWKRVHOLVWHG´%/$&. ¶6 / $: ',&7,21$5< WKHG See also0 (55,$0 : (%67(5 /$: ',&7,21$5< GHILQLQJ ejusdem generisDV³DUXOHRIFRQVWUXFWLRQJHQHUDOZRUGV DVLQDVWDWXWH WKDWIROORZ Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 22 of 52
VSHFLILFZRUGVLQDOLVWPXVWEHFRQVWUXHGDVUHIHUULQJRQO\WRWKHW\SHVRIWKLQJV LGHQWLILHGE\WKHVSHFLILFZRUGV´ 6SHFLILFDOO\³,QFODVVLILFDWLRQFDVHVejusdem generis UHTXLUHVWKDWIRUDQ\LPSRUWHGPHUFKDQGLVHWRIDOOZLWKLQWKHVFRSHRIWKHJHQHUDOWHUP RUSKUDVHWKHPHUFKDQGLVHPXVWSRVVHVVWKHVDPHHVVHQWLDOFKDUDFWHULVWLFVRU SXUSRVHVWKDWXQLWHWKHOLVWHGH[HPSODUVSUHFHGLQJWKHJHQHUDOWHUPRUSKUDVH´ Avenues In Leather, Inc. v. United States)G )HG&LU 7KHVH GHILQLWLRQVWKHUHIRUHEXWWUHVVWKHGHILQLWLRQRI³ejusdem generis´DUJXHGE\GHIHQGDQW 7KHOLVWLQTXHVWLRQLVQRWDQH[KDXVWLYHOLVWZLWKDFDWFKDOOWHUPUDWKHULWLVOLVWRI H[HPSODUVLQWURGXFHGE\WKHZRUG³LQFOXGLQJ´7KHPHDQLQJRIWKHZRUG³LQFOXGLQJ´ YDULHVZLWKFRQWH[W,QDVWDWXWHLWPD\VHUYHWR FRQQRWHDQLOOXVWUDWLYHDSSOLFDWLRQRI WKHJHQHUDOGHVFULSWLRQZLWKRXWOLPLWLQJWKHJHQHUDOGHVFULSWLRQUDWKHUWKDQWRSURYLGHDQ DOOHPEUDFLQJGHILQLWLRQ ³DGGSURGXFWVWRWKHKHDGLQJWKDWIDOORXWVLGHWKHJHQHUDO GHVFULSWLRQ´ DUUHVWDQ\GRXEWDVWRZKHWKHUWKHH[HPSODUVDUHLQFOXGHGZLWKLQWKH FODVVRU ³GHPDUFDWHWKHERXQGDU\EHWZHHQZKDWIDOOVZLWKLQWKHJHQHUDOFODVVIURP WKDWZKLFKIDOOVZLWKRXWWKHUHE\OLPLWLQJWKHVFRSHRIWKHJHQHUDOFODVV´Cummins Inc. v. United States, &,7)6XSSG
7RGHFLGHZKLFKLIDQ\RIWKHVHSRVVLELOLWLHVDSSOLHVLQWKHLQVWDQWFDVH³WKH >F@RXUWQHHGVWRUHDGWKHμLQFOXGLQJ¶ODQJXDJHLQOLJKWRIWKHFRQWH[WDQGSXUSRVHRILWV XVHRUDVWKHOHJLVODWLYHKLVWRU\PD\VXJJHVW´Id LQWHUQDOFLWDWLRQVRPLWWHG ,QWKLV FDVHWKHPRVWDSSURSULDWHLQWHUSUHWDWLRQRIWKHXVHRILQFOXGLQJIRU([SODQDWRU\1RWH $ WR+HDGLQJLVWKHILUVWLQWHUSUHWDWLRQ$VWUXFWXUDODQDO\VLVRI([SODQDWRU\1RWH $ WR+HDGLQJVXJJHVWVWKDWWKHOLVWLQWKH([SODQDWRU\1RWHLVLOOXVWUDWLYH7KH ([SODQDWRU\1RWHEHJLQVE\GHVFULELQJWKHW\SHVRIWUDQVPLVVLRQVIRUZKLFKWKH Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 23 of 52
DSSDUDWXVLVXVHGWKDWIDOOLQWRWKHKHDGLQJ7KH([SODQDWRU\1RWHVWDWHVWKDWWKH ³DSSDUDWXVIRUUDGLREURDGFDVWLQJIDOOLQJLQWKLVJURXSPXVWEHIRUWKHWUDQVPLVVLRQRI VLJQDOVE\PHDQVRIHOHFWURPDJQHWLFZDYHVWUDQVPLWWHGWKURXJKWKHHWKHUZLWKRXWDQ\ OLQHFRQQHFWLRQ2QWKHRWKHUKDQGWHOHYLVLRQDSSDUDWXVIDOOVKHUHZKHWKHUWKH WUDQVPLVVLRQLVE\HOHFWURPDJQHWLFZDYHVRUE\OLQH´+7686(1 $ ([SODQDWRU\1RWH $ SURFHHGVWROLVWZKDW³WKLVJURXS´LQFOXGHVId7KHUHIRUHWKLV VWUXFWXUHLQGLFDWHVDQLQWHQWWRSURYLGHH[DPSOHVZLWKRXWOLPLWLQJWKHJHQHUDOGHVFULSWLRQ $GGLWLRQDOO\% /$&. ¶6 / $: ',&7,21$5< WKHG VXSSRUWVWKLVLQWHUSUHWDWLRQ E\VWDWLQJ³>W@KHSDUWLFLSOHLQFOXGLQJW\SLFDOO\LQGLFDWHVDSDUWLDOOLVW´7KLVGHILQLWLRQRI ³LQFOXGLQJ´LVDFFHSWHGLQPDQ\FRXUWGHFLVLRQVE.g., Bloate v. United States, 86 Amanda Foods (Vietnam) Ltd. v. United States&,7)6XSS G 7KLV&RXUWGRHVQRWDSSO\WKHSULQFLSOHRIejusdem generis WRDQLOOXVWUDWLYHOLVW ZLWKRXWDJHQHUDO³FDWFKDOO´WHUP,QGHHGDOOIRXUFDVHVFLWHGE\SODLQWLIILQVXSSRUWRI LWVDUJXPHQWDSSO\ejusdem generisWROLVWVWKDWHQGZLWKVXFKDJHQHUDOWHUPSee Otter Prod., LLC v. United States)G )HG&LU ³DQGVLPLODU FRQWDLQHUV´ Victoria’s Secret Direct, LLC v. United States)G )HG &LU ³DQGVLPLODUDUWLFOHV´ Avenues in Leather, Inc. v. United States)G )HG&LU ³VLPLODUFRQWDLQHUV´DQG³VLPLODUDUWLFOHV´ Sports Graphics, Inc. v. United States)G )HG&LU ³KRXVHKROGDUWLFOHVQRW VSHFLILFDOO\SURYLGHGIRU´ 7KHUHIRUHQRQHRIWKHFDVHVSUHVHQWHGE\SODLQWLIILV DSSRVLWHWRWKHFXUUHQWFDVH Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 24 of 52
7KHFRXUWWKHUHIRUHGHWHUPLQHVEDVHGRQWKHODQJXDJHRI([SODQDWRU\1RWH $ WR +HDGLQJWKDWWKHejusdem generis SULQFLSOHGRHVQRWDSSO\ (YHQDVVXPLQJarguendoWKDWejusdem generisZHUHWRDSSO\WRWKHOLVWLQ ([SODQDWRU\1RWH $ SODLQWLII¶VDUJXPHQWRQWKLVSRLQWZRXOGIDLO7KDWLVEHFDXVH SODLQWLIIKHUHDWWHPSWVWRXVHDQ(1WR+HDGLQJWRGHILQH³WUDQVPLVVLRQDSSDUDWXV´ PRUHQDUURZO\WKDQWKHSODLQPHDQLQJRIWKHZRUGVLQWKHKHDGLQJ7KLV&RXUWDQGWKH 86&RXUWRI$SSHDOVIRUWKH)HGHUDO&LUFXLW ³)HGHUDO&LUFXLW´ KDYHUHMHFWHGVLPLODU DWWHPSWVWRXVH(1VWRLQWHUSUHWDKHDGLQJDVQDUURZHUWKDQLWVSODLQPHDQLQJ LQWHUSUHWDWLRQSee Rubie’s Costume Co. v. United States )G )HG &LU Apple Inc. v. United States&,7BB)6XSSG aff'd )G )HG&LU )RUH[DPSOHLQRubie’s CostumeWKH)HGHUDO&LUFXLW UHMHFWHGVXFKDQLQWHUSUHWDWLRQVWDWLQJWKDW³>D@OWKRXJKWKHH[DPSOHVLQWKH(1VDUH SUREDWLYHDQGVRPHWLPHVLOOXPLQDWLQJZHVKDOOQRWHPSOR\WKHLUOLPLWLQJFKDUDFWHULVWLFV WRWKHH[WHQWWKHUHDUHDQ\WRQDUURZWKHODQJXDJHRIWKHFODVVLILFDWLRQKHDGLQJLWVHOI´ )GDW$FFRUGLQJO\WKHFRXUWUHMHFWVSODLQWLII¶VWZRSDUWDUJXPHQWFRQFHUQLQJ WKHDSSOLFDWLRQRI([SODQDWRU\1RWH $ WR+HDGLQJ E 7HOHYLVLRQ 7KHFRXUWWXUQVQH[WWRWKHPHDQLQJRIWKHWHUP³WHOHYLVLRQ´LQ+HDGLQJ 7KH+7686GRHVQRWGHILQHWKHWHUP³WHOHYLVLRQ´LQ+HDGLQJ7KH&RXUWKDV GHILQHGWHOHYLVLRQDV³YLVLRQDWDGLVWDQFHKHQFHWKHWUDQVPLVVLRQDQGUHSURGXFWLRQRI DYLHZRUVFHQHHVS>VLF@DYLHZRISHUVRQVRUREMHFWVLQPRWLRQE\DQ\GHYLFHZKLFK FRQYHUWVOLJKWUD\VLQWRHOHFWULFDOZDYHVDQGUHFRQYHUWVWKHVHLQWRYLVLEOHOLJKWUD\V´ Sears Roebuck & Co. v. United States&,7)6XSS Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 25 of 52
FLWLQJ: (%67(5 ¶6 1(: , 17(51$7,21$/ ',&7,21$5<2)7+((1*/,6+ /$18$( GHG
7RGHWHUPLQHWKHFRUUHFWPHDQLQJRIWHOHYLVLRQWKHFRXUWFRQVXOWVWKHVDPH GLFWLRQDULHVWKDWWKHFRXUWXVHGWRFODULI\WKHGHILQLWLRQRI³WUDQVPLVVLRQ´7KHVH GLFWLRQDULHVGHILQH³WHOHYLVLRQ´DVIROORZV³$V\VWHPIRUFRQYHUWLQJDVXFFHVVLRQRI YLVXDOLPDJHVLQWRFRUUHVSRQGLQJHOHFWULFVLJQDOVDQGWUDQVPLWWLQJWKHVHVLJQDOVE\UDGLR RURYHUZLUHVWRLQVWDQWUHFHLYHUVDWZKLFKWKHVLJQDOVFDQEHXVHGWRUHSURGXFHWKH RULJLQDOLPDJHV´ 0 &5$:+,// ' ,&7,21$5<2) 6&,(17,),&$1' 7(&+1,&$/7(506WKHG 6LPLODUO\WKH6+257(5 2 ;)25' (1/,6+',&7,21$5<21 +,6725,&$/ 35,1&,3/(6 WKHG GHILQHVWHOHYLVLRQDVD³$V\VWHPIRUUHSURGXFLQJRQDVFUHHQYLVXDO LPDJHVWUDQVPLWWHG XVXZLWKVRXQG E\UDGLRVLJQDOV«7KHPHGLXPDUWIRUPRU RFFXSDWLRQRIEURDGFDVWLQJRQWHOHYLVLRQ ZLWKVSHFLI\LQJZRUG DSDUWLFXODUWHOHYLVLRQ VHUYLFHRUFRPSDQ\1RZDOVRWHOHYLVHGHQWHUWDLQPHQWWKHFRQWHQWRIWHOHYLVLRQ SURJUDPPHV$GHYLFHZLWKDVFUHHQIRUUHFHLYLQJWHOHYLVLRQVLJQDOV´
