`571-272-7822
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`Paper No. 46
`Entered: July 20, 2015
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`RECORD OF ORAL HEARING
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`UNITED STATES PATENT AND TRADEMARK OFFICE
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`- - - - - -
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`- - - - - -
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`SAMSUNG ELECTRONICS CO. LTD., et al.
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`Petitioners,
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`v.
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`REMBRANDT WIRELESS TECHNOLOGIES, LP,
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`Patent Owner.
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`- - - - - - -
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`Cases IPR2014-00518 and -00519
`U.S. Patent 8,023,580
`Technology Center 2600
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`- - - - - - -
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`Oral Hearing Held on Friday, April 24, 2015
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`- - - - - - -
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`
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`Before: JAMESON LEE, HOWARD BLANKENSHIP, and JUSTIN
`BUSCH (via video link), Administrative Patent Judges.
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`The above-entitled matter came on for hearing on Friday, April 24,
`2015, at 1:00 p.m., in Hearing Room A, taken at the U.S. Patent and
`Trademark Office, 600 Dulany Street, Alexandria, Virginia.
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`Cases IPR2014-00518 and -00519
`U.S. Patent 8,023,580
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`APPEARANCES:
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`ON BEHALF OF THE PETITIONER:
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`J. STEVEN BAUGHMAN, ESQ.
`Ropes & Gray LLP
`One Metro Center
`700 12th Street, N.W., Suite 900
`Washington, D.C. 20005-3948
`202-508-4600
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`BRIAN P. BIDDINGER, ESQ.
`Ropes & Gray LLP
`1211 Avenue of the Americas
`New York, New York 10036-8704
`212-596-9000
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`DANIEL G. CARDY, ESQ.
`Dickstein Shapiro LLP
`1825 Eye Street, N.W.
`Washington, D.C. 20006-5403
`202-420-3033
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`MICHELLE YANG
`Samsung Representative
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`ON BEHALF OF THE PATENT OWNER:
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`THOMAS J. ENGELLENNER, ESQ.
`REZA MOLLAAGHABABA, ESQ.
`GEORGE S. HAIGHT, IV, ESQ.
`ANDREW W. SCHULTZ, ESQ.
`Pepper Hamilton LLP
`19th Floor, High Street Tower
`125 High Street
`Boston, Massachusetts 02110-2736
`617-204-5100
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`MICHAEL JOHNSON
`Rembrandt Representative
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`P R O C E E D I N G S
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`(1:00 p.m.)
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`JUDGE LEE: Go od afternoon. Please be seated.
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`Welcome to the Board. This is the consolidated oral argument
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`for two Inter Partes Reviews, IPR2014 -00518 and
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`IPR2014 -00519.
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`The Petitioner is a collection of four different
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`companies, and the Patent Owner is Re mbrand t Wireless
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`Technologies LP.
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`I would like to begin with introduction of counsel,
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`starting with Petitioner, followed by Patent Owner, please.
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`MR. BAUGHMAN: Thank you, Your Honor. Steve
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`Baughman from R opes & Gray for the Samsung Petitioners.
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`With me is Brian Biddinger and Dan Cardy. And we have with
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`us a representative of Samsung, Michelle Yang.
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`JUDGE LEE: Th ank you.
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`MR. ENGELLENNER: Good afternoon, Your
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`Honor. Tom Engellenner for the Patent Owner. With me is
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`Reza Mollaaghababa, George Haight, And rew Schultz, and we
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`have a representative of Rembrandt as well, Mike Johnson.
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`JUDGE LEE: Th ank you very much. We have
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`allocated each party up to 90 minutes of argument time, but
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`don't feel that you have to use up every single minute. Just use
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`as much a s you need to.
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`The Petitioner will present first. You can reserve
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`any a mount of your time for rebuttal, and the Patent Owner
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`essentially will have only one opportunity at the podium, so
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`there is no opportunity to reserve anything. You spend all or
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`just part of your time in the one session that you are up.
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`Are there any preliminary questions before we
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`begin?
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`MR. BAUGHMAN: No, Your Honor.
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`MR. ENGELLENNER: No, Your Honor.
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`JUDGE LEE: All right. You ma y begin any time,
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`Mr. Baughman.
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`MR. BAUGHMAN: May it please the Board. We
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`would like to reserve at the outset 40 minutes of our time for
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`rebuttal.
