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Biscotti Inc. v. Microsoft Corp.

United States District Court, N.D. California

April 19, 2017

BISCOTTI INC., Plaintiff,
v.
MICROSOFT CORPORATION, Defendant.

          ORDER REGARDING MOTION TO COMPEL RE: DKT. NO. 1

          KANDIS A. WESTMORE United States Magistrate Judge

         On January 13, 2017, Petitioner Biscotti Inc. filed a motion to compel compliance with a subpoena issued against Respondent Twitch Interactive, Inc. (Pet.'s Mot., Dkt. No. 1.) The subpoena was issued in connection with Biscotti Inc. v. Microsoft Corp., Case No. 2:13-cv-1015-JRG-RSP, a patent infringement case currently pending in the Eastern District of Texas. (See Alper Dec., Exh. 2, Dkt. No. 1.) The Court deems the matter suitable for disposition without hearing pursuant to Civil Local Rule 7-1(b). Having considered the papers filed by the parties and the relevant legal authority, the Court GRANTS IN PART and DENIES IN PART the motion to compel, for the reasons set forth below.

         I. BACKGROUND

         Petitioner owns Patent No. 8, 144, 182 ('182 patent), which "relates to a video communication system, which, at a high level, permits video communication between multiple video communication devices." (Pet.'s Mot. at 5; Alper Dec., Exh. 1.) Petitioner filed a lawsuit against Microsoft Corporation ("Microsoft"), alleging that Microsoft's Xbox One and Xbox One S gaming consoles (collectively, "Xbox One Systems") infringe on the '182 patent. (Pet.'s Mot. at 5.) Respondent developed the "Twitch" application; after a player installs the Twitch application to an Xbox One System, the player can "broadcast his or her gamestream, including a video of himself or herself--captured by a component of the Xbox One Systems called the Kinect--to third parties interested in watching that gamestream." (Id.) When installed on a Xbox One System, the Twitch "application and related infrastructure . . . comprise[] an important part of a system that infringes the '182 patent." (Id. at 5-6.)

         On November 1, 2016, Petitioner served Respondent with a subpoena, which included ten document requests and twelve topics for deposition. At issue are the following:

Request No. 9:
All Documents and things related to: (i) financial data, projections, or estimates of the value of the game streaming market; and (ii) Twitch's market share of the game streaming market relative to its competitors, including without limitation Beam.pro, YouTube Gaming, Azubu, Dingit, and Hitbox.
Request No. 10:
All Documents and things related to the Twitch functionality permitting broadcasting of video from a video capture device, including without limitation web cameras, PlayStation Camera, and Kinect, the decision to include this functionality in Twitch, and any documents relating to the value of the functionality to Twitch broadcasters or viewers.
Topic No. 11:
Financial data, projections, or estimates of the value of the game streaming market, and Twitch's market share of the game streaming market relative to its competitors, including without limitation Beam.pro, YouTube Gaming, Azubu, Dingit, and Hitbox.
Topic No. 12:
The Twitch functionality permitting broadcasting of video from a video capture device, including without limitation web cameras, PlayStation Camera, and Kinect, the decision to include this functionality in Twitch, and the value of ...

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