`571-272-7822
`
`Paper 62
`Entered: September 19, 2013
`
`
`
`
`
`
`RECORD OF ORAL HEARING
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`
`
`
`
`CRS ADVANCED TECHNOLOGIES, INC.
`Petitioner
`
`v.
`
`FRONTLINE TECHNOLOGIES, INC.
`Patent Owner
`
`
`Case CMB2012-00005
`Patent 6,675,151C1
`
`
`Oral Hearing Held: August 13, 2013
`
`
`
`Before SALLY C. MEDLEY, THOMAS L. GIANNETTI, and
`JENNIFER S. BISK, Administrative Patent Judges.
`
`APPEARANCES:
`
`ON BEHALF OF THE PATENT OWNER:
`
`JOHN P. DONOHUE, JR., ESQUIRE
`Woodcock Washburn, L.L.P.
`Cira Centre, 12th Floor
`2929 Arch Street
`Philadelphia, Pennsylvania 19104-2891
`
`
`
`
`
`
`
`
`
`
`
`
`
`Trials@uspto.gov
`571-272-7822
`
`
`
`
`Paper 62
`Entered: September 19, 2013
`
`
`
`ON BEHALF OF THE PETITIONER:
`
`E. ROBERT YOCHES, ESQUIRE
`Finnegan, Henderson, Farabow,
`Garrett & Dunner, L.L.P.
`901 New York Avenue, N.W.
`Washington, D.C. 20001-4413
`
`
`
`
`
`
`
`
`
`
`The above-entitled matter came on for hearing on Tuesday,
`August 13, 2013, at 10:00 a.m., at the United States Patent and Trademark
`Office, 600 Dulany Street, Alexandria, Virginia.
`
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`P R O C E E D I N G S
`
`- - - - -
`
`JUDGE MEDLEY: Please be seated. Good morning.
`
`Are we on the record?
`
`COURT REPORTER: Yes, ma'am.
`
`JUDGE MEDLEY: Okay, thank you.
`
`This is the trial hearing for CBM2012-00005 between Petitioner CRS
`
`
`
`
`
`
`
`
`
`
`
`Advanced Technologies, Incorporated, and the Owner of U.S. Patent
`
`6,675,151, Frontline Placement Technologies. As you know per our order,
`
`10
`
`each party has one hour to present their argument. Petitioner will proceed
`
`11
`
`first, followed by Patent Owner, and each party may reserve rebuttal time,
`
`12
`
`and just let us know if you'd like to do that before we begin.
`
`13
`
`
`
`At this time, we'd like counsel to introduce yourselves and who you
`
`14
`
`have with you, beginning with Petitioner, please.
`
`15
`
`
`
`MR. KARL: Yes, Darrel Karl for Petitioner, CRS, and I have with
`
`16
`
`me my legal assistant, Jacob Mersing.
`
`17
`
`
`
`JUDGE MEDLEY: Okay, so do you have with you Mr. Yoches or
`
`18
`
`Mr. Capron?
`
`19
`
`
`
`MR. KARL: No, I don't. Mr. Yoches is at trial and Mr. Capron is in
`
`20
`
`California.
`
`21
`
`
`
`JUDGE MEDLEY: Okay. And is your legal assistant a registered
`
`22
`
`practitioner?
`
`MR. KARL: No.
`
`JUDGE MEDLEY: So you're admitted pro hoc?
`
`MR. KARL: Vice, yes.
`
` 3
`
`
`
`
`
`
`
`
`
`
`
`23
`
`24
`
`25
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`
`
`JUDGE MEDLEY: Yes. We told you that if you were ever going to
`
`present or be in front of us you need to have a registered practitioner with
`
`you at all times. That was made per order.
`
`
`
`MR. KARL: Well, there's no one currently here. I could arrange to
`
`have someone come from the office, but that would require a delay.
`
`
`
`
`
`JUDGE MEDLEY: Okay. Let's proceed, and then we will break.
