`
`Paper No.
`Filed: September 17, 2013
`
`
`Filed on behalf of: VirnetX Inc.
`By:
`Joseph E. Palys
`
`Naveen Modi
`Finnegan, Henderson, Farabow,
` Garrett & Dunner, L.L.P.
`11955 Freedom Drive
`Reston, VA 20190-5675
`Telephone: 571-203-2700
`Facsimile: 202-408-4400
`E-mail: joseph.palys@finnegan.com
` naveen.modi@finnegan.com
`
`
`
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`
`
`
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`
`
`
`
`
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`
`
`
`
`
`
`
`
`
`
`APPLE INC.
`Petitioner
`
`v.
`
`VIRNETX INC.
`Patent Owner
`
`
`
`
`
`
`
`Case IPR2013-00349
`Patent 6,502,135
`
`
`
`
`
`
`
`
`
`
`
`
`Patent Owner’s Preliminary Response
`to Petition for Inter Partes Review
`of U.S. Patent No. 6,502,135
`
`
`
`
`
`
`
`Petitioner RPX Corporation - Ex. 1070, p. Cover Page
`
`

`

`Case No. IPR2013-00349
`
`Table of Contents
`
`I.
`
`II.
`
`Introduction ...................................................................................................... 1
`
`The Petition Fails to Meet the Requirements for Instituting an
`Inter Partes Review ......................................................................................... 3
`
`A.
`
`The Petition Must Be Denied Under 35 U.S.C. § 315(b) ..................... 5
`
`B.
`
`C.
`
`D.
`
`1.
`
`2.
`
`3.
`
`Procedural History Relevant to § 315(b) .................................... 6
`
`The Plain Meaning of § 315(b) and the Board’s
`Precedent Bar the Petition ........................................................... 8
`
`The Legislative History Confirms that the Petition Is
`Barred ........................................................................................10
`
`4.
`
`Denying the Petition Is Not Unjust ...........................................12
`
`The Petition Fails to Comply with 37 C.F.R. § 42.104(b)(4) .............13
`
`The Board Should Not Institute Based on the Petition’s
`Redundant Grounds .............................................................................16
`
`The Petition Fails to Establish a Reasonable Likelihood of
`Prevailing as to Any Challenged Claim ..............................................20
`
`1.
`
`2.
`
`3.
`
`4.
`
`5.
`
`The Two Documents Called “Aventail” Cannot
`Anticipate Claims 1-10, 12-15 and 18 ......................................20
`
`Aventail and RFC 1035 Cannot Render Obvious Claims
`4, 5, and 18 ................................................................................22
`
`Aventail and Reed Cannot Render Obvious Claims 6, 14,
`and 15 ........................................................................................22
`
`The Two Documents Called “BinGO” Cannot Anticipate
`Claims 1-10, 12-15, and 18 .......................................................23
`
`BinGO and Reed Cannot Render Obvious Claims 6, 14,
`and 15 ........................................................................................25
`
`III. The Petition’s Claim Constructions Are Flawed and Should Be
`Rejected .........................................................................................................25
`
`i
`
`Petitioner RPX Corporation - Ex. 1070, p. i
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`

