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UNITED STATES PATENT AND TRADEMARK OFFICE
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`
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`
`
`
`
`SAMSUNG ELECTRONICS AMERICA, INC. and
`SAMSUNG ELECTRONICS CO., LTD.,
`Petitioner
`
`v.
`
`SMARTFLASH LLC,
`Patent Owner
`
`
`
`
`
`
`
`
`Case CBM2014-00192
`Patent 8,033,458
`
`
`
`
`
`
`
`
`
`
`
`PETITIONER’S REPLY IN SUPPORT OF
`MOTION TO EXCLUDE EVIDENCE UNDER 37 C.F.R. § 42.64(c)
`
`
`
`
`
`

`
`
`
`TABLE OF CONTENTS
`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`
`INTRODUCTION ......................................................................................... 1
`I.
`II. ARGUMENT .................................................................................................. 1
`A. Contrary to PO’s Opposition, the Subject Deposition Excerpts
`Lack Proper Foundation .............................................................................. 2
`B. Contrary to PO’s Opposition, the Subject Deposition Excerpts Are
`Outside the Scope ......................................................................................... 5
`C. Contrary to PO’s Opposition, the Subject Deposition Excerpts Are
`Irrelevant ....................................................................................................... 7
`III. CONCLUSION ............................................................................................ 10
`
`
`
`
`i
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`EXHIBIT LIST
`
`SAMSUNG-1001 U.S. Patent No. 8,033,458 to Hulst et al. (“the ‘458 Patent” or
`“’458”)
`
`SAMSUNG-1002 Excerpts from the Prosecution History of the ‘458 Patent (“the
`Prosecution History”)
`
`SAMSUNG-1003 Declaration of Dr. Jeffrey Bloom re the ‘458 Patent (“Bloom”)
`
`SAMSUNG-1004 U.S. Patent No. 5,530,235 (“Stefik ‘235” or “Stefik”)
`
`SAMSUNG-1005 U.S. Patent No. 5,629,980 (“Stefik ‘980”) (incorporated by
`5,530,235)
`
`SAMSUNG-1006 PCT Publication No. WO 00/08909 (“Gruse”)
`
`SAMSUNG-1007 PCT Application PCT/GB00/04110 (“the ‘110 Appln.” or
`“‘110”)
`
`SAMSUNG-1008 United Kingdom Patent Application GB9925227.2 (“the ‘227.2
`Appln.” or “‘227.2”)
`
`SAMSUNG-1009 Transitional Program for Covered Business Method Pa-tents—
`Definitions of Covered Business Method Patent and
`Technological Invention, 77 Fed. Reg. 157 (Aug. 14, 2012)
`
`SAMSUNG-1010 A Guide to the Legislative History of the America Invents Act;
`Part II of II, 21 Fed. Cir. Bar J. No. 4
`
`SAMSUNG-1011 Interim Guidance for Determining Subject Matter Eligibility for
`Process Claims in View of Bilski v. Kappos (Jul. 27, 2010)
`
`SAMSUNG-1012 Apple Inc. v. Sightsound Technologies, LLC, CBM2013-00019
`Paper No. 17 (entered Oct. 8, 2013) at 11-13
`
`ii
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`SAMSUNG-1013 Volusion, Inc. v. Versata Software, Inc. and Versata Devel-
`opment Group, Inc., CBM2013-00017 Paper No. 8 (entered
`Oct. 24, 2013)
`
`SAMSUNG-1014 Salesforce.com, Inc. v. VirtualAgility, Inc., CBM2013-00024
`Paper No. 16 (entered Nov. 19, 2013)
`
`SAMSUNG-1015 U.S. Patent No. 8,336,772 (“the ‘772 Patent” or “‘772”)
`
`SAMSUNG-1016 U.S. Patent No. 8,118,221 (“the ‘458 Patent” or “‘458)
`
`SAMSUNG-1017 U.S. Patent No. 8,061,598 (“the ‘598 Patent” or “‘598”)
`
`SAMSUNG-1018 RESERVED
`
`SAMSUNG-1019 U.S. Patent No. 7,942,317 (“the ‘317 Patent” or “‘317”)
`
`SAMSUNG-1020 U.S. Patent Application No. 12/014,558 (“the ‘558 Appln.” or
`“’558”)
`
`SAMSUNG-1021 U.S. Patent No. 7,334,720 (“the ‘720 Patent” or “‘720”)
`
`SAMSUNG-1022 RESERVED
`
`SAMSUNG-1023 RESERVED
`
`SAMSUNG-1024 U.S. Patent Application No. 12/943,847 (“the ‘847 Appln.” or
`“‘847”)
`
`SAMSUNG-1025 RESERVED
`
`SAMSUNG-1026 RESERVED
`
`SAMSUNG-1027 RESERVED
`
`SAMSUNG-1028 Weinstein “MasterCard Plans Point-of-Sale Product for
`Merchants Leery of Bank Cards”
`
`iii
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`SAMSUNG-1029 Mayo Collaborative Serv v. Prometheus Labs., Inc., 132 S. Ct.