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`The Petitioners have provided our positions and
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`evidence in the briefing. We rely o n that material to support
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`our arguments in this consolidated pair of trials. But to assist
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`the Board in considering that record we plan to address in our
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`opening discussion this afternoon two topics along with any
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`questions the Board ma y have.
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`And the two live issues before the Board are the
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`two topics we would like to discuss. After some brief opening
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`comments, first my colleague, Mr. Biddinger, will address the
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`obviousness of two different types of modulation me thods
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`based on Boer, and then I will address the motivations to
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`combine Boer's multiple modulation method s with a
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`master/slave arrangement disclosed in the admitted prior art.
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`To begin with, there is a relatively narrow list of
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`issues that remains in dispute before the Board. So apart from
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`arguing those two points that I just raised, Patent Owner makes
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`no other arguments about why its claims are not obvious.
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`It concedes the limitations of his claims are
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`otherwise covered by the prior art we presented in the petition.
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`So, as confirmed by the Board's scheduling orders in these two
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`matters, that is Paper 17 in both ma tters at page 3, any such
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`argument has been waived.
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`There are also no secondary consideration
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`arguments here. Instead, the Patent Owner is raising only two
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`points to try to save the '580 patent. Turning to slide 6, we put
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`those two issues be fore the Board.
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`First Patent Owner argues Boer does not disclose
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`different types of modulation methods, but this relies both on a
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`contorted claim c onstruction that's erroneous, and even under
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`that construction an argument that modulation is not
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`modulatio n.
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`And, second, while Patent Owner never disputes
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`that the master/slave protocol, which was well known in the
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`admitted prior art, offers the benefits of simplicity and
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`determinacy over the protocol described in Boer, Patent Owner
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`argues that certain bene fits under certain specified conditions
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`of other modulation methods, among other things, constitute a
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`teach -away from master/slave.
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`But this flies in the face of the very table in the
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`Upender article that Patent Owner points to. It is called a
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`tradeoff table. It's provided in an article that repeatedly talks
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`about choosing a protocol that's right for you. It is not a
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`teach -away and, respectfully, the position has no me rit.
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`Basically both arguments boil down to an attempt
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`to obscure or ignore what a p erson of ordinary skill would
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`understand. But the combination of the APA and Boer and the
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`obviousness of the claims in light of that combination would
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`have been obvious to any person of ordinary co mmon sense, let
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`alone a person of ordinary skill in this t echnical art.
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`So with that I will pass the podium to
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`Mr. Biddinger to discuss types of modulation methods.
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`MR. BIDDINGER: Good afternoon. M y na me is
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`Brian Biddinger. As Mr. Bachman mentioned, I'm going to be
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`addressing the first of the two issues, wh ich is the question of
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`whether the Boer patent discloses the limitation in the claims
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`of at least two types of modulation methods.
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`My discussion is going to entail really two aspects.
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`First the question of the proper construction of this limitation
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`in t he claims and then, second, Petitioner's views about the
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`teachings of Boer to a person of ordinary skill in the art with
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`respect to this limitation.
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`Turn to slide 8, please. The phrase "at least two
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`types of modulation methods" appears in a number of th e
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`challenged claims, including independent claim 1 of the '580
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`patent. And in the institution decision the Board did not
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`construe this phrase, instead concluding that the elements in
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`the prior art are within the scope of the relevant terms under
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`any reasonable construction. That was in Paper 16 at page 6.
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`Petitioners agree with that view and I will address
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`the reasons why P etitioners believe that the Boer patent
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`discloses this element under any re asonable construction. But
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`first, because the Patent Own er's response continued to raise
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`issues of claim construction with respect to this term, I would
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`like to discuss our views about the proper construction of the
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`phrase.
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`If you turn to slide 9, please. Slide 9 shows at the
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`top of the slide the two propose d constructions from t he parties
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`with respect to this term. And Petitioners submit that their
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`construction is the broadest reasonable construction because it
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`is consistent with the specification and the stated problem in
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`the specification that is addresse d by the '580 patent, which is
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`the problem of incompatible modulation methods. And also it
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`is consistent with the description and usage of the word "types"
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`in the specification.
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`So if we look first at the problem discussed in the
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`'580 patent, and actual ly just to me ntion quickly, Petitioner's
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`proposed construction is "at least two incompatible processes
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`of varying characteristics of a carrier wave."
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`JUDGE LEE: Wh at does incompatible mean in
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`your proposed me aning?
