`571-272-7822
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`Entered: March 18, 2015
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY, LTD.,
`TSMC NORTH AMERICA CORPORATION, FUJITSU
`SEMICONDUCTOR LIMITED, FUJITSU SEMICONDUCTOR
`AMERICA, INC., ADVANCED MICRO DEVICES, INC., RENESAS
`ELECTRONICS CORPORATION, RENESAS ELECTRONICS
`AMERICA, INC., GLOBAL FOUNDRIES U.S., INC.,
`GLOBALFOUNDRIES DRESDEN MODULE ONE LLC & CO. KG,
`GLOBALFOUNDRIES DRESDEN MODULE TWO LLC & CO. KG,
`TOSHIBA AMERICA ELECTRONIC COMPONENTS, INC., TOSHIBA
`AMERICA INC., TOSHIBA AMERICA INFORMATION SYSTEMS,
`INC., TOSHIBA CORPORATION, and THE GILLETTE COMPANY
`Petitioners,
`v.
`ZOND, LLC,
`Patent Owner.
`____________
`Case IPR2014-007811
`Patent 7,147,759 B2
`____________
`
`Before KEVIN F. TURNER, JONI Y. CHANG, SUSAN L.C. MITCHELL,
`and JENNIFER M. MEYER, Administrative Patent Judges.
`
`CHANG, Administrative Patent Judge.
`
`
`DECISION
`Granting Joint Motion to Terminate as to Petitioner TSMC
`37 C.F.R. § 42.74
`
`
`1 This Decision addresses similar issues in the inter partes reviews identified
`in the Appendix of this Decision. For efficiency, we enter this Decision in
`this case as representative.
`
`
`
`
`
`IPR2014-00781
`Patent 7,147,759 B2
`
`
`
`We instituted an inter partes review in each of the proceedings
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`identified in the Appendix of this Decision, challenging U.S. Patent Nos.
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`6,805,779 B2, 6,806,652 B1, 6,853,142 B2, 6,896,773 B2, 6,896,775 B2,
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`7,147,759 B2, 7,604,716 B2, 7,808,184 B2, and 7,811,421 B2. Paper 13.2
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`After institution, we also granted the revised Motions for Joinder filed by
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`Taiwan Semiconductor Manufacturing Company, LTD., TSMC North
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`America Corporation (collectively, “TSMC”), Fujitsu Semiconductor
`
`Limited and Fujitsu Semiconductor America, Inc. (collectively, “Fujitsu”),
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`Advanced Micro Devices, Inc. (“AMD”), Renesas Electronics Corporation,
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`Renesas Electronics America, Inc. (collectively, “Renesas”),
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`GLOBALFOUNDRIES U.S., Inc., GLOBALFOUNDRIES Dresden Module
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`One LLC & Co. KG, GLOBALFOUNDRIES Dresden Module Two LLC &
`
`Co. KG (collectively, “GlobalFoundries”), Toshiba America Electronic
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`Components, Inc., Toshiba America Inc., Toshiba America Information
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`Systems, Inc., and Toshiba Corporation (collectively, “Toshiba”), and The
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`Gillette Company (“Gillette”). See, e.g., Papers 16, 17, 18. A list of these
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`Joinder Cases is provided in the Appendix of the instant Decision.
`
`On March 11, 2015, Patent Owner Zond, LLC (“Zond”) and TSMC
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`filed a Joint Motion to Terminate, with respect to TSMC, in each pending
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`inter partes review listed in the Appendix. Paper 33, “Mot.” They also filed
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`a true copy of their Written Settlement Agreement, made in connection with
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`the termination as to TSMC, pursuant to 35 U.S.C. § 317(b) and 37 C.F.R.
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`§ 42.74(b). Ex. 1238. They further request that the Written Settlement
`
`
`2 All citations are to IPR2014-00781, as representative, unless otherwise
`noted.
`
`
`
`2
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`
`
`IPR2014-00781
`Patent 7,147,759 B2
`
`
`
`Agreement be treated as business confidential information under 35 U.S.C.
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`§ 317(b) and 37 C.F.R. § 42.74(c). Paper 34. For the reasons set forth
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`below, the Joint Motions to Terminate, with respect to TSMC, and the Joint
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`Requests are granted.
