A Blog About Intellectual Property Litigation and the District of Delaware


A few days ago, Magistrate Judge Fallon denied a request to stay her discovery ruling pending the losing party's objections and review by the District Judge. Defendant SXM in Fraunhofer-Gesellschaft Zur Forderung der angewandten Forschung e.V. v. Sirius XM Radio Inc., C.A. No. 17-184-JFB-SRF asked Judge Fallon to follow the parties' "agreed-upon practice" to stay discovery rulings pending objections, a practice the parties had apparently followed in two prior instances.

Or not.
Or not. Erik McLean, Unsplash

On October 7, Judge Fallon ordered that the plaintiff's experts should have access to defendant SXM's confidential information. About a week later, the parties submitted a letter setting forth their respective positions on whether the discovery ruling should be stayed.

Judge Fallon declined to stay her ruling. She noted that a stay is an "extraordinary remedy" and that the stay factors did not support granting such a remedy:

First, Defendant does not suggest there is a substantial likelihood that the District Judge will find the discovery ruling "clearly erroneous or contrary to law." . . .
Second, the likelihood of irreparable harm to Defendant in the future remains speculative, as there is no dispute that the experts' past work did not involve SXM's confidential information. . . . Moreover, the Court's ruling mitigated the effects of the disclosure of confidential information by limiting disclosure to two individuals "and restricting their ability to otherwise disclose or use the documents." . . . If Defendant prevails on its objections, the District Judge may further enhance these protections.
Third, the Court maintains its "concern... about the delay that has already occurred in this case" and endeavors to facilitate the progress of expert discovery.

The case was filed in February of 2017, and has already gone up to the Federal Circuit once. Both of Judge Fallon's prior R&Rs were adopted in their entirety by Judge Bataillon, over the objections of one or both parties.

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