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`MR. BIDDINGER: Yes, Your Honor. So as we
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`have actually put forth and explained in Dr. Goodma n's
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`declaration, incompatible modulation methods would be a
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`modulation method that could not be understood by a modem.
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`So, for example, let me just turn quickly to the
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`quote from Dr. Goodman's decl aration. If we go to slide 16.
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`What Dr. Goodman has said is that different types of
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`modulation methods are incompatible. "A modem designed to
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`demodulate one transmission would be incapable of
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`demodulating the other.
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`And that's talked about in the spec ification of the
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`'580 patent, in the context of this problem -- going back to
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`slide 9, please, I'm sorry, slide -- yes, slide 9 -- and the
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`problem is described and the patent states that if one or more
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`of the trib modems are not compatible with the modulat ion
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`method used by the master, those tribs will be unable to
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`receive communications from the master.
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`And the patent goes on to state that what is not
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`believed to be provided by the prior art is a system and method
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`of communication in which multiple modul ation methods are
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`used to facilitate communication among the plurality of
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`mode ms in a network which have heretofore been incompatible.
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`And, furthermore, the patent states what the
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`advantages provided by the invention in the '580 patent are,
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`which is that a master transceiver can communicate seamlessly
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`with tributary transceivers or modems using incompatible
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`modulation methods.
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`And in the context of the specification, if we turn
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`to slide 10, those incompatible modulation methods are
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`described by the '580 patent as types of modulation.
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`JUDGE LEE: Counsel, I'm beginning to lose you.
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`That is a very, very long answer to my question.
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`So can your answer be a little shorter on what
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`exactly you mean by incompatible modulation?
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`MR. BIDDINGER: Yes, I apolog ize, but I thought
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`I had answered it and I apologize if I didn't.
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`JUDGE LEE: I u nderstand a part of what you said.
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`You said if a device is capable of de modulating some thing that
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`it is in communication with, then it is compatible. But that
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`definition is problematic because I could come up with an
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`invention where I can understand 100 different languages, 100
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`different modulation methods.
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`Does that mean all of a sudden all 100 modulation
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`methods are now compatible and, therefore, they are of the
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`same t yp e? Your definition would change depending on the
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`scenario.
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`MR. BIDDINGER: No, I understand your question,
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`Your Honor, and if I can go back to slide 16 to try to answer it.
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`I don't think we need to focus on the capability of a
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`particular modem. So, fo r example, what you just discussed, if
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`a modem is capable of demodulating multiple types of
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`modulation methods, such as DBPSK or DQPSK, then it has
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`those capabilities and that particular modem might be
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`compatible with both of those modulation methods.
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`JUDGE LEE: Right, if they all become co mpatible
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`then they are all the same t ype.
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`MR. BIDDINGER: Right.
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`JUDGE LEE: But that would be different if you
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`had a different device.
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`MR. BIDDINGER: Right, but what we are saying
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`is you look at the modulation meth od itself, not the capabilities
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`of the modem. S o if your modulation method is DBPSK
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`modulation, and the modem commu nicates that signal out, a
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`mode m with the capabilities of understanding DBPSK would be
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`compatible with that modulation method. A modem that is
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`capable of understanding DQPSK only and not DBPSK would
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`not be compatible with that modulation method. That signal
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`would not be able to be understood by that device that didn't
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`understand that particular modulation method.
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`JUDGE LEE: Ye s, but you ju st changed my
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`question to a different focus. You are focusing on
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`compatibility of the modem with another modem. B ut we are
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`talking about in the context of the claim co mpatibility of
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`different modulation methods.
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`MR. BIDDINGER: Right, I think, Your Hono r,
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`that's how we understand whether a particular signal, a
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`particular modulated signal is compatible with another
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`modulated signal.
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`You might say, for example, FSK modulation and
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`that could be understood by a variety of different modems,
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`right, because i t might encompass a bunch of different types of
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`modulation, but the key here is that you have two different
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`mode ms with two different capabilities, and the question, the
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`problem that the patent seeks to solve is that those two
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`mode ms would be incapable of communicating with each other
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`because they understand that they don't understand the same
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`modulation method.
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`So I have this incompatibility problem, right,
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`because my two modulation methods are incompatible with
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`each other, because if I send out a signal using one modulation
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`method, that signal is different than a mode m sending out
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`another modulation method. Those mode ms cannot understand
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`those two different modulation methods, which makes them
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`incompatible.