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`Under the Leahy-Smith America Invents Act, settlement between the
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`parties to a proceeding is encouraged. Notably, 35 U.S.C. § 317(a), in part,
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`provides the following (emphasis added):
`
`(a) IN GENERAL.—An inter partes review instituted under this
`chapter shall be terminated with respect to any petitioner upon
`the joint request of the petitioner and the patent owner, unless
`the Office has decided the merits of the proceeding before the
`request for termination is filed. If the inter partes review is
`terminated with respect to a petitioner under this section, no
`estoppel under section 315(e) shall attach to the petitioner, or
`to the real party in interest or privy of the petitioner, on the
`basis of that petitioner’s institution of that inter partes review.
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`Here, although the instant inter partes reviews have been instituted,
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`we have not entered a final written decision in any of the proceedings. Upon
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`review of the procedural posture of these proceedings and the facts before
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`us, we determine that the parties’ contentions have merit.
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`In their Joint Motions to Terminate, Zond and TSMC indicate that
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`they have settled all of their disputes involving the aforementioned patents.
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`Mot. 2. In particular, they have agreed to settle and dismiss their related
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`district court litigations, with prejudice, concerning these patents. Mot. 7;
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`Ex. 1237. More importantly, the termination of each review at issue, with
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`respect to TSMC, will not result in the termination of the review, as
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`additional Petitioners remain.
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`
`
`3
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`
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`IPR2014-00781
`Patent 7,147,759 B2
`
`
`
`Because TSMC was designated as Lead Petitioner for seventeen
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`joined proceedings (see, e.g., Paper 18, 6), we requested, in our prior Order
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`authorizing the filing of the Joint Motions to Terminate, that the parties to
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`designate a new lead petitioner for these proceedings and to identify any
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`impact on the new lead petitioner’s ability to file substantive papers,
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`scheduling changes, and consolidation of oral hearings. Paper 32, 3. In
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`response, the remaining Petitioners working together with Zond and TSMC
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`reached an agreement regarding these issues.
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`Pursuant to our prior Order, the parties filed, on March 16, 2015, a
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`Motion to Designate Lead Petitioners and to Amend Scheduling Order in
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`each proceeding. Paper 35. The Motion provides a list of Lead and Backup
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`petitioners (reproduced in the Appendix of this Decision). Id. at 3–4. The
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`parties also stipulate to different dates for Due Dates 2–5 in certain
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`proceedings, and propose to consolidate the oral hearings for the earlier
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`proceedings with those for the later proceedings, changing Due Dates 6–7
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`for the earlier proceedings. Id. at 4–6. The parties believe that the proposal
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`would allow the remaining Petitioners sufficient time to accommodate
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`TSMC’s termination while timely meeting the deadlines. Id. at 4. We also
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`observe that the parties’ proposal would not impact the trial schedules for
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`these proceedings significantly, nor our ability to complete the proceedings
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`timely. In a separate decision, we will grant the parties’ Motions to
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`Designate Lead Petitioner and to Amend Scheduling Order.
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`Generally, the Board expects that a proceeding will terminate as to the
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`parties upon settlement. See, e.g., Office Patent Trial Practice Guide, 77
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`Fed. Reg. 48,756, 48,768 (Aug. 14, 2012). Given the facts before us, we
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`
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`4
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`IPR2014-00781
`Patent 7,147,759 B2
`
`
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`determine that it is appropriate to terminate these proceedings with respect
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`TSMC. The proceedings, however, will not be terminated with respect to
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`Zond, as additional Petitioners remain in the proceedings.
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`In consideration of the foregoing, it is hereby:
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`ORDERED that the Joint Motion to Terminate, with respect to
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`TSMC, filed in each pending review identified in the Appendix is granted;
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`FURTHER ORDERED that these reviews are terminated with respect
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`to TSMC only; but these reviews continue to proceed with Zond and the
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`remaining Petitioners—namely Fujitsu, AMD, Renesas, GlobalFoundries,
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`Toshiba, and Gillette;
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`FURTHER ORDERED that the Joint Requests that the Written
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`Settlement Agreement be treated as business confidential information kept
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`separate from the patent file, and made available only to Federal
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`Government agencies on written request, or to any person on a showing of
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`good cause, pursuant to 35 U.S.C. § 317(b) and 37 C.F.R. § 42.74(c), are
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`granted; and
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`FURTHER ORDERED that any subsequent papers filed in these inter
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`partes reviews should not include TSMC in the caption.
