throbber
PUBLIC – REDACTED VERSION
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`
`
`
`
`
`
`
`
`
`
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`
`
`
`
`
`
`
`
`
`
`
`FORD MOTOR COMPANY
`Petitioner
`
`v.
`
`PAICE LLC & THE ABELL FOUNDATION, INC.
`Patent Owner
`
`
`
`
`
`
`
`
`
`
`
`
`Case IPR2014-00579
`Patent 7,104,347
`
`
`
`
`
`
`
`
`
`
`
`
`Patent Owner’s Preliminary Response to
`Petition for Inter Partes Review of U.S. Patent
`No. 7,104,347
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`
`
`TABLE OF CONTENTS
`
`I.
`
`II.
`
`III.
`
`INTRODUCTION ....................................................................................................... 1
`
`BACKGROUND OF THE ’347 PATENT .................................................................... 2
`
`PETITIONER IS BARRED OR ESTOPPED FROM REQUESTING INTER PARTES
`REVIEW CHALLENGING THE ’347 PATENT CLAIMS ............................................. 5
`
`A.
`
`B.
`
`C.
`
`Introduction – The Arbitration Agreement ....................................................... 5
`
`Petitioner Has Failed to Meet the Requirements of 37 C.F.R. § 42.104 .......... 9
`
`The Board Should Exercise its Discretion Under 37 C.F.R. § 42.108(b) and
`Deny Institution of the Petition to Prevent Harm to Patent Owner ................. 10
`
`IV.
`
`CLAIM CONSTRUCTION ........................................................................................ 12
`
`V.
`
`DEFECTS IN THE PROPOSED GROUND OF UNPATENTABILITY ...................... 16
`
`A.
`
`B.
`
`Ground 1 is defective because Petitioner has failed to establish a prima facie
`case of obviousness with regard to its proposed combination. ..................... 16
`
`Ground 1 is additionally defective because Petitioner has failed to establish a
`reasonable likelihood that the Bumby references, even if combined, describe
`or suggest all recited features of claims 1, 7, 8, 18, 21, 23, and 37. ............. 19
`
`The Bumby references do not describe or suggest “a setpoint (SP)
`1.
`above which said engine torque is efficiently produced,” as recited in claim 1.
`
`19
`
`The Bumby references do not describe or suggest “an internal
`2.
`combustion engine capable of efficiently producing torque at loads between a
`lower level SP and a maximum torque output MTO,” as recited in claim 23,
`nor any of the recited steps of employing such an engine. ........................... 21
`
`VI.
`
`REDUNDANT GROUNDS OF UNPATENTABILITY ................................................ 21
`
`VII. CONCLUSION ......................................................................................................... 22
`
`i
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`
`
`CASES
`
`TABLE OF AUTHORITIES
`
`Ex parte Levengood,
`28 USPQ2d 1300 (B.P.A.I.. 1993) ................................................................................. 19
`
`In re Zletz,
`893 F.2d 319 (Fed. Cir. 1989) ................................................................................. 12, 13
`
`K/S HIMPP v. Hear-Wear Techs., LLC,
`751 F.3d 1362 (Fed. Cir. 2014) ..................................................................................... 18
`
`KSR Int'l Co. v. Teleflex Inc.,
`550 U.S. 398 (2007) ................................................................................................ 17, 19
`
`Liberty Mutl. Ins. Co. v. Progressive Cas. Ins. Co., CBM2012-00003, Paper No. 7
`(PTAB Oct. 25, 2012) .................................................................................................... 22
`
`STATUTES AND REGULATIONS
`
`35 U.S.C. § 313 .................................................................................................................... 1
`
`35 U.S.C. § 315(b) .............................................................................................................. 11
`
`37 C.F.R. § 42.1(b) ............................................................................................................. 22
`
`37 C.F.R. § 42.100(b) ......................................................................................................... 12
`
`37 C.F.R. § 42.104 ............................................................................................................... 9
`
`37 C.F.R. § 42.107 ............................................................................................................... 1
`
`37 C.F.R. § 42.108(b) ......................................................................................................... 10
`
`77 Fed. Reg. 48688 (Aug. 14, 2012) ................................................................................... 10
`
`ii
`
`

`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`OTHER AUTHORITIES
`
`Inter Partes Review, Inter Partes Disputes (last visited July 11, 2014),
`http://www.uspto.gov/aia_implementation/bpai.jsp .......................................................... 8
`
`
`
`
`
`iii
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`EXHIBITS
`
`Exhibit Number
`
`2101
`
`Exhibit Name
`Arbitration Agreement between Paice LLC and Ford Motor
`Company
`
`
`
`iv
`
`
`
`
`
`

`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`I.
