Progressive’s Oral Argument
`
`CBM2012-00003
`CBM2013-00009
`
`U.S. Patent No. 8,140,358
`
`Vehicle Monitoring SystemVehicle Monitoring System
`
`Oral Hearing: October 15, 2013, 1:00 p.m.
`
`PROGRESSIVE
`EXHIBIT
`2012-00003: 2021;
`2013-00009: 2034
`
`PrDX-1
`
`

`
`Claim 1 – Vehicle Data
`
`Claim 1:Claim 1:
`
`1. A system that monitors and facilitates a review of data collected from a vehicle
`that is used to determine a level of safety or cost of insurance comprising:
`
` a processor that collects vehicle data from a vehicle bus that represents aspectsa processor that collects vehicle data from a vehicle bus that represents aspects
`of operating the vehicle;
` a memory that stores selected vehicle data related to a level of safety or an
`insurable risk in operating a vehicle;
` a wireless transmitter configured to transfer the selected vehicle data retained
`within the memory to a distributed network and a server;
` a database operatively linked to the server to store the selected vehicle data
`
`transmitted by the wireless transmitter, the database comprising a storage y , p g g
`
`
`
`
`system remote from the wireless transmitter and the memory comprising records
`with operations for searching the records and other functions;
` where the server is configured to process selected vehicle data that represents
`
`one or more aspects of operating the vehicle with data that reflects how theone or more aspects of operating the vehicle with data that reflects how the
`selected vehicle data affects a premium of an insurance policy, safety or level of
`risk; and
` where the server is further configured to generate a rating factor based on the
`
`t dlselected vehicle data stored in the database.hi l d t t d i th d t b
`
`
`
`
`
`
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`PrDX-2
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`

`
`Claim 1 – Rating Factor
`
`Claim 1:
`1. A system that monitors and facilitates a review of data collected from a vehicle
`that is used to determine a level of safety or cost of insurance comprising:
` a processor that collects vehicle data from a vehicle bus that represents aspects
`of operating the vehicle;
` a memory that stores selected vehicle data related to a level of safety or an
`
`insurable risk in operating a vehicle;p g ;
`
`
` a wireless transmitter configured to transfer the selected vehicle data retained
`within the memory to a distributed network and a server;
` a database operatively linked to the server to store the selected vehicle data
`
`ttransmitted by the wireless transmitter, the database comprising a storage itt d b th i l t itt th d t b i i t
`
`
`
`
`
`
`
`
`
`system remote from the wireless transmitter and the memory comprising records
`with operations for searching the records and other functions;
`
`
` where the server is configured to process selected vehicle data that represents g p p
`
`one or more aspects of operating the vehicle with data that reflects how the
`selected vehicle data affects a premium of an insurance policy, safety or level of
`risk; and
`
` where the server is further configured to generate a rating factor based on the where the server is further configured to generate a rating factor based on the
`selected vehicle data stored in the database.
`
`PrDX-3
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`

`
`‘358 Figure 2 – Server and
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`Rating/Billing Calc lationsRating/Billing Calculations
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`PrDX-4
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`

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`‘358 Figure 3 – Vehicle Data Collection
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`lA d WiAnd Wireless TransmissionT i i
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`PrDX-5
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`

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`‘358 Figure 4 – Wireless Transmission Of
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`l D tt d V hiS lSelected Vehicle Data
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`PrDX-6
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`

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`‘358 Figure 5 –Vehicle Data Storage
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`and Charges Algorithmand Charges Algorithm
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`PrDX-7
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`

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`‘358 Figure 6358 Figure 6
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`PrDX-8
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`

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`‘358 Cols.
`7 and 8
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`PrDX-9
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`

`
`Specification – Rating Factors And Actuarial Classes
` ‘358 specification clearly shows actuarial classes are used
`
` “Each assumption may be subject to verification and Each assumption may be subject to verification and
`
`change. Verification may analyze the collected data,
`correlate the data to actual losses, and relate the data to
`
`actuarial classes.” (15:57-60.)actua a c asses ( 5 5 60 )
`
` “A quote, cost (e.g., an amount due or bill), or adjustment
`
`(e g cost term or some other parameter) may be derived(e.g., cost, term, or some other parameter) may be derived
`at 2916. While the quotes, costs, and adjustments may
`comprise a fixed value, in alternative systems the value
`
`may comprise a fluid range that may vary by user, a user'smay comprise a fluid range that may vary by user, a user s
`behavior, or by an insurance parameter (e.g., an actuarial
`class).” (40:6-11.)
`
`PrDX-10
`
`

`
`Progressive’s Expert – Rating
`
`Factors And Act arial ClassesFactors And Actuarial Classes
` “An actuarial class also has a rate factor inherently
`
`associated with it.” (Ex. 2005, Miller Decl. at ¶19.)associated with it. (Ex. 2005, Miller Decl. at ¶19.)
`
` “A rate factor is a calculated numerical value for the
`
`actuarial class that is used to calculate the premiums for p
`an insured.” (Id.)
`
` “Use of an actuarial class within an insurance context
`necessarily involves generating and using a rating factor.”
`(Id. at ¶39.)
`
` “Use of rate factors and risk factors is necessarily part of
`any insurance charges or premium determination algorithm
`for an auto insurance program using actuarial classes.”
`
`(Id )(Id.)
`
`PrDX-11
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`

