Opinion

Flypsi, Inc. v. Google, LLC

Court
District Court, W.D. Texas
Filed
May 31, 2024
Cited by
0 cases
Authority
More cited than 32.1%

The opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE WESTERN DISTRICT OF TEXAS

WACO DIVISION

FLYPSI, INC. (D/B/A FLYP),

Plaintiff, Civil Action No. 6:22-cv-00031-ADA

vs.

GOOGLE LLC, JURY TRIAL DEMANDED

Defendant.

ORDER ON PROTECTIVE ORDER DISPUTE

Before the Court is a dispute submitted by the parties via an email on April 30, 2024,

regarding Defendant Google LLC’s (“Google”) request that the patent prosecution and patent

acquisition bars of the Protective Order (Dkt. 98) should apply to Plaintiff Flypsi, Inc.’s (“Flyp”)

corporate representative at trial, Mr. Peter Rinfret. The Court conducted a hearing on May 20,

2024, and after considering arguments of counsel and the parties positions as submitted via email

and summarized below, the Court rules as follows:

Google’s Position

The Court should deny Flyp’s request to excuse Mr. Rinfret from his obligations under the

Protective Order (Dkt. 98) that was jointly prepared by the parties and entered by this Court. Mr.

Rinfret read the terms of the PO and explicitly agreed to be bound by them. Mr. Rinfret reaffirmed

his commitment to be bound by the terms of the PO by remaining in the courtroom each and every

time the Court instructed that anyone not bound by the PO leave the courtroom when the trial

proceedings were sealed. Mr. Rinfret was repeatedly exposed to Google’s Highly Sensitive

Material (Dkt. 98 at paragraph 13), including highly technical information and source code related

to the functionality of the accused product, during the sealed trial proceedings. Thus, Mr. Rinfret’s

obligations relating to the patent prosecution and acquisition activities discussed in paragraphs 13

and 14 of the PO are in effect. Google is likely to suffer severe prejudice if Mr. Rinfret is allowed

to prosecute and/or acquire additional patent assets armed with highly confidential knowledge of

the inner workings and economics of Google’s products, particularly where prosecution is ongoing

for the asserted patent family. This is precisely why the limitations were agreed to by the parties

and the Court up front.

After the trial concluded, Flyp contended for the first time that only the obligations in

paragraphs 13 and 14 do not apply to Mr. Rinfret because he attended trial as Flyp’s corporate

representative. Flyp’s untimely and arbitrary position should not be countenanced. If Flyp

believed that Mr. Rinfret should have been excused from any or all of his obligations under the

PO, it could have and should have raised the issue before or during trial. Even more troubling,

when Google reminded Flyp of Mr. Rinfret’s obligations after trial, Flyp contended that it was

Google’s burden to show Mr. Rinfret had any such obligations. Flyp cannot unilaterally––and

silently––pick and choose which obligations Mr. Rinfret will honor.

Moreover, Mr. Rinfret should not be excused from his obligations under the PO simply

because he was a corporate representative at trial. As the Court explicitly noted, being bound by

the obligations in the PO was the price of admission to the sealed trial proceedings in order to

protect the confidential information of all parties. And the detailed technical and source code

information Mr. Rinfret was exposed to during the sealed trial proceedings is precisely the type of

exposure that the parties contemplated warranted limitations on patent prosecution and acquisition

activity. Flyp’s ongoing prosecution of the asserted patent family, including potential amendments

to the asserted patents themselves via reexamination/reissue following the pending IPRs, could

result in further litigation against Google. Mr. Rinfret’s participation in those efforts prejudices

Google in further litigation, and risks public disclosure of Google’s confidential technical

processes even without further litigation. Mr. Rinfret should remain bound to all of his obligations

under the PO, including paragraphs 13 and 14, just like all attorneys, staff, experts, and consultants

in this case.

Relief Requested: Find that good cause does not exist to excuse Mr. Rinfret from his

obligations in paragraphs 13 and 14 of the Protective Order, and deny Flyp’s request.

Flyp’s Position

The Protective Order uses a 4-tier system and permits one corporate representative to

receive the lowest tier. (PO at 6(d)). Mr. Rinfret was designated to receive this lowest-level

information. But Google designated none of its production under this tier. Google’s entire

production was public or designated under higher tiers.

Thus before trial, Rinfret had zero information designated by Google and no right

whatsoever to information triggering the bars under ¶¶ 13-14, which explicitly are limited to the

highest 3-tiers. Paragraph 13 in particular requires that an individual be “permitted to receive”

such material, and Rinfret had no such right before trial.