`1289 (2012)
`
`SAMSUNG-1030 Gottschalk v. Benson, 409 U.S. 63 (1972)
`
`SAMSUNG-1031 Cybersource Corp. v. Retail Decisions, Inc., 654 F.3d 1366
`(Fed. Cir. 2011)
`
`SAMSUNG-1032 Bilski v. Kappos, 130 S. Ct. 3218 (2010)
`
`SAMSUNG-1033 Alice Corp. v. CLS Bank International,134 S.Ct. 2347 (2014)
`
`SAMSUNG-1034 Bancorp Serv., L.L.C. v. Sun Life Assur. Co. (U.S.) 687 F.3d
`1266 (Fed. Cir. 2012)
`
`SAMSUNG-1035 Dealertrack, Inc. v. Huber, 674 F.3d 1323 (Fed. Cir. 2012)
`
`SAMSUNG-1036 SiRF Tech., Inc. v. Int’l Trade Comm’n, 601 F.3d 1319 (Fed.
`Cir. 2010)
`
`SAMSUNG-1037 In re Bilski, 545 F.3d 943, 88 U.S.P.Q.2d 1385 (Fed. Cir. 2008)
`
`SAMSUNG-1038 Accenture Global Services, GmbH v. Guidewire Software, Inc.,
`728 F.3d 1336 (Fed. Cir. 2013)
`
`SAMSUNG-1039 Keith, Michael C., The Radio Station Broadcast, Satellite and
`Internet, Eighth Edition, 2009
`
`SAMSUNG-1040 Affidavit in Support of Petitioner's Motion for Pro Hac Vice
`Admission of Ralph A. Phillips
`
`
`SAMSUNG-1041 Ariosa Diagnostics, Inc. v. Sequenom, Inc., 14-1144, slip op.
`(Fed. Cir. June 12, 2015)
`
`SAMSUNG-1042 Versata Development Group, Inc. v. SAP America, Inc. et al.,
`14-1194, slip op. (Fed. Cir. July 9, 2015)
`
`iv
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`SAMSUNG-1043 Petitioner’s Response to Patent Owner’s Objections and Notice
`of Service of Supplemental Evidence Under 37 CFR §
`42.64(b)(2), Served on April 29, 2015
`
`SAMSUNG-1044 LG Electronics v. Advanced Micro Devices, IPR2015-00324,
`Paper 17
`
`SAMSUNG-1045 CLS Bank Int'l v. Alice Corp., 717 F.3d 1269, 1304–05 (Fed.
`Cir. 2013) (en banc)
`
`SAMSUNG-1046 Ultramercial, Inc. v. Hulu, LLC, 722 F.3d 1335, 1339 (Fed.
