`
`1R
`
`
`8QLWHG 6WDWHV &RXUW RI $SSHDOV
`IRU WKH )HGHUDO &LUFXLW
`BBBBBBBBBBBBBB
`
`62)7:$5( 5,*+76 $5&+,9( //&
`$SSHOODQW
`
`Y
`
`
`)$&(%22. ,1& /,1.(',1 &25325$7,21 7:,77(5 ,1&
`&URVV$SSHOODQWV
`BBBBBBBBBBBBBB
`
`$SSHDOV IURP WKH 8QLWHG 6WDWHV 3DWHQW DQG 7UDGHPDUN 2IILFH
`3DWHQW 7ULDO DQG $SSHDO %RDUG LQ 1RV ,35 DQG ,35
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`$33(//$17¶6 &20%,1(' 3(7,7,21 )25 3$1(/ 5(+($5,1* $1'
`
`
`
`
`
`
`
`5(+($5,1* (1 %$1&
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`0DUWLQ 0 =ROWLFN
`5RWKZHOO )LJJ (UQVW 0DQEHFN 3&
` WK 6WUHHW 1: 6XLWH
`:DVKLQJWRQ '&
`3KRQH
`
` 9
`
`LFWRU +DUG\
`0LQJKXL <DQJ
`'L1RYR 3ULFH (OOZDQJHU +DUG\ //3
` 1RUWK 0R3DF ([S\ 6XLWH
`$XVWLQ 7;
`3KRQH
`
` $WWRUQH\V IRU $SSHOODQW
`
`SRA - Exhibit 2128
`Facebook, Inc. et al. v. SRA, LLC
`IPR2013-00480
`
`2FWREHU
`
`
`
`
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 2 Filed: 10/11/2016
`
`&(57,),&$7( 2) ,17(5(67
`
`, 0LQJKXL <DQJ FRXQVHO IRU $SSHOODQW 6RIWZDUH 5LJKWV $UFKLYH //&
`FHUWLI\ WKH IROORZLQJ
`
`7KH IXOO QDPH RI WKH SDUW\ UHSUHVHQWHG E\ PH LV 6RIWZDUH 5LJKWV $UFKLYH
`//&
`
`6RIWZDUH 5LJKWV $UFKLYH //& LV WKH UHDO SDUW\ LQ LQWHUHVW
`
`65$ //& LV WKH SDUHQW FRPSDQ\ RI 6RIWZDUH 5LJKWV $UFKLYH //&
`
`$OO SDUHQW FRUSRUDWLRQV DQG SXEOLFO\ KHOG FRPSDQLHV WKDW RZQ SHUFHQW RU
`PRUH RI WKH VWRFN RI WKLV SDUW\ DUH 1RQH
`
`7KH ODZ ILUPV DQG WKH SDUWQHUV DQG DVVRFLDWHV WKDW DSSHDUHG IRU WKLV SDUW\ LQ
`WKH ,QWHU 3DUWHV 5HYLHZ FDVH DW WKH 86 3DWHQW DQG 7UDGHPDUN 2IILFH
`3DWHQW 7ULDO DQG $SSHDO %RDUG RU DUH H[SHFWHG WR DSSHDU LQ WKLV &RXUW DUH
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 5
`
`27+:(// ),** (5167 0$1%(&. 3&
`0DUWLQ 0 =ROWLFN
`1DQF\ - /LQFN
`6RXP\D 3 3DQGD
` WK 6WUHHW 1: 6XLWH
`:DVKLQJWRQ '&
`3KRQH
`
` '
`
`,1292 35,&( (//:$1*(5 +$5'< //3
`9LFWRU * +DUG\
`0LQJKXL <DQJ
` 1RUWK 0R3DF ([S\ 6XLWH
`$XVWLQ 7;
`3KRQH
`
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 3 Filed: 10/11/2016
`Case: 15-1649
`Document: 87
`Page: 3
`Filed: 10/11/2016
`
`'DWH 2FWREHU
`Date: October 11, 2016
`
`
`
`
`5HVSHFWIXOO\ VXEPLWWHG
`Respectfully submitted,
`
`
`
`
`
`
`
`V 0LQJKXL <DQJ
`/S/Minghui Yang
`0LQJKXL <DQJ
`Minghui Yang
`'L1RYR 3ULFH (OOZDQJHU +DUG\ //3
`DiNovo Price Ellwanger & Hardy LLP
` 1RUWK 0R3DF ([SUHVVZD\
`7000 North MoPac Expressway
`6XLWH
`Suite 350
`$XVWLQ 7H[DV
`Austin, Texas 78731
`7HOHSKRQH
`Telephone: 512-539-2626
`)DFVLPLOH
`Facsimile: 512-539-2627
`(PDLO P\DQJ#GSHODZFRP
`E-mail: myang@dpelaw.com
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 4 Filed: 10/11/2016
`
`7$%/( 2) &217(176
`
`&(57,),&$7( 2) ,17(5(67 L
`
`, 67$7(0(17 2) &2816(/
`
`,, $5*80(17 ,1 6833257 2) 3$1(/ 5(+($5,1* $1' 5(+($5,1*
`(1 %$1&
`
`$ 7KHUH DUH 8QUHVROYHG )DFWXDO ,VVXHV &RQFHUQLQJ &ODLP
`
`% &ODLPV DQG +DYH 8QUHVROYHG )DFWXDO ,VVXHV
`
`,,, &21&/86,21
`
`
`
`
`
`
`
`LY
`
`
`
`Case: 15-1649 Document: 87 Page: 5 Filed: 10/11/2016
`
`7$%/( 2) $87+25,7,(6
`
`)HGHUDO &DVHV
`
`$ULRVD 'LDJQRVWLFV Y 9HULQDWD +HDOWK ,QF
` )G )HG &LU
`'HQQLVRQ 0IJ &R Y 3DQGXLW &RUS
` 86
`,Q UH 6DQJ6X /HH
` )G )HG &LU
`7UDQVFOHDQ &RUS Y %ULGJHZRRG 6HUY ,QF
` ) G )HG &LU
`
`
`
`Y
`
`
`
`Case: 15-1649 Document: 87 Page: 6 Filed: 10/11/2016
`
`,
`
`67$7(0(17 2) &2816(/
`
`
`
`%DVHG RQ P\ SURIHVVLRQDO MXGJPHQW , EHOLHYH WKH SDQHO GHFLVLRQ LV FRQWUDU\
`
`WR WKLV &RXUW¶V SUHFHGHQW WKDW KROGV WR UHYHUVH WKH 37$%¶V GHFLVLRQ WKH &RXUW GRHV
`
`QRW LQ WKH ILUVW LQVWDQFH PDNH ILQGLQJV RI IDFW WKDW DUH IRU WKH 37$% WR PDNH EXW
`
`UDWKHU YDFDWHV DQG UHPDQGV LI WKH 37$%¶V GHWHUPLQDWLRQ LV QRW VXSSRUWHG E\
