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`
`Case No. CBM2012-00001
`Attorney Docket No. 09449.0025-00000
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`__________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`__________________
`
`SAP AMERICA INC. AND SAP AG,
`Petitioners,
`
`v.
`
`VERSATA DEVELOPMENT GROUP INC.,
`Patent Owner.
`
`_________________
`
`Case CBM2012-00001
`Patent 6,553,350
`
`_________________
`
`Before the honorable MICHAEL P. TIERNEY, SALLY C. MEDLEY and RAMA G. ELLURU.
`
`
`
`
`
`PETITIONERS’ OPPOSITION TO PATENT OWNER’S MOTION FOR ADMISSION
`PRO HAC VICE OF SCOTT L. COLE
`
`Petitioners SAP America Inc. and SAP AG (collectively “SAP”) oppose the request of
`
`Patent Owner Versata (“Versata”) to have its lead trial counsel, Scott L. Cole, appear in this
`
`proceeding [Paper No. 12] (“Versata’s Motion”). Having Versata’s trial counsel participate in
`
`this proceeding would severely prejudice SAP because Mr. Cole has accessed, and has ongoing
`
`access to, SAP confidential information in the underlying district court litigation involving the
`
`patent-at-issue. Thus, it would be improper to allow Mr. Cole to participate in the prosecution
`
`activities of this proceeding, which allows Versata to amend its claims, with the knowledge he
`
`has of SAP products accused of infringement. Even though Mr. Cole would undoubtedly
`
`conduct himself with the best of intentions, given his exposure to SAP’s confidential
`
`
`
`

`

`
`information, that bell cannot be “un-rung.” Accordingly, SAP requests that the Board deny
`
`Case No. CBM2012-00001
`Attorney Docket No. 09449.0025-00000
`
`Versata’s Motion.
`
`I.
`
`Pro Hac Vice Admission to Appear Before the Board is Discretionary and Subject
`to Any Conditions Set Forth by the Board
`
`37 C.F.R. § 42.10(c) allows for pro hac vice representation before the Board upon a
`
`showing of “good cause.” The grant of a motion to appear pro hac vice is a “discretionary action
`
`taking into account the specifics of the proceeding.” 77 Fed. Reg. 48618 (August 14, 2012).
`
`Indeed, admission is subject to “any other conditions as the Board may impose.” Id. The
`
`specifics of this proceeding warrant the Board’s consideration of “other conditions” to deny
`
`Versata’s motion.
`
`II.
`
`Mr. Cole’s Access to SAP’s Confidential Information in the Underlying Litigation
`Should Preclude Him from Participating in the Prosecution Activities of this
`Proceeding
`
`In the district court litigation involving the patent-at-issue (“the ’350 patent”), Versata
`
`Software, Inc. v. SAP America, Inc., No. 2:07-cv-153 (E.D. Tex), trial counsel for Versata gained
`
`access to highly confidential and proprietary information about SAP and its products. Use of this
`
`information in that case is governed by a Protective Order. As lead trial counsel, Mr. Cole has
`
`had access, and still has access, to SAP’s protected materials. In fact, Versata relies on Mr.
`
`Cole’s knowledge of the underlying litigation, which involved alleged infringement of the patent,
`
`to support its showing of good cause in its motion. (Versata’s Motion at 3.)
`
`Mr. Cole’s participation in both proceedings puts him in the precarious position of being
`
`able to affect the scope of the claims of the ’350 patent while knowing how SAP’s products
`
`operate beyond that publically known. The statute and Board rules provide Versata the ability to
`
`amend the claims of the ’350 patent during this CBM proceeding. 35 U.S.C. § 326(a)(9);
`
`
`
`

`

`
`37 C.F.R. § 42.221. Indeed, the Patent Office recognizes that “it is expected that amendments to
`
`Case No. CBM2012-00001
`Attorney Docket No. 09449.0025-00000
`
`a patent will be sought.” 77 Fed. Reg. 48618 (August 14, 2012).
`
`District courts have recognized concerns regarding trial counsel’s involvement in Patent
`
`Office proceedings that allow the patent owner to amend its claims. For example, in Bear Creek
`
`Technologies Inc. v. Verizon Services Corp., 2012 WL 3190762 at *2 (D.Del. 2012), the court
`
`recognized that “strategically amending or surrendering claim scope during prosecution”
`
`implicates competitive decision-making that can necessitate the denial of lead trial counsel’s
`
`participation in reexamination proceedings. SAP shares these concerns in this situation.
`
`Allowing Mr. Cole to participate in the patent prosecution activities of this proceeding
`
`would severely prejudice SAP because Mr. Cole will have the ability to provide advice on any
`
`amendments to the claims of Versata’s patent. Moreover, allowing Mr. Cole to participate in this
`
`proceeding could effectively circumvent the restrictions of the underlying district court’s
`
`protective order, which precludes litigation counsel’s use of any SAP protected materials beyond
`
`the scope of that litigation.
`
`
`
`

`

`
`III.
`
`Conclusion
`
`Case No. CBM2012-00001
`Attorney Docket No. 09449.0025-00000
`
`Given Mr. Cole’s role in the district court litigation and his potential involvement in the
`
`prosecution activities in this proceeding, SAP asks the Board to deny Versata’s Motion.
`
`
`
`Respectfully submitted,
`
`By: /Erika H. Arner/
`Erika H. Arner, Lead Counsel
`Joseph E. Palys
`Michael Young, Sr.
`FINNEGAN, HENDERSON, FARABOW,
`GARRETT & DUNNER, L.L.P.
`11955 Freedom Drive
`Reston, VA 20190
`
`
`
`Attorneys for Petitioners SAP America, Inc. and
`SAP AG
`
`
`
`
`
`Dated: October 30, 2012
`
`
`
`
`
`

`

`
`
`Case No. CBM2012-00001
`Attorney Docket No. 09449.0025-00000
`
`CERTIFICATE OF SERVICE
`
`The undersigned certifies that the foregoing PETITIONERS’ OPPOSITION TO
`
`PATENT OWNER’S MOTION FOR ADMISSION PRO HAC VICE OF SCOTT L. COLE was
`
`served on October 30, 2012, to Nancy J. Linck and Martin M. Zoltick, Lead and Back-up
`
`Counsel for Versata, respectively, at the service e-mail address of VERSATA-PGR@rfem.com
`
`provided in Versata’s Mandatory Notices. The parties have agreed to electronic service.
`
`
`
`________/Larry White/_________________
`Larry White
`
`FINNEGAN, HENDERSON,
`FARABOW, GARRETT & DUNNER,
`L.L.P.
`
`
`
`
`
`

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