`571.272.7822
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`Paper No. 12
`Filed: October 30, 2014
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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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`MICROSOFT CORP.,
`Petitioner,
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`v.
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`VIRNETX INC.,
`Patent Owner.
`____________
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`Case IPR2014-00614
`Patent 7,418,504 B21
`____________
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`Before MICHAEL P. TIERNEY, KARL D. EASTHOM, and
`STEPHEN C. SIU, Administrative Patent Judges.
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`EASTHOM, Administrative Patent Judge.
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`DECISION
`Request for Rehearing
`37 C.F.R. § 42.71(c)
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`1 Case IPR2014-00613 has been consolidated with the instant proceeding.
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`IPR2014-00612, IPR2014-00613, and IPR2014-00614
`Patent 7,418,504 B2
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`I. INTRODUCTION
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`Petitioner’s Rehearing Request seeks a modification of the Board’s
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`determination “with regard to the anticipation of claims 32 and 56 by
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`Provino, because the Board . . . misapprehended or overlooked Petitioner’s
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`inclusion of these claims in the proposed grounds of unpatentability.” Paper
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`11, 2 (“Req. Reh’g”). As relief, Petitioner “requests that the Board amend
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`the [I]nstitution [D]ecision to include review of claims 32 and 56 based on
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`anticipation by Provino.” Req. Reh’g 2.
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`“When rehearing a decision on petition, a panel will review the
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`decision for an abuse of discretion.” 37 C.F.R. § 42.71(c).
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`II. DISCUSSION
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`The Rehearing Request demonstrates an abuse of discretion, because
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`we overlooked Petitioner’s showing of anticipation of claims 32 and 56 by
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`Provino. On this record, Petitioner showed a reasonable likelihood of
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`prevailing on the ground that Provino anticipates claims 32 and 56. See
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`IPR2014-00613, Paper 2, 47 (“’613 IPR, Pet.”); Req. Reh’g 2–5. As
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`Petitioner shows in its Rehearing Request, the failure to list claims 32 and 56
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`as part of the review based on anticipation by Provino amounts to “an
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`inadvertent transcription error, rather than a deliberate omission.” See Req.
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`Reh’g 3. The Institution Decision states that “[a]s an alternative to
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`anticipation, Petitioner asserts that claims 29–32 and 53–56 are unpatentable
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`under 35 U.S.C. § 103(a) over Provino and Kosiur. ’613 IPR, Pet. 50–53.”
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`Paper 9, 25–26 (emphasis added).2
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`2 Based on this alternative obviousness showing, we instituted trial on the
`ground that the combination of Provino and Kosiur renders claims 32 and 56
`obvious.
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`2
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`IPR2014-00612, IPR2014-00613, and IPR2014-00614
`Patent 7,418,504 B2
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`III. CONCLUSION
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`Based on the foregoing discussion, we grant Petitioner’s requested
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`relief and modify the Institution Decision to reflect trial institution on the
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`additional ground that Provino anticipates claims 32 and 56.
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`IV. ORDER
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`For the reasons given, it is
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`ORDERED that the Petitioner’s Rehearing Request is granted; and
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`FURTHER ORDERED that the Institution Decision is modified
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`accordingly to reflect that trial hereby is instituted retroactively as of the
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`date of the Institution Decision, in accordance with the existing Scheduling
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`Order, on the alternative ground that Provino anticipates claims 32 and 56.
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`3
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`IPR2014-00612, IPR2014-00613, and IPR2014-00614
`Patent 7,418,504 B2
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`For PETITIONER:
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`W. Karl Renner
`Kevin E. Greene
`FISH & RICHARDSON P.C.
`axf@fr.com
`IPR38868-0007IP1@fr.com
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`For PATENT OWNER:
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`Joseph E. Palys
`Naveen Modi
`PAUL HASTINGS LLP
`josephpalys@paulhastings.com
`naveenmodi@paulhastings.com
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`Jason E. Stach
`FINNEGAN, HENDERSON, FARABOW, GARRETT & DUNNER, LLP
`jason.stach@finnegan.com
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`4
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