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`Case No. IPR2013-00349
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`A. Overview of the ’135 Patent ................................................................26
`
`B.
`
`“Virtual Private Network (VPN)” (Claims 1, 4, 6, 9, 10, 12, and
`18) ........................................................................................................28
`
`C.
`
`“Virtual Private Link” (Claim 13) .......................................................33
`
`D.
`
`“Domain Name” (Claims 1, 3, 10, 13, and 18) ...................................34
`
`E.
`
`F.
`
`“Domain Name Service” (Construe as Part of “Domain Name
`Service (DNS) Request”) ....................................................................36
`
`“Domain Name Service (DNS) Request” (Claims 1, 3-5, and
`18) ........................................................................................................37
`
`G.
`
`“DNS Server” (Claims 2, 8, and 18) ...................................................38
`
`H.
`
`“DNS Proxy Server” (Claims 8 and 10) .............................................39
`
`I.
`
`J.
`
`“Secure [Target] Web Site” (Claims 1, 3, 8, 10, and 18)....................40
`
`“Web Site” (Construe as Part of “Secure [Target] Web Site”) ...........43
`
`K.
`
`“Secure Web Computer” (Claim 10) ..................................................44
`
`L.
`
`“Target Computer” (Claims 1, 4-7, 9-11, and 18) ..............................46
`
`M.
`
`“IP Address Hopping Scheme” (Claim 6) ..........................................47
`
`N.
`
`“Determining” (Claims 1, 3-5, and 18) ...............................................49
`
`O.
`
`“Client Computer” (Claims 1-7, 9-13, 17, and 18) .............................50
`
`P.
`
`“Transparently Creating a Virtual Private Network (VPN)”
`(Claims 1, 10, and 18) .........................................................................53
`
`Q.
`
`“Automatically Initiating the VPN” (Claims 1, 4, 5, and 18) .............54
`
`R.
`
`“Passes Through the Request to a DNS Server” (Claim 8) ................55
`
`S.
`
`T.
`
`“Gatekeeper Computer” (Claims 7 and 10-12) ...................................56
`
`“Allocates VPN Resources” (Claim 7), “Allocates Resources
`for the VPN” (Claim 10), and “Allocating Resources to
`Establish a Virtual Private Link” (Claim 13) ......................................57
`
`ii
`
`Petitioner RPX Corporation - Ex. 1070, p. ii
`
`

`

`
`
`IV.
`
`If Trial Is Instituted, VirnetX Requests an 18-Month Schedule ...................58
`
`V.
`
`Conclusion .....................................................................................................59
`
`Case No. IPR2013-00349
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`
`
`
`
`iii
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`Petitioner RPX Corporation - Ex. 1070, p. iii
`
`

`

`
`
`
`FEDERAL CASES
`
`Table of Authorities
`
`Case No. IPR2013-00349
`
`Page(s)
`
`Advanced Display Sys., Inc. v. Kent State Univ.,
`212 F.3d 1272 (Fed. Cir. 2000) .......................................................................... 24
`
`Apple Inc. v. Int’l Trade Comm’n,
`No. 2012-1338, --- F.3d ----, 2013 WL 4007535
`(Fed. Cir. Aug. 7, 2013) ................................................................................ 21, 24
`
`Baldwin Graphic Sys., Inc. v. Siebert, Inc.,
`512 F.3d 1338 (Fed. Cir. 2008) .......................................................................... 35
`
`Conn. Nat’l Bank v. Germain,
`503 U.S. 249 (1992) ............................................................................................ 10
`
`Electro Sci. Indus., Inc. v. Dynamic Details, Inc.
`307 F.3d 1343 (Fed. Cir. 2002) .......................................................................... 54
`
`Garmin Int’l, Inc. v. Cuozzo Speed Techs. LLC,
`IPR2012-00001 (Jan. 9, 2013) Paper No. 15 ................................................ 26, 32
`
`Graham v. John Deere Co. of Kansas City,
`383 U.S. 1 (1966) ................................................................................................ 22
`
`In re Bigio,
`381 F.3d 1320 (Fed. Cir. 2004) .......................................................................... 32
`
`In re Zletz,
`893 F.2d 319 (Fed. Cir. 1989) ............................................................................ 26
`
`LaRose Indus., LLC v. Capriola Corp.,
`IPR2013-00120 (July 22, 2013) Paper No. 20 ............................................. 16, 19
`
`Liberty Mut. Ins. Co. v. Progressive Cas. Ins. Co.,
`CBM2012-00003 (Oct. 25, 2012) Paper No. 7 ............................................passim
`
`Motorola Solutions, Inc. v. Mobile Scanning Techs., LLC,
`IPR2013-00093 (Apr. 29, 2013) Paper No. 28 ............................................. 26, 32
`
`iv
`
`Petitioner RPX Corporation - Ex. 1070, p. iv
`
`

