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`2013-1625, -1631, -1632, -1633
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`United States Court of Appeals for the Federal Circuit
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`ERICSSON, INC. and TELEFONAKTIEBOLAGET LM ERICSSON,
`Plaintif-Appellees,
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`v.
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`D-LiNK SYSTEMS, INC., NETGEAR, INC., ACER, INC.,
`ACER AMERICA CORPORATION, and GATEWAY, INC.,
`Defendants-Appellants,
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`and
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`DELL, INC.,
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`and
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`Defendant -Appe llant,
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`TOSHIBA AMERICA INFORMATION SYSTEMS, INC. and TOSHIBA CORPORATION,
`Defendant-Appellants,
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`and
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`INTEL CORPORATION,
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`and
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`BELKIN INTERNATIONAL INC.,
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`Appeal from the United States District Court for the Eastern District of
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`in case no. 10-CV-0473, Chief Judge Leonard Davis
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`Intervenor-Appellant,
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`Defendant.
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`Texas
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`MOTION OF AMICI Wi-Fi CHIP COMPANIES BROADCOM CORPORATION, MARVELL
`SEMICONDUCTOR, INC., AND MEDIATEK INC. FOR LEAVE TO FILE AMICUS BRIEF
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`Dan L. Bagatell
`PERKINS COlE LLP
`2901 N. Central Avenue, Suite 2000
`Phoenix, Arizona 85012
`Phone: (602) 351-8250
`E-mail: DBagatell@perkinscoie.com
`Counsel for Broadcom Corporation
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`Amanda Tessar
`PERKINS COlE LLP
`1900 Sixteenth Street, Suite 1400
`Denver, Colorado 80202
`Phone: (303) 291-2357
`E-mail: ATessar@perkinscoie.com
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`December 23,2013
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`(counsel for other amici listed on next page)
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`Broadcom v. Ericsson
`IPR2013-00601
`Ericsson Ex. 2017
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`
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`Case: 13-1625 Document: 79 Page: 2 Filed: 12/23/2013
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`Donald M. Falk
`MA YER BROWN LLP
`Two Palo Alto Square, Suite 300
`Palo Alto, California 94306
`Phone: (650) 331-2030
`E-mail: dfalk@mayerbrown.com
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`Steven C. Holtzman
`BOIES, SCHILLER & FLEXNER LLP
`1999 Harrison Street, Suite 900
`Oakland, California 94612
`Phone: (510) 874-1001
`E-mail: sholtzman@bsflp.com
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`Counsel for Marell Semiconductor, Inc.
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`Counsel for MediaTek Inc.
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`Case: 13-1625 Document: 79 Page: 3 Filed: 12/23/2013
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`Pursuant to Federal Rule of Appellate Procedure 29(b), Amici Wi-Fi Chip
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`Companies Broadcom Corporation, Marvell Semiconductor, Inc., and MediaTek
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`Inc. move for leave to file the accompanying amicus brief. The appellants have
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`consented to the filing of this brief, but the Ericsson appellees have not consented
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`and may file an opposition to this motion.
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`The proposed brief
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`focuses on a single issue: the reasonableness of
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`the
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`royalty awarded to Ericsson for infringement of three patents allegedly essential to
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`practice the 802.11n version of
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`the 802.11 (Wi-Fi) standard. As companies that
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`design and sell Wi-Fi chips, amici have an important interest in the size of
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`the
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`purportedly "reasonable royalty" awarded in this case. As explained in the brief,
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`any ruling regarding what is a reasonable and nondiscriminatory (RAND) royalty
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`rate for standard-essential Wi-Fi patents wil inevitably affect amici even though
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`Ericsson chose, for its own strategic reasons, not to sue amici in this case.
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`To begin with, the accused technology is technology inside Wi-Fi chips. As
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`noted above, Ericsson claims that practicing the patents-in-suit is essential to
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`compliance with 802.11n version of
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`the standard. Wi-Fi chip companies were key
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`leaders in developing the 802.11 standard, and Broadcom chaired the subcom-
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`mittee responsible for the 802.11n version in particular. Moreover, the 802.11
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`standard was defined and is implemented at the level of
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`the semiconductor chips
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`that amici design and selL. In an effort to increase royalties, Ericsson has chosen to
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`-1-
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`Case: 13-1625 Document: 79 Page: 4 Filed: 12/23/2013
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`sue original equipment manufacturers (OEMs) that buy Wi-Fi chips and incor-
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`porate them into laptops, routers, etc. rather than pursuing the companies that
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`supply the chips that contain the allegedly infringing technology. But the fact
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`remains that Ericsson is targeting Wi-Fi chips designed and sold by amici.
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`Furthermore, the royalties awarded in this case would, if affirmed, affect
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`amici even though they were not parties to the case. Because the accused
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`technology is inside amici's chips, the award would affect demand for those chips
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`and may also provoke indemnification issues. More generally, for reasons
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`explained in the brief, the high and unreasonable royalty awarded here could
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`severely disrupt the Wi-Fi industry and injure companies associated with it.
