Dentons secured a resounding victory for client Nistica, Inc. in one of the largest patent cases litigated in recent years in the U.S district courts, Finisar Corp. v. Nistica, Inc., Case No. 5:13-cv-03445. On April 5, the Federal Circuit Court of Appeals in Washington, DC ruled unanimously affirming Nistica’s complete victory in two jury trials in this large 6-patent case. The Federal Circuit’s order came within 24-hours of the oral argument.
This patent infringement case is between Nistica, Inc. of Bridgewater, New Jersey, a subsidiary of Japan-based Fujikura Ltd., and its competitor Silicon Valley-based Finisar Corp., the world's largest supplier of optical communication products. In July 2013, Finisar filed suit against its competitor in the optical networking business alleging infringement of more than 150 patent claims in six separate families of complex optics patents. The technology and products are wavelength selective switches used in advanced telecommunications networks throughout the world. Finisar sought a permanent injunction to protect more than a billion dollars in revenue and to block Nistica's participation in a key segment of the market in this "bet the company" case for Nistica. Four of Finisar’s six asserted patents were knocked out of the case on summary judgment or dropped prior to trial following Daubert motions and motions in limine.
On May 2, 2016, after three years of hard fought litigation, Finisar proceeded to trial on the remaining two patents, U.S. Patent No. 7,397,980 (“’980 patent”) and U.S. Patent No. 7,092,599 (“’599 patent”). A federal jury in San Jose, California, returned a unanimous 8-0 verdict of noninfringement in favor of Nistica, Inc. on the ‘980 patent. The jury was deadlocked 7-1, in Nistica's favor, upon Finisar's failure to prove infringement of the ‘599 patent. Because jury verdicts must be unanimous in that court, a second jury trial was held in June 2016 on Finisar's accusation that Nistica infringes the ‘599 patent.
Between the two jury trials, U.S. District Judge Beth Labson Freeman conducted an additional claim construction proceeding, which Nistica won on June 9, 2016. On June 27, 2016, a second jury returned a unanimous verdict 8-0 in Nistica's favor finding noninfringement of the ‘599 patent. Following the second jury trial, the Court entered judgment in Nistica's favor and dismissed with prejudice all of Finisar's claims as to all patents and all products.
On January 20, 2017, the court upheld the jury verdicts in their entirety sealing Nistica’s complete victory, denying plaintiff Finisar's motions for judgment as a matter of law and for a new trial. On April 5, 2018, the Federal Circuit ruled in Nistica’s favor affirming the district court judgment, and denying Finisar’s challenge to the jury verdicts.
"Nistica provides exceptional technologies for the highly competitive communications industry and the outcome of this case was critical to removing unnecessary barriers to business. Protecting Nistica's assets and ability to bring these important innovations to the market was our team's ultimate goal," said Robert Kramer, Co-Chair of Dentons' Patent Litigation Practice, who is lead trial counsel for Nistica and argued Nistica's Federal Circuit appeal. “This resounding victory speaks volumes about Nistica’s products and technology and we look forward to enabling the company to continue strategic growth through innovations,” said Victor H. Boyajian, Global Chair of Dentons’ Venture Technology Group.
Dentons trial and appellate team representing Nistica consists of attorneys Rob Kramer, Lora Brzezynski, Russell Tonkovich, Jennifer Bennett, Heather Khassian, Shalu Maheshwari, Richard Salgado, Joel Bock, Ken Jenq, Patrick Doll, Andrew Azarmi, and legal assistant Adriana Cole.
Finisar Corp. is represented by Weil Gotshal & Manges LLP of Redwood Shores, CA, and Radulescu LLP of New York, NY.
Dentons' Intellectual Property and Technology practice consists of more than 100 lawyers and professionals, including numerous experienced electrical engineers, mechanical engineers, computer scientists, chemical engineers, PhDs and other technically trained professionals holding advanced degrees. Dentons' IP group has consistently received top rankings in leading trade publications, including IAM Patents 1000, Legal 500 and Chambers USA. In addition, the group was named an “IP Litigation Powerhouse” in the BTI Litigation Outlook 2018, which also included Dentons in its "Fearsome Five" in recognition of the litigators' intense approach and fiercely successful tactics. Law360 lists Dentons as one of the nation's “Top 50 Litigation Powerhouse Firms."
