Mediation in IP Litigation: Procedures, Strategies and...
Transcript of Mediation in IP Litigation: Procedures, Strategies and...
![Page 1: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/1.jpg)
Mediation in IP Litigation:Procedures, Strategies and Observations from a Leading Mediatorfor theHoward T. Markey Intellectual Property Inn of CourtPupilage Group No. 4April 21, 2015
1
![Page 2: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/2.jpg)
Overview of DiscussionI. Before the Mediation [Sam Lam]
• Mediator Selection: Private vs. Court-Implemented• Mediation Timing• Briefing• Exhibits• Client Preparation
II. During the Mediation [Matt Lapple]• Nuts & Bolts• Plaintiffs vs. Defendants: Different Approaches?• Interim Agreements• Documenting the Agreement
III. Best Practices from an Experienced IP Mediator [Hon. John Wagner]IV. Expanding Mediation Beyond Its Traditional Boundaries [Mark Wine]
2
![Page 3: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/3.jpg)
I. BEFORE THE MEDIATION
3
![Page 4: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/4.jpg)
Private Mediator Selection – Considerations•Experience
•Mediation Experience•Technical Experience•Other Experience
•Expense•Magistrates are free•Private mediator with good success record
•Conflicts•Location
4
![Page 5: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/5.jpg)
Court-Implemented Mediator Selection•D. Del.
•Chief Magistrate Judge Mary Pat Thynge•C.D. Cal. – select one of three options:
1) District/Magistrate Judge2) Mediation Panel3) Private Mediation
•S.D. Cal. – at Early Neutral Evaluation (ENE) stage, court refers case to arbitration or mediation
5
![Page 6: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/6.jpg)
Court-Implemented Mediator Selection (cont’d)•N.D. Cal. – ADR Multi-Option Program:
•Arbitration•Early Neutral Evaluation (ENE)•Mediation•Settlement Conferences with a Magistrate Judge•Or with Court’s permission: Private Mediation
•E.D. Cal. – Voluntary Dispute Resolution Program•E.D. Tex. – Court-Annexed Mediation Plan
•“Track B” Case Management Procedures for Patent Cases
6
![Page 7: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/7.jpg)
Mediation Success Rates – Private vs. Court
7
In your experience, how successful is private mediation vs. court-implemented mediation?(Success = settlement & dismissal of case or of defendant)
?
![Page 8: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/8.jpg)
Mediation Timing•Pre-Markman•Post-Markman / Pre-MSJ Decision•Post-MSJ to “Days Before Trial”
•Many judges think earlier is better to avoid litigation expenses
•If so, limited discovery beforehand?
8
![Page 9: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/9.jpg)
Mediation Timing (cont’d)
David L. Newman (Arnstein & Lehr), Mediation Favored in Survey of Intellectual Property Lawyers, INTELLECTUAL PROP. TODAY (May 2014), at 29–31.
9
![Page 10: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/10.jpg)
Mediation Success Rates for Each Stage
10
?In your experience, how successful is mediation at different stages (pre-Markman, post-Markman/pre-MSJ, post-MSJ)?(Success = settlement & dismissal of case or of defendant)
![Page 11: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/11.jpg)
(Usual) Mandatory Sections of Brief•Facts•Legal Dispute•Settlement Discussions to Date•Your Client’s Offer (if any)•Fees Incurred to Date
11
![Page 12: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/12.jpg)
Considerations for Briefing•Putting best case forward vs. revealing warts?•Estimated maximum exposure?•Offering new settlement positions?•How much to reveal about client’s real bottom-line acceptable offer?
•Confidential briefing (vast majority) vs. exchanged briefing (minority)?
•Exchanging can lead to candor•Risk of over-disclosing
•How to deal with insurer that has piece of possible coverage but defending under reservation of rights?
12
![Page 13: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/13.jpg)
Considerations for Briefing: Exhibits•Are there “necessary” exhibits to include?
•Infringement•Invalidity•Damages•Other
13
![Page 14: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/14.jpg)
Preparing Clients for a Mediation•Setting Goals & Expectations•Selecting the Proper Client Representative
•“Full” authority•Messaging intent or seriousness to the other side
•Discussing Proper Conduct During Mediation (Particularly for First-Time Litigants)
•Letting the lawyer speak: relatively more “cagey”•Discuss with client rep. points s/he wants to get across
14
![Page 15: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/15.jpg)
II. DURING THE MEDIATION
15
![Page 16: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/16.jpg)
The Number & Order of Sessions•The Number & Order of Sessions
•Opening Joint Session – Making Your Points vs. Creating Rancor
•Shuttle Diplomacy – Listening to the Mediator & Reassessing– Using the downtime effectively– Client Control
•Closing Joint Session
16
![Page 17: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/17.jpg)
Preferred Structure for Sessions
17
?In your experience, how important is the structure & order of the sessions to the success of a mediation?
![Page 18: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/18.jpg)
Revealing Additional Information During the Mediation Session•To the Mediator•Disclosing to the other side vs.•Not disclosing to the other side•Allow the Mediator to Reveal or In a Joint Session?
18
![Page 19: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/19.jpg)
Seeking Solutions or a Zero Sum Game?•Goals and Expectations Dictate Approach
•Haggling•Seeking a Business Solution •Hammering Away at Merits of the Legal Case?
•When to Introduce the “Creative Solution”•How Quickly & How Far to Move In Each Exchange?
19
![Page 20: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/20.jpg)
Different Approaches: Plaintiffs vs. Defendants•Plaintiffs
•Demonstrate why Defendant should settle– Demonstrate risk of liability and damages– Offer Solution
•Defendants•Punch holes in Plaintiff’s case to minimize risk and justify low settlement value
– Rifle shots, not shotgun•Explore Plaintiff’s real bottom line
20
![Page 21: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/21.jpg)
Interim Agreements•Resolving Limited Issues to Focus on the Main Event:
•Evidentiary Disputes•Weaker Patents, or Weaker Claims of a Patent•Setting Frameworks for Resolution
– Agreeing upon amount of liability to be decided by MSJ– Other examples?
21
![Page 22: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/22.jpg)
Document the Agreement•Avoiding “We Never Agreed to That!”•At the Least, Leaving with a Signed Term Sheet, List of Deal Points, or MOU
•Typing/writing on the spot and providing to mediator for review
•Dictate in open court to stenographer
22
![Page 23: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/23.jpg)
Impasse or Another Session?•When it is time to declare an impasse?•Leaving the Door Open to a Second Mediation?
•After the resolution of a motion•After further discovery
23
![Page 24: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/24.jpg)
Calling it Quits
24
?In your experience, what signals to you that a mediation has run its course and will be unsuccessful?
![Page 25: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/25.jpg)
III. BEST PRACTICES FROM AN EXPERIENCED IP MEDIATOR
25
![Page 26: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/26.jpg)
Thoughts on Mediation Best Practices•Selection of a mediator
• Court panel or Private?• Technology background• Availability• Reputation• References
•Contacting/interviewing mediators•Pre-mediation submissions
• Confidential or exchanged with opposing party?•Preparing the client for the mediation session
• Bringing client representatives with the ability to settle•Structure of the mediation
• Opening statements• Client face to face
26
![Page 27: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/27.jpg)
Thoughts on Mediation Best Practices•During the mediation
•Disclosing bottom line•Duty of candor/honesty•Requesting a mediator’s assessment and recommendation•Drafting terms/MOU•Ending a mediation with the door open for future sessions
•Post-mediation issues•Reporting to the Court•Confidentiality•Resuming the mediation
27
![Page 28: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/28.jpg)
In Closing: Observations on Mediation•Getting the most out of mediation•Common errors that lawyers make•Do all useful mediation discussions come after regular business hours?
•The value of pressing forward•Living to fight another day
•When should an unproductive mediation be terminated?
•Can a “cooling off” period help the parties to settle?•Defining what makes for a successful mediation
28
![Page 29: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/29.jpg)
HON. JOHN LEO WAGNER (Ret.)JUDICATE WEST
ALTERNATIVE DISPUTE RESOLUTION
1851 E. First St., Suite 1600Santa Ana, California 92705
Direct Phone: 949-248-3137Cell: 949-310-5553Email: [email protected]
29
![Page 30: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/30.jpg)
IV. EXPANDING MEDIATION BEYOND ITS TRADITIONAL BOUNDARIES
30
![Page 31: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/31.jpg)
The “New Frontier” in Mediation may be the Use of Mediation to Manage Litigation to a Successful Conclusion•“Mediation-plus”: how to expand the use of mediation past its current, limited use
•Claim term number•Agreements on Accused Products•Early disclosure of damages theories and documents
•“Track B” in E.D. Tex. was promoted by Judge Leonard Davis as a means of resolving cases earlier
•Judge Davis favors a broader use of mediators to help get cases settled
•Some judges are considering assigning mediators as a hybrid combining “special master” and “mediator”.
31
![Page 32: Mediation in IP Litigation: Procedures, Strategies and ...ocmarkeyinn.org/wp-content/uploads/2017/04/IRI... · 4/21/2015 · Mediation in IP Litigation: Procedures, Strategies and](https://reader033.fdocuments.in/reader033/viewer/2022051905/5ff73dd3bbe32444bc662495/html5/thumbnails/32.jpg)
Questions and Issues about Expanding the Use of Mediation•Communication with the Court•Appearance of Favoritism•Confidentiality Issues•Cost
32