Richards Layton & Finger
 

Chief Judge Stark Orders Production of Defendants' Sales Data

June 14, 2018

In Interface Linx, LLC v. Onkyo USA Corp., No. 17-1099-LPS (D. Del. April 13, 2018), and related actions, Chief Judge Stark ordered the defendants to produce sales data for the accused products dating back to six years before the date of the suit. The defendants had resisted production of the sales information on grounds of relevance, arguing that the plaintiff would not be able to show direct infringement and had waived the ability to pursue claims of indirect infringement. (A motion to dismiss on these grounds was also pending.) The Court held that the defendants could not limit their discovery obligations based on these assertions or on the basis that a motion to dismiss was pending; furthermore, the discovery could be relevant to secondary considerations of non-obviousness. But Chief Judge Stark stayed the defendants’ obligation to produce the information until the day after the hearing on the motion to dismiss.

Key Point: Chief Judge Stark stated that the sales data could be relevant to issues such as secondary considerations of non-obviousness, and that generally a motion to dismiss does not automatically stay discovery.