`U.S. Patent No. 6,834,282
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`UNITED STATES PATENT AND TRADEMARK OFFICE
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`VOLUSION, INC.
`Petitioner
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`v.
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`VERSATA DEVELOPMENT GROUP, INC.
`Patent Owner
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`Case CBM2013-00017
`U.S. Patent No. 6,834,282 B1
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`Before HOWARD B. BLANKENSHIP, SALLY C. MEDLEY, and
`KEVIN F. TURNER, Administrative Patent Judges.
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`JOINT MOTION TO TERMINATE PROCEEDINGS IN VIEW OF
`SETTLEMENT PURSUANT TO 35 U.S.C. § 327(a)
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`AND
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`JOINT NOTICE OF SETTLEMENT PURSUANT TO 35 U.S.C.
`§ 327(b) AND 37 C.F.R. § 42.74
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`Patent Owner and Petitioner (together, “the Parties”), have reached a
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`Case No. CBM2013-00017
`U.S. Patent No. 6,834,282
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`settlement regarding U.S. Patent No. 6,834,282 (“the ’282 Patent”).
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`Pursuant to the Board’s authorization granted by the Order – Conduct of the
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`Proceeding entered June 3, 2014 (“Order”), the Parties file the instant
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`motion jointly requesting termination of this Covered Business Method
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`Review (“CBM”) proceeding.
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`Statement of Precise Relief Requested
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`The Parties jointly request that the Board terminate this CBM without
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`rendering a final written decision.
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`Statement of Reasons for the Relief Requested
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`The Parties have reached a settlement and executed a Settlement
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`Agreement regarding their disputes relating to the ’282 Patent involved in
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`Versata Software, Inc., et al. v. Volusion, Inc., Civ. A. No. 1:12-cv-00893-
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`SS (W.D. Tex.). Because there is no longer a case-in-controversy between
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`the Parties involving the ’282 Patent and because the Board has not yet
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`decided this CBM on its merits, the Parties jointly request that the Board
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`terminate this CBM pursuant to 35 U.S.C. § 327(a). The Settlement
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`Agreement also addresses this CBM.
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`Petitioner previously filed a copy of the Settlement Agreement (Ex.
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`1025) with the Board, as required by 35 U.S.C. § 327(b) and 37 C.F.R.
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`§ 42.74. The Parties requested in a Joint Request to Keep Separate filed
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`U.S. Patent No. 6,834,282
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`May 28, 2014 (Paper No. 50) that this Settlement Agreement be treated as
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`business confidential information and be kept separate from the file of the
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`involved patent, pursuant to 35 U.S.C. § 327(b) and 37 C.F.R. § 42.74(c).
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`As instructed by the Board in the Order, the Parties jointly represent that the
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`settlement agreement filed as Exhibit 1025 is a true copy of the settlement
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`agreement entered into by the Parties. Order, p. 2.
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`Termination of these proceedings without rendering a final written
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`decision is justified for three fundamental reasons. First, the Parties have
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`reached a global settlement of all disputes between them and have executed
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`a final settlement agreement with mutual releases and covenants-not-to-sue.
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`The settlement resolves all Patent Office and District Court proceedings
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`between the Parties, eliminating any active controversy before the Board.
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`Second, no other party has petitioned for covered business method review or
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`inter partes review with respect to the ’282 patent. No other party is asking
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`the Board to review the validity of the ’282 patent.
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`These considerations have prompted the Board to dismiss inter partes
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`review proceedings under similar circumstances. In Sony Corp. v. Tessera
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`Inc., the Board dismissed an IPR at an advanced stage of the proceedings
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`because the parties had resolved both the IPR and related district court
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`litigation through a “global settlement.” Sony Corp. v. Tessera Inc.
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`U.S. Patent No. 6,834,282
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`(IPR2012-00033), Paper 46, p. 2 (Dec 20, 2013). The Board specifically
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`noted that, even though the patent owner was asserting the same patent
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`against a different defendant in district court litigation, that defendant “could
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`have, but did not, file a petition for inter partes review” or “motion for
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`joinder, in order to join this review.” Id. For the same reasons, termination
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`without rendering a final written decision is justified here.
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`In Interthinx, Inc. v. Corelogic Solutions, LLC (CBM2012-00007), the
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`Board declined to terminate the proceedings and noted that “Patent Owner
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`has identified ongoing litigation concerning the subject patent” against a
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`third party, Redfin Corp., who was not a party to the CBM proceedings.
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`CBM2012-00007, Paper 47, p. 2 (November 12, 2013).
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`In these proceedings, per the Board’s Order, Patent Owner has below
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`identified additional proceedings involving the ’282 Patent. However,
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`Patent Owner represents that, to the extent that any claims of the ‘282 Patent
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`are pursued in the identified proceedings, Patent Owner will only pursue
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`infringement of one or more of the non-instituted claims 21-23.
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`Furthermore, Patent Owner represents that no additional litigation or
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`proceeding involving the ’282 Patent is contemplated in the foreseeable
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`future. Thus, the additional current proceedings involving the ‘282 Patent
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`will not involve pursuit of any claims upon which this CBM proceeding was
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`U.S. Patent No. 6,834,282
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`instituted.
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`Furthermore, if the Board declines to terminate these proceedings in
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`this case, it would unnecessarily discourage settlement in other cases. In this
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`case, the filing of a joint motion to terminate these proceedings (as well as
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`the district court litigation) was an express condition of settlement.
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`Under these circumstances, there is every reason to honor the Parties’
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`wishes. Although the Board has discretion to continue a CBM after
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`settlement, there is no public policy justification for doing so here because
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`all disputes before the Patent Office regarding the ’282 patent are resolved
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`and no instituted claims are asserted in any current proceeding.
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`Status of Litigations or Proceedings
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`As instructed by the Board in the Order, Patent Owner lists the
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`following additional litigations involving the ’282 Patent, and their statuses:
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`Litigation
`Versata Software Inc. and Versata Development
`Group, Inc. v. Cloud9 Analytics Inc (1:12-cv-00925-
`LPS)
`Versata Software Inc. and Versata Development
`Group, Inc. v. Nehanet Corporation (1:12-cv-
`00926-LPS)
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`Court
`D. Del
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`Status
`Active
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`D. Del
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`Active
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`U.S. Patent No. 6,834,282
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`Versata Software Inc. and Versata Development
`Group, Inc. v. Dorado Software, Inc. (2:13:cv-
`00920-MCE-DAD)
`Versata Software Inc. and Versata Development
`Group, Inc. v. Netbrain Technologies, Inc. (1:13-cv-
`00676-UNA)
`Versata Software Inc. and Versata Development
`Group, Inc. v. Infoblox, Inc. (1:13-cv-00678-UNA)
`Versata Software Inc. and Versata Development
`Group, Inc. v. Zoho Corporation (1:13-cv-00371-
`SS)
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`E.D.CA. Active –
`Stayed
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`D. Del
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`Active
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`D. Del
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`Active
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`W.D.Tex. Active
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`In each pending litigation, Patent Owner represents that only claims
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`21-23 of the ’282 patent are asserted. See Exhibit 2014. Claims 21-23 of
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`the ’282 patent are not at issue in this CBM proceeding. Institution
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`Decision (Paper No. 8) at 2.
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`Patent Owner represents that no other litigations or proceedings are
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`pending which involve the ’282 Patent. No additional litigation or
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`proceeding involving the ’282 Patent is contemplated in the foreseeable
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`future.
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`Jointly submitted,
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`Dated: June 6, 2014
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` s/ Kent B. Chambers
`Kent B. Chambers (Reg. No. 38,839)
`TERRILE, CANNATTI, CHAMBERS
`& HOLLAND LLP
`Attorney for Patent Owner
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`Case No. CBM2013-00017
`U.S. Patent No. 6,834,282
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`s/ Keith E. Broyles
`Keith E. Broyles (Reg. No. 42,365)
`keith.broyles@alston.com
`Jason P. Cooper (Reg. No. 38,114)
`jason.cooper@alston.com
`David S. Frist (Reg. No. 60,511)
`david.frist@alston.com
`ALSTON & BIRD LLP
`One Atlantic Center
`1201 West Peachtree Street
`Atlanta, Georgia 30309-3424
`Tel.: (404) 881-7000
`Fax: (404) 881-7777
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`Attorneys for
`Petitioner Volusion, Inc.
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`Case No. CBM2013-00017
`U.S. Patent No. 6,834,282
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`CERTIFICATE OF SERVICE
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`The undersigned hereby certifies that service was made on
`Petitioner’s counsel of record as detailed below.
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`Date of service June 6, 2014
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`Manner of service Electronic Mail (keith.broyles@alston.com)
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`Documents served JOINT MOTION TO TERMINATE PROCEEDINGS IN
`VIEW OF SETTLEMENT PURSUANT TO 35
`U.S.C. § 327(a) AND JOINT NOTICE OF
`SETTLEMENT PURSUANT TO 35 U.S.C. § 327(b)
`AND 37 C.F.R. § 42.74
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`Persons served Keith E. Broyles
`Alston & Bird LLP
`One Atlantic Center
`1201 West Peachtree Street
`Atlanta, GA 30309-3424
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`/Kent B. Chambers/
`Kent B. Chambers
`Registration No. 38,839
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