`
`MR. DONOHUE: John Donohue, Your Honor, for Patent Owner, and
`
`with me is John McGlynn. Also from our office, Sarah Dukmen is with us
`
`today, and I believe that we've also identified previously Mr. Scott Tewes
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`who is the outside counsel for Frontline. We also have with us from
`
`11
`
`Frontline itself Mr. Thompson and Mr. Blackstone who also happen to be
`
`12
`
`the Inventors of the Patent at issue here.
`
`13
`
`
`
`JUDGE MEDLEY: Okay. So do you have issue with Mr. Karl
`
`14
`
`proceeding today without a registered practitioner?
`
`15
`
`16
`
`
`
`
`
`MR. DONOHUE: No, Your Honor, we don't.
`
`JUDGE MEDLEY: Okay. So we would like to confer on that, so
`
`17
`
`we're going to leave and we'll come right back.
`
`18
`
`19
`
`20
`
`
`
`
`
`
`
`(Off the record at 10:02 a.m.)
`
`(On the record at 10:08 a.m.)
`
`JUDGE MEDLEY: -- We conferred and discussed whether or not
`
`21
`
`Mr. Karl may proceed , without a registered practitioner here with them, and
`
`22
`
`the answer's going to be yes. But we do want to clarify for the record -- for
`
`23
`
`today, this is acceptable. We want to clarify for the record, however, that –
`
`24
`
`we expected lead or backup registered practitioners to be here, but we
`
`25
`
`understand the lead could not be here today but we were expecting that
`
` 4
`
`
`
`
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`back-up counsel would be here. And we also expect that a registered
`
`practitioner would be present with a person who is admitted pro hoc vice.
`
`So we will go ahead and begin. Petitioner, you may begin first.
`
`
`
`MR. KARL: Thank you, Your Honor. We have bound copies of the
`
`demonstratives. We also have slides to hand up to the Court.
`
`
`
`
`
`
`
`JUDGE MEDLEY: Yes, you may approach the bench.
`
`And would you like to reserve rebuttal time?
`
`MR. KARL: Yes, please, 20 minutes, although I'm hoping not to take
`
`as much as that on my opening.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`
`
`
`
`JUDGE MEDLEY: Okay. Thank you. Please proceed.
`
`MR. KARL: May it please the Board, at issue in today's proceeding is
`
`12
`
`the patentability under Section 101, the five claims of Frontline's Patent
`
`13
`
`6,675,151. And I'd like to start by referring to one of the two dependent
`
`14
`
`claims, method claim, Claim 3, which is on page 6 of the demonstratives.
`
`15
`
`That's CX 1022, Slide 6.
`
`16
`
`
`
`JUDGE BISK: Excuse me. I think it's six claims, is that right? Five
`
`17
`
`claims or --
`
`18
`
`19
`
`
`
`
`
`MR. KARL: So it's six claims, you are, correct, Your Honor.
`
`On the left-hand side, Claim 3 has been produced in full. Did I say
`
`20
`
`right side or left side? To the left-hand side, the claim's produced in full.
`
`21
`
`On the right-hand side are summaries of the four basic steps that the claims
`
`22
`
`recite in a high-level form. Obviously, there's more detail that's set forth in
`
`23
`
`the claim; it's there on the page. But the four basic steps are receiving
`
`24
`
`absentee information, generating and posting vacancy information, receiving
`
` 5
`
`
`
`
`
`25
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`acceptance of the position from the substitute, and securing the position for
`
`the substitute.
`
`
`
`Now, when you look at the detailed steps in the claim, the only
`
`aspects that are concrete as opposed to the general abstract idea of substitute
`
`fulfillment are the recitation of at least one communication link in the first
`
`step; the reference to one or more computers in the second and fourth steps;
`
`the reference to a Web site in the second and third steps; and the reference to
`
`an Internet communication link in the third and fourth steps.
`
`
`
`Before going further, it's probably useful to discuss what the claimed
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`Invention does not cover, does not involve. It is not a technical solution to a
`
`11
`
`technical computer problem in the Internet field. That's important because
`
`12
`
`the cases seem to make a distinction between technical solutions and mere
`
`13
`
`presence of -- maintenance -- definitely involve the recitation for computer
`
`14
`
`or software.