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`Amici are well positioned to assist the Court in assessing the reasonableness
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`the royalty awarded and whether it comports with Ericsson's commitment to
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`of
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`license under RAND principles. The brief focuses on the practical economics of
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`Wi-Fi chips, which are critical to both the reasonable royalty to which parties
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`would have agreed and the real-world effects of
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`the royalty awarded here. Amici
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`are familiar with the prices, volumes, and profits of Wi-Fi chips and can explain
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`why a "mere" 15~ per unit royalty represents an extraordinary portion of
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`margin on Wi-Fi chips and would translate into an annual tax of
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`the
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`hundreds of
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`milions of dollars. Amici can also explain why a very real royalty stacking
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`-2-
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`Case: 13-1625 Document: 79 Page: 5 Filed: 12/23/2013
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`problem affects an industry in which at least 3,000 U.S. patents may be standard-
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`essential, and why the district court erred in not taking that into account.
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`The proposed amicus brief is short and wil provide helpful context and
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`guidance to the Court. Amici request that the Court accept the brief and sincerely
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`hope that the Court wil consider their views in deciding this important case.
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`Respectfully submitted,
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`PERKINS COlE LLP
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`MA YER BROWN LLP
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`BoIES SCHILLER
`& FLEXNER LLP
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`by /slDan L. Bagatell
`Dan L. Bagatell
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`by /slDonald M. Falk
`Donald M. Falk
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`by Is/Steven C. Holtzman
`Steven C. Holtzman
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`Counsel for Amicus
`Broadcom Corporation
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`Counsel for Amicus
`Marvell Semiconductor, Inc.
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`Counsel for Amicus
`MediaTek Inc.
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`-3-
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`Case: 13-1625 Document: 79 Page: 6 Filed: 12/23/2013
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`CERTIFICATES OF INTEREST
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`Counsel for amicus curiae Broadcom Corporation certifies the following:
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`The full name of every party or amicus curiae represented by me is:
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`Broadcom Corporation
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`The name of the real party in interest (if the party named in the caption is nöt
`the real party in interest) represented by me is:
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`Broadcom Corporation
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`All parent corporations and any publicly held companies that own 10 percent
`the party or amicus curiae represented by me are:
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`the stock of
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`or more of
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`n/a
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`The names of all law firms and the partners or associates that appeared for
`the party or amicus curiae now represented by me in the trial court or are expected
`to appear in this Court are listed below.
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`PERKINS COlE LLP
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`Dan L. Bagatell
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`Amanda Tessar
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`Dated: December 23,2013
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`/slDan L. Bagatell
`Dan L. Bagatell
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`-4-
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`Case: 13-1625 Document: 79 Page: 7 Filed: 12/23/2013
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`Counsel for amicus curiae Marvell Semiconductor, Inc. certifies the
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`following:
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`The full name of every party or amicus curiae represented by me is:
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`Marvell Semiconductor, Inc.
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`The name of
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`the real party in interest (if
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`the real party in interest) represented by me is:
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`the party named in the caption is nót
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`Marvell Semiconductor, Inc.
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`All parent corporations and any publicly held companies that own 10 percent
`the party or amicus curiae represented by me are:
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`the stock of
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`or more of
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`Marvell Semiconductor, Inc. is a subsidiary of
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`Marvell Technology, Inc.
`and Marvell Israel Ltd., and is an indirect subsidiary of
`Marvell Technology Group, Ltd.
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`The names of all law firms and the partners or associates that appeared for
`the party or amicus curiae now represented by me in the trial court or are expected.
`to appear in this Court are listed below.
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`MA YER BROWN LLP
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`Donald M. Falk
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`Dated: December 23,2013
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`/slDonald M. Falk
`Donald M. Falk
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`-5-
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`Case: 13-1625 Document: 79 Page: 8 Filed: 12/23/2013
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`Counsel for amicus curiae MediaTek Inc. certifies the following:
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`The full name of every party or amicus curiae represented by me is:
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`MediaTek Inc.
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`The name of the real party in interest (if the part named in the caption is not
`the real party in interest) represented by me is:
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`MediaTek Inc.
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`All parent corporations and any publicly held companies that own 10 percent
`the party or amicus curiae represented by me are:
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`the stock of
`
`or more of
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`n/a
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`The names of all law firms and the partners or associates that appeared for
`the party or amicus curiae now represented by me in the trial court or are expected
`to appear in this Court are listed below.
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`BoIES, SCHILLER & FLEXNER LLP
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`Steven C. Holtzman
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`Dated: December 23,2013
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`Is/Steven C. Holtzman
`Steven C. Holtzman
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`-6-
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`Case: 13-1625 Document: 79 Page: 9 Filed: 12/23/2013
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`CERTIFICATE OF AUTHORIZATION AND PROOF OF SERVICE
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`In accordance with ECF-3(B), I certify that I am counsel of
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`record for
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`Broadcom Corporation and I obtained the authorization of counsel for Marvell
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`Semiconductor, Inc. and MediaTek Inc. to include their .electronic signatures on
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`this motion.
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`In accordance with Federal Rule of Appellate Procedure 25 and Federal
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`Circuit Rule 25, I further certify that I caused this document to be served via the
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`Federal Circuit's CMlCF system on counsel of
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`record for all parties.
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`I declare under penalty of perjury under the laws of the United States that
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`the foregoing is true and correct.
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`Dated: December 23, 2013, at Phoenix, Arizona.
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`/slDan L. Bagatell
`Dan L. Bagatell
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`88773-0004/LEGAL287846 i 6. i
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`-7-