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Leader v. Facebook - Facebook's prized "evidence" was a trick

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Leader v. Facebook - Facebook's prized
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This blog analyzes Interrogatory No. 9, Facebook's evidentiary centerpiece of their lone and weakly held "on sale bar" victory (they were judge to "literally infringe" all 11 of 11 Leader claims and there is no prior art). This evidence appears to put a wooden stake in the heart of Facebook's trial shenanigans. It shows that the jury based its "on sale bar" decision on Interrogatory No. 9 which Facebook had altered very deceptively -- concealing over 60% of its contents in an obvious breach of the Fed. R.Evid. Rule 106 and the Doctrine of Completeness. Essentially, Facebook concealed all of Leader's objections to the interrogatory that would have put the question in context. Among the objections were Leader's claim that the question was vague and ambiguous, that it should be the subject of expert testimony (since it was about legal patent claim issues, and should not be a question to company executives) , and that the question was not relevant to the claims in the case at the time, which it was not. Surprisingly, the trial court overruled Leader's objections to the admissibility of this heavily-altered document. The trial court's Opinion cited this interrogatory as the basis for Facebook's on sale bar argument.

Leader Technologies, Inc. v. Facebook, Inc., 08-CV-862-JJF-LPS (D.Del. 2008); Fed. Cir. Case No. 2011-1366.

Facebook principals involved in this lawsuit include mark zuckerberg, peter thiel, heidi keefe, mark weinstein, michael rhodes, james w. breyer, samuel orourke, cooley godward, white & case

Leader principals involved in this lawsuit include Michael T. McKibben, Jeff Lamb, Paul Andre, Lisa Kolialka, James Hannah, Sean Boyle, michael lee, hannah lee, Phillip Rovner, Jonathan Choa, king & spalding, kramer levin, potter anderson, Daryl Joseffer, Adam Conrad

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Origin of Facebook's

technology?

Important new facts have emerged from Leader v. Facebook





WBNS-10TV (CBS) Columbus, Ohio Aug. 29, 2011 – Leader v. Facebook Leader Technologies,

Inc. v. Facebook, Inc.,

Inc.,

08-cv-862 (D.Del. 2008)





Scroll down

below CBS-TV news

video to read posts

WBNS-10TV (CBS)

investigative report by

Paul Aker, Aug. 29, 2011 ««« TABLE OF POSTS



Facebook's prized

"evidence" was a trick



Facebook's "clear and

convincing" burden of

proof in Leader v.

Facebook

© WBNS The fight goes on. Click to read Leader's Federal Circuit Opening Brief. The trial resulted in a split

verdict. Leader won on "literal infringement" of 11 of 11 claims and no prior art. Facebook won on a 11/28/2011 - Leader's

technicality called on sale bar that "invalidates" the patent for this trial only if not overturned. Leader says

lawyers dismantle

Facebook's

Facebook confused the jury with attorney "trial theater" instead of "clear and convincing" evidence.

"schizophrenic" response

brief



Click here for an HTML version of this post Click here for

SUMMARY "Bottom Line:

Sunday, January 15, 2012 American Innovation is on

the line"

Facebook's prized "evidence" was a trick 1. Mark Zuckerberg used

Leader white paper to

OPINION: One blogger's perspective

build Facebook



Facebook concealed over 60% of Interrogatory No. 2. Jury transforms

disbelief into evidence

9; breached the completeness doctrine (Fed.

R.Evid. 106) 3. No evidence? No

problem. Fabricate it.