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`JUDGE LEE: I' m still lost because if you spe ak
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`English and I speak Korean and there is a translator in between
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`us, and he can translate between us and we can't communicate,
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`then suddenly the English and Korean become the same t ype of
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`language.
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`But that isn't so, and if we had a different
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`translato r that isn't able to translate between us, then suddenly
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`we are speaking a different type of language. So that's the
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`concept I'm having trouble with.
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`MR. BIDDINGER: Right, I think that that is what
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`the solution that's offered by the '580 patent purports to be, is
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`that translator. Those languages don't become comp atible just
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`because you created a scenario where you have a translator
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`who can translate one language into another. They are still
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`incompatible languages.
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`What you have done is come up with a way to solve
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`that incompatibility problem, which is what the '580 patent
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`purports to do. It says I have a problem. I have one language
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`of English and one language of Korean and I can't understand
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`when you speak Korean to me and you can't understand when I
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`speak English.
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`So what the patent purports to solve to address that
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`problem is to create a master that can understand both English
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`and Korean and, therefore, can translate effectively and speak
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`to both of us.
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`JUDGE LEE: Ye ah, but that means the lang uages
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`themselves are simpl y incompatible no matter what the device
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`is doing.
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`MR. BIDDINGER: That's right. The languages
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`stay incompatible. We don't think that the patent changes
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`these modulation methods into being compatible modulation
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`methods standing alone. You need what is described in the
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`patent to take those incompatible modulation methods and
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`apply them to the system in a wa y that modems, that otherwise
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`would be unable to understand those modulations, can speak to
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`each other.
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`JUDGE LEE: Wo uldn' t that mean every different
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`modulation method would be incompatible because as long as
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`there is a slightly little difference we wouldn't be in sync and
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`we can't communicate?
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`MR. BIDDINGER: I don't believe that that is
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`necessarily true, Your Honor. I th ink that there is situations
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`where the signal, the modulated signal that's ultimately
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`produced, could be understood by a modem despite the fact
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`that different modulation methods were used to generate that
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`signal. So I don't think that that is true that ev ery single
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`modulation method has to be a different type.
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`JUDGE LEE: I' m not sure, but what in the patent
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`tells us about that? I see that it says that the mode m must use
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`compatible modulation methods. I understand that in the
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`background.
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`And then it s ays that, as discussed in the foregoing,
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`communication between mode ms is generally unsuccessful
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`unless a common modulation method is used.
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`That's a little vague. So it is saying if you use
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`common, if you use the same one, you can't have
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`communication bu t it leaves open the possibility that, if you
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`use something slightly different, you still can have
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`compatibility. B ut where is the line drawn?
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`MR. BIDDINGER: I think that's right, Your
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`Honor. I think this is the point of types in the claim, is to
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`make clear that these are modulation methods that don't fall
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`into that situation where generally, even though they might be
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`slightly different methods, they are understood by two mode ms
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`because they generate a modulated signal that's the sa me.
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`Types means th at they have to be incompatible.
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`They are two distinct modulation methods, and a modem that
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`modulates one could not modulate the other, absent what this
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`patent describes as the invention.
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`JUDGE LEE: Th ank you. That answer is
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`understandable. Let me tak e up a little more of your time.
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`In column 2 of the patent where it talks about,
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`where it says that, accordingly, what is sought and what is not
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`believed to be provided by the prior art is a system and method
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`of communication in which multiple modulation methods are
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`used to facilitate communication among the plurality of
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`mode ms in a network which have heretofore been incompatible.
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`I understand that now in light of your explanation.
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`It is the invention that is making the m talk to each other, and
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`these t wo methods used to be incompatible but they are now
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`sort of not incompatible by use of the invention?
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`MR. BIDDINGER: Correct, Your Honor.
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`JUDGE LEE: But technically they are still not
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`compatible modulation methods?
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`MR. BIDDINGER: That's right, Your Honor.
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`JUDGE LEE: Th ank you.
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`JUDGE BUSCH: Looking at slide 16, your position
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`is that DBPSK and DQPSK are different types of modulation
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`methods, correct?
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`MR. BIDDINGER: That's correct, Your Honor,
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`under Petitioner's proposed construction, which would be that
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`the modulation methods need to be incompatible with each
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`other, that is Petitioner's view, that DBPSK and DQPSK are
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`different types of modulation methods because, as stated at the
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`bottom of the slide by Dr. Goodma n, a mode m designed to
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`demodulate, for example, DBPSK would be incapable of
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`demodulating DQPSK absent obviously adding that capability
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`to the modem, but there would be a difference in those because
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`they are incompatible modulation methods.