`Cir. 2013)
`
`SAMSUNG-1047 Interthix, Inc. v. Corelogic Solutions, LLC, CBM2012-00007,
`Paper 58
`
`SAMSUNG-1048 Apple Inc. v. Smartflash LLC, CBM2014-00102, Paper 8
`
`SAMSUNG-1049 Vibrant Media v. General Electric Company, IPR2013-00172,
`Paper 50
`
`SAMSUNG-1050 SK Innovation Co. LTD. v. Celgard, LLC, IPR2014-00680,
`Paper 57
`
`SAMSUNG-1051 Declaration of Ms. Patricia Hoskins
`
`SAMSUNG-1052 Apple Inc. v. Smartflash LLC, CBM2014-00106, Paper 52
`
`
`
`
`
`v
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`
`I.
`
`INTRODUCTION
`
`Pursuant to 37 C.F.R. § 42.64 and the Federal Rules of Evidence, Samsung
`
`Electronics America, Inc. and Samsung Electronics., Ltd. (“Petitioner” or
`
`“Samsung”) moved to exclude portions of Dr. Bloom’s deposition transcript. See
`
`Papers 37/38. Patent Owner (“PO” or “Smartflash”) relied on these portions in
`
`Patent Owner’s Response. See Papers 22/23. In opposing Samsung’s Motion to
`
`Exclude, Smartflash continues to allege that Dr. Bloom is biased because
`
`“similarity between his employer’s products and the claims of the patent would
`
`provide Dr. Bloom with a motivation to be biased against the claims being found to
`
`be statutory subject matter under 35 U.S.C. § 101.” Paper 40 (citing Papers 22/23,
`
`at 6). Yet, Smartflash has failed show that Dr. Bloom was aware of any similarity
`
`(even assuming that such similarity exists) between his employer’s products and
`
`the subject patent at the time that Dr. Bloom rendered his declaration, a necessary
`
`condition for the alleged bias. See Paper 40. Thus, Smartflash has not established
`
`the alleged bias. See Paper 40. According, the subject portions from the
`
`deposition transcript should be excluded, as requested by Samsung.
`
`II. ARGUMENT
`Samsung objected to portions of Exhibits 2056 and 2057 in its Notice of
`
`Objections served on June 8, 2015 as well as during the deposition on May 20,
`
`2015. Smartflash relied on Exhibits 2056 and 2057 in its Response to the Petition
`
`1
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`(Papers 22/23) filed on June 1, 20151. As requested by Samsung and despite the
`
`opposition from Smartflash, the objected-to portions of Exhibits 2056 and 2057
`
`should be excluded from this proceeding as inadmissible under the Federal Rules
`
`of Evidence.
`
`A. Contrary to PO’s Opposition, the Subject Deposition Excerpts
`Lack Proper Foundation
`
`During deposition and over Samsung’s objection, Smartflash attempted to
`
`solicit testimonies from Dr. Bloom as to whether “the SiriusXM Internet Radio
`
`product that allows off-line playback [is] a subscription-based product.” See
`
`Exhibit 2057, at 193:17-194:8 and 195:5-16. Samsung moves to exclude these
`
`deposition excerpts under FRE 701 and 702. See Papers 37/38.
`
`In opposing Samsung’s motion, Smartflash concedes that Dr. Bloom “has
`
`not been advanced as an expert with regard to subscription-based business practice
`
`of a third-party company.” See Paper 40 at 3. Yet, Smartflash insists that “Dr.
`
`Bloom is currently employed by such ‘third-party company’ and its ‘subscription-
`
`                                                            
`1Smartflash also relied on portions of Exhibit 2057 to which Samsung objected in
`
`its Notice of Objections served on June 8, 2015 as well as during the deposition on
`
`May 20, 2015. The Board ordered such portions of Exhibit 2057 under seal. See
`
`Paper 29. 
`
`2
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`based business practices’ are both within Dr. Bloom’s job responsibilities and
`
`relevant to the patent claims.” Id.