`
`VXEVWDQWLDO HYLGHQFH 6HH HJ $ULRVD 'LDJQRVWLFV Y 9HULQDWD +HDOWK ,QF
`
`)G )HG &LU
`
`GHWHUPLQDWLRQV WKDW DUH IRU WKH DJHQF\ WR PDNH´
`
` )HG &LU
`
`7KLV DSSHDO UHTXLUHV DQ DQVZHU WR WKH IROORZLQJ SUHFHGHQWVHWWLQJ TXHVWLRQ
`
`RI H[FHSWLRQDO LPSRUWDQFH :KHWKHU WKH )HGHUDO &LUFXLW PD\ UHYHUVH WKH 37$%¶V
`
`GHWHUPLQDWLRQ WKDW D FODLP LV SDWHQWDEOH RYHU WKH SULRU DUW E\ LPSOLHGO\ PDNLQJ LWV
`
`RZQ ILQGLQJV WKDW WKH SULRU DUW GLVFORVHV DOO WKH OLPLWDWLRQV RI D FODLP ZKHQ WKH
`
`37$% PDGH QR VXFK ILQGLQJV"
`
`'DWH 2FWREHU
`
`
`
`V 0LQJKXL <DQJ
`0LQJKXL <DQJ
`
`
`
`
`
`,, $5*80(17
`
`5HVSHFWIXOO\ WKH &RXUW¶V RSLQLRQ HUUV EHFDXVH LW UHYHUVHV WKH 37$%¶V
`
`GHFLVLRQ RI SDWHQWDELOLW\ IRU ODFN RI VXEVWDQWLDO HYLGHQFH ZLWKRXW DQ\ IDFWXDO
`
`GHWHUPLQDWLRQ E\ WKH 37$% DV WR ZKHWKHU WKH UHPDLQLQJ OLPLWDWLRQV XQDGGUHVVHG E\
`
`WKH &RXUW DUH SUHVHQW LQ WKH SULRU DUW ,Q SDUWLFXODU WKHUH KDV EHHQ QR VSHFLILF
`
`
` ,I HQ EDQF UHKHDULQJ ZHUH JUDQWHG 3DWHQW 2ZQHU EHOLHYHV WKDW WKH 372 ZRXOG
`VHHN WR ZHLJK LQ RQ WKHVH LPSRUWDQW LVVXHV ZKLFK LPSOLFDWH WKH VFRSH RI WKLV
`&RXUW¶V DXWKRULW\ WR UHYLHZ %RDUG GHWHUPLQDWLRQV
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 7 Filed: 10/11/2016
`Case: 15-1649
`Document: 87
`Page: 7
`Filed: 10/11/2016
`
`IDFWXDO ILQGLQJV ZLWK UHVSHFW WR ZKHWKHU )R[ 60$57¶V FOXVWHU VSOLWWLQJ SURFHVV
`factual findings with respect to whether Fox SMART’s cluster splitting process:
`
` GLVFORVHV WKH DGGLWLRQDO OLPLWDWLRQV RI FODLP ZLWK UHVSHFW WR WKH
`1. discloses the additional limitations of claim 5 with respect to the
`JHQHUDWLQJ VWHS WKDW LV IROORZHG E\ D VXEVHTXHQW GHULYLQJ VWHS
`generating step that is followed by a subsequent deriving step;
`
` WHDFK JHQHUDWLQJ DQG GHULYLQJ VLPLODULW\ OLQNV IRU WKH VDPH VHOHFWHG QRGH
`2.
`teach generating and deriving similarity links for the same selected node,
`DV FODLPHG DQG
`as claimed; and
`
` WHDFK WKH UHPDLQLQJ OLPLWDWLRQV RI WKH FODLPV DQG LQFOXGLQJ D
`3.
`teach the remaining limitations of the claims 1, 5, 15, and 16 including a
`GLVSOD\ VWHS WLHG WR WKH RWKHU VWHSV -$
`display step tied to the other steps (J.A. 02306-07), a numerical limit to
`WKH QXPEHU RI FDQGLGDWH FOXVWHU OLQNV -$
`the number of candidate cluster links (J.A. 02310), the closest candidate
`FOXVWHU OLQNV DUH FKRVHQ RYHU WKH UHPDLQLQJ OLQNV -$
`cluster links are chosen over the remaining links (J.A. 02310-11) and
`FKRRVLQJ WKH WRS UDWHG FOXVWHU OLQNV -$
`choosing the top rated cluster links (J.A. 02321-23).
`
`$V H[SODLQHG EHORZ 65$ VSHFLILFDOO\ UDLVHG WKHVH IDFWXDO LVVXHV LQ LWV EULHILQJ WR
`As explained below, SRA specifically raised these factual issues in its briefing to
`
`ERWK WKH 37$% DQG WKLV &RXUW
`both the PTAB and this Court.
`
`7KH 37$% GHFLGHG WKDW FODLPV DQG ZHUH SDWHQWDEOH EHFDXVH )R[
`The PTAB decided that claims 1, 5, 15, and 16 were patentable because Fox
`
`6PDUW IDLOHG WR GLVFORVH WKH GHULYLQJ OLPLWDWLRQ EHFDXVH LW GLG QRW ³HOLPLQDWH´ DQ\
`Smart failed to disclose the deriving limitation because it did not “eliminate” any
`
`FOXVWHU OLQNV DQG WKDW LW GLG QRW XVH D VXEVHW ZKHQ LW GLVSOD\HG DOO FOXVWHUV -$
`cluster links and that it did not use a subset when it displayed all clusters. J.A.
`
` -$ 7KH 37$% H[SUHVVO\ GLG QRW PDNH IDFWXDO ILQGLQJV WR
`00056-57; J.A. 00062. The PTAB expressly did not make factual findings to
`
`65$¶V DUJXPHQWV DV QR DGGLWLRQDO ILQGLQJV ZDV QHHGHG WR GHFLGH LQ 65$¶V IDYRU
`SRA’s arguments, as no additional findings was needed to decide in SRA’s favor.