+HDGLQJSURYLGHV³WUDQVPLVVLRQDSSDUDWXVIRUWHOHYLVLRQRUUDGLR EURDGFDVWLQJZKHWKHURUQRWLQFRUSRUDWLQJUHFHSWLRQDSSDUDWXVRUVRXQGUHSURGXFLQJSee also7+( $0(5,&$1 +(5,7$( ',&7,21$5<2)7+( (1/,6+/ $18$(³D$Q HOHFWURQLFEURDGFDVWV\VWHPLQZKLFKVSHFLDOSURYLGHUVWUDQVPLWDFRQWLQXRXVSURJUDPRI YLGHRFRQWHQWWRWKHSXEOLFRUVXEVFULEHUVE\ZD\RIDQWHQQDFDEOHRUVDWHOOLWHGLVK RIWHQRQPXOWLSOHFKDQQHOVE9LGHRFRQWHQWHVSHFLDOO\VKRUWSURJUDPVFUHDWHGIRU RUGLVWULEXWHGWKURXJKVXFKDV\VWHPF$QHOHFWURQLFGHYLFHIRUYLHZLQJWHOHYLVLRQ SURJUDPVDQGPRYLHVFRQVLVWLQJRIDGLVSOD\VFUHHQDQGVSHDNHUV7KHLQGXVWU
RISURGXFLQJDQGEURDGFDVWLQJWHOHYLVLRQSURJUDPV´DQG0 (55,$0 : (%67(5 2 1/,1( ',&7,21$5<³DQHOHFWURQLFV\VWHPRIWUDQVPLWWLQJWUDQVLHQWLPDJHVRIIL[HGRU PRYLQJREMHFWVWRJHWKHUZLWKVRXQGRYHUDZLUHRUWKURXJKVSDFHE\DSSDUDWXVWKDW FRQYHUWVOLJKWDQGVRXQGLQWRHOHFWULFDOZDYHVDQGUHFRQYHUWVWKHPLQWRYLVLEOHOLJKWUD\V DQGDXGLEOHVRXQGDWHOHYLVLRQUHFHLYLQJVHWDWKHWHOHYLVLRQEURDGFDVWLQJLQGXVWU
EWHOHYLVLRQDVDPHGLXPRIFRPPXQLFDWLRQFSURJUDPPLQJGLVWULEXWHGRYHUWKH ,QWHUQHWWKDWLVGHVLJQHGWREHYLHZHGLQWKHVDPHIRUPDWDVEURDGFDVWWHOHYLVLRQ´ Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 26 of 52
DSSDUDWXV´7KHTXDOLILHULQ+HDGLQJGHVFULEHVLWHPVLQ+HDGLQJDQG1RWH E RI6HFWLRQ;9,RIWKH+7686VWDWHVWKDWDSURGXFWWKDWLVequally FODVVLILDEOHLQ ERWK+HDGLQJDQG+HDGLQJVKRXOGEHFODVVLILHGLQ+HDGLQJ7KHUHIRUH FODVVLILFDWLRQXQGHU+HDGLQJLVSURSHURQO\IRULQVWDQFHVLQZKLFKDSURGXFWLV primarily FODVVLILDEOHLQ+HDGLQJE\ZD\RILWVSULQFLSDOXVHLQWHOHYLVLRQRUUDGLR EURDGFDVWLQJ 3ULQFLSDO8VH$QDO\VLV 7KHFRXUWFRQVLGHUVQH[WZKHWKHUDSULQFLSDOXVHDQDO\VLVLVDSSURSULDWHLQWKH LQVWDQWFDVH+HDGLQJLVDXVHSURYLVLRQDVLWLQFOXGHVSDUWVWKDWDUH³VXLWDEOHIRU usesolely or principallyZLWKWKHDSSDUDWXVRIKHDGLQJVWR´ (PSKDVLV VXSSOLHG SeeSamsung Int'l, Inc. v. United States&,7)6XSSG aff'd)$SS [ )HG&LU FRQILUPLQJ+HDGLQJLV DXVHSURYLVLRQ 5HOHYDQWLQWKHSUHVHQWFDVH+HDGLQJFRYHUVDPRQJRWKHU WKLQJVSDUWVRI³WUDQVPLVVLRQDSSDUDWXVIRUUDGLREURDGFDVWLQJRUWHOHYLVLRQ´XQGHU +HDGLQJ %HFDXVH+HDGLQJLVDXVHSURYLVLRQZKHWKHUWKHVXEMHFW3&%$VDQG FKDVVLVDUHFRUUHFWO\FODVVLILHGXQGHUWKLVKHDGLQJGHSHQGVRQZKHWKHUWKH+DUPRQLF (05VZLWKZKLFKWKH\DUHXVHGDUHFRUUHFWO\FODVVLILHGXQGHU+HDGLQJRU+HDGLQJ $FFRUGLQJO\WKHFRXUWPXVWGHWHUPLQHLIWKHVXEMHFWPHUFKDQGLVHLVSULQFLSDOO\ XVHGDVDFRQVWLWXHQWSDUWRIPHUFKDQGLVHWKDWDUH³WUDQVPLVVLRQDSSDUDWXVIRUUDGLR EURDGFDVWLQJRUWHOHYLVLRQ´XQGHU+HDGLQJRULQVWHDG³RWKHUDSSDUDWXVIRUWKH WUDQVPLVVLRQRUUHFHSWLRQRIYRLFHLPDJHVRURWKHUGDWDLQFOXGLQJDSSDUDWXVIRU FRPPXQLFDWLRQLQDZLUHGRUZLUHOHVVQHWZRUN´XQGHU+HDGLQJ7KHUHIRUHWKH Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 27 of 52
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³FDSDELOLW\WKDWLVgreater thanMXVWVXSSRUWLQJ79DQGUDGLRSURJUDPPLQJ´7U2UDO$UJ DW HPSKDVLVVXSSOLHG )XUWKHUSODLQWLIIFRQWHQGVWKDW³WKHZLGHUDQJHRI DXGLRYLGHRFRQWHQWWKDWLVFRPSUHVVHGE\+DUPRQLF(05VLVQRWGHVFULEHGE\WKH ODQJXDJHμIRUUDGLREURDGFDVWLQJRU79¶´Id3ODLQWLIIFLWHV*5,DVVXSSRUWLQJWKH LQWHUSUHWDWLRQWKDW³DGHYLFHWKDWKDVDXVHand capability´GLIIHUHQWWKDQWKDWGHVFULEHG E\+HDGLQJVKRXOGQRWEHFODVVLILHGLQ+HDGLQJId HPSKDVLVVXSSOLHG 7KHUHFRUGGHPRQVWUDWHVDJURZLQJWUHQGLQWKHWUDQVPLVVLRQRIFRPSUHVVHG GDWDWRGHYLFHVRWKHUWKDQWHOHYLVLRQV3O([) :ULWWHQ5HSRUWE\([SHUW'DQ 6FKRQIHOG ³6FKRQIHOG([SHUW5HSRUW´ DW7KLVUHSRUWH[SODLQVWKHGLJLWDOL]DWLRQRI FRPPXQLFDWLRQV\VWHPVLQFOXGLQJWHOHSKRQHDQGWHOHYLVLRQQHWZRUNVLQWRPXOWLPHGLD FRPPXQLFDWLRQQHWZRUNVRIIHULQJWHOHSKRQHWHOHYLVLRQDQG,QWHUQHWVHUYLFHVIdDW 6LPLODUO\WKHUHSRUWGHVFULEHVWKHULVHRIFRPSXWHUVDVPXOWLPHGLDSODWIRUPVId Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 28 of 52
+DUPRQLF(05VKDYHWKHFDSDELOLW\WREHXVHGLQWKHVHPXOWLPHGLDFRPPXQLFDWLRQ V\VWHPV )XUWKHULWLVFRUUHFWWKDW+DUPRQLFHQFRGHUVDUHVXLWHGIRUFRPSUHVVLQJDQ\ LPDJH LQDGGLWLRQWRVRXQG See3O([$ -RLQW6WPWRI)DFWV1RWLQ'LVSXWH DW ³7KH+DUPRQLFHQFRGHUVFRPSUHVVDXGLRDQGYLGHRGLJLWDOGDWDUHSUHVHQWLQJLPDJHV DQGVRXQGVLQFOXGLQJYRLFH´ see also3O([( 'HFODUDWLRQRI(ULF$UPVWURQJ DW ³+DUPRQLFHQFRGHUVDUHGHVLJQHGDQGXVHGVROHO\IRUWKHFRPSUHVVLRQRIGLJLWDOGDWD DQGUHSUHVHQWLQJVRXQGVDQGLPDJHV´ 7KHPXOWLSOH[HUVDQGUHPXOWLSOH[HUVIXUWKHU FRPSUHVVWKHVHGDWDRXWSXWVRILPDJHVDQGVRXQGIdDW 7KH³>V@XVFHSWLELOLW\FDSDELOLW\DGHTXDF\RUDGDSWDELOLW\RIWKHLPSRUWWRWKH FRPPRQXVHRIWKHFODVVLVQRWFRQWUROOLQJ´USR Optonix, Inc. v. United States&,7 )6XSSG FLWLQJU.S. v. the Carborundum Co &&3$)G 7KH&RXUWLQOptonixDOVRDSSOLHG$GGLWLRQDO 865XOHRI,QWHUSUHWDWLRQ D ZKLFK³SURYLGHVWKDWμ>L@QWKHDEVHQFHRIVSHFLDO ODQJXDJHRUFRQWH[WZKLFKRWKHUZLVHUHTXLUHV²DWDULIIFODVVLILFDWLRQFRQWUROOHGE\XVH RWKHUWKDQDFWXDOXVH LVWREHGHWHUPLQHGLQDFFRUGDQFHZLWKWKHXVHLQWKH8QLWHG:KHQPDNLQJDSULQFLSDOXVHGHWHUPLQDWLRQWKHFRXUWPDNHV³DGHWHUPLQDWLRQDVWR WKHJURXSRIJRRGVWKDWDUHFRPPHUFLDOO\IXQJLEOHZLWKWKHLPSRUWHGJRRGV´BenQ Am. Corp. v. United States)GDW LQWHUQDOTXRWDWLRQPDUNVDQGFLWDWLRQRPLWWHG ,QGRLQJVRWKHFRXUWPD\H[DPLQHWKHCarborundum IDFWRUVZKLFKLQFOXGH³ WKH JHQHUDOSK\VLFDOFKDUDFWHULVWLFVRIWKHPHUFKDQGLVH WKHH[SHFWDWLRQRIWKHXOWLPDWH SXUFKDVHUV WKHFKDQQHOVRIWUDGHLQZKLFKWKHPHUFKDQGLVHPRYHV WKH HQYLURQPHQWRIWKHVDOH e.g.,WKHPDQQHULQZKLFKWKHPHUFKDQGLVHLVDGYHUWLVHGDQG GLVSOD\HGRUWKHDFFRPSDQ\LQJDFFHVVRULHV WKHXVDJHRIWKHVXEMHFWPHUFKDQGLVH DQGZKHWKHUWKDWXVHFRUUHVSRQGVWRWKHXVHRIFODVVGHILQLQJPHUFKDQGLVH WKH HFRQRPLFSUDFWLFDOLW\RIXVLQJWKHLPSRUWLQWKDWPDQQHUDQG WKHUHFRJQLWLRQLQWKH WUDGHRIWKLVXVH´Optonix)6XSSGDW FLWLQJ Carborundum)GDW
Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 29 of 52
6WDWHVDWRULPPHGLDWHO\SULRUWRWKHGDWHRILPSRUWDWLRQ´Optonix&,7DWsee also$GGLWLRQDO865XOHRI,QWHUSUHWDWLRQ D +76867KH5XOHIXUWKHUFODULILHVWKDW ³WKHFRQWUROOLQJXVHLVWKHSULQFLSDOXVH´Id 3ULQFLSDOXVHDQDO\VLV³FRQVLGHUVDYDULHW
RIIDFWRUVLQFOXGLQJDFWXDOXVHμWRFODVVLI\SDUWLFXODUPHUFKDQGLVHDFFRUGLQJWRWKH RUGLQDU\XVHRIVXFKPHUFKDQGLVHHYHQWKRXJKSDUWLFXODULPSRUWHGJRRGVPD\EHSXWWR VRPHDW\SLFDOXVH¶´Apple Inc. v. United States)G )HG&LU FLWLQJAromont USAIncvUnited States)G )HG&LU LQWHUQDOTXRWDWLRQPDUNVDQGFLWDWLRQRPLWWHG ,QWKLVFDVHWKHUHLVDJHQXLQHIDFWXDOGLVSXWHEHWZHHQWKHSDUWLHVDVWRWKH SULQFLSDOXVHRIWKHVXEMHFW+DUPRQLF(05VIURPWR'HIHQGDQWDVVHUWVWKDW WKHSULQFLSDOXVHUVRIWKHVXEMHFWPHUFKDQGLVHZHUHWHOHYLVLRQFRQWHQWSURYLGHUVWKDW XVHG+DUPRQLF(05VWRWUDQVPLWGDWDVLJQDOVIRUWHOHYLVLRQFRQWHQW'HI6WPW)DFWV FLWLQJ'HI([ $UPVWURQJ'HS DW %\FRQWUDVWSODLQWLIIFHQWHUVLWVDUJXPHQWV RQWKHsuitabilityDQGLQFUHDVLQJXVHRIWKH+DUPRQLF(05VIRUQRQWHOHYLVLRQUHODWHG XVHV3O%UDW7U2UDO$UJDWSee also 3O5HVS'HI6WPW)DFWV $FFRUGLQJO\JHQXLQHLVVXHVRIPDWHULDOIDFWUHPDLQDVWRZKHWKHUWKH3&%$VDQG FKDVVLVDWLVVXHKHUHDUHFRQVWLWXHQWSDUWVRIPHUFKDQGLVHSULQFLSDOO\XVHG³IRUUDGLR EURDGFDVWLQJRUWHOHYLVLRQ´RUIRUWKH³UHFHSWLRQRIYRLFHLPDJHVRURWKHUGDWDLQD ZLUHGRUZLUHOHVVQHWZRUN´See Roche Vitamins)6XSSGDW7KHIXOOWH[WRI$GGLWLRQDO865XOHRI,QWHUSUHWDWLRQ D UHDGV³,QWKHDEVHQFHRI VSHFLDOODQJXDJHRUFRQWH[WZKLFKRWKHUZLVHUHTXLUHV² D DWDULIIFODVVLILFDWLRQ FRQWUROOHGE\XVH RWKHUWKDQDFWXDOXVH LVWREHGHWHUPLQHGLQDFFRUGDQFHZLWKWKHXVH LQWKH8QLWHG6WDWHVDWRULPPHGLDWHO\SULRUWRWKHGDWHRILPSRUWDWLRQRIJRRGVRIWKDW FODVVRUNLQGWRZKLFKWKHLPSRUWHGJRRGVEHORQJDQGWKHFRQWUROOLQJXVHLVWKHSULQFLSDO XVH´ Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 30 of 52
7KH5HOHYDQFHRI([SODQDWRU\1RWH * WR+HDGLQJ 3ODLQWLIIDOVRDVNVWKHFRXUWWRFRQVLGHU([SODQDWRU\1RWH * WR+HDGLQJDV SHUVXDVLYHDXWKRULW\IRUWKHSURSRVLWLRQWKDWWKHVXEMHFWPHUFKDQGLVHVKRXOGEH FODVVLILHGLQWKDWKHDGLQJ)RUWKHUHDVRQVHODERUDWHGEHORZWKHFRXUWFRQFOXGHVWKDW WKHSHUVXDVLYHDXWKRULW\RI([SODQDWRU\1RWH * LVOLPLWHG ([SODQDWRU\1RWH * VWDWHVWKDWHTXLSPHQWRI+HDGLQJLQFOXGHVDSSDUDWXV IRUWKHWUDQVPLVVLRQRI³VSHHFKRURWKHUVRXQGVLPDJHVRURWKHUGDWD´ZLWKLQ ³FRPPXQLFDWLRQQHWZRUNVWKDWPD\EHFRQILJXUHGDVSXEOLFVZLWFKHGWHOHSKRQH QHWZRUNV/RFDO$UHD1HWZRUNV /$1V 0HWURSROLWDQ$UHD1HWZRUNV 0$1V DQG:LGH $UHD1HWZRUNV :$1V ´([SODQDWRU\1RWH * WKHQSURYLGHVDOLVWRIZKDWWKLVJURXS PD\LQFOXGH([SODQDWRU\1RWH * VSHFLILFDOO\OLVWVPXOWLSOH[HUVRQHRIWKHWKUHH SURGXFWVWKDWFRPSULVHWKH+DUPRQLF(05VDWLVVXH([SODQDWRU\1RWH * DOVROLVWV ³FRGHFV´DQGGHVFULEHVFRGHFVDV³GDWDFRPSUHVVRUVGHFRPSUHVVRUV´7KHHQFRGHUV RIWKH+DUPRQLFHTXLSPHQWFRPSUHVVGDWDVR([SODQDWRU\1RWH * GHVFULEHVWKHLU IXQFWLRQ 'HIHQGDQWUHVSRQGVWRWKLVDUJXPHQWLQWKUHHZD\V'HIHQGDQWDUJXHVWKDW UDWKHUWKDQGHPRQVWUDWLQJWKDWWKHVXEMHFWPHUFKDQGLVHSURYLGHV³IRUWKHFRQQHFWLRQWR DZLUHGRUZLUHOHVVFRPPXQLFDWLRQQHWZRUNRUUHFHSWLRQRIVSHHFKRURWKHUVRXQGV LPDJHVRURWKHUGDWDZLWKLQVXFKDQHWZRUN´DVUHTXLUHGE\([SODQDWRU\1RWH * WKH VXEMHFWPHUFKDQGLVHLV³SULPDULO\XVHG´E\79SURYLGHUVWRFRPSUHVVGDWDWRUHOD\WR FRQVXPHUWHOHYLVLRQV'HI%UDWsee also'HI5HS%UDW'HIHQGDQW DOVRDUJXHVWKDWSODLQWLII¶VUHOLDQFHRQWKH(1VLV³PLVSODFHG´EHFDXVH WKH\DUHQRW Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 31 of 52
OHJDOO\ELQGLQJDQG SODLQWLIILVXVLQJejusdem generisWROLPLWLPSHUPLVVLEO\WKH PHDQLQJRIWKHKHDGLQJEDVHGRQDQRQH[KDXVWLYHOLVW'HI5HS%UDW)LQDOO
GHIHQGDQWQRWHVWKDW&RQJUHVVVSHFLILFDOO\H[FOXGHG³WUDQVPLVVLRQDSSDUDWXV´WKDWIDOO XQGHU+HDGLQJIURP+HDGLQJ,QVXPGHIHQGDQWDUJXHVWKDWWKH PXOWLSOH[HUVDQGFRGHFVOLVWHGLQ([SODQDWRU\1RWH * PLJKWEHSURSHUO\FODVVLILHGDW +HDGLQJEXWWKDWWKHVHSURGXFWVFRXOGDOVRIDOOXQGHU+HDGLQJ DVWKH VXEMHFWPHUFKDQGLVHVSHFLILFDOO\ZDUUDQWV 'HI5HS%UDW :KHQWKH(1V³VSHFLILFDOO\LQFOXGHRUH[FOXGHDQLWHPIURPDWDULIIKHDGLQJ´WKH
VHUYHDVSHUVXDVLYHDXWKRULW\IRUWKHFRXUWH.I.M./Fathom, Inc. v. United States) 6XSSDW +RZHYHUQRWDEO\WKH(1VWR+HDGLQJGRQRWVSHFLILFDOO
QDPHHLWKHUHQFRGHUVRUUHPXOWLSOH[HUV)XUWKHU([SODQDWRU\1RWH * OLVWV ³FRGHFVZKLFKKDYHWKHFDSDELOLW\RIWUDQVPLVVLRQDQGUHFHSWLRQRIGLJLWDO LQIRUPDWLRQ´$WRUDODUJXPHQWSODLQWLIIFRQFHGHGWKDW([SODQDWRU\1RWH * GRHVQRW UHIOHFWIXOO\WKHVXEMHFW+DUPRQLFHQFRGHUVEHFDXVHDFFRUGLQJWRSODLQWLIIWKHHQFRGHUV LQFOXGHGLQWKHVXEMHFWPHUFKDQGLVH³GRQRWWUDQVPLW´7U2UDO$UJDW7KHUHIRUHWKH SHUVXDVLYHDXWKRULW\RI([SODQDWRU\1RWH * LVOLPLWHG 0HDQLQJRIWKH$PHQGPHQWV3ODLQWLIIDOVRDUJXHVWKDWWKHDPHQGPHQWVWR+HDGLQJVXSSRUW SODLQWLII¶VLQWHUSUHWDWLYHSRVLWLRQV ,Q+HDGLQJZDVDPHQGHGLQWZRVLJQLILFDQWUHVSHFWV )LUVW &RQJUHVVDPHQGHG+HDGLQJWRLQFOXGHWKHODQJXDJH³DSSDUDWXVIRUWKH
7KHDPHQGPHQWVWR+7686DWLVVXHKHUHZHUHPDGHSXUVXDQWWR 3URFODPDWLRQ1R)HG5HJ -DQ 7KHVXSHUVHGLQJODQJXDJHWR LVOLVWHGLQ0RGLILFDWLRQVWRWKH+DUPRQL]HG7DULII6FKHGXOHRIWKH8QLWHG6WDWHV
Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 32 of 52
WUDQVPLVVLRQ´6HFRQG&RQJUHVVDGGHGH[FOXVLRQDU\ODQJXDJHFODULI\LQJWKDWDQ
DSSDUDWXVIRUWUDQVPLVVLRQRUUHFHSWLRQWKDWLVSURSHUO\FODVVLILHGXQGHU+HDGLQJLV H[FOXGHGIURP+HDGLQJ 3ODLQWLIIDUJXHVWKDWWKHILUVWDPHQGPHQWGHPRQVWUDWHVDQLQWHQWLRQ³WRFRYHU HTXLSPHQWVXFKDVWKH+DUPRQLFHQFRGHUVPXOWLSOH[HUVDQGUHPXOWLSOH[HUVWKDWGLGQRW H[LVWLQ´3O5HS%UDW'HIHQGDQW¶VSRVLWLRQLVWKDWWKLVLQWHUSUHWDWLRQZRXOG KDYHWKHHIIHFWRILQFRUSRUDWLQJLQWR+HDGLQJLWHPVGHVFULEHGLQRWKHUKHDGLQJV LQFOXGLQJ+HDGLQJ7U2UDO$UJDW'HIHQGDQWDGGVWKDWWKHH[FOXGLQJ ODQJXDJHLQ+HDGLQJLVPHDQWWRDGGUHVVWKLVSRWHQWLDOFRQIOLFWId. 7KHSUHDPHQGPHQWWH[WRI+HDGLQJZDV³(OHFWULFDODSSDUDWXVIRUOLQH WHOHSKRQ\RUOLQHWHOHJUDSK\LQFOXGLQJOLQHWHOHSKRQHVHWVZLWKFRUGOHVVKDQGVHWVDQG WHOHFRPPXQLFDWLRQDSSDUDWXVIRUFDUULHUFXUUHQWOLQHV\VWHPVRUIRUGLJLWDOOLQHV\VWHPV YLGHRSKRQHVSDUWVWKHUHRI´3RVWDPHQGPHQWWKHWH[WRI+HDGLQJVWLOOEHJLQV ZLWKDIRFXVRQWHOHSKRQHVSURYLGLQJ³7HOHSKRQHVHWVLQFOXGLQJWHOHSKRQHVIRUFHOOXODU QHWZRUNVRUIRURWKHUZLUHOHVVQHWZRUNVRWKHUapparatus for the transmission RU UHFHSWLRQRIYRLFHLPDJHVRURWKHUGDWDLQFOXGLQJDSSDUDWXVIRUFRPPXQLFDWLRQLQD ZLUHGRUZLUHOHVVQHWZRUN VXFKDVDORFDORUZLGHDUHDQHWZRUN other than WUDQVPLVVLRQRUUHFHSWLRQDSSDUDWXVRIKHDGLQJRUSDUWV WKHUHRI´+HDGLQJ HPSKDVLVVXSSOLHG ,QDGGLWLRQ&RQJUHVVDGGHGQHZ VXEKHDGLQJODQJXDJHDWIRU³RWKHUDSSDUDWXVIRUWUDQVPLVVLRQRUUHFHSWLRQ8QGHU6HFWLRQRIWKH2PQLEXV7UDGHDQG&RPSHWLWLYHQHVV$FWRI86,7& 3XE 'HF Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 33 of 52
