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`____________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`____________
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`TOYOTA MOTOR CORPORATION,
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`Petitioner
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`v.
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`AMERICAN VEHICULAR SCIENCES LLC,
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`Patent Owner
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`Patent No. 8,036,788
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`Issue Date: October 11, 2011
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`Title: VEHICULE DIAGNOSTIC OR PROGNOSTIC MESSAGE
`TRANSMISSION SYSTEMS AND METHODS
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`____________
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`PETITIONER’S MOTION FOR OBSERVATIONS ON THE CROSS-
`EXAMINATION OF LAWRENCE KENNEDY
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`Case No. IPR2013-00417
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`IPR2013-00417
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`Pursuant to the scheduling order in this case (Paper 15) and the Office Trial
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`Practice Guide, Petitioner Toyota Motor Corporation (“TMC”) submits this motion
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`for observations on the cross-examination of Patent Owner American Vehicular
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`Sciences, LLC’s (“AVS’s”) reply witness (in support of AVS’s Motion to Amend,
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`Paper No. 29), Lawrence Kennedy, which took place July 3, 2014. The transcript of
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`the cross-examination is submitted as Exhibit 1030. TMC requests that the Board
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`enter this motion and consider the below observations and cited testimony in
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`rendering its decision on AVS’s motion to amend.
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`OBSERVATIONS
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`1.
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`In Exhibit 1030, from page 27, line 9 to page 30, line 6,1 Mr. Kennedy
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`was unable to testify as to whether or not he compared the prior art references to the
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`specific limitations of the proposed amended claims. Mr. Kennedy would only state
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`very generally that he “reviewed the prior art with respect to the ’210 and ’788
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`amended claims to make sure that those amendments were still patentable and that
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`no prior art would invalidate them” and that he “reviewed the prior art to verify that
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`. . . the amended claims were still patentable.” (emphasis added). This testimony is
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`relevant to Mr. Kennedy’s credibility as an expert on validity issues and to the strength
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`of, for instance, his opinions on anticipation and obviousness set forth in paragraphs
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`52-78 of his Reply Declaration (Exhibit 2027). In particular, the testimony is relevant
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`1
`Citations refer to the page numbers in the upper right corner of the pages.
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`1
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`IPR2013-00417
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`because it demonstrates that Mr. Kennedy inappropriately analyzed the issues of
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`anticipation both by failing to compare the claims to the prior art, limitation by
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`limitation, and also by failing to differentiate between the claim limitations that must
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`concededly be present in the prior art, and the limitations that AVS proposes adding
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`via amendment in an attempt to distinguish the prior art.
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`2.
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`In Exhibit 1030, from page 161, line 24 to page 162, line 5, Mr. Kennedy
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`testified that “Bryant does not disclose that . . . sensor data is used to predict service
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`requirements. In 1992, messages indicating that a tire needs to be replaced or rotated
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`in a certain number of miles would typically have been generated based on vehicle
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`mileage, not based on sensor data.” This testimony is relevant to Mr. Kennedy’s
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`opinions relating to the Bryant reference, including those in paragraphs 45-47 and 74-
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`77 of his Reply Declaration (Exhibit 2027). In particular, the testimony shows that
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`Mr. Kennedy improperly based his opinions on the state of the art when Bryant
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`published, and not the state of the art when the invention of the ’788 patent was
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`made.
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`3.
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`In Exhibit 1030, from page 101, line 12 to page 102, line 5, Mr. Kennedy
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`testified that “Low tire pressure is not necessarily caused by a component that has
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`failed or is expected to fail.” And, in Exhibit 1030, from page 118, line 3 to page 120,
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`line 25, when addressing the prior art Bryant article, Mr. Kennedy testified that “Tire
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`rotation is not necessarily identifying a particular component that’s forecast to fail”
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`because “Tire rotation due in 1,000 miles does not specifically identify which tire
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`IPR2013-00417
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`needs to be either repaired or replaced.” (emphasis added) This combined testimony
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`is relevant to Mr. Kennedy’s Reply Declaration, Exhibit 2027, paragraph 18, wherein
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`he declares that his proposed construction for the proposed “repair” or “replace”
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`amendments is consistent with the ’788 patent specification, citing only column 13,
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`lines 30-40 of the ’788 patent (Exhibit 1001). The testimony has bearing on the
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`credibility of Mr. Kennedy’s opinions because it shows his inconsistent analysis and
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`treatment of the prior art versus the ’788 patent with respect to the level of disclosure
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`or support needed in connection with the limitations added to the proposed amended
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`claims.
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`4.
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`In Exhibit 1030, from page 114, line 6, to page 116, line 21, Mr.
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`Kennedy testified that Bryant discloses informing the driver of the need to replace a
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`specific tire and that the “tire rotation” disclosed in Bryant “could be a form of
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`repair” and “could be interpreted as a type of repair.” However, from page 126, line
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`14 to page 127, line 7, Mr. Kennedy testified that “tire rotation is not an identification
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`of a specific component that has failed or is expected to fail and an identification of
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`whether the component that has failed or is expected to fail should be either repaired
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`or replaced” because “tire rotation is a standard and accepted maintenance procedure
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`for vehicles.” This testimony has bearing on the credibility of Mr. Kennedy’s
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`opinions, including those set forth in paragraphs 52-78 of his Reply Declaration
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`(Exhibit 2027), in that it shows the inconsistency of his testimony regarding what
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`3
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`IPR2013-00417
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`constitutes the claimed “identification of whether the at least one component or
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`subsystem should be either repaired or replaced.”
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`5.
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`In Exhibit 1030, on page 198, lines 14-25, Mr. Kennedy testified, in
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`response to questions addressing both the ’210 and ’788 patents, that “The starter is a
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`component. . . . I believe the starter would be a component as described in the ’210
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`patent.” Further, in Exhibit 1030, from page 209, line 6 to page 210, line 3, Mr.
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`Kennedy testified that “The starter system is an assembly of parts and components”
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`and that it meets the definition of “component” that is set forth in the ’210 patent
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`(which is identical to that set forth in the ’788 patent). And, in Exhibit 1030, on page
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`220, lines 17-22, Mr. Kennedy testified that his opinion regarding Crane does not
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`depend on whether a starter system is a “component.” This testimony is relevant to
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`and conflicts with the opinion set forth in paragraph 50 of Mr. Kennedy’s Reply
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`Declaration, Exhibit 2027, to the effect that “Crane does not disclose a system that
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`identifies for any particular component whether the component needs to be repaired
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`as opposed to replaced.” In particular, the testimony shows that, in arriving at this
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`opinion, Mr. Kennedy has interpreted the term “component” in the “identification of
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`whether the at least one component or subsystem should be either repaired or
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`replaced” limitation in a very narrow and inconsistent manner such that it does not
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`embrace components like Crane’s starter system, but instead only very specific parts
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`of such a system that are themselves able to be either repaired or replaced.
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`4
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`Dated: July 10, 2014
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`A. Antony Pfeffer
`Lead Counsel for Petitioner
`Kenyon & Kenyon LLP
`One Broadway
`New York, NY 10004
`Tel: 212-425-7200
`Fax. 212-425-5288
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`IPR2013-00417
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` /A. Antony Pfeffer/
`A. Antony Pfeffer (Reg. No. 43,857)
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`Thomas R. Makin
`Matthew Berkowitz (Reg. No. 57,215)
`K. Patrick Herman
`Back-Up Counsel for Petitioner
`Kenyon & Kenyon LLP
`One Broadway
`New York, NY 10004
`Tel: 212-425-7200
`Fax. 212-425-5288
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`5
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`CERTIFICATE OF SERVICE
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`The undersigned hereby confirms that the foregoing Petitioner’s Motion for
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`Observations on the Cross-Examination of Lawrence Kennedy was served on July 10, 2014 via
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`e-mail upon the following counsel of record for Patent Owner:
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`Thomas J. Wimbiscus
`Scott P. McBride
`Stephanie F. Samz
`twimbiscus@mcandrews-ip.com
`smcbride@mcandrews-ip.com
`ssamz@mcandrews-ip.com
`AVS-IPR@mcandrews-ip.com
`MCANDREWS HELD & MALLOY, LTD.
`500 W. Madison St., 34th Floor
`Chicago, IL 60661
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`__/A. Antony Pfeffer/_________
`A. Antony Pfeffer (Reg. No. 43,857)
`Kenyon & Kenyon LLP
`One Broadway
`New York, NY 10004
`Tel: 212-425-7200
`Fax: 212-425-5288
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