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`____________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`____________
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`SAMSUNG ELECTRONICS AMERICA, INC., and
`SAMSUNG ELECTRONICS CO., LTD.,
`Petitioner,
`
`v.
`
`SMARTFLASH LLC,
`Patent Owner.
`
`____________
`
`Case CBM2015-00059
`Patent 8,336,772 B2
`
`____________
`
`PATENT OWNER’S OPPOSITION TO PETITIONER’S MOTION FOR
`JOINDER UNDER 35 U.S.C. § 325(c) AND 37 C.F.R. § 42.222(b)
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`
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`I.
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`INTRODUCTION
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`Patent Owner hereby opposes Petitioner’s Motion for Joinder Under 35
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`U.S.C. § 325(c) and 37 C.F.R. § 42.222(b).
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`This is Petitioner’s second Motion for Joinder in this matter. The first
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`Motion sought to join any proceeding resulting from its CBM2015-00059 petition
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`with CBM2014-00200 and -00204. Paper 3 at 2. That Motion was rendered moot
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`when the Patent Trial and Appeal Board (“PTAB”) denied institution of covered
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`business method review in those two cases. CBM2014-00200, Paper 9, Decision,
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`Denying Institution of Covered Business Method Patent Review 37 C.F.R. §
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`42.208, (PTAB March 30, 2015); CBM2014-00204, Paper 9, Decision, Denying
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`Institution of Covered Business Method Patent Review 37 C.F.R. § 42.208, (PTAB
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`March 30, 2015).
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`Now Petitioner seeks to join CBM2015-00059 with covered business
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`method review cases CBM2015-00031, -00032, and -00033 filed by Apple Inc.
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`Motion, Paper 11 at 1.
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`The Board should deny the Motion for Joinder because (i) it is too late for
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`the proposed joinder to provide the purported efficiencies Petitioner suggests; (ii)
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`the cases are sufficiently different in terms of proffered exhibits and witnesses to
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`gain any advantage by joinder; and (iii) the Board should exercise its discretion
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`under 35 U.S.C. § 325(d) and decline to institute a covered business method patent
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`review of claims 5, 10, 14, 26, and 32 of U.S. Patent 8,336,772 on 35 U.S.C. § 101
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`grounds in CBM2015-00059 because it has already instituted covered business
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`method review of those claims on the same grounds in CBM2015-00031, -00032,
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`and -00033.
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`II. RESPONSE TO STATEMENT OF MATERIAL FACTS
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`1 – 5. Admitted.
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`6.
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`Patent Owner admits that “the claims challenged in the Samsung
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`Petition [in CBM2015-00059] are … a subset of the claims challenged in each
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`of the three Apple CBM Proceedings [CBM2015-00031, -00032, and -00033].
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`Patent Owner denies that this “mak[es] it possible to comprehensively join
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`grounds proposed by Samsung with grounds proposed by Apple.”
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`7.
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`Admitted.
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`III. STATEMENT OF MATERIAL FACTS
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`1.
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`2.
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`There has been no Institution Decision issued in CBM2015-00059.
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`Under Petitioner’s Proposal for Schedule with Joinder (Motion for
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`Joinder, Paper 11 at 14), the proposed date for Patent Owner’s Response to
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`Samsung’s Petition in CBM2015-00059 is July 29, 2015, the date this
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`Opposition is due.
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`3.
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`There is no overlap in witnesses proffered by Samsung in CBM2015-
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`00059 (Dr. Jeffery Bloom and Mr. Steven Blumenfeld) with witnesses
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`proffered by Apple in CBM2015-00031, -00032, and -00033 (Mr. Anthony J.
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`Wechselberger).
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`4.
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`In support of its §101 petition, Samsung relies on Exhibits 1039-
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`1047. Those Exhibits are not in CBM2015-00031, -00032, and -00033.
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`5.
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`Petitioner Samsung already sought review of claims 5, 10, 14, 26, and
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`32 on § 101 grounds in CBM2014-00204.
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`6.
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`The PTAB did not institute review of claims 5, 10, 14, 26, and 32 on §
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`101 grounds in CBM2014-00204.
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`IV. ARGUMENT
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`A.
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`It Is Too Late For The Proposed Joinder To Provide The
`Purported Efficiencies Petitioner Suggests.
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`Petitioner claims that “[j]oinder is appropriate because … it will promote
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`efficient resolution of the validity of the ‘772 Patent.” Motion, Paper 11 at 1. Any
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`efficiencies that might have existed at the time the CBM2015-00031, -00032, and -
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`00033 were instituted on May 28, 2015, however, were squandered by Petitioner
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`waiting until the very last allowable day (June 29, 2015) to file its Motion for
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`Joinder. In the meantime, CBM2015-00031, -00032, and -00033 have proceeded
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`through Patent Owner discovery to the point of Patent Owner’s Response being
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`filed on July 29, 2015. Meanwhile, CBM2015-00059 has not had a decision on
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`institution.
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`Petitioner Samsung posits that “[b]ecause grounds of unpatentability under §
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`101 are directed to legal issues, there is necessarily less discovery involved than
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`would normally be involved with regard to grounds of unpatentability under §§
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`102 and 103, which are directed to a larger factual inquiry.” Motion, Paper 11 at 9.
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`While this is true in theory, it is belied by the fact that Samsung’s petition, limited
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`only to the § 101 issue, is 66 pages, includes 65 Exhibits, and has supporting
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`declarations from two witnesses. If CBM2015-00059 is instituted, there is a need
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`for Patent Owner discovery.
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`Moreover, Petitioner’s proposed schedule is impractical. Under Petitioner’s
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`Proposal for Schedule with Joinder (Motion for Joinder, Paper 11 at 14), the
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`proposed date for Patent Owner’s Response to Samsung’s Petition in CBM2015-
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`00059 is July 29, 2015, the date this Opposition is due. While Samsung proposes
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`“reasonable accommodations” of providing “additional supplemental responses
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`addressing peculiarities of the Samsung Petition” to be filed August 12, 2015, that
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`is impractical. As noted, there has been no institution decision and thus no
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`discovery conducted by Patent Owner. Also as noted, Samsung proffered two
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`witness declarations from Dr. Jeffery Bloom and Mr. Steven Blumenfeld. These
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`witnesses do not overlap with Apple’s witnesses. Patent Owner has a right to
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`depose these witnesses. 37 CFR § 42.53. Clearly Samsung’s “reasonable
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`accommodations” whereby Patent Owner would depose two witnesses and prepare
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`a substantive Patent Owner’s Response by August 12, 2015 are not so reasonable.1
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`CBM2015-00031, -00032, and -00033 are too far advanced to shoe horn
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`CBM2015-00059 into the same schedule.
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`B. The CBM2015-00059 and CBM2015-00031, -00032, and -
`00033 Cases Are Sufficiently Different Such That There Is No
`Advantage To Joinder.
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`In arguing for joinder, Samsung focuses on purported “commonalities”
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`between its petition and the Apple petitions. Motion, Paper 11 at 5-6. These
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`“commonalities” are superficial: same patent, same § 101 grounds. The
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`CBM2015-00059 and CBM2015-00031, -00032, and -00033 petitions are
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`sufficiently different in terms of proffered exhibits and witnesses that they will not
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`gain any advantage by joinder.
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`In support of its §101 petition, Samsung relies on Exhibits 1039-1047, all
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`generally related to compensation of copyright holders based on the number of
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`1 Meanwhile, in CBM2015-00125, Petitioner Google is proposing that its petition
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`be joined with CBM2015-00028 and -00029 (which are proceeding in lockstep
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`with CBM2015-00031, -00032, and -00033) and proffered a schedule whereby
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`Patent Owner would depose Google’s witness and prepare a substantive Patent
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`Owner’s Response by August 28, 2015. CBM2015-00125, Motion for Joinder,
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`Paper 7 at 13-14.
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`purchases and/or plays of their songs. Those Exhibits are not in CBM2015-00031,
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`-00032, and -00033.
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`There is no overlap in witnesses proffered by Samsung in this action (Dr.
`
`Jeffery Bloom and Mr. Steven Blumenfeld) with witnesses proffered by Apple in
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`CBM2015-00031, -00032, and -00033 (Mr. Anthony J. Wechselberger).
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`Joinder would force Patent Owner to respond to different sets of evidence
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`simultaneously, on a compressed schedule, and in more limited space. The
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`prejudice to Patent Owner is obvious.
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`In light of the differences in evidence between the actions, there is no real
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`advantage to the parties or the PTAB from joinder.
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`C. The Board Should Exercise Its Discretion Under 35 U.S.C. §
`325(d) And Decline To Institute Covered Business Method
`Patent Review.
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`To meet Petitioner Samsung’s stated goal of “facilitat[ing] the efficient
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`adjudication of all proceedings” and “promot[ing] an efficient and holistic
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`adjudication of the proceedings” (Motion, Paper 11 at 6), Patent Owner submits
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`that the Board should follow its precedent from other Smartflash/Apple/Samsung
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`CBM proceedings and deny Samsung’s petition. See, Apple Inc. v, Smartflash
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`LLC, CBM2015-00015, Paper 23 at 18, Decision, Institution of Covered Business
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`Method Patent Review and Denying Motion for Joinder 37 C.F.R. § 42.208 37
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`C.F.R. § 42.222(b), (PTAB April 10, 2015)(declining to institute covered business
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`method patent review of claims under §101, an issue of law, because Board already
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`instituted covered business method review of same claims under § 101 in other
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`proceeding).
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`Here, the Board should exercise its discretion under 35 U.S.C. § 325(d) and
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`decline to institute a covered business method patent review of claims 5, 10, 14,
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`26, and 32 on 35 U.S.C. § 101 grounds in CBM2015-00059 because it has already
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`instituted covered business method review of those same claims on the same
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`purely legal § 101 grounds in CBM2015-00031, -00032, and -00033.
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`This result is also appropriate because Petitioner Samsung already sought
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`review of claims 5, 10, 14, 26, and 32 on § 101 grounds in CBM2014-00204 and
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`the Board declined to institute review of claims 5, 10, 14, 26, and 32 on § 101
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`grounds in CBM2014-00204.
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`V. CONCLUSION
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`Petitioner’s Motion for Joinder Under 35 U.S.C. § 325(c) and 37 C.F.R. §
`
` /
`
` Michael R. Casey /
`
`
`Michael R. Casey
`Registration No. 40,294
`Davidson Berquist Jackson & Gowdey, LLP
`8300 Greensboro Dr., Suite 500
`McLean, VA 22102
`Telephone: (571) 765-7700
`Fax : (571) 765-7200
`Email: mcasey@dbjg.com
`Attorney for Patent Owner
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`42.222(b) should be denied.
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`Dated: July 29, 2015
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`CERTIFICATE OF SERVICE
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`The undersigned hereby certifies that this PATENT OWNER’S
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`OPPOSITION TO PETITIONER’S MOTION FOR JOINDER UNDER 35 U.S.C.
`
`§ 325(c) AND 37 C.F.R. § 42.222(b) was served, by agreement of the parties, July
`
`29, 2015 by emailing copies to counsel for the Petitioner as follows:
`
`W. Karl Renner (renner@fr.com)
`Thomas Rozylowicz (rozylowicz@fr.com)
`CBM39843-0008CP3@fr.com
`
`
` /
`
` Michael R. Casey /
`
`
`Michael R. Casey
`Registration No. 40,294
`Davidson Berquist Jackson & Gowdey, LLP
`8300 Greensboro Dr., Suite 500
`McLean, VA 22102
`Telephone: (571) 765-7700
`Fax : (571) 765-7200
`Email: mcasey@dbjg.com
`Attorney for Patent Owner
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`Dated: July 29, 2015