RIYRLFHLPDJHVRURWKHUGDWD´DQG³PDFKLQHVIRUWKHUHFHSWLRQFRQYHUVLRQDQG WUDQVPLVVLRQRUUHJHQHUDWLRQRIYRLFHLPDJHVRURWKHUGDWD´ ,QWHUHVWLQJO\QHLWKHUSDUW\DGGUHVVHVH[SUHVVO\WKHDGGLWLRQRIH[FOXVLRQDU
ODQJXDJHLQWKHDPHQGPHQWVKRZHYHUERWKSDUWLHVDGGUHVVWKHH[FOXVLRQLQ PRUHJHQHUDOWHUPV'HIHQGDQWPHQWLRQVWKDW³WKHODQJXDJHGLGQRWGRDQ\WKLQJ´ WRUHPRYHWKHH[FOXVLRQ³VRWKHH[FOXVLRQVWLOOVWDQGV´7U2UDO$UJDW+RZHYHUDQ H[DPLQDWLRQRIWKHDUFKLYHGSUHDPHQGPHQWVWH[WRI+HDGLQJPDNHVFOHDU WKDWWKLVH[FOXVLRQZDVaddedLQLWGLGQRWVLPSO\JRXQFKDQJHG
'HIHQGDQWDUJXHVWKDWEXWIRUWKHH[FOXVLRQDU\FODXVH³WUDQVPLVVLRQDSSDUDWXV IRUWHOHYLVLRQ´FRXOGSRWHQWLDOO\EHFRQVLGHUHGDQ³DSSDUDWXVIRUWKHWUDQVPLVVLRQRI YRLFHLPDJHVRURWKHUGDWD´XQGHU+HDGLQJ7KXVGHIHQGDQWDUJXHVWKDW³WKH SODLQODQJXDJHRIKHDGLQJ>VLF@HVWDEOLVKHVWKDWZKHQWHOHYLVLRQVLJQDO>VLF@DUH LQYROYHGKHDGLQJ>VLF@FRQWUROV´'HI%UDW 3ODLQWLIIVHHNVWREXWWUHVVLWVDUJXPHQWZLWKUHVSHFWWRWKHLPSDFWRIWKH DPHQGPHQWVRQWKHODQJXDJHRI+HDGLQJE\QRWLQJWKDWQHZVXEKHDGLQJ ODQJXDJHZDVDOVRLQVHUWHGDWVXEKHDGLQJIRU³RWKHUDSSDUDWXVIRU WUDQVPLVVLRQRUUHFHSWLRQRIYRLFHLPDJHVRURWKHUGDWD´DQG³PDFKLQHVIRUWKH UHFHSWLRQFRQYHUVLRQDQGWUDQVPLVVLRQRUUHJHQHUDWLRQRIYRLFHLPDJHVRURWKHUGDWD´ 3O%UDW7KHODQJXDJHSULRUWRWKHDPHQGPHQWVZKLFKGLGQRWFRQWDLQWKHH[FOXVLRQDU
ODQJXDJHLVLQFOXGHGLQWKHSUHOLPLQDU\YHUVLRQRIWKH+7686See+7686 3UHOLP 7KHH[FOXVLRQDU\FODXVHILUVWDSSHDUHGDIWHUWKHDPHQGPHQWVLQ WKHEDVLFHGLWLRQSee+7686 7KLVVXJJHVWVWKDWWKHH[FOXVLRQDU
ODQJXDJHZDVDGGHGEHWZHHQWKHSXEOLFDWLRQRIWKH3UHOLPLQDU\DQG%DVLFHGLWLRQVRI WKH+7686 Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 34 of 52
3XUVXDQWWR*5,ZKHQPDNLQJFODVVLILFDWLRQGHFLVLRQVWKHFRXUWWDNHVDWRS GRZQDSSURDFKEHJLQQLQJ³DVLWPXVWZLWKWKHODQJXDJHRIWKHKHDGLQJV´DQGHQGLQJ ZLWKWKHODQJXDJHRIWKHVXEKHDGLQJVOrlando Food Corp.)GDW$VWKH )HGHUDO&LUFXLWVWDWHGLQWKDWFDVH³>:@KHQGHWHUPLQLQJZKLFKKHDGLQJLVWKHPRUH VSHFLILFDQGKHQFHWKHPRUHDSSURSULDWHIRUFODVVLILFDWLRQDFRXUWVKRXOGFRPSDUHRQO\ WKHODQJXDJHRIWKHKHDGLQJVDQGQRWWKHODQJXDJHRIWKHVXEKHDGLQJV2QO\DIWHU GHWHUPLQLQJWKDWDSURGXFWLVFODVVLILDEOHXQGHUWKHKHDGLQJVKRXOGWKHFRXUWORRNWRWKH VXEKHDGLQJVWRILQGWKHFRUUHFWFODVVLILFDWLRQIRUWKHPHUFKDQGLVH´See alsoGerson Co. v. United States&,7BBBB)6XSSG aff'd)G )HG&LU FLWLQJOrlando Food Corp.)GDW ,QWKLVUHJDUGSODLQWLII¶VSURIIHUHGLQWHUSUHWDWLRQRIWKHDPHQGPHQWVWR +HDGLQJLVLQFRQVLVWHQWZLWKERWKWKHH[FOXVLRQDU\FODXVHDGGHGE\WKRVH DPHQGPHQWVDQGSULQFLSOHVRIVWDWXWRU\LQWHUSUHWDWLRQ8QGHUWKHSUHDPHQGPHQW WH[WRI+HDGLQJWKHFRXUWFODULILHGWKDW³+HDGLQJFRYHUVWHOHJUDSKLF IXQFWLRQV´ David W. Shenk & Co. v. United States&,7)6XSS *LYHQWKLVKLVWRU\WKHSUHVHUYDWLRQRIDIRFXVRQWHOHSKRQHVLQWKHSRVW DPHQGPHQWWH[WDQGWKHDGGLWLRQRIODQJXDJHWKDWH[SUHVVO\H[FOXGHV PHUFKDQGLVHFODVVLILDEOHXQGHU+HDGLQJSODLQWLII¶VLQWHUSUHWDWLRQLVQRWDSW &XVWRPV¶7UDQVPLVVLRQ3DWK7KHRU\DQG'HIHUHQFHWR3ULRU 5XOLQJ/HWWHUV 3ODLQWLIIQH[WDUJXHVWKDW&XVWRPV¶+4+ 'HI([ ZKLFKFRQFHUQHG WKHFODVVLILFDWLRQRIWKHVXEMHFWPHUFKDQGLVHLVXQSHUVXDVLYHDQGWKHUHIRUHVKRXOGQRW Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 35 of 52
EHJLYHQGHIHUHQFHE\WKLVFRXUWSee3O%UDW ,QSDUWLFXODUSODLQWLIIFKDOOHQJHV WKHXVHE&XVWRPVLQ+4+RIDFODVVLILFDWLRQDSSURDFKWKDW&XVWRPVKDV ODEHOHGWKH³WUDQVPLVVLRQSDWKWKHRU\´DVXQIRXQGHGDQGLQFRQVLVWHQWO\DSSOLHGIdDW
7KHFRXUWGHWHUPLQHVWKDWWKH³WUDQVPLVVLRQSDWKWKHRU\´XVHGE&XVWRPVLQLWV +4+OHWWHU 'HI([ LVSHUVXDVLYHDQGGHVHUYLQJRIGHIHUHQFHLQUHODWLRQWR WKHFRQWH[WRIWKHLQVWDQWFDVH+RZHYHUWKHFRXUWUHVHUYHVMXGJPHQWDVWRWKH DSSOLFDELOLW\RIWKHVHUXOLQJOHWWHUVWRWKHSUHVHQWFDVHSHQGLQJWKHUHVROXWLRQRIWKH LVVXHRISULQFLSDOXVH $VQRWHGWKHFRXUWUHYLHZVFODVVLILFDWLRQFDVHVde novoSee 86& D &XVWRPV¶UXOLQJOHWWHUVDVH[SODQDWLRQVRIFODVVLILFDWLRQGHFLVLRQVDUH HQWLWOHGWRDOHYHORI³UHVSHFWSURSRUWLRQDOWRWKHLUSRZHUWRSHUVXDGH´United States v. Mead Corp.86 FLWLQJSkidmore v. Swift & Co.86 )DFWRUVWKDWLQIOXHQFHWKHSHUVXDVLYHSRZHURIDUXOLQJOHWWHULQFOXGHWKH DJHQF\¶VWKRURXJKQHVVORJLFDQGH[SHUWQHVVDQGFRQVLVWHQF\ZLWKSULRULQWHUSUHWDWLRQV Mead Corp., 86DW. &RQVLVWHQF\LQSDUWLFXODULQ&XVWRPV LQWHUSUHWDWLRQRID SURYLVLRQ³HQKDQFHVWKHSHUVXDVLYHSRZHURIWKDWLQWHUSUHWDWLRQ´Dell Prods. LP v. United States)G )HG&LU 7KHUHYHUVHDOVRDSSOLHV$ODFN RIFRQVLVWHQF\LQWKHXVHRIDQDSSURDFK³LQGLFDWHVWKDW&XVWRPVKDVQRWWKRURXJKO\
'HIHQGDQWGRHVQRWVHHNGHIHUHQFHIRU&XVWRPV¶5XOLQJ/HWWHU+4+3O5HS %UDWsee also'HI5HS%UDW ³3OH[XVDSSHDUVWRVXJJHVWWKDWVRPHPHDQLQJ VKRXOGEHDVFULEHGWRRXUGHFLVLRQQRWWRVHHNGHIHUHQFHIRU&XVWRPV¶5XOLQJ/HWWHU+4 +1RVXFKPHDQLQJH[LVWV$VZHGHPRQVWUDWHGLQRXUEULHILQJ&XVWRPV¶ FODVVLILFDWLRQRIWKHLPSRUWHGPHUFKDQGLVHLVWKHFRUUHFWRQHWKHGLVSXWHUHPDLQLQJ KHUHLVWKHFRUUHFWVWDWXWRU\PHDQLQJRIμWUDQVPLVVLRQDSSDUDWXVIRUWHOHYLVLRQ¶LQ +HDGLQJZKLFKLVVXEMHFWWRWKLV&RXUW¶Vde novoUHYLHZ´ Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 36 of 52
FRQVLGHUHGDSDUWLFXODUFODVVLILFDWLRQDQGXQGHUPLQHVWKHSHUVXDVLYHSRZHURILWV FRQFOXVLRQV´Sony Elecs., Inc. v. United States&,7