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`
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`
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`5
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`
`
`Lead
`Petitioners
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`Backup
`Petitioners
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`Global
`Foundries
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`Gillette
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`Global
`Foundries
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`Gillette
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`Global
`Foundries
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`Gillette
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`APPENDIX
`
`Joinder Cases
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`IPR2014-00856
`IPR2014-01070
`IPR2014-01022
`
`IPR2014-00859
`IPR2014-01072
`IPR2014-01020
`
`IPR2014-00918
`IPR2014-01074
`IPR2014-01025
`
`IPR2014-00864
`IPR2014-01003
`IPR2014-01066
`
`IPR2014-00866
`IPR2014-01012
`IPR2014-01075
`IPR2014-00867
`IPR2014-01014
`IPR2014-01046
`IPR2014-00863
`IPR2014-01013
`IPR2014-01057
`IPR2014-00865
`IPR2014-01015
`IPR2014-01063
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`IPR2014-00781
`Patent 7,147,759 B2
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`
`
`
`
`Patent No.
`
`Pending
`Reviews
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`IPR2014-00828
`
`6,805,779
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`IPR2014-00829
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`IPR2014-00917
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`6,806,652
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`IPR2014-00861
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`6,853,142
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`IPR2014-00818
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`IPR2014-00819
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`IPR2014-00821
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`IPR2014-00827
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`IPR2014-00580
`
`IPR2014-01479
`
`6,896,773
`
`Gillette
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`Fujitsu
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`IPR2014-00726
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`IPR2014-01481
`
`IPR2014-00578
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`IPR2014-01494
`
`6,896,775
`
`Gillette
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`Fujitsu
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`IPR2014-00604
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`IPR2014-01482
`
`
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`6
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`
`
`Lead
`Petitioners
`
`Backup
`Petitioners
`
`Renesas
`
`Global
`Foundries
`
`AMD
`
`Global
`Foundries
`
`Gillette
`
`Global
`Foundries
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`Global
`Foundries
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`Gillette
`
`Joinder Cases
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`IPR2014-00845
`IPR2014-00985
`IPR2014-01047
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`IPR2014-00850
`IPR2014-00986
`IPR2014-01059
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`IPR2014-00846
`IPR2014-01065
`IPR2014-00974
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`IPR2014-00849
`IPR2014-01067
`IPR2014-00975
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`IPR2014-00855
`IPR2014-00955
`IPR2014-01042
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`IPR2014-00858
`IPR2014-00996
`IPR2014-01061
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`IPR2014-00844
`IPR2014-00991
`IPR2014-01037
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`IPR2014-00848
`IPR2014-00992
`IPR2014-01071
`
`IPR2014-00851
`IPR2014-00990
`IPR2014-01069
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`IPR2014-00781
`Patent 7,147,759 B2
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`
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`Patent No.
`
`Pending
`Reviews
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`7,147,759
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`7,604,716
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`7,808,184
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`IPR2014-00781
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`IPR2014-00782
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`IPR2014-00807
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`IPR2014-00808
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`IPR2014-00799
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`IPR2014-00803
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`IPR2014-00800
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`7,811,421
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`IPR2014-00802
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`IPR2014-00805
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`
`
`7
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`
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`IPR2014-00781
`Patent 7,147,759 B2
`
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`
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`For PATENT OWNER:
`
`Gregory J. Gonsalves
`gonsalves@gonsalveslawfirm.com
`
`Bruce J. Barker
`bbarker@chsblaw.com
`
`Tarek Fahmi
`tarek.fahmi@ascendalaw.com
`
`
`
`For PETITIONERS:
`
`TSMC and Fujitsu:
`
`David L. McCombs
`david.mccombs.ipr@haynesboone.com
`
`David M O’Dell
`david.odell.ipr@haynesboone.com
`
`Richard C. Kim
`rckim@duanemorris.com
`
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`GlobalFoundries:
`
`David Tennant
`dtennant@whitecase.com
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`Dohm Chankong
`dohm.chankong@whitecase.com
`
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`Gillette:
`
`David Cavanaugh
`david.cavanaugh@wilmerhale.com
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`Larissa B. Park
`larissa.park@wilmerhale.com
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`8
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`9
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`IPR2014-00781
`Patent 7,147,759 B2
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`
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`AMD:
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`Brian M. Berliner
`bberliner@omm.com
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`Ryan K. Yagura
`ryagura@omm.com
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`Xin-Yi Zhou
`vzhou@omm.com
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`
`
`Toshiba:
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`Robinson Vu
`Robinson.vu@bakerbotts.com
`
`Renesas:
`
`John J. Feldhaus
`jfeldhaus@foley.com
`
`Pavan Agarwal
`pagarwal@foley.com
`
`Mike Houston
`mhouston@foley.com