`
`15
`
`
`
`The Board decision instituting this proceeding found that the claim
`
`16
`
`did not describe a technological invention at page 9 of its decision. No
`
`17
`
`computer, no communication link, no Web site innovation was either cited
`
`18
`
`or disclosed in the Patent before you; that it is simply a method of doing
`
`19
`
`business. The computers, the Internet communication links, the Web sites
`
`20
`
`that were recited in the claim, they are not integral to the process; they
`
`21
`
`merely facilitate information gathering and distribution.
`
`22
`
`
`
`Moreover, they facilitate the gathering and distribution of information
`
`23
`
`in routine and conventional ways. Computers have traditionally been used
`
`24
`
`as a means of generating and translating data, and the computers involved in
`
`25
`
`this claim do precisely that in a conventional, routine sort of way. They may
`
` 6
`
`
`
`
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`well make the process more efficient, and indeed that's an objective that's set
`
`forth in the Patent specification at Column 4, Line 47. And the Board
`
`indicated that they found that that was an object to make the claims more
`
`efficient. But they do not provide meaningful limitations on this abstract
`
`idea.
`
`
`
`We're not dealing with technical ideas like data compression or linear
`
`programming or digital super manipulation. We are simply dealing with the
`
`receipt, transfer -- storage of information done in a conventional way, using
`
`conventional equipment.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`
`
`What I have done here is draft this claim so that it's limited to a
`
`11
`
`particular field of use, in this case the field of use being substitute fulfillment
`
`12
`
`via the Internet. But cases such as Bilski make clear that limiting the
`
`13
`
`Invention to a particular field of use does not make an abstract concept
`
`14
`
`patentable. Subsequent processes that have no substantial practical
`
`15
`
`application except for an individual computer have likewise been held
`
`16
`
`unpatentable in Benson, Bancorp, CyberSource, and other similar cases.
`
`17
`
`
`
`Data gathering steps over the Internet did not confer patentability in
`
`18
`
`the CyberSource federal circuit case. Computer-aided transmission did not
`
`19
`
`confer patentability in the Dealertrack case. Ultimately, the focus for this
`
`20
`
`panel should be the analysis set forth in Bilski. Is there a specific way of
`
`21
`
`doing something with a computer or a specific computer for doing
`
`22
`
`something? Neither is present in these claims.
`
`23
`
`
`
`JUDGE GIANNETTI: Counsel, you mentioned the Bilski decision
`
`24
`
`and you mentioned Parker against Flook. How about Diamond against
`
`25
`
`Diehr? That's a case where claims were limited to a particular field of
`
` 7
`
`
`
`
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`endeavor. It was rubber molding, as I recall. How would you distinguish
`
`that case from this situation?
`
`
`
`MR. KARL: I wouldn't say so much linking to it a particular
`
`endeavor as that was the problem that they were solving that was unique to
`
`that particular industry, and that's a different scenario altogether. That's
`
`again akin to saying SiRF or Research Corp. or Ultramercial, where the
`
`invention itself creates a unique problem that the patent's trying to solve.
`
`Substitute fulfillment existed before the age of the Internet.
`
`
`
`JUDGE GIANNETTI: Well, in Diamond against Diehr, rubber
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`molding existed before that case, before the invention and that case was
`
`11
`
`made. And that was a situation where a general application was applied to a
`
`12
`
`specific field of endeavor. How does that differ from what goes on here?
`
`13
`
`
`
`MR. KARL: In that case, it is not an attempt to draft a patent claim to
`
`14
`
`cover an algorithm. That happens to be a patent claim to use an algorithm in
`
`15
`
`a particular process, and that's a category of -- subject matter which has
`
`16
`
`traditionally been considered patentable under Section 101. That's not the
`
`17
`
`scenario in Claim 3.