&XVWRPV¶WUDQVPLVVLRQSDWKWKHRU\LQEULHIVXJJHVWVWKDWSURGXFWVUHODWHGWR WHOHYLVLRQWUDQVPLVVLRQV\VWHPV³ZKLFKOLHLQWKHWUDQVPLVVLRQSDWKDUHFODVVLILHGLQ KHDGLQJ+7686DVWUDQVPLVVLRQDSSDUDWXV>IRUUDGLREURDGFDVWLQJRU WHOHYLVLRQ@´3O%UDWQ3ODLQWLIILPSOLHVWKDWLQWKHSDVW&XVWRPVFRQVLGHUHGWKH FODVVLILFDWLRQRISURGXFWVWKDWZHUHDUJXDEO\³LQWKHWUDQVPLVVLRQSDWK´DQGWKXVVKRXOG KDYHEHHQFODVVLILHGLQ+HDGLQJLQVWHDGSODLQWLIIDUJXHV&XVWRPVFODVVLILHG WKRVHSURGXFWVLQRWKHUKHDGLQJVVXFKDV+HDGLQJDV³DSSDUDWXVIRUWKH WUDQVPLVVLRQRUUHFHSWLRQRIYRLFHLPDJHVRURWKHUGDWD´See id.DW )RUH[DPSOHSODLQWLIIGLVFXVVHVSUHYLRXV&XVWRPV¶UXOLQJOHWWHUV+4 'HF DQG1HZ<RUN5XOLQJ/HWWHU ³1<´ 1 $XJ ZKLFK FODVVLILHG&LVFRVZLWFKHVXQGHU+HDGLQJId. DWQ,QWKHVHOHWWHUV&XVWRPV GLGQRWVWDWHWKDWWKH&LVFRVZLWFKHVOLH³LQWKHWUDQVPLVVLRQSDWK´HYHQWKRXJKWKH &LVFRVZLWFKHVZHUHSODFHGEHWZHHQ+DUPRQLF¶VHQFRGHUVDQGPXOWLSOH[HUVId. DW Vee also 3O([% +DUPRQLF*UDSKLF 3ODLQWLIIFRQWHQGVWKDW&XVWRPVVKRXOGKDYH IRXQGWKH&LVFRVZLWFKHVDOVRWRKDYHEHHQ³LQWKHWUDQVPLVVLRQSDWK´DQGWKDW &XVWRPV¶IDLOXUHWRGRVRLVDQH[DPSOHRILQFRQVLVWHQWDSSOLFDWLRQRIWKHWUDQVPLVVLRQ SDWKWKHRU\3O%UDW 6LPLODUO\SODLQWLIISRLQWVWR&XVWRPV¶IDLOXUHWRXVHLWVWUDQVPLVVLRQSDWKWKHRU\WR FODVVLI\SURGXFWVLQ+HDGLQJLQWKHIROORZLQJVHYHQUXOLQJOHWWHUVDVIXUWKHU HYLGHQFHRIWKHODFNRIFRQVLVWHQF\LQWKHDSSOLFDWLRQRIWKHWUDQVPLVVLRQSDWKWKHRU\
+4 6HSW 1<0 2FW +4+ 6HSW Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 37 of 52
1<1 0D\ +4+ -XQH 1< 1 'HF DQG 1<5 6HSW IdDW±Q &XVWRPVUHVSRQGVWKDW³3OH[XV¶FODLPVRILQFRQVLVWHQWDSSOLFDWLRQDUH XQIRXQGHG´'HI%UDW&XVWRPVILUVWTXRWHVIURP+4+ 'HI([ LQ ZKLFK&XVWRPVPDGHWKHIROORZLQJVWDWHPHQW &%3KDVDORQJVWDQGLQJOLQHRIGHFLVLRQVZKLFKKDYH>VLF@GHWHUPLQHGWKDW FRPSRQHQWVRIWHOHYLVLRQWUDQVPLVVLRQV\VWHPVZKLFKOLHLQWKHWUDQVPLVVLRQ SDWKUHFHLYHDVLJQDODQGWKHRXWSXWRIZKLFKLVUHOD\HGRUIHGIXUWKHULQWKH WUDQVPLVVLRQV\VWHPIRUHYHQWXDOILQDOUHFHSWLRQDQGGLVSOD\DUHFODVVLILHG LQKHDGLQJ>VLF@+7686DVWUDQVPLVVLRQDSSDUDWXV 7KHUXOLQJOHWWHUVRQZKLFK&XVWRPVUHOLHGIRUVXSSRUWLQWKHLQVWDQWFDVHDUH +4 'HF +4 )HE +4 $SU +4+ 'HF DQG +4+ 2FW See'HI([
7RGHWHUPLQHWKHH[WHQWWRZKLFK&XVWRPV¶WUDQVPLVVLRQSDWKWKHRU\LVZHOO IRXQGHGDQGFRQVLVWHQWO\DSSOLHGDQGWKHUHIRUHWKHH[WHQWWRZKLFKWKHFRXUWFRQVLGHUV WKHSULRUSUDFWLFHWREHSHUVXDVLYHLQWKLVFDVHWKHFRXUWILUVWH[DPLQHVWKHUXOLQJOHWWHUV FLWHGE\SODLQWLII,QUHJDUGWR+4DQG1<1FRQFHUQLQJWKH&LVFR VZLWFKHVSODLQWLII¶VDUJXPHQWLVIODZHGEHFDXVHWKH&LVFRVZLWFKHVLQFOXGHGLQ +DUPRQLF(05VGLIIHUIURPWKHRQHVWKDW&XVWRPVFRQVLGHUHGLQWKRVHGHFLVLRQV)RU SODLQWLII¶VDUJXPHQWWREHFRUUHFWWKH&LVFRVZLWFKHVWRZKLFKSODLQWLIIUHIHUVWKDWDUH XVHGLQ+DUPRQLF(05VDQGWKH&LVFRVZLWFKHVDWLVVXHLQ+4DQG1< 1ZRXOGQHHGWREHWKHVDPHRUDWOHDVWUHODWLYHO\VLPLODU+RZHYHUWKH\DUH QHLWKHU,QSDUWLFXODUWKH&LVFRVZLWFKHVLQ+DUPRQLF(05VDSSHDUWREHIURPWKH 6HULHVDQG6HULHVZKHUHDVWKHRQHVFRQVLGHUHGLQ+4DQG1<1 Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 38 of 52
ZHUHWKH&LVFR&DWDO\VW6HULHV6ZLWFKHVIRU,QWHUQHW3URWRFRO ,3 WHOHSKRQ\See 3O([%+4DW1<10RUHRYHUXQOLNHWKH&LVFRVZLWFKHVXVHG LQ+DUPRQLF(05VWKHVZLWFKHVDWLVVXHLQ+4DQG1<1RSHUDWHGLQ SURGXFWVWKDWGLGQRWVHUYHWKHIXQFWLRQRIWHOHYLVLRQVLJQDOWUDQVPLVVLRQDQGWKHUHIRUH GRQRWSURYLGHDQDSSURSULDWHFRPSDULVRQId. 6SHFLILFDOO\LQ+4WKHLVVXHZDVZKHWKHUDOLQHFDUG SULQWHGFLUFXLW DVVHPEO\ XVHGH[FOXVLYHO\LQ&LVFR&DWDO\VW6HULHV6ZLWFKHVIRU,QWHUQHW3URWRFRO ,3 WHOHSKRQ\ZDVSURSHUO\FODVVLILHGXQGHU+HDGLQJDVDQHOHFWULFDODSSDUDWXV IRUOLQHWHOHSKRQ\DQGOLQHWHOHJUDSK\See+4DW,QWKDWFDVH&XVWRPV FODVVLILHGWKHSURGXFWLQ+HDGLQJEHFDXVHWKHSURGXFW¶VVROHXVHZDVLQVZLWFKHV IRU,3WHOHSKRQ\DQGWKHOLQHFDUGZDVVSHFLILFDOO\SURYLGHGIRULQVXEKHDGLQJ +7686Id.DW6LPLODUO\LQ1<1&XVWRPVGHWHUPLQHGWKDW &LVFR&DWDO\VW6HULHV6ZLWFKHVGHVFULEHGDV³FRPSXWHUQHWZRUNKRVWLQJ HTXLSPHQW´ZHUHSURYLGHGIRULQVXEKHDGLQJ+7686See1<1 ,QVXPLQERWK+4DQG1<1WKHSURGXFWVDWLVVXHZHUHVSHFLILFDOO
LGHQWLILHGLQ+HDGLQJ$FFRUGLQJO\LQERWKFDVHV&XVWRPV¶WUDQVPLVVLRQSDWK WKHRU\ZKLFKLVXVHGWRFODVVLI\SURGXFWVUHODWHGWRWHOHYLVLRQWUDQVPLVVLRQV\VWHPVLQ +HDGLQJZDVQRWUHOHYDQW $VWRWKHUHPDLQLQJVHYHQUXOLQJOHWWHUVFLWHGE\SODLQWLIIQRQHRIWKHOHWWHUV LQGLFDWHVWKDW&XVWRPVKDVDSSOLHGLWVWUDQVPLVVLRQSDWKWKHRU\LQDQLQFRQVLVWHQW PDQQHU,Q+4ZKLFKFRQFHUQHGYLGHRHGLWLQJHTXLSPHQWSODLQWLIILVFRUUHFWLQ QRWLQJWKDW&XVWRPVGLGQRWPHQWLRQWKHWUDQVPLVVLRQSDWKWKHRU$V&XVWRPV H[SODLQHGLQDPRUHUHFHQWGHFLVLRQ+4+ZKLFKFRQFHUQHGD'LPDJH Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 39 of 52
SURFHVVRUWKHYLGHRHGLWLQJSURFHVVRFFXUVRXWVLGHRIWKHWHOHYLVLRQWUDQVPLVVLRQSDWK DQGWKXVGRHVQRWIDOOXQGHU+HDGLQJSee+4+DW 6LPLODUO\1<0GRHVQRWVXSSRUWSODLQWLII¶VLQFRQVLVWHQWXVDJHDUJXPHQW EHFDXVHLQWKDWFDVHWKHSURGXFWDWLVVXHZDVDPRELOHFROODERUDWLRQGHYLFHWKDWGLGQRW EURDGFDVWWRDODUJHHQRXJKSRSXODWLRQWREHFRQVLGHUHGDWHOHYLVLRQGHYLFHSee1< 0DW,QRWKHUZRUGV&XVWRPVGLGQRWQHHGWRDSSO\LWVWUDQVPLVVLRQSDWK WKHRU\EHFDXVH&XVWRPVKDGDOUHDG\GHWHUPLQHGWKDWWKHQDWXUHRIWKHSURGXFW SUHFOXGHGFODVVLILFDWLRQXQGHU+HDGLQJ Id. $GGLWLRQDOO\1<1GRHVQRWSURYLGHJXLGDQFHLQWKHSUHVHQWFDVH EHFDXVHWKDWUXOLQJUHOLHGRQDSSOLFDWLRQRIDGLIIHUHQWVWDWXWRU\LQVWUXFWLRQ*5, F ,Q WKDWOHWWHU&XVWRPVGHWHUPLQHGWKDWDXGLRYLGHRSURGXFWLRQXQLWVZHUHQRWprima facie FODVVLILDEOHXQGHU+HDGLQJDVWKHKHDGLQJGRHVQRWFRYHUWKHHGLWLQJIXQFWLRQRI WKHSURGXFWLRQXQLWV See1<1DW&XVWRPVXOWLPDWHO\FODVVLILHGWKHSURGXFWV XVLQJ*5, F Id. 8QGHU*5, F WKHTXHVWLRQLVQRWZKHWKHUWKHSURGXFWLVprima facie FODVVLILDEOHXQGHUWKHODQJXDJHRIDSDUWLFXODUKHDGLQJDVLQ*5,EXWUDWKHU ZKLFKRIWZRRUPRUHSRVVLEOHKHDGLQJVRFFXUVODVWLQQXPHULFDORUGHU7KHUHIRUH1< 1LVLQDSSRVLWHEHFDXVHLWFRQFHUQHGWKHDSSOLFDWLRQRIDGLIIHUHQW*5,LQD GLIIHUHQWFRQWH[W )XUWKHUWKHUHPDLQLQJWKUHHOHWWHUVDOVRGRQRWSURYLGHJXLGDQFHLQWKLVFDVHZLWK UHVSHFWWR&XVWRPV¶XVHRIWKHWUDQVPLVVLRQSDWKWKHRU\,Q+4+ZKLFK LQYROYHGFRD[LDOFDEOHV&XVWRPVGLGQRWQHHGWRDSSO\LWVWUDQVPLVVLRQSDWKWKHRU\WR FODVVLI\WKHSURGXFWLQ+HDGLQJEHFDXVH+HDGLQJVSHFLILFDOO\SURYLGHVIRU FRD[LDOFDEOHVSee+4+DW6LPLODUO\LQ1<1&XVWRPVGLGQRW Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 40 of 52