`
`,G 7KLV &RXUW GLG QRW DGGUHVV 65$¶V DUJXPHQWV FRQFHUQLQJ WKH XQUHVROYHG IDFWXDO
`Id. This Court did not address SRA’s arguments concerning the unresolved factual
`
`LVVXHV QRU FRXOG LW PDNH IDFWXDO GHWHUPLQDWLRQV DJDLQVW 65$ RQ WKHVH LVVXHV LQ
`issues, 2 nor could it make factual determinations against SRA on these issues in
`
`WKH ILUVW LQVWDQFH 6HH ,Q UH /HH ) G DW ³WKH FRXUW¶V SUDFWLFH LV WR
`the first instance. See In re Lee, 277 F. 3d at 1346 (“the court’s practice is to
`
`YDFDWH WKH DJHQF\¶V RUGHU >ZKHQ LWV UHDVRQLQJ LV VR FULSSOHG DV WR EH XQODZIXO EXW@
`vacate the agency’s order [when its reasoning is so crippled as to be unlawful but]
`
`UHPDQGV IRU IXUWKHU H[SODQDWLRQ >LI@ WKH %RDUG¶V DQDO\VLV GRHV QRW FRPSRUW ZLWK WKH
`remands for further explanation [if] the Board’s analysis does not comport with the
`
`OHJDO UHTXLUHPHQWV IRU GHWHUPLQDWLRQ RI REYLRXV´
`legal requirements for determination of obvious.”). Making such findings ab initio
`
`
` 6HH 'HQQLVRQ 0IJ &R Y 3DQGXLW &RUS 86
`2 See Dennison Mfg. Co. v. Panduit Corp., 475 U.S. 809, 810 (1986) (vacating
`GHFLVLRQ ZKHUH )HGHUDO &LUFXLW IDLOHG WR H[SODLQ LWV UHDVRQLQJ IRU ILQGLQJ
`decision where Federal Circuit failed to explain its reasoning for finding
`OLPLWDWLRQV SUHVHQW LQ YLRODWLRQ RI )5&3 D
`limitations present in violation of FRCP 52(a)).
`
`2
`
`
`
`
`Case: 15-1649 Document: 87 Page: 8 Filed: 10/11/2016
`Case: 15-1649
`Document: 87
`Page: 8
`Filed: 10/11/2016
`
`YLRODWHV WKLV &RXUW¶V SUHFHGHQW WKDW KROGV ³ZH PXVW QRW RXUVHOYHV PDNH IDFWXDO
`violates this Court’s precedent that holds “we must not ourselves make factual
`
`«GHWHUPLQDWLRQV WKDW DUH IRU WKH DJHQF\ WR PDNH´ $ULRVD )G DW
`...determinations that are for the agency to make.” Ariosa, 805 F.3d at 1365.
`
`5DWKHU WKLV &RXUW PXVW ILUVW GHWHUPLQH ZKHWKHU WKH 37$%¶V ILQGLQJ ZDV
`Rather, this Court must first determine whether the PTAB’s finding was
`
`VXSSRUWHG E\ VXEVWDQWLDO HYLGHQFH ZKLFK LW GLG QRW GR ZLWK UHVSHFW WR WKHVH LVVXHV
`supported by substantial evidence (which it did not do with respect to these issues)
`
`DQG LI XQVXSSRUWHG LW PXVW UHPDQG IRU WKH 37$% WR GHFLGH LQ WKH ILUVW LQVWDQFH
`and, if unsupported, it must remand for the PTAB to decide in the first instance.
`
`7KLV &RXUW FDQQRW PDNH IDFWXDO ILQGLQJV IRU WKH ILUVW WLPH WR VXSSRUW D UHYHUVDO
`This Court cannot make factual findings for the first time to support a reversal,
`
`GHSULYLQJ WKH 3DWHQW 2ZQHU KLV DUJXPHQWV WR WKH 37$% DV WR ZK\ KLV SDWHQW LV
`depriving the Patent Owner his arguments to the PTAB as to why his patent is
`
`YDOLG 7KH VLWXDWLRQ ZKHUH D &RXUW ILQGV WKDW WKH 37$%¶V GHWHUPLQDWLRQ RI
`valid. The situation where a Court finds that the PTAB’s determination of
`
`SDWHQWDELOLW\ LV QRW VXSSRUWHG E\ VXEVWDQWLDO HYLGHQFH LV YHU\ GLIIHUHQW IURP RQH
`patentabilz‘ly is not supported by substantial evidence is very different from one
`
`ZKHUH WKH 37$%¶V GHWHUPLQDWLRQ RI XQSDWHQWDELOLW\ LV QRW VR VXSSRUWHG ,Q WKH
`where the PTAB’s determination of unpatentabilily is not so supported. In the
`
`ODWWHU FDVH WKH 37$% QHFHVVDULO\ IRXQG WKDW DOO WKH OLPLWDWLRQV ZHUH VDWLVILHG E\ WKH
`latter case, the PTAB necessarily found that all the limitations were satisfied by the
`
`SULRU DUW +HUH EHFDXVH WKH 37$% GLG QRW ILQG WKH UHPDLQLQJ OLPLWDWLRQV RI
`prior art. Here, because the PTAB did not find the remaining limitations of
`
`GHSHQGHQW FODLPV DQG DQG FODLP SUHVHQW WKH FDVH PXVW EH UHPDQGHG IRU
`dependent claims 5, 15, and 16 and claim 1 present, the case must be remanded for
`
`VXFK LQLWLDO GHWHUPLQDWLRQ E\ WKH 37$% LI WKH &RXUW GRHV QRW ILQG VXEVWDQWLDO
`such initial determination by the PTAB if the Court does not find substantial
`
`HYLGHQFH VXSSRUWLQJ WKH GHFLVLRQ ,QGHHG WKH 372 IRXQG FODLP SDWHQWDEOH VROHO\
`evidence supporting the decision. Indeed, the PTO found claim 5 patentable solely
`
`EHFDXVH WKH OLPLWDWLRQV RI FODLP ZHUH QRW PHW 7KH &RXUW VXPPDULO\ UHYHUVHV
`because the limitations of claim 1 were not met. The Court summarily reverses
`
`FODLP DIWHU ILQGLQJ FODLP ZDV QRW VXSSRUWHG E\ VXEVWDQWLDO HYLGHQFH ZLWKRXW
`claim 5 after finding claim 1 was not supported by substantial evidence without
`
`DQ\ FRQVLGHUDWLRQ RU PHQWLRQ RI WKH OLPLWDWLRQV RI FODLP
`any consideration or mention of the limitations of claim 5.
`
`$OWKRXJK WKH &RXUW¶V RSLQLRQ GRHV QRW RUGHU D UHPDQG LW GRHV QRW H[SOLFLWO\
`Although the Court’s opinion does not order a remand, it does not explicitly
`
`ILQG WKH FODLPV XQSDWHQWDEOH HLWKHU 7R WKH H[WHQW WKDW WKH &RXUW LQWHQGHG WKDW WKH
`find the claims unpatentable either. To the extent that the Court intended that the
`
`FDVH EH UHPDQGHG 65$ UHVSHFWIXOO\ UHTXHVWV FODULILFDWLRQ RI LWV RUGHU
`case be remanded, SRA respectfully requests clarification of its order.
`
`$ 7KHUH $UH 8QUHVROYHG )DFWXDO ,VVXHV &RQFHUQLQJ &ODLP
`A. There Are Unresolved Factual Issues Concerning Claim 5
`
`65$ DUJXHG WR WKH 37$% ³FODLP UHTXLUHV WKDW LQ WKH JHQHUDWLQJ VWHS RI
`SRA argued to the PTAB: “claim 5 requires that in the generating step of
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 9 Filed: 10/11/2016
`
`FODLP µWKH QXPEHU RI FDQGLGDWH FOXVWHU OLQNV DUH OLPLWHG¶ DQG UHTXLUHV WKH VWHS RI
`
`µHOLPLQDWLQJ FDQGLGDWH FOXVWHU OLQNV¶ ZKHUHLQ µWKH FORVHVW FDQGLGDWH FOXVWHU OLQNV
`
`DUH FKRVHQ RYHU WKH UHPDLQLQJ OLQNV¶« 7KHQ WKH UHPDLQLQJ OLQNV«DUH VXEMHFWHG WR
`
`D IXUWKHU GHULYLQJ VWHS«)R[ 60$57 GRHV QRW WHDFK WKHVH IHDWXUHV´ -$
`
`65$ UDLVHG WKHVH IDFWXDO LVVXHV WR WKLV &RXUW 5HVS DW FLWLQJ -$
`
`>7@KH UHFLWHG IHDWXUH RI ³HOLPLQDWLQJ FDQGLGDWH FOXVWHU OLQNV´ UHTXLUHV
`DFWXDOO\ SDULQJ GRZQ JHQHUDWHG FDQGLGDWH FOXVWHU OLQNV« WKH HOLPLQDWHG
`OLQNV KDYH WR EH JHQHUDWHG SULRU WR WKH HOLPLQDWLRQ« %HFDXVH RI WKH
`GHSHQGHQF\ RI FODLP IURP FODLP DV SDUW RI WKH JHQHUDWLQJ VWHS WKH
`FODLP OLPLWDWLRQ ³WKH FORVHVW « DUH FKRVHQ´ PXVW DOVR FRUUHVSRQG WR OLQNV
`WKDW DUH JHQHUDWHG DQG PHHW WKH OLPLWDWLRQV RI WKH JHQHUDWLQJ VWHS UHFLWHG LQ
`FODLP HJ LQFOXGLQJ WKH ³IRU WKH VHOHFWHG QRGH´ UHTXLUHPHQW
`
`7KH &RXUW¶V RSLQLRQ QHYHU DGGUHVVHV WKHVH DUJXPHQWV RU PDNHV IDFWXDO
`
`ILQGLQJV DV WR WKHVH OLPLWDWLRQV DQG WKH 37$% H[SOLFLWO\ VWDWHG LW QHYHU UHDFKHG
`
`FODLP EHFDXVH LW IRXQG LQGHSHQGHQW FODLP SDWHQWDEOH -$ 6LQFH WKLV
`
`&RXUW PD\ QRW PDNH IDFWXDO GHWHUPLQDWLRQV EXW RQO\ UHYLHZ IRU VXEVWDQWLDO
`
`HYLGHQFH VXSSRUWLQJ WKH GHFLVLRQ WKH &RXUW HUUHG E\ UHYHUVLQJ LQ IDYRU RI WKH
`
`'HIHQGDQWV LQ YLHZ RI WKHVH XQUHVROYHG IDFWXDO LVVXHV
`
`7KH DQWLFLSDWLRQ WKHRU\ RI FODLP LV FOHDUO\ HUURQHRXV ZLWK UHVSHFW WR
`
`GLVFORVLQJ WKH OLPLWDWLRQV RI FODLP 7KH &RXUW IRXQG WKDW WKH JHQHUDWLRQ RI WKH
`
`VLPLODULW\ PDWUL[ FRQVWLWXWHG WKH VWHS RI ³JHQHUDWLQJ FDQGLGDWH FOXVWHU OLQNV«´
`
`2SLQLRQ DW 7KH &RXUW UHOLHV XSRQ WKH VHOHFWLRQ RI VLPLODULW\ VFRUHV WR SODFH D
`
`GRFXPHQW LQ D FOXVWHU WR PHHW WKH VWHS RI ³GHULYLQJ DFWXDO FOXVWHU OLQNV«´
`
`>7KH@ VSOLWWLQJ SURFHGXUH « VHOHFWV D VXEVHW RI WKRVH OLQNV >LH SDLUZLVH
`VLPLODULW\ YDOXHV@ EDVHG RQ WKH VWUHQJWK RI WKHLU VLPLODULW\ WR EHFRPH WKH
`DFWXDO FOXVWHU OLQNV LQ QHZ VPDOOHU FOXVWHUV«7KH FDQGLGDWH FOXVWHU OLQN
`EHWZHHQ GRFXPHQWV RQH DQG WKUHH ZLOO EH HOLPLQDWHG ZKHQ GRFXPHQW
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 10 Filed: 10/11/2016
`
`RQH LV SODFHG LQ D VHSDUDWH FOXVWHU IURP GRFXPHQW WKUHH
`
`2SLQLRQ DW 7KH RQO\ HOLPLQDWLRQ RI FDQGLGDWH OLQNV LGHQWLILHG E\ WKH RSLQLRQ LV
`
`H[SOLFLWO\ SHUIRUPHG GXULQJ VHOHFWLRQ RI VLPLODULW\ YDOXHV WR DVVLJQ D GRFXPHQW WR D
`
`FOXVWHU UHOLHG XSRQ E\ WKH &RXUW IRU GLVFORVLQJ WKH GHULYLQJ VWHS 2SLQLRQ DW
`
`7KLV IDLOV WR PHHW FODLPV ¶V H[SOLFLW PRGLILFDWLRQ RI WKH JHQHUDWLQJ VWHS UHFLWLQJ
`
`JHQHUDWLQJ FDQGLGDWH FOXVWHU OLQNV IRU WKH VHOHFWHG QRGH«ZKHUHLQ WKH VWHS
`RI JHQHUDWLQJ WKH FDQGLGDWH FOXVWHU OLQNV FRPSULVHV WKH VWHS RI HOLPLQDWLQJ
`FDQGLGDWH FOXVWHU OLQNV ZKHUHLQ WKH QXPEHU RI FDQGLGDWH FOXVWHU OLQNV DUH
`OLPLWHG DQG WKH FORVHVW FDQGLGDWH FOXVWHU OLQNV DUH FKRVHQ RYHU WKH
`UHPDLQLQJ OLQNV
`
`GHULYLQJ DFWXDO FOXVWHU OLQNV IURP WKH FDQGLGDWH FOXVWHU OLQNV«
`
`
`
`-$ &ULWLFDOO\ FODLP PRGLILHV WKH JHQHUDWLQJ VWHSQRW WKH GHULYLQJ
`
`VWHS ,W UHTXLUHV WKH JHQHUDWLQJ VWHS WR HOLPLQDWH FDQGLGDWH OLQNV EDVHG XSRQ
`
`ZKHWKHU WKH\ DUH ³WKH´ FORVHVW DPRQJ WKH FDQGLGDWHV ³IRU WKH VHOHFWHG QRGH´ 7R
`
`³HOLPLQDWH´ D FDQGLGDWH FOXVWHU OLQN RQH PXVW ILUVW JHQHUDWH LW -$ FLWLQJ
`
`-$
`
`DQG WKHQ FKRRVH WKH FORVHVW OLQNV IRU D VHOHFWHG QRGH -$ FLWLQJ -$
`
`
`
`OLPLWDWLRQ EHFDXVH WKH FOXVWHUV KDYH D OLPLWHG QXPEHU RI GRFXPHQWV WKHUHIRUH
`
`OLQNV 7KHUH LV QR HIIRUW WR QXPHULFDOO\ OLPLW FDQGLGDWHV IRU WKH QRGH )R[ IDLOV WR
`
`³FKRRVH´ RU RWKHUZLVH H[DPLQH JHQHUDWHG FDQGLGDWH VLPLODULW\ OLQNV WKDW DUH FORVHVW
`
`WR WKH VHOHFWHG QRGH DQG ³HOLPLQDWH´ WKRVH WKDW DUH QRW -$
`
`7KHUHIRUH WKH VLPLODULW\ PDWUL[¶V JHQHUDWLRQ FDQQRW GLVFORVH FODLP
`
`7KH UHPDLQLQJ ODQJXDJH RI FODLP VHSDUDWLQJ WKH ³GHULYLQJ´ VWHS IURP WKH
`
`³JHQHUDWLQJ´ VWHS DQG DQWHFHGHQW UHIHUHQFH
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 11 Filed: 10/11/2016
`
`GLIIHUHQW RSHUDWLRQV RQH IROORZLQJ WKH RWKHU 7KH VSHFLILFDWLRQ FRQILUPV WKLV
`
`2QFH WKH FDQGLGDWH FOXVWHU OLQN VHW KDV EHHQ JHQHUDWHG GHULYLQJ WKH
`DFWXDO FOXVWHU OLQNV LV D VLPSOH PDWWHU RI VHOHFWLQJ RU FKRRVLQJ WKH 7 WRS
`UDWHG FDQGLGDWH OLQNV
`
`-$
`
`HOLPLQDWLRQ RI FOXVWHU OLQNV LQ IRUPLQJ WKH FDQGLGDWH OLQN VHW DQG VHOHFWLRQ RI
`
`FDQGLGDWH OLQNV LQ WKH VXEVHTXHQW GHULYLQJ VWHS -$ 7KLV LV VXSSRUWHG
`
`IURP WKH HPERGLPHQW WKDW XVHV ³LQWHUPHGLDWH´ VWHSV IRU JHQHUDWLQJ D QXPHULFDOO\
`
`OLPLWHG ³IRU H[DPSOH WKH WRS ´
`
`7KH VL]H RI WKH FDQGLGDWH FOXVWHU OLQN VHW JHQHUDWHG DW HDFK
`LQWHUPHGLDWH VWHS DIIHFWV WKH VSHHG RI WKH DOJRULWKP«,I WRR PDQ\ FDQGLGDWH
`FOXVWHU OLQNV DUH JHQHUDWHG DW HDFK LQWHUPHGLDWH VWHS WKH DOJRULWKP«LV
`WRR VORZ«LI WRR IHZ FDQGLGDWH FOXVWHU OLQNV DUH JHQHUDWHG DQG WRR
`PDQ\ SDWKV DUH SUXQHG WKHQ &VXE/ 1VXE 1VXE1
`DFFXUDWH VXPPDU\ RI 3VXE/ 1VXE 1VXE1
`FOXVWHU OLQN VHW KDV EHHQ JHQHUDWHG GHULYLQJ WKH DFWXDO FOXVWHU OLQNV
` LV D VLPSOH PDWWHU RI VHOHFWLQJ RU FKRRVLQJ WKH 7 WRS UDWHG FDQGLGDWH
`OLQNV «$IWHU HDFK LWHUDWLRQ WKH FDQGLGDWH FOXVWHU OLQN VHW &VXEL
`PD\ EH SUXQHG VR WKDW LW FRQWDLQV RQO\ WKH WRS FDQGLGDWH FOXVWHU OLQNV
` IRU H[DPSOH WKH WRS
`
`-$
`
`GLVFORVH FODLP ¶V OLPLWDWLRQV WR WKH JHQHUDWLQJ VWHS EHFDXVH LW LV QRW IROORZHG E\
`
`DQ\ SURFHVV WKDW IXUWKHU GHULYHV VLPLODULW\ OLQNV DV DFWXDO FOXVWHU OLQNV DV FODLPHG
`
`$V DUJXHG E\ 65$ -$ DQG 5HVS DW
`
`WKH VHOHFWLRQ RI VLPLODULW\ YDOXHV WR IRUP D FOXVWHU LV WKH ³XQFRXURYHUODS´ WHVW -$
`
`
`
`
` 3HWLWLRQHUV¶ VROH SRVLWLRQ EHIRUH WKH 37$% LGHQWLILHV WKH VHOHFWLRQ RI KLJKO\
`FRUUHODWHG SDLUV DV PHHWLQJ WKH HOLPLQDWLQJ HOHPHQW DQG UHSHDWV WKH VDPH HUURU RI
`LGHQWLI\LQJ RSHUDWLRQV LQ WKH GHULYLQJ VWHS DV PHHWLQJ WKH JHQHUDWLQJ VWHS ³$V
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 12 Filed: 10/11/2016
`
`GRFXPHQWV LQ D FOXVWHU DQG GRHV QRW H[DPLQH DQ\ FDQGLGDWH VLPLODULW\ YDOXHV
`
`DJDLQVW ³FULWHULD´ DV UHTXLUHG E\ WKH 37$%¶V FRQVWUXFWLRQ RI DFWXDO FOXVWHU OLQN
`
`,G -$ $V WKH &RXUW DSWO\ QRWHV DW ³FODLP GRHV QRW UHTXLUH GHULYLQJ
`
`« VXEVHW RI GRFXPHQWV ,QVWHDG LW UHTXLUHV GHULYLQJ D VXEVHW RI FOXVWHU OLQNV´
`
`% &ODLPV +DYH 8QUHVROYHG )DFWXDO ,VVXHV
`
`65$ DUJXHG WR WKH 37$%
`
`3HWLWLRQHUV DOVR KDYH QRW VKRZQ DQ\ZKHUH KRZ FOXVWHU OLQNV DUH JHQHUDWHG
`IRU D VHOHFWHG QRGH DQG WKHQ KRZ DFWXDO FOXVWHU OLQNV DUH GHULYHG IRU WKDW
`VDPH QRGH«7KLV LV D QRQWULYLDO OLPLWDWLRQ DV WKH >VWDWHG JRDO@ ³JRDO LV WR
`VHOHFW WKH WRS RU VWURQJHVW FOXVWHU OLQNV IRU HDFK 1 >LH WKH VHOHFWHG
`QRGH@´ 'LVSDUDWH VWHSV DSSOLHG WR GLIIHULQJ QRGHV LQ D EDWFK SURFHVV GRHV QRW
`GHULYH WKH VWURQJHVW OLQNV IRU D VHOHFWHG QRGH
`
`-$ VHH DOVR -$ ³VR ZKDW \RX GHULYH LV D EXQFK RI GLIIHUHQW
`
`OLQNV XVLQJ DOO NLQGV RI WHVWV DQG WKH\ GRQ
`W OLQH XS« IRU DQ\ SDUWLFXODU QRGH´
`
`65$ DUJXHG WR WKLV &RXUW ³WKH VDPH VHOHFWHG QRGH PXVW EH XVHG IRU WKH µVHOHFWLQJ¶
`
`µJHQHUDWLQJ¶ µGHULYLQJ¶ DQG µGLVSOD\LQJ¶ VWHSV« 3HWLWLRQHUV KDYH QRW VKRZQ KRZ
`
`WKH VWHSV RI WKH FODLP DSSO\ WR WKH VDPH VHOHFWHG QRGH´ 5HVS DW
`
`'HVSLWH UDLVLQJ WKHVH LVVXHV WKH &RXUW GRHV QRW DGGUHVV RU RWKHUZLVH FLWH DQ\
`
`HYLGHQFH GHPRQVWUDWLQJ KRZ WKH FODLP VWHSV DUH SHUIRUPHG LQ UHODWLRQ WR D VLQJOH
`
`³VHOHFWHG QRGH´ 7KH ³VHOHFWHG QRGH´ OLPLWDWLRQ LV QRW HYHQ PHQWLRQHG LQ WKH
`
`DQDO\VLV 1RU GR 3HWLWLRQHUV¶ EULHIV RU ,35 SDSHUV DGGUHVV WKH FODLPHG DOLJQPHQW RI
`
`WKH UHPDLQLQJ VWHSV WKDW PXVW EH DSSOLHG ZLWK UHVSHFW WR WKH ³VHOHFWHG QRGH´²WKXV
`
`
`H[SODLQHG DERYH )R[ 60$57 GLVFORVHV HOLPLQDWLQJ FDQGLGDWH FOXVWHU OLQNV E\
`FKRRVLQJ WKH FORVHVW OLQNV &DQGLGDWH OLQNV WKDW DUH QRW KLJKO\ FRUUHODWHG HQRXJK
`DUH GLVFDUGHG´ -$ -$ -$ 7KH DUJXPHQWV LQ WKHLU
`UHSO\ DSSHOODWH EULHI ZHUH QRW PDGH WR WKH 37$% -$ 1RW RQO\ DUH WKH\
`ZURQJ WKH\ DUH ZDLYHG
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 13 Filed: 10/11/2016
`
`ZDLYHG DQ\ UHVSRQVH WR WKLV LVVXH 7KH 37$% QHYHU SDVVHG RQ WKLV LVVXH EHFDXVH LW
`
`IRXQG FODLP SDWHQWDEOH RQ RWKHU JURXQGV -$ 7KHVH IDFWXDO LVVXHV
`
`PXVW EH UHVROYHG EHIRUH WKH SDWHQWV PD\ EH IRXQG LQYDOLG 3HWLWLRQHUV¶ IDLOXUH WR
`
`DGGUHVV WKH FODLPHG DOLJQPHQW ZLWK UHVSHFW WR WKH GHULYLQJ VWHS KRZHYHU LV
`
`JURXQGV WR DIILUP ,W LV 3HWLWLRQHUV¶ EXUGHQ WR SURYH²QRW 65$¶V WR GLVDSSURYH
`
`$OWKRXJK LW ZDV QRW 65$¶V EXUGHQ WR SURYH FOXVWHU VSOLWWLQJ GRHV QRW
`
`JHQHUDWH FDQGLGDWHV ³IRU WKH VHOHFWHG QRGH´ RU
`
`WKH FDQGLGDWHV ³IRU WKH >VDPH@ VHOHFWHG QRGH´ -$ -$
`
`
`
`WHDFKHV WR DSSO\ WKH FODLP VWHSV LQ UHODWLRQ WR WKH OLQNV RI D VSHFLILF QRGH
`
`&ODLP UHTXLUHV
`
`VHOHFWLQJ D QRGH IRU DQDO\VLV
`
`JHQHUDWLQJ FDQGLGDWH FOXVWHU OLQNV IRU WKH VHOHFWHG QRGH«
`
`GHULYLQJ DFWXDO FOXVWHU OLQNV IURP WKH FDQGLGDWH FOXVWHU OLQNV >IRU WKH
`VHOHFWHG QRGH@«
`
`-$ &ODLP ¶V ³VHOHFWLQJ D QRGH IRU DQDO\VLV´ LV FODLPHG DV D VHSDUDWH
`
`OLPLWDWLRQ SHUIRUPHG EHIRUH WKH VWHS RI ³JHQHUDWLQJ«IRU WKH VHOHFWHG QRGH´ )R[
`
`60$57 GRHV QRW GLVFORVH DQ\ DFW RI ³VHOHFWLQJ D QRGH IRU DQDO\VLV´ SULRU WR WKH
`
`FUHDWLRQ RI WKH VLPLODULW\ PDWUL[ IRU ZKLFK WKH UHPDLQLQJ VWHSV DSSO\ -$
`
`5HVS DW 1RW RQO\ LV WKLV OLPLWDWLRQ QRW PHW WKLV IDLOXUH FDXVHV WKH
`
`UHPDLQLQJ FODLP VWHSV QRW WR DOLJQ IRU DQ\ VLQJOH QRGH
`
`3HWLWLRQHUV DUJXH WKDW WKH 37$% IRXQG WKLV OLPLWDWLRQ SUHVHQW FLWLQJ WKH
`
`37$%¶V GHFLVLRQ ZLWK UHVSHFW WR FODLP 5HSO\ DW 7KH OLPLWDWLRQV RI
`
`FODLP ZHUH PHW E\ WKH DQDO\VLV RI GLUHFW UHODWLRQVKLSV WR FUHDWH VXEYHFWRUV LQ
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 14 Filed: 10/11/2016
`
`)R[ 7KHVLV QRW WKH VLPLODULW\ VFRUHV RI )R[ 6PDUW -$ )R[ 7KHVLV LV
`
`QRW SDUW RI WKH DQWLFLSDWLRQ JURXQG RI FODLP DQG LV LUUHOHYDQW WR LWV DQWLFLSDWLRQ E\
`
`)R[ 60$57 )XUWKHUPRUH WKH 37$%¶V ILQGLQJ ZLWK UHVSHFW WR WKH VHOHFWHG QRGH
`
`RI FODLP KDV QR UHOHYDQFH WR WKH WKHRU\ QRZ VXVWDLQHG RQ DSSHDO ZKLFK UHOLHV
`
`XSRQ VLPLODULW\ OLQNV²UDWKHU VXEYHFWRUV ±IRU WKH JHQHUDWLQJ DQG GHULYLQJ VWHSV
`
`)XUWKHUPRUH WKHUH LV QR WHDFKLQJ RI )R[ 60$57 WR
`
`RWKHUZLVH LGHQWLI\ IURP WKH PDWUL[ D VHW RI FDQGLGDWH VLPLODULW\ OLQNV IRU D VSHFLILF
`
`QRGH 7KH VLPLODULW\ PDWUL[ UHIOHFWV DOO WKH UHODWLRQVKLSV RI XQUHODWHG GRFXPHQWV
`
`ZLWKLQ D FOXVWHU WKDW LV WR EH VSOLW -$
`
`GLVFORVH WKDW FOXVWHU PHPEHUV DUH FKRVHQ EHFDXVH WKH\ DOO DUH OLQNHG WR D VSHFLILF
`
`FRPPRQ GRFXPHQW )R[¶V FOXVWHUV FRQWDLQ QRGHV DQG WKHUHIRUH OLQNV
`
`HDFK RWKHU RU DQ\ FRPPRQ QRGH ,G 'U -DFRE¶V XQUHEXWWHG WHVWLPRQ\ LV
`
`VXEVWDQWLDO HYLGHQFH IRU WKLV FRQFOXVLRQ
`
`,Q IDFW WZR GRFXPHQWV FDQ EH LQ WKH VDPH FOXVWHU WKDW KDYH QR VLPLODULW\
`ZLWK HDFK RWKHU DW DOO DQGRU WKDW KDYH QR UHODWLRQVKLS ZLWK HDFK RWKHU -$
`
`
`>(@YHQ WKH GRFXPHQWV ZLWK WKH KLJKHVW FRFLWDWLRQ VLPLODULW\ WR D JLYHQ
`GRFXPHQW DUH XVXDOO\ QRW WKRVH WKDW DUH FRFLWHG ZLWK WKDW SDUWLFXODU
`GRFXPHQW«'U )R[¶V SRVLWLRQ WKDW XVLQJ FRFLWDWLRQ VLPLODULW\ WR FOXVWHU
`LPSOLHV WKH GHULYDWLRQ RI D VXEVHW RI FRFLWDWLRQ OLQNV >IRU D VHOHFWHG QRGH@ LV
`
`
` 0RUH LPSRUWDQWO\ DV VKRZQ DW 5HVS DW )R[ 60$57¶V GLVFXVVLRQ RI D
`³XVHU TXHU\´ UHIHUV WR D VSHFLILF ³SQRUP´ IHDWXUH XVLQJ D QDWXUDO ODQJXDJH
`VHPDQWLF TXHU\ 7KLV IHDWXUH GRHV QRW XVH )R[ 60$57¶V FOXVWHUV DW DOO RU WKH
`SDLUZLVH VLPLODULW\ VFRUHV UHOLHG XSRQ IRU WKH UHPDLQLQJ HOHPHQWV RI WKH FODLP ,G
`7KH 37$% UHMHFWHG 3HWLWLRQHUV¶ VXEYHFWRU WKHRU\ IRU FODLPV EHFDXVH WKHVH
`FODLPV UHTXLUH D GHULYLQJ VWHS ZKLFK LV QRW SUHVHQW LQ FODLP -$ 7KXV
`WKH 37$%¶V ILQGLQJ ZLWK UHVSHFW WR WKH VHOHFWHG QRGH RI FODLP KDV QR UHOHYDQFH
`WR WKH WKHRU\ QRZ VXVWDLQHG RQ DSSHDO ZKLFK UHOLHV XSRQ VLPLODULW\ OLQNV
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 15 Filed: 10/11/2016
`
`FRPSOHWHO\ LQFRUUHFW -$ Q
`
`WKH )R[ 3DSHUV WHDFK WKDW GRFXPHQWV FDQ EH DVVLJQHG WR WKH VDPH FOXVWHU WKDW
`KDYH QR UHODWLRQVKLS ZLWK HDFK RWKHU ZKDWVRHYHU EHFDXVH«WKH\ HDFK KDYH
`VRPH VLPLODULW\ ZLWK VRPH RWKHU GRFXPHQW LQ WKH FOXVWHU EXW VWLOO KDYH
`QR VLPLODULW\ ZLWK HDFK RWKHU -$ ,,
`
`)R[ UHFRJQL]HV WKHUH DUH ³]HUR VLPLODULW\ OLQNV´ LQ WKH PDWUL[ ZKHQ FRQILQLQJ KLV
`
`FOXVWHU OLQN WKHRU\ WR ³QRQ]HUR´ RQHV ³HDFK QRQ]HUR SDLUZLVH VLPLODULW\ YDOXH LV
`
`D FDQGLGDWH FOXVWHU OLQN´ -$
`
`WKH\ DUH XQUHODWHG 7KH WHVWLPRQ\ DERYH HVWDEOLVKHV WKDW )R[¶V FOXVWHUV FRQWDLQ
`
`GRFXPHQWV WKDW DUH XQUHODWHG WR HDFK RWKHU 7KHVH GRFXPHQWV ZHUH VHOHFWHG IRU WKH
`
`FOXVWHU EHFDXVH RI ³KLJK SDLUZLVH VLPLODULW\´ EHWZHHQ WKH PHPEHUV RI D SDLU HYHQ
`
`WKRXJK WKH PHPEHUV RI WKH SDLU DUH QRW OLQNHG WR DQ\ FRPPRQ GRFXPHQW 7KXV
`
`HYHQ ZKHQ EF RU FF DUH VROHO\ XVHG WR FOXVWHU WKH FOXVWHUV VWLOO FRQWDLQ QRGH DQG
`
`WKHUHIRUH OLQN
`
`2WKHU IDFWRUV DOVR FDXVH WKH FOXVWHUV WR FRQWDLQ QRGHV WKDW DUH QRW OLQNHG WR
`
`HDFK RWKHU LQFOXGLQJ DVVLJQPHQW EHFDXVH RI
`
`-$
`
`VLPLODULW\ -$
`
` DQG RFFXU HYHQ ZKHQ EF RU FF DUH WKH RQO\ IDFWRUV XVHG WR FOXVWHU -$
`
`
`
`VXEYHFWRUV )R[ 60$57 WHDFKHV WKDW WZR GRFXPHQWV WKDW HQG XS LQ WKH VDPH
`
`FOXVWHU ZRXOG QRW JHQHUDOO\ KDYH D FRFLWDWLRQ UHODWLRQVKLS EHWZHHQ WKHP IRU PDQ\
`
`UHDVRQV´
`
`60$57 GHVFULEHV D VXEVHW ZKLFK GRHV QRW LQFOXGH WKHVH RUSKDQV´ -$
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 16 Filed: 10/11/2016
`
`1RGHV DUH RUSKDQHG E\ WKH RYHUODS WHVW EHFDXVH WKH\ ODFN OLQNV ZLWK QRGHV LQ WKH
`
