throbber
Trials@uspto.gov
`Tel: 571-272-7822
`
`
`
`Paper 14
`Entered: December 1, 2015
`
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`
`GOOGLE INC.,
`Petitioner,
`
`v.
`
`SMARTFLASH LLC,
`Patent Owner.
`
`Case CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`
`
`
`
`
`
`Before JENNIFER S. BISK, RAMA G. ELLURU,
`GREGG I. ANDERSON and MATTHEW R. CLEMENTS,
`Administrative Patent Judges.
`
`ELLURU, Administrative Patent Judge.
`
`DECISION
`Institution of Covered Business Method Patent Review
`37 C.F.R. § 42.208
`
`
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`I. INTRODUCTION
`
`Google Inc. (“Google” or “Petitioner Google”) filed a corrected
`Petition requesting covered business method patent review of claims 1, 5, 9,
`10, 14, 21, and 22 (the “challenged claims”) of U.S. Patent No. 8,336,772
`B2 (Ex. 1001, “the ’772 patent”) (“Pet.,” Paper 6, 11). Smartflash LLC
`(“Smartflash”) filed a Preliminary Response (“Prelim. Resp.,” Paper 13).
`We have jurisdiction under 35 U.S.C. § 324, which provides that a
`covered business method patent review may not be instituted “unless . . . it is
`more likely than not that at least 1 of the claims challenged in the petition is
`unpatentable.”
`On June 29, 2015, Google filed a Motion for Joinder (“Mot.,” Paper
`10), seeking to consolidate this case with earlier-filed petitions for covered
`business method patent reviews of the ’772 patent in Apple Inc. v.
`Smartflash, LLC, CBM2015-00031 and CBM2015-00032 (collectively, the
`“Apple CBM Proceedings,” and “Petitioner Apple” when the Petitioner in
`those reviews is referenced), which were instituted on May 28, 2015. See
`Apple Inc. v. Smartflash, LLC, Case CBM2015-00031, slip. op. at 19–20
`(PTAB May 28, 2015) (Paper 11) (instituting review of claims 1, 5, 8, and
`10 of the ’772 patent under 35 U.S.C. § 101); and Apple Inc. v. Smartflash,
`
`
`1 Google filed two versions of the corrected Petition: Paper 7, which is
`sealed and accessible to the parties and Board only, and Paper 6, which is a
`public version of the corrected Petition containing a small portion of
`redacted text. For purposes of this Decision, we refer only to the public
`version of the corrected Petition. Pursuant to 37 C.F.R. § 42.55, Google’s
`motion to seal (Paper 4) the un-redacted Petition (Paper 7) is granted upon
`institution.
`
`2
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`LLC, Case CBM2015-00032, slip. op. at 18–19 (Paper 11) (instituting
`review of claims 14, 19, and 22 of the ’772 patent under 35 U.S.C. § 101).
`Smartflash filed an Opposition to Google’s Motion for Joinder.
`(“Opp.,” Paper 11). Google also filed a Reply in Support of its Motion for
`Joinder. (“Reply,” Paper 12).
`For the reasons explained below, we institute a covered business
`method patent review of claims 1, 5, 9, 10, 14, 21, and 22 of the ’772 patent
`and grant Google’s Motion for Joinder.
`
`II. INSTITUTION OF COVERED BUSINESS METHOD PATENT
`REVIEW ON SAME GROUNDS AS INSTITUTED IN THE APPLE CBM
`PROCEEDINGS
`
`In view of the identity of the challenges in the instant Petition and
`those of the institutions in each of CBM2015-00031 and CBM2015-00032,
`we determine that it is more likely than not that Google will prevail in
`demonstrating that the claims challenged in Google’s present petition are
`unpatentable.
`Smartflash reiterates arguments in support of its position that the ’772
`patent is ineligible for covered business method patent. See Prelim. Resp.
`49–58. We previously have determined that the ’772 patent contains at least
`one claim that is eligible for covered business method patent review. AIA
`§ 18(d)(1); see 37 C.F.R. § 42.301(a); see also CBM2015-00031, Paper 11,
`7–10 (determining that the ’772 patent is eligible for covered business
`method patent review based on claim 8); CBM2015-00032, Paper 11, 6–10
`(determining that the ’772 patent is eligible for covered business method
`patent review based on claim 19); Apple Inc. v. Smartflash, LLC, Case
`CBM2015-00033, slip. op. at 7–11 (PTAB May 28, 2015 (Paper 11)
`
`3
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`(determining that the ’772 patent is eligible for covered business method
`patent review based on claim 30).