QHHGWRDSSO\LWVWUDQVPLVVLRQSDWKWKHRU\EHFDXVHWKHSURGXFWDWLVVXHDYLGHR FRQIHUHQFLQJV\VWHPZDVSULPDIDFLHFODVVLILDEOHXQGHU+HDGLQJSee1< 1DW/LNHZLVH1<5FDQEHGLVWLQJXLVKHGEHFDXVHWKHSURGXFWDWLVVXH ZDVSULQFLSDOO\XVHGIRUYRLFHDQGGDWDWUDQVPLVVLRQDQGWKXVIHOOXQGHU+HDGLQJ See+4+DW GLVWLQJXLVKLQJWKHPHUFKDQGLVHLQ1<5IURP3OH[XV HQFRGHUVEHFDXVHWKHIRUPHUZDVFDSDEOHRIWUDQVPLWWLQJWHOHSKRQLFGDWDVLJQDOV ,QVXPSODLQWLIIKDVIDLOHGWRHVWDEOLVKWKDW&XVWRPV¶WUDQVPLVVLRQSDWKWKHRU\LV HLWKHUXQIRXQGHGRULQFRQVLVWHQWO\DSSOLHG7KHFRXUWQH[WFRQVLGHUVWKHILYHUXOLQJ OHWWHUVFLWHGE&XVWRPVLQLWVIRXQGDWLRQDOUXOLQJOHWWHURQWKHWUDQVPLVVLRQSDWKWKHRU
See +4+ 'HI([ 7KHUXOLQJOHWWHUVFLWHGE&XVWRPVSURYLGHVWURQJVXSSRUWIRU&XVWRPV¶ WUDQVPLVVLRQSDWKWKHRU,Q+4IRUH[DPSOH&XVWRPVGHWHUPLQHGWKDWD FRPSRQHQWRIDGLJLWDOVDWHOOLWHV\VWHPWKDWLVXVHGIRUWHOHYLVLRQLVSURSHUO\FODVVLILHGLQ +HDGLQJQRWLQJWKDWWKHSURGXFWLV³LQWKHWUDQVPLVVLRQSDWKEXWLWLVQRWDWWKH HQGRIWKHWUDQVPLVVLRQSDWKZKHUHILQDOUHFHSWLRQDQGYLHZLQJWDNHV>VLF@SODFH´+4 DW TXRWLQJ+4DW 'HF 6LPLODUO\LQ+4 &XVWRPVGHWHUPLQHGWKDWDFRPSRQHQWRIDWHOHYLVLRQVDWHOOLWHGLVKVKRXOGEHFODVVLILHG LQ+HDGLQJEHFDXVHDVLQWKHFDVHRIWKHGLJLWDOVDWHOOLWHV\VWHPFRQVLGHUHGLQ+4 LW³OLHVLQWKHWUDQVPLVVLRQSDWK´DQGUHFHLYHVVLJQDOVDQGUHOD\VWKHPIRUILQDO UHFHSWLRQDQGGLVSOD+4DW ,Q+4&XVWRPVFRQVLGHUHGWKHFODVVLILFDWLRQRIHQFRGHUVWKDWDUHXVHG WRFRPSUHVVVLJQDOVIRUHYHQWXDOWHOHYLVLRQWUDQVPLVVLRQ²PXFKOLNHWKH+DUPRQLF (05VDWLVVXHLQWKHSUHVHQWFDVH²DQGGHWHUPLQHGWKDWWKH\DUHFRYHUHGXQGHU Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 41 of 52
+HDGLQJ7KHUH&XVWRPVFLWHGDQRWKHUUXOLQJOHWWHU+4 0D\ LQVXSSRUWRILWVFRQFOXVLRQSee+4DW,Q+4&XVWRPVFODVVLILHGD W\SHRIVLJQDOSURFHVVRUXQGHU+HDGLQJZKLOHQRWLQJWKDWWKHSURGXFWLV³LQWKH WUDQVPLVVLRQSDWKEXWLWLVQRWDWWKHHQGRIWKHWUDQVPLVVLRQSDWKZKHUHILQDOUHFHSWLRQ DQGYLHZLQJWDNHVSODFH´+4DW )XUWKHULQ+4+DSUHYLRXV3OH[XVUXOLQJ&XVWRPVIRXQGWKDWWKH HQFRGHUVDWLVVXHZHUHDSSDUDWXVIRUWHOHYLVLRQWUDQVPLVVLRQLQ+HDGLQJSee+4 +DW7KHUHWKHNH\LQTXLU\LQYROYHGWKHW\SHRIVLJQDOEHLQJWUDQVPLWWHG Id.DW&XVWRPVIRXQGWKDWWKHHQFRGHUVGLGQRWWUDQVPLWWHOHSKRQLFGDWDVLJQDOVDQG WKHUHIRUHGLGQRWILWXQGHU+HDGLQJId. )LQDOO\LQ+4+&XVWRPVREVHUYHGWKDWILOWHUVWKDWDOWHUFDEOHWHOHYLVLRQ WUDQVPLVVLRQ³OLHLQWKHWUDQVPLVVLRQSDWKUHFHLYHDVLJQDODQGUHOD\VLJQDOVIXUWKHU LQWKHWUDQVPLVVLRQV\VWHPIRUHYHQWXDOILQDOUHFHSWLRQDQGGLVSOD\´+4+DW7DNHQDVDZKROHWKHVHUXOLQJOHWWHUVFLWHGE&XVWRPVLQGLFDWHWKDW&XVWRPV KDVFRQVLVWHQWO\DSSOLHGLWVWUDQVPLVVLRQSDWKWKHRU\WRFODVVLI\WHOHYLVLRQWUDQVPLVVLRQ HTXLSPHQWWKDWOLHVLQWKHWUDQVPLVVLRQSDWKUHFHLYHVDVLJQDODQGUHOD\VDQRXWSXW IXUWKHUGRZQWKHWUDQVPLVVLRQV\VWHPDQGIRUWKRVHUHDVRQVLVSURSHUO\FODVVLILHGLQ +HDGLQJ&RQWUDU\WRSODLQWLII¶VDVVHUWLRQV&XVWRPVKDVVKRZQFRQVLVWHQF\LQLWV DSSOLFDWLRQRIWKH³WUDQVPLVVLRQSDWKWKHRU\´WRFODVVLI\FRPSRQHQWVRIWHOHYLVLRQ WUDQVPLVVLRQV\VWHPVXQGHU+HDGLQJ7KHFRXUWUHVHUYHVMXGJPHQWDVWRWKH DSSOLFDELOLW\RIWKHVHUXOLQJOHWWHUVWRWKHSUHVHQWFDVHSHQGLQJWKHUHVROXWLRQRIWKH LVVXHRISULQFLSDOXVH+RZHYHUWKHFRXUWGHWHUPLQHVWKDWWKH³WUDQVPLVVLRQSDWK Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 42 of 52
WKHRU\´XVHGE&XVWRPVLQLWV+4+OHWWHU 'HI([ LVSHUVXDVLYHDQG GHVHUYLQJRIGHIHUHQFHLQUHODWLRQWRWKHFRQWH[WRIWKHLQVWDQWFDVH 5HOHYDQFHRIWKH&&3$Ampex'HFLVLRQ
)LQDOO\GHIHQGDQWXUJHVWKHFRXUWWRORRNWRDGHFLVLRQRIWKH86&RXUWRI &XVWRPVDQG3DWHQW$SSHDOV ³&&3$´ WKDWLQWHUSUHWHGDSSDUDWXVRIWHOHYLVLRQ WUDQVPLVVLRQWR³SHUIRUPDQ\RIDZLGHYDULHW\RIIXQFWLRQVLQFRQQHFWLRQZLWKWHOHYLVLRQ WUDQVPLVVLRQDQGUHFHSWLRQ´LQWKHFODVVLILFDWLRQRIWHOHYLVLRQFDPHUDFDEOHVUnited States v. Ampex Corp.&&3$)G $VGLVFXVVHG EHORZWKHFRXUWFRQVLGHUVWKH&&3$¶VFKDUDFWHUL]DWLRQLQAmpexRI³WHOHYLVLRQ WUDQVPLVVLRQDSSDUDWXV´LQVWUXFWLYHDOEHLWQRWSHUVXDVLYH 3ODLQWLIIDUJXHVWKDWAmpexVKRXOGQRWDSSO\WRWKHSUHVHQWFDVHIRUWKUHH UHDVRQV)LUVWEHFDXVHWKHDSSHDOVFRXUWDQDO]HGAmpex XQGHUWKH7DULII6FKHGXOHRI WKH8QLWHG6WDWHV ³7686´ UDWKHUWKDQWKH+7686LWVDQDO\VLVGRHVQRWSURYLGH JXLGDQFH3O5HS%UDW6HFRQGEHFDXVHWKH&&3$DSSOLHGWKHUXOHRI³UHODWLYH VSHFLILFLW\´ZKLFKKDVVLQFHEHHQFRGLILHGLQ+7686DW5,WKHAmpex FRXUW¶V DQDO\VLVLVLQDSSOLFDEOHWRWKHSUHVHQWDFWLRQEHFDXVHLWLQYROYHVFODVVLILFDWLRQSXUVXDQW WR5,Id7KLUGEHFDXVHWKHAmpex FRXUWGHULYHGLWVPHDQLQJRI³WUDQVPLVVLRQ DSSDUDWXV´IURPDVLQJOHOH[LFRJUDSKLFVRXUFHIURP\HDUVDJRLWVLQWHUSUHWDWLRQLV LQDSSOLFDEOHId 7KH)HGHUDO&LUFXLWKDVKHOGWKDWWKH&&3$¶VSULRUGHWHUPLQDWLRQRIDFRPPRQ PHDQLQJRIDWHUPEDVHGRQDQLQWHUSUHWDWLRQRIDWDULIISURYLVLRQXQGHUWKH7686LV QRWFRQWUROOLQJDVWRDGHWHUPLQDWLRQXQGHUWKH+7686:KHUHWKHODQJXDJHRIWKH SURYLVLRQVRIWKH7686DQGWKH+7686LVLGHQWLFDOGHFLVLRQVLQWHUSUHWLQJWKH7686 Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 43 of 52
PD\EHLQVWUXFWLYHEXWWKH\DUHQRWGLVSRVLWLYH JVC Co. of Am. v. United States )G )HG&LU 7KHUHOHYDQWSRUWLRQRI+HDGLQJ7686UHIHUVWR³UDGLREURDGFDVWLQJDQG WHOHYLVLRQWUDQVPLVVLRQDQGUHFHSWLRQDSSDUDWXV´7KHUHOHYDQWSRUWLRQRI+HDGLQJ +7686VWDWHV³WUDQVPLVVLRQDSSDUDWXVIRUUDGLREURDGFDVWLQJDQGWHOHYLVLRQ´ $OWKRXJKWKHWZRSURYLVLRQVDUHQRWLGHQWLFDOWKHLUGLIIHUHQFHDVSHUWDLQLQJWRWKHLVVXHV LQWKLVFDVHLVRQO\LQWKHRUGHURIWKHWHUPV 7KHFRXUWILQGVSODLQWLII¶VVHFRQGUHDVRQXQFRQYLQFLQJ7KH&&3$¶V LQWHUSUHWDWLRQRI³WUDQVPLVVLRQDSSDUDWXV´FRPHVEHIRUHDQGLVVHSDUDWHHQWLUHO\IURP WKH&&3$¶VDSSOLFDWLRQRI³UHODWLYHVSHFLILFLW\´+HUHWKHFRXUWLVFRQFHUQHGRQO\ZLWK WKH&&3$¶VLQWHUSUHWDWLRQRIDWDULIIWHUP'HIHQGDQW VUHOLDQFHRQAmpexLVPRUH OLPLWHGWKDQSODLQWLIIDVFULEHV'HIHQGDQWUHOLHVRQAmpexRQO\DVSHUVXDVLYHDXWKRULW\ WRVXSSRUWDEURDGLQWHUSUHWDWLRQRI³WUDQVPLVVLRQDSSDUDWXVIRUUDGLREURDGFDVWLQJRU WHOHYLVLRQ´'HI5HS%UDW'HIHQGDQWGRHVQRWUHO\RQDUJXPHQWVUHODWLQJWR &&3$¶VGLVFXVVLRQRI³UHODWLYHVSHFLILFLW\´$VDFRQVHTXHQFHSODLQWLII VDUJXPHQWVDUH XQVXFFHVVIXOLQXQGHUPLQLQJGHIHQGDQW VFLWDWLRQRIAmpex 7KHFRXUWDOVRFRQVLGHUVSODLQWLII¶VWKLUGUHDVRQXQFRQYLQFLQJ,QAmpexWKH DSSHDOVFRXUWUHFDOOVDFKDSWHURQ7HOHYLVLRQ6\VWHPV)XQGDPHQWDOVLQDERRN HQWLWOHGTelevision Broadcasting LQDUULYLQJDWWKHFRXUW¶VGHILQLWLRQRI³WHOHYLVLRQ WUDQVPLVVLRQ´Ampex)GDW7KHUHLVQRLQGLFDWLRQWKDWWKHXQGHUVWDQGLQJ RIWKHWHUPV³WUDQVPLVVLRQ´RU³WHOHYLVLRQ´KDYHFKDQJHGVLJQLILFDQWO\VLQFHWKH&&3$ SXEOLVKHGWKLVRSLQLRQ7KHUHIRUHWRGHQ\WKHFKDUDFWHUL]DWLRQRI³WUDQVPLVVLRQ Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 44 of 52
