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UNITED STATES PATENT AND TRADEMARK OFFICE
`
` BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`------------------------------ Case No.
`
`PNC BANK, N.A. AND JP MORGAN ) CBM2014-00038
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`CHASE & CO. and CHASE BANK, ) CBM2014-00039
`
`N.A.,
`
`) CBM2014-00040 and
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`Petitioners, ) CBM2014-00041
`
`vs.
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`)
`
`MAXIM INTEGRATED PRODUCTS, ) Patents 5,940,510,
`
`INC,
`
`) 5,949,880,
`
`Patent Owners. ) 6,105,013 and
`
`------------------------------ 6,237,095
`
`TELEPHONE CONFERENCE CALL
`
`Wednesday, March 27, 2014
`
`Reported by:
`
`CLAUDIA REYES
`
`CSR No. 12812
`
`Job No: 1837584
`
`PAGES 1 - 13
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`Maxim Exhibit 2012 - PNC/JPMC, CBM2014-00039 - Page 2012-001
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`

`

` UNITED STATES PATENT AND TRADEMARK OFFICE
`
` BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`------------------------------ Case No.
`
`PNC BANK, N.A. AND JP MORGAN ) CBM2014-00038
`
`CHASE & CO. and CHASE BANK, ) CBM2014-00039
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`N.A., ) CBM2014-00040 and
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` Petitioners, ) CBM2014-00041
`
` vs. )
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`MAXIM INTEGRATED PRODUCTS, ) Patents 5,940,510,
`
`INC, ) 5,949,880,
`
` Patent Owners. ) 6,105,013 and
`
`------------------------------ 6,237,095
`
` Telephone Conference Call beginning at
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`11:30 a.m. and ending at 11:42 a.m., on Wednesday,
`
`March 27, 2014, before CLAUDIA REYES, Certified
`
`Shorthand Reporter Number 12812.
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`Page 2012-002
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`

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`APPEARANCES:
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`For the Panel:
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` Sally C. Medley
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` Mitchell G. Weatherly
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` Miriam L. Quinn
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`For the Petitioners:
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` FINNEGAN, HENDERSON, FARABOW, GARRETT & DUNNER
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` BY: LIONEL M. LAVENUE, ESQ.
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` Two Freedom Square
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` 11955 Freedom Drive
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` Reston, Virginia 20190
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` 571.203.2700
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` 202.408.4400 (Fax)
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` lionel.lavenue@finnegan.com
`
`For the Patent Owner:
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` GOLDBERG, LOWENSTEIN & WEATHERWAX
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` BY: KENNETH WEATHERWAX, ESQ.
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` 11400 West Olympic Boulevard
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` Suite 400
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` Los Angeles, California 90064
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` 310.203.9222
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` 425.962.1432 (Fax)
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` weatherwax@glwllp.com
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` Wednesday, March 27, 2014
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` 11:30 a.m.
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` JUDGE MEDLEY: Good morning.
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` MR. LAVENUE: Thank you, Your Honor. This is
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`Lionel Lavenue for the petitioners. Also with me on
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`the phone are Cory Bell and Josh Goldberg.
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` JUDGE MEDLEY: Okay. Thank you.
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` MR. WEATHERWAX: For patent -- I'm sorry.
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` JUDGE MEDLEY: Go ahead.
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` MR. WEATHERWAX: For patent owner -- I
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`apologize.
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` JUDGE MEDLEY: Yes. I'm sorry. Go ahead.
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` MR. WEATHERWAX: This is for patent owner.
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`This is Kenneth Weatherwax and Parham Hendifar.
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`They're primary backup counsel. Also on the line for
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`patent owner are Stephanie Smith. And there's also a
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`court reporter on the line.
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` THE REPORTER: Yes. Claudia Reyes.
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` JUDGE MEDLEY: Thank you.
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` MR. HONG: And Dom Chang Hong for --
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`co-counsel for petitioner.
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` JUDGE MEDLEY: Okay.
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` MR. HANSON: And Eric Hanson and Patrick
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`Maloney with Goldberg, Lowenstein & Weatherwax for
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`patent owner.