`In the present petition, Google contends that claim 21 renders the ’772
`patent eligible for a covered business method patent review. Pet. 4–10.
`Smartflash disagrees. Prelim. Resp. 49–58. We need not address the merits
`of Smartflash’s argument with respect to claim 21 because we have
`previously determined that the ’772 patent contains at least one claim that is
`eligible for covered business method patent review. See Transitional
`Program for Covered Business Method Patents—Definitions of Covered
`Business Method Patent and Technological Invention; Final Rule, 77 Fed.
`Reg. 48,734, 48,736 (Aug. 14, 2012) (“CBM Rules”) (Comment 8) (A
`patent need have only one claim directed to a covered business method to be
`eligible for review).
`Google’s Petition challenges a subset of the claims based upon the
`same ground, 35 U.S.C. § 101, for which we instituted covered business
`method patent reviews in each of the Apple CBM proceedings, and
`challenges for the first time claims 9 and 21, which depend from claims 8
`and 19, respectively, and recite the same additional limitation, based upon
`the same ground. Mot. 2–3. Specifically, Google challenges claims 1, 5, 9,
`10, 14, 21, and 22. Pet. 1; Mot. 2–3. In CBM2015-00031, our institution
`included a review of claims 1, 5, 8, and 10 under § 101. Paper 11, 19–20.
`In CBM2015-00032, our institution included a review of claims 14, 19, and
`22 under § 101. Paper 11, 18–19. Based upon our review of the Petition, we
`are persuaded that it is more likely than not that claims 9 and 21 also are
`unpatentable under § 101.
`
`4
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`Smartflash’s arguments in the present preliminary response do not
`alter our determinations in the previous Apple proceedings. For example,
`Smartflash again argues that AIA § 18(d)(1) should be interpreted narrowly
`to cover only technology used specifically in the financial or banking
`industry. Prelim. Resp. 51–56. The Federal Circuit has expressly
`determined, however, that “the definition of ‘covered business method
`patent’ is not limited to products and services of only the financial industry,
`or to patents owned by or directly affecting the activities of financial
`institutions, such as banks and brokerage houses.” Versata Dev. Grp., Inc. v.
`SAP America, Inc., 793 F.3d 1306, 1325 (Fed. Cir. 2015). Rather, “it covers
`a wide range of finance-related activities.” Id.
`Furthermore, we have reviewed Smartflash’s present preliminary
`response and are not persuaded that we should deny institution of the present
`petition. For example, in support of its argument that the challenged claims
`are directed to statutory eligible subject matter, Smartflash relies heavily on
`DDR Holdings, LLC v. Hotels.com, L.P., 773 F.3d 1245 (Fed. Cir. 2014), a
`decision that we determine, at this point in the proceeding, is not relevant to
`the claims challenged here. See Prelim. Resp. at 15–31. Smartflash also
`argues that the challenged claims do not result in inappropriate preemption
`(Prelim. Resp. 31–43) and alleges that “[t]he existence of a large number of
`non-infringing alternatives shows that the claims of the ’772 Patent do not
`raise preemption concerns” (Prelim. Resp. 36). The Federal Circuit,
`however, has recently acknowledged that “questions on preemption are
`inherent in and resolved by the § 101 analysis.” Ariosa Diagnostics, Inc. v.
`Sequenom, Inc., 788 F.3d 1371, 1379 (Fed. Cir. 2015). The Federal Circuit
`further stated,
`
`5
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`While preemption may signal patent ineligible subject matter,
`the absence of complete preemption does not demonstrate
`patent eligibility. In this case, Sequenom’s attempt to limit the
`breadth of the claims by showing alternative uses of cffDNA
`outside of the scope of the claims does not change the
`conclusion that the claims are directed to patent ineligible
`subject matter. Where a patent’s claims are deemed only to
`disclose patent ineligible subject matter under the Mayo
`framework, as they are in this case, preemption concerns are
`fully addressed and made moot.
`
`Id. (emphasis added).
`Smartflash further asserts that (1) section 101 is not a ground that may
`be raised in a covered business method patent review (Prelim. Resp. 44–46);
`(2) the Office is estopped from revisiting the issue of § 101, which was
`inherently reviewed during examination (id. at 46–47); and (3) invalidating
`patent claims via covered business method patent review is unconstitutional
`(id. at 47–48). For the following reasons, we are not persuaded by these
`arguments.
