Changes to Implement Inter Partes Review Proceedings, .•• , 77 FR 48680-01
`
`77 FR 48680-01
`RULES and REGULATIONS
`DEPARTMENT OF COMMERCE
`Patent and Trademark Office
`37 CFR Part 42
`[Docket No. PTO-P-2011-0083]
`RIN o651-AC71
`
`Changes to Implement Inter Partes Review Proceedings, Post-Grant Review
`Proceedings, m1d Transitional Program for Covered Business Method Patents
`
`Tuesday, August 14, 2012
`
`AGENCY: United States Patent and Trademark Office, Commerce.
`
`*48680 ACTION: Final rule.
`
`SUMMARY: The United States Patent and Trademark Office (Office or USPTO) is revising the rules of practice to implement
`the provisions ofthe Leahy-Smith America Invents Act ("AlA") that create the new inter partes review proceeding, post-grant
`review proceeding, and transitional post-grant review proceeding for covered business method patents, to be conducted before
`the Patent Trial and Appeal Board (Board). These provisions of the AlA will take effect on September 16, 2012, one year after
`the date of enactment.
`DATES: Effective Date: September 16, 2012.
`Applicability Dates: The changes for inter partes review proceedings apply to any patent issued before, on, or after
`September 16, 2012 (subpatt B).
`
`The changes for post-grant review proceedings generally apply to patents issuing from applications subject to
`- first-inventor~to=:fifeproVIsions-oTilieA.I.A(subpartcfiri-ad.di1Ion;-1:1le cmer AdmiriJ.StraHvePaterif.Judgem:a.y,----- - -
`in the interests-of-justice, order an interferences commenced before September 16, 2012, to be dismissed without
`prejudice to the filing of a petition for post-grant review. See 42.2oo(d) and§ 6(f)((3)(A) of the AlA.
`
`The changes for transitional program for covered business method patents apply to any covered business method
`patent issued before, on, or after September 16, 2012 (subpart D).
`
`FOR FURTHER INFORMATION CONTACT: Michael P. Tierney, Lead Administrative Patent Judge, Sally G. Lane,
`Administrative Patent Judge, Sally C. Medley, Administrative Pate!J.t Judge, Robert A. Clarke, Administrative Patent Judge,
`and Joni Y. Chang, Administrative Patent Judge, Board of Patent Appeals and Interferences, by telephone at (571) 272-9797.
`
`SUPPLEMENTARY INFORMATION: Executive Summary: Purpose: On September 16,201 I, the AlA was enacted into law
`(Pub. L. 112-29, 125 Stat. 284 (2011)). The purpose of the AlA and this final rule is to establish a more efficient and streamlined
`patent system that will improve patent quality and limit unnecessary and counterproductive litigation costs. The preamble of
`this notice sets forth in detail the procedures by which the Board will conduct inter partes review proceedings, post-grant review
`proceedings, and transitional post-grant review proceedings for covered business method patents. The USPTO is engaged in
`a transparent process to create a timely, cost-effective alternative to litigation. Moreover, the rules are designed to ensure the
`integrity of the trial procedures. See 35 U.S.C. 3I6(b), as amended, and 35 U.S.C. 326(b). This final rule would provide a set of
`rules relating to Board trial practice for inter partes review proceedings, post-grant review proceedings, and transitional post(cid:173)
`grant review proceedings for covered business method patents.
`
`Callidus Ex. 1010
`CBM20 14-00118
`--------1
`(Callidus v. Versata)
`V~sl:t~Nrotr © 2013 Thomson Reuters. No claim to original U.S. Government Works.