`
`INTRODUCTION
`
`Paice LLC and The Abell Foundation, Inc. (collectively, “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 (“the Petition”) filed by Ford Motor
`
`Company (“Petitioner”). Patent Owner requests that the Board not institute inter partes
`
`review because (1) Petitioner lacks standing in view of the bargained-for Arbitration
`
`Agreement between Petitioner and Patent Owner and (2) the Petition fails to establish a
`
`reasonable likelihood that Petitioner will prevail with respect to at least one of the
`
`challenged claims.
`
`First, Petitioner and Patent Owner have negotiated and executed an Arbitration
`
`Agreement as part of a settlement of a prior patent infringement suit and Petitioner is barred
`
`or estopped from requesting inter partes review challenging the claims of the ’347 patent in
`
`view of the Arbitration Agreement.
`
`Second, for each of the proposed grounds of unpatentability, Petitioner has failed to
`
`demonstrate that there is a reasonable likelihood that the prior art relied upon anticipates or
`
`renders obvious the challenged claims.
`
`For example, with respect to Ground 1, Petitioner has failed to demonstrate a
`
`reasonable likelihood that a POSA would have known and been able to combine the five
`
`“Bumby” references.
`
`
`
`1
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`Also with respect to Ground 1, Petitioner has failed, among other things, to
`
`demonstrate a reasonable likelihood that the “Bumby” references disclose or suggest “a
`
`setpoint (SP) above which said engine torque is efficiently produced,” as recited in claim 1,
`
`or “an internal combustion engine capable of efficiently producing torque at loads between a
`
`lower level SP and a maximum torque output MTO,” as recited in claim 23.
`
`Accordingly, Petitioner’s petition fails to establish a reasonable likelihood that it
`
`would prevail with respect to at least one of the claims challenged in the petition. This
`
`petition should be denied.
`
`II.
`
`BACKGROUND OF THE ’347 PATENT
`
`The ’347 patent (Ex. 1001), entitled “Hybrid Vehicles,” issued on September 12,
`
`2006 from an application with a priority date of September 14, 1998. The ’347 patent
`
`discloses embodiments of a hybrid electric vehicle, with an internal combustion engine and
`
`two motors. One or both of the motors may be used to recharge the battery. Additionally, a
`
`microprocessor is employed to select different operating modes based on the vehicle’s
`
`instantaneous torque requirements, the state of charge of the battery bank, and other
`
`variables. (See, e.g., Ex. 1001 at Abstract.)
`
`An embodiment of the hybrid vehicle disclosed in the ’347 patent is shown in Figure
`
`3, reproduced below:
`
`
`
`2
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`
`
`As shown, a traction motor 25 is connected to the road wheels 34 through a
`
`differential 32. A starter motor 21 is connected to the internal combustion engine 40. The
`
`motors 21 and 25 are functional as either motors or generators, depending on the operation
`
`of the corresponding inverter/charger units 23 and 27, which connect the motors to the
`
`battery bank 22. (See Ex. 1001 at 26:13-24.)
`
`These components are controlled by a microprocessor 48 or any controller capable
`
`of examining input parameters and signals and controlling the mode of operation of the
`
`vehicle. (See, e.g., Ex. 1001 at 26:25-27:20.) For example, control of engine 40 is
`
`accomplished by way of control signals provided by the microprocessor to the electronic fuel
`
`injection (EFI) unit 56 and electronic engine management (EEM) unit 55. Control of (1)
`
`starting of the engine 40; (2) use of motors 21 and 25 to provide propulsive torque; or (3)
`
`
`
`3
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`use of motors as generators to provide regenerative recharging of battery bank 22, is
`
`accomplished through control signals provided by the microprocessor to the inverter/charger
`
`units 23 and 27. (See, e.g., Ex. 1001 at 26:59-27:20; 28:38-49.)