`As an initial matter, Smartflash concedes that the Federal Circuit, in
`Versata, found that “‘the PTAB acted within the scope of its authority
`delineated by Congress in permitting a § 101 challenge under AIA § 18.’”
`Id. at 44 n.1 (quoting Versata Dev. Grp., Inc. v. SAP America, Inc., 793 F.3d
`1306, 1330 (Fed. Cir. 2015). We conclude that our review of the issue of
`§ 101 here is proper.
`Next, Smartflash does not provide any authority for its assertion that
`“[t]he question of whether the challenged claims are directed to statutory
`subject matter has already been adjudicated by the USPTO, and the USPTO
`is estopped from allowing the issues to be raised in the present proceeding.”
`Id. at 46.
`
`6
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`Smartflash also argues that invalidating patent claims via covered
`business method patent review “violates the Separation of Powers doctrine
`of the United States Constitution” (id. at 47). We decline to consider
`Smartflash’s constitutional challenge as, generally, “administrative agencies
`do not have jurisdiction to decide the constitutionality of congressional
`enactments.” See Riggin v. Office of Senate Fair Employment Practices, 61
`F.3d 1563, 1569 (Fed. Cir. 1995); see also Harjo v. Pro-Football, Inc., 50
`U.S.P.Q.2d 1705, 1999 WL 375907, at *4 (TTAB Apr. 2, 1999) (“[T]he
`Board has no authority . . . to declare provisions of the Trademark Act
`unconstitutional.”); Blackhorse v. Pro-Football, Inc., 111 U.S.P.Q.2d 1080,
`2014 WL 2757516, at *1 n.1 (TTAB June 18, 2014); but see American
`Express Co. v. Lunenfeld, Case CBM2014-00050, slip. op. at 9–10 (PTAB
`May 22, 2015) (Paper 51) (“for the reasons articulated in Patlex, we
`conclude that covered business method patent reviews, like reexamination
`proceedings, comply with the Seventh Amendment”).
`Accordingly, we institute a covered business method patent review in
`this proceeding on the same ground, namely § 101, as that on which we
`instituted in the Apple CBM proceedings for claims 1, 5, 9, 10, 14, 21, and
`22 of the ’772 patent. We do not institute a covered business method patent
`review on any other ground.
`III. GRANT OF MOTION FOR JOINDER
`Smartflash opposes Google’s request to consolidate the present
`petition with the Apple CBM proceedings. Paper 11. Smartflash opposes
`consolidation for the following reasons: “(i) it is too late for the proposed
`joinder to provide the purported efficiencies Petitioner suggests; (ii) the
`cases are sufficiently different in terms of proffered exhibits and witnesses to
`
`7
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`gain any advantage by joinder; and (iii) the Board should exercise its
`discretion under 35 U.S.C. § 325(d) and decline to institute a covered
`business method patent review of claims 1, 5, 9, 10, 14, 21, and 22 of U.S.
`Patent 8,336,772 on 35 U.S.C. § 101 grounds in CBM2015-00132 because it
`has already instituted covered business method review of on the same
`grounds of claims 1, 5, 10, 14, and 22, as well as on claims 8 and 19, from
`which 9 and 22 depend, in CBM2015-0031 and -00032.” Id. at 1.
`We are not persuaded by Smartflash’s arguments. Smartflash
`contends that it is too late for the proposed consolidation to provide
`efficiencies because the Apple CBM proceedings have proceeded through
`Patent Owner discovery with Patent Owner’s Response being filed on July
`29, 2015, and Google’s proposed schedule for consolidation is
`“impractical.” Opp. 2–3. To address this concern, however, we determine
`that the Scheduling Orders in place for CBM2015-00031 and CBM2015-
`00032 shall govern the consolidated proceedings. See Reply 2. Smartflash
`next argues that there is not complete overlap in exhibits and witnesses
`relied upon by Google and the record in the Apple CBM proceedings. Id. at
`4–5. Thus, contends Smartflash, “[consolidation] would force Patent Owner
`to respond to different sets of evidence simultaneously, on a compressed
`schedule, and in more limited space.” Id. at 5.