`
`18
`
`
`
`JUDGE GIANNETTI: Well, would you say that in order to be
`
`19
`
`patentable it has to be limited to a particular field of use? Is that a criteria
`
`20
`
`that you would find?
`
`21
`
`
`
`MR. KARL: No, but what I'm saying is that they have certain
`
`22
`
`inventions that in fact arise out of a particular unique problem in a field.
`
`23
`
`That's the Ultramercial case. There was a system for compensating
`
`24
`
`copyright owners for digital downloads of media, like music and movies,
`
`25
`
`and using advertising to pay for the downloading as opposed to the person
`
` 8
`
`
`
`
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`downloading music doing the actual payment for the downloading. Digital
`
`downloading didn't really exist in a practical way prior to the rise of the
`
`Internet. So there is no way to divorce the invention from the context of
`
`Internet downloads.
`
`
`
`And in that case there, they provided a complex, technical solution to
`
`a unique problem to that field. There's nothing unique about substitute
`
`fulfillment. The application happens to be limited to the Internet as a means
`
`of -- the problem is universal, it's not confined to the Internet.
`
`
`
`
`
`JUDGE GIANNETTI: Okay. You can continue.
`
`MR. KARL: In the background summary section of the Patent
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`specification, Frontline admitted that substitute fulfillment is a routine
`
`12
`
`practice in its education system. They likewise acknowledged that computer
`
`13
`
`systems for supporting substitute fulfillment were known in the education
`
`14
`
`field. And indeed my client, CRS, is a pioneer in the -- the first to
`
`15
`
`commercialize and develop the telephone IVR system for performing
`
`16
`
`substitute fulfillment. That system involved computers and data bases and
`
`17
`
`communication links to achieve substitute fulfillment.
`
`18
`
`
`
`What's interesting -- I'm not trying to argue that somehow that bears
`
`19
`
`on -- it's a separate analyses. But it used those computers, those data bases,
`
`20
`
`those communication links in a routine, conventional way, the same routine,
`
`21
`
`conventional way that the Claim 3 process at issue happens to be using
`
`22
`
`computers and communication links as a means of receiving, gathering,
`
`23
`
`transmitting data. There's nothing particularly unusual about the methods
`
`24
`
`involved there. That's what computers are made mainly used for, to -- the
`
`25
`
`process for getting information from point A to point B.
`
` 9
`
`
`
`
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`
`
`The specification only discloses generic communication and
`
`processing servers, generic organization school district computers, generic
`
`home-based computers to the workers and substitutes.
`
`
`
`JUDGE MEDLEY: Excuse me. Mr. Karl, can you make sure and
`
`refer to the slide that you're on for the record so that when we go back to the
`
`transcript we can -- just reference what slide you're on.
`
`
`
`
`
`
`
`MR. KARL: I'm currently referring to Slide 3.
`
`JUDGE MEDLEY: Thank you.
`
`MR. KARL: Likewise, the specification only discloses generic
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`concepts of Web sites, communication link, Internet communication link,
`
`11
`
`and no specification or description of those elements was provided in this
`
`12
`
`patent specification.
`
`13
`
`
`
`JUDGE BISK: Now, can I ask you a question? Can we go back to
`
`14
`
`your discussion of Ultramercial, you're not able to divorce the invention
`
`15
`
`from a technology, but here you are. It seems like that just depends on the
`
`16
`
`way you describe the problem that you're solving, because if you describe
`
`17
`
`the problem you're solving as substitute fulfillment over the Internet, then
`
`18
`
`you can't divorce that from the technology. But substitute fulfillment you
`
`19
`
`can. On the other hand, in Ultramercial if you describe it as, you know,
`
`20
`
`having the provider pay for the advertising, then you can divorce the
`
`21
`
`problem from the technology. But if you describe it as the provider paying
`
`22
`
`for its downloaded technology, then you can't. Is there a trick or am I
`
`23
`
`missing something?
`
`24
`
`
`
`MR. KARL: No, I think you're right, that one could, in the abstract,
`
`25
`
`play around, so that the question is favorable to one side versus the other.