`
`
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`Progressi e’s E pert Rating FactorProgressive’s Expert – Rating Factor
`
`(Ex. 2015 at ¶38.)
`
`PrDX-12
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`

`
`Liberty Mutual’s Expert – Rebuttal
`
`TestimonTestimony
`
`O’Neil agrees that “the ‘358 patent itself ties the O Neil agrees that the 358 patent itself ties the
`
`level of safe driving to expected claims losses.”
`
`(Ex. 1032 at ¶28.)( ¶ )
`
`
`
`PrDX-13
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`

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`Miller Testimony Regarding Expected Claims Loss
`
`(Ex. 2005 at ¶28.)
`
`PrDX-14
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`

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`Liberty Mutual’s Expert – Actuarial Classes
`
`(Ex. 2015, p. 44, lines 4-20.)
`
`PrDX-15
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`

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`Liberty Mutual’s Expert – Rating Factors
`
`(Ex. 2015, p. 98, line 25 – p. 99, line 22.)
`
`PrDX-16
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`

`
`
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`Liberty Mutual’s Expert – Rating FactorsLiberty Mutual s Expert – Rating Factors
`
`(Ex. 2015, p. 100, line 25 – p. 101, line 6.)
`
`PrDX-17
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`

`
`Liberty Mutual’s Expert – Rating
`
`FactorsFactors
`
`(continued on the next page)
`
`PrDX-18
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`

`
`
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`Liberty Mutual’s Expert Rating FactorsLiberty Mutual s Expert – Rating Factors
`
`
`
`(continuation from previous page)(continuation from previous page)
`
`(Ex. 2015, p. 101, line 20 – p. 102, line 15.)
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`PrDX-19
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`

`
`Liberty Mutual’s Expert’s Book Chapter On Calculating
`
`Premiums Using Rating FactorsPremiums Using Rating Factors
`
`(Ex. 2014 at 47.)
`
`PrDX-20
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`

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`
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`‘358 Col 3 lines 46 55358 Col. 3, lines 46-55
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`PrDX-21
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`

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`
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`‘358 Col 16 lines 36 42358 Col. 16, lines 36-42
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`PrDX-22
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`

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`
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`Claim Construction – Rating Factorg
`
` “[A] calculated insurance risk value such as a safety
`
`score or a usage discount ” (Institution Decision at 6 )score or a usage discount. (Institution Decision at 6.)
`
` “[A]n insurance risk value would be a value that
`
`reflects an associated level of insurance risk andreflects an associated level of insurance risk and,
`therefore, also a corresponding insurance premium.”
`(Id.)
`
` Progressive’s Expert Miller testified that a POSITA
`would interpret the Board’s reference to “insurance
`
`risk” to mean expected claims losses and anrisk to mean expected claims losses, and an
`“associated level of insurance risk” to describe rating
`factors associated with actuarial classes. (Ex. 2005
`at ¶38.) ¶ )
`
`
`
`PrDX-23
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`

`
`Priority Issues Raised In The
`
`InstitInstitution Decisiontion Decision
`
`
`1. The Wireless Transfer Of Selected Vehicle Data
`Limitation
`
`2. Functions Required To Be Performed At A
`Server
`
`PrDX-24
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`

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`1. The Wireless Transfer Of Selected Vehicle
`Data Limitation – ‘650 Figure 2
`
`WIWIRELESS TRANSMISSION L SS A S ISSIO
`
`
`
`OF RECORDED SELECTED 
`VEHICLE DATA
`
`RECORDED 
`SELECTED VEHICLE 
`DATA
`
`PrDX-25
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`

`
`1. The Wireless Transfer Of Selected Vehicle
`Data Limitation – ‘650 Figure 4
`
`WIRELESS TRANSMISSION 
`OF SELECTED VEHICLE 
`DATA
`
`SELECTED 
`VEHICLE DATA
`
`PrDX-26
`
`

`
`1. The Wireless Transfer Of Selected
`Vehicle Data Limitation – ‘650 Figure 5
`
`VEHICLE
`
`EVENT/SENSOR DATA
`
`INSURER
`
`PrDX-27
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`

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`2. ‘650 Discloses A Server Linked To
`
`A Database Fig re 2A Database – Figure 2
` The insurer 208 in Figure 2 necessarily
`contains one or more servers as it contains
`data processing and translation functionality, a
`
`data storage device and rating billing anddata storage device, and rating, billing, and
`claims functionality 222. (Ex. 2007, Zatkovich
`Decl. at ¶¶ 84, 87, 88.)
`
`PrDX-28
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`

`
`PrDX-29
`
`2. ‘650 Discloses Server Linked To A
`
`Database – Figure 2g
`
`“RATING, 
`BILLING, 
`CLAIMS” ON A 
`COMPUTER
`
`
`
`SERVERSERVER
`
`DATABASE 
`(INTERACTING 
`ITH RATING, 
`BILLING, 
`CLAIMS AS 
`WELL AS WITH 
`WEB SERVER)
`
`(W
`
`

`
`2. ‘650 Discloses Server Linked To A
`
`Database – Figure 5g
`
`DATABASE 
`(INTERACTING 
`WITH RATING, 
`BILLING, 
`
`CLAIMS ASCLAIMS AS 
`WELL AS WITH 
`WEB SERVER)
`
`“CHARGES 
`ALOGRITHM” 
`ACCESSING 
`
`DATABASEDATABASE 
`518  
`(OPERATING 
`ON A SERVER 
`PER FIGURE 2)
`
`PrDX-30
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`

