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Litigation Update

Latest Legal Analysis
By Kilopass Attorney, Shailendra K. Maheshwari, SNR Denton

US District Court Case Update: Kilopass v. Sidense

“The U.S. District Court has delivered a Markman Order favorable to Kilopass on all of the ten most disputed patent terms in its patent litigation against Sidense.  This favorable result will help the jury understand more clearly Kilopass’ infringement case against Sidense in the upcoming trial in the summer of 2012.  We believe the U.S. District Court’s decision supporting Kilopass’ definition of key terms used in the three key Kilopass patents will greatly facilitate proving a case against Sidense for infringement of our intellectual property.  This case has always been about Sidense supplying their designs that incorporates Kilopass intellectual property to their customers who have built products that infringe our patents.  The lawsuit will not be resolved by the Patent and Trademark Office but by a jury next year.”

On September 9, 2011 a case management meeting was held before U.S. District Court Judge Susan Illston that set the remaining milestones in the case including the trial date as shown below:
1    Complete fact discovery December 19, 2011
2    Complete expert discovery June 30, 2012
3    Summary Judgment filed by July 13 2012
4    Pretrial conference – September 11, 2012
5    Trial date September 30, 2012

On October 11, 2011, Kilopass Filed Three Motions with the U.S. District Court:  (1) a motion to Dismiss the Business Tort Suit Brought by Sidense Corp., (2) a motion to oppose Sidense’s request to change its Invalidity Contentions (legal arguments for why Sidense does not infringe Kilopass’ patents), and (3) a motion to file under seal the evidence supporting Kilopass’s opposition to Sidense’s request to change its Invalidity Contentions.

On November 2, 2011, the US District Court denied Sidense’s latest attempted defense in the patent infringement case. The USPTO confirmation of Kilopass’ ‘751 patent and the latest court ruling will limit Sidense’s defense options with respect to the ‘751 patent at the jury trial in September 2012.

USPTO Update:

Four patents are currently before the U.S. Patent & Trademark Office (USPTO) for reexamination: Kilopass patents no. 6,856,540; no. 6,777,757 and no. 6,940,751 and Sidense patent no. 7,402,855. Below is a listing of recent USPTO activity.

1. On January 10th and 18th this year, respectively, the USPTO accepted a request to reexamine Kilopass patents No. 6,777,757 and No. 6,856,540. Both are awaiting examiner review.

2. On February 2nd this year, the USPTO validated all claims in the key Kilopass 6,940,751 patent on the 1T anti-fuse memory bit cell.

3. On August 22, 2011, Sidense appealed the USPTO validation of Kilopass ‘751 patent. The USPTO Board of Patent Appeals and Interferences will announce its decision in the first half of 2012.

4. On January 26, 2011, the USPTO validated the claims of Sidense’s 7,402,855 patent.

5. On June 22, 2011 Kilopass appealed the USPTO validation of Sidense ‘855 Patent. The USPTO Board of Patent Appeals and Interferences will announce its decision in the first half of 2012.

6. On September 22, 2011, Kilopass Filed a Rebuttal Brief for Inter Partes Reexamination of U.S. Patent No. 7,402,855, requesting that the U.S. Patent & Trademark Office Board of Patent Appeals and Interferences direct a reexamination of Sidense U.S. Patent No. 7,402,855.

7. Though the most recent U.S. Patent and Trademark Office (USPTO) ruling has no bearing on the U.S. District Court case, the USPTO again rejected the claims in 6,856,540 (‘540) and newly proposed claims to ‘540. While the District Court case proceeds based on the USPTO confirming all claims in Kilopass key patent 6,940,751, Kilopass will respond to the USPTO’s latest ruling in approximately a month; a month or so later Sidense can file a rebuttal and the USPTO reexamination process will continue.