`
`The insistence is unfounded. Consistent with Smartflash’s concession (that
`
`Dr. Bloom has not been advanced as not been advanced as an expert with regard to
`
`subscription-based business practice of a third-party company), Dr. Bloom also
`
`testified under oath he does not know potentially relevant details of his employer’s
`
`business practice.
`
`Q. Does SiriusXM have a lot of subscribers?
`
`A. I don't know how many they have.
`
`Q. More than a million?
`
`A. I don't know.
`
`Exhibit 2056: 174:19-22.2
`
`While insisting that “all of the factual foundation necessary for Smartflash’s
`
`cross examination inquiry into Dr. Bloom’s knowledge of [a third-pary company’s]
`
`product is set forth in his direct testimony in his declaration,” Smartflash conflates
`
`                                                            
`2 Because of Dr. Bloom’s apparent lack of personal knowledge of such
`
`subscription-based business practice of the third-party company, treating the
`
`content of the subject deposition excerpts as lay witness opinion would be equally
`
`improper. 
`
`3
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`an “[i]nquiry into how the third-party company’s products handle condidtional
`
`access” with the subscription-based business practice of the third party. Paper 40
`
`at 3. Without more, Smartflash then asserts that it “is entitled to have the Board
`
`consider Dr. Bloom’s responses to the inquiry and how any similarity between Dr.
`
`Bloom’s employer’s products and the claims of the patent would provide Dr.
`
`Bloom with a motivation to be biased against the claims being found to be
`
`statutory subject matter under 35 U.S.C. § 101.” Id.
`
`Smartflash’s analysis is flawed at least because Smartflash failed to provide
`
`any foundation for the entire line of questioning, a line of questioning that the
`
`PTAB previously struck down in its consideration of the list of excluded motions3.
`
`Aside from Dr. Bloom’s apparent lack of knowledge about the subscription-based
`
`business practice of a third party company, Dr. Bloom also testified under oath that
`
`he did not consider his employer’s products in relationship to the patent claims at
`
`issue.
`
`Q. In preparing your report, did you consider whether [a third-party
` company]'s system that enables limited use of paid for and/or
` licensed content is covered by any of the claims for which you
`                                                            
`3 See Paper 13 (dismissing Smartflash’s contention that “an accused infringer who
`
`pleads in the alternative that the challenged claims are unpatentable under § 101, a
`
`question of law, is taking an inconsistent position with its non-infringement
`
`position.”).
`
`4
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`
` provided an opinion?
`
`A. No, I didn't consider that.
`
`Q. Is there a reason that you didn't?
`
`A. It didn't occur to me.
`
`Exhibit 2056,174:23-175:5.
`
`In other words, Dr. Bloom did not perceive any alleged similarity between a
`
`third-party company’s product and the patent claims at issue. Therefore, even if a
`
`third-party company’s products are relevant to the patent claims at issue, an inquiry
`
`to which Smartflash never established a foundation, Smartflash failed to impute
`
`knowledge of the alleged infringement to Dr. Bloom at the time of his rendering of
`
`his declaration, a necessary condition for the alleged bias to exist. If mere
`
`employment could suffice for such imputation, then all experts hired by one side
`
`would have a motivation to be biased against the other side being found right.
`
`That outcome would disqualify all experts and put the Board in a precarious
`
`situation.
`
`Because Smartflash sought to have Dr. Bloom opine on matters without
`
`laying proper factual support, such portions of testimony should thus be excluded
`
`under Rules 702 and 701.