`
`
`
`10
`
`
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`But ultimately, if you don't have a technological innovation being provided,
`
`and that's not being provided by these claims, it's simply a method of doing
`
`business, then the arena, being in this case here, the Internet, is not
`
`particularly distinctive, imparting -- details to the claims to avoid -- to
`
`preserve patentablity under Section 101.
`
`
`
`In the Ultramercial case, the problem was unique to downloading. It
`
`didn't exist outside of that context. Substitute fulfillment does exist outside
`
`of the context, and you're not providing a solution to a complex or unusual
`
`problem that exists. When you focus on the field of use being Internet
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`substitute fulfillment, there's no other way to otherwise make rational sense
`
`11
`
`of Supreme Court cases like Bilski and Flook, which say that you can't
`
`12
`
`preserve patentability by drawing upon nailing it to a particular field of use
`
`13
`
`if the -- how you define it in advance. That basically re-writes that language
`
`14
`
`out of those cases. So you have to focus on is there a specific indicator that's
`
`15
`
`being claimed -- that's not here -- or a specific way that's being solved using
`
`16
`
`the computer that creates some sort of technical innovation. That's not the
`
`17
`
`situation that's going on here.
`
`18
`
`
`
`What you have simply is a recitation of computers and software and
`
`19
`
`data storage and data transmission, and that's all we have here. They're
`
`20
`
`using computers in the routine, conventional ways that computers are used
`
`21
`
`for, to speed up and to transmit data.
`
`22
`
`
`
`JUDGE BISK: So what struck me about Ultramercial is that it relies
`
`23
`
`on Alappat while some of the other cases that came before it, didn't seem to
`
`24
`
`rely on Alappat. And I'm wondering, is Alappat still good law?
`
`
`
`11
`
`
`
`25
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`
`
`MR. KARL: Well, I have two responses. One of course is to the
`
`extent that you somehow view -- and I don't view Ultramercial myself as
`
`changing the law, but for any reason if you feel that somehow it is changing
`
`the law, it is clear that the panel cannot (a) overrule the Supreme Court
`
`cases, but (b) is bound by not overruling your prior panel decision in the
`
`federal circuit, and the federal circuit has said that on numerous occasions.
`
`For example, in the Abbott Labs, there's the Sandoz case, 544 F. 3rd, 1341 at
`
`pages 1370 to 1371.
`
`
`
`In the case of a conflict, it's the earlier case, not the later case, that
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`controls. So if you do feel it somehow it's changing explaining the law, it's
`
`11
`
`not a valid case. But ultimately, as I said, it is consistent with federal circuit
`
`12
`
`court cases. It simply falls in the line of cases like Research Corp and like
`
`13
`
`SiRF, where there was a technological innovation involving computers or
`
`14
`
`their technology or the Internet or there was a unique problem in that field
`
`15
`
`that it was designed to solve. It didn't exist outside of that area. Again,
`
`16
`
`that's not the scenario here.
`
`17
`
`
`
`Now, I described Ultramercial in a very high-level format as to how -
`
`18
`
`- what problem it was trying to solve. If the claim was that broad, I'm not
`
`19
`
`sure that would've survived muster. The actual claim is much more detailed,
`
`20
`
`sets forth a lot of detailed steps. It has various restrictions on who can
`
`21
`
`access it, who can download, regional restrictions on copyright, steps to
`
`22
`
`prevent the copyright owner from accessing the advertising and somehow
`
`23
`
`artificially inflating the number of downloads to promote his product. There
`
`24
`
`are a lot of restrictions placed in these claims. It's not just merely using
`
`
`
`12
`
`
`
`25
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`advertising over the Internet to pay for downloading. Reduced to its
`
`essence, that's what's going on, but that's not the claim.