January 15, 2012 – According to the trial court, Facebook’s lone trial victory for public 4. Facebook’s' trial

disclosure/on sale bar in the Leader v. Facebook patent infringement trial was founded conduct

on Interrogatory No. 9. The judge allowed Facebook to introduce this evidence over

Leader’s objections and the Federal Rules of Evidence 106 (completeness). Here’s 5. Facebook's "court

room theater"

what the jury was given, contained in the jury binder sleight of hand: Doc. No. 627-23;

Doc. No. 627-24; See Facebook's jury binder innuendo; See also Fig. 1 below. 6. Facebook's "I'm tired"

tactic

Facebook's pleadings averaged 24 double-spaced lines per page. Counting the six

Interrogatory No. 9 pages between the captions and the signatures, and not counting 7. Missing Facebook

omitted pages, Facebook redacted 60% of the content. Documents



8. Expert witness

Facebook's public disclosure/on sale bar argument turned on Interrogatory No. 9 as an

practices "dark arts"

alleged "inventor's admission" that the Leader2Leader technology in late 2002

contained the same technology as discussed in the interrogatory. Opinion 45-55. An 9. Patent Office records

"interrogatory" is a pre-trial question put to a person who answers under oath. disprove Facebook

Facebook's attorney Michael Rhodes admitted that Facebook relied on this altered

interrogatory as "a foundation for the on-sale issue." Tr. PageID #: 10421:10-11. 10. Facebook's jury

binder innuendo







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Fig. 1 - Facebook concealed more than 60% of Interrogatory No. 9, which their Cooley Godward attorney

Michael Rhodes admitted to the trial court was a "foundation" for their on sale bar argument. Professor

Wigmore, an often-cited legal scholar, admonishes against allowing such doctored evidence. See John Email address... Submit

Henry Wigmore, Encyclopedia Britannica Online. This figure is an animated GIF (6MB). Interrogatory No. 9 is

mocked up with textual greeking to approximate a complete interrogatory, consistent with other full

interrogatories in evidence. Doc. No. 627-23; Doc. No. 627-24.



The trial court's allowance of this dramatically altered interrogatory is a clear breach of

the Doctrine of Completeness (founded on the Federal Rules of Evidence Rule 106).

The problems associated with Facebook's concealment is best described by legal

scholar Professor John H. Wigmore:





"Possibilities of error lie in trusting to

a fragment of an utterance without

knowing what the remainder was."

Wigmore, Evidence, 3rd ed.

(on the doctrine of completeness)



Facebook concealed more than 60% of the

contents of Interrogatory No. 9 from the jury.



Facebook's version of Interrogatory No. 9 was

the foundation of their on sale bar argument.



Remarkably, the foundation of Facebook's on sale bar argument is a single

interrogatory in which over 60% of its content was concealed from the jury over

Leader's objection. All of Facebook's other evidence keys off this interrogatory. Surely

a fragmented interrogatory cannot survive the "heavy burden" of clear and convincing

standard of proof.



The legal standard of "clear and convincing" evidence is required for Facebook to prove

its case. Without it, Facebook cannot win legally. Doc. No. 601 Final Jury Instructions,

No. 4.7 ("clear and convincing evidence").



Facebook's "heavy burden" of "clear and convincing" evidence was affirmed recently

by the US Supreme Court. See Microsoft Corp. v. i4i Ltd. Partnership, 131 S. Ct. 2238

(Supreme Court 2011) at 2247 ("a defendant raising an invalidity defense bore "a heavy

burden of persuasion," requiring proof of the defense by clear and convincing

evidence"); Id. at 2248 ("the burden of proving prior inventorship 'rests upon [the

defendant], and every reasonable doubt should be resolved against him,' without tying

that rule to the vagaries and manipulability of oral testimony . . . [a]nd, more than 60

years later, we applied that rule where the evidence in support of a prior-use defense

included documentary proof—not just oral testimony").





Facebook concealed Leader’s written objections, thus

stripping away the context for Interrogatory No. 9



The 2009 interrogatory asked what current Leader products and services practice

(present tense) the invention. McKibben answered "Leader2Leader® powered by the

Digital Leaderboard® engine is covered by the '761 Patent." Doc. No. 627-23 (DTX

0963); Doc. No. 627-24 (DTX 969). This question did not ask about Leader history, yet

Facebook asserted at trial that Leader should have expanded the answer to include

times past. However, Leader had no such burden. This assertion is akin to asking you

what you are wearing, but then arguing that you should have expanded your answer to

include everything you have ever worn.