`
`B. Contrary to PO’s Opposition, the Subject Deposition Excerpts
`Are Outside the Scope
`
`5
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`During deposition and over Samsung’s objection4, Smartflash solicited
`
`testimony from Dr. Bloom that is outside the scope of the direct examination, and
`
`Smartflash failed to demonstrate the testimony relates to matters affecting the
`
`credibility of Dr. Bloom. See Exhibit 2056 at 179:1-20, and in Exhibit 2057 at
`
`193:17-194:8 and 195:5-16 (inquiring whether a third-party company unrelated to
`
`the instant proceeding “has a product that enables paid for and/or licensed content
`
`to be stored locally and played back later in a disconnected fashion.”). Samsung
`
`moves to exclude the subject deposition excerpts under FRE 611(b). See Papers
`
`37/38. Smartflash opposes by asserting that the issue goes to “a matter affecting
`
`the witness’s credibility” because “similarity between his employer’s products and
`
`the claims of the patent would provide Dr. Bloom with a motivation to be biased
`
`against the claims being found to be statutory subject matter under 35 U.S.C. §
`
`101.” See Paper 40 at 4. As discussed in Section IIA, even if a third-party
`
`company unrelated to the instant CBM proceeding may offer products within the
`
`broad industry defined as consumer electronics, such an insinuaed applicability,
`
`                                                            
`4 Contrast with Apple Inc. v Smartflash LLC CBM2014-00103 Paper 52 at 28-30
`
`(discussing that “many of the questions and answers that Patent Owner now seeks
`
`to exclude [for exceeding the scope of the direct testimony] were not objected to
`
`during the deposition….”).
`
`6
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`even if true5, would only suggest that the third-party company possibly has “a
`
`motivation to be biased.” Id. Smartflash has not demonstrated that such a possible
`
`motivation of the third-party company could be imputed to Dr. Bloom. Therefore,
`
`Dr. Bloom’s testimony, as sought by Smartflash, does not relate to matters that
`
`affect the credibility—including any motivation to be biased—of Dr. Bloom.
`
`Because Smartflash solicited testimony from Dr. Bloom is both outside the
`
`scope of the direct examination, and has no legitimate bearing on the issue of Dr.
`
`Bloom’s credibility, such testimony portions should be excluded. See Rule 611(b).
`
`C. Contrary to PO’s Opposition, the Subject Deposition Excerpts
`Are Irrelevant
`
`During cross-examination and over Samsung’s objection, Smartflash
`
`solicited testimony that is irrelevant to the salient issue of patent validity and that
`
`does not have legitimate bearing on the question of Dr. Bloom’s credibility. See
`
`Exhibit 2057, 193:17-194:8; 195:5-16. Smartflash repeatedly asserted that
`
`“similarity between his employer’s products and the claims of the patent would
`
`                                                            
`5 To the extent that Patent Owner requested discovery into alleged evidence of
`
`non-infringement and existence of non-infringing alternatives, the Board refused to
`
`authorize Patent Owner to file such motions to compel discovery. See generally,
`
`Patent Owner List of Proposed Motions, Paper 12; Order-Conduct of the
`
`Proceedings, Paper 13.
`
`7
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`provide Dr. Bloom with a bias against the claims.” See Paper 40 at 6; Papers
`
`22/23. This argument is unsustainable, as it is unproven and illogical.
`
`Substantively, while Dr. Bloom is employed by a third-party company, there
`
`is no evidence that Dr. Bloom perceived similarities between his employer’s
`
`products and the claims of the patent prior to his deposition. That is, whether
`
`alleged similarities existed or not, an allegation of bias would require a showing
`
`that Dr. Bloom did indeed perceive such similarities when rendering the opinions
`
`offered in the instant case. Smartflash had the opportunity to question Dr. Bloom
`
`on this point during his deposition, yet the record is without such evidence6.
`
`Logically, this argument is equally flawed. Without more, Smartflash seeks
`
`to establish bias based on mere affiliation of an expert with an operating company.
`
`                                                            
`6 Dr. Bloom did not perceive the insinuated infringement. See Exhibit
`
`2056,174:23-175:5.
`
`Q. In preparing your report, did you consider whether [a third-party
` company]'s system that enables limited use of paid for and/or
` licensed content is covered by any of the claims for which you
` provided an opinion?
`
`A. No, I didn't consider that.
`
`Q. Is there a reason that you didn't?