`
`The hybrid vehicle may be operated in a number of modes based on the vehicle’s
`
`instantaneous torque requirements, the engine’s maximum torque output, the state of
`
`charge of the battery, and other operating parameters. In an implementation of the ’347
`
`patent, the microprocessor causes the vehicle to operate in various operating modes
`
`pursuant to its control strategy.
`
`For example, in mode I, the hybrid vehicle is operated as an electric car, with the
`
`traction motor providing all torque to propel the vehicle. (Ex. 1001 at 37:26-35.) As the
`
`vehicle continues to be propelled in electric only mode, the state of charge of the battery
`
`may become depleted, and need to be recharged. In this case, the hybrid vehicle may
`
`transition to mode II to recharge the battery, in which the vehicle operates as in mode I, with
`
`the addition of the engine running the starter/generator motor to provide electrical energy to
`
`operate the traction motor and recharge the battery. (Ex. 1001 at 37:35-39.) When the
`
`internal combustion engine can operate in its fuel efficient range, the hybrid vehicle
`
`operates in mode IV, with the engine providing torque to propel the vehicle. (Ex. 1001 at
`
`37:45-47; 38:55-65.) If the vehicle requires additional torque, such as for acceleration or
`
`
`
`4
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`hill-climbing, the vehicle may enter mode V, where the traction motor provides additional
`
`torque to propel the vehicle beyond that provided by engine 40. (Ex. 1001 at 38:4-11.)
`
`III.
`
`PETITIONER IS BARRED OR ESTOPPED FROM REQUESTING INTER PARTES
`REVIEW CHALLENGING THE ’347 PATENT CLAIMS
`
`A.
`
`Introduction – The Arbitration Agreement
`
`Petitioner is barred or estopped from requesting an inter partes review challenging
`
`the claims of the ’347 patent in view of an Arbitration Agreement negotiated by Petitioner
`
`and Patent Owner as a part of a settlement of Patent Owner’s 2010 patent infringement suit
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`against Petitioner. (Ex. 2101, Arbitration Agreement (“AA”).)
`
`
`
`
`
`
`
`
`
`
`
`5
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`6
`
`
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Petitioner has breached the Arbitration Agreement’s
`
` and therefore should be estopped or barred from requesting inter partes review
`
`challenging the patent claims of the ’347 patent.
`
`
`
`
`
`
`
` Petitioner then filed four separate Petitions
`
`7
`
`
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`for Inter Partes Review on April 4, 2014 with the Patent Trial and Appeal Board of the U.S.
`
`Patent Office. The cases are numbered: IPR2014-00568, IPR2014-00570, IPR2014-00571
`
`and IPR2014-00579. On June 5, 2014, Petitioner filed four more Petitions for Inter Partes
`
`Review. Those cases are numbered: IPR2014-00852, IPR2014-00884, IPR2014-00875 and
`
`IPR2014-00904.
`
`Each of the eight Petitions for Inter Partes Review filed by Petitioner
`
`
`
`
`
`
`
` Indeed, the U.S. Patent and Trademark Office classifies IPR as a trial
`
`proceeding which, among other things, determines the validity of a patent.3 Parties to IPR
`
`proceedings file pleadings, take discovery, present trial briefs, participate in evidentiary
`
`hearings with live testimony, and make arguments before a three administrative law judge
`
`panel.
`
`
`
` Petitioner breached the Arbitration Agreement by
`
`
`
`3 “Inter Partes Review,” http://www.uspto.gov/aia_implementation/bpai.jsp.
`
`
`
`
`
`
`
`
`
`
`
`8
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
` Petitioner’s eight separate IPR proceedings force Patent Owner to litigate on eight
`
`separate fronts, including multiple IPR’s directed against the instant challenged ’347 patent.