Once the jury was empaneled, Flyp was permitted, as a matter of due process and

constitutional right, to be present at trial. Fillippon v. Albion Vein Slate Co., 250 U.S. 76, 81

(1919); Preferred Prop., Inc. v. Indian River Estates, Inc., 276 F.3d 790, 797 (6th Cir. 2002). Flyp

exercised this through Rinfret. Fed. R. Evid. 615, Note (“As the equivalent of the right of a natural-

person party to be present, a party which is not a natural person is entitled to have a representative

present.”).

Google now seeks to punish Flyp by using Flyp’s exercise of its constitutional rights and

affirmatively seeks to apply the bars in paragraphs 13 and 14 to Rinfret. But, pursuant to paragraph

21, the PO is explicitly limited to pretrial discovery and does not abrogate either party’s rights at

trial. Similarly, paragraph 31, states that “[n]othing in this Order shall be construed to effect an

abrogation, waiver, or limitation of any kind on the rights of each of the Parties to assert any

applicable . . . trial privilege.” By the PO’s own terms, Flyp’s exercise of its trial rights should not

limit Rinfret going forward. The bars under paragraphs 13-14 cannot attach to Rinfret based only

on his trial participation.

Even if the Court finds otherwise, good cause exists to excuse Rinfret. Rinfret did not

receive any triggering material before trial and still has no access to any demonstratives or exhibits

(or even notes) containing such. There is no prejudice to Google. Google already infringes Flyp’s

patents. No further prosecution is necessary vis-à-vis Google. Flyp is a small organization and

Rinfret is the only employee who can both effectively participate in trial and guide Flyp’s ongoing

patent campaign; barring Rinfret from participating in his Company’s patent prosecution could

materially damage Flyp. Google’s position thus threatens Flyp’s business, curtails future patent

rights, and harms future litigation against other infringers. Google was aware that Rinfret had only

been designated for the lowest tier of information, and yet did not seek his exclusion from

proceedings. Rinfret would have willfully vacated the courtroom when it asked the public to do

so had Google taken this position or made this request during trial. Google has waived the

arguments it now presents, which is compounded by Google’s one-month delay to bring this issue

to the Court.

Relief Requested: The Court should reject Google’s attempt to impose the burdens of

paragraphs 13 and 14 of the PO on trial representatives based on nothing more than their rightful

participation in trial. Alternatively, the Court should find that good cause exists to excuse Flyp’s

trial representative for the bars imposed by those paragraphs.

ORDER

The Court has considered the parties’ positions and is of the opinion Google’s request

should be DENIED and Flyp’s alternative request to excuse Mr. Rinfret from paragraphs 13 and

14 of the Protective Order should be GRANTED.

In the Court’s view, the Protective Order by its terms, both the provisions cited by Flyp as

well as the whereas clause at the beginning of it, evidences the parties’ belief that the Protective

Order is intended to cover discovery. The Court agrees that the plain language of the Protective

Order makes it applicable to discovery. Further, the Court sees no evidence that the trial court

engaged in the more arduous process required for carrying these additional patent prosecution and

acquisition restrictions into trial. See Bin Hoa Le v. Exeter Fin. Corp., 990 F.3d 410, 420 (5th Cir.

2021) (cautioning against allowing confidentiality that is permissible during the discovery stage

to carry over to the adjudicative stage without a more arduous analysis of the need for

confidentiality).

Alternatively, because of Mr. Rinfret’s background as a businessman rather than the

technical expert, to the extent that these bars would apply to information gleaned by him at trial,

and because Mr. Rinfret only received information through the testimony at trial rather than having

received actual documents pre- or post-trial, the Court finds there is good cause to excuse him

from the requirements in paragraphs 13 and 14 of the Protective Order.

For clarity, the Court further orders that Mr. Rinfret is still bound by all provisions of the

Protective Order (for pretrial, trial, and post-trial proceedings), except paragraphs 13 and 14,

including the confidentiality obligations, and that Mr. Rinfret cannot use any “Confidential”

Google information that he learned during this case, including during the sealed trial proceedings,

in his patent prosecution and acquisition activities.

Accordingly, the Court ORDERS that paragraphs 13 and 14 of the Protective Order (Dkt.

98) do not apply to the information Mr. Rinfret received during trial and, as such, he is not barred

from any patent prosecution as well as acquisition activities.

SIGNED this 31st day of May, 2024.

DEREK T. GILLILAND

UNITED STATES MAGISTRATE JUDGE

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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