`
`Ex. 1010 01/92
`
`

`
`Changes to Implement Inter Partes Review Proceedings,..., 77 FR 48680-01
`
`(cid:5)(cid:5)(cid:3)(cid:6)(cid:7)(cid:3)(cid:8)(cid:9)(cid:10)(cid:9)(cid:11)(cid:4)(cid:11)(cid:12)
`(cid:7)(cid:13)(cid:14)(cid:15)(cid:16)(cid:3)(cid:17)(cid:18)(cid:19)(cid:3)(cid:7)(cid:15)(cid:20)(cid:13)(cid:14)(cid:21)(cid:22)(cid:23)(cid:24)(cid:25)(cid:16)
`(cid:26)(cid:15)(cid:27)(cid:21)(cid:7)(cid:22)(cid:28)(cid:15)(cid:25)(cid:22)(cid:3)(cid:24)(cid:6)(cid:3)(cid:29)(cid:24)(cid:28)(cid:28)(cid:15)(cid:7)(cid:29)(cid:15)
`(cid:27)(cid:17)(cid:30)(cid:31)(cid:18)(cid:30)(cid:3)(cid:17)(cid:18)(cid:19)(cid:3)(cid:22)(cid:32)(cid:17)(cid:19)(cid:31)(cid:33)(cid:17)(cid:32)(cid:34)(cid:3)(cid:24)(cid:35)(cid:35)(cid:36)(cid:37)(cid:31)
`(cid:38)(cid:5)(cid:3)(cid:29)(cid:6)(cid:7)(cid:3)(cid:27)(cid:17)(cid:32)(cid:30)(cid:3)(cid:8)(cid:39)
`(cid:40)(cid:26)(cid:41)(cid:37)(cid:34)(cid:31)(cid:30)(cid:3)(cid:25)(cid:41)(cid:42)(cid:3)(cid:27)(cid:22)(cid:24)(cid:4)(cid:27)(cid:4)(cid:39)(cid:11)(cid:12)(cid:12)(cid:4)(cid:11)(cid:11)(cid:9)(cid:38)(cid:43)
`(cid:7)(cid:23)(cid:25)(cid:3)(cid:11)(cid:10)(cid:44)(cid:12)(cid:4)(cid:21)(cid:29)(cid:5)(cid:12)
`
`(cid:29)(cid:45)(cid:17)(cid:18)(cid:46)(cid:31)(cid:47)(cid:3)(cid:30)(cid:41)(cid:3)(cid:23)(cid:33)(cid:48)(cid:49)(cid:31)(cid:33)(cid:31)(cid:18)(cid:30)(cid:3)(cid:23)(cid:18)(cid:30)(cid:31)(cid:32)(cid:3)(cid:27)(cid:17)(cid:32)(cid:30)(cid:31)(cid:47)(cid:3)(cid:7)(cid:31)(cid:50)(cid:36)(cid:31)(cid:51)(cid:3)(cid:27)(cid:32)(cid:41)(cid:37)(cid:31)(cid:31)(cid:19)(cid:36)(cid:18)(cid:46)(cid:47)(cid:52)(cid:3)(cid:27)(cid:41)(cid:47)(cid:30)(cid:4)(cid:20)(cid:32)(cid:17)(cid:18)(cid:30)(cid:3)(cid:7)(cid:31)(cid:50)(cid:36)(cid:31)(cid:51)
`(cid:27)(cid:32)(cid:41)(cid:37)(cid:31)(cid:31)(cid:19)(cid:36)(cid:18)(cid:46)(cid:47)(cid:52)(cid:3)(cid:17)(cid:18)(cid:19)(cid:3)(cid:22)(cid:32)(cid:17)(cid:18)(cid:47)(cid:36)(cid:30)(cid:36)(cid:41)(cid:18)(cid:17)(cid:49)(cid:3)(cid:27)(cid:32)(cid:41)(cid:46)(cid:32)(cid:17)(cid:33)(cid:3)(cid:35)(cid:41)(cid:32)(cid:3)(cid:29)(cid:41)(cid:50)(cid:31)(cid:32)(cid:31)(cid:19)(cid:3)(cid:53)(cid:54)(cid:47)(cid:36)(cid:18)(cid:31)(cid:47)(cid:47)(cid:3)(cid:28)(cid:31)(cid:30)(cid:45)(cid:41)(cid:19)(cid:3)(cid:27)(cid:17)(cid:30)(cid:31)(cid:18)(cid:30)(cid:47)
`
`(cid:22)(cid:54)(cid:31)(cid:47)(cid:19)(cid:17)(cid:55)(cid:52)(cid:3)(cid:21)(cid:54)(cid:46)(cid:54)(cid:47)(cid:30)(cid:3)(cid:12)(cid:8)(cid:52)(cid:3)(cid:39)(cid:11)(cid:12)(cid:39)
`
`AGENCY: United States Patent and Trademark Office, Commerce.
`
`*48680 ACTION: Final rule.
`
`SUMMARY: The United States Patent and Trademark Office (Office or USPTO) is revising the rules of practice to implement
`the provisions of the Leahy-Smith America Invents Act (“AIA”) that create the new inter partes review proceeding, post-grant
`review proceeding, and transitional post-grant review proceeding for covered business method patents, to be conducted before
`the Patent Trial and Appeal Board (Board). These provisions of the AIA will take effect on September 16, 2012, one year after
`the date of enactment.
