No common interest with litigation financing companies ruling is upheld

Leader Technologies, Inc. v. Facebook, Inc., Civil Action No. 08-862-JJF, June 24, 2010.

Farnan, J.  Plaintiff’s objections to the Magistrate’s discovery order of March 10, 2010 are overruled.  Defendant’s objections to the Magistrate’s discovery order of April 27, 2010 are overruled.

The patent-in-suit relates to management and storage of electronic information.  Plaintiff failed to establish that a common interest privilege existed and was ordered to produce documents withheld under that privilege.  The common interest asserted was between Plaintiff and litigation financing companies.  Plaintiff was also granted limited relief on its motion to compel, requiring Defendant to produce updated Wiki data points.  Finally, Defendant was entitled to access to Plaintiff’s source code.  Defendant sought to reopen discovery to take discovery of third parties to determine whether non-disclosure agreements received demonstrations or offers for sale of the patented invention.  The Magistrate had limited this line of discovery to six third parties.  The court upheld this ruling, noting it was within the Magistrate’s discretion to try to preserve the trial date by limiting this discovery, and nothing precludes Defendant from making a subsequent application for relief.

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