`

`Case No. IPR2013-00349
`
`
`
`Phillips v. AWH Corp.,
`415 F.3d 1303 (Fed. Cir. 2005) (en banc) ....................................... 26, 37, and 49
`
`Pitney Bowes, Inc. v. Hewlett-Packard Co.,
`182 F.3d 1298 (Fed. Cir. 1999) .......................................................................... 54
`
`Universal Remote Control, Inc. v. Universal Elecs., Inc.,
`IPR2013-00168 (Aug. 26, 2013) Paper No. 9 .................................................. 6, 9
`
`FEDERAL STATUTES
`
`35 U.S.C. § 102 ........................................................................................................ 19
`
`35 U.S.C. § 103 ........................................................................................................ 22
`
`35 U.S.C. § 311 .............................................................................................. 3, 21, 24
`
`35 U.S.C. § 313 .......................................................................................................... 1
`
`35 U.S.C. § 314 .................................................................................................... 4, 20
`
`35 U.S.C. § 315 .................................................................................................passim
`
`FEDERAL REGULATIONS
`
`37 C.F.R. § 42.100(b) .............................................................................................. 25
`
`37 C.F.R. § 42.100(c) ............................................................................................... 59
`
`37 C.F.R. § 42.104(b)(4) ......................................................................... 4, 13, 14, 15
`
`37 C.F.R. § 42.107 ..................................................................................................... 1
`
`OTHER AUTHORITIES
`
`157 Cong. Rec. S5429 (daily ed. Sept. 8, 2011) ................................................ 11, 12
`
`Meeting of the H. Comm. on Judiciary, Transcript of Markup of H.R. 1249
`(Apr. 14, 2011) .................................................................................................... 12
`
`M.P.E.P. § 2111.01(I) .............................................................................................. 32
`
`
`
`
`
`v
`
`Petitioner RPX Corporation - Ex. 1070, p. v
`
`

`

`Case No. IPR2013-00349
`
`I.
`
`Introduction
`
`Patent Owner VirnetX Inc. (“VirnetX” or “Patent Owner”) respectfully
`
`submits this Preliminary Response in accordance with 35 U.S.C. § 313 and
`
`37 C.F.R. § 42.107, responding to the Petition for Inter Partes Review (Paper
`
`No. 1, the “Petition”) filed by Apple Inc. (“Apple”).
`
`This is one of seven inter partes reviews requested by Apple against
`
`VirnetX’s patents. In these inter partes reviews, Apple seeks its third and fourth
`
`opportunities to challenge the validity of U.S. Patent No. 6,502,135 (“the ’135
`
`patent”). Apple’s first opportunity arose in litigation, where it challenged the
`
`validity of certain claims of the ’135 patent in the Eastern District of Texas. But
`
`the court entered final judgment in VirnetX’s favor, and Apple has appealed that
`
`ruling. (Ex. 2002, Jury Verdict Form Against Apple in VirnetX, Inc. v. Apple Inc.,
`
`Case No. 6:10-CV-417 (E.D. Tex. Nov. 6, 2012) (“the ’417 Litigation”); Ex. 2006,
`
`Final Judgment Against Apple in the ’417 Litigation (E.D. Tex. Feb. 28, 2013).)
`
`Apple mounted its second validity challenge by requesting inter partes
`
`reexamination of the ’135 patent during that litigation. That reexamination
`
`(Control No. 95/001,682) is ongoing. Despite having a validity challenge pending
`
`before the Office, Apple attempts to initiate its third and fourth validity challenges
`
`by filing two inter partes review petitions against the ’135 patent (Case No.
`
`IPR2013-00348 (“the ’348 Petition”) and this Petition). But, as explained below,
`
`1
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`Petitioner RPX Corporation - Ex. 1070, p. 1
`
`