`
`
`
`JUDGE BISK: But I'm curious because it seems like a lot of
`
`interaction. At least the last part was about whether something was a
`
`specially programmed computer. But it seems to me almost a question of
`
`whether Alappat -- are they following it or not, because, you know, if --
`
`federal circuit case, but then it does -- go away and then maybe it came back,
`
`I'm quite sure. It just doesn't seem like the federal circuit was relying on it
`
`for a long time and then it pops up in Ultramercial. So I was just
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`wondering, you know, if it's the law, how do we view CyberSource and all
`
`11
`
`those other cases?
`
`12
`
`
`
`MR. KARL: I believe in Bancorp, the federal circuit did discuss
`
`13
`
`Alappat and they did make the distinction that I made, saying that there are
`
`14
`
`cases on one side that involve technological innovations that are unique to
`
`15
`
`the computer Internet field and there are other cases that are purely business
`
`16
`
`method patent claims which only -- recitation of computer technology, and
`
`17
`
`that's the scenario that we fall into today.
`
`18
`
`
`
`Certainly, it could have been possible for them to write a detailed
`
`19
`
`claim which would've provided sufficient detail so that it would've been
`
`20
`
`limited to a particular programming method, to a particular data structure.
`
`21
`
`That was not done in this case.
`
`22
`
`23
`
`
`
`
`
`JUDGE BISK: And that's what's required to make it a --
`
`MR. KARL: To make this particular claim, yes. That part may
`
`24
`
`require a different answer, but for this -- yes.
`
`
`
`13
`
`
`
`25
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`
`
`Turning now to the expert that Judge Bisk had referenced, on Slide 4
`
`of the demonstrative, Frontline put in an affidavit from an expert saying that
`
`the claimed Invention had used a specially programmed computer. When
`
`CRS deposed the expert, he admitted that what he meant by specially
`
`programmed was that it had been specifically or deliberately or consciously
`
`programmed as opposed to inadvertently or unintentionally or spontaneously
`
`programmed.
`
`
`
`He admitted that he did not require a particular programming
`
`approach and was not limited to any particular type of computers. In fact --
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`at this point in time that the expert admitted that he had not read the Board's
`
`11
`
`decision instituting the proceeding, the claim instruction that the Board had
`
`12
`
`issued, nor was he -- felt he was qualified or did -- the claim. So I'm not
`
`13
`
`sure his technical testimony in this circumstance is particularly relevant.
`
`14
`
`
`
`JUDGE GIANNETTI: Counsel, is claim construction an issue here in
`
`15
`
`this proceeding?
`
`16
`
`
`
`MR. KARL: I believe it's a nonissue. There are some minor disputes
`
`17
`
`between the parties on the claim construction. We had put in the claim
`
`18
`
`construction and Frontline had put in claim construction. The Panel adopted
`
`19
`
`the majority of CRS's claim construction, but in two regards broadened the
`
`20
`
`construction further from beyond what CRS had advocated. We're not
`
`21
`
`challenging the Board's claim construction decision. Frontline appears to
`
`22
`
`nevertheless challenge -- still challenge the abandoned claim constructions
`
`23
`
`by CRS and arguably issues that are consistent with the Board's decision, but
`
`24
`
`I believe that regardless of what claim construction the Board adopts the
`
`
`
`14
`
`
`
`25
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`answer is the same on these claims. So we're really fighting -- wasting time
`
`fighting over --
`
`
`
`JUDGE GIANNETTI: So why is it so important from your
`
`standpoint that the other side's expert have read the claim constructions if
`
`you say that it's really not an issue?
`
`
`
`MR. KARL: Well, he wasn't advocating either side's construction.
`
`He wasn't conscious of any construction of the claim. I don't think you can
`
`have a meaningful discussion about what these claims cover unless you have
`
`some idea what the claims mean, whether it's their interpretation, our
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`interpretation, the Board's interpretation. He was not at all concerned about
`
`11
`
`construction at all. That is a legal error.
`
`12
`
`
`
`But ultimately, I don't believe the outcome of this case rides on the
`
`13
`
`adoption of one side's interpretation or the other. Obviously, we believe the
`
`14
`
`Board's interpretation was correct and the Briefs deal with -- definitions and
`
`15
`
`the like, but -- use the broadest reasonable interpretation. I believe the
`
`16
`
`Board has adopted the fair and correct broad, reasonable interpretation of the
`
`17
`
`claim disputes.
`
`18
`
`
`
`JUDGE GIANNETTI: And why is it important, from your
`
`19
`
`perspective, that the expert be aware of what the Board's ruling was and it's
`
`20
`
`decision, which obviously the Board decided to institute? But beyond that,
`
`21
`
`why is it important for an expert who's supposedly reaching an independent
`
`22
`
`conclusion to know exactly what the reasoning of the Board was?
`
`23
`
`
`
`MR. KARL: I don't believe one can properly testify as to whether or
`
`24
`
`not a computer is specially programmed or not unless you have an
`
`25
`
`understanding as to what computer means in this context.
`
`
`
`15
`
`
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`
`
`JUDGE GIANNETTI: Did the expert and the expert's declaration set
`
`forth any understanding of that issue?
`
`
`
`MR. KARL: He didn't provide his definitions. In his deposition, he
`
`admitted that he was not familiar with the claim. He wasn't employed for
`
`that purpose. He discussed about it in pages 43 and 44 of his transcript, and
`
`the fact that he had not read the Board's decision at page 5 and 6.
`
`
`
`Ultimately, though, of course, the issue of patentability under
`
`Section 101 is a question of law. And so whether or not there are expert
`
`declarations, they may be in certain cases of use to the Board, but they're not
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`binding on the Board's analysis in any event.
`
`11
`
`
`
`JUDGE BISK: I actually have a question about that, which is were
`
`12
`
`there any actual factual disputes in this case on -- you implied that there's
`
`13
`
`more of a question of what specifically programmed means, not really what
`
`14
`
`the facts are?
`
`15
`
`
`
`MR. KARL: I believe that's a fair characterization. Other counsel
`
`16
`
`could disagree, but I believe it's hard to define specially programmed or not
`
`17
`
`in this context, that it's a legal dispute and not really a factual dispute. I
`
`18
`
`think the record is absolute. The spec is a spec, the claims are the claims,
`
`19
`
`and I don't think there's otherwise any true factual dispute in that regard.
`
`20
`
`
`
`Turning now to Slide 5, again the expert concedes that he does not
`
`21
`
`know the details of any special programming or configuration that was
`
`22
`
`required to allow the computers to interface with the communication links as
`
`23
`
`far as the language of the claims was concerned, that the claims were not
`
`24
`
`limited to a particular type of communication link, and that the expert
`
`
`
`16
`
`
`
`25
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`conceded there were different ways in which computers could be
`
`programmed to communicate with a communication link.
`
`
`
`I'd like to go now to the system claim, Claim 6, the system claim on
`
`page 7 of the demonstrative. Once again, on the left-hand side is the full text
`
`for the claim. As you can see, there are really two basic elements to this
`
`claim. There is a database and there is one or more computers comprising
`
`the server. That server, in turn, is configured for performing the four steps
`
`that are set forth in process Claim 3 verbatim.
`
`
`
`As far as the database is concerned, it recites it comprises worker
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`records and substitute records, and there is some unspecified information
`
`11
`
`associated with each worker and substitute record. But again, using a
`
`12
`
`computer to store data is a conventional, routine use of data. It doesn't
`
`13
`
`impart material substantiality to this claim.
`
`14
`
`
`
`JUDGE BISK: And will you still have us analyze this claim as an
`
`15
`
`abstract idea?
`
`16
`
`
`
`MR. KARL: Yes. In Mayo and Bancorp and the like, it has been
`
`17
`
`clear that the former claim is not controlling but you can't escape
`
`18
`
`unpatentability in Section 101, the drafting formats. And in some substance,
`
`19
`
`Claims 3 and 6 are covering the same Invention.
`
`20
`
`
`
`JUDGE BISK: But has there ever been a Federal Circuit case that
`
`21
`
`found a system claim unpatentable as an abstract idea?