DSSDUDWXV´SURYLGHGE\DQLQGXVWU\VSHFLILFVRXUFHRQZKLFKWKHFRXUWUHOLHGZRXOGEH DUELWUDU\ ,QVXPWKHFRXUWFRQVLGHUVWKH&&3$¶VFKDUDFWHUL]DWLRQLQAmpexRI³WHOHYLVLRQ WUDQVPLVVLRQDSSDUDWXV´LQVWUXFWLYHDOEHLWQRWSHUVXDVLYH7KHLQWHUSUHWDWLRQE\WKH DSSHDOVFRXUWRIWKHWHUPVDVWR³SHUIRUPDQ\RIDZLGHYDULHW\RIIXQFWLRQVLQ FRQQHFWLRQZLWKWHOHYLVLRQWUDQVPLVVLRQDQGUHFHSWLRQ´VXSSRUWVWKHLQWHUSUHWDWLRQRI ³WUDQVPLVVLRQDSSDUDWXVIRUWHOHYLVLRQ´GLVFXVVHGsupraVHFWLRQ,,,$DVGHYLFHV GHVLJQHGIRUWKHSXUSRVHRIVHQGLQJVLJQDOVIURPRQHORFDWLRQWRDQRWKHUIRUWKH HYHQWXDOWUDQVPLVVLRQRIYLHZLQJWHOHYLVLRQFRQWHQW7KHAmpex FRXUW¶VLQWHUSUHWDWLRQLV FRQVLVWHQWDOVRZLWKWKHGHVFULSWLRQRI³WUDQVPLVVLRQSDWK´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¶VLQTXLU\EHJLQVZLWKZKHWKHUWKHVXEMHFWPHUFKDQGLVHLVSURSHUO\ FODVVLILHGLQ+HDGLQJFaus Group, Inc. v. United States)G )HG&LU $VQRWHGDERYHDQGDVHODERUDWHGEHORZWKHFRXUWGHWHUPLQHVWKDW IDFWXDOLVVXHVUHJDUGLQJWKHSULQFLSDOXVHRIWKHVXEMHFWPHUFKDQGLVHUHPDLQ Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 45 of 52
XQUHVROYHG&RQVHTXHQWO\WKHFRXUWGRHVQRWUHDFKDFRQFOXVLRQDVWRZKHWKHUWKH SURSHUFODVVLILFDWLRQRIWKHVXEMHFWPHUFKDQGLVHLV+HDGLQJZKLFKLVFRPSULVHGRI SDUWVVXLWDEOHIRUXVHVROHO\RUSULQFLSDOO\ZLWKWKHDSSDUDWXVRI+HDGLQJRU +HDGLQJ +HDGLQJ 7KHUHOHYDQWODQJXDJHLQ+HDGLQJGHVFULEHVSURSHUO\FODVVLILHGSURGXFWVDV ³WUDQVPLVVLRQDSSDUDWXVIRUWHOHYLVLRQ´:KHWKHU+HDGLQJFRYHUVWKH +DUPRQLF(05VWKDWDUHWKHVXEMHFWRIWKLVFDVHGHSHQGVVSHFLILFDOO\RQZKHWKHUWKH HTXLSPHQWVHQGVGDWDWKDWZLOOEHXVHGSULQFLSDOO\IRUYLHZLQJWHOHYLVLRQFRQWHQWDV RSSRVHGWRYLGHRFRQIHUHQFLQJRURWKHUFRQWHQW 3ODLQWLIIUHOLHVRQWKH6FKRQIHOG([SHUW5HSRUWWRVXSSRUWWKHDUJXPHQWWKDW³>W@KH GDWDWKDWLV>VLF@FRPSUHVVHGDQGPXOWLSOH[HGE\WKH+DUPRQLFHQFRGHUVPXOWLSOH[HUV DQGUHPXOWLSOH[HUVXOWLPDWHO\FDQEHOLVWHQHGWRDQGZDWFKHGRQVPDUWSKRQHVSHUVRQDO FRPSXWHUVDQGRWKHUGHYLFHVQRWOLPLWHGWRWHOHYLVLRQVRUUDGLRVDQGFDQFRQVLVWRI YLGHRFRQIHUHQFLQJDQGRWKHUDXGLRYLGHRFRQWHQWWKDWLVQRWWHOHYLVLRQRUUDGLR SURJUDPPLQJ´3O6WPW)DFWV FLWLQJ3O([) 6FKRQIHOG([SHUW5HSRUW DW 3O([, 'HSRVLWLRQRI'DQ6FKRQIHOG ³6FKRQIHOG'HS´ DW 7KH6FKRQIHOG([SHUW5HSRUWDQGGHSRVLWLRQGRQRWVXSSRUWSODLQWLII¶VFRQFOXVLRQ 6FKRQIHOGLQKLVWHVWLPRQ\GHVFULEHGKRZHQFRGHUVPXOWLSOH[HUVDQGUHPXOWLSOH[HUVDUH generally XVHGDQGKRZWKH+DUPRQLF(05Vcan EHXVHG+RZHYHU6FKRQIHOGPDGH FOHDUWKDWKHZDVQRWIDPLOLDUZLWK+DUPRQLF¶VEXVLQHVVRUWKHFXVWRPHUVIRUWKHVXEMHFW PHUFKDQGLVH3O([, 6FKRQIHOG'HS DW)RUH[DPSOHZKHQDVNHGLIKHNQHZ ZKHWKHUWKH+DUPRQLF(05V³DUHXVHGRYHUWKH,QWHUQHWZKHWKHUWKH\ UHXVHGZLWKD FDEOHV\VWHPRUXVHGVRPHRWKHUZD\´6FKRQIHOGUHVSRQGHG³,GRQRWNQRZ´Id Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 46 of 52
:KHQDVNHGLIWKHUHLV³DZD\WRWHOOE\ORRNLQJDWNLQGRI>VLF@WKHGHVFULSWLRQRIWKH VSHFLILFDWLRQVWRVHHLIWKDWZRXOGWHOOXVKRZDSDUWLFXODUGHYLFHLVEHLQJXVHG´KH UHVSRQGHGWKDWWKHUHLV³QRZD\WRWHOOH[DFWO\KRZLW¶VEHLQJXVHG´Id/DWHUZKHQ DVNHGLIKHGLGQRW³NQRZZLWKVSHFLILFLW\KRZ+DUPRQLFLVXVLQJWKHLUSDUWLFXODUILQLVKHG SURGXFWV´6FKRQIHOGUHVSRQGHG³7KDW VULJKW,GRQRWNQRZ´IdDW ([SHUWZLWQHVV(ULF$UPVWURQJLV+DUPRQLF¶V9LFH3UHVLGHQWRI6DD66ROXWLRQV 8QOLNH6FKRQIHOG$UPVWURQJZDVIDPLOLDUZLWKWKHZD\VLQZKLFK+DUPRQLF¶VFXVWRPHUV XVHGWKH(05V'HI([ $UPVWURQJ'HS DW$IWHUEHLQJDVNHGWRGHVFULEHWKH QLQHSURGXFWVWKDWFRPSULVHWKHVXEMHFWPHUFKDQGLVH$UPVWURQJGHVFULEHGWKHPDV EHLQJ³XVHGLQ>+DUPRQLF¶V@FXVWRPHUV LQIUDVWUXFWXUH7KHLU primary purposeLVYLGHR DQGDXGLRFRPSUHVVLRQDQGPXOWLSOH[LQJ´Id. DW HPSKDVLVVXSSOLHG ZLWKWKHWHUP FRPSUHVVLRQEHLQJ³>S@ULPDULO\DERXWUHGXFLQJWKHEDQGZLGWKRIYLGHRWKHDPRXQWRI VSDFHLWZRXOGRFFXS\RQDVWRUDJHGHYLFHRUWKHDPRXQWRIEDQGZLGWKLWZRXOGRFFXS\ DVWKHYLGHRLVWUDQVPLWWHG for a T.V. service´Id HPSKDVLVVXSSOLHG $UPVWURQJH[SUHVVHGWKHYLHZWKDW+DUPRQLF¶VcustomersDUHSULPDULO\WHOHYLVLRQ VHUYLFHSURYLGHUVIdDWDQGsee also'HI%UDW6LPLODUO\ +DUPRQLF¶V'LUHFWRURI3URGXFW/LQH0DQDJHPHQWIRU&RPSUHVVLRQDQG6WUHDP 3URFHVVLQJ1HLO%U\GRQDOVRGHFODUHGWKDW³+DUPRQLF VHQFRGHUVPXOWLSOH[HUVDQG UHPXOWLSOH[HUVDUHRSWLPL]HGIRUXVHLQFDEOHVDWHOOLWH,379DQGWHUUHVWULDODSSOLFDWLRQV´ 3O([' 'HFODUDWLRQRI1HLO%U\GRQ ³%U\GRQ'HFODUDWLRQ´ DW)LQDOO\DWRUDO DUJXPHQWGHIHQGDQWGHFODUHGWKDW9HUL]RQXVHVWKHVXEMHFWPHUFKDQGLVHWRSURYLGH WHOHYLVLRQFRQWHQWDQGQRWWHOHSKRQ\ZKLFKLVFRYHUHGE\+HDGLQJ7U2UDO$UJ DW Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 47 of 52
$JDLQWKHUHFRUGLQGLFDWHVDODFNRIDJUHHPHQWEHWZHHQSODLQWLIIZKLFKDUJXHV WKDWFXVWRPHUVVXFKDV9HUL]RQPD\XVHWKHSURGXFWVWKDWFRPSULVHWKHVXEMHFW PHUFKDQGLVHLQDYDULHW\RIZD\V3O%UDWZKLOHGHIHQGDQWDVVHUWVWKDWWRWKH H[WHQWWHOHSKRQHSURYLGHUVVXFKDV9HUL]RQXVHWKRVHSURGXFWVWKHSURYLGHUVXVHWKHP SULPDULO\WRSURYLGH³,379´VHUYLFHV'HI([ $UPVWURQJ'HS DW 7KHFRXUWQH[WFRQVLGHUVZKHWKHU+HDGLQJLVWKHDSSURSULDWHFODVVLILFDWLRQ LQUHVSHFWRIWKHODQJXDJHRI³WUDQVPLVVLRQ´LQWKHKHDGLQJ)RUH[DPSOH%U\GRQ FODULILHGLQDGHFODUDWLRQWKDWWKH+DUPRQLF(05V³GHOLYHU´DVLJQDO+HVWDWHGWKDW³LQ FDEOHRUVDWHOOLWHGHOLYHU\DSSOLFDWLRQVPRGXODWLRQDQGWUDQVPLVVLRQHTXLSPHQWLV UHTXLUHGDIWHUWKHHQFRGHUPXOWLSOH[HURUUHPXOWLSOH[HUWRHQDEOHWKHVLJQDOWREH GHOLYHUHGRYHUWKHDFFHVVPHGLXP6LPLODUO\LQDQ,379DSSOLFDWLRQthe encoder, multiplexer or remultiplexer delivers the signalWRD'6/$0 'LJLWDO6XEVFULEHU/LQH $FFHVV0XOWLSOH[HU WKDWWKHQWUDQVPLWVWKHVLJQDOWRPXOWLSOHVXEVFULEHUVRYHUWKH WHOHSKRQHQHWZRUNWRWKHFRQVXPHUUHFHSWLRQHTXLSPHQW´3O([' %U\GRQ 'HFODUDWLRQ DW HPSKDVLVVXSSOLHG ,QVXPWKHSDUWLHVGRQRWGLVSXWHWKHFRQFOXVLRQWKDW+DUPRQLF(05VVHQG VLJQDOVWRRWKHUHTXLSPHQWZLWKLQWKHSDWKRIWUDQVPLVVLRQVXFKDVDPRGXODWRUZKLOH QRWVHQGLQJVLJQDOVWRDILQDOUHFHLYLQJGHYLFHSee 'HI([ $UPVWURQJ'HS DW see also3O5HS%UDW7KLVW\SHRIDFWLYLW\PHHWVWKHHVWDEOLVKHG LQWHUSUHWDWLRQRI³WUDQVPLVVLRQDSSDUDWXV´EHFDXVHWKH+DUPRQLF(05VDUH³DSSDUDWXV WKDWVHQGDVLJQDORXWWRDQRWKHUORFDWLRQ´See GLVFXVVLRQRIGLFWLRQDU\GHILQLWLRQVDQG FRPPRQPHDQLQJRI³WUDQVPLVVLRQ´supra S Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 48 of 52