`
`For example, Petitioner filed 3 IPRs covering many of the same claims of the ’347 patent:
`
`(1) IPR2014-00579—claims 1, 7, 8, 18, 21, 23, and 37; (2) IPR2014-00571—claims 1, 6, 7,
`
`9, 15, 21, 23, and 36; and (3) IPR2014-00884—claims 1, 7, 10, 21, 23, and 24.
`
`
`
`
`
`
`
`
`
`B.
`
`Petitioner Has Failed to Meet the Requirements of 37 C.F.R. § 42.104
`
`As discussed above, by virtue of the unambiguous terms of the Arbitration
`
`Agreement, Petitioner is barred or estopped from requesting inter partes review. Under 37
`
`C.F.R. § 42.104, “[t]he petitioner must certify that the patent for which review is sought is
`
`available for inter partes review and that the petitioner is not barred or estopped from
`
`requesting an inter partes review challenging the patent claims on the grounds identified in
`
`the petition.” While Petitioner parroted the language from the rule in making its
`
`“certification” in each of its eight petitions for inter partes review, Petitioner failed to bring the
`
`Arbitration Agreement to the Board’s attention, or address the terms of the Agreement
`
`whatsoever.
`
`
`
`9
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
` “Section 42.104(a) provides that a petition must demonstrate that the petitioner has
`
`standing.” 77 Fed. Reg. 48688 (Aug. 14, 2012). “This requirement is to ensure that a party
`
`has standing to file the inter partes review and would help prevent spuriously-instituted inter
`
`partes reviews.” Id. In fact, “[f]acially improper standing will be a basis for denying the
`
`petition without proceeding to the merits of the petition.” Id. By failing to address the
`
`Agreement in its petition, the Petitioner has failed to meet section 42.104(a)’s requirement
`
`that the Petitioner demonstrate that it has standing. For at least this additional reason, the
`
`instant petition should be denied.
`
`C.
`
`The Board Should Exercise its Discretion Under 37 C.F.R. § 42.108(b)
`and Deny Institution of the Petition to Prevent Harm to Patent Owner
`
`Moreover, even if the Petitioner had addressed or acknowledged the Arbitration
`
`Agreement in its petition, the Board should exercise its discretion and deny the instant
`
`petition to prevent substantial harm to the Patent Owner from the Petitioner’s breach of the
`
`Agreement. First, Patent Owner will lose the benefit of the bargain it made with Petitioner,
`
`
`
`
`
`
`
` and now Patent Owner will lose
`
`the benefit of the bargain it believed it obtained.
`
`
`
`10
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`Petitioner, on the other hand, will lose nothing if the instant petition is denied. It will
`
`still have the opportunity to challenge validity
`
`losing only the time between the original filing of its petition and the Board’s institution
`
`decision—
`
`—
`
`
`
` Petitioner cannot be
`
`harmed by a decision that merely requires it to live up to the contractual promises it made.
`
`
`
`4 Patent Owner has concurrently-filed a Motion for Preliminary Injunction in the co-pending
`
`district court case (Paice LLC and The Abell Foundation, Inc. v. Ford Motor Company, C.A.
`
`No. 1:140-cv-00492-WDQ) seeking an Order requiring Petitioner to dismiss seven of the
`
`
`
`
`
`
`
`IPRs to comply with the Arbitration Agreement’s
`
`dismiss the instant petition and each of the other seven petitions for at least the reasons
`
` the Board should
`
`discussed herein.
`
` Petitioner is well within the one-
`
`year time bar of 35 U.S.C. § 315(b) and therefore will not be prejudiced by denial of
`
`institution of each of the presently-pending petitions.
`
`
`
`11
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`Accordingly, for at least these additional reasons, the Board should exercise its discretion
`
`and decide not to institute inter partes review on the ground that at least Petitioner lacks
`
`standing to bring the instant petition.
`
`While Patent Owner has provided reasons as to why the Board should not institute
`
`inter partes review based solely on the bargained-for Arbitration Agreement between the
`
`parties, other reasons exist for denying certain grounds of unpatentability presented in the
`
`Petitioner’s petition. Each of those reasons is discussed in further detail below.
