Quarterhill Inc T.QTRH

Very important hearing today on Amazon case

[v_guerriero]

Big day for team WiLan in the Amazon case.  Summary Judgement day.

For those that don't know this case, it covers the Alexa feature that was invented by SRI international.   Apple licensed SRI technology which underpins SIRI.

It covers three product categories, including tablets, streaming players, and smart speakers. To date, I calculated 200M+ of these units sold in the US that include the Alexa feature.  

Some of the patents expired in early 2019. Two of the patents expired in 2022.

They are going for wilfulness so for double or tripling of damages.  (SRI won doubling of damages against Cisco last week at CAFC). This is also VERY important for this case is that this is not a standard essential patent.  This is just theft of the underpinning technology.  These in the past have led to ENORMOUS damage awards in the range of 5-10% of the selling price of the infringing products.
 

If the judge let's in the damages theory and the methodology and doesn't exclude the damages theory, we are set up for a HUGE battle in the jury trial happening mid-November. 

This could also lead to a very significant set of settlements with Amazon... Microsoft and Google follow these cases.  

The stock assumes we will lose the summary judgment motion and this will not go to trial.  

So only upside here.

Good luck today!

[cabbieJBJ]

This is the joint letter to the court on the summary judgment issues: Pursuant to the Court’s October 8, 2021 Oral Order (D.I. 398), the parties submit this joint letter to identify the following issues they wish to be heard at the summary judgment motion hearing scheduled to commence on Thursday, October, 14, 2021 at 1:30 P.M. IPA identifies the following three issues, in order of importance

[cabbieJBJ]

The Artic Cat reference was new to me.  There are lots of links on the Artic Cat marking issue.  Here is one that explains the point well: https://www.lexology.com/library/detail.aspx?g=5e270d32-a5ee-4627-b62c-f0cb7cc4458c

[astutein]

Any news on summary judgement motion of yesterday.

[cabbieJBJ]

nothing yet Astutein. The oral hearing was only Thursday. This could take a couple of weeks as the court will want to clearly document its rationale for any ruling.

[v_guerriero]

The only thing that came out in the minutes is that Amazon will provide a supplemental letter. That sounds like based on the submissions that there isn't enough to demonstrate their case for non-infringement.  And asked for an opportunity for a follow up.   Appears on path for trial.  Again, this is priced as a non-event so a trial date is only upside here.   If

[cabbieJBJ]

v_g, check your inbox. 

[cabbieJBJ]

You're up and at it early v_g.  I now see that the oral hearing minute entry has been posted on both Docketbird and RPX.  The supplemental letter from the defendant is due COB Monday, so it should be posted on Tuesday or Wednesday. For some time I've expressed the POV that the IPA campaign on the SRI patents is a major event for QTRH.  In addition to the Amazon action in

[v_guerriero]

The key patents in the portfolio have survived PTAB. They are going for enhanced damages.  And the judge was not impressed with Amazon in their attempt to withhold the Alexa source code.  That was blatant poor conduct.  SRI doubled their award and received attorney fees from Cisco for port discover and trial conduct in a separate case. The odds of getting to trial these days are

[v_guerriero]

Just to put a finer point on this, WiLan's lawyers got the bill for how much she charged Amazon for the expert opinion.  She only charged them for 80 hours of work.  In the dialogue she basically said that the lawyers wrote the expert opinion and she validated it.  That is a big no-no. Secondly, she said that she didn't even know that she had to write her perspective in

[cabbieJBJ]

v_g, what do you make of the fact that Amazon has elected to go the jury trial route whereas Google and Microsoft elected to go the IPR route?  Amazon goes to trial in November.  The IPRs have just come out of stays at CAFC (Wilan dropped its appointments constitutional challenge in July, allowing the cases to resume) with briefings now underway.  The CAFC case is 

[v_guerriero]

I think it was a coordinated approach to maximize WiLan's legal bills.  These defendants coordinate these attacks now. The PTAB process definitely adds a delay and a level of uncertainty.  On the other hand, patents that go though the PTAB process, you know they are bullet proof, and increase your odds of victory at trial.    

[cabbieJBJ]

I thought co-ordination as well. I put it down to two bites rather than money. I think QTRH threw a wrench into that with the appointments challenge, which resulted in a stay at CAFC. Wilan dropped that challenge and the DOJ withdrew their intervenor request, putting the case on the briefs. Smart strategy as there will be no PTAB distraction during the Amazon trial.