`

`
`
`institution of these proceedings is statutorily barred, and there is no reason to give
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`Case No. IPR2013-00349
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`Apple these additional opportunities.
`
`In addition to these challenges by Apple, claims of the ’135 patent have been
`
`challenged and upheld several other times in the Office and in U.S. district court.
`
`In 2010, a jury in the Eastern District of Texas found the asserted claims of the
`
`’135 patent not invalid and infringed by Microsoft Corporation. (Ex. 2007 at 2,
`
`Verdict Form in VirnetX, Inc. v. Microsoft Corp., Case No. 6:07-CV-80 (E.D. Tex.
`
`Mar. 16, 2010).) Concurrent with the trial in Texas, Microsoft sought
`
`reexamination of the ’135 patent, but the Office confirmed all challenged claims
`
`during the proceeding. (See Control No. 95/001,269; Ex. 1001.) More recently,
`
`following a trial in the Eastern District of Texas separate from Apple’s trial in the
`
`’417 Litigation, the court issued a final judgment that the ’135 patent claims
`
`asserted against Cisco Systems, Inc. (“Cisco”) were not invalid. (Ex. 2008, Jury
`
`Verdict Form as to Cisco in the ’417 Litigation (E.D. Tex. Mar. 14, 2013); Ex.
`
`2009, Final Judgment as to Cisco in the ’417 Litigation (E.D. Tex. Mar. 19, 2013.)
`
`There are also two other ongoing proceedings at the Office against the
`
`’135 patent. One is an inter partes reexamination filed by Cisco (Control No.
`
`95/001,679). The Office merged that proceeding with Apple’s Control No.
`
`95/001,682. The second is an inter partes review requested by New Bay Capital
`
`(Case No. IPR2013-00375). As a result, there are now five post-grant challenges
`
`2
`
`Petitioner RPX Corporation - Ex. 1070, p. 2
`
`

`

`Case No. IPR2013-00349
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`
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`before the Office concerning the ’135 patent, a patent which the Office previously
`
`confirmed in reexamination: Apple’s and Cisco’s inter partes reexaminations,
`
`New Bay’s inter partes review petition, and Apple’s two inter partes review
`
`petitions. These proceedings are largely duplicative of one another, and instituting
`
`Apple’s inter partes reviews will only serve to duplicate efforts already undertaken
`
`in litigation and in pending (and prior) reexamination of the ’135 patent. Indeed,
`
`Apple’s Petition proposes rejections based on Aventail alone or in combination
`
`with RFC 1035 or Reed I, and on BinGO, which are also asserted in Apple’s
`
`ongoing reexamination of the ’135 patent. (Compare Petition with Ex. 2010,
`
`Request for Inter Partes Reexamination Under 35 U.S.C. § 311, filed July 10,
`
`2011 in Control No. 95/001,682.)
`
`Apple’s petitions are also defective in a number of ways described below.
`
`As one example, Apple proposes several defective claim constructions that do not
`
`represent the broadest reasonable interpretation of the claims in light of the
`
`specification. Because its proposed rejections are based on incorrect constructions,
`
`Apple cannot demonstrate a reasonable likelihood of prevailing for any claim of
`
`the ’135 patent. Accordingly, the Board should not institute these proceedings.
`
`II. The Petition Fails to Meet the Requirements for Instituting an
`Inter Partes Review
`
`The Board need not waste its resources on Apple’s latest attempt to
`
`challenge the ’135 patent because the Petition does not comply with the
`
`3
`
`Petitioner RPX Corporation - Ex. 1070, p. 3
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`

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`Case No. IPR2013-00349
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`
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`requirements for instituting inter partes review. Each ground will be discussed in
`
`more detail in the sections below, but in short, one defect that disposes of the entire
`
`Petition is that it is time-barred under 35 U.S.C. § 315(b). The Petition was filed
`
`more than one year after Apple was served with a complaint alleging infringement
`
`of the ’135 patent. Accordingly, the Petition should be denied based on the plain
`
`language of the statute, the Board’s precedent, and the relevant legislative history.
`
`Apple also asks the Board to find anticipation based on combinations of
`
`references that are not incorporated by reference into each other, which is contrary
`
`to basic principles of anticipation law. What Apple calls “Aventail” (Ex. 1007) is
`
`actually two separate documents, as even Apple’s declarant acknowledges. And
`
`what Apple calls “BinGO” (Ex. 1008) is also two separate documents, improperly
`
`merged by Apple under an unsupported claim of incorporation by reference.
`
`Apple’s mischaracterization of Aventail and BinGO as unitary references also
`
`dooms its obviousness positions because Apple never takes into account the
`
`separateness of each reference or the differences between each reference and the
`
`’135 patent claims. Thus, Apple cannot establish a reasonable likelihood of
`
`prevailing as to any claim of the ’135 patent. 35 U.S.C. § 314(a).
`
`Apple also violates 37 C.F.R. § 42.104(b)(4) because the Petition fails to
`
`“specify where each element of the claim is found in the prior art patents or printed
`
`publications relied upon.” 37 C.F.R. § 42.104(b)(4). It cites almost exclusively to
`
`4
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`Petitioner RPX Corporation - Ex. 1070, p. 4
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`