`However, Google acknowledges that to the extent we determine that
`“incorporating Google’s arguments and evidence in the Apple CBMs would
`complicate the schedules, Google requests [consolidation] as to Apple’s
`petitions so that Google can, at minimum, ensure that the proceedings on the
`challenged claims continue in the event Apple settles or otherwise
`terminates the proceedings.” Mot. 9–10; see Reply 2–3. To address
`
`8
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`Smartflash’s concerns, trial will proceed on the basis of the argument and
`evidence presented by Petitioner Apple in each of the Apple CBM
`proceedings without submission of additional evidence from Petitioner
`Google. Any additional evidence, papers, and briefing filed on behalf of
`Petitioner Apple and Petitioner Google in the consolidated proceedings shall
`be filed by Petitioner Apple, as a consolidated filing, unless we provide
`authorization otherwise, as noted below. Lastly, Smartflash argues that we
`should exercise our discretion under 35 U.S.C. § 325(d) by declining to
`institute a review in the instant case because we have already instituted
`review “on the same grounds of claims 1, 5, 10, 14, and 22, as well as on
`claims 8 and 19, from which claims 9 and 22 depend in CBM2015-00031
`and -00032.” Opp. 6. We decline to exercise our discretion under § 325(d)
`because we consolidate these proceedings based on the same schedule,
`evidence, and argument proffered in the Apple CBM proceedings.
`As noted above, we instituted the Apple CBM proceedings on May
`28, 2015. Google filed the instant petition on May 8, 2015, and its Motion
`for Joinder was filed on June 29, 2015. Mot. 5, 13; Paper 7. Thus, Google’s
`request satisfies the requirement that the consolidation request be made no
`later than one month after the institution date of the Apple CBM
`proceedings. See 35 U.S.C. § 325(c); 37 C.F.R. §§ 42.22 and 42.222(b);
`Fed. R. Civ. P. 6(a).
`The only ground upon which we institute a covered business method
`patent review in this proceeding is a challenge to claims 1, 5, 9, 10, 14, 21,
`and 22 of the ’772 patent based on § 101. We have already determined that
`five of the seven claims challenged by Google are more likely than not
`unpatentable on the same ground on which Google’s challenge is based,
`
`9
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`§ 101. CBM2015-00031, Paper 11, 19–20 (instituting a review of claims 1,
`5, 8, and 10 under § 101); CBM2015-00032, Paper 11, 18–19 (instituting a
`review of claims 14, 19, and 22 under § 101). That Google’s petition
`challenges two claims not at issue in the Apple CBMs, claims 9 and 21, does
`not weigh against joinder. See Reply 7. As an initial matter, the statute and
`regulation allowing consolidation require that only the petition or matter
`concern the same patent. 35 U.S.C. § 325(c); 37 C.F.R. § 42.222(a).
`Because claims 9 and 21 depend from claims 8 and 19, respectively, and we
`instituted a review of both claims 8 and 19 in the Apple CBMs,
`consolidation will increase efficiency by allowing the Board to address the
`patententability of the claims challenged in these proceedings in a fewer
`number of proceedings. Google, thus, does not assert any new ground of
`unpatentability that is not already being considered in the Apple CBM
`proceedings.
`Under the circumstances, we conclude Google has demonstrated that
`consolidation will not unduly complicate or delay the Apple CBM
`proceedings, and therefore, we grant Google’s Motion for Joinder to
`consolidate this proceeding with each of the Apple CBM proceedings,
`CBM2015-00031 and CBM2015-00032, as follows. We consolidate
`Google’s challenge to claims 1, 5, 9, and 10 based on § 101 to CBM2015-
`000312, and Google’s challenge to claims 14, 21, and 22 based on § 101 to
`CBM2015-000323. All filings in the consolidated proceedings will be made
`
`2 We note that a challenge to claims 5 and 10 based on 35 U.S.C. § 101 in
`CBM2015-00059 also has been consolidated with CBM2015-00031.
`3 We note that a challenge to claim 14 based on 35 U.S.C. § 101 in
`CBM2015-00059 also has been consolidated with CBM2015-00032.
`
`10
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`by Petitioner Apple in each of the Apple CBM proceedings. Petitioner
`Google shall not file any separate papers or briefing in these consolidated
`proceedings without authorization from the Board. In addition, Petitioner
`Google shall not seek any additional discovery beyond that sought by
`Petitioner Apple. Petitioner Apple and Petitioner Google shall resolve any
`disputes between them concerning the conduct of the consolidated
`proceedings and shall contact the Board if any such matters cannot be
`resolved. No additional burdens shall be placed on Smartflash as a result of
`the consolidation. In consideration of the above, we institute a covered
`business method patent review in CBM2015-00132 and grant Petitioner
`Google’s motion to consolidate this proceeding with each of the Apple CBM
`proceedings as stated above.