`
`IV.
`
`CLAIM CONSTRUCTION
`
`A claim subject to IPR is given its “broadest reasonable construction in light of the
`
`specification of the patent in which it appears.” 37 C.F.R. § 42.100(b). This means that the
`
`words of the claim are given their plain meaning unless that meaning is inconsistent with the
`
`specification. In re Zletz, 893 F.2d 319, 321 (Fed. Cir. 1989). Patent Owner submits, for
`
`the purposes of the IPR only, that the claim terms are presumed to take on their broadest
`
`reasonable interpretation in view of the specification of the ’347 patent.5 Under this
`
`
`
`5 Because the standards of claim interpretation applied in litigation differ from PTO
`
`proceedings, any interpretation of claim terms in this IPR is not binding upon Petitioner in
`
`
`
`
`
`12
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`standard, and consistent with at least one district court construction of the same terms, the
`
`broadest reasonable interpretation of the terms “setpoint(SP)” and “SP,” which appear in
`
`claims 1, 6, 7, 9, 15, 23, and 36 of the ’347 patent, is “a definite, but potentially variable
`
`value at which a transition between operating modes may occur.” (Ex. 1115 at 13.)
`
`Contrary to the broadest reasonable interpretation standard, Petitioner’s proposed
`
`construction for the terms “setpoint (SP)” and “SP” is based upon an improperly narrow
`
`reading of the specification and completely dismisses the previous construction of the same
`
`term by the U.S. District Court for the Eastern District of Texas. (See Petition at14-16.)
`
`Specifically, Petitioner asserts that “setpoint (SP)” and “SP” should be construed as “a
`
`predetermined torque value.” (Id. at 16.) Petitioner’s proposed construction is contrary to
`
`the specification and claims of the ’347 patent.
`
`The specification of the ’347 patent makes clear that the control system calculates a
`
`number of sensed variables, such as “road load,” the current torque output of the engine,
`
`and the state of charge of the battery, and compares those calculated values against the
`
`“setpoint” to determine the mode of operation:
`
`
`
`any litigation related to the ’360 patent. See In re Zletz, 13 USPQ2d 1320, 1322 (Fed. Cir.
`
`1989).
`
`
`
`13
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`the microprocessor tests sense and calculated values for system variables,
`
`such as the vehicle’s instantaneous torque requirement, i.e., the “road load”
`
`RL, the engine’s instantaneous torque output ITO, both being expressed as a
`
`percentage of the engine’s maximum torque output MTO, and the state of
`
`charge of the battery bank BSC, expressed as a percentage of its full charge,
`
`against setpoints, and uses the results of the comparisons to control the
`
`mode of vehicle operation.
`
`(Ex. 1101 at 40:21-32.)
`
`The specification also discloses that the “value of a setpoint (for example) may vary
`
`somewhat in response to recent history, or in response to monitored variables” and that “the
`
`values given above for various numerical quantities may vary somewhat without departing
`
`from the invention.” (See Ex. 1101 at 40:39-43.) Other examples of the “setpoint” varying
`
`include: varying the “setpoint” “in response to a repetitive driving pattern” such as the route
`
`driven by the driver each day (Ex. 1101 at 40:56-67); and varying the “setpoint” based “on
`
`the mode of operation in effect when the road load equals a given setpoint SP,” e.g., varying
`
`the “setpoint” for the transition between mode I and mode IV when the “road load” is
`
`fluctuating around the “setpoint” (Ex. 1101 at 41:20-54). Moreover, the ’347 patent
`
`specification describes that “setpoint” isn’t merely a value that is predetermined or definite,
`
`but rather that it refers to a value that is potentially variable. Indeed, the ’347 patent
`
`specification explicitly states that “setpoint, referred to in the appended claims as ‘SP’…is
`
`
`
`14
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`obviously arbitrary and can vary substantially.” (Ex. 1101 at col. 40:50-55 (emphasis
`
`added); see also id. col. 13:23-25.) In addition, claim 2 specifically recites that “the
`
`controller monitors patterns of vehicle operation over time and varies said setpoint SP
`
`accordingly,” which clearly shows that the setpoint SP is not necessarily a “predetermined”
`
`value as Petitioner contends.