`(cid:26)(cid:21)(cid:22)(cid:15)(cid:16)(cid:56)(cid:3)(cid:15)(cid:35)(cid:35)(cid:31)(cid:37)(cid:30)(cid:36)(cid:50)(cid:31)(cid:3)(cid:26)(cid:17)(cid:30)(cid:31)(cid:56)(cid:3)(cid:16)(cid:31)(cid:48)(cid:30)(cid:31)(cid:33)(cid:57)(cid:31)(cid:32)(cid:3)(cid:12)(cid:10)(cid:52)(cid:3)(cid:39)(cid:11)(cid:12)(cid:39)(cid:42)
`(cid:21)(cid:48)(cid:48)(cid:49)(cid:36)(cid:37)(cid:17)(cid:57)(cid:36)(cid:49)(cid:36)(cid:30)(cid:55)(cid:3)(cid:26)(cid:17)(cid:30)(cid:31)(cid:47)(cid:56)(cid:3)(cid:22)(cid:45)(cid:31)(cid:3)(cid:37)(cid:45)(cid:17)(cid:18)(cid:46)(cid:31)(cid:47)(cid:3)(cid:35)(cid:41)(cid:32)(cid:3)(cid:36)(cid:18)(cid:30)(cid:31)(cid:32)(cid:3)(cid:48)(cid:17)(cid:32)(cid:30)(cid:31)(cid:47)(cid:3)(cid:32)(cid:31)(cid:50)(cid:36)(cid:31)(cid:51)(cid:3)(cid:48)(cid:32)(cid:41)(cid:37)(cid:31)(cid:31)(cid:19)(cid:36)(cid:18)(cid:46)(cid:47)(cid:3)(cid:17)(cid:48)(cid:48)(cid:49)(cid:55)(cid:3)(cid:30)(cid:41)(cid:3)(cid:17)(cid:18)(cid:55)(cid:3)(cid:48)(cid:17)(cid:30)(cid:31)(cid:18)(cid:30)(cid:3)(cid:36)(cid:47)(cid:47)(cid:54)(cid:31)(cid:19)(cid:3)(cid:57)(cid:31)(cid:35)(cid:41)(cid:32)(cid:31)(cid:52)(cid:3)(cid:41)(cid:18)(cid:52)(cid:3)(cid:41)(cid:32)(cid:3)(cid:17)(cid:35)(cid:30)(cid:31)(cid:32)
`(cid:16)(cid:31)(cid:48)(cid:30)(cid:31)(cid:33)(cid:57)(cid:31)(cid:32)(cid:3)(cid:12)(cid:10)(cid:52)(cid:3)(cid:39)(cid:11)(cid:12)(cid:39)(cid:3)(cid:58)(cid:47)(cid:54)(cid:57)(cid:48)(cid:17)(cid:32)(cid:30)(cid:3)(cid:53)(cid:59)(cid:42)
`
`(cid:22)(cid:45)(cid:31)(cid:3) (cid:37)(cid:45)(cid:17)(cid:18)(cid:46)(cid:31)(cid:47)(cid:3) (cid:35)(cid:41)(cid:32)(cid:3) (cid:48)(cid:41)(cid:47)(cid:30)(cid:4)(cid:46)(cid:32)(cid:17)(cid:18)(cid:30)(cid:3) (cid:32)(cid:31)(cid:50)(cid:36)(cid:31)(cid:51)(cid:3) (cid:48)(cid:32)(cid:41)(cid:37)(cid:31)(cid:31)(cid:19)(cid:36)(cid:18)(cid:46)(cid:47)(cid:3) (cid:46)(cid:31)(cid:18)(cid:31)(cid:32)(cid:17)(cid:49)(cid:49)(cid:55)(cid:3) (cid:17)(cid:48)(cid:48)(cid:49)(cid:55)(cid:3) (cid:30)(cid:41)(cid:3) (cid:48)(cid:17)(cid:30)(cid:31)(cid:18)(cid:30)(cid:47)(cid:3) (cid:36)(cid:47)(cid:47)(cid:54)(cid:36)(cid:18)(cid:46)(cid:3) (cid:35)(cid:32)(cid:41)(cid:33)(cid:3) (cid:17)(cid:48)(cid:48)(cid:49)(cid:36)(cid:37)(cid:17)(cid:30)(cid:36)(cid:41)(cid:18)(cid:47)(cid:3) (cid:47)(cid:54)(cid:57)(cid:60)(cid:31)(cid:37)(cid:30)(cid:3) (cid:30)(cid:41)
`(cid:35)(cid:36)(cid:32)(cid:47)(cid:30)(cid:4)(cid:36)(cid:18)(cid:50)(cid:31)(cid:18)(cid:30)(cid:41)(cid:32)(cid:4)(cid:30)(cid:41)(cid:4)(cid:35)(cid:36)(cid:49)(cid:31)(cid:3)(cid:48)(cid:32)(cid:41)(cid:50)(cid:36)(cid:47)(cid:36)(cid:41)(cid:18)(cid:47)(cid:3)(cid:41)(cid:35)(cid:3)(cid:30)(cid:45)(cid:31)(cid:3)(cid:21)(cid:23)(cid:21)(cid:3)(cid:58)(cid:47)(cid:54)(cid:57)(cid:48)(cid:17)(cid:32)(cid:30)(cid:3)(cid:29)(cid:59)(cid:42)(cid:3)(cid:23)(cid:18)(cid:3)(cid:17)(cid:19)(cid:19)(cid:36)(cid:30)(cid:36)(cid:41)(cid:18)(cid:52)(cid:3)(cid:30)(cid:45)(cid:31)(cid:3)(cid:29)(cid:45)(cid:36)(cid:31)(cid:35)(cid:3)(cid:21)(cid:19)(cid:33)(cid:36)(cid:18)(cid:36)(cid:47)(cid:30)(cid:32)(cid:17)(cid:30)(cid:36)(cid:50)(cid:31)(cid:3)(cid:27)(cid:17)(cid:30)(cid:31)(cid:18)(cid:30)(cid:3)(cid:61)(cid:54)(cid:19)(cid:46)(cid:31)(cid:3)(cid:33)(cid:17)(cid:55)(cid:52)
`(cid:36)(cid:18)(cid:3)(cid:30)(cid:45)(cid:31)(cid:3)(cid:36)(cid:18)(cid:30)(cid:31)(cid:32)(cid:31)(cid:47)(cid:30)(cid:47)(cid:4)(cid:41)(cid:35)(cid:4)(cid:60)(cid:54)(cid:47)(cid:30)(cid:36)(cid:37)(cid:31)(cid:52)(cid:3)(cid:41)(cid:32)(cid:19)(cid:31)(cid:32)(cid:3)(cid:17)(cid:18)(cid:3)(cid:36)(cid:18)(cid:30)(cid:31)(cid:32)(cid:35)(cid:31)(cid:32)(cid:31)(cid:18)(cid:37)(cid:31)(cid:47)(cid:3)(cid:37)(cid:41)(cid:33)(cid:33)(cid:31)(cid:18)(cid:37)(cid:31)(cid:19)(cid:3)(cid:57)(cid:31)(cid:35)(cid:41)(cid:32)(cid:31)(cid:3)(cid:16)(cid:31)(cid:48)(cid:30)(cid:31)(cid:33)(cid:57)(cid:31)(cid:32)(cid:3)(cid:12)(cid:10)(cid:52)(cid:3)(cid:39)(cid:11)(cid:12)(cid:39)(cid:52)(cid:3)(cid:30)(cid:41)(cid:3)(cid:57)(cid:31)(cid:3)(cid:19)(cid:36)(cid:47)(cid:33)(cid:36)(cid:47)(cid:47)(cid:31)(cid:19)(cid:3)(cid:51)(cid:36)(cid:30)(cid:45)(cid:41)(cid:54)(cid:30)
`(cid:48)(cid:32)(cid:31)(cid:60)(cid:54)(cid:19)(cid:36)(cid:37)(cid:31)(cid:3)(cid:30)(cid:41)(cid:3)(cid:30)(cid:45)(cid:31)(cid:3)(cid:35)(cid:36)(cid:49)(cid:36)(cid:18)(cid:46)(cid:3)(cid:41)(cid:35)(cid:3)(cid:17)(cid:3)(cid:48)(cid:31)(cid:30)(cid:36)(cid:30)(cid:36)(cid:41)(cid:18)(cid:3)(cid:35)(cid:41)(cid:32)(cid:3)(cid:48)(cid:41)(cid:47)(cid:30)(cid:4)(cid:46)(cid:32)(cid:17)(cid:18)(cid:30)(cid:3)(cid:32)(cid:31)(cid:50)(cid:36)(cid:31)(cid:51)(cid:42)(cid:3)(cid:16)(cid:31)(cid:31)(cid:3)(cid:8)(cid:39)(cid:42)(cid:39)(cid:11)(cid:11)(cid:58)(cid:19)(cid:59)(cid:3)(cid:17)(cid:18)(cid:19)(cid:3)(cid:62)(cid:3)(cid:10)(cid:58)(cid:35)(cid:59)(cid:58)(cid:58)(cid:38)(cid:59)(cid:58)(cid:21)(cid:59)(cid:3)(cid:41)(cid:35)(cid:3)(cid:30)(cid:45)(cid:31)(cid:3)(cid:21)(cid:23)(cid:21)(cid:42)
`
`(cid:22)(cid:45)(cid:31)(cid:3)(cid:37)(cid:45)(cid:17)(cid:18)(cid:46)(cid:31)(cid:47)(cid:3)(cid:35)(cid:41)(cid:32)(cid:3)(cid:30)(cid:32)(cid:17)(cid:18)(cid:47)(cid:36)(cid:30)(cid:36)(cid:41)(cid:18)(cid:17)(cid:49)(cid:3)(cid:48)(cid:32)(cid:41)(cid:46)(cid:32)(cid:17)(cid:33)(cid:3)(cid:35)(cid:41)(cid:32)(cid:3)(cid:37)(cid:41)(cid:50)(cid:31)(cid:32)(cid:31)(cid:19)(cid:3)(cid:57)(cid:54)(cid:47)(cid:36)(cid:18)(cid:31)(cid:47)(cid:47)(cid:3)(cid:33)(cid:31)(cid:30)(cid:45)(cid:41)(cid:19)(cid:3)(cid:48)(cid:17)(cid:30)(cid:31)(cid:18)(cid:30)(cid:47)(cid:3)(cid:17)(cid:48)(cid:48)(cid:49)(cid:55)(cid:3)(cid:30)(cid:41)(cid:3)(cid:17)(cid:18)(cid:55)(cid:3)(cid:37)(cid:41)(cid:50)(cid:31)(cid:32)(cid:31)(cid:19)(cid:3)(cid:57)(cid:54)(cid:47)(cid:36)(cid:18)(cid:31)(cid:47)(cid:47)(cid:3)(cid:33)(cid:31)(cid:30)(cid:45)(cid:41)(cid:19)
`(cid:48)(cid:17)(cid:30)(cid:31)(cid:18)(cid:30)(cid:3)(cid:36)(cid:47)(cid:47)(cid:54)(cid:31)(cid:19)(cid:3)(cid:57)(cid:31)(cid:35)(cid:41)(cid:32)(cid:31)(cid:52)(cid:3)(cid:41)(cid:18)(cid:52)(cid:3)(cid:41)(cid:32)(cid:3)(cid:17)(cid:35)(cid:30)(cid:31)(cid:32)(cid:3)(cid:16)(cid:31)(cid:48)(cid:30)(cid:31)(cid:33)(cid:57)(cid:31)(cid:32)(cid:3)(cid:12)(cid:10)(cid:52)(cid:3)(cid:39)(cid:11)(cid:12)(cid:39)(cid:3)(cid:58)(cid:47)(cid:54)(cid:57)(cid:48)(cid:17)(cid:32)(cid:30)(cid:3)(cid:26)(cid:59)(cid:42)
`
`FOR FURTHER INFORMATION CONTACT: Michael P. Tierney, Lead Administrative Patent Judge, Sally G. Lane,
`Administrative Patent Judge, Sally C. Medley, Administrative Patent Judge, Robert A. Clarke, Administrative Patent Judge,
`and Joni Y. Chang, Administrative Patent Judge, Board of Patent Appeals and Interferences, by telephone at (571) 272-9797.
`
`SUPPLEMENTARY INFORMATION: Executive Summary: Purpose: On September 16, 2011, the AIA was enacted into law
`(Pub. L. 112-29, 125 Stat. 284 (2011)). The purpose of the AIA and this final rule is to establish a more efficient and streamlined
`patent system that will improve patent quality and limit unnecessary and counterproductive litigation costs. The preamble of
`this notice sets forth in detail the procedures by which the Board will conduct inter partes review proceedings, post-grant review
`proceedings, and transitional post-grant review proceedings for covered business method patents. The USPTO is engaged in
`a transparent process to create a timely, cost-effective alternative to litigation. Moreover, the rules are designed to ensure the
`integrity of the trial procedures. See 35 U.S.C. 316(b), as amended, and 35 U.S.C. 326(b). This final rule would provide a set of
`rules relating to Board trial practice for inter partes review proceedings, post-grant review proceedings, and transitional post-
`grant review proceedings for covered business method patents.
`
` © 2013 Thomson Reuters. No claim to original U.S. Government Works.
`
`(cid:40)(cid:91)(cid:17)(cid:3)(cid:20)(cid:19)(cid:20)(cid:19)(cid:3)(cid:19)(cid:20)(cid:18)(cid:28)(cid:21)
`
`Callidus Ex. 1010
`CBM2013-00053
`(Callidus v. Versata)
`1
`
`

`
`Changes to Implement Inter Partes Review Proceedings,..., 77 FR 48680-01
`
`Summary of Major Provisions: Consistent with section 6 of the AIA, this final rule sets forth for inter partes review: (1) The
`requirements for a petition to institute an inter partes review of a patent; (2) the standards for showing of sufficient grounds to
`institute an inter partes review; (3) the standards for instituting an inter partes review; (4) the procedures for conducting an inter
`partes review that permits a patent owner response, a submission of written comments, and an oral hearing; (5) the standards
`and procedures for discovery and for the patent owner to move to amend the patent; and (6) the time periods for completing
`the review (subpart B of 37 CFR part 42).
`
`Consistent with section 6 of the AIA, this final rule sets forth for post-grant review: (1) The requirements for a petition to
`institute a post-grant review of a patent; (2) the standards for showing of sufficient grounds to institute a post-grant review;
`(3) the standards for instituting a post-grant review; (4) the procedures for conducting a post-grant review that permits a patent
`owner response, a submission of written comments, and an oral hearing; (5) the standards and procedures for discovery and for
`the patent owner to move to amend the patent; and (6) the time periods for completing the review (subpart C of 37 CFR part 42).
`
`Consistent with sections 6 and 18 of the AIA, this final rule further sets forth for transitional post-grant review of covered
`business method patents: (1) The requirements for a petition to institute a post-grant review of a covered business method patent;
`(2) the standards for showing of sufficient grounds to institute a post-grant review of a covered business method patent; (3)
`the standards for instituting a post-grant review of a covered business method patent; (4) the procedures for conducting a post-
`grant review that permits a patent owner response, a submission of written comments, and an oral hearing; (5) the standards
`and procedures for discovery and for the patent owner to move to amend the patent; and (6) the time periods for completing
`the review (subpart D of 37 CFR part 42).
`
`Costs and Benefits: This rulemaking is not economically significant, but is significant, under Executive Order 12866 (Sept. 30,
`1993), as amended by Executive Order 13258 (Feb. 26, 2002) and Executive Order 13422 (Jan. 18, 2007).
`
`Background: To implement sections 6 and 18 of the AIA, the Office published the following notices of proposed rulemaking:
`(1) Rules of Practice for Trials before the Patent Trial and Appeal Board and Judicial Review of Patent Trial and Appeal Board
`Decisions, 77 FR 6879 (Feb. 9, 2012), to provide a consolidated set of rules relating to Board trial practice for inter partes review,
`post-grant review, derivation proceedings, the transitional program for covered business method patents, and judicial review of
`Board decisions by adding new parts 42 and 90 including a new subpart A to title 37 of the Code of Federal Regulations (RIN
`0651-AC70); (2) Changes to Implement Inter Partes Review Proceedings, 77 FR 7041 (Feb. 10, 2012), to provide rules specific
`to inter partes review by adding a new subpart B to 37 CFR part 42 (RIN 0651-AC71); (3) Changes to Implement Post-Grant
`Review Proceedings, 77 FR 7060 (Feb. 10, 2012), to provide rules specific to post-grant review by adding a new subpart C to 37
`CFR part 42 (RIN 0651-AC72); (4) Changes to Implement Transitional Program for Covered Business Method Patents, 77 FR
`7080 (Feb. 10, 2012), to provide rules specific to the transitional program for covered business method patents by adding a new
`subpart D to 37 CFR part 42 (RIN 0651-AC73); (5) Transitional Program for Covered Business Method Patents—Definition of
`Technological Invention, 77 FR 7095 (Feb. 10, 2012), to add a new rule that sets forth the definition of technological invention
`for determining whether a patent is for a technological invention solely for purposes of the transitional program for covered
`business method patents (RIN 0651-AC75); and (6) *48681 Changes to Implement Derivation Proceedings, 77 FR 7028 (Feb.
`10, 2012), to provide rules specific to derivation proceedings by adding a new subpart E to 37 CFR part 42 (RIN 0651-AC74).
`
`This final rule adopts the proposed rules, with modifications, set forth in the three notices of proposed rulemaking: Inter partes
`review proceedings (77 FR 7041), post-grant review proceedings (77 FR 7060), and transitional post-grant review proceedings
`for covered business method patents (77 FR 7080), except for definitions of the terms “covered business method patent” and
`“technological invention” which are set forth in a separate final rule (RIN 0651-AC75). The definition of the term “technological
`invention” was proposed in another notice of proposed rulemaking (77 FR 7095).
`
`In a separate final rule, the Office adopts the proposed rules, with modifications, set forth in Rules of Practice for Trials before
`the Patent Trial and Appeal Board and Judicial Review of Patent Trial and Appeal Board Decisions, 77 FR 6879 (Feb. 9,
`2012), to provide a consolidated set of rules relating to Board trial practice for inter partes review, post-grant review, derivation
`
` © 2013 Thomson Reuters. No claim to original U.S. Government Works.
`
`2
`
`(cid:40)(cid:91)(cid:17)(cid:3)(cid:20)(cid:19)(cid:20)(cid:19)(cid:3)(cid:19)(cid:21)(cid:18)(cid:28)(cid:21)
`
`

`
`Changes to Implement Inter Partes Review Proceedings,..., 77 FR 48680-01
`
`proceedings, and the transitional program for covered business method patents, and judicial review of Board decisions by adding
`new parts 42 and 90 including a new subpart A to title 37 of the Code of Federal Regulations (RIN 0651-AC70).
`
`In a third final rule, the Office adopts the proposed definitions of a “covered business method patent” and “technological
`invention” set forth in the following notices of proposed rulemaking: Changes to Implement Transitional Program for Covered
`Business Method Patents, 77 FR 7080 (Feb. 10, 2012); and Transitional Program for Covered Business Method Patents—
`Definition of Technological Invention, 77 FR 7095 (Feb. 10, 2012).
`
`Additionally, the Office published a Patent Trial Practice Guide for the proposed rules in the Federal Register to provide the
`public an opportunity to comment. Practice Guide for Proposed Trial Rules, 77 FR 6868 (Feb. 9, 2012) (Request for Comments)
`(hereafter “Practice Guide for Proposed Trial Rules” or “Office Patent Trial Practice Guide”). The Office envisions publishing
`a revised Patent Trial Practice Guide for the final rules. The Office also hosted a series of public educational roadshows, across
`the country, regarding the proposed rules for the implementation of the AIA.
`
`In response to the notices of proposed rulemaking and the Practice Guide notice, the Office received 251 submissions of written
`comments from intellectual property organizations, businesses, law firms, patent practitioners, and others, including a United
`States senator who was a principal author of section 18 of the AIA. The comments provided support for, opposition to, and
`diverse recommendations on the proposed rules. The Office appreciates the thoughtful comments, and has considered and
`analyzed the comments thoroughly. The Office's responses to the comments are provided in the 124 separate responses based
`on the topics raised in the 251 comments in the Response to Comments section infra.
`
`In light of the comments, the Office has made modifications to the proposed rules to provide clarity and to balance the
`interests of the public, patent owners, patent challengers, and other interested parties, in light of the statutory requirements
`and considerations, such as the effect of the regulations on the economy, the integrity of the patent system, the efficient
`administration of the Office, and the ability of the Office to complete the proceedings timely.
`
`Differences between the Final Rule and the Proposed Rule
`The major differences between the rules as adopted in this final rule and the proposed rules include:
`
`The final rule clarifies that the one-year period for completing an inter partes or post-grant review may be adjusted by the Board
`in the case of joinder (§§ 42.100(c) and 42.200(c)).
`
`The final rule clarifies that a petitioner must certify that it is not estopped from requesting an inter partes or post-grant review
`for the challenged claims, as opposed to the patent (§§ 42.104(a) and 42.204(a)).
`
`The final rule eliminates the requirement that the petitioner must contact the Board to discuss alternate modes of service when
`the petitioner cannot effect service of the petition for inter partes, post-grant and covered business method patent reviews (§§
`42.105(b) and 42.205(b)). Instead, the final rule further clarifies that (1) upon agreement of the parties, service may be made
`electronically, (2) personal service is not required, and (3) service may be by EXPRESS MAIL[supreg] or by means at least as
`fast and reliable as EXPRESS MAIL[supreg] (§§ 42.105(b) and 42.205(b)).
`
`The time period for filing a patent owner preliminary response for inter partes, post-grant and covered business method patent
`reviews is extended from two months to three months (§§ 42.107(b) and 42.207(b)). Likewise, the default time period for filing
`a patent owner response is extended from two months to three months (§§ 42.120(b) and 42.220(b)).
`
`With respect to motions to amend challenged claims, the final rule clarifies that a patent owner may file one motion to amend
`but only after conferring with the Board, and it must be filed no later than the filing of a patent owner response for inter partes,
`post-grant and covered business method patent reviews (§§ 42.121(a) and 42.221(a)). The final rule provides that an additional
`motion to amend may be authorized during inter partes, post-grant and covered business method patent reviews when there is a
`(cid:40)(cid:91)(cid:17)(cid:3)(cid:20)(cid:19)(cid:20)(cid:19)(cid:3)(cid:19)(cid:22)(cid:18)(cid:28)(cid:21)
`
` © 2013 Thomson Reuters. No claim to original U.S. Government Works.
`
`3
`
`

`
`Changes to Implement Inter Partes Review Proceedings,..., 77 FR 48680-01
`
`good cause showing or a settlement (§§ 42.121(c) and 42.221(c)). In addition, the final rule clarifies that a reasonable number
`of substitute claims is presumed to be one substitute claim per challenged claim, which may be rebutted by a demonstration of
`need. The final rule further clarifies that a motion to amend may be denied where: (1) The amendment does not respond to a
`ground of unpatentability, or (2) the amendment seeks to enlarge the scope of the claims of the patent or introduce new subject
`matter (§§ 42.121(a) and 42.221(a)). The final rule also clarifies that an additional motion to amend may be authorized when
`there is a good cause showing or a joint request of the petitioner and the patent owner to materially advance a settlement (§§
`42.121(c) and 42.221(c)). Moreover, the final rule provides that in determining whether to authorize such an additional motion
`to amend, the Board will consider whether a petitioner has submitted supplemental information after the time period set for
`filing a motion to amend in § 42.121(a)(1) or 42.221(a)(1).
`
`For joinder, the final rule clarifies that a joinder may be requested by a patent owner or petitioner during inter partes, post-grant
`or covered business method patent reviews, but provides that such a request must be filed, as a motion, no later than one month
`after institution of any review for which joinder is requested (§§ 42.122(b) and 42.222(b)). With respect to inter partes reviews,
`the time period set forth in § 42.101(b) does not apply when the petition is accompanied by a request for joinder (§ 42.122).
`
`As to filing a supplemental information during inter partes, post-grant and covered business method patent reviews, the final
`rule clarifies that a request for the authorization to file a motion to submit supplement information is made within one month of
`the date the trial is instituted, and the information must be relevant to a claim *48682 for which the trial has been instituted (§§
`42.123(a) and 42.223(a)). A petitioner who seeks to submit late information, or information that is not relevant to a claim under
`review, will be required to show why the information reasonably could not have been earlier obtained, and that consideration
`of the information would be in the interests-of-justice (§§ 42.123(b)-(c), 42.223(b)-(c)).
`
`For covered business method patent reviews, the final rule defines the term “charged with infringement” to mean “a real and
`substantial controversy regarding infringement of a covered business method patent such that the petitioner would have standing
`to bring a declaratory judgment action in Federal court” (§ 42.302(a)). In addition, the final rule clarifies that a petitioner may
`challenge a claim based on the specific statutory grounds permitted under 35 U.S.C. 282(b)(2) or (3), except as modified by
`section 18(a)(1)(C) of the AIA (§ 42.304(b)).
`
`Discussion of Relevant Provisions of the AIA
`
`Inter Partes Review
`Section 6 of the AIA is entitled “POST-GRANT REVIEW PROCEEDINGS” (Pub. L. 112-29, 125 Stat. 284, 299-305 (2011)).
`Section 6(a) of the AIA, entitled “INTER PARTES REVIEW,” amends chapter 31 of title 35, United States Code, also entitled
`“INTER PARTES REVIEW.” In particular, section 6(a) of the AIA amends 35 U.S.C. 311-318 and adds 35 U.S.C. 319.
`
`Section 6(a) of the AIA amends 35 U.S.C. 311, entitled “Inter partes review.” 35 U.S.C. 311(a), as amended, provides that,
`subject to the provisions of chapter 31 of title 35, United States Code, a person who is not the owner of a patent may file a petition
`with the Office to institute an inter partes review of the patent. As amended, 35 U.S.C. 311(a) also provides that the Director
`will establish, by regulation, fees to be paid by the person requesting the review, in such amounts as the Director determines to
`be reasonable, considering the aggregate costs of the review. 35 U.S.C. 311(b), as amended, provides that a petitioner in an inter
`partes review may request to cancel as unpatentable one or more claims of a patent only on a ground that could be raised under
`35 U.S.C. 102 or 103 and only on the basis of prior art consisting of patents or printed publications. As amended, 35 U.S.C.
`311(c) provides that a petition for inter partes review may be filed after the later of either: (1) The date that is nine months after
`the grant of a patent or issuance of a reissue of a patent; or (2) if a post-grant review is instituted under chapter 32 of title 35,
`United States Code, the date of the termination of that post-grant review.
`
`The grounds for seeking an inter partes review will be limited compared with post-grant review. The grounds for seeking inter
`partes review are limited to issues raised under 35 U.S.C. 102 or 103 and only on the basis of prior art consisting of patents or
`printed publications. In contrast, the grounds for seeking post-grant review include any ground that could be raised under 35
`
` © 2013 Thomson Reuters. No claim to original U.S. Government Works.
`
`4
`
`(cid:40)(cid:91)(cid:17)(cid:3)(cid:20)(cid:19)(cid:20)(cid:19)(cid:3)(cid:19)(cid:23)(cid:18)(cid:28)(cid:21)
`
`

`
`Changes to Implement Inter Partes Review Proceedings,..., 77 FR 48680-01
`
`U.S.C. 282(b)(2) or (3). Such grounds for post-grant review include grounds that could be raised under 35 U.S.C. 102 or 103
`including those based on prior art consisting of patents or printed publications. Other grounds available for post-grant review
`include 35 U.S.C. 101 and 112, with the exception of compliance with the best mode requirement.
`
`Section 6(a) of the AIA amends 35 U.S.C. 312, entitled “Petitions.” 35 U.S.C. 312(a), as amended, provides that a petition filed
`under 35 U.S.C. 311, as amended, may be considered only if certain conditions are met. First, the petition must be accompanied
`by payment of the fee established by the Director under 35 U.S.C. 311, as amended. Second, the petition must identify all
`real parties in interest. Third, the petition must identify, in writing and with particularity, each claim challenged, the grounds
`on which the challenge to each claim is based, and the evidence that supports the grounds for the challenge to each claim,
`including: (A) Copies of patents and printed publications that the petitioner relies upon in support of the petition and (B)
`affidavits or declarations of supporting evidence and opinions, if the petitioner relies on expert opinions. Fourth, the petition
`must provide such other information as the Director may require by regulation. Fifth, the petitioner must provide copies of any of
`the documents required under paragraphs (2), (3), and (4) of 35 U.S.C. 312(a), as amended, to the patent owner or, if applicable,
`the designated representative of the patent owner. 35 U.S.C. 312(b), as amended, provides that, as soon as practicable after the
`receipt of a petition under 35 U.S.C. 311, as amended, the Director will make the petition available to the public.
`
`Section 6(a) of the AIA amends 35 U.S.C. 313, entitled “Preliminary response to petition.” 35 U.S.C. 313, as amended, provides
`that, if an inter partes review petition is filed under 35 U.S.C. 311, as amended, within a time period set by the Director, the
`patent owner has the right to file a preliminary response to the petition that sets forth reasons why no inter partes review should
`be instituted based upon the failure of the petition to meet any requirement of chapter 31 of title 35, United States Code.
`
`Section 6(a) of the AIA amends 35 U.S.C. 314, entitled “Institution of inter partes review.” 35 U.S.C. 314(a), as amended,
`provides that the Director may not authorize an inter partes review to be instituted, unless the Director determines that the
`information presented in the petition filed under 35 U.S.C. 311, as amended, and any response filed under 35 U.S.C. 313, as
`amended, shows that there is a reasonable likelihood that the petitioner would prevail with respect to at least one of the claims
`challenged in the petition. 35 U.S.C. 314(