An Open Letter to our Stakeholders:

Since we were founded in 2001, Kilopass has made a pledge to make our customers –– who happen to be leading design teams worldwide in the analog/mixed signal, automotive, consumer, industrial and mobile markets –– successful.  That pledge, which is part of our corporate culture, has rewarded us with many loyal customers and partners who have repeatedly asked us over the last several years whether Sidense’s products were infringing on our patents…  Read letter

Chronology of Kilopass’ IP Protection Actions
Date Summary Official Documents
May 14, 2010 Kilopass filed patent infringement lawsuit against Sidense in United States District Court for the Northern District of California (District Court). Complaint
May 21, 2010 Kilopass filed a request at the United States Patent and Trademark Office (USPTO) to reexamine Sidense’s U.S. Patent No. 7,402,855, and rule the patent invalid. Request
June 4, 2010 Kilopass filed an amendment to the district court filing to include infringe-ment of two additional US patents granted to Kilopass. The complaint now includes three patents: US 6,940,751, US 6,856,540 and US 6,777,757. In addition, the complaint also al-leges that Sidense violated multiple Federal, California and Common Law statutes concern-ing gross negligence, unfair business practices, false advertising, and defamation. Amended Complaint
July 28, 2010 Sidense files motion that the Court dismiss Kilopass patent infringement lawsuit, under Federal Rule of Civil Procedure 12 for failure to state a claim upon which relief can be granted. Sidense’s First Motion to Dismiss
Aug. 10, 2010 Kilopass notified that USPTO has granted its request for reexamination of Sidense’s patent. Office Action granting Kilopass’ request for Inter Parte ReexaminationOffice Action rejecting all 4 of Sidense’s patent claims
Oct. 14, 2010 Sidense’s motion for dismissal on procedural grounds (filed on July 29, 2010) of Kilopass’ complaint was rejected by the judge without oral argument. Order granted to proceed to case management hearing. Order granting plaintiff’s motion to file a second amended complaint and dismissing defendant’s motion to dismiss the first amended complaint
Oct.14 & 25, 2010 Sidense files a request at the United States Patent and Trademark Office (USPTO) to reexamine two of the three Kilopass patents included in the district court complaint. Request 1

Request 2

Nov. 1, 2010 Sidense files another dismissal on procedural grounds pushing the court back another month or two. Motion to dismiss
Nov. 24, 2010 Sidense files a request at the United States Patent and Trademark Office (USPTO) to reexamine Kilopass U.S. Patent Nos. 6,950,751. Request 3

Exhibit A

Exhibit B

Exhibit C

Exhibit D

Exhibit E

Exhibit F

Exhibit G

Exhibit H

Exhibit I

Exhibit J

Exhibit K

Exhibit L

Exhibit M

December 13, 2010 Court denies Sidense’s motion to dismiss the first through third and fifth through seventh causes of actions in Kilopass’ second amended complaint Court denies Sidense’s motion to dismiss 2010-12-13
December 30, 2010 Sidense Answer to Kilopass 2nd Amended Complaint. Sidense Answer to Kilopass 2nd Amended Complaint 2010-12-30
January 10, 2011 Kilopass notified USPTO has granted Sidense’s request for reexamination of Kilopass Patent Nos. 6,950,757 and 6,856,540. Exhibit AExhibit B
January 26, 2011 Kilopass notified that the U.S. Patent and Trademark Office (USPTO) has made two rulings on its request to re-examine Sidense’s patent No. 7,402,855. It affirmed Kilopass ownership of the fundamental 1T anti-fuse bit cell and affirmed Sidense’s patent claims on peripheral circuitry. Kilopass to appeal the latter. USPTO 855 Patent Ruling
February 3, 2011 USPTO validates one of three key Kilopass 1T Anti-Fuse Patents asserted against Sidense. Office Action in Inter Partes Reexamination

Office Action in Inter Partes Reexamination Exhibits

February 10, 2011 U.S. District Court Denies Sidense’s Motion for Delay. District Court Order Denying Stay