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`2. ‘650 Discloses Server Processing
`
`Selected Vehicle Data Fig re 5Selected Vehicle Data – Figure 5
`
`“WEB SERVER” 
`ACCESSES CHARGES 
`INFORMATION FOR 
`WEB USER AND 
`
`PROVIDES TO USERPROVIDES TO USER 
`AT 554
`
`SELECTEDSELECTED 
`
`VEHICLE DATA
`
`DATABASE
`
`CHARGES 
`ALGORITHM
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`PrDX-31
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`

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`2. ‘650 Discloses Server Processing
`
`Selected Vehicle DataSelected Vehicle Data
`
` “Rating, Billing, and Charges” of Figs. 2 and 5: “The subject invention will
`base insurance charges with regard to current material data
`
`representative of actual operating characteristics to provide arepresentative of actual operating characteristics to provide a
`classification rating of an operator or the unit in an actuarial class which
`has a vastly reduced rating error over conventional insurance cost
`systems.” (‘650 application at 6:15-18.)
`
` “[T]here is disclosed a method of determining a cost of automobile
`insurance based upon monitoring, recording and communicating data
`representative of operator and vehicle driving characteristics, whereby
`the cost is adjustable by relating the driving characteristics to
`
`i dd tpredetermined safety standards. (‘650 application at 6:28-31.) f t t d d (‘650 li ti t 6 28 31 )
`
`
`
`
`
`
`
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` “The data or events which are stored in stored device 518 are accessed
`by a billing algorithm 530 to generate a cost for the unit of risk in
`
`consideration of all the relevant data and events occurring in that period ”consideration of all the relevant data and events occurring in that period.
`(‘650 application at 19:30-20:1.)
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`PrDX-32
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`

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`2. ‘650 Discloses Server Generating A
`
`R tiRating Factor – SpecificationF t S ifi ti
`
`
`
`
` “Rating, Billing, and Charges” of Figs. 2 and 5: “The subject
`invention will base insurance charges with regard to current
`fmaterial data representative of actual operating characteristics
`
`to provide a classification rating of an operator or the unit in an
`actuarial class which has a vastly reduced rating error over
`conventional insurance cost systems.” (Ex. 2004, ‘650 Appl. at
`
`6:15 18 )6:15-18.)
`
` “The method is comprised of steps of monitoring a plurality of raw
`data elements representative of an operating state of a vehicle or
`ian action of the operator. Selected ones of the plurality of raw f h S l d f h l li f
`
`
`
`
`
`
`
`
`data elements are recorded when they are determined to have an
`identified relationship to the safety standards. The recorded
`elements are consolidated for processing against an insured
`
`profile and for identifying a surcharge or discount to beprofile and for identifying a surcharge or discount to be
`applied to a base cost of automobile insurance. The total cost of
`insurance obtained from combining the base cost and surcharges
`or discounts is produced as a final cost to the operator.” (Id. at
`
`7:1-7 )7:1-7.)
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`PrDX-33
`
`

`
`2. ‘650 Discloses Server Generating A
`
`R tiRating Factor – Figure 2F t Fi 2
`
`
`
`
`“RATING” 
`OPERATIONS   
`GENERATE 
`RATING 
`FACTORS FOR 
`USE IN 
`“BILLING” (I.E., 
`CHARGES)
`
`PrDX-34
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`

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`2. ‘650 Discloses Server Generating A
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`R tiRating Factor – Figure 5F t Fi 5
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`
`
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`PrDX-35
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`

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`
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`Nakagawa Figure 1Nakagawa Figure 1
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`PrDX-36
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`

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`Nakagawa Figure 2Nakagawa Figure 2
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`PrDX-37
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`

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`Nakagawa Figure 3Nakagawa Figure 3
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`PrDX-38
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`

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`Nakagawa Figure 4Nakagawa Figure 4
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`PrDX-39
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`

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`Nakagawa Figure 5Nakagawa Figure 5
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`PrDX-40
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`

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`Nakagawa Figure 7Nakagawa Figure 7
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`PrDX-41
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`

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`Nakagawa Figure 10Nakagawa Figure 10
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`PrDX-42
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`

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`Nakagawa Paragraph [0065]Nakagawa Paragraph [0065]
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`PrDX-43
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`

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`Nakagawa Paragraph [0067]Nakagawa Paragraph [0067]
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`PrDX-44
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`

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`Nakagawa Paragraphs [0068-0069]
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`PrDX-45
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`

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`Nakagawa Paragraph [0072]
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`PrDX-46
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`

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`Nakagawa Paragraph [0073]
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`PrDX-47
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`

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`Nakagawa Paragraph [0076]
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`PrDX-48
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`

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`Nakagawa Paragraph [0077]
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`PrDX-49
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`

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`Progressive’s Expert – Nakagawa Lacks Rating
`F tFactors
`
`(Ex. 2015 at ¶44.)
`
`PrDX-50
`
`

`
`Zatkovich Testimony Regarding Nakagawa
`
`(Ex. 2007 at ¶¶ 42-43.)
`
`PrDX-51
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`

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`Andrews Petition Declaration Regarding Nakagawa
`
`(Ex. 1025 at ¶¶35-36.)
`
`PrDX-52
`
`

