`Avaya Inc. v. Network-1 Security Solutions, Inc.
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`TELECONFERENCE
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` 1 UNITED STATES PATENT AND TRADEMARK OFFICE
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` 2 BEFORE THE PATENT AND TRIAL AND APPEAL BOARD
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` 3
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` 4 AVAYA, INC., DELL, INC., )
` SONY CORPORATION OF AMERICA, )
` 5 and HEWLETT-PACKARD CO., )
` )
` 6 Petitioners, )
` )
` 7 vs. ) Case No. IPR2013-00071
` ) U.S. Patent
` 8 NETWORK-1 SECURITY SOLUTIONS, ) No. 6,218,930
` INC., )
` 9 )
` )
`10 Patent Owner. )
` ______________________________)
`11
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`12
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`13
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`14
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`15 Teleconference, taken on behalf of the
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`16 Petitioner Avaya, Inc., at 2040 Main Street, Suite 250,
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`17 Irvine, California, beginning at 10:04 a.m. and ending
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`18 at 10:42 a.m., on Tuesday, January 7, 2014, before
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`19 JOANNA B. BROWN, Certified Shorthand Reporter No. 8570,
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`20 RPR, CRR, RMR.
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`21
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`22
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`23
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`24
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`25
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`2
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`TELECONFERENCE
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` 1 APPEARANCES OF COUNSEL:
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` 2 FOR THE PETITIONER AVAYA, INC.:
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` 3 CROWELL & MORING, LLP
` BY: JEFFREY D. SANOK, ESQ.
` 4 1001 Pennsylvania Avenue N.W.
` Washington, D.C. 20004-2595
` 5 (202) 624-2995
` jsanok@crowell.com
` 6
` FOR THE PETITIONER SONY CORPORATION OF AMERICA:
` 7
` FINNEGAN, HENDERSON, FARABOW,
` 8 GARRETT & DUNNER, LLP
` BY: THERESA WEISENBERGER, ESQ.
` 9 Two Freedom Square
` 11955 Freedom Drive
`10 Reston, Virginia 20190-5675
` (571) 203-2700
`11 theresa.weisenberger@finnegan.com
`
`12 FOR THE PATENT OWNER NETWORK 1 SECURITY SOLUTIONS,
` INC.:
`13
` BUCHANAN INGERSOLL
`14 BY: CHARLES F. WIELAND, III, ESQ.
` ROBERT G. MUKAI, ESQ.
`15 1737 King Street
` Suite 500
`16 Alexandria, Virginia 22314-2727
` (703) 838-6604
`17 charles.wieland@bipc.com
` robert.mukai@bipc.com
`18
` FOR THE PATENT TRIAL AND APPEAL BOARD:
`19
` HONORABLE JONI Y. CHANG, JUSTIN T. ARBES,
`20 AND GLENN J. PERRY
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`21 ALSO PRESENT:
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`22 RAY GABRIEL
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`23
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`24
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`25
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`3
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`TELECONFERENCE
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` 1 Irvine, California; Tuesday, January 7, 2014
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` 2 10:04 a.m.
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` 3
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` 4 HON. JUSTIN ARBES: Hello everyone. This is
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` 5 Judge Arbes from the Patent Trial and Appeal Board. I
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` 6 have with me Judge Chang and Judge Perry. This is a
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` 7 conference call, Case IPR2013-71. Do we have counsel
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` 8 for the petitioner, Avaya, on the line?
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` 9 MR. SANOK: Yes, we do, Your Honor. This is
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`10 Jeff Sanok with Crowell & Moring.
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`11 HON. JUSTIN ARBES: And counsel for any of the
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`12 other petitioners?
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`13 MS. WEISENBERGER: This is
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`14 Theresa Weisenberger for Sony.
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`15 MR. GABRIEL: And Ray Gabriel for HP.
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`16 HON. JUSTIN ARBES: Anyone for Dell, Inc.?
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`17 MR. SANOK: I do not believe Dell is able to
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`18 make the call.
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`19 HON. JUSTIN ARBES: Okay. That's fine. And
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`20 counsel for the patent owner, Network-1?
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`21 MR. WIELAND: Yes. This is Charles Wieland.
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`22 HON. JUSTIN ARBES: Okay. The conference call
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`23 today, which was originally scheduled yesterday, was to
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`24 address the parties' objections to the demonstratives
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`25 that have been served on each other on both sides.
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`4
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`TELECONFERENCE
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` 1 We've received two emails within the last hour with
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` 2 copies of the demonstratives to be discussed, and it
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` 3 looks like there are a number of them. There are 15
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` 4 demonstratives that Avaya is objecting to of
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` 5 Network-1's and four of Avaya's demonstratives to which
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` 6 Network-1 objects. And we've received two emails with
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` 7 copies of those exhibits.
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` 8 Does that represent the universe of what the
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` 9 parties are objecting to at this point?
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`10 MR. SANOK: Yes, it does, Your Honor, and I
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`11 think, as far as the objections to the Network-1
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`12 exhibits, they are sort of grouped. So there's really
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`13 three issues only.
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`14 HON. JUSTIN ARBES: Okay. Before we begin, we
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`15 are going to go through one example for each one. What
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`16 we would tell the parties -- we attempted to do this
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`17 yesterday -- is that the use of demonstratives is
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`18 intended to be merely a visual aid -- merely visual
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`19 aids for hearings for the board and for the other
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`20 parties so that everyone knows exactly what is being
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`21 argued.
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`22 We found that it is particularly useful, when
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`23 you have figures, to have that up on the screen so that
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`24 everyone can see it. They are intended for that use
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`25 only. With that in mind, these are definitely things
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`5
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`TELECONFERENCE
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` 1 that the parties should be able to agree on. There is
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` 2 no reason for large disputes over many issues with
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` 3 demonstratives.
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` 4 We found -- the board has conducted a number
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` 5 of hearings so far. It is the rare case when there are
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` 6 objections to the demonstratives from parties before
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` 7 the hearing. The number of objections yesterday and
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` 8 the number of objections that are continuing today are
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` 9 not the ordinary, we would tell the parties, and is not
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`10 something that the parties -- that the board intends to
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`11 spend a lot of time on, looking at demonstratives
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`12 before the actual hearing when we examine the merits of
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`13 the case itself.
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`14 With that in mind, what we are going to do is
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`15 discuss one example for -- of an objection from each
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`16 party. We have referred the parties to the previous --
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`17 to the order in a previous case, the CBS Interactive
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`18 case where it was determined that there was such a
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`19 large number of objections that the parties were not
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`20 permitted to use the demonstratives that they wanted
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`21 and were only permitted to use pages from the existing
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`22 records as demonstratives at the hearing.
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`23 So what we are going to do is we are going to
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`24 go through an example from each one. Both parties will
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`25 have an opportunity to point to an exhibit that they
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`6
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`TELECONFERENCE
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` 1 object to, and if there is an objectionable -- if there
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` 2 is an objectionable exhibit from that party, then what
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` 3 we will do is do the same thing that the board did in
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` 4 the CBS Interactive case. The parties will only be
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` 5 able to use as demonstratives pages from the record.
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` 6 Obviously, I don't think that's preferable to
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` 7 the parties. This is something that we had hoped that
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` 8 the parties would be able to work out. So -- but
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` 9 that's how we intend to proceed.
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`10 So, with that, we can start with Network-1's
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`11 demonstratives, and what we'll ask Avaya is if you can
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`12 point to one example of a slide of Network-1's that you
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`13 object to. We have the slides up on our screens right
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`14 now. If you can, point to one, and explain the reason
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`15 for your objection to it.
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`16 MR. SANOK: Sure, Your Honor. And it may seem
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`17 that we have a lot of issues with the slides, but I
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`18 will say that both Avaya and the patent owner's
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`19 counsel, we've been working very closely over the last
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`20 day since you've given us your order to really narrow
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`21 the issues. And I really think there's only a couple
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`22 of, as I said, issues to be addressed. We've sort of,
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`23 in a sense, in general, made sure that we'll address
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`24 them. So let me --
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`25 Following what you'd like to do, if you want
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`7
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`TELECONFERENCE
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` 1 to look at Slide 18, which is on page 5 of the exhibit
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` 2 that Network-1 sent you --
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` 3 HON. JUSTIN ARBES: Okay.
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` 4 MR. SANOK: What I want to also say, though,
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` 5 is the slides 14 through 21 of which 18 is one example,
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` 6 those all, in our view, will either stand or fall
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` 7 together if we use the old board parlance. These
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` 8 slides essentially are introducing a new argument, a
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` 9 so-called transistor argument that had never been
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`10 developed or introduced in any of Network-1's papers,
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`11 and it's being done now for the first time in violation
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`12 of the CBS Interactive standard.
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`13 What they are doing -- I'll summarize their
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`14 argument because, as you can see from Slide 18, they
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`15 are highlighting particular transistors. 24A and 24B,
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`16 they are highlighted in red. What they are doing is
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`17 they are now arguing that those transistors essentially
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`18 eat up almost the majority of the voltage supply
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`19 current that comes out of that Power Supply No. 1.
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`20 And in the past, in their original papers, the
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`21 only argument that had been addressed or raised in the
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`22 patent-owner response had been whether there was
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`23 sufficient voltage available at the access device to
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`24 operate the access device. So that was their original
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`25 argument.
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`8
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`TELECONFERENCE
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` 1 Now, what happened here in this series of
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` 2 slides, they are developing this argument based on
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` 3 paragraphs from Dr. Knox's second declaration that was
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` 4 submitted in the reply to the opposition to the motion
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` 5 to amend. So this argument has nothing, of course, to
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` 6 do with the motion to amend. It all has to do with the
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` 7 argument about the delivering of the low-level current.
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` 8 So our position on this series of slides is
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` 9 that this argument should have been introduced in the
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`10 patent-owner response. That was the first instance.
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`11 They had that opportunity to do so to try and show that
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`12 somehow the current was eaten up in the power supply
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`13 versus over the data-signaling lines, which is what
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`14 they are arguing. But they didn't do it there.
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`15 And they then had an opportunity to
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`16 cross-examine Petitioner Avaya's expert on this issue,
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`17 and they conducted a lengthy cross-examination of him
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`18 with respect to these transistors. And they had an
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`19 opportunity at that point to file a motion for
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`20 observation on that cross-examination of
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`21 Dr. Zimmerman's reply declaration.
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`22 HON. JUSTIN ARBES: Okay. That's
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`23 Exhibit 2025?
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`24 MR. SANOK: That is Exhibit 20 -- let's see.
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`25 I'm not exactly sure. It is -- you'll see they
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`9
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`TELECONFERENCE
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` 1 cited -- you'll see on Slide 18 they cited to a portion
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` 2 of Dr. Zimmerman's cross-examination, and it says,
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` 3 "Zimmerman Deposition, page 225," but they didn't give
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` 4 us the exhibit number.
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` 5 HON. JUSTIN ARBES: Well, Counsel, I'm looking
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` 6 at Slide 18. It says that's Exhibit 2025.
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` 7 MR. SANOK: Yes, yes. I'm sorry. You are
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` 8 correct. That's right. So you have -- they
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` 9 cross-examined Petitioner Avaya's reply declarant on
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`10 this issue, and they had an opportunity to file a
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`11 motion for observation on that cross-exam, which is
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`12 what they should have done if they wanted to introduce
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`13 this argument.
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`14 What we believe happened is they did not do
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`15 that because they essentially wanted to follow a
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`16 pattern they've had here of introducing this argument
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`17 at a late stage in the demonstrative evidence so that
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`18 the patent owner or the petitioner, Avaya, would not
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`19 have an opportunity to respond to the motions for
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`20 observation.
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`21 So we have an issue here where they are
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`22 developing this new transistor argument that was never
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`23 in their original patent-owner response, and it was
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`24 first introduced in the very last declaration of
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`25 Dr. Knox, paragraphs 275 through 280, that had nothing
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`TELECONFERENCE
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` 1 to do with the opposition to the motion to amend. And,
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` 2 in fact, the reply to the opposition to the motion to
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` 3 amend never even cited to these particular paragraphs
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` 4 of Dr. Knox because, of course, they didn't have
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` 5 anything to do with the motion to -- the opposition to
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` 6 the motion to amend.
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` 7 HON. JUSTIN ARBES: Okay. Counsel, I'm sorry.
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` 8 If I can stop you. So you obviously have a
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` 9 disagreement with Dr. Knox's second declaration. We
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`10 understand. We had a conference call on that
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`11 previously. We understand that Avaya objects to that
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`12 as being beyond the scope of what was permitted on
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`13 reply. The board will make a determination when it
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`14 prepares the final written decision as to whether or
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`15 not that declaration or portions of it was appropriate.
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`16 But, as of right now, that declaration is part
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`17 of the record, and it looks like Network-1 has cited
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`18 you to a paragraph in that declaration where this
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`19 argument -- this argument was made. So that's part of
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`20 the record right now; right?
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`21 MR. SANOK: Well, it's part of the testimony,
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`22 but the CBS Interactive case stands for the proposition
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`23 that you cannot introduce or develop the testimony in a
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`24 new argument for the first time at the appropriate
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`25 time, and this isn't the appropriate time for it. They
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`TELECONFERENCE
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` 1 should have had a motion for observation on
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` 2 Dr. Zimmerman's cross-exam, or they should have been in
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` 3 their patent-owner response in support of their
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` 4 argument that the low-level current wasn't going to be
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` 5 sufficient.
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` 6 So this is a new argument developed for the
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` 7 first time that the petitioners had no opportunity to
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` 8 respond to. We haven't been able to address it in any
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` 9 paper, in any observation. We should have had an
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`10 opportunity to address it in the response to the
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`11 motions for observation of Dr. Zimmerman's
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`12 cross-examination.
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`13 And this will tie into slides that the patent
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`14 owner has objected to where we anticipated that
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`15 Network-1 may try to -- I hate to use the word, but --
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`16 sandbag us on this issue. And so we added a couple of
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`17 quotations from Dr. Zimmerman's testimony, the
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`18 cross-exam testimony, that we would have been able to
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`19 do in the response to their motion for observation had
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`20 they filed it.
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`21 So, as it stands, if allowed to proceed with
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`22 the argument that they are developing, this transistor
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`23 argument, for the first time in Slides 14 through 21 --
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`24 and the slides all go together because they all
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`25 developed -- it is -- it takes seven slides to develop
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`12
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`TELECONFERENCE
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` 1 the argument for them. If allowed to go, we've never
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` 2 had an opportunity to actually respond to it, and now
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` 3 they are even --
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` 4 And so it really is in violation of the
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` 5 CBS Interactive standards. And that case says in
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` 6 particular that, you know -- it says that the arguments
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` 7 have to be presented at an appropriate time during the
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` 8 trial, and they -- it also says that any party should
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` 9 be able to point specifically to a sentence or two or
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`10 even a paragraph in an appropriate paper to support a
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`11 demonstrative slide.
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`12 This is a situation where, for the first time,
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`13 this argument is being developed, and, again, we have
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`14 not had any opportunity to respond to it. CBS says,
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`15 "Testimony may not be first developed, discussed,
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`16 explained, or summarized for the first time in
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`17 demonstrative slides."
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`18 HON. JUSTIN ARBES: Okay. But, Counsel,
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`19 again, this was -- this was in -- this was presumably
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`20 in Dr. Knox's second declaration; correct?
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`21 This argument was developed in that
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`22 declaration. You object to that, but it was made
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`23 there; right?
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`24 MR. SANOK: It -- yes. They did set forth in
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`25 paragraphs 275 to 280, which are subject to our motion
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`13
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`TELECONFERENCE
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` 1 to exclude, as you know --
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` 2 HON. JUSTIN ARBES: Yes.
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` 3 MR. SANOK: They did make that argument. They
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` 4 never cited to that argument in their reply. Again, it
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` 5 was, you know -- in our view, of course, it's just
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` 6 additional legal briefing they were getting in, in that
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` 7 declaration. So they never cited to it in the reply
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` 8 because this paragraph has nothing to do with the
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` 9 motion to amend.
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`10 HON. JUSTIN ARBES: Okay. But, Counsel, if we
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`11 agree with -- let's say that we agree with you
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`12 eventually that that portion of Dr. Knox's declaration
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`13 was not appropriate and we will not consider that
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`14 argument. That is a risk that Network-1 ran whenever
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`15 you introduced something in a reply declaration. If we
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`16 would -- if we would agree with that, that argument
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`17 would not be considered. What is the prejudice, then?
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`18 Just as if Network-1 would make the argument
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`19 here and that argument will not be considered, it is
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`20 not supported by a declaration, it becomes a waste of
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`21 time. What is the prejudice, then?
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`22 If we eventually agree with you -- and it
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`23 hasn't been decided yet -- but if we eventually agree
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`24 with you, what is the prejudice from having them argue
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`25 it here?
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`14
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`TELECONFERENCE
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` 1 MR. SANOK: Well, the prejudice, of course,
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` 2 here is that this will be argued now for the first time
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` 3 at the hearing, and we are stuck in a situation of do
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` 4 we have to address that in the hearing or not? Do
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` 5 we --
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` 6 We have not had an opportunity to put in any
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` 7 counter-testimony into the record because this is the
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` 8 first time it shows up. That's the real prejudice here
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` 9 is we have not been given any opportunity to submit any
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`10 evidence counter.
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`11 For example, in Slide 18, they are relying on
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`12 parts of the cross-examination of Dr. Zimmerman. Well,
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`13 there are other parts of the cross-examination that
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`14 essentially directly contradict what they are relying
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`15 on, and those are not -- those have not -- there was no
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`16 opportunity at all for us to submit that in.
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`17 So if the board were to allow this testimony
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`18 in at the appropriate time, there is no vehicle to
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`19 submit it, the proper vehicle for Network-1 that should
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`20 have been in their patent-owner response
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`21 unquestionably. And, secondly, they had an opportunity
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`22 to file motion for observation of that cross-exam to
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`23 which we would have then had a responsive pleading, and
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`24 then the issue would have been properly before the
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`25 board.
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`15
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`TELECONFERENCE
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` 1 But this is the first time it's raised, the
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` 2 first time it's developed, this transistor argument,
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` 3 and that is -- that series of slides, 14 through 21,
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` 4 are all the crux of that argument.
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` 5 HON. JUSTIN ARBES: Can we hear from
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` 6 Network-1, please.
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` 7 MR. WIELAND: Yes. We have an argument of the
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` 8 sequence of events.
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` 9 HON. JUSTIN ARBES: Counsel, if I can --
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`10 rather than going into the sequence of events, can
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`11 you -- looking at this slide, why is this slide
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`12 justified? Pointing to evidence in the record where
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`13 the things in this demonstrative were used and
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`14 developed, why is this slide appropriate?
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`15 MR. WIELAND: So, Your Honor, in our response
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`16 and in our motion to amend, one of the fundamental
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`17 arguments that we have is whether or not the current is
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`18 insufficient to operate an access device, and that's
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`19 where their slides were to go to.
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`20 So Network-1 submitted evidence for the
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`21 specific access device in Matsuno to be disclosed as
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`22 being sufficient because it was approximately 48 volts,
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`23 just to hit some key words there.
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`24 What we did or what Avaya did in their reply
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`25 to the first time, they asserted that that 48 volts was
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`16
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`TELECONFERENCE
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` 1 actually only eight volts. And so, in response to
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` 2 Dr. Zimmerman's declaration, Dr. Knox, our expert,
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` 3 contested why Dr. Zimmerman was mistaken, and that's
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` 4 what we are citing to in these slides.
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` 5 So we didn't have an opportunity to reply to
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` 6 Avaya's new argument in their reply, and we have an
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` 7 order in this case saying that a motion to exclude is
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` 8 not appropriate, et cetera. So this is our opportunity
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` 9 to reply to that new argument that came from Avaya's
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`10 reply. That is, Network-1 will be arguing that Avaya
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`11 failed to present the evidence in its position, and
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`12 that evidence was submitted for the first time in
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`13 petitioner's reply. And that should be considered --
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`14 and it was done to make out a prima facie case because
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`15 they had not submitted evidence as to the insufficiency
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`16 of the current in their petition. So they were trying
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`17 to fix a hole that they had in their initial petition.
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`18 So we are going to argue that this should be excluded
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`19 from your deliberations.
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`20 Also, we are not just limiting ourselves to
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`21 standing on that objection. We are also throwing in
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`22 that Network-1 argues that this is incorrect, that the
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`23 analysis that Dr. Zimmerman had was incorrect, and
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`24 Dr. Knox shows us why.
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`25 So these slides are perfectly appropriate.
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`17
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`TELECONFERENCE
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` 1 The arguments were late, introduced by Avaya, and we
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` 2 have this opportunity under the procedures to respond
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` 3 to it at the oral arguments.
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` 4 And as you said, it is evidence of record. So
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` 5 it's really just that one point.
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` 6 MR. SANOK: If I may respond just briefly.
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` 7 HON. JUSTIN ARBES: Briefly, please.
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` 8 MR. SANOK: Network-1 has said they did not
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` 9 have an opportunity to respond. They did. They took
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`10 the cross-examination of Dr. Zimmerman, and they had --
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`11 they should have filed a motion for observation on that
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`12 cross-examination just as the patent or the petitioner
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`13 had to do with Dr. Knox. So that was the opportunity,
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`14 and the regulations were set up such that the
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`15 petitioners would then have had a fair opportunity to
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`16 file a response to the observations.
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`17 MR. WIELAND: I think --
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`18 MR. SANOK: That is the problem.
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`19 MR. WIELAND: -- the board is aware that the
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`20 motion for observations are very, very succinct. It
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`21 would not have been the appropriate vehicle for this.
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`22 MR. SANOK: Excuse me for being interrupted.
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`23 But the motion for observations, if they are an
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`24 appropriate vehicle for the petitioner to deal with the
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`25 last declaration filed by the patent owner, it's the
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`18
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`TELECONFERENCE
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` 1 same for the patent owner. And if you look at
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` 2 IPR2013-0170, that's exactly what happens. The patent
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` 3 owner has an opportunity to file for a motion for
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` 4 observation on the cross-examination of a reply
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` 5 declarant, and that would have given petitioners the
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` 6 fair opportunity to respond. That did not occur.
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` 7 There is no opportunity for us to respond because this
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` 8 is now being introduced, the demonstratives, at the
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` 9 hearing.
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`10 HON. JUSTIN ARBES: Okay.
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`11 MR. SANOK: No one showed up before. You
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`12 won't find transistor arguments anywhere earlier in
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`13 their papers.
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`14 HON. JUSTIN ARBES: Okay. I think we
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`15 understand the parties' positions as to this exhibit.
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`16 Let's move on to discuss one example. Network-1 can
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`17 point to one example from Avaya's demonstratives that
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`18 you object to.
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`19 MR. WIELAND: Well, I have a fundamental
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`20 question, which may alleviate our objections to two of
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`21 the exhibits, and that is, the deposition transcript
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`22 that -- portions of the deposition transcript that have
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`23 not been cited to in any paper or in any declaration,
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`24 is that part of the record that they can draw upon for
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`25 their slides?
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`19
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`TELECONFERENCE
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` 1 HON. JUSTIN ARBES: Has it been filed in the
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` 2 case?
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` 3 MR. WIELAND: Yes.
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` 4 MR. SANOK: Yes.
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` 5 HON. JUSTIN ARBES: Then it is part of the
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` 6 record.
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` 7 MR. WIELAND: Okay. So what I would point to
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` 8 is just the second slide, 15, the second on our list.
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` 9 So that would be, I think, page 2 of the slides that we
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`10 sent over to you.
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`11 HON. JUSTIN ARBES: Okay.
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`12 MR. WIELAND: And this is a very minor point.
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`13 The objection that we have is Figure 11 that they
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`14 highlight there and they add ST point and U point, that
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`15 was referenced to establish that Matsuno is an ISDN
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`16 terminal. They seem to want to use those points to
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`17 argue that there's a voltage differential, which was
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`18 never argued before, and so we are objecting.
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`19 The slide is fine if they only want to
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`20 introduce it to establish that Matsuno is an ISDN, but
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`21 we would object if they are going to use it to suggest
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`22 a new argument that we haven't heard before.
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`23 HON. JUSTIN ARBES: Okay. I think there is a
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`24 difference between the parties in what -- in how the
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`25 demonstratives are being viewed. The material on this
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`20
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`TELECONFERENCE
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` 1 slide appears to come directly from the record as it
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` 2 exists, and speculating about what Avaya might or might
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` 3 not argue at the hearing, I don't think is a proper
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` 4 ground for us to strike this demonstrative.
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` 5 MR. WIELAND: I apologize, Judge Arbes. I
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` 6 should have said that the support that they provided
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` 7 for the slide makes it seem like that's what they want
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` 8 to argue. It's not just speculation. I apologize for
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` 9 not pointing that out.
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`10 MR. SANOK: If I may respond.
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`11 HON. JUSTIN ARBES: Yes. Where in the
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`12 record -- if that is the argument that Avaya tends to
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`13 make, where is that -- where was that argument made in
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`14 the record?
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`15 MR. SANOK: Our support in the original
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`16 petition, we identify the U and ST points as being part
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`17 of the ISDN, and in the reply to the patent-owner
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`18 response, we discuss where -- the 40 volts that are
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`19 going to be on the ST point. So I think every -- as
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`20 you've recognized, paragraph 4 is right out of the
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`21 Matsuno reference. Figure 11 is directly out of the
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`22 Matsuno reference. The original petition referenced it
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`23 all.