`

`Case No. IPR2013-00349
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`
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`three voluminous declarations accompanying the Petition and not to the Aventail or
`
`BinGO references themselves. Moreover, Apple fails to identify the features of
`
`Aventail and BinGO that allegedly correspond to each ’135 claim feature. Instead,
`
`Apple broadly generalizes the disclosure of Aventail and BinGO without
`
`discussing specific aspects of them.
`
`Apple also proposes grounds of rejection that are redundant of one another
`
`and also redundant of the proposed rejections in Apple’s other petition for
`
`inter partes review of the ’135 patent, the ’348 Petition. Apple does not explain
`
`any differences between its parallel proposed rejections, or explain how any
`
`particular proposed rejection improves on another in any way. Addressing these
`
`redundant grounds would significantly burden the Board and Patent Owner, and it
`
`would cause unnecessary delay of the inter partes review proceedings, all without
`
`any added benefit. Liberty Mut. Ins. Co. v. Progressive Cas. Ins. Co., CBM2012-
`
`00003 (Oct. 25, 2012) Paper No. 7.
`
`A. The Petition Must Be Denied Under 35 U.S.C. § 315(b)
`
`The plain language of 35 U.S.C. § 315(b) compels dismissal of the Petition.
`
`The statute prohibits inter partes review of a patent based on a petition filed more
`
`than one year after the petitioner has been served with “a complaint” alleging
`
`infringement of the patent. It is undisputed that VirnetX served Apple with “a
`
`complaint” alleging infringement of the ’135 patent more than one year before the
`
`5
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`Petitioner RPX Corporation - Ex. 1070, p. 5
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`

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`Case No. IPR2013-00349
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`
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`Petition was filed. Apple asks the Board to ignore this fact and instead focus on a
`
`later-served complaint, which Apple contends resets the one-year time period for
`
`filing a petition for inter partes review. The Board has already addressed this same
`
`issue in another proceeding, where it rejected Apple’s view and adopted VirnetX’s
`
`interpretation of § 315(b). Universal Remote Control, Inc. v. Universal Elecs.,
`
`Inc., IPR2013-00168 (Aug. 26, 2013) Paper No. 9. As discussed below, the
`
`Board’s and VirnetX’s interpretation is also supported by the relevant legislative
`
`history.
`
`Apple’s argument that dismissing the Petition would “unfairly foreclose use
`
`of the IPR system” also rings hollow given that Apple has repeatedly availed itself
`
`of the district court and the Office to challenge the ’135 patent, including in a still-
`
`pending inter partes reexamination proceeding.1
`
`1. Procedural History Relevant to § 315(b)
`
`VirnetX filed its first complaint against Apple on August 11, 2010, in the
`
`’417 Litigation, alleging infringement of claims 1, 3, 7-10, and 12 of the ’135
`
`patent (“the August 2010 Complaint”). (Ex. 2001, VirnetX Inc.’s Original
`
`Complaint in the ’417 Litigation (E.D. Tex. Aug. 11, 2010).) VirnetX served the
`
`
`1 Apple’s Petition should also not be joined with New Bay’s, if instituted, for
`
`the reasons discussed in VirnetX’s Opposition to Apple’s Motion for Joinder, filed
`
`August 28, 2013.
`
`6
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`Petitioner RPX Corporation - Ex. 1070, p. 6
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`

`

`
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`complaint on Apple on August 18, 2010. (Ex. 2011, Proof of Service of VirnetX’s
`
`Original Complaint on Apple in the ’417 Litigation (E.D. Tex. Aug. 18, 2010).)
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`Case No. IPR2013-00349
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`As explained above, in the litigation involving this complaint, which was
`
`amended2 at times throughout the case, Apple challenged the validity of the ’135
`
`patent. It did not succeed. A jury upheld the validity of the asserted claims, and
`
`the district court entered judgment finding those claims valid. (Exs. 2002, 2006.)
`
`After obtaining the favorable jury verdict, VirnetX served Apple with
`
`another complaint (Ex. 1050) on December 31, 2012 (“the 2012 Complaint”).
`
`(Ex. 2013 at 2, Proof of Service of VirnetX Inc.’s Complaint in VirnetX Inc. v.
`
`Apple Inc., No. 6:12-CV-00855 (E.D. Tex. Dec. 31, 2012).) The 2012 Complaint
`
`asserts the same ’135 patent claims as asserted in the August 2010 Complaint, but
`
`it alleges infringement by several Apple products that were not included in the
`
`earlier complaint. (Ex. 1050 at 4-11.)
`
`Concurrent with the above litigations, Apple has also challenged the validity
`
`of the ’135 patent in the Office by initiating an inter partes reexamination Control
`
`
`2 In the ’417 Litigation, VirnetX served Apple with amended complaints
`
`alleging infringement of the ’135 patent on February 4, 2011, and April 5, 2011.
`
`(Ex. 2012, Plaintiff VirnetX Inc.’s First Amended Complaint in the ’417 Litigation
`
`(E.D. Tex. Feb. 4, 2011); Ex. 2005, Plaintiff VirnetX Inc.’s Second Amended
`
`Complaint in the ’417 Litigation (E.D. Tex. Apr. 5, 2011).)
`
`7
`
`Petitioner RPX Corporation - Ex. 1070, p. 7
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`

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`Case No. IPR2013-00349
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`
`
`No. 95/001,682, which remains pending. Although Apple has availed itself of
`
`several opportunities to challenge the validity of the ’135 patent, it now seeks two
`
`more opportunities by filing the Petition at issue here and a separate petition for
`
`inter partes review in Case No. IPR2013-00348. These two petitions were filed in
`
`June 2013, long after Apple was first served with a complaint alleging
`
`infringement of the ’135 patent.
`
`2. The Plain Meaning of § 315(b) and the Board’s Precedent Bar
`the Petition
`
`Under 35 U.S.C. § 315(b), “[a]n inter partes review may not be instituted if
`
`the petition requesting the proceeding is filed more than 1 year after the date on
`
`which the petitioner, real party in interest, or privy of the petitioner is served with a
`
`complaint alleging infringement of the patent.” 35 U.S.C. § 315(b) (emphasis
`
`added). The language “a complaint” is not restrictive, and Apple agrees that it
`
`means “any complaint.” (Petition at 2.) Thus, the directive of § 315(b) is clear: if
`
`a petition is filed more than one year after the petitioner is served with any
`
`complaint, inter partes review may not be instituted. Here, Apple filed its Petition
`
`in June 2013, more than one year after it was served with the August 2010
`
`Complaint. Under the plain language of § 315(b), therefore, an inter partes review
`
`may not be instituted and Apple’s Petition must be dismissed.
`
`Apple contends that VirnetX’s service of the later 2012 Complaint resets the
`
`clock for purposes of § 315(b), making its Petition timely. (See Petition at 2.)
`
`8
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`Petitioner RPX Corporation - Ex. 1070, p. 8
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`

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`Case No. IPR2013-00349
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`
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`Apple’s proposed statutory construction, however, turns § 315(b) on its head.
`
`According to Apple, “a petition filed within 1 year of the date any complaint
`
`alleging infringement of the patent is served on a petitioner is timely . . . .”
`
`(Petition at 2, emphases added.) But § 315(b) does not permissively define when a
`
`petition “is timely.” Instead, it restrictively prohibits untimely petitions, stating
`
`that an inter partes review “may not be instituted” if the petition is “filed more
`
`than 1 year after” the petitioner has been served with a complaint alleging
`
`infringement. See 35 U.S.C. § 315(b) (emphases added). Apple’s attempt to
`
`rewrite § 315(b)’s statutory bar into a permissive, standing-creating provision is
`
`contrary to the statute’s plain language and structure.
`
`Apple also argues that Ҥ 315(b) does not specify a one-year deadline that
`
`runs from the date of the first complaint served on a petitioner.” (Petition at 2.)
`
`But the statute need not do so because it specifies that the one-year deadline runs
`
`from service of “a complaint,”
`
`i.e., any complaint.
`
` Apple’s proposed
`
`constructioni.e., the one-year period is reset each time a patent owner serves a
`
`complaintwould require rewriting § 315(b) to replace “a complaint” with “the
`
`most recent complaint.” This is not what the statute says, and Apple cannot
`
`rewrite it to say so.
`
`Apple’s argument also conflicts with the Board’s precedent construing
`
`§ 315(b). In Universal Remote Control, IPR2013-00168 Paper No. 9, the Board
`
`9
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`Petitioner RPX Corporation - Ex. 1070, p. 9
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`