`
`Nakagawa Stores “Usage Data”Nakagawa Stores Usage Data
`
` In Nakagawa, the vehicle data collected from the
`data bus is processed to determine whether the
`vehicle’s operation is safe or dangerous, and the
`
`degree of safe or dangerous operation isdegree of safe or dangerous operation is
`recorded as points. (Ex. 1005 at ¶ 65; Ex. 2007,
`Zatkovich Decl. at ¶ 40-41.)
` These points values are stored as what
`Nakagawa refers to as “usage data” in the
`
`memory provided in on board control part 12memory provided in on board control part 12.
`(Ex. 1005 at ¶ 65; Ex. 2007, Zatkovich Decl. at ¶
`40.))
`
`PrDX-53
`
`

`
`Nakagawa Stores “Usage Data”
`
`STORED IN 
`POINT FORM
`
`PrDX-54
`
`

`
`•
`
`(1) Nakagawa Does Not Disclose That
`
`“Selected Vehicle Data” Is Retained WithinSelected Vehicle Data Is Retained Within
`Memory
`
`••
`
`“Selected vehicle data” as used in claim 1 refers toSelected vehicle data as used in claim 1 refers to
`certain vehicle data that relates to a level of safety
`or an insurable risk in operating a vehicle.
`
`
`I N kIn Nakagawa, the vehicle data collected from the th hi l d t ll t d f th
`
`
`
`
`
`data bus is processed to determine whether the
`vehicle’s operation is safe or dangerous, and the
`
`ddegree of safe or dangerous operation is recorded f f d ti i d d
`
`
`
`
`
`
`as points. (Ex. 1005 at ¶ 65; Ex. 2007, Zatkovich
`Decl. at ¶ 40-41.)
`These points values are stored as what
`Nakagawa refers to as “usage data” in the memory
`
`provided in on board control part 12. (Ex. 1005 at ¶ p p ( ¶
`
`
`
`65; Ex. 2007, Zatkovich Decl. at ¶ 40.)
`
`•
`
`PrDX-55
`
`

`
`(2) Nakagawa Does Not Disclose That
`“Selected Vehicle Data” Is Transferred To A
`Distributed Network And A Server
` Nakagawa further makes it clear that it is these
`“usage data” points that are read from the
`
`memory in the on board control part 12 and thememory in the on-board control part 12, and the
`on-board radio part 9 sends the points (i.e., the
`
`“usage data”) and an ID to the server apparatus g ) pp
`
`
`6. (Ex. 1005 at ¶ 69; Ex. 2007, Zatkovich Decl. at
`¶ 41.)
`
`PrDX-56
`
`

`
`(3) Nakagawa Does Not Disclose
`
`The Claimed DatabaseThe Claimed Database
` Petitioner has not cited any passage from
`
`Nakaga a that mentions the ord “database”Nakagawa that mentions the word “database”
`explicitly.
`
` Nor is it inherent because there is no disclosure
`of:
`“D t b “Database” which is a “file composed of records, ” hi h i “fil d f d
`
`
`
`
`each containing fields together with a set of
`operations for searching, sorting, recombining and
`
`thother functions,” f ti ”
`
`
`
` “Record” is a “data structure that is a collection of
`fields (elements) each with its own name and type.”
`
`
`
`PrDX-57
`
`

`
`(IV) Disadvantageous Modification Of Kosaka’s System
`
`To Fit Within The RDSS EnvironmentTo Fit Within The RDSS Environment
`
` Liberty’s Petition does not provide proper motivation
`
`tto combine Kosaka with RDSSbi K k ith RDSS
`
`
`
`
` “Operations requiring extensive processing” are
`
`performed at the central server/computer system” to p p y
`
`
`reduce “sophistication and cost of the terminal.” (Petition
`at 27.)
`
` However, Kosaka’s fuzzy logic operations do not
`require “extensive processing”
` Inexpensive microprocessors available in 1996, such as
`the Intel 8086 and the Texas Instruments TMS320C5x
`
`families of processors. (Ehsani Decl. at ¶ 35.) p ( ¶ )
`
`
`
`
`PrDX-58
`
`

`
`
`
`In re Bigio: Test For Analogous Prior ArtIn re Bigio: Test For Analogous Prior Art
`
` “References within the statutory terms of 35 U.S.C. §
`
`102 qualify as prior art for an obviousness102 qualify as prior art for an obviousness
`determination only when analogous to the claimed
`invention.” In re Bigio, 381 F.3d 1320, 1325 (Fed. Cir.
`
`2004)2004).
`
`
`
` “Two separate tests define the scope of analogous p p g
`
`prior art: (1) whether the art is from the same field of
`endeavor, regardless of the problem addressed and,
`
`(2) if the reference is not within the field of the ( )
`inventor’s endeavor, whether the reference still is
`reasonably pertinent to the particular problem with
`which the inventor is involved.” (Id.)( )
`
`
`
`PrDX-59
`
`

`
`GEOSTAR 10-K
` Full quote #1:
`
` The Company believes that the GEOSTAR System
`enables commercial fleet owners to increase asset
`
`utilization, reduce deadhead miles, shorten billingutilization, reduce deadhead miles, shorten billing
`cycles, improve just-in-time deliveries, enhance security,
`lower insurance premiums, reduce communications
`costs, perform real-time operations and maintenance
`
`monitoring scheduling and controlling to achieve moremonitoring, scheduling, and controlling to achieve more
`efficient operations and reduce operating costs. Most of
`the Company’s current customers are long distance
`trucking companies.
`
` Only the emphasized words were quoted by Liberty
`
`PrDX-60
`
`

`
`GEOSTAR 10-KGEOSTAR 10 K
`
` Full quote #2:
`
` The Company believes a market exists in the
`
`insurance, financial and retail industries for GEOSTAR,
`System services because its real-time nationwide
`mobile processing of insurance claims, point-of-sales,
`
`credit verification, and funds transfer transactions willcredit verification, and funds transfer transactions will
`reduce financial and information float decision delays.
`
` Only the emphasized words were quoted by
`Liberty
`
`PrDX-61
`
`

`
`Libert ’s Spin On The 10 K Q otesLiberty’s Spin On The 10-K Quotes
`
` “RDSS was clearly understood to be useful in
`determining insurance premiums.” (Petition at
`26:1-2.)
`
`PrDX-62
`
`

`
`Libert ’s Spin On The 10 K Q otesLiberty’s Spin On The 10-K Quotes
`
` “Thus, RDSS taught a POSITA—long before any
`application arguably associated with the ‘358
`Patent—the benefits of monitoring vehicle
`
`telematics data using an on-board computer thattelematics data using an on board computer that
`retrieves, stores and transmits that data
`wirelessly to a central computer system, where it
`is analyzed for use in determining risk and
`appropriate insurance premiums (as well as, e.g.,
`
`summoning help in an emergency as the datasummoning help in an emergency as the data
`indicates). See also, generally, Ex. 1014,
`Andrews Dec. ¶¶ 27-32.” (Petition at 21:1-6.)
`
`PrDX-63
`
`

`
`RDSS
`
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`fln aimral’: may Irariamll an-an‘ fame rnln-
`ulna. Ivhamasclru interval mayhaaavaral
`El'l'&l.|'I'B' fair 'aEIE1ICkE§FEalIlI:i§fifll|Bi The indi-
`-rlclual user or hla or her home nfllna may
`requusl an updaha. or haw the central
`char-gBt11a rapunlng Irrlanral.
`
`Taking Iaasfhanuna aacundno prec-
`om. a users massaua -perolml. Ina Gan-
`'lra1's cumnulnrs slots Ihs massage and
`1ranBm1't El hrial acknowlodgmarrr In Iha
`user. Onna iha massage Ia sforud. Iha
`Canlmlcan relay ‘:1 toaprsananged dam-
`
`(Ex. 1004 at 18.)
`
`(Ex. 1004 at 18.)
`
`PrDX-64
`
`

`
`RDSS
`
`rnainlaina uaaar lclenllliaafion data bases:
`and lralllc Ioutingina-l:un1lans.Tha Can-
`Ital. conllrluouslgr stallsad by turn to four
`personnel. interacts diraclly wilh and us-
`ara. prwiting a haul of RUSS santioas.
`Individual users maydaal personally with
`thecanlral. or alargnoonsumar seamen!
`(such as the Irucl-zing industny] may have
`ilallaflit: l:u|k—ah'q:Iped ma brulcarfot spa-
`cIauodpmcasaInganaaubsaquanIinnar-
`nal dlstmullun.
`
`OPEFM. TIDN
`OF GENTHE4 L
`
`The RUSS Camral Ivan-smite a. gen-
`aral inlarrugaliun signal. addressed 1.0 all
`u3arIam1inaI5.throughonaaftha same-llina
`relays many limes par as-mind. The clut-
`bouncla-gnaal prmiclaa agralarn W|I2l&tl11'B-
`slrnchronlzaliun for ma namaut. Out-
`bound lrallfit. may includa natwuflumnlral
`Inslrudlnr-5 Lu terminals tlranapa.-‘an! to
`lheuraell or rnassagersand pusitlunc.a|cu-
`I-arlon rasulls ‘lo and users.
`
`Int:-cuund signals trnesaageal from us-
`af Iarnuinala provide ranging dalla cmdal
`Ior locating Dosltions. The signals am de-
`Iacbed. lrarilied. and lclfilnlilied as to Inti-
`vichal user ban'nina|
`ll'In:Iugh Iha use at
`unlqu-a loentlf-::a1|c-n codes. As roquined.
`Ihe Camral can corilnula the user‘: p-as-F
`Ilun. and process andruula maa5.agatraI'—
`Ilc: In an alammnlc mail Ink. 1:) the user's
`home atfilna. ar crlhar d-aslinallawls as
`spa-called.
`
`The Central rnaunlsalns a master sys-
`IEIn1 clack for naiwurlc relemnae. It also
`maintains amamatad lilaaand shclraga fa-
`clllllas Iar all user ldantiricallons. and for
`::r::aa—c:urIe|aliun with pln_,-s|caridanI|llc.a-
`llnns and lmfiic routing imlrucliana.
`
`Currmaly _prac2cs:n-"rag
`mart than are and
`.9 .la£fm.ILlE.I'on
`mcssagfl per rncilrrnla
`
`5a::sIar'snnmm: sagvnantcmsisls o1
`Baumuunicallnms Satellite Oorpnaramn
`Il'l'.‘(.‘.ll'u|5M"l Bureau all-Eulmrn rnudulafion
`and I:la-r11a-|:lulallnn equipment and nut-
`warl: aparalinrsa sum-'ar& unfle: than ban»
`lru all
`a HI3wletf—P‘ar:ltar:I mmnular
`system using a l.|NlIIE—ba5acl nperaling
`sysl1am.Thanor'IlmIl1ul1 allrmtlantralsn-_,_
`aaaavsanddecodes scrim ,3Pe!.’.fi|!I.l:I'fl algé
`natal; taaluulalas pnsiriaa fixes.
`mules,
`lI'e'Il?fi,=‘-,e,IlB,m=,||!lr:l1= ,4h-Ir r,!arl'?I!=-tilt, as
`as,
`,'VEl3,‘3'l35?l! lfil‘ £1-,lB!'3“!l'€>¥ll!¢?!s!l-rt!Fl:2:fi,F!ll:l=ll$'l!l't
`hallm.vToda'9; at £1‘EC3IB'FFnLFi£l=.|I'rtral.—fi
`
`mmpuwa taxableatsupl:u:IA1lag apgiaxlv
`n1aI;aPf5l!I,l.'l0l!l sul:I5ar.ri:Iara ii an line. 1115
`aydmh is modular to allaw lnr grown as
`nelworlt irafilu innraasas. Tha oumpulara
`are conna-Clad in a Inca] ama network,
`-Alharepaclnetroulers dlreot rnes3agelra.l-
`Ilc to elaclmnic mailnuxaa and rea|—Iime
`linles bu mammars.
`
`The <_'.‘.n¢11ra|'s massage tlismbulinrl
`lunctionsanlzls and51-:IIesrrre5sagas.and
`
`(Ex. 1004 at 46.)
`
`(Ex. 1004 at 46.)
`
`PrDX-65
`
`

