throbber
CASE IPR2013-00007
`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

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