`UHPDLQLQJ FOXVWHUV WR EH DVVLJQHG WR WKHP KHQFH WKH\ KDYH QR SDUHQW FOXVWHU -$
`
`
`
`FOXVWHUV IRU ZKLFK WKH\ DUH QRW EH OLQNHG WR RWKHU QRGHV -$ FLWLQJ -$
`
`
`
`,QGHHG )R[ GLVFORVHV WKDW WKH FRFLWDWLRQ VXEYHFWRU IRU D QRGH RQ DYHUDJH
`
`KDV RQO\ FRQQHFWLRQV LQ WKH HQWLUH GRFXPHQW &$&0 FROOHFWLRQ 5HVS DW
`
`&RQVHTXHQWO\ IHZ LI DQ\ GRFXPHQWV DPRQJ D FOXVWHU RI MXVW PD[ VL]H EHIRUH
`
`VSOLW
`
`RQO\ RUSKDQV -$
`
`FOXVWHU $ EODFN DUURZ LQGLFDWHV D VLPLODULW\ OLQN UHIOHFWLQJ DW OHDVW RQH FRFLWDWLRQ
`
`QRW GLUHFW OLQNV
`
`VLPLODULW\ UHODWLRQVKLS ZLWK DQ\ RWKHU QRGH LQ
`
`WKH FOXVWHU /LQNV $ '
`
`VWURQJHVW VLPLODULW\ VFRUHV DQG DUH DERYH WKH
`
`WKUHVKROG IRU VHOHFWLRQ WR IRUP D FOXVWHU ,Q
`
`WKLV FDVH QRQH RI QRGHV LQ )R[¶V PDWUL[ ZRXOG EHDU D VLPLODULW\ UHODWLRQ WR WKH
`
`VDPH VHOHFWHG QRGH WKXV WKH VLPLODULW\ OLQNV RI WKH PDWUL[ FDQQRW FRQVWLWXWH WKH VHW
`
`RI JHQHUDWHG ³FDQGLGDWH FOXVWHU OLQNV«IRU D VHOHFWHG QRGH´
`
`7KH SODLQ ODQJXDJH ³JHQHUDWLQJ FDQGLGDWH FOXVWHU OLQNV´ IRU WKH VHOHFWHG
`
`QRGH UHTXLUHV WKDW WKH JHQHUDWHG OLQNV WR EH ³OLQNV´ RI WKH VHOHFWHG QRGH 7KH
`
`VSHFLILFDWLRQ UHTXLUHV WKH H[LVWHQFH RI D UHODWLRQVKLS EHWZHHQ WZR QRGHV ³OLQN LV
`
`DQRWKHU QDPH RU LGHQWLILFDWLRQ IRU D UHODWLRQVKLS EHWZHHQ WZR QRGHV´ -$
`
`
`
`
`
`Case: 15-1649 Document: 87 Page: 17 Filed: 10/11/2016
`Case: 15-1649
`Document: 87
`Page: 17
`Filed: 10/11/2016
`
`
`10062(12:66-67). Fig. 3G filrther
`
`PDNHV WKLV FOHDU 7KH VSHFLILFDWLRQ
`makes this clear. The specification
`
`states that NO (2008) is the “destination node [selected] as the node to analyze
`
`2036
`
`03 = F3t02.W3}
`
`VWDWHV WKDW 1
`
`QRGH >VHOHFWHG@ DV WKH QRGH WR DQDO\]H
`
`DQG UHWULHYHV WKH GLUHFW OLQNV IURP WKH
`and retrieves the direct links from the
`
`VHOHFWHG QRGH WR DQ\ RWKHU QRGH´ -$
`selected node to any other node” J.A. 10068(23:46-50). N1, N2, and N3 are all
`
`OLQNHG E\ GLUHFW UHODWLRQVKLSV UHSUHVHQWHG E\ DUURZV DERYH RU LQGLUHFW UHODWLRQVKLSV
`linked by direct relationships represented by arrows above or indirect relationships
`
`D FKDLQ RI GLUHFW OLQNV
`(a chain of direct links) from the selected node. The candidate links are
`
`UHSUHVHQWHG E\ ³&´ DQG DQDO\]H ³DUFV ´ -$
`represented by “C” and analyze “arcs 2036”. J.A. 10067(22:36-39). All of the
`
`JHQHUDWHG OLQNV DUH OLQNHG WR WKH VDPH VHOHFWHG QRGH 1 E\ YLUWXH RI D SDWK RI
`generated links are linked to the same selected node N0 by virtue of a path of
`
`GLUHFW UHODWLRQVKLSV 7KH VSHFLILFDWLRQ IXUWKHU PDNHV FOHDU WKDW WKH FDQGLGDWH OLQN
`direct relationships. The specification fiirther makes clear that the candidate link
`
`VHW DUH OLQNHG WR WKH ³VHOHFWHG QRGH´ E\ DQ H[LVWLQJ UHODWLRQ
`set are linked to the “selected node” by an existing relation:
`
`(DFK SDWK >RI GLUHFW OLQNV@ SURYLGHV VRPH HYLGHQFH WKDW WKH VWDUW QRGH
`Each path [of direct links] provides some evidence that the start node 2008
`1VXE
`(N.sub.0) and destination node 2008 (N.sub.l, N.sub.2, or N.sub.3) are
`UHODWHG WR VRPH H[WHQW >LH OLQNHG@
`related to some extent [i.e., linked].
`
`-$
`J.A. 10067(22:11-15). Thus, Fox’s generating pairwise similarity scores unlinked
`
`WR DQ\ RQH VSHFLILF QRGH GRHV QRW GLVFORVH ³JHQHUDWLQJ«IRU D VHOHFWHG QRGH´
`to any one specific node does not disclose “generating. . .for a selected node.”
`
`(YHQ LI WKH VLPLODULW\ PDWUL[ PHW WKH ³JHQHUDWLQJ´ OLPLWDWLRQV )R[ 60$57
`