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`______________________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`American Honda Motor Co., Inc.
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`Petitioner
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`v.
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`AMERICAN VEHICULAR SCIENCES
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`Patent Owner
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`Patent No. 8,036,788
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`Issue Date: October 11, 2011
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`Title: VEHICLE DIAGNOSTIC OR PROGNOSTIC MESSAGE
`TRANSMISSION SYSTEMS AND METHODS
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`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
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`Case No. IPR2014-00629
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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
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`GROUNDS THAT ARE THE SAME OR SUBSTANTIALLY
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`THE SAME AS GROUNDS PREVIOUSLY PRESENTED TO
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`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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`INTRODUCTION
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`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
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`Patent Owner American Vehicular Sciences (“Patent Owner or AVS”)
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`submits the following preliminary response to the Petition filed by American
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`Honda Motor Co., Inc. (“Honda” or “Petitioner”) requesting inter partes review of
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`claims 1-7, 13, and 20 of U.S. Pat. No. 8,036,788 (“the ‘788 patent”). This filing is
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`timely under 35 U.S.C. § 313 and 37 C.F.R. § 42.107 because it is filed within
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`three months of the April 22, 2014 mailing date of the Notice granting the Petition
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`an April 15, 2014 filing date.
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`Honda is one of several defendants in district court litigation currently
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`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
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`responded and set forth its arguments as to the prior art raised by Toyota—to file
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`its own petition. Honda’s petition raises many of the same or substantially the
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`same arguments as Toyota’s petition—seeking to have AVS defend the same
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`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
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`Toyota. And, Honda timed its petition so that AVS would have to pay to defend
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`1
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`multiple IPRs staggered in time, even if Toyota’s first-filed IPR ends up mooting
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`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
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`some or all of Honda’s arguments.
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`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
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`to the Board by Toyota. Moreover, AVS submits that the Board should not stay
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`these proceedings. A stay of the proceedings pending the outcome of Toyota’s
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`petition would frustrate the goal of securing a speedy resolution of every IPR
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`proceeding, and promote the strategic filing of serial IPRs for the purpose of
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`prolonging the staying of co-pending litigation.
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`Beyond these requests, AVS waives its right, pursuant to 37 C.F.R §
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`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
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`the claims of the ‘788 patent. As indicated in the Trial Practice Guide, no adverse
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`inference should be taken by this election. See Office Patent Trial Practice Guide,
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`Fed. Reg. Vol. 77, No. 157 (2012) at Section II.C. AVS reserves all rights to
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`submit a Patent Owner Response and/or Amendment of the Patent pursuant to 37
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`C.F.R. §§ 42.120 and 42.121, respectively, should the Board institute an inter
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`partes review. This election should not be deemed a waiver or admission on the
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`part of the Patent Owner of any material presented in the Petition.
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`2
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`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
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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
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`The Patent Statute provides that “[i]n determining whether to institute or
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`order [an IPR] proceeding . . . the Director may take into account whether, and
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`reject the petition or request because, the same or substantially the same prior art or
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`arguments previously were presented to the [Board].” 35 U.S.C. § 325(d).
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`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
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`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:
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`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)
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` AVS notes that the Statute does not apply only to situations where the same or
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`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
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`different Petitioners also falls within the Statute. See 35 U.S.C. § 325(d).
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`3
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`In fact, Honda expressly admits in its petition that “[t]he grounds set forth in those
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`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
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`sections [relating to Scholl, Fry, and Ishihara] are based on the same prior art as
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`those instituted by the Board in the IPR2013-00417,” and that Honda only included
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`them in its petition in “an abbreviated fashion.”
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`Moreover, in Amkor Technology, IPR2013-00242, Paper 37, for example,
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`the Board rejected proposed grounds for invalidity as redundant over grounds even
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`though the new grounds contained a different prior art reference. The Board
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`reasoned that “absent some explanation as to why differences between a set of prior
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`art references are relevant (e.g., why reference A is a stronger reference with
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`respect to claim element X than reference B), the fact that references disclose
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`slightly different things does not demonstrate that asserted grounds are not
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`cumulative of each other.” Id. at 33.
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`Accordingly, the Board should deny review of at least the above-listed
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`grounds proposed by Honda because they are identical or nearly identical to the
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`grounds proposed by Toyota in IPR2013-00417. Granting review of the same
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`grounds in this Petition would be wasteful and duplicative, forcing AVS to incur
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`the expense of responding to the same arguments in two proceedings. The Board
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`should therefore exercise its discretion under 35 U.S.C. § 325(d) to reject the
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`above identified grounds. Finally, the Board should reject all grounds to the extent
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`they are redundant.
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`4
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`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
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`III. THE BOARD SHOULD NOT STAY THE PROCEEDINGS
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`The Patent Statute also provides that “during the pendency of an inter partes
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`review, if another proceeding or matter involving the patent is before the Office,
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`the Director may determine the manner in which the inter partes review or other
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`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.
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`The Board has also recognized that serial-filed IPR proceedings should not be
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`allowed to circumvent the Board’s mandate “to secure the just, speedy, and
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`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).
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`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
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`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
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`court litigation.
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`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,
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`/Scott P. McBride/
`Scott P. McBride
`Registration No. 42,853
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`DATE: July 22, 2014
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`MCANDREWS HELD & MALLOY
`500 West Madison, 34th Floor
`Chicago, IL 60661
`Telephone: (312) 775-8000
`Facsimile: (312) 775-8100
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`CUSTOMER NUMBER: 23446
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`6
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`PATENT OWNER’S PRELIMINARY RESPONSE
`IPR2014-00629
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`CERTIFICATE OF SERVICE
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`I hereby certify that the Patent Owner’s Preliminary Response to Petition for
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`Inter Partes Review of U.S. Patent No. 8,036,788 Pursuant to 37 C.F.R. § 42.107
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`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:
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`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
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`/Scott P. McBride/
`Scott P. McBride
`Registration No. 42,853
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`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
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`Facsimile: 312-775-8100
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`CUSTOMER NUMBER: 23446
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`Date: July 22, 2014
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`7
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