More Facebook obfuscation



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Facebook's counsel contradicted himself. He first asked the jury "He [McKibben] never

showed you the product, did he? And he didn’t say it has this one or this one or this

one." However, this implication of a burden shift contradicted his earlier statement that

“my burden is higher." Tr. PageID# 11510:20-22; 11528:9-16; 11497:5. Such

contradictory arguments (that easily confuse a jury) are well-known obfuscation,

sometimes called the "dark arts." See Facebook’s' trial conduct; Facebook's "court

room theater"; Facebook's "I'm tired" tactic; Missing Facebook Documents; Facebook's

jury binder innuendo; Expert witness practices "dark arts".



“[C]ounsel's strategy consisted of efforts to obfuscate, cover-up, and

subvert evidence.” Advanced Display Systems, Inc. v. Kent State

University, 212 F. 3d 1272 (Fed. Cir. 2000) at 1288.



Misrepresented the legal standard. E-Pass Technologies, Inc. v. 3Com

Corporation (Fed. Cir. 2009) at II.



“[D]eliberately obfuscated their claim.” Wright v. United States, 728 F. 2d

1459 (Fed. Cir. 1984) at 140.



Facebook's burden never shifted to Leader



The U.S. Supreme Court recently confirmed Facebook's "clear and convincing" burden

of proof, citing 30 years of Federal Circuit precedent:



"[A] patent is valid and imposes the burden of proving invalidity on the

attacker. That burden is constant and never changes and is to convince

the court of invalidity by clear evidence."



"[A]n infringer who assails the validity of a patent fair upon its face bears

a heavy burden of persuasion, and fails unless his evidence has more

than a dubious preponderance" (emphasis added).



"[T]he burden of proving [on sale bar] invalidity [is] on the attacker

[Facebook]. That burden is constant and never changes" citing Judge

Rich, a principal drafter of the 1952 Patent Act (emphasis added).



Microsoft v. i4i at 2243, 2245; Supra.



Microsoft v. i4i and Leader v. Facebook have similar fact

patterns



In Microsoft v. i4i, Microsoft alleged that an i4i product with the brand name "S4" was

sold more than 12 months before the priority date. i4i did not dispute that, but its two

inventors testified that S4 did not contain the invention at that time. The testimony of

the two inventors was all Microsoft had since the S4 source code had been destroyed

years before. The jury ruled that Microsoft had not met its clear and convincing burden

of proof to overcome the inventor's testimony.



In Leader v. Facebook, Facebook alleged that a product with the brand name

"Leader2Leader" was sold more than 12 months before the priority date. Leader did not

dispute that, but its two inventors testified that Leader2Leader did not contain the

invention at that time. Unlike i4i's absence of source code, Facebook was given

access to the full Leader source code. Even so, Facebook did not present any of that

source code at trial to support its on sale bar accusation. Instead, Facebook presented

Interrogatory No. 9, and reinforced it with a smattering of emails and documents that

mentioned the Leader2Leader brand name.



The Microsoft v. i4i jury concluded that Microsoft had not met its burden of proof by

merely showing that a product with the brand name "S4" had been sold. In other words,

proof requires more than inferences and allegations.



The Leader v. Facebook jury, on the other hand, decided that mere reference to a

brand name "Leader2Leader" was sufficient inference proof that the brand must have

contained the invention, even though Facebook presented no source code to prove it.



The fact patterns are similar in that both Microsoft and Facebook relied largely on the

testimony of the two inventors in each case for their on sale bar evidence. Both

Microsoft and Facebook argued that mere reference to a brand name was sufficient

proof. Neither i4i nor Leader denied use of the brand name more than 12 months before

the critical date. Each of the two inventors for i4i and Leader testified that their

respective brand names S4 and Leader2Leader did not embody their inventions more

than 12 months before the critical date. Neither Microsoft or Facebook presented any

source code evidence to prove their accusations. Both Microsoft and i4i were found to

infringe.







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What is glaringly different is the fact that while Microsoft had no i4i source code,

Facebook did have Leader's source code, but did not present any of it at trial.



What is also different is the outcome of the cases regarding on sale bar. The Microsoft

v. i4i jury ruled that Microsoft had failed to prove on sale bar by clear and convincing

evidence. In other words, it found that mere references to brand names are not proof of

the kind needed to meet the "heavy burden."



Surprising, with arguably stronger facts than i4i's (Facebook had Leader's source code),

the Leader v. Facebook jury ruled that Facebook had met its "clear and convincing"

burden for on sale bar—even though they used only references to a brand name;

effectively replicating Microsoft's no-hard-proof argument.





Reference to brand names are not proof of innovative

source code



The main apparent difference between these cases, as was highlighted by the trial

judge's Opinion, is this Interrogatory No. 9, and the smattering of "Leader2Leader"

references in documents and emails ushered in behind it to reinforce the innuendo.

Leader argues that brand name references are not the kinds of hard evidence required

to meet Facebook's clear and convincing burden of proof. The Microsoft v. i4i trial

court, Federal Circuit, and now the US Supreme Court appear to agree with Leader that

mere citing of brand names are not enough.





Facebook confused the jury with a self-styled

"substantial" evidence standard instead of actual "clear

and convincing" evidence



Facebook argues that its evidence is "substantial." However, substantial volume is not

the criteria. That it might substantially support a dubious theory is also not the criteria.

Indeed, Facebook's "evidence" merely supports their presumptions founded on

Interrogatory No. 9--that the 2009 interrogatory admitted that the brand name

Leader2Leader, for all time (and especially in 2002), embodied the invention. Leader's

two inventors testified that it did not, and could not, because it was not ready. Without

source code to prove otherwise, or at least very detailed engineering documents

showing the Claim 1 tracking component, context component and storage component,

nothing in evidence proves Facebook's theory. As a result, Facebook's "evidence" is

nothing more than attorney trickery dressed up to look like evidence.





Was Facebook’s fragmented interrogatory dubious?



Facebook presented 60%-redacted Interrogatory No. 9 as a part of its jury binder

hocus-pocus. The trial court overruled Leader's objection to its admissibility. Tr.

PageID #: 10421:7-8.



What was redacted? Facebook concealed Leader's many objections to the questions,

and especially that they were vague and ambiguous. Hindsight says this objection was

prophetic, given Facebook's subsequent effort to re-purpose the interrogatory. Leader

also objected to use of the interrogatory outside the context of expert testimony.

Tellingly, Facebook presented no expert testimony on the subject of public

disclosure/on sale bar.



Even the trial court was ambiguous as to whether Facebook's evidence was "clear and

convincing." The trial court wrote only that "there was evidence to support a finding."

Opinion 55. The law is clear that the mere existence of some evidence is not enough to

support the clear and convincing standard.



Evidence in legal proceedings is redacted when: (a) it is not relevant to the case, (b)

protects someone’s privacy, or (c) is under a protective order. None of these reasons

apply to the interrogatory. Instead, Facebook concealed Leader's objections to the

interrogatory that would have allowed the jury to view the statements in their full

context.



Again, Facebook's redactions beg the question about what was redacted and how did it

prejudice Leader? Current news about Martin Luther King Jr. illustrates this point about

the impact of redaction on meaning. MLK's family complains that a redacted quote on

the Martin Luther King Jr. National Memorial makes him sound arrogant. While

reasonable minds can disagree whether it does or doesn't, the family considered it an

unacceptable truncation of a larger thought. MLK did not say he was a drum major, but

was reflecting on that moniker if others considered it applicable to him.



Redacted MLK statement:





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"I was a drum major for justice, peace and righteousness."



Original MLK statement:



“If you want to say I was a drum major, say I was a drum

major for justice, peace and righteousness. ”



Clearly, context matters. Facebook concealed ALL of Leader's objections to the

request, and without this full context for Interrogatory No. 9, common sense alone says

that Facebook led the jury down a slippery slope.





Dubious evidence creates dubious conclusions



Without proper context, Facebook's 60%-redacted Interrogatory No. 9 is dubious. Such

dubious evidence can only result in an equally dubious jury conclusion.



