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Re: elliot1234 post# 82368

Tuesday, 08/01/2006 4:04:55 AM

Tuesday, August 01, 2006 4:04:55 AM

Post# of 326352
I'm not an expert on patent litigation, but I have done some research on this and it is hard to predict with precision when the Scanbuy case will be over. Nevertheless, these are my (admittedly overly general and superficial) observations:

First, it must be remembered that a settlement agreement between the parties can bring this to an end at any time.

Second, if other cases are a guide, we can expect a ruling from the special master within 6-12 weeks after the Markman hearing. The special master is not the judge. He/she is technical patent expert who runs the Markman hearing and determines the scope of Neom's patents and whether Scanbuy's activities are infringing. I expect the ruling from our Markman hearing by mid-late late September. But it could be sooner.

Third, If that ruling is in Scanbuy's favor (i.e. the special master finds that, even if Neom's patents are valid, Scanbuy is not infringing) then the case is most likely over, because there would be nothing left to litigate. Scanbuy would be expected to immediately file a motion for summary judgment with the judge, and the judge would most likely grant it. But I think this outcome has little probability; if Neom had no case it would not have pursued the matter this far.

Fourth, the ruling will most likely be in Neom's favor, but the question is how much in Neom's favor? This depends on how broadly, or narrowly, the special master construes the patents in issue.

Fifth, In any event, after getting a favorable ruling from the special master, Neom will immediately file a motion for summary judgment with the judge. Scanbuy will likely oppose that motion and ask the judge to move the trial to the next phase: the real trial where Scanbuy will get to challenge the validity of Neom's patents based on obviousness, prior art, and/or the other standard legal bases to challenge patent validity. This phase will almost certainly involve a jury. But first Scanbuy would have to make some demonstration to the judge that its challenges to patent validity are not frivolous, i.e. that it has some chance of success, that it will be able to provide some evidence (including expert testimony) in support of the challenges it intends to raise. So, barring a settlement, we could see a jury trial in the first couple of months of 2007, and final judgment by - my guess - March.

Note: any summary judgment order or final judgment order could be the subject of an appeal. So the case could live on for another year or so. But the PPS can be expected to react significantly to any such order, notwithstanding the fact that an appeal has been filed.