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`24 I frankly don't understand what they are
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`25 arguing, but I don't find this objectionable, and I
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`21
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`TELECONFERENCE
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` 1 think that's a big contrast between the argument that
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` 2 they are developing in their slides that we just
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` 3 discussed. This is directly out of the Matsuno patent,
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` 4 and the ST and U points are colored there simply
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` 5 because they are very hard to read otherwise.
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` 6 It would appear they may be objecting to the
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` 7 highlighting, which that would affect everyone's
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` 8 slides.
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` 9 MR. WIELAND: No. Of course, we are not. I
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`10 apologize if I interrupted there, Mr. Sanok. I thought
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`11 you were creating a point that I should respond to.
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`12 One thing that Mr. Sanok said was the Paper 56 that
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`13 they are citing to, that doesn't actually point to the
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`14 ST as being a voltage point.
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`15 And that's really our concern is they may be
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`16 introducing a technical argument that we've never heard
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`17 before, and it seems like that's what they want to do.
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`18 And that's our objection is, yes, Your Honor, you are
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`19 absolutely correct. The slide itself is just content
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`20 from Matsuno, but we thought this was the appropriate
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`21 vehicle to object to them using a demonstrative in a
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`22 manner that is not in accordance with the board's
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`23 prerogative or directive not to introduce new arguments
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`24 at this late stage.
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`25 HON. JUSTIN ARBES: Okay. I think we
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`22
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`TELECONFERENCE
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` 1 understand the parties' positions to this slide. The
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` 2 panel will confer. We'll go and meet and confer
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` 3 briefly and be back shortly.
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` 4 MR. WIELAND: Thank you.
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` 5 (Pause in the proceedings.)
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` 6 HON. JUSTIN ARBES: Okay. The panel has had a
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` 7 chance to confer. Looking at the two example slides
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` 8 that both parties have pointed to, we don't see, in
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` 9 either side, a situation where there is a new argument
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`10 itself in the demonstratives. The demonstratives
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`11 appear to have content directly taken from the record
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`12 rather than, for instance, having new text, making it
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`13 completely new argument, which was the case in the
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`14 CBS Interactive case.
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`15 With that in mind, the parties are free to
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`16 make arguments that they want at the hearing. The
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`17 board will decide the case then based on the existing
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`18 record. If an argument was not made in the record and
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`19 a party's paper in the record, that party runs the risk
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`20 that that argument may not be considered.
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`21 But the board will not parse out what may or
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`22 may not be new argument based on speculation of what
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`23 the parties will argue from the demonstratives. Under
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`24 the circumstances, the demonstratives appear to have
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`25 material directly from the record, and the time when
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`23
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`TELECONFERENCE
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` 1 the board will decide what is a new argument and what
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` 2 is not is not on the fly -- is not now and is not on
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` 3 the fly at the hearing but, rather, when the board
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` 4 reviews the entire record and reaches a decision.
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` 5 One other note we would have for the parties
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` 6 at the hearing is that if a party believes that the
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` 7 opposing party is making a new argument, we will not
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` 8 want the party to object at that time during the other
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` 9 party's presentation. You had the opportunity to rebut
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`10 the other side and any arguments that they make. And,
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`11 again, the board will determine what arguments are new
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`12 and what are not when it reaches a final decision.
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`13 So, with that in mind, the parties should file
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`14 their demonstratives in these proceedings, and none
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`15 will be stricken at this time. Are there any
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`16 questions?
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`17 MR. SANOK: Your Honor, this is Jeff Sanok for
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`18 Avaya. I just have one, I guess, point of order or
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`19 procedure. I'm assuming that -- we understand -- I
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`20 understand your instruction. We can all proceed with
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`21 our current demonstratives. I just want to -- I assume
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`22 that either party is also going to be able to use at
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`23 the hearing the other party's demonstratives since they
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`24 are of record. So I just want to make sure that's
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`25 understood or correct.
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`24
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`TELECONFERENCE
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` 1 HON. JUSTIN ARBES: That's fine. Yes. Both
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` 2 demonstratives will be filed in the case and will
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` 3 become part of the record and may be used by either
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` 4 side of the case as well. Yes.
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` 5 MR. SANOK: Okay.
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` 6 HON. JUSTIN ARBES: And we will have a
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` 7 projector an