`

`Case No. IPR2013-00349
`
`
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`considered whether the one-year bar under § 315(b) would be reset if a second
`
`infringement complaint was served by the patent owner on the petitioner. The first
`
`complaint was served in 2001 while the second complaint was served in 2012. Id.
`
`at 3. Although the second complaint was served less than 12 months before the
`
`petitioner filed its petition for inter partes review, the first complaint was not. Id.
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`The Board rejected the petition as time-barred under § 315(b). Id. at 4. In
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`particular, the Board disagreed that “the one-year grace period applies only to the
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`last of a chain of multiple lawsuits or that the filing of a later lawsuit renders the
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`service of a complaint in an earlier lawsuit to be a nullity as Petitioner argues.” Id.
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`Here, Apple’s request that the Board consider only the 2012 Complaint, and ignore
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`the August 2010 Complaint, is directly contrary to the Board’s decision in
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`Universal Remote Control.
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`3. The Legislative History Confirms that the Petition Is Barred
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`Apple also asserts that resetting the one-year period with each new
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`complaint would be consistent with Congress’s design for the AIA. Because the
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`plain language of the statute is clear, however, it is unnecessary to rely on
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`legislative history or other extrinsic evidence to show congressional intent. Conn.
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`Nat’l Bank v. Germain, 503 U.S. 249, 253-54 (1992) (“We have stated time and
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`again that courts must presume that a legislature says in a statute what it means and
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`means in a statute what it says there. When the words of a statute are
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`10
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`Petitioner RPX Corporation - Ex. 1070, p. 10
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`unambiguous, then, this first canon is also the last: ‘judicial inquiry is complete.’”
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`Case No. IPR2013-00349
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`(citations omitted)).
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`To the extent the Board considers the legislative history, it supports
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`VirnetX’s interpretation, not Apple’s. When adopting the one-year bar in § 315(b)
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`instead of a proposed six-month deadline, Congress made clear that “it is important
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`that the section 315(b) deadline afford defendants a reasonable opportunity to
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`identify and understand the patent claims that are relevant to the litigation. It is
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`thus appropriate to extend the section 315(b) deadline to one year.” 157 Cong.
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`Rec. S5429 (daily ed. Sept. 8, 2011) (statement of Sen. Kyl) (emphasis added).
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`Thus, Congress intended the one-year period to allow defendants a
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`reasonable opportunity to identify and understand the relevant patent claims. Here,
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`Apple has already litigated claims of the ’135 patent to a verdict based on the
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`August 2010 Complaint and its subsequent amendments, and the 2012 Complaint
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`involves those same ’135 patent claims. In addition, Apple filed inter partes
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`reexaminations on all claims of those patents by October 2011. Apple cannot
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`claim that it needed until its 2013 petition filing date to identify and understand the
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`relevant claims of the ’135 patent.
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`Apple’s arguments also contravene Congress’s intent. Congress sought to
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`avoid an open-ended process in which a petitioner could harass a patent owner
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`with serial challenges. Congress noted that “[t]he inter partes proceeding in H.R.
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`11
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`Case No. IPR2013-00349
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`1249 has been carefully written to balance the need to encourage its use while at
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`the same time preventing the serial harassment of patent holders.” Ex. 2003 at 72,
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`Meeting of the H. Comm. on Judiciary, Transcript of Markup of H.R. 1249
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`(Apr. 14, 2011) (statement of Judiciary Committee Chairman Lamar Smith).
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`Congress was also mindful of the “enhanced estoppels” built into the new statute,
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`and determined that one year from the date of service of a complaint for
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`infringement was sufficient for a defendant to determine whether to seek an inter
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`partes review. See 157 Cong. Rec. S5429 (daily ed. Sept. 8, 2011) (statement of
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`Sen. Kyl).
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`Nothing in the legislative history of § 315(b) suggests that Congress
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`intended to reset the one-year clock every time a patent owner served a defendant