`
`ORDER
`
`For the reasons given, it is:
`ORDERED that the challenge to claims 1, 5, 9, 10, 14, 21, and 22 in
`CBM2015-00132 is instituted;
`FURTHER ORDERED that Google’s challenge to claims 1, 5, 9, and
`10 based on § 101 is consolidated with CBM2015-00031;
`FURTHER ORDERED that Google’s challenge to claims 14, 21, and
`22 based on § 101 is consolidated with CBM2015-00032;
`FURTHER ORDERED that the grounds on which CBM2015-00031
`and CBM2015-00032 were instituted are unchanged, except to the extent
`that a challenge to claims 9 and 21 are consolidated with these proceedings,
`respectively, and no other grounds are instituted in the consolidated
`proceeding;
`
`11
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`
`
`FURTHER ORDERED that the Scheduling Order in place for
`CBM2015-00031 and CBM2015-00032 shall govern the consolidated
`proceedings;
`FURTHER ORDERED that the record in each of the Apple CBM
`proceedings will remain unchanged;
`FURTHER ORDERED that, throughout the consolidated proceeding,
`any paper, except for a motion that does not involve the other party, shall be
`filed by Petitioner Apple, as a single, consolidated filing on behalf of
`Petitioner Apple and Petitioner Google, and Petitioner Apple will identify
`each such filing as a consolidated filing;
`FURTHER ORDERED that except as otherwise agreed by counsel,
`Petitioner Apple will conduct cross-examination and other discovery on
`behalf of Petitioner Apple and Petitioner Google and that Patent Owner is
`not required to provide separate discovery responses or additional deposition
`time as a result of the consolidation;
`FURTHER ORDERED that CBM2015-00132 is terminated under
`37 C.F.R. § 42.72, and all further filings in the consolidated proceedings are
`to be made in each of CBM2015-00031 and CBM2015-00032;
`FURTHER ORDERED that a copy of this Decision will be entered
`into the records of CBM2015-00031 and CBM2015-00032; and
`FURTHER ORDERED that the case caption in each of CBM2015-
`00031 and CBM2015-00032 shall be changed to reflect consolidation with
`this proceeding in accordance with the attached examples.
`
`12
`
`

`
`CBM2015-00132
`Patent 8,336,772 B2
`
`PETITIONER:
`
`
`
`Raymond Nimrod
`Andrew Holmes
`QUINN EMANUEL URQUHART & SULLIVAN, LLP
`raynimrod@quinnemauel.com
`QE-SF-PTAB-Service@quinnemanuel.com
`
`PATENT OWNER:
`
`Michael R. Casey
`Wayne M. Helge
`DAVIDSON BERQUIST JACKSON & GOWDEY, LLP
`Smartflash-cbm@dbjg.com
`whelge@davidsonberquist.com
`
`
`
`
`
`13
`
`

`
`CBM2015-00031
`Patent 8,336,772 B2
`
`
`
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`
`APPLE INC., SAMSUNG ELECTRONICS LTD, and SAMSUNG
`ELECTORNICS AMERICA, INC., and GOOGLE, INC.
`Petitioner,
`
`v.
`
`SMARTFLASH LLC
`Patent Owner.
`____________
`
`Case CBM2015-000311,2
`Patent 8,336,772 B2
`____________
`
`
`
`
`
`
`1 The challenge to claims 5 and 10 based on 35 U.S.C. § 101 in CBM2015-
`00059 has been consolidated with this proceeding.
`2 The challenge to claims 1, 5, 9, and 10 based on 35 U.S.C. § 101 in
`CBM2015- 00132 has been consolidated with this proceeding.
`
`
`
`

`
`CBM2015-00032
`Patent 8,336,772 B2
`
`
`
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`
`APPLE INC., SAMSUNG ELECTRONICS LTD, and SAMSUNG
`ELECTORNICS AMERICA, INC., and GOOGLE, INC.
`Petitioner,
`
`v.
`
`SMARTFLASH LLC
`Patent Owner.
`____________
`
`Case CBM2015-000321,2
`Patent 8,336,772 B2
`____________
`
`
`
`
`
`
`1 The challenge to claim 14 based on 35 U.S.C. § 101 in CBM2015-00059
`has been consolidated with this proceeding.
`2 The challenge to claims 14, 21, and 22 based on 35 U.S.C. § 101 in
`CBM2015-00132 has been consolidated with this proceeding.

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket