`Patent 7,461,353
`
`
`
`
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`____________
`
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`____________
`
`
`KYOCERA CORPORATION.
`Petitioner,
`v.
`
`SOFTVIEW LLC
`Patent Owner.
`____________
`
`
`
`KYOCERA’S RESPONSE TO MOTOROLA’S MOTION FOR JOINDER
`
`____________
`
`
`CASE IPR2013-00007
`Patent 7,461,353
`
`____________
`
`
`
`
`
`
`
`
`
`
`CASE IPR2013-00007
`Patent 7,461,353
`
`I. INTRODUCTION
`On April 29, 2013, Motorola Mobility (“Motorola”) filed a petition to
`
`
`
`institute IPR2013-00256, which concerns the ‘353 Patent, and a petition to institute
`
`IPR2013-00257, which concerns the ‘926 Patent. In Paper No. 18, the Board
`
`observed that
`
`Motorola Mobility’s petition to institute IPR2013-00256
`asserts the same grounds of unpatentability as those on
`which we instituted inter partes review IPR2013-00007.
`Motorola Mobility’s petition to institute IPR2013-00257
`asserts the same grounds of unpatentability as those on
`which we instituted inter partes review IPR2013-00004.
`In view of its assertion of the same grounds of
`unpatentability, Motorola Mobility has moved for joinder
`of IPR2013-00256 with IPR2013-00007 and joinder of
`IPR2013-00257 with IPR2013-00004 (Motions For
`Joinder). Patent Owner indicated that it desires to oppose
`Motorola Mobility’s Motions For Joinder.
`
`Paper No. 18 at 4-5. The Board ordered that Kyocera and SoftView have 10
`
`calendar days to submit arguments opposing Motorola’s Motion for Joinder. Id. at
`
`5.
`
`Pursuant to the Board’s Order in Paper No. 18, Kyocera raises the following
`
`concerns regarding Motorola’s motion. First, if granting Motorola’s motion would
`
`
`
`
`
`CASE IPR2013-00007
`Patent 7,461,353
`delay the date for a final written decision in this IPR, such delay would severely
`
`prejudice Kyocera. Second, granting Motorola’s motion may increase Kyocera’s
`
`expense for litigating this proceeding. Third, granting Motorola’s motion, on the
`
`terms proposed by Motorola, would deprive Kyocera of control over the contents
`
`of the 15 page Reply to SoftView’s Opposition. Fourth, granting Motorola’s
`
`motion, on the terms proposed by Motorola, would diminish the amount of time
`
`Kyocera would have to depose SoftView’s declarants.
`
`II. ARGUMENT
`A. Legal Standard
`The Leahy-Smith America Invents Act (AIA) permits joinder of inter partes
`
`review proceedings under 35 U.S.C. § 315(c), which reads as follows:
`
`(c) JOINDER.--If the Director institutes an inter partes
`review, the Director, in his or her discretion, may join as
`a party to that inter partes review any person who
`properly files a petition under section 311 that the
`Director, after receiving a preliminary response under
`section 313 or the expiration of the time for filing such a
`response, determines warrants the institution of an inter
`partes review under section 314.
`
`“The rules are to be construed so as to ensure the just, speedy, and
`
`inexpensive resolution of a proceeding . . . .” Office Patent Trial Practice Guide, 77
`
`Fed. Reg. 48756, 48758 (Aug. 14, 2012).
`
`
`
`
`
` 2
`
`
`
`CASE IPR2013-00007
`Patent 7,461,353
`In Microsoft Corp. v. Proxyconn, Inc., IPR2013-00109 (PTAB 2013), the
`
`Board permitted joinder of a second petition filed by Microsoft. In that proceeding,
`
`the patent owner did not oppose the motion for joinder, and in fact, encouraged it.
`
`Id. at 2. Microsoft filed the second petition “after learning that additional claims
`
`were being asserted by Patent owner in concurrent district court litigation.”1 Id. at
`
`3. When it granted Microsoft’s unopposed motion, the PTAB adjusted the
`
`schedule. Id. at 4. As far as Petitioner is aware, the PTAB has not, as yet, ruled on
`
`a motion to join by a third party under the circumstances presented here.
`
`B. Kyocera Would Be Prejudiced If Granting Motorola’s Motion
`Would Delay This Proceeding
`Kyocera filed a motion to stay the SoftView patent litigation. SoftView LLC
`
`v. Kyocera Corp., 10-389-LPS (consolidated) (D. Del. 2013) (D.I. 940, 941) (Ex.
`
`A). In that motion, Kyocera represented to the Court that the PTAB must, by
`
`statute, issue a final written decision within one year of institution. (Ex. A at 7, 10,
`
`11, 15).
`
` In response, SoftView argued that Kyocera’s representation is
`
`“guesswork.” (D. I. 969 at 11) (Ex. B at 15.) Any decision by the PTAB in this IPR
`
`that even hints that the deadline for the final written decision might be extended
`
`would severely prejudice Kyocera’s motion to stay in the patent infringement
`
`litigation.
`
`
`1 In the SoftView district court litigation, SoftView did not assert additional claims
`after Kyocera filed its IPR petition.
`
`
`
`
`
` 3
`
`
`
`CASE IPR2013-00007
`Patent 7,461,353
`C. Granting Motorola’s Motion May Unduly Increase the Expense to of
`this Proceeding to Kyocera
`
`Kyocera is concerned that granting Motorola’s motion to join this IPR may
`
`increase
`
`the expense of
`
`this proceeding, and may result
`
`in significant
`
`complications.
`
`1. Briefing May Be More Complicated And More Expensive
`Kyocera objects to Motorola’s suggestion at page 5 of its motion that “[t]he
`
`Board may order Kyocera and Motorola to consolidate their submissions and to
`
`conduct joint discovery where appropriate.” Under 37 C.F.R. §42.24(c),
`
`Kyocera’s reply to the SoftView’s Opposition is limited to 15 pages. Any order
`
`preventing Kyocera from having full use of the 15 pages to which it is entitled
`
`under the rules would prejudice Kyocera, because it is unlikely that counsel for
`
`Kyocera and Motorola would agree on the contents of the Reply, and in any event,
`
`a joint reply will require in all probability multiple exchanges of drafts, which will
`
`increase attorneys’ fees. Moreover, it would be unjust for Kyocera to lose control
`
`of its Reply to SoftView’s opposition because a late-comer (who intentionally
`
`chose not to file an IPR petition at the statutory one-year deadline) was allowed to
`
`join and wrest control of the briefing and discovery away from the petitioner.
`
`2. Granting Motorola’s Motion May Increase the Expense of
`Depositions
`
`Consolidation raises significant issues in discovery.
`
` For example,
`
`conducting “joint discovery” is not as easy as it sounds. Experience in the
`
`
`
`
`
` 4
`
`
`
`CASE IPR2013-00007
`Patent 7,461,353
`SoftView litigation has shown that depositions jointly taken by the defendants, with
`
`more than one defendant asking questions, have run longer than 7 hours, the most
`
`recent example being the deposition of SoftView’s patent attorney, which
`
`SoftView cut off at 7 hours in spite of the fact that certain defendants had not had
`
`an opportunity to ask questions. This is especially significant where, as here, the
`
`depositions will likely be of experts. Thus, Kyocera is likely to (a) incur additional
`
`attorneys’ fees for coordinating with counsel for Motorola, or (b) not be able to
`
`fully question SoftView’s experts, or (c) incur additional attorneys’ fees for longer
`
`depositions.
`
`D. Joinder May Not Enhance Efficiency
`The pending Motorola reexaminations of these two patents are stayed,
`
`pending the final written decision of this IPR. Addition of Motorola to this IPR
`
`may not enhance efficiency, as Motorola contends.
`
`If Motorola’s request is granted, there will be a significant issue as to the
`
`level of estoppel Motorola will face under 35 U.S.C. § 315(e)(1). Motorola argues
`
`that it has limited its petition to the same grounds as those submitted by Petitioner
`
`and granted by the Board. Ex. A at 4. In Paper No. 15, this Board raised concern
`
`that Apple’s proposed motion to join “could result in delaying the schedule already
`
`in place for the ongoing inter partes review, particularly if Apple’s petitions raise
`
`grounds of unpatentability not already authorized in our Decisions To Institute
`
`
`
`
`
` 5
`
`
`
`CASE IPR2013-00007
`Patent 7,461,353
`entered on March 29, 2013.” Paper No. 15, at 3. Motorola’s inter partes
`
`reexamination raises multiple combinations and grounds for invalidity of the
`
`asserted claims that are not subject to its IPR petition. If Motorola were allowed to
`
`join this IPR, and if the final written decision of the Board in this case were
`
`adverse to Motorola with respect to any claim, then Motorola could legitimately
`
`argue that it “could not have raised” the other grounds from its inter partes
`
`reexamination because, given this Board’s expressed concerns in Paper No. 15,
`
`that would have caused the Board to reject Motorola’s petition. Thus, granting
`
`Motorola’s petition may subsequently raise significant issues under 35 U.S.C. §
`
`315(e)(1) with respect to grounds Motorola “could have raised”, and thus the
`
`continued viability of its inter partes reexamination. Thus, granting Motorola’s
`
`petition would not “enhance efficiency,” as Motorola contends.
`
`
`
`
`
` 6
`
`
`
`CASE IPR2013-00007
`Patent 7,461,353
`
`
`III. CONCLUSION
`For the reasons set forth above, Petitioner respectfully submits that the
`
`Board should consider Kyocera’s concerns when it rules on Motorola’s motion.
`
`
`
`
`
`Date: May 13, 2013
`
`
`
`
`
`
`
`
`
`
`
`
`
`Respectfully submitted,
`
`KATTEN MUCHIN ROSENMAN LLP
`
`
`
`
`
`BY: ___ /Richard P. Bauer/ _____
`Richard P. Bauer (Reg. No. 31,588)
`KATTEN MUCHIN ROSENMAN LLP
`2900 K Street NW - Suite 200
`Washington, DC 20007-5118
`Richard.Bauer@kattenlaw.com
`
`Eric C. Cohen (Reg. No. 27,429)
`Michael S. Dorfman (Reg. No. 46,669)
`Michael S. Tomsa (Reg. No. 64,264)
`KATTEN MUCHIN ROSENMAN LLP
`525 W. Monroe Street
`Chicago, IL 60661-3693
`Eric.Cohen@kattenlaw.com
`Michael.Dorfman@kattenlaw.com
`Michael.Tomsa@kattenlaw.com
`
`ATTORNEYS FOR PETITIONER
`(IPR Trial Nos. 2013-00004 & 2013-00007)
`
`
`
`
`
` 7
`
`
`
`CASE IPR2013-00007
`Patent 7,461,353
`
`CERTIFICATE OF SERVICE
`
`Pursuant to 37 CFR § 42.6, I hereby certify that on Monday, May 13, 2013,
`
`a true copy of the accompanying KYOCERA’S RESPONSE TO MOTOROLA’S
`
`MOTION FOR JOINDER was served:
`
`by electronic mail, as agreed to by the parties, upon the following:
`
`Babak Redjaian
`bredjaian@irell.com
`Ben Yorks
`byorks@irell.com
`IRELL & MANELLA LLP
`840 Newport Center Drive, Suite 400
`Newport Beach, CA 92660
`
`by Federal Express upon the following:
`
`Counsel for Sofview LLC
`
`John C. Alemanni
`Jalemanni@kilpatricktownsend.com
`KILPATRICK TOWNSEND & STOCKTON LLP
`1001 West Fourth Street
`Winston-Salem, NC 27101-2400
`Counsel for Motorola Mobility LLC
`
`
` Respectfully submitted,
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`___ /Richard P. Bauer /_____
`Katten Muchin Rosenman LLP
`Richard P. Bauer (Reg. No. 31,588)
`
`
`
`
`
`
`
` 8
`
`
`
`
`
`
`
`
`
`
`EXHIBIT A
`EXHIBIT A
`
`
`
`Case 1:10-cv-00389-LPS Document 940 Filed 04/04/13 Page 1 of 2 PageID #: 16617
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
`
`SOFTVIEW LLC,
`
`Plaintiff,
`
`v.
`
`KYOCERA CORP. and KYOCERA
`WIRELESS CORP.,
`
`Defendants.
`
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`
`C, A, No, lO-389-LPS
`
`C.A. No. l2-989-LPS
`
`KYOCERA CORP. AND KYOCERA WIRELESS CORP.'S MOTION TO STAY
`PENDING INTER PARTES REVIEW BY THE PATENT TRIAL AND APPEAL BOARD
`
`Defendants Kyocera Corp. and Kyocera Wireless Corp. respectfully move this Court for
`
`an order granting a stay of this action pending the final decision ofthe Patent Trial and Appeal
`
`Board in inter partes review proceedings of the asserted claims of U.S. Pat. Nos. 7,461,353 and
`
`7,831,926 in the United States Patent and Trademark Office. The grounds for this motion are set
`
`forth in the Opening Brief filed in support of this motion. In short, a unanimous panel of the
`
`Patent Trial and Appeal Board has decided that there is a reasonable likelihood that K yocera is
`
`likely to prevail in its challenge to the patentability of all of the asserted claims in this case.
`
`Pursuant to Local Rule 7.1.1 , counsel states that a reasonable effort was made to reach
`
`agreement with Plaintiff Softview LLC on the matters set forth herein, but that agreement could
`
`not be reached.
`
`EXHIBIT A PAGE 1
`
`
`
`Case 1:10-cv-00389-LPS Document 940 Filed 04/04/13 Page 2 of 2 PageID #: 16618
`
`Respectfully submitted,
`
`lsi John C. Phillips. Jr.
`John C. Phillips, Jr. (#110)
`Megan C. Haney (#5016)
`Phillips, Goldman & Spence, P.A.
`1200 North Broom Street
`Wilmington, DE 19806
`(302) 655-4200
`Email: jcp@pgslaw.com
`mch@pgslaw.com
`
`Dated: April 4, 2013
`
`OF COUNSEL:
`
`Eric C. Cohen
`Michael A. Dorfman
`Katten Muchin Rosenman LLP
`525 W. Monroe Street
`Chicago, Illinois 60661
`(312) 902-5200
`eric.cohen@kattenlaw.com
`michael.dorfman@kattenlaw.com
`
`2
`
`EXHIBIT A PAGE 2
`
`
`
`Case 1:10-cv-00389-LPS Document 941 Filed 04/04/13 Page 1 of 15 PageID #: 16620
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELA WARE
`
`SOFTVIEW LLC,
`
`C.A. No. 1O-389-LPS
`
`PLAINTIFF,
`
`VS.
`
`C.A. No. 12-989-LPS
`
`KYOCERA CORP. and KYOCERA
`WIRELESS CORP.,
`
`DEFENDANTS.
`
`KYOCERA CORP. AND KYOCERA WIRELESS CORP.'S OPENING BRIEF IN
`SUPPORT OF MOTION TO STAY PENDING INTER PARTES REVIEW BY THE
`PATENT TRIAL AND APPEAL BOARD
`
`John C. Phillips, Jr. (No. 110)
`Phillips, Goldman & Spence, P.A.
`1200 North Broom Street
`Wilmington, DE 19806
`Tel. (302) 655-4200
`Fax (302) 655-4210
`jcp@pgslaw.com
`
`Attorneys for Defendants Kyocera Corp. and
`Kyocera Wireless Corp.
`
`OF COUNSEL:
`
`Eric C. Cohen
`Michael A. Dorfman
`Katten Muchin Rosenman LLP
`525 W. Monroe Street
`Chicago, Illinois 60661
`(312) 902-5200
`eric.cohen@kattenlaw.com
`michael.dorfman@kattenlaw.com
`
`Dated: April 4, 2013
`
`EXHIBIT A PAGE 3
`
`
`
`Case 1:10-cv-00389-LPS Document 941 Filed 04/04/13 Page 2 of 15 PageID #: 16621
`
`TABLE OF CONTENTS
`
`1.
`
`INTRODUCTION AND SUMMARY OF THE ARGUMENT .............................................. 1
`
`II. ARGUMENT .......................................................................................................................... 3
`
`A. INTER PARTES REVIEW UNDER THE AMERICA INVENTS ACT ........................ 3
`
`B. COURTS HAVE GRANTED STAYS PENDING INTER PARTES REVIEW .............. 4
`
`C. A STAY IS APPROPRIATE IN THIS CASE .................................................................. 5
`
`1. NATURE AND STAGE OF THE PROCEEDINGS .................................................... 5
`
`2. LEGAL STANDARD .................................................................................................... 6
`
`3. THE STATUS OF THIS CASE FAVORS A STAY .................................................... 7
`
`4. A STAY WILL SIMPLIFY THE ISSUES AND TRIAL OF THE CASE AGAINST
`KYOCERA ""'"'''' .......................................................................... """'''''''' ...................... 9
`
`5. A STAY WILL NOT UNDULY PREJUDICE SOFTVIEW ...................................... 10
`
`III. CONCLUSION .................................................................................................................... 11
`
`- 2 -
`
`EXHIBIT A PAGE 4
`
`
`
`Case 1:10-cv-00389-LPS Document 941 Filed 04/04/13 Page 3 of 15 PageID #: 16622
`
`TABLE OF AUTHORITIES
`
`Page(s)
`
`CASES
`Bergstrom, Inc. v. Idle Free Sys., Inc., 3:12-cv-50254, (N.D. I1l., March 21,2013) ...................... 5
`
`Capriola Corp. v. LaRose Industrues LLC,
`8: 12-cv-2346-T-23-TBM, slip op. (MD. Fla., March 13,2013) ............................................. 5
`
`Clearlamp, LLC v. LKQ Corp.,
`1 :12-cv-02533 (N.D.Ill., October 18, 2012) ............................................................................. 5
`
`Ethicon, Inc. v. Quigg,
`849 F.2d 1422, 1426-27 (Fed. CiT. 1998) ................................................................................. 6
`
`In re Translogic Tech., Inc.
`504 F.3d 1249 (Fed. Cir. 2008) ............................................................................................... 10
`
`Landis v. N Am. Co.,
`299 U.S. 248, 254 (1936) .......................................................................................................... 6
`
`Network Security Solutions, Inc. v. Alcatel-Lucent USA Inc.,
`6:11-cv-492-LED-JDL (E.D. Tex.) .......................................................................................... 5
`Semiconductor Energy Lab. Co. v. Chimei Innolux Corp.,
`2012 WL 7170593 (C.D. Cal. Dec. 19,2012) ......................................................................... 5
`
`The Trustees o/Columbia University v. Illumina, Inc.,
`12-376-GMS, D.L 89 (D. Del., April 1, 2013) ................................................................. 2,5,8
`
`Translogic Tech., Inc. v. Hitachi, Ltd.,
`250 Fed.Appx. 988,2007 WL 2973955 (Fed. CiT. 2008) ....................................................... 10
`
`STATUTES
`
`35 U.S.C. § 102 ............................................................................................................................... 9
`
`35 U.S.C. § 103 ............................................................................................................................... 9
`
`35 U.S.C. § 112 ............................................................................................................................... 7
`
`35 U.S.C. § 141(c) .......................................................................................................................... 4
`
`35 U.S.C. § 299 ............................................................................................................................... 2
`
`35 U.S.C. § 313 ............................................................................................................................... 4
`
`35 U.S.c. § 314 ............................................................................................................................... 4
`
`35 U.S.C. § 315(e) .......................................................................................................................... 3
`
`35 U.S.C. § 316(a)(11) ................................................................................................................ 1,3
`
`35 U.S.C. § 319 ............................................................................................................................... 4
`
`EXHIBIT A PAGE 5
`
`
`
`Case 1:10-cv-00389-LPS Document 941 Filed 04/04/13 Page 4 of 15 PageID #: 16623
`
`TABLE OF AUTHORITIES
`(continued)
`
`Page(s)
`
`Pub. L. No. 112-29, § 314(a), 125 Stat. 284 (2011) ....................................................................... 3
`
`Pub. Law 112-29, Sept. 16,2011, Sec. 6(c), 125 Stat. 304 ............................................................ 4
`
`OTHER AUTHORITIES
`
`157 CONGo REC. S952 (daily ed. Feb. 28, 2011) .......................................................................... 3
`
`37 C.F.R. § 42.1D7(b) ..................................................................................................................... 4
`
`37 C.F.R.§42.15, 77 Fed. Reg. No. 157 (Aug. 12,2012) at 48672 ................................................ 3
`
`- 11 -
`
`EXHIBIT A PAGE 6
`
`
`
`Case 1:10-cv-00389-LPS Document 941 Filed 04/04/13 Page 5 of 15 PageID #: 16624
`
`I.
`
`INTRODUCTION AND SUMMARY OF THE ARGUMENT
`
`On March 29, 2013, a panel of three Administrative Patent Judges of the Patent Trial and
`
`Appeal Board ("PTAB") unanimously held in two decisions that Defendant Kyocera Corporation
`
`("K yocera") "demonstrated a reasonable likelihood of prevailing in its challenge" to all of the
`
`asserted claims in this case. (Exhibits A and B). The PTAB's decisions are the result of
`
`petitions for a new PTO procedure Imown as "inter partes review" that Kyocera filed on October
`
`2, 2012, a few weeks after the date that the new inter partes review provisions of the America
`
`Invents Act became effective (September 16,2012). By statute, in these inter partes review
`
`proceedings, the PT AB must issue its final written decision regarding the patentability of the
`
`claims within one year of institution, in this case by March 29, 2014.35 U.S.C. § 316(a)(11).
`
`Because the PT AB has found that it is likely that all of the asserted claims in this case are
`
`unpatentable, Kyocera and its co-defendant, Kyocera Wireless Corp. CKWC"), move to stay this
`
`case (12-989) pending the outcome of these PTO inter partes review proceedings. Kyocera
`
`recognizes that this Court previously denied motions by other defendants to stay their cases
`
`pending inter partes reexaminations. (D.I. 439, 440.) Kyocera did not join in those motions,
`
`however. Kyocera submits that the unique circumstances presented here compel a stay of the
`
`case against Kyocera and KWC.
`
`First, when this court denied the previous motion to stay, 14 out of the 20 claims asserted
`
`by SoftView had not been rejected in the inter partes reexaminations filed by Apple. (D.I. 369 at
`
`42:21-25.) In sharp contrast, in Kyocera's new inter partes review proceedings, the PTAB has
`
`found a likelihood that all of the claims asserted by SoftView in this case are unpatentable.
`
`Second, in opposing the motion to stay pending inter partes reexaminations, SoftView
`
`argued that the inter partes reexaminations would take "three and a half to eight years" (D.I. 369
`
`at 65:3-6), and this Court concluded that "the reexamination proceedings will likely require
`
`EXHIBIT A PAGE 7
`
`
`
`Case 1:10-cv-00389-LPS Document 941 Filed 04/04/13 Page 6 of 15 PageID #: 16625
`
`several years to reach a final resolution." (D.l. 439 at 7.) In sharp contrast, the new inter partes
`
`review statute sets a deadline of March 29, 2014 for the completion of the inter partes review,
`
`aud the scheduling orders issued by the PTAB reflect the same. (Exs. C and D.)
`
`Third, fact discovery is close to completion, so there is no dauger of "memories fading."
`
`(D.l. 369 at 65:18), as SoftView argued in opposition to the other defendauts' previous motion to
`
`stay. Moreover, Kyocera has represented to SoftView that Kyocera does not alter the Android
`
`software provided by Google that is at issue in this case, aud Kyocera does not know what
`
`portions of that software, if any, provide the functionality allegedly covered by SoftView's
`
`claims. Thus, depositions of Kyo cera, which must be taken in Japau, will likely be useless on
`
`the issue of infringement. The only depositions that will matter are the depositions that relate to
`
`the sales of the accused Kyocera products. Kyocera submits that the sales depositions (relating to
`
`damages) should be postponed until closer to the trial of Kyocera's case.
`
`Fourth, under these circumstances, it would be a duplication of effort to undergo expert
`
`discovery. Indeed, parties to a lawsuit pending in this district have recognized that expert
`
`discovery should be stayed pending inter partes review. The Trustees a/Columbia University v.
`
`Illumina, Inc., 12-376-GMS, D.l. 89 (D. Del., April 1, 2013) (Ex. E) (entering stipulation to stay
`
`expert discovery pending inter partes review). Expert discovery on invalidity based on
`
`obviousness or auticipation would largely be duplicative of the expert discovery that will take
`
`place in the inter partes review proceedings.! As this Court recognized (D.I 439 at 16), this court
`
`must hold separate infringement trials. 35 U.S.C. § 299. In that regard, SoftView has more thau
`
`it cau haudle with respect to the seven pending lawsuits against other defendauts. Because
`
`Kyocera has not chauged the portions of the Android operating system that provide the accused
`
`! Depositions of experts who submit declarations are permitted in inter partes review
`proceedings. 35 U.S.C. §316(a)(5)(A).
`
`-2
`
`EXHIBIT A PAGE 8
`
`
`
`Case 1:10-cv-00389-LPS Document 941 Filed 04/04/13 Page 7 of 15 PageID #: 16626
`
`functionality, the infringement issue is likely to be disposed of by trials against other Android
`
`defendants, whose sales of accused devices dwarf the sales of Kyo cera. Further, if the PTAB
`
`invalidates all of the claims, as Kyocera expects, the expense of expert discovery in this case
`
`would be a waste of a substantial amount of money.
`
`Fifth, because both Kyocera and KWC are bound by the estoppel provisions of the inter
`
`partes review proceeding (35 U.S.C. § 315(e», the PTAB decision will greatly simplify the
`
`issues in Kyocera's case. The PTAB ruling will probably issue before any of those other seven
`
`cases are tried. Thus, staying the case against Kyocera should not result in any delay.
`
`For these reasons, Kyocera submits that its motion to stay should be granted.
`
`II. ARGUMENT
`
`A.
`
`Inter Partes Review Under the America Invents Act
`
`The America Invents Act replaced inter partes reexamination in the Patent Office with a
`
`new proceeding called inter partes review. 2 Congress's intent was to provide a "faster, less
`
`costly altemative[] to civil litigation to challenge patents." 3 In sharp contrast to inter partes
`
`reexaminations, which had no deadlines, an inter partes review must be completed within one
`
`year from the date of institution. 35 U.S.C. § 316(a)(lI).
`
`Inter partes review is a Patent Office adjudicative proceeding presided over by a three-
`
`judge panel of the Patent Trial and Appeal Board ("PTAB"). 35 U.S.C. § 316(c). The
`
`proceeding is instituted by the filing of a petition. 35 U.S.C. § 311.4 In this case, Kyocera
`
`timely filed its petitions challenging all of the asserted claims in this case. (Exs. A and B.)
`
`2 Pub. 1. No. 112-29, § 314(a), 125 Stat. 284 (2011).
`3 157 CONGo REC. S952 (daily ed. Feb. 28, 2011) (statement by Senator Grassley).
`4 At the time that Kyocera filed the petitions at issue in this case, the Patent Office filing fee for
`each petition was $27,000.37 C.F.R.§42.15, 77 Fed. Reg. No. 157 (Aug. 12,2012) at 48672.
`
`- 3
`
`EXHIBIT A PAGE 9
`
`
`
`Case 1:10-cv-00389-LPS Document 941 Filed 04/04/13 Page 8 of 15 PageID #: 16627
`
`The patent owner has three months to file a preliminary response to the petition, 35
`
`U.S.C. § 313, in which the patent owner may argue "reasons why no inter partes review should
`
`be instituted." SoftView's preliminary responses to Kyocera's petitions were due by January 7,
`
`2013. 5 SoftView, who is represented in the Patent Office by the same firm that represents it in
`
`this lawsuit (Ex. A at 40; Ex. B at 43), chose not to file a preliminary response.
`
`The PT AB has a period of six months from the date the petitions are filed to decide
`
`whether to institute inter partes review. 35 U.S.C. § 314(b); 37 C.F.R. § 42.l07(b). The PTAB
`
`may institute inter partes review only if the petition and any response filed by the patent owner,
`
`taken together, establish "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(a). With
`
`respect to Kyocera's petitions, the PTAB found a likelihood that all of the claims SoftView
`
`asserts in this case will be held unpatentable.
`
`Once instituted, the PTAB must issue a final written decision within one year. 35 U.S.C.
`
`§ 316(a)(11). Thus, the PTAB decisions on Kyocera's petitions must issue by March 29, 2014 6
`
`A PTAB decision on inter partes review may be appealed only to the Federal Circuit. 35 U.S.C.
`
`§ 141(c); 35 U.S.C. § 319.
`
`B.
`
`Courts Have Granted Stays Pending Inter Partes Review
`
`The inter partes review provisions of the AlA became effective on September 16, 2012.7
`
`Thus, petitions for inter partes review could not be filed before that date. Kyocera filed its
`
`petitions on October 2,2012, just three weeks after the effective date. Because inter partes
`
`review has only been available for a very short time, there are only a few decisions on motions to
`
`5 37 C.F.R. § 42.107(b).
`6 Although the one-year period can be extended for "good cause," the scheduling orders issued
`by the PTAB have set oral argument for January 7, 2014, indicating a high probability that the
`one-year period will not be extended in this case. (Exs. C and D).
`7 Pub. Law 112-29, Sept. 16,2011, Sec. 6(c), 125 Stat. 304.
`
`-4
`
`EXHIBIT A PAGE 10
`
`
`
`Case 1:10-cv-00389-LPS Document 941 Filed 04/04/13 Page 9 of 15 PageID #: 16628
`
`stay pending inter partes review. Those courts that have considered motions to stay pending
`
`inter partes review have granted the motions, in some cases, even before the inter partes review
`
`was instituted. See, e.g., Semiconductor Energy Lab. Co. v. Chimei Innolux Corp., 2012 WL
`
`7170593 (C.D. Cal. Dec. 19,2012) (reasoning, inter alia, that the "amended standards for
`
`granting inter partes review probably results in an even higher likelihood than under the prior
`
`standard that the issues in this action will be simplified by [review]"). The Semiconductor court
`
`based its decision in part on the strengthened inter partes review provisions, which set a strict
`
`time line for considering validity challenges. 8 By statute, the PT AB must issue its decision on
`
`Kyocera's inter parte review proceedings on or before March 29, 20149 Under like
`
`circumstances, other courts have granted motions for stay. Capriola Corp. v. LaRose Industrues
`
`LLC, 8: 12-cv-2346-T-23-TBM, slip op. (M.D. Fla., March 13, 2013) (Ex. F); Bergstrom, Inc. v.
`
`Idle Free Sys., Inc., 3: 12-cv-50254, minute order, (N.D. Ill., March 21, 2013) (D.I. 37) (D.I. (Ex.
`
`G); Clearlamp, LLC v. LKQ Corp., 1 :12-cv-02533, minute order (N.D. Ill., October 18, 2012)
`
`(D.I. 43) (Ex. H), Network Security Solutions, Inc. v. Alcatel-Lucent USA Inc., 6:11-cv-492-
`
`LED-JDL (E.D. Tex.) (unopposed) (Ex. I); Trustees o/the University o/Columbia, supra (Ex.
`
`E).
`
`C.
`
`A Stay Is Appropriate In This Case
`
`1.
`
`Nature And Stage Of The Proceedings
`
`On May 10,2010, PlaintiffSoftView LLC filed a complaint in this Court in which it
`
`asserted infringement of U.S. Patent No. 7,461,353 (the "'353 Patent") against Apple Inc.
`
`("Apple") and AT&T Mobility LLC ("AT&T"). (D.I. 1.) On December 3, 2010, Plaintiff filed a
`
`First Amended Complaint adding claims for alleged infringement of a second patent, U.S. Patent
`
`8 Id, at 6 (noting that the timing is "significantly less than the delay caused by the old
`~rocedure").
`35 U.S.C. §316(a)(11).
`
`- 5
`
`EXHIBIT A PAGE 11
`
`
`
`Case 1:10-cv-00389-LPS Document 941 Filed 04/04/13 Page 10 of 15 PageID #: 16629
`
`No. 7,831,926 (the "'926 Patent"). (D.I. 27.) On September 30, 2011, Plaintiff filed its Second
`
`Amended Complaint against Kyocera, KWC and 16 other defendants who market Android
`
`phones. (D.I. 108.)
`
`On September 16,2011, America Invents Act ("AlA") was signed into law. Pub. L. No.
`
`112-29,125 Stat. 284. The inter partes provisions of the AlA did not become effective until
`
`September 16, 2012, the one year auniversary.lO
`
`On May 4, 2012, this Court granted Defendants' motion to sever the actions against
`
`uruelated defendants to the extent that Defendants sought separate infringement trials. (D.I.
`
`354.) On July 26, 2012, tills Court denied motions to stay pending inter partes reexamination.
`
`(D.I. 439, 440.) This Court directed the clerk to assign separate civil actions to the cases against
`
`uruelated defendant groups. Id. ll On January 10,2013, this Court held a claim construction
`
`hearing. It has not yet issued a decision.
`
`2.
`
`Legal Standard
`
`A district court has the inherent power to control its own docket, including the power to
`
`stay proceedings. See Ethicon, Inc. v. Quigg. 849 F.2d 1422, 1426-27 (Fed. Cir. 1998). In
`
`exercising this discretion, courts weigh the competing interests of the parties. See Landis v. N
`
`Am. Co., 299 U.S. 248, 254 (1936) ("[T]he power to stay proceedings is incidental to the power
`
`inherent in every court to control the disposition of the causes on its docket with economy of
`
`time and effort for itself, for counsel, and for litigants"). Optimal management of the Court's
`
`docket "calls for the exercise of judgment, which must weigh competing interests and maintain
`
`an even balance." Id. at 254-55. In deciding whether to stay litigation pending inter partes
`
`review, courts primarily consider three factors: (1) whether a stay will simplify the issues in
`
`10 See note 5, supra.
`11 SoftView's case against Kyocera Corp. and Kyocera Wireless Corp. was assigned to c.A. No.
`12-989-LPS.
`
`-6
`
`EXHIBIT A PAGE 12
`
`
`
`Case 1:10-cv-00389-LPS Document 941 Filed 04/04/13 Page 11 of 15 PageID #: 16630
`
`question and the trial of the case, (2) whether discovery is complete and whether a trial date has
`
`been set, and (3) whether a stay will unduly prejudice or present clear tactical disadvantage to the
`
`nonmoving party. Semiconductor, 2012 WL 7170593 at * I.
`
`3.
`
`The Status Of This Case Favors A Stay
`
`Fact discovery is n