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`JUDGE BUSCH: Looking at Patent Owner's
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`response, they see m to argue that the only difference -- sorry,
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`not the only difference but that a degraded, I believe, DQPSK
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`modulated signal could essentially be demodulated by the
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`DBPSK algorithm, or whatever, demodulator.
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`Do you disagree with that statement by Patent
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`Owner or do you believe I misstated what Patent Owner was
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`arguing?
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`MR. BIDDINGER: So, Your Honor, my
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`understanding with respect to that portion of Patent Owner's
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`response, assuming I have the right part of it in mind, is that
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`they were referenci ng the provisional application and a
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`discussion there about the inability of degraded modulation
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`methods to provide the same benefits that they believed their
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`invention provided.
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`And I don't think that that provisional application,
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`if you look at it, is saying that a degraded modulation method
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`is necessarily compatible, that the particular modems that were
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`being looked at by the inventor there I think ma y have had that
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`capability, so that ma y be true that they were able to utilize
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`different, what we would view to be different modulation
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`types.
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`But our view of what that provisional application is
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`actually saying is simply that you can't get the same cost
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`benefits by forcing all of the modems in the system t o use the
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`lowest common denominator and, thereby, use the same
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`modulation method across all of those modems.
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`It is not saying that a degraded modulation method
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`is not a different type of modulation method in the context of
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`these claims. It is simply sa ying that forcing everything to go
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`down to this de graded level, and all communicate using that
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`same level, is not going to provide the same advantages than
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`providing this master device that can actually facilitate using
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`both the lower degraded modulation rate as well as some
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`higher rate.
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`JUDGE BUSCH: I guess let me ask a follow -up to
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`see if I understood what you're saying. Is it your
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`understanding that the discussion of this degraded modulation
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`method is that the modem was capable of demodulating either a
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`DBPSK or a DQPSK signal but that it wasn't actu ally a DQPSK
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`demodulation method that is demodulating the DBPSK?
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`MR. BIDDINGER: I think I followed that and I
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`think that's correct, Your Honor. I'm not sure that there is
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`enough that I have seen in this record to really -- for me to
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`really understand f or sure what those capabilities of the
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`mode ms that were talked about in that provisional application
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`had, but I do think that that is a reasonable conclusion to reach
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`from reading it, that there was a capability built into those
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`mode ms to utilize two diffe rent modulation types. It would be
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`the higher modulation type as well as the degraded type.
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`JUDGE BUSCH: Okay. That's all for now. I
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`guess if I have a follow -up after I talk to the Patent Owner I
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`will get back to you.
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`MR. BIDDINGER: Thank you, Your Honor. So
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`I' m going to pick up with slide 10, please. So when the
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`specification is talking about the invention, here in describing
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`the invention, it describes the incompatible modulation
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`methods as types of modulation.
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`And as shown in figure 4, there i s a system where
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`there is a master transceiver 64 that is capable of transmitting
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`and receiving data using either type A modulation or type B
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`modulation.
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`And the patent explains in the text on the right, and
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`there is a reference here to a control program , this portion that
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`is excerpted there is actually talking about a control program
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`on one of the tributary devices, so with respect to that tributary
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`device the patent says: Control program 92 includes logic for
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`imple menting a particular modulation method .
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`So the trib can implement a particular modulation
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`method. And for purposes of illustration the patent calls that
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`type X.
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`The patent goes on and says: Inasmuch as the
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`master transceiver 64 is capable of running either type A or
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`type B modulation meth od, type X refers to one of those two
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`modulation methods.
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`So what the patent is saying is that the master
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`transceiver can speak either type A or type B, which are
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`particular types of modulation methods that are used by a
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`tributary A, for example, or a tr ibutary B.
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`Putting together the discussion we just had about
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`the purpose of the invention and the incompatibility that the
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`patent was trying to solve, and the ability to allow a master to
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`communicate seamlessly with tribs using incompatible
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`modulation me thods, you put that together with this disclosure
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`that the master can use either type A or type B modulation
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`methods, it is clear that the distinguishing factor between type
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`A and type B modulation methods is that they are
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`incompatible.
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`And, thus, Petiti oners submit that the broadest
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`reasonable construction requires only that each of the at least
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`two types of modulation methods be incompatible.