June 21, 2011 U.S. District Court granted Kilopass’ Motion to Compel against Amimon, and denied Sidense’s Motion to Quash and Motion for a Protective Order. Motion To Compel Response
September 2, 2011 U.S. District Court Markman Order Favors Kilopass over Sidense on All Ten Disputed Patent Terms. Markman Hearing Decision
September 9, 2011 In the wake of the Markman Hearing on August 31, 2011, U.S. District Court Judge Susan Illston called a case management meeting on September 9, 2011 to set the dates for the jury trial that will hear the Kilopass Technology -v- Sidense Corp. Patent Infringement Lawsuit. The minutes of this meeting are posted here. Case Management Conference Civil Pretrial Minutes
September 22, 2011 Kilopass Filed a Rebuttal Brief for Inter Partes Reexamination of U.S. Patent No. 7,402,855, requesting that the U.S. Patent & Trademark Office Board of Patent Appeals and Interferences direct a reexamination of Sidense U.S. Patent No. 7,402,855. Rebuttal Brief for Inter Partes Reexamination

Sidense Appeal Brief

Sidense response brief

Sidense Notice of Appeal

October 11, 2011 Kilopass Filed Three Motions with the U.S. District Court: (1) a motion to Dismiss the Business Tort Suit Brought by Sidense Corp., (2) a motion to oppose Sidense’s request to change its Invalidity Contentions (legal arguments for why Sidense does not infringe Kilopass’ patents), and (3) a motion to file under seal the evidence supporting Kilopass’s opposition to Sidense’s request to change its Invalidity Contentions. Motion to Dismiss Business Tort Suit

Opposition to Sidense’s request to change its Invalidity Contentions

Motion to file under seal

November 3, 2011 US District Court Denies Sidense’s Latest Attempted Defense in the Patent Infringement Case. U.S. District Court order denying Sidense’s motion to amend Invalidity Contentions.
November 8, 2011 Kilopass Technology Inc. files second motion to dismiss Sidense Corp.’s First Amended Complaint against Kilopass and Mr. Charlie Cheng. Kilopass’ Second motion to dismiss Sidense’s 1st amended complaint.

Khaliq declaration supporting Kilopass’ second motion to dismiss

Proposed order granting Kilopass 2nd motion to dismiss

November 28, 2011 Having no bearing on Kilopass’ U.S. District Court case against Sidense, the U.S. Patent and Trademark Office (USPTO) rejected claims in Kilopass patent 6,856,540 (‘540) and proposed new ‘540 claims. Kilopass will respond in about a month to the ruling; a month or so later Sidense can file a rebuttal and the reexamination process will continue. Latest USPTO Ruling on Kilopass patent 6,856,540.

Kilopass Lawsuit Press Releases
Date Press Release
November 3, 2011 Kilopass Announces the US District Court Has Denied Sidense’s Latest Attempted Defense in the Patent Infringement Case
September 7, 2011 Kilopass Says Business Tort Case a Legal Maneuver; Remains Focused on Winning Patent Infringement Trial
September 2, 2011 Kilopass Receives Favorable Markman Order Ahead of Its Patent Infringement Trial Against Sidense
February 10, 2011 U.S. District Court Denies Sidense’s Motion for Delay
February 3, 2011 USPTO Validates One of Three Key Kilopass 1T Anti-Fuse Patents Asserted Against Sidense
January 26, 2011 USPTO Affirms Kilopass Ownership of The 1T Anti-Fuse Memory Bit Cell
October 18, 2010 US District Court Accepts Kilopass’ Expanded Complaint and Denies Sidense’s Motion for Dismissal in Patent Lawsuit
August 12, 2010 US Patent and Trademark Office (USPTO) Rejects All Claims of Sidense’s Key Patent (‘855) and Orders Reexamination
May 24, 2010 Kilopass Files Action Against Key Sidense Patent at United States Patent and Trademark Office
May 17, 2010 Kilopass Files Patent Infringement Lawsuit Against Sidense

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