`
`RDSS
`
`"...(G:3am1r)praI'id:9
`a mud: an-'n1,uIer.urd'
`mmeccsr-efmiw
`menilod for mnufrarfqg
`reurawpfincfinc
` “
`Hipalkna. I1uJnumu| 1lJJ'Bfl
`
`7 Tha tlaaslgn gr:-alris In Hranulamure a-
`V
`|:efr4f3I:lIJfv.:IlI%ri inhfléiiuabi l'ei'ri'nIn'aI1"u-11' uriviai i
`$$.IIIIUI:I. FIIEISS radius have a basin: more
`sp-adfloaliun. wflh apaclfic mudeis lifel-
`lrrg in aiza. vralght. power options. and
`spa-cIaI user Ieaums.Opara1Iurra requir-
`ing aulonsrua prucazaingara perfonnad at
`GEDSTFIFI Danlra|.mdtI::a'ng!he$UPhhti-
`C‘-B:I1|:In and 005! 0‘fIhnIIBI'I|1IIa|.
`-
`
`The number nr mrrrmenzlal IIIFIO-W3!’
`andhm-warrarnahalsinalnilbofialdad
`worh‘.IwidEr in lira na:I.1 serwrral man may
`be:
`‘II in I'I1i|||DI'E. baaad un alucllaa DI
`maI'I0e1|3-uDEu'rIiaJ. Fol a:r.urrpIa,Iha:FrEInr::I1
`an-auaaoancHGNE3J has raoerrw anon-
`semod awan lndapandarl marlwtinq aur-
`me of
`2.I:II:I¢ oompanlaea proiacllng
`RUSS uli||:a1MI'rin1I'r&E|.II'apI|In¢r:II1II'rLI-
`nrtv. The pu1EIrr||aJ market for LUGSTAH
`In Weabem Eurnp-a ia aafilnaiad at he-
`Irmann 1:-!C|.OO-CI and 210.060 users aflar
`one you and 4DI:.DD£I In EEIU-.DOI2I ulom
`EI|'I:ar air: years.
`
`TERMINAL
`GONFIGUHA TIONS
`
`lnaddlrlunrama ha-rrr-lnalseunr-nrryin
`Df0dtfCfI0n.D|a.I1SH'1IUrK:I9rn‘a]rtuprDu'adE
`a Iannlnal
`interim: pa-rI
`rur aprional
`Grobar Pas}-Iiunrng System and Transll
`mdlunmrlgarinn :eeeI-I-ers:|rIIsgra1acI wllh
`ona—wnyHD3S—UriI:.U1flsB&Iq'.puI'I5ysr
`lEIm3 2G and ET. Each uaar Iarrnlnalwil
`have 1 unique :IgILaI |danl||'i:.=.a4II:rn coda
`IJ'Id'lri|IbaaI:|a hoimnsmltacodeddlgltal
`burs! thruusir ha aalalllla In GEDSTAH
`Canhml. The EYBTBITI 2G or ET tanrnlnar
`will I15 Dfirruauaad ulfirafalanirusndnayv
`terns! Imilonirru. Tranamruar. and base-
`hand pra-rmsar. Opararlnnal prtmdaru
`fur‘ S}'5IEIn1 2G or2T1EIrrn|nEIIB wIIIbu1I1&
`aarner as I'II:hEra lbr Syalnm 2
`
`Thu 5-)'\B1EIl'I12CTGI'l'11'l|'|El|'l¢|'i|| Indudaa
`I3—Band radio rocaIuar tucarnplarnenr II:
`L-Hflfl trans-nlrrnr, pruvid'rr'.g I hmdway
`masaaglng capdailny Mlh Cenirul and
`IJIan1u1hn users hams oiflca. Elulta-ca-und
`rnassagtnatfi-|‘rsoI'-I.p1o IIIEI cnaramrs
`may he raad by than use! upon raraipd on
`his Iarminal Icaybnarfi I:I|spIa]v.
`
`Hughes Ten'm'naIs
`
`HLIuhes RUSS Syslam 2 [v:una—w8.:-‘ll
`Iermlnalsarecurrerulylnmalladnnd oper-
`a1Ing an Irm-ma and rallroadtralns acrosa
`Iha Llnrberdslntaa. T'I1a|ri-i1IaJ Muda|E1D1
`was plurtrryadil Er Ilrriacl quanlflyufctfly
`SIZIEI mile. whlle 1I1a|r
`lmpruved Modal
`EH12 began rosflng In Dacarnbar IQEIEI
`1MII'IpIanna produon ar lanai CLBEICI ur1|L5
`In 1555. The ma! wlll an apprmrlmarary
`53.10:: per II:-rmlnal Indmfiry anronna.
`plus $350 for ‘I119 npliunal Iiaybclard dis~
`aler-
`
`'l'I'ra-Hughea NelwIrJrIt33ra1am5I|.|udE~I
`21:12 Mobiicu Saba!-‘Ia Twmlnal (MST: Isa
`oclmpam unlt do-algnad fur FIDSS Sys-
`IEm2 oparufiun fmnr
`Iruflns.
`tralrré.
`buses. aircraft. ahlpa, and Ihcad aila ra-
`rnoIe|o-:aIIons.11reIr.|IIyequIpp0d I.I3T|s
`compound :II a I.|r:Ir:Is1 EIEIE Iransmitlsr.
`nrifllirllagrfibed arlanna and amrnpaniun
`Mohlro Dra.1aTerrn|nn| IMDT} Moder! 2901
`Iwyboard and IJISPIIII |.Ir1|l.
`
`Pr1n:$Ja|feELTuI'EIBOIIheM5T|nduda:
`Iranafldltal cl data ounlalnlnn poslljm.
`ramola sensor
`s1aJI.Is.. massagns, or
`aI11argar1cgr I'nlnn11a1jun:1'tly a.:r1I:IrIr.a1Iu‘.'._
`‘ha.nd5—o:I’f‘ uparafiaui; aduancadhe-c:I1nn|-
`agy Inhegratad LOFMN-G receiver Inr
`pasllion s:fa1errru'naI'ron accuracy wfihln an
`Iracflon are rnIIa;IuIIconIinunIaJ US. cov-
`erage wflh no I'rl'I:|—<::InIiIInrn gap; 3 run-
`garizad anoiuswe to parrnn up-oraliun
`under axrrameanvi-mrnantal ur.'mdI1|on5:
`
`(Ex. 1004 at 52.)
`
`(Ex. 1004 at 52.)
`
`PrDX-66
`
`