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`JUDGE LEE: Counsel, what you are saying makes
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`sense, but --
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`MR. BIDDINGER: I'm happy to hear that, Your
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`Honor.
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`JUDGE LEE: -- i n the summar y portion, though,
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`there is a sentence that seems contrary to what you are saying.
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`It is in column 2, line 33 to 34, in the summar y section. The
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`line says: The first modulation method ma y be of a different
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`type than the sec ond modulation me thod.
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`That strikes me as odd if I were to adopt your
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`position because, following along with your logic, it would
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`seem the first modulation method would have to be of a
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`different type than the second modulation method for all of
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`this to make sense the way you describe it.
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`Then why does this line in the summar y si mply say
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`the first method ma y be of a different type? It wouldn't make
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`any sense for it to be not of a different type.
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`MR. BIDDINGER: I just wanted to make sure I'm
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`at the ri ght place in the patent. I know we have it on the
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`screen. Is this in column 2?
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`JUDGE LEE: Ye s.
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`MR. BIDDINGER: Thank you. I was looking at
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`the wrong column.
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`JUDGE LEE: Yo u already have it highlighted.
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`MR. BIDDINGER: Yeah, he's quicker than I am .
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`MR. BAUGHMAN: This is on paper.
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`JUDGE LEE: Th at language seems to suggest it is
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`not the main thrust to be of a different type. It says it ma y be
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`of a different type. So that suggests to me that ordinarily it
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`might not be different.
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`(Pause)
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`JUDGE LEE: An d what is worse for you is that it
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`is in the summar y portion of the invention.
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`(Pause)
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`MR. BIDDINGER: So I think, Your Honor, that --
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`well, I guess one point is that this was a paraphrase of the
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`claims that was added to the specification in connection with
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`the prosecution of this particular application. So I think it is
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`not specifically a detailed description of the invention, but is
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`simply paraphrasing what is found in the claims.
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`I guess the other --
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`JUDGE LEE: So you agree it is odd, right, tha t
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`language is odd compared to the rest?
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`MR. BIDDINGER: Certainly it is not something
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`that I can say that I have thought through but I can understand
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`Your Honor's point with respect to that. I'm not sure I have
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`right now an answer to the question of wha t exactly that
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`means.
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`issue.
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`JUDGE LEE: Mr . Baughman seems to have an
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`MR. BAUGHMAN: I apologize, Your Honor. I
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`can certainly stand corrected. I think you will notice that I
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`believe all of the sentences here, or a number of them are
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`saying ma y, ma y, m a y, ma y. I believe it is a stylistic form
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`that's being used to paraphrase the claims here.
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`The transmissions ma y have a group of
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`transmission sequences. The group ma y be structured. First
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`information ma y i ndicate -- these are claim ele ments that I
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`believe for whatever reason the author of this paraphrase
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`decided to be conditional about.
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`JUDGE LEE: I s ee. So you are essentially saying
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`don't pay too much attention to those two lines and read the
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`whole spec as a whole.
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`MR. BAUGHMAN: I think, Your Hon or, and we
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`can certainly take a closer look at this, but this does appear to
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`be simply a stylistic way of summa rizing the claim.
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`MR. BIDDINGER: I think I would like to ma ybe
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`add to that. I think that there is, as we ma ybe talked about a
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`mo ment ago, a po ssibility of two modulation methods
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`producing a signal, a modulated signal that would not be
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`incompatible, right, it would be essentially the same modulated
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`signal but two different modulation methods were used to
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`produce that signal.
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`So I think ma ybe th e distinction also here could be
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`that, when you emphasize this, that it ma y be a different type,
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`that's a further distinction in that it ma y be actually
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`incompatible. It is of a different kind. The modulation method
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`is of a different kind.
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`And this I t hink ties into our point that the
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`distinction that was being sought -- and I'm going to talk in a
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`mo ment about the a mendments to the claims that Patent Owner
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`relies on to introduce the word type -- I think that those
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`a mendments were intended to emphasize t his distinction that,
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`when you talk about a different type of modulation method, it
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`is a modulation method that ultimately produces a signal that is
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`incompatible with another modulation method.
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`MR. BAUGHMAN: If I ma y just add for the record
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`so we can ma ybe put this in the same place as this discussion,
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`Your Honor, our Exhibit 1209 at page 2 of that exhibit is an
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`a mendment that adds this paragraph. And it is a substitute for
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`paragraph 0008.
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`I believe the date of this amendment ma y have been
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`March of 2011.