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`with a new complaint involving the same patent. To the contrary, Congress
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`wanted to provide a reasonable, but limited, time in which a defendant could elect
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`to initiate an inter partes review proceeding after being accused of infringement.
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`Apple’s more expansive view of § 315(b) conflicts with congressional intent.
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`4. Denying the Petition Is Not Unjust
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`Apple also argues that “reading § 315(b) to foreclose [these] petition[s]
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`based on the August 2010 complaint would be particularly unjust in this case”
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`because IPR proceedings were unavailable prior to September 16, 2012. (Petition
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`at 3.) Apple’s cries of injustice lack merit because Apple has, and continues to
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`12
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`Case No. IPR2013-00349
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`avail itself of, multiple avenues to challenge the ’135 patent, including those in
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`district court and in pending inter partes reexamination. Given its ongoing inter
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`partes reexamination—the pre-AIA counterpart to inter partes review—Apple
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`cannot claim that dismissing its Petition would be unjust or leave it without
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`recourse.
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`B.
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`The Petition Fails to Comply with 37 C.F.R. § 42.104(b)(4)
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`Apple’s Petition is also defective for reasons apart from the time bar. A
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`petition for inter partes review “must specify where each element of the claim is
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`found in the prior art patents or printed publications relied upon.” 37 C.F.R.
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`§ 42.104(b)(4). Apple’s Petition fails to satisfy this requirement. Far from
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`identifying where claim elements are found in the asserted prior art, the Petition
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`almost never cites the asserted references. Instead, the Petition discusses almost
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`exclusively its three accompanying declarations. This voluminous body of
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`declarant testimony serves to obscure rather than “specify” the grounds of
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`invalidity asserted in the Petition. Moreover, for many claim features, the Petition
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`broadly generalizes the asserted prior art, and in doing so, fails to identify the
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`specific aspects of the references relied upon. The Board and Patent Owner are left
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`to piece together, or simply guess at, the specific grounds of invalidity.
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`The Petition contains scant citations to the Aventail, RFC 1035, Reed, and
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`BinGO references themselves. Instead, the Petition relies almost entirely on three
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`13
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`Petitioner RPX Corporation - Ex. 1070, p. 13
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`Case No. IPR2013-00349
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`accompanying expert declarations (Exs. 1003, 1005, 1006), totaling 307 pages.
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`For many claims, including independent claims 1, 13, and 18, and dependent
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`claims 2, 4-9, and 12, the Petition contains no citations whatsoever to Aventail.
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`The Petition cites BinGO only once, for claim 13, and it does not cite Reed or RFC
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`1035 at all. Thus, the Petition does not “specify where each element of the claim is
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`found in the prior art . . . relied upon.” 37 C.F.R. § 42.104(b)(4).
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`The Petition’s deficient proposed rejections, aside from failing to cite any
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`particular aspect of the prior art in many instances, further improperly rely on
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`broad generalities about what each asserted reference allegedly teaches. For
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`example, the Petition asserts that Aventail discloses the “virtual private network
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`(VPN)” recited in independent claims 1, 10, and 18, and the “virtual private link”
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`recited in independent claim 13. But the Petition does not explain what particular
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`features in Aventail teach a VPN or virtual private link. (See Petition at 15-20,
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`23-28.) Instead, the Petition discusses Aventail in generalities that paraphrase the
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`claim language. (See, e.g., id. at 15, “Aventail describes processes that
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`automatically and transparently establish a VPN between a client computer and a
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`remote private network in response to a user specifying a secure destination in a
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`connection request”; id. at 17, “Aventail also explains that communications
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`betwe