`
`
`
`Kosaka Figure 1Kosaka – Figure 1
`
`PrDX-67
`
`

`
`
`
`Kosaka Figure 5Kosaka – Figure 5
`
`PrDX-68
`
`

`
`
`
`Kosaka Figure 9Kosaka – Figure 9
`
`PrDX-69
`
`

`
`Kosaka – Figure 10
`
`PrDX-70
`
`

`
`Kosaka – Figure 11
`
`PrDX-71
`
`

`
`Miller Testimony – No Rating Factor
`
`in Kosakain Kosaka
`
`
`
`(E 2013 at ¶41 )(Ex. 2013 at ¶41.)
`
`PrDX-72
`
`

`
`Miller Testimony – No Rating Factor
`
`in Kosakain Kosaka
`
`(Ex. 2013 at ¶42.)
`
`PrDX-73
`
`

`
`Miller Testimony – No Rating Factor
`
`in Kosakain Kosaka
`
`(Ex. 2013 at ¶43.) PrDX-74
`
`

`
`Liberty’s Witness O’Neil Cannot
`
`Opine on KosakaOpine on Kosaka
` Liberty’s insurance expert did not understand nor properly read
`
`the portions of Kosaka describing its generation of “riskthe portions of Kosaka describing its generation of risk
`evaluation values” (Ex. 2028, p. 80, line 18 – p. 81, line 16):
`
`
`
`(continued on the next page)( p g )
`
`
`
`PrDX-75
`
`

`
`Liberty’s Witness O’Neil Cannot Opine on Kosaka
`
`(continued)(continued)
`
`(Continued from previous page)
`
`PrDX-76
`
`

`
`
`
`Kosaka’s Figure 9Kosaka s Figure 9
`
`Three Fuzzy 
`Logic Units –
`each generating 
`
`li krisk evaluation i
`
`
`values that are 
`fuzzy (and 
`incompatible 
`tithwith actuarial i l
`
`
`
`
`classes and 
`rating factors)
`
`PrDX-77
`
`

`
`Kosaka’s Figure 10
`
`• Figure 10(E) provides the Output of FLU‐3 are 
`Fuzzy Values.  
`• Kosaka does not disclose any “defuzzification” 
`
`operation on FLU‐3’s Output Fuzzy Valuesoperation on FLU 3 s Output Fuzzy Values .  
`•(Note: Liberty’s own reference states 
`defuzzification is “optional.”)
`
`PrDX-78
`
`