+RZHYHUWKHSDUWLHVGLVSXWHWKHSULQFLSDOXVHRIWKHVXEMHFWPHUFKDQGLVHD PDWHULDOIDFWWKDWDIIHFWVWKHRXWFRPHRIWKLVFDVHSee Anderson86DW 86&,75XOH D SURYLGHVWKDWWKHFRXUWJUDQWVXPPDU\MXGJPHQWRQO\LIDPRYLQJ SDUW\FDQVKRZWKDW³WKHUHLVQRJHQXLQHGLVSXWHDVWRDQ\PDWHULDOIDFWDQGWKHPRYDQW LVHQWLWOHGWRMXGJPHQWDVDPDWWHURIODZ´$FFRUGLQJO\VLQFHSODLQWLIIKDVIDLOHGWR PHHWLWVEXUGHQLQWKLVUHVSHFWWKHFRXUWGRHVQRWUHDFKDFRQFOXVLRQDVWRZKHWKHUWKH VXEMHFWPHUFKDQGLVHLVSURSHUO\FODVVLILHGDW+HDGLQJVDQG +HDGLQJ 7KHUHOHYDQWSDUWRI+HDGLQJGHVFULEHVSURSHUO\FODVVLILHGLWHPVDV³RWKHU DSSDUDWXVIRUWKHWUDQVPLVVLRQRUUHFHSWLRQRIYRLFHLPDJHVRURWKHUGDWDLQFOXGLQJ DSSDUDWXVIRUFRPPXQLFDWLRQLQDZLUHGRUZLUHOHVVQHWZRUN VXFKDVDORFDORUZLGH DUHDQHWZRUN RWKHUWKDQWUDQVPLVVLRQRUUHFHSWLRQDSSDUDWXVRIKHDGLQJ´ 3ODLQWLIIDUJXHVWKDWWKH+DUPRQLF(05VDUHSURSHUO\FODVVLILHGLQ+HDGLQJ EHFDXVHWKHGHYLFHVDUHXVHGIRUDYDULHW\RISXUSRVHVLQFOXGLQJQRQWHOHYLVLRQ 3ODLQWLIIUHOLHVRQWKH6FKRQIHOG([SHUW5HSRUWWRVXSSRUWWKLVDVVHUWLRQ7U2UDO$UJDW 7KHUHSRUWVWDWHVWKDWWKH³+DUPRQLFHQFRGHUVPXOWLSOH[HUVDQGUH PXOWLSOH[HUVZHUHLQWHQGHGIRUXVHLQPXOWLPHGLDcommunicationQHWZRUNV´3O([ ) 6FKRQIHOG([SHUW5HSRUW DW(DUOLHUWKHUHSRUWGHVFULEHVPXOWLPHGLD FRPPXQLFDWLRQQHWZRUNVDVSURYLGLQJ³DYDULHW\RIGLJLWDOVHUYLFHVWRWKHLUFXVWRPHUV LQFOXGLQJWHOHSKRQ\WHOHYLVLRQDQG,QWHUQHWVHUYLFHV´Id7KHUHSRUWDOVRVWDWHVWKDW ³>W@KHVWURQJUHODWLRQVKLSEHWZHHQPXOWLPHGLDFRPSUHVVLRQVWDQGDUGVDGRSWHGIRU PXOWLPHGLDVWRUDJHYLGHRWHOHSKRQ\DQGRWKHUQHWZRUNHGDSSOLFDWLRQVVXFKDV Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 49 of 52
YLGHRFRQIHUHQFLQJLVDFOHDULQGLFDWLRQRIWKHFRQIOXHQFHRIPDQ\RIWKHWHFKQRORJLHV XVHGIRUWKHVHYHU\GLIIHUHQWPXOWLPHGLDDSSOLFDWLRQV´IdDW +RZHYHUDVQRWHG0U6FKRQIHOGVWDWHGGXULQJKLVGHSRVLWLRQWKDWKHGRHVQRW NQRZKRZ+DUPRQLF(05VDUHactually XVHGSee 3O([, 6FKRQIHOG'HS.)DW ,QOLJKWRIWKLVVWDWHPHQWWKHH[SODQDWLRQLQWKH6FKRQIHOG([SHUW5HSRUWDERXW PXOWLPHGLDFRPSUHVVLRQVWDQGDUGVGRHVQRWVXSSRUWSODLQWLII¶VDUJXPHQWWKDWWKH +DUPRQLF(05VWKDWLQFRUSRUDWHWKHVXEMHFWPHUFKDQGLVHDUHXVHGprincipally IRU WHOHSKRQHDQG,QWHUQHWQHWZRUNV5DWKHUWKLVVWDWHPHQWFRQYH\VWKDWWKHWHFKQRORJ\ XVHGWRFRPSUHVVGDWDIRUPRYLHDQGWHOHYLVLRQYLHZLQJLVVLPLODUWRWKDWXVHGIRUYLGHR WHOHSKRQ\DQGYLGHRFRQIHUHQFLQJ$VDFRQVHTXHQFHWKH6FKRQIHOG([SHUW5HSRUW OHDYHVXQFOHDUWKHSULQFLSDOXVHWRZKLFKWKH+DUPRQLF(05VZLWKZKLFKWKHLPSRUWHG PHUFKDQGLVHLVXVHGDUHSXWQDPHO\IRUWHOHYLVLRQRUQRQWHOHYLVLRQSXUSRVHV &21&/86,21 0XFKKDVEHHQZULWWHQDERXWWKH³*ROGHQ(UDRI7HOHYLVLRQ´7KHFRXUWLVQRWLQ DSRVLWLRQWRRIIHUDMXGJPHQWRQZKHQH[DFWO\WKDWHUDPD\KDYHVWDUWHGDQGHQGHG +RZHYHUZLWKRXWTXHVWLRQRQHRIWKHJUHDWHVWVKRZVLQWHOHYLVLRQKLVWRU\ SXQFWXDWHGE\WKHXVHRID6KRH3KRQHDSSURSULDWHO\ZDVWKHFRPHG\DFWLRQ DGYHQWXUHVHULHVGet SmartFUHDWHGE\WKHH[WUDRUGLQDU\0HO%URRNVDQG%XFN+HQU\ DVDVSRRIRIWKH-DPHV%RQGPRYLHV7KHVKRZIHDWXUHGDPHPRUDEOHVHULHVRI JDGJHWVZKLFKLQFOXGHGWKH6KRH3KRQH $JHQW0D[ZHOO6PDUWSOD\HGE\'RQ$GDPV KDGWRUHPRYHKLVVKRHDQGKROGWKHERWWRPRILWXSWRKLVFKHHNDQGHDU DQGWKH&RQH RI6LOHQFH FRPSULVHGRIWZRFOHDUVHPLFLUFXODUVKHHWVRIWUDQVOXFHQWSODVWLFWKDW GHVFHQGHGIURPWKHFHLOLQJWRFUHDWHDVYHUVLRQRID6HQVLWLYH&RPSDUWPHQWDOL]HG Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 50 of 52
,QIRUPDWLRQ)DFLOLW\ ³6&,)´ 6PDUWLQVLVWHGRQXVLQJLWWRFRQYH\WKHPRVWUXGLPHQWDU\
DQGXVHOHVVLQIRUPDWLRQWRKLVVXSHULRU²NQRZQVLPSO\DV³7KH&KLHI´SOD\HGWRFRPLF
SHUIHFWLRQE\(GZDUG3ODWW²DQGLWLQYDULDEO\PDOIXQFWLRQHGERQNLQJ6PDUWRUWKH
&KLHIRQWKHKHDGRUFDXVLQJRWKHUSUREOHPV
7KHVKRZDOVRLQFOXGHGFDWFKSKUDVHVWKDWFDXJKWRQTXLFNO\DWWKHWLPHDQGZHUH
ZLGHO\UHSHDWHG7KHUHZDV³WKHROG>ILOOLQWKHEODQN@WULFN´FDWFKSKUDVHDVLQ³7KHROG
3URIHVVRU3HWHU3HFNLQSDKDOOSXUSRVHDQWLSHUVRQQHO3HFNLQSDKSRFNHWSLVWROXQGHU
WKHWRXSHHWULFN´
$QGWKHQWKHUHZDVWKH³ZRXOG\RXEHOLHYH´FDWFKSKUDVHDVLQRQHLQVWDQFHLQ
ZKLFKDQHYLOFKDUDFWHUNQRZQDV0U%LJFDSWXUHV6PDUWDQGKLVSDUWQHU$JHQW
SOD\HGE\%DUEDUD)HOGRQ
6PDUW³$WWKHPRPHQWVHYHQ&RDVW*XDUGFXWWHUVDUHFRQYHUJLQJRQXV:RXOG
\RXEHOLHYHLW"´
0U%LJ³,ILQGWKDWKDUGWREHOLHYH´
6PDUW³:RXOG\RXEHOLHYHVL["´
0U%LJ³,GRQ¶WWKLQNVR´
6PDUW³+RZDERXWWZRFRSVLQDURZERDW"´
Get Smart: ,.,3(',$ KWWSVHQZLNLSHGLDRUJZLNL*HWB6PDUW ODVWYLVLWHG'HF
&DWFKSKUDVHV: 28/'<28 %(/,(9( &20
KWWSZZZZRXOG\RXEHOLHYHFRPSKUDVHVKWPO ODVWYLVLWHG'HF
Get Smart: Mr. Big 1%&WHOHYLVLRQEURDGFDVW6HSW
Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 51 of 52
$V0HO%URRNVVDLGDWWKHWLPH³,ZDVVLFNRIORRNLQJDWDOOWKRVHQLFHVHQVLEOH VLWXDWLRQFRPHGLHV7KH\ZHUHVXFKGLVWRUWLRQVRIOLIH1RRQHKDGHYHUGRQHDVKRZ DERXWDQLGLRWEHIRUH,GHFLGHGWREHWKHILUVW´ 7KHFRXUWWUXVWVWKDWLWVDQDO\VLVZLOOEHFRQVLGHUHGWREHQHLWKHULGLRWLFQRUD GLVWRUWLRQRIWKHIDFWVDQGODZLQWKLVFDVH)RUWKHIRUHJRLQJUHDVRQVWKHFRXUWJUDQWV GHIHQGDQW¶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ecember 22, 2020 Case 1:13-cv-00343-TMR Document 71 Filed 12/22/20 Page 52 of 52
Wondering how this text applies to your situation?
Free consultation, no commitment
Describe your situation. Our team will contact you by email about your consultation.
Continue your research in ChatGPT or Claude
Connect Omnilex to search the legal corpus from your AI assistant.