JOHN D. LOVE, Magistrate Judge.
Before the Court is Defendants'
On July 1, 2015, Chrimar filed its original complaint against Defendants alleging infringement of four of Chrimar's patents.
"Courts have the inherent power to manage their dockets and stay proceedings, including the authority to order a stay pending conclusion" of a PTO administrative proceeding. Ethicon, Inc. v. Quigg, 849 F.2d 1422, 1426-27 (Fed. Cir. 1988). The party seeking a stay bears the burden of showing that such a course is appropriate. See Landis v. N. Am. Co., 299 U.S. 248, 255 (1936). A stay pending an administrative proceeding is not automatic; rather, it must be based upon the circumstances of the individual case before the court. See, e.g., Datatreasury Corp. v. Wells Fargo & Co., 490 F.Supp.2d 749, 755 (E.D. Tex. 2006). While the case law states several general considerations that are helpful in determining whether to order a stay, ultimately the Court must decide stay requests on a case-by-case basis. Comcast Cable Commc'ns Corp., LLC v. Finisar Corp., No. 06-cv-04206-WHA, 2007 WL 1052883, at * 1 (N.D. Cal. Apr. 5, 2007) ("From a case management perspective, the possible benefits must be weighed in each instance against the possible drawbacks."). Though a stay is never required, it may be "particularly justified where the outcome of the [administrative proceeding] would be likely to assist the court in determining patent validity and, if the claims were canceled in the [administrative proceeding], would eliminate the need to try the infringement issue." In re Cygnus Telecomms. Tech., LLC, Patent Litig., 385 F.Supp.2d 1022, 1023 (N.D. Cal. 2005) (citing Gould v. Control Laser Corp., 705 F.2d 1340, 1342 (Fed. Cir. 1983)). Indeed, "an auxiliary function [of the proceeding] is to free the court from any need to consider prior art without the benefit of the PTO's initial consideration." In re Etter, 756 F.2d 852, 857 (Fed. Cir. 1985). Nevertheless, there is no per se rule that patent cases should be stayed pending PTO proceedings, because such a rule "would invite parties to unilaterally derail litigation." Soverain Software LLC v. Amazon.Com, Inc., 356 F.Supp.2d 660, 662 (E.D. Tex. 2005); see also Comcast, 2007 WL 1052883, at *1 ("If litigation were stayed every time a claim in suit undergoes reexamination, federal infringement actions would be dogged by fits and starts. Federal court calendars should not be hijacked in this manner."). In deciding whether to stay a given action, courts frequently consider three factors: (1) whether the stay would unduly prejudice or present a clear tactical disadvantage to the non-moving party; (2) whether a stay will simplify the issues in question and trial of the case; and (3) whether discovery is complete and whether a trial date has been set. Soverain, 356 F. Supp. 2d at 662.
The Court has inherent discretion in deciding whether to grant a stay in patent litigation pending IPR. See Ethicon, 849 F.2d at 1426-27. A final decision is made with "an eye toward maintaining an even balance between the competing interests of the parties at issue." TruePosition, Inc. v. Polaris Wireless, Inc., No. 12-646, 2013 WL 5701529, at *2 (D. Del. Oct. 21, 2013) (citing SoftView LLC v. Apple, Inc., No. 10-389-LPS, 2012 U.S. Dist. LEXIS 104677, at *6-7 (D. Del. July 26, 2012).
Defendants argue that Chrimar will not suffer undue prejudice if the Court grants a stay pending IPR because Chrimar does not sell products that compete with Defendants' products. (Doc. No. 457, at 6.) Further, Defendants argue that Chrimar can be adequately compensated by money damages for any harm suffered during the PTAB proceedings, and therefore a stay is warranted. (Doc. No. 457, at 7-8.) Chrimar counters that the delay resulting from a stay would prejudice Chrimar by increasing the complexity of the litigation and adding additional costs. (Doc. No. 489, at 7.) In addition, Chrimar points out that Dell and Aerohive are only two of ten defendants who have moved to stay this consolidated action. Id. at 6.
The fact that Chrimar does not sell products that compete with Dell and Aerohive would not preclude Chrimar from experiencing prejudice if the Court granted Defendants' motion to stay. See Rembrandt Wireless Techs., LP v. Samsung Elecs. Co., No. 2:13-cv-213, 2015 WL 627887, at *2 (E.D. Tex. Jan. 29, 2015) ("The mere fact that [plaintiff] is not currently practicing the patents does not mean that, as a matter of law, it is not prejudiced by a substantial delay of an imminent trial date."). Chrimar has an interest in the timely and cost effective enforcement of its patent rights. Ambato Media, LLC v. Clarion Co., Ltd, No. 2:09-cv-242, 2012 WL 194172, at *1 (E.D. Tex. Jan. 23, 2012); Voltstar Technologies, Inc. v. Superior Commc'ns, Inc., No. 2:12-cv-00082, 2013 WL 4511290, at *2 (E.D. Tex. Aug. 22, 2013). Assuming the PTAB institutes the first-filed IPR petition by August 18, 2016, an IPR decision may not be issued until August 18, 2017. 35 U.S.C. § 316(a)(11). Further, because the August 18, 2017 deadline could be extended by six months for good cause, a stay could delay this case well beyond the scheduled trial date of January 2, 2017. Id. The delay could be further exacerbated if Defendants invoke their right to appeal the PTAB's decision to the Federal Circuit. 35 U.S.C. § 141(c). Moreover, the earliest a final decision would be made as to all of the patents-in-suit would be December 9, 2017. Such a lengthy delay will result in significant prejudice to Chrimar. In addition, this case will continue to proceed as to the remaining ten defendants who have not filed IPR petitions, regardless of the outcome of this motion. Therefore, a stay as to just Dell and Aerohive would effectively bifurcate this action, causing duplicative resources to be expended by the Court and the parties. As such, this factor weighs against a stay.
The PTAB has not yet instituted any of Defendants' petitions for IPR. (Doc. No. 498, at 6.) The Court is reluctant to grant a stay where none of the four IPR petitions on the patents-in-suit have yet been granted. See Lennon Image Techs., LLC v. Lumondi, Inc., No. 2:13-cv-238, at 2-3 (E.D. Tex. Jan. 6, 2014). Because the PTAB has not granted any of the petitions, Defendants' assertion that the PTAB will invalidate the claims of the patent—and therefore simplify the issues—is purely speculative. (Doc. No. 457, at 9.) Accordingly, this factor weighs against a stay.
Defendants argue that a stay is warranted because this case is still in its early stages. (Doc. No 457, at 8.) Defendants incorrectly state that "the claims of the asserted patents have not yet been construed," (Doc. No. 457, at 2), when in fact the Court issued its claim construction opinion the day before Defendants filed the instant motion. (Doc. No. 454.) Moreover, fact discovery is about to close in this case on August 15, 2016, and the Court has already resolved numerous dispositive and procedural motions. (See, e.g., Doc. No. 59.)
In addition, this action was filed against Defendants on July 1, 2015, and Dell has not explained why it waited over
On balance, the relevant factors in this case favor denying a stay. For these reasons, the Court