`
`Kosaka’s Specification – Risk
`
`E al ation Val es Are FEvaluation Values Are Fuzzy
`
` “The output of p
`the first fuzzy
`logic part 62 and
`
`the secondthe second
`fuzzy logic part
`64 are
`conducted to a
`third fuzzy logic
`
`part 65 as fuzzy p y
`
`input values.”
`(Kosaka at p. 8,
`
`col 2 lines 12-col. 2, lines 12-
`15)
`
`PrDX-79
`
`

`
`Kosaka’s Specification – FLU-1’s Risk
`
`Evaluation Values Are Fuzzy (continued)Evaluation Values Are Fuzzy (continued)
`
` Figure “[10](B)
`
`hshows the output th t t
`
`
`
`function of the first
`fuzzy logic part 62
`
`and the first inputand the first input
`function of the third
`fuzzy logic part 65.
`
`By using theseBy using these
`[membership]
`functions, risk
`evaluation values
`bt i d fare obtained for
`
`the frontward
`moving body.”
`
`(Kosaka at p 8(Kosaka at p. 8,
`col. 2, lines 24-28)
`
`PrDX-80
`
`

`
`Kosaka’s Specification – FLU-2’s Risk
`
`Evaluation Values Are Fuzzy (continued)Evaluation Values Are Fuzzy (continued)
`
` Figure “[10](D)
`shows the output
`function of the
`second fuzzy logic
`d tht 64part 64 and the
`
`
`second input function
`of the third fuzzy
`
`logic part 65 Withlogic part 65. With
`these [membership]
`functions, risk
`
`evaluation valuesevaluation values
`are obtained for the
`‘self’ internal state.”
`(Kosaka at p. 8, col.
`2, lines 30-34)
`
`PrDX-81
`
`

`
`Kosaka’s Specification – FLU-3’s Overall Risk
`
`Evaluation Values Are Fuzzy (continued)Evaluation Values Are Fuzzy (continued)
`
`
`
`
` Figure “[10](E) g [ ]( )
`
`shows the output
`function of the third
`
`fuzzy logic part 65fuzzy logic part 65.
`With this
`[membership]
`ffunction, risk
`evaluation values
`are obtained for
`the final overall
`determination.”
`
`(Kosaka at p 8(Kosaka at p. 8,
`col. 2, lines 35-37)
`
`PrDX-82
`
`

`
`Ehsani Testimony – Combining
`
`Kosaka And RDSSKosaka And RDSS
`
`(Ex. 2015 at ¶39.)
`
`PrDX-83
`
`

`
`Ehsani Testimony – Combining Kosaka And RDSS
`
`(Ex. 2015 at ¶40.) PrDX-84
`
`

`
`Ehsani Testimony – Combining Kosaka And RDSS
`
`(Continued on the next page)
`
`(Ex. 2015 at ¶41.)
`
`PrDX-85
`
`

`
`Ehsani Testimony – Combining Kosaka And
`RDSSRDSS
`
`(Continued from previous page)
`
`(Ex. 2015 at ¶41.)
`
`PrDX-86
`
`

`
`Ehsani Testimony – Combining Kosaka
`
`A d RDSSAnd RDSS
`
`(Ex. 2015 at ¶42.) PrDX-87
`
`

`
`Ehsani Testimony – Combining Kosaka And
`RDSSRDSS
`
`(Ex. 2015 at ¶43.)
`PrDX-88
`
`

`
`Ehsani Testimony – Combining
`
`Kosaka And RDSSKosaka And RDSS
`
`(Ex. 2015 at ¶44.) PrDX-89
`
`

`
`Ehsani Testimony – Combining
`
`Kosaka And RDSSKosaka And RDSS
`
`(Ex. 2015 at ¶45.) PrDX-90
`
`

`
`Ehsani Testimony – Combining
`
`Kosaka And RDSSKosaka And RDSS
`
`
`
`(Continued on the next page)(Continued on the next page)
`
`(Ex. 2015 at ¶46.)
`
`PrDX-91
`
`

`
`Ehsani Testimony – Combining
`
`Kosaka And RDSSKosaka And RDSS
`
`(Continued from previous page)
`
`(Ex. 2015 at ¶46.) PrDX-92
`
`

`
`Ehsani Testimony – Combining
`
`Kosaka And RDSSKosaka And RDSS
`
`…
`(Continued on the next page)
`
`(Ex. 2015 at ¶47.) PrDX-93
`
`

`
`Ehsani Testimony – Combining Kosaka And
`RDSS
`
`(Continued from previous page)
`…
`
`(Continued on the next page)
`
`(Ex. 2015 at ¶47.)
`
`PrDX-94
`
`

`
`Ehsani Testimony – Combining
`
`Kosaka And RDSSKosaka And RDSS
`
`
`
`
`
`
`
`d f(C ti(Continued from previous page)i )
`
`
`
`(Ex. 2015 at ¶47.) PrDX-95
`
`

`
`Zatkovich Testimony – RDSS and GEOSTAR
`
`(Ex. 2020 at ¶14.) PrDX-96
`
`

`
`Zatkovich Testimony – Kosaka
`
`(Ex. 2020 at ¶21.) PrDX-97
`
`

`
`
`
`Zatkovich Testimony – KosakaZatkovich Testimony Kosaka
`
`(Ex. 2020 at ¶22.) PrDX-98
`
`

`
`Zatkovich Testimony – Kosaka
`
`(Ex. 2020 at ¶23.)
`PrDX-99