`
`Additionally, Patent Owner notes that at least one district court has construed the
`
`terms “setpoint” and “SP” consistent with Patent Owner’s proposed construction. (Ex. 1115
`
`at 13.) In that case, the court rejected defendant’s argument that “setpoint” should be
`
`construed as a “torque value” (essentially the same argument being offered by Petitioner
`
`here), holding that:
`
`Although it is possible that a setpoint may always be determined to be a
`
`torque value, there is nothing in the claims or specification that indicate
`
`a given setpoint value is actually represented in terms of torque. In fact,
`
`the specification clearly indicates that the state of charge of the battery bank,
`
`‘expressed as a percentage of its full charge’ is compared against setpoints,
`
`the result of the comparison being used to control the mode of the vehicle.
`
`’347 Patent, col. 40, ll. 28-31. Clearly a setpoint based on the battery charge
`
`status is not a torque value. See also ’347 Patent, col. 41, ll. 10-19 (“It is also
`
`within the scope of the invention to make setpoint SP . . . somewhat ‘fuzzy’”).
`
`(Ex. 1115 at 10 (emphasis added).)
`
`
`
`15
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`The District Court went on to hold that the terms “setpoint” and “SP” should be given
`
`the same construction that Patent Owner offers here, namely “a definite, but potentially
`
`variable value at which a transition between operating modes may occur.” Id.
`
`Patent Owner also notes that Dr. Davis’ opinions hinge on Petitioner’s proposed
`
`various constructions. For example, Dr. Davis states that “[f]or the purposes of this
`
`declaration…regarding unpatentability,” he interprets “SP” and “Setpoint (SP)” as
`
`“predetermined torque value.” (Ex. 1108 at ¶ 174; see also id. at ¶¶ 273, 295, 318, 329,
`
`339, and 371.) Accordingly, if the Board rejects any of Petitioner’s constructions, Dr. Davis’
`
`opinions on the corresponding claim term (or terms) are irrelevant and should be given no
`
`weight.
`
`V.
`
`DEFECTS IN THE PROPOSED GROUND OF UNPATENTABILITY
`
`The proposed ground of unpatentability is defective for at least the reasons detailed
`
`below.
`
`A.
`
`Ground 1 is defective because Petitioner has failed to establish a prima
`facie case of obviousness with regard to its proposed combination.
`
`The present Petition for inter partes review under Ground 1 should be denied
`
`because Petitioner has failed to establish a prima facie case of obviousness with regard to
`
`its proposed combination of Bumby I (Ex. 1103), Bumby II (Ex. 1104), Bumby III (Ex. 1105),
`
`Bumby IV (Ex. 1106), and Bumby V (Ex. 1107).
`
`
`
`16
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`As an initial matter, Patent Owner takes issue with Petitioner’s characterization of
`
`these five references as the “Bumby Project” and subsequent reliance on same in asserting
`
`that the recited features are met. First, while J.R. Bumby does appear as one of the co-
`
`authors in all five publications, he is the first author in only three of the five references relied
`
`upon by Petitioner (Bumby I, II, and IV). Thus, Petitioner’s characterization of all five
`
`references as being authored by “Bumby, J.R. et al.” is misleading and inaccurate. (See
`
`Petition at iii.) Second, while Petitioner characterizes these five references as belonging to
`
`“a series of publications…that pertain to a hybrid vehicle research and development project
`
`undertaken by Professor James Bumby,” these papers were published across three
`
`different academic journals over a period of five years. (Id. at 18 and iii.) There is no
`
`indication, contrary to Petitioner’s assertions, that these five references somehow constitute
`
`“a series of publications.” Moreover, there is no reference whatsoever in any of these five
`
`publications to an all-encompassing “project” that these papers describe or might fall under.
`
`Regarding the proposed combination of Bumby I-V, neither the Petition nor Dr.