`
`A. It didn't occur to me.
`

`
`8
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`Surely, for an expert to have bias, it is necessary for the expert to have knowledge
`
`of the facts giving rise to the same. Mere employment is not enough, nor is
`
`knowledge of the products offered by one’s employer. It is instead necessary to
`
`perceive infringement for bias to exist, and for such perception to exist at the time
`
`of an opinion’s rendering. On a record that is without a showing of either, this
`
`argument fails to demonstrate the necessary prerequisite of knowledge as of the
`
`time of the declaration.
`
`As if recognizing the flaw in its position, Smartflash then asserts that its
`
`“inquiry into whether Dr. Bloom considered whether his [employer’s] products
`
`would read on the Smartflash patent claims reflects on the depth of Dr. Bloom’s
`
`investigation and patentability opinion.” Paper 40 at 5. Based on Dr. Bloom’s
`
`leadership role in managing a team of systems engineers and without providing
`
`any additional foundation, Smartflash then professes that “[i]t is unfathomable that
`
`a person in such a position would not consider whether any of his company’s own
`
`products read on the patent claims he is evaluating.” Paper 40 at 6. Smartflash
`
`then further attempts to belittle the rest of Dr. Bloom’s opinion and asks the Board
`
`to “take that fact into consideration in assigning weight to Dr. Bloom’s testimony.”
`
`Id. This line of reasoning is fatally flawed because it neglects to account for the
`
`fact that Smartflash failed to impute knowledge of the alleged relevance by a third-
`
`party company to Dr. Bloom at the time of his rendering of his declaration. In
`
`9
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`other words, Smartflash never establishes a necessary condition for the alleged bias
`
`to exist. Without the allged bisis, any insinuation of infringement7 by a third-party
`
`company unrelated to the instant CBM proceeding is of no consequence to the
`
`validity of the patent claims at issue.
`
`Because Smartflash solicited a variety of opinions from Dr. Bloom that do
`
`not tend to make any fact of consequence in this CBM proceeding, such portions of
`
`testimony should be excluded. See Rules 401 & 402.
`
`III. CONCLUSION
`For the foregoing reasons, Petitioner requests that the evidence discussed
`
`above be excluded.
`
`
`
`
`
`
`
`
`Respectfully submitted,
`
`/Thomas A. Rozylowicz/
`
`Thomas A. Rozylowicz
`Reg. No. 50,620
`
`
`
`
`
`
`
`
`
`
` 10/13/2015
`Date:
`
`
`
`                                                            
`7To the extent that Patent Owner requested discovery into alleged evidence of non-
`
`infringement and existence of non-infringing alternatives, the Board refused to
`
`authorize Patent Owner to file such motions to compel discovery. See generally,
`
`Patent Owner List of Proposed Motions, Paper 12; Order-Conduct of the
`
`Proceedings, Paper 13.
`
`10
`
`

`
`Case CBM2014-00192
`Attorney Docket No: 39843-0005CP1
`
`
`CERTIFICATE OF SERVICE
`
`
`
`Pursuant to 37 CFR §§ 42.6(e)(4) and 42.205(b), the undersigned certifies
`
`that on October 13, 2015, a complete and entire copy of this Petitioner’s Reply in
`
`Support of Motion to Exclude Evidence Under 37 C.F.R. § 42.64(c) and Exhibit
`
`1052 was provided via email to the Patent Owner by serving the correspondence
`
`email addresses of record as follows:
`
`Michael R. Casey
`J. Scott Davidson
`Davidson Berquist Jackson & Gowdey, LLP
`8300 Greensboro Dr., Suite 500
`McLean, VA 22102
`
`Email: mcasey@dbjg.com
`jsd@dbjg.com
` docket@dbjg.com
`
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`
`
`/Diana Bradley/
`
`Diana Bradley
`Fish & Richardson P.C.
`60 South Sixth Street, Suite 3200
`Minneapolis, MN 55402
`(858) 678-5667

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