JOSEPH F. BATAILLON, Senior District Judge.
At Wilmington this 26th day of October, 2017, having reviewed Sprint Communications, LP's ("Sprint's") motion to establish the order of proof at trial and to align the parties, (D.I. 641), and the briefs, (D.I. 642, 651, 656), submitted therewith;
IT IS ORDERED that said motion is granted, as follows.
1.
2. Cox moved to transfer the Kansas litigation to Delaware, which Judge Julie A. Robinson granted on September 14, 2012, finding that Kansas did not have personal jurisdiction over one of the Cox defendants, namely Cox Communications, Inc. Sprint Commc'ns Co. v. Cox Commc'ns, Inc., No. 11-2683, 2012 WL 4061509, at *16 (D. Kan. Sept. 14, 2012). Subsequently, Sprint agreed to have their first-filed
3. At this point, Sprint alleges that Cox infringes claims of the patents-in-suit, which are U.S. Patent Nos. 7,286,561 ("the '6,561 patent"), 6,633,561 ("the '3,561 patent"), 6,463,052 ("the '052 patent"), and 6,452,932 ("the '932 patent") (collectively the "Call Control Patents") and U.S. Patent Nos. 6,473,429 ("the '429 patent"), 6,343,084 ("the '084 patent"), and 6,298,064 ("the '064 patent") (collectively the "Broadband Patents"). Aside from Cox's defenses to infringement (namely invalidity and noninfringement), there are no other claims at issue. Moreover, the parties do not dispute that Sprint bears the burden of proving infringement and that Cox bears the burden of proving noninfringement and invalidity. See, e.g., (D.I. 651 at 9-11); see also Medtronic, Inc. v. Mirowski Family Ventures, LLC, 134 S.Ct. 843, 849 (2014) ("[I]n a [] declaratory judgment action, the burden of proving infringement should remain with the patentee.").
4. Sprint argues that, since it filed first in Kansas on these patents-in-suit and since it is asserting patent infringement, the parties should be realigned so that Sprint is the plaintiff. (D.I. 642 at 1-2) Also, Sprint proposes the following "order: (1) Sprint puts on its infringement and damages case, (2) Cox rebuts Sprint's presentation and puts on its invalidity case, and (3) Sprint rebuts invalidity." (Id. at 1)
5. Cox contends that Sprint sought to "gerrymander[] its Kansas pleadings in an attempt to create an incomplete lawsuit that could be heard in Kansas[.]" (D.I. 651 at 4) Additionally, Cox avers that the present action in Delaware was necessary to "determine the rights of all the Cox plaintiffs[.]" (Id.) Cox offers that it "is willing to streamline the issues for the jury by conceding at trial on the issue of infringement as to the [Call Control Patents.]" (Id. at 9) Cox then explains that, as to the Broadband Patents, "Cox will retain the burden on any invalidity issues that are tried, but, while Cox intends to contest infringement on the [Broadband Patents'] claims, Cox does not propose to displace Sprint from presenting first on infringement for of the [Broadband P]atents, because that is an issue on which Sprint carries the burden." (Id. at 11) Cox proposes the following order of proof at trial:
(Id. at 13)
6.
7. First, Sprint was first to file. There is no doubt that Cox filed its declaratory judgment action in this court in response to Sprint's earlier filing in Kansas. And this court has determined that Sprint was first to file in Kansas (which would have warranted transfer to the District of Kansas) but that, based upon Cox's representations to this court and to the District of Kansas at the time, the "exceptional circumstances" of the case at bar (the declaratory judgment action) warranted keeping this action in Delaware. (D.I. 76 at ¶ 7 & n.4)
8. Second, circumstances have changed since Cox filed its declaratory judgment action. For example, Cox had once alleged infringement of two patents by Sprint. (Id. at ¶ 2) But those patents are no longer at issue, and Cox is in the sole role of an accused infringer. Moreover, Cox's subsequent representations to this court in unrelated matters have called its earlier representations into question. See AT & T Intellectual Prop. I, L.P. v. Cox Commc'ns, Inc., No. CV 14-1106-GMS, 2015 WL 4148239, at *1 (D. Del. July 9, 2015) ("When it suits Cox to litigate in Delaware, it takes one position. Judges in this District [in the case at bar] and the District of Kansas [in the litigation filed by Sprint against Cox] accepted Cox's averments [and decided accordingly]. When Cox would prefer to litigate elsewhere, it takes a different position. This is, in the court's view, bad faith.").
9. Third, although this court was willing to find an exception to the first-to-file rule, that does not preclude the court's discretionary realignment of the parties to reflect Sprint's role as the plaintiff in the earlier-filed litigation in the District of Kansas on the same patents-in-suit.
10. Fourth, as it relates to the order of proof at trial, Sprint is the natural plaintiff. The patents-in-suit present a number of complex technical issues for the jury. The Call Control Patents and the Broadband Patents share a common specification that needs explanation, including the relationship between the patent families.
11.