`
`22
`
`23
`
`
`
`
`
`MR. KARL: When a system's claim unpatentable?
`
`JUDGE BISK: And that's -- I think that CyberSource -- and actually,
`
`24
`
`I would be curious to hear what you think about --
`
`
`
`17
`
`
`
`25
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`
`
`MR. KARL: I can't recite another case at the moment that falls in that
`
`particular pattern, unless you want to go cases involving, say, computer
`
`storage medium claims, which are not processes but they're not necessarily
`
`systems either. Certainly, Bancorp, there they found that the former claim is
`
`irrelevant and both the process and the computer storage medium claims rise
`
`and fall together. And that was the subject matter that was at issue also in
`
`the CLS Bank case.
`
`
`
`As far as precedent, I think CLS Bank is not precedent in the classic
`
`sense. It obviously is binding on the parties with regard to the particular
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`claims at issue, so it does have precedential value in res judicata effect, if
`
`11
`
`you will, on the parties for that particular claim. But otherwise, precedential
`
`12
`
`effect, I believe because it was a -- opinion, it was in a number of different
`
`13
`
`opinions, you can't otherwise draw any precedence or value from that
`
`14
`
`decision, with one exception, and that is in CLS Bank eight of the judges for
`
`15
`
`the various opinions all agreed that the particular method claims, system
`
`16
`
`claims, and computer medium claims should rise and fall together.
`
`17
`
`
`
`Now, they may have differed as to the reasons why or may have had -
`
`18
`
`- that was derived, but they agreed that they should rise and fall together.
`
`19
`
`And again, not consistent with the other cases that we have.
`
`20
`
`21
`
`
`
`
`
`JUDGE BISK: Is that precedential?
`
`MR. KARL: I think if you have eight judges that is the majority of
`
`22
`
`the Court saying so. But that's the only point which I think you can
`
`23
`
`otherwise glean any confidence from. Even if not precedential, it still gives
`
`24
`
`strong indication that the majority of the federal circuit is of that viewpoint.
`
`
`
`18
`
`
`
`25
`
`
`
`
`
`Case No. CMB2012-00005
`Patent No. 6,675,151C1
`
`When another case comes up, I think the judges have already shown their
`
`hand on that issue.
`
`
`
`JUDGE GIANNETTI: Well, counsel, would you say that that ruling
`
`applies to all claims in those categories or just the claims in that specific
`
`case? When you said that the eight judges held that in that case the --
`
`system and computer medium claims all fell together. I'm saying is that a
`
`general rule or is that just limited to the specific claims in this case?
`
`
`
`MR. KARL: No, I think it depends upon -- the claims have to be
`
`sufficiently close together. Obviously, there could've been a Claim 6 that
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`didn't mirror the process claims, in which case there'd be no ipso facto rise
`
`11
`
`and fall together scenario. It may well be that in the end analysis you reach
`
`12
`
`the same conclusion but because of different facts that lead you to that same
`
`13
`
`conclusion. So it really depends on the nature of the claims. But here, we
`
`14
`
`do have what is essentially a mirror claim.
`
`15
`
`
`
`And likewise, if you look at Supreme Court cases like -- where they
`
`16
`
`didn't necessarily itemize the different statutory classes that we have -- rise
`
`17
`
`and fall together, there is throughout certain language about the form of the
`
`18
`
`claim and kind of -- the not salvaging patentability. They seemed to indicate
`
`19
`
`that's the generalized principle and not somehow unique case by case by
`
`20
`
`case, depending on the form which the claim -- they set -- exceptions for
`
`21
`
`qualifications in that language. So I think that's the guidance you have to go
`
`22
`
`by.
`
`23
`
`
`
`Turning now to Slide 8, once again the expert in his declaration said
`
`24
`
`that it required a specially formatted data base, but when he was examined at
`
`25
`
`his deposition he admitted by specially formatted he merely meant it was
`
`
`
`19
`
`
`
`
`
`
`
`Case No. CMB2012-00005
`Paten