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UNITED STATES PATENT AND TRADEMARK OFFICE
`
`______________________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`
`
`American Honda Motor Co., Inc.
`
`Petitioner
`
`
`
`v.
`
`
`
`AMERICAN VEHICULAR SCIENCES
`
`Patent Owner
`
`
`
`Patent No. 8,036,788
`
`Issue Date: October 11, 2011
`
`Title: VEHICLE DIAGNOSTIC OR PROGNOSTIC MESSAGE
`TRANSMISSION SYSTEMS AND METHODS
`
`
`
`PATENT OWNER’S PRELIMINARY RESPONSE
`TO PETITION FOR INTER PARTES REVIEW OF
`U.S. PATENT NO. 8,036,788 PURSUANT TO 37 C.F.R. § 42.107
`
`Case No. IPR2014-00629
`
`
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`

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`
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`I.
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`TABLE OF CONTENTS
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`INTRODUCTION ...................................................................................... 1
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`II. THE BOARD SHOULD REJECT AT LEAST THOSE
`
`GROUNDS THAT ARE THE SAME OR SUBSTANTIALLY
`
`THE SAME AS GROUNDS PREVIOUSLY PRESENTED TO
`
`THE BOARD .............................................................................................. 3
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`III. THE BOARD SHOULD NOT STAY THE PROCEEDINGS ................ 5
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`IV. CONCLUSION ........................................................................................... 6
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`i
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`

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`
`
`I.
`
`INTRODUCTION
`
`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
`
`Patent Owner American Vehicular Sciences (“Patent Owner or AVS”)
`
`submits the following preliminary response to the Petition filed by American
`
`Honda Motor Co., Inc. (“Honda” or “Petitioner”) requesting inter partes review of
`
`claims 1-7, 13, and 20 of U.S. Pat. No. 8,036,788 (“the ‘788 patent”). This filing is
`
`timely under 35 U.S.C. § 313 and 37 C.F.R. § 42.107 because it is filed within
`
`three months of the April 22, 2014 mailing date of the Notice granting the Petition
`
`an April 15, 2014 filing date.
`
`Honda is one of several defendants in district court litigation currently
`
`pending on this same patent. Toyota Motor Corporation, another defendant,
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`already filed an IPR (IPR2013-00417) on this same patent on July 8, 2013. Honda
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`waited over nine months—after the Toyota petition was granted and after AVS
`
`responded and set forth its arguments as to the prior art raised by Toyota—to file
`
`its own petition. Honda’s petition raises many of the same or substantially the
`
`same arguments as Toyota’s petition—seeking to have AVS defend the same
`
`claims against the same prior art arguments twice. In fact, at least one of the
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`grounds raised by Honda in the present petition (anticipation by Fry of claims 1, 3,
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`4, 6, 7) is identical to a ground raised by Toyota and denied by the Board. Honda
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`wants a second bite at the apple on grounds that the Board rejected with respect to
`
`Toyota. And, Honda timed its petition so that AVS would have to pay to defend
`
`
`
`1
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`

`

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`multiple IPRs staggered in time, even if Toyota’s first-filed IPR ends up mooting
`
`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
`
`some or all of Honda’s arguments.
`
`Pursuant to 35 U.S.C. § 315 and § 325, AVS submits that the Board should
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`exercise its discretion by rejecting (at least) those grounds in Honda’s petition that
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`raise the same or substantially the same prior art or arguments previously presented
`
`to the Board by Toyota. Moreover, AVS submits that the Board should not stay
`
`these proceedings. A stay of the proceedings pending the outcome of Toyota’s
`
`petition would frustrate the goal of securing a speedy resolution of every IPR
`
`proceeding, and promote the strategic filing of serial IPRs for the purpose of
`
`prolonging the staying of co-pending litigation.
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`Beyond these requests, AVS waives its right, pursuant to 37 C.F.R §
`
`42.107(b), to present a substantive preliminary response on the merits of whether
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`Honda has shown a reasonable likelihood of success in invalidating one or more of
`
`the claims of the ‘788 patent. As indicated in the Trial Practice Guide, no adverse
`
`inference should be taken by this election. See Office Patent Trial Practice Guide,
`
`Fed. Reg. Vol. 77, No. 157 (2012) at Section II.C. AVS reserves all rights to
`
`submit a Patent Owner Response and/or Amendment of the Patent pursuant to 37
`
`C.F.R. §§ 42.120 and 42.121, respectively, should the Board institute an inter
`
`partes review. This election should not be deemed a waiver or admission on the
`
`part of the Patent Owner of any material presented in the Petition.
`
`
`
`2
`
`

`

`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
`
`
`
`II. THE BOARD SHOULD REJECT AT LEAST THOSE GROUNDS
`THAT ARE THE SAME OR SUBSTANTIALLY THE SAME AS
`GROUNDS PREVIOUSLY PRESENTED TO THE BOARD
`
`The Patent Statute provides that “[i]n determining whether to institute or
`
`order [an IPR] proceeding . . . the Director may take into account whether, and
`
`reject the petition or request because, the same or substantially the same prior art or
`
`arguments previously were presented to the [Board].” 35 U.S.C. § 325(d).
`
`Here, three of Honda’ proposed grounds for rejection are the same or
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`substantially the same as grounds for rejection that were presented by Toyota in
`
`IPR2013-00417, including one ground that was already denied by the Board.1 In
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`particular, both Honda and Toyota raised the following identical grounds for
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`invalidity of at least the following same claims:
`
`Anticipation by Scholl of claims 1-7;
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`Anticipation by Ishihara of claims 1, 3, 4, 6, 7; and
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`Anticipation by Fry of claims 1, 3, 4, 6, 7 (denied by the Board in IPR2013-00417
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`as redundant; review based on Fry only instituted on other claims)
`
`
` AVS notes that the Statute does not apply only to situations where the same or
`
`1
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`substantially the same prior art or arguments are presented by the same petitioner;
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`accordingly, presentation of the same or substantially the same arguments by
`
`different Petitioners also falls within the Statute. See 35 U.S.C. § 325(d).
`
`
`
`3
`
`

`

`
`In fact, Honda expressly admits in its petition that “[t]he grounds set forth in those
`
`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
`
`sections [relating to Scholl, Fry, and Ishihara] are based on the same prior art as
`
`those instituted by the Board in the IPR2013-00417,” and that Honda only included
`
`them in its petition in “an abbreviated fashion.”
`
`Moreover, in Amkor Technology, IPR2013-00242, Paper 37, for example,
`
`the Board rejected proposed grounds for invalidity as redundant over grounds even
`
`though the new grounds contained a different prior art reference. The Board
`
`reasoned that “absent some explanation as to why differences between a set of prior
`
`art references are relevant (e.g., why reference A is a stronger reference with
`
`respect to claim element X than reference B), the fact that references disclose
`
`slightly different things does not demonstrate that asserted grounds are not
`
`cumulative of each other.” Id. at 33.
`
`Accordingly, the Board should deny review of at least the above-listed
`
`grounds proposed by Honda because they are identical or nearly identical to the
`
`grounds proposed by Toyota in IPR2013-00417. Granting review of the same
`
`grounds in this Petition would be wasteful and duplicative, forcing AVS to incur
`
`the expense of responding to the same arguments in two proceedings. The Board
`
`should therefore exercise its discretion under 35 U.S.C. § 325(d) to reject the
`
`above identified grounds. Finally, the Board should reject all grounds to the extent
`
`they are redundant.
`
`
`
`4
`
`

`

`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
`
`
`
`III. THE BOARD SHOULD NOT STAY THE PROCEEDINGS
`
`The Patent Statute also provides that “during the pendency of an inter partes
`
`review, if another proceeding or matter involving the patent is before the Office,
`
`the Director may determine the manner in which the inter partes review or other
`
`proceeding or matter may proceed, including providing for stay, transfer,
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`consolidation, or termination of any such matter or proceeding.” 35 U.S.C. § 315.
`
`The Board has also recognized that serial-filed IPR proceedings should not be
`
`allowed to circumvent the Board’s mandate “to secure the just, speedy, and
`
`inexpensive resolution of every proceeding.” SAS Inst., Inc. v. ComplementSoft,
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`LLC, IPR2013-00581, Paper 15 at 22-23 (P.T.A.B. Dec. 30, 2013).
`
`Here, ordering a stay pending the conclusion of the Toyota proceedings
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`would frustrate the goal of securing a just, speedy, and inexpensive resolution of
`
`the patentability of the ‘788 patent. The Board already instituted review of most of
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`the same claims, on several of the same proposed grounds, in IPR2013-00417—
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`and the proceedings can move forward in parallel.
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`Moreover, allowing the filing of serial IPRs in this case would promote
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`gamesmanship; Honda could have chosen to join the long-pending Toyota
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`proceedings long ago, but it chose not to do so.
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`Finally, allowing a stay in this case would promote the strategic filing of
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`serial IPRs for the improper purpose of prolonging the stay of co-pending district
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`
`
`5
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`

`

`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
`
`
`court litigation.
`
`IV. CONCLUSION
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`For at least the foregoing reasons, AVS respectfully requests that the Board
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`exercise its discretion to refuse to institute an inter partes review for the proposed
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`grounds and refuse to grant a stay of proceedings.
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`Respectfully submitted,
`
`/Scott P. McBride/
`Scott P. McBride
`Registration No. 42,853
`
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`DATE: July 22, 2014
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`
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`
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`MCANDREWS HELD & MALLOY
`500 West Madison, 34th Floor
`Chicago, IL 60661
`Telephone: (312) 775-8000
`Facsimile: (312) 775-8100
`
`
`CUSTOMER NUMBER: 23446
`
`
`
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`6
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`

`

`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
`
`
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that the Patent Owner’s Preliminary Response to Petition for
`
`Inter Partes Review of U.S. Patent No. 8,036,788 Pursuant to 37 C.F.R. § 42.107
`
`in connection with Inter Partes Review Case IPR2014-00629 was served on this
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`22nd day of July by electronic mail to the following:
`
`
`
`Back-up Counsel
`Joseph M. Beauchamp (Reg. No. 46,544)
`(jbeauchamp@jonesday.com)
`H. Albert Liou (Reg. No. 71,504)
`(aliou@jonesday.com)
`JONES DAY
`717 Texas Ave., Suite 3300
`Houston, Texas 77002
`T: (832) 239-3939
`
`
`
`
`
`
`/Scott P. McBride/
`Scott P. McBride
`Registration No. 42,853
`
`
`Lead Counsel
`Joseph Melnik (Reg. No. 48,741)
`(jmelnik@jonesday.com)
`JONES DAY
`1755 Embarcadero Road
`Palo Alto, CA 94303
`T: (650) 739-3939
`
`
`
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`
`
`MCANDREWS HELD & MALLOY
`
`
`
`
`
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`Telephone: 312-775-8000
`
`
`Facsimile: 312-775-8100
`
`
`
`
`
`CUSTOMER NUMBER: 23446
`
`Date: July 22, 2014
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`7
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`

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