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`Case No. CBM2012-00001
`Attorney Docket No. 09449.0025-00000
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`UNITED STATES PATENT AND TRADEMARK OFFICE
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`__________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`__________________
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`SAP AMERICA INC. AND SAP AG,
`Petitioners,
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`v.
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`VERSATA DEVELOPMENT GROUP INC.,
`Patent Owner.
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`_________________
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`Case CBM2012-00001
`Patent 6,553,350
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`_________________
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`Before the honorable MICHAEL P. TIERNEY, SALLY C. MEDLEY and RAMA G. ELLURU.
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`PETITIONERS’ OPPOSITION TO PATENT OWNER’S MOTION FOR ADMISSION
`PRO HAC VICE OF SCOTT L. COLE
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`Petitioners SAP America Inc. and SAP AG (collectively “SAP”) oppose the request of
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`Patent Owner Versata (“Versata”) to have its lead trial counsel, Scott L. Cole, appear in this
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`proceeding [Paper No. 12] (“Versata’s Motion”). Having Versata’s trial counsel participate in
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`this proceeding would severely prejudice SAP because Mr. Cole has accessed, and has ongoing
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`access to, SAP confidential information in the underlying district court litigation involving the
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`patent-at-issue. Thus, it would be improper to allow Mr. Cole to participate in the prosecution
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`activities of this proceeding, which allows Versata to amend its claims, with the knowledge he
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`has of SAP products accused of infringement. Even though Mr. Cole would undoubtedly
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`conduct himself with the best of intentions, given his exposure to SAP’s confidential
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`information, that bell cannot be “un-rung.” Accordingly, SAP requests that the Board deny
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`Case No. CBM2012-00001
`Attorney Docket No. 09449.0025-00000
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`Versata’s Motion.
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`I.
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`Pro Hac Vice Admission to Appear Before the Board is Discretionary and Subject
`to Any Conditions Set Forth by the Board
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`37 C.F.R. § 42.10(c) allows for pro hac vice representation before the Board upon a
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`showing of “good cause.” The grant of a motion to appear pro hac vice is a “discretionary action
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`taking into account the specifics of the proceeding.” 77 Fed. Reg. 48618 (August 14, 2012).
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`Indeed, admission is subject to “any other conditions as the Board may impose.” Id. The
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`specifics of this proceeding warrant the Board’s consideration of “other conditions” to deny
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`Versata’s motion.
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`II.
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`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
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`In the district court litigation involving the patent-at-issue (“the ’350 patent”), Versata
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`Software, Inc. v. SAP America, Inc., No. 2:07-cv-153 (E.D. Tex), trial counsel for Versata gained
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`access to highly confidential and proprietary information about SAP and its products. Use of this
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`information in that case is governed by a Protective Order. As lead trial counsel, Mr. Cole has
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`had access, and still has access, to SAP’s protected materials. In fact, Versata relies on Mr.
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`Cole’s knowledge of the underlying litigation, which involved alleged infringement of the patent,
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`to support its showing of good cause in its motion. (Versata’s Motion at 3.)
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`Mr. Cole’s participation in both proceedings puts him in the precarious position of being
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`able to affect the scope of the claims of the ’350 patent while knowing how SAP’s products
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`operate beyond that publically known. The statute and Board rules provide Versata the ability to
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`amend the claims of the ’350 patent during this CBM proceeding. 35 U.S.C. § 326(a)(9);
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`37 C.F.R. § 42.221. Indeed, the Patent Office recognizes that “it is expected that amendments to
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`Case No. CBM2012-00001
`Attorney Docket No. 09449.0025-00000
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`a patent will be sought.” 77 Fed. Reg. 48618 (August 14, 2012).
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`District courts have recognized concerns regarding trial counsel’s involvement in Patent
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`Office proceedings that allow the patent owner to amend its claims. For example, in Bear Creek
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`Technologies Inc. v. Verizon Services Corp., 2012 WL 3190762 at *2 (D.Del. 2012), the court
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`recognized that “strategically amending or surrendering claim scope during prosecution”
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`implicates competitive decision-making that can necessitate the denial of lead trial counsel’s
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`participation in reexamination proceedings. SAP shares these concerns in this situation.
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`Allowing Mr. Cole to participate in the patent prosecution activities of this proceeding
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`would severely prejudice SAP because Mr. Cole will have the ability to provide advice on any
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`amendments to the claims of Versata’s patent. Moreover, allowing Mr. Cole to participate in this
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`proceeding could effectively circumvent the restrictions of the underlying district court’s
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`protective order, which precludes litigation counsel’s use of any SAP protected materials beyond
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`the scope of that litigation.
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`III.
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`Conclusion
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`Case No. CBM2012-00001
`Attorney Docket No. 09449.0025-00000
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`Given Mr. Cole’s role in the district court litigation and his potential involvement in the
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`prosecution activities in this proceeding, SAP asks the Board to deny Versata’s Motion.
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`Respectfully submitted,
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`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
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`Attorneys for Petitioners SAP America, Inc. and
`SAP AG
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`Dated: October 30, 2012
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`Case No. CBM2012-00001
`Attorney Docket No. 09449.0025-00000
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`CERTIFICATE OF SERVICE
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`The undersigned certifies that the foregoing PETITIONERS’ OPPOSITION TO
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`PATENT OWNER’S MOTION FOR ADMISSION PRO HAC VICE OF SCOTT L. COLE was
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`served on October 30, 2012, to Nancy J. Linck and Martin M. Zoltick, Lead and Back-up
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`Counsel for Versata, respectively, at the service e-mail address of VERSATA-PGR@rfem.com
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`provided in Versata’s Mandatory Notices. The parties have agreed to electronic service.
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`________/Larry White/_________________
`Larry White
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`FINNEGAN, HENDERSON,
`FARABOW, GARRETT & DUNNER,
`L.L.P.
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