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` JUDGE MEDLEY: Okay. So this is in regards
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`to CBM2014-00038, -39, -40, and -41.
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` So I understand that the petitioner requested
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`this call. But that also the patent owner has an
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`issue too. So we'll begin with the petitioner.
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` MR. LAVENUE: Thank you, Your Honors. This
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`is Lionel Lavenue from Finnegan for the petitioner for
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`both PNC Bank and JP Morgan Bank. In this -- in these
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`particular series of CBM petitions, we filed these on
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`behalf PNC Bank with the understanding that the AIA,
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`Section 1881, was not clear if DJ plaintiffs were able
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`to file CBM.
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` We noted that the patent office rules allowed
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`for DJ plaintiffs to file a CBM under 37CFR42-302A and
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`also comments at 77 Federal Register 48693. And also
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`in the SAT case, CBM2013-13, a DJ plaintiff was
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`allowed to file CBM.
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` So that's why we had both PNC Bank and
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`JP Morgan, which had not filed a DJ complaint, both
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`together filed these -- these four CBM petitions. And
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`that's why PNC Bank felt that it could do so.
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` We do note that in recent decision, in the
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`BB&T Bank case, CBM2013-59, the board rejected the CBM
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`petition by BB&T Bank because they were a DJ
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`plaintiff.
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` And so at this point, what we would like to
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`do for PNC Bank is to withdraw pursuant to
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`37CFR42-73D.
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` And the reason that we believe that we're
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`entitled to do so is consistent with the Board's
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`recent ruling in Fandango, which is CBM2014-13,
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`paper 22 at 8, where the Board noted that there are
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`two bases for a party in a petition with multiple
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`parties in a single petition to withdraw.
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` And the two options for a party to withdraw
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`are, number one, to remove under 37CFR42-73. And
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`that's what we're seeking to do.
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` The second is to withdraw pursuant to a joint
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`motion to terminate for settlement. We will note,
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`Your Honors, that we have reached settlement terms on
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`behalf of PNC Bank, but the settlement agreement is
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`not signed.
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` So because of that, and because of an
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`objection by the patent owner, we are not seeking, at
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`this time, to pursue the joint motion to terminate
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`settlement. But instead are seeking to withdraw
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`pursuant to CFR rules for abandonment of contest.
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` We note that in the Fandango case there
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`were 27 -- 25-plus parties in that case. And one of
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`the parties, Apple wanted to actually withdraw,
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`re-file, and then be guaranteed a rejoinder to that
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`case.
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` And the Board -- the reason they wanted to do
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`that is they wanted to have their own lead counsel.
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`And they did not want to have to share lead counsel
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`with the others, as explained in paper 22.
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` The Board noted that Apple had two options to
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`withdraw, either to withdraw with the abandonment of
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`contest under the CFR rule or to settle. And those
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`were the only two options available. They certainly
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`could not withdraw conditionally with the Board giving
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`them the right or guaranteeing in advance that they
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`would allow them to rejoin.
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` And so that's exactly what we're seeking here
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`is to actually abandon on behalf of PNC Bank. But of
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`course, to maintain our petition with respect to
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`JP Morgan.
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` JUDGE MEDLEY: Okay. All right. Thank you.
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` So I'd like to hear from the patent owner at
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`this point. Sounds like they want to file a motion
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`for request for adverse judgment against themselves --
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`I'm sorry -- against PNC, but not JP Morgan --
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` MR. WEATHERWAX: I'm sorry. If I may correct
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`you, Judge Medley. First of all, we weren't convinced
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`that it was time to have a call. But we wanted to
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`discuss at the time a possible motion to expedite
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`judgment on whether to initiate --
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` JUDGE MEDLEY: Yeah. That's a separate issue
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`though, I think. We're talking about the first issue.
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`They want to file -- at least with respect to PNC,
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`they want to file a motion to withdraw on the basis
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`that they are requesting adverse judgment. And so --
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` MR. WEATHERWAX: Okay.
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` JUDGE MEDLEY: -- what I'm asking you is
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`whether or not you would oppose that motion.
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` MR. WEATHERWAX: So -- we would oppose to
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`join such a motion or not oppose it. We do oppose it.
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`I was not obviously privy to the arguments that were
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`presented just now by petitioner.
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` JUDGE MEDLEY: Okay. That's fine.
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` MR. WEATHERWAX: So I'm not in a position to
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`respond at this time to that.
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` JUDGE MEDLEY: Okay. I just wanted to know
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`if you would oppose. They really don't -- I think the
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`panel doesn't want to get into the merits of this
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`right now on the call.
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` MR. WEATHERWAX: I agree.
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` JUDGE MEDLEY: I think what we want to do is
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`just procedurally figure out how to go from here. And
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`I think what we're thinking is that we would like
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`briefing on this.
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` And so we just wanted to know if we need to
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`set aside some time for an opposition. And it sounds
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`like we do need to set aside such time for an
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`opposition. Is that what I'm hearing?
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` MR. WEATHERWAX: That's right.
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` JUDGE MEDLEY: Okay. All right. Great.
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` As I said, we don't want to discuss the
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`merits on this call. I think we would authorize the
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`petitioner to file such a motion. And I'm thinking
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`that you would -- you would only need five pages. And
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`we were hoping that you could get this in by Monday.
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`So I'll ask petitioner if that's possible.
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` MR. LAVENUE: By Monday is possible. By
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`Wednesday, would be better if that would be possible,
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`Your Honors.
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` JUDGE MEDLEY: Okay. Well --
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` MR. WEATHERWAX: If I may -- I apologize for
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`interrupting you, Judge Medley -- we would prefer the
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`earlier date. There is some pending stay motion
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`practice in the litigation. It would be better to try
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`to clear it up earlier.
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` JUDGE MEDLEY: Right. We understand that
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`there's that tension to move things along quickly and
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`petitioner wants to at least get out with respect to
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`one petitioner. So --
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` MR. WEATHERWAX: I'm not trying to squeeze
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`petitioner. So in other words, perhaps Tuesday or
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`something.
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` JUDGE MEDLEY: Okay.
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` MR. WEATHERWAX: I'm not trying to push. I'm
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`not trying to push.
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` JUDGE MEDLEY: Okay. I understand.
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` All right. So we do appreciate that the time
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`is ticking, not only for everybody involved, but
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`certainly for the Board because we had the preliminary
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`responses from the patent owner.
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` And as you know, we have to meet our
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`statutory obligation to get these -- a decision out
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`within three months from when we receive those. So we
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`would want to get briefing fairly quickly.
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` So if we get -- let's say, if we get the
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`motion on Tuesday, we'd then want the opposition by
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`Friday. And then possibly a short reply the following
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`Monday or something like that.
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` So that's what we're thinking, but, of
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`course, we'll memorialize that in an order.
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` MR. WEATHERWAX: I'm sorry. This is patent
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`owner. And may I just raise a couple points or I
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`guess I'd call them objections.
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` Well, one possibility is, could we have --
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`we'd prefer there should be just two rounds. We think
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`that would be more in keeping with the way the
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`preliminary proceeding goes. There's no replies
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`before the initiation decision. And we would think
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`that it might move faster if there's just two rounds,
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`just the motion and then our response. And that's it.
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` JUDGE MEDLEY: I was just going to say, yes,
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`I appreciate and understand. But this isn't the
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`typical, they want to reply to your preliminary
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`response. This is a separate briefing. It's a
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`separate motion.
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` MR. WEATHERWAX: Okay.
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` JUDGE MEDLEY: And typically, the Board would
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`accept, you know, very short, it would be brief, like
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`a one- or two-page reply. I wouldn't think that they
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`would have anything that they haven't already said in
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`their motion.
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` So having said that, you know, we can
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`consider, if we get the opposition, we may not even
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`need a reply. So -- but we would possibly set out a
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`schedule, an order, for all three papers --
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` MR. WEATHERWAX: Thank you, Judge Medley.
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` JUDGE MEDLEY: -- or if we can go on next to
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`patent owners request that they would like to expedite
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`a decision on the petition --
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` MR. WEATHERWAX: We have decided that it
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`would not be appropriate to ask for permission to do
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`that at this time. So we would not ask that at this
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`time.
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` JUDGE MEDLEY: Okay. You're withdrawing that
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`request. Great.
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` Is there anything else for the conference
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`call?
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` MR. LAVENUE: Your Honors, nothing further
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`from the petitioners.
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` JUDGE MEDLEY: Great. How about patent
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`owner?
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` MR. WEATHERWAX: Nothing further. We
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`appreciate it.
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` JUDGE MEDLEY: Okay. Great.
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` Well, we appreciate the call. And we will
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`send out an order shortly setting the scheduling for
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`the motion briefing on withdrawal.
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` Thank you very much. And have a nice day.
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` (TIME NOTED: 11:42 a.m.)
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` C E R T I F I C A T E
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` I, the undersigned, a Certified Shorthand
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`Reporter of the State of California, do hereby
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`certify;
`
` That the foregoing proceedings were taken
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`before me at the time herein set forth; that a record
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`of the proceedings was made by me using machine
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`shorthand which was thereafter transcribed under my
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`direction; that the foregoing transcript is a true
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`record of the proceedings.
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` I further certify I am neither financially
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`interested in the action nor a relative or employee or
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`any attorney or any party to this action.
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` IN WITNESS WHEREOF, I have this date
`
`subscribed my name.
`
`Dated: April 3, 2014
`
` ____________________________
`
` CLAUDIA REYES, CSR No. 12812
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`[& - everybody]
`
`&
`& 1:6 2:6 3:9,18 5:1
`1
`
`1 1:25
`11400 3:20
`11955 3:12
`11:30 2:19 4:2
`11:42 2:19 12:24
`12812 1:22 2:21
`13:23
`13 1:25
`1837584 1:23
`1881 5:13
`2
`2014 1:17 2:20 4:1
`13:17
`20190 3:13
`202.408.4400 3:14
`22 6:9 7:8
`25 7:1
`27 1:17 2:20 4:1 7:1
`3
`
`3 13:17
`310.203.9222 3:23
`37cfr42-302a 5:16
`37cfr42-73 6:13
`37cfr42-73d 6:5
`39 5:4
`
`4
`
`40 5:4
`400 3:21
`41 5:4
`425.962.1432 3:24
`48693 5:17
`5
`5,940,510 1:10 2:10
`5,949,880 1:11 2:11
`571.203.2700 3:14
`6
`6,105,013 1:12 2:12
`6,237,095 1:13 2:13
`
`7
`
`8
`
`77 5:17
`
`8 6:9
`
`9
`90064 3:22
`a
`a.m. 2:19,19 4:2
`12:24
`abandon 7:17
`abandonment 6:24
`7:10
`able 5:13
`accept 11:17
`action 13:13,14
`advance 7:14
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`
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`c
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`
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`d
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`e
`
`e 13:1,1
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`[exactly - parties]
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`exactly 7:16
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`f
`
`f 13:1
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`
`g
`
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`
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`
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`
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`
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`
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`
`p
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`parties 6:11 7:1,2
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`[party - wanted]
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`party 6:10,12 13:14
`patent 1:1,2,12 2:1,2
`2:12 3:17 4:10,12
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`
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`
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`u
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`v
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`w
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`8:25 9:10 10:18,20
`11:12
`wanted 7:2,5,6 8:2
`8:20 9:4
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`[wants - yeah]
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`wants 10:2
`way 11:5
`weatherly 3:5
`weatherwax 3:18,19
`3:25 4:10,12,15,16
`5:1 7:25 8:10,13,18
`8:24 9:8,20 10:4,8
`10:25 11:15,25 12:4
`12:16
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`2:19 4:1 9:17
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`6:15,23 7:2,10,10
`7:13 8:8
`withdrawal 12:21
`withdrawing 12:8
`witness 13:15
`words 10:5
`y
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`yeah 8:5
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