As a result, the "additional" evidence cited by the trial court in its footnote to support

Facebook's obscured Interrogatory No. 9 are equally the fruit of a poisoned tree of

evidence. Opinion 55.





Facebook’s 60% redaction created a "false notion"



Professor Wigmore said:





"To look at a part [of an utterance] alone

would be to obtain a false notion of the

thought."

Wigmore, Evidence; United States v. Corrigan, 168 F. 2d

641 (1948) at 645 (emphasis added).



The dangers inherent in Facebook's concealment of the proper context are easily

illustrated by use of Facebook’s own remaining words in the interrogatory as a

hypothetical example.







Facebook asked about Leader products and services:









Fig. 2 - Facebook's unaltered Interrogatory No. 9. Facebook asks Leader about their products and services.

Doc. No. 627-23.









Or, did Facebook ask for a patent claim chart (redacted)?









Fig. 3 - Facebook's Interrogatory No. 9--REDACTED (to intentionally alter its context and meaning). This is

now a request for a patent claim chart, and not for information about products and services. This simple

example shows how redactions can be misleading. Doc. No. 627-23.



In this example, Facebook asked in Fig. 2 for a statement about Leader’s products and

services. However, the hypothetical Fig. 3 redaction appears to ask not about products

and services, but about a patent claim chart. The hypothetical redaction in Fig. 3

makes the request ambiguous. This simple example using all-Facebook words further

illustrates the sagacity of Professor Wigmore’s admonition against tampering with

evidence. The error in allowing Facebook's doctored version of Interrogatory No. 9 is

evident.





Facebook breached the completeness doctrine by

introducing a doctored Interrogatory No. 9

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introducing a doctored Interrogatory No. 9



In overruling Leader's objection, the trial court prevented the jury from obtaining a full

contextual view of Interrogatory No. 9, including Leader's many objections. The well-

settled doctrine of completeness is intended to prevent just the sorts of prejudices

suffered here.



"Rule 106. Remainder of or Related Writings or Recorded

Statements. When a writing or recorded statement or part thereof is

introduced by a party, an adverse party may require the introduction at

that time of any other part or any other writing or recorded statement

which ought in fairness to be considered contemporaneously with it."

Federal Rules of Evidence Rule 106.



"[F]airness dictates that the balance be received so that the jury will not

be misled." United States v. Rubin, 609 F. 2d 51 (1979) at 63.



"The rationale of the doctrine of completeness has been stated by

Professor Wigmore: 'To look at a part [of an utterance] alone would be to

obtain a false notion of the thought. * * * One part cannot be separated

and taken by itself without doing injustice, by producing is

representation'; and again, 'possibilities of error lie in trusting to a

fragment of an utterance without knowing what the remainder was';

consideration of the whole is needed 'to avoid the danger of mistaking the

effect of a fragment.' See Wigmore, Evidence, 3rd ed., §§ 2094, 2104,

2113, 2119, 2120." United States v. Corrigan, 168 F. 2d 641 (1948) at

645 (emphasis added).



The trial court's rationale in allowing Facebook to introduce a heavily-doctored (and so

evidently prejudicial) Interrogatory No. 9 is baffling. Without Interrogatory No. 9,

Facebook's on sale bar argument dies.





***





Posted by Patent Blogger 4 at 6:46 PM



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Other posts in this series of blogs about Leader v. Facebook



Facebook's prized "evidence" was a trick

Facebook's "clear and convincing" burden of proof in Leader v. Facebook

Leader's lawyers dismantle Facebook's "schizophrenic" response brief

SUMMARY - Leader v. Facebook trial analysis--American Innovation is on the line

1. Mark Zuckerberg used Leader white paper to build Facebook

2. Jury transforms disbelief into evidence

3. No evidence? No problem. Fabricate it.

4. Facebook's trial conduct

5. Facebook's "court room theater"

6. Facebook's "I'm tired" tactic

7. Missing Facebook Documents

8. Expert witness practices "dark arts"

9. Patent Office records disprove Facebook





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