`
`Davis’ declaration provides any articulated reasoning with some rational underpinning for
`
`the assertion that a person of ordinary skill reading the publications would have been
`
`motivated to combine the five Bumby references. (See Petition at 30-31.) See KSR Int'l
`
`Co. v. Teleflex Inc., 550 U.S. 398, 418 (2007), citing In re Kahn, 441 F.3d 977, 988 (Fed.
`
`Cir. 2006) (“[R]ejections on obviousness grounds cannot be sustained by mere conclusory
`
`
`
`17
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`statements; instead, there must be some articulated reasoning with some rational
`
`underpinning to support the legal conclusion of obviousness”); K/S HIMPP v. Hear-Wear
`
`Techs., LLC, 751 F.3d 1362, 1366 (Fed. Cir. 2014) (holding that “the Board cannot accept
`
`general conclusions about what is ‘basic knowledge’ or ‘common sense’ as a replacement
`
`for documentary evidence for core factual findings in a determination of patentability.
`
`To hold otherwise would be to embark down a slippery slope which would permit the
`
`examining process to deviate from the well-established and time-honored requirements that
`
`rejections be supported by evidence.” (emphasis added; citations omitted)). In fact, the
`
`portion of Dr. Davis’ declaration that Petitioner cites to for allegedly supporting the notion of
`
`a motivated combination merely states that “a person of ordinary skill in the art…would have
`
`been motivated to acquire and read the full context of the University of Durham’s hybrid
`
`vehicle project” and further would have “been able to fully comprehend each of these
`
`publications.” (Ex. 1108 at ¶ 194.) Dr. Davis provides no further articulation of why a
`
`person of ordinary skill in the art would have been motivated to actually combine the five
`
`Bumby references, nor does he explain how such a combination would have been
`
`implemented. In contrast, courts have well established that ‘‘‘rejections on obviousness
`
`cannot be sustained by mere conclusory statements; instead, there must be some
`
`articulated reasoning with some rational underpinning to support the legal conclusion of
`
`
`
`18
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`obviousness.’” KSR, 550 U.S. at 418, (quoting In re Kahn, 441 F.3d 977, 988, (Fed. Cir.
`
`2006)).
`
`Moreover, arguing that the references relied upon individually teach all aspects of
`
`the claimed invention, as Dr. Davis asserts, is not sufficient to establish a prima facie case
`
`of obviousness without a showing of some objective reason to combine the teachings of the
`
`references. Ex parte Levengood, 28 USPQ2d 1300 (B.P.A.I. 1993).
`
`Therefore, Ground 1 is defective because it fails to establish a reasonable likelihood
`
`that a person of ordinary skill in the art would have been motivated to combine the five
`
`Bumby references.
`
`B.
`
`Ground 1 is additionally defective because Petitioner has failed to
`establish a reasonable likelihood that the Bumby references, even if
`combined, describe or suggest all recited features of claims 1, 7, 8, 18,
`21, 23, and 37.
`
`The Board should deny the present Petition for inter partes review of claims 1 and 23
`
`(and their dependent claims 7, 8, 18, 21, and 37) under Ground 1 because Petitioner has
`
`failed to establish a reasonable likelihood that the five Bumby references, either alone or in
`
`proper combination, describe or suggest all recited features.
`
`1.
`
`The Bumby references do not describe or suggest “a setpoint
`(SP) above which said engine torque is efficiently produced,” as
`recited in claim 1.
`
`The Bumby references, either collectively or individually, are further deficient in
`
`describing or suggesting “a setpoint (SP) above which said engine torque is efficiently
`19
`
`
`
`

`
`Patent No. 7,104,347
`Patent Owner Preliminary Response
`
`PUBLIC – REDACTED VERSION
`
`
`
`
`Case IPR2014-00579
`Attorney Docket No: 36351-0011IP2
`
`produced,” as recited in claim 1. Regarding setpoint (SP), Petitioner and Dr. Davis equate
`
`an engine’s “lower torque bound,” which is mentioned for example in Bumby III, to
`
`“predetermined torque value” and thus equivalent to the claimed “setpoint” based on their
`
`proposed construction of the term. (See Ex. 1108 at ¶ 280; see also Petition at 37.)
`
`However, as discussed above, “setpoint” should properly be construed

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket