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`___________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`___________________
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`PETROLEUM GEO-SERVICES INC.
`and
`ION GEOPHYSICAL CORPORATION
`AND ION INTERNATIONAL S.A.R.L.
`Petitioners
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`v.
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`WESTERNGECO LLC
`Patent Owner
`___________________
`
`Case No. IPR2014-006881
`U.S. Patent No. 7,080,607
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`PETITIONER PETROLEUM GEO-SERVICES INC.’S REPLY IN
`SUPPORT OF MOTION TO EXCLUDE
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`David I. Berl, Reg. No. 72,751
`Jessamyn S. Berniker, Reg. No. 72,328
`Thomas S. Fletcher, Reg. No. 72,383
`Christopher A. Suarez, Reg. No. 72,553
`WILLIAMS & CONNOLLY LLP
`725 12th St., NW
`Washington, DC 20005
`Telephone:
`202-434-5000
`Fax:
`202-434-5029
`Counsel for Petitioner, Petroleum Geo-Services Inc.
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`1 Case IPR2015-00567 has been joined with this proceeding.
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`TABLE OF CONTENTS
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`TABLE OF CONTENTS
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`TABLE OF AUTHORITIES .................................................................................... ii
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`TABLE OF AUTHORITIES .................................................................................. .. ii
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`I. WG’s General Grievances About the Motion Are Misplaced. ....................... 1
`I.
`WG’s General Grievances About the Motion Are Misplaced. ..................... ..l
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`II.
`II.
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`The Walker Statement Does Not Comply with the Law. ................................ 1
`The Walker Statement Does Not Comply with the Law ............................... ..l
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`III. Application of the Rule Against Hearsay Is Not Optional. ............................. 3
`III. Application of the Rule Against Hearsay Is Not Optional ............................ ..3
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`IV. Rule 403 Does Apply in This Proceeding, and with Special Force. ............... 4
`IV.
`Rule 403 Does Apply in This Proceeding, and with Special Force. ............. ..4
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`V. WG’s Supplemental Evidence Does Not Cure PGS’s Objections. ................. 5
`V. WG’s Supplemental Evidence Does Not Cure PGS’s Objections. ............... ..5
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`i
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`TABLE OF AUTHORITIES
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`CASES
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`Bruton v. U.S., 391 U.S. 123 (1968) .......................................................................... 5
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`Consol. Rail Corp. v. Grand Trunk Western R.R. Co.,
`2011 WL 6004291 (E.D. Mich. Dec. 1, 2011) ..................................................... 2
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`Harris v. Rivera, 454 U.S. 339 (1981) ....................................................................... 5
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`Moore v. U.S., 429 U.S. 20 (1976) ............................................................................ 3
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`Muldrow ex rel. Estate of Muldrow v. Re-Direct, Inc.,
`493 F.3d 160 (D.C. Cir. 2007) .............................................................................. 2
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`Norman Int’l, Inc. v. Toti Testam. Trust,
`IPR2014-00283, Paper 29 (Sept. 29, 2014) ......................................................... 3
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`Turner v. BNSF R. Co., 338 F.3d 1058 (9th Cir. 2003) ............................................. 4
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`U.S. v. McDaniel, 398 F.3d 540 (6th Cir. 2005) ........................................................ 4
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`OTHER AUTHORITIES
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`37 C.F.R. § 42.62(a) ................................................................................................... 4
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`37 C.F.R. § 42.6(a)(2)(iii) .......................................................................................... 1
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`37 C.F.R. § 42.64(c) ................................................................................................... 1
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`37 C.F.R. § 42.123(b) ................................................................................................ 3
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`Fed. R. Evid. 403 ................................................................................................... 4, 5
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`Fed. R. Evid. 602 ....................................................................................................... 2
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`Fed. R. Evid. 703 ....................................................................................................... 4
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`Fed. R. Evid. 801(d) ................................................................................................... 4
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`Fed. R. Evid. 802 ....................................................................................................... 2
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`ii
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`I. WG’s General Grievances About the Motion Are Misplaced.
`Revealingly, WG’s Opposition does not attempt to defend the admissibility
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`of most of the contested exhibits. Rather, WG spends six pages grumbling about
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`the form of PGS’s motion. PGS’s motion complies with 37 C.F.R. § 42.64(c).
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`Each section identifies by number the exhibits subject to the particular objection,
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`where WG relied on those exhibits, and the grounds for exclusion. And PGS
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`referred the Board to its earlier-served objections, which addressed the exhibits in
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`numerical order. Paper 86 (“Mot.”) at 2; see also Exs. 1113-15. The first page of
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`the motion included a table (single-spaced per 37 C.F.R. § 42.6(a)(2)(iii)), listing
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`the objectionable exhibits in order, the basis for the objection, and where it is
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`addressed in detail. Having inundated the record with evidence so clearly
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`inadmissible that WG does not even attempt to defend it, WG cannot properly
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`blame PGS for the numerosity of its objections. See Paper 90 (“Opp.”) at 1.
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`WG wrongly complains that PGS “completely ignores [WG’s] supplemental
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`evidence.” Opp. at 3. Not so. PGS considered WG’s supplemental evidence and
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`withdrew some of its original objections. Compare Mot. with Exs. 1113-15. But,
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`as PGS expressly stated, see Mot. at 6-7, 10-11, WG’s efforts to cure others
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`through supplemental evidence were insufficient. See also § V, infra.
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`II. The Walker Statement Does Not Comply with the Law.
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`III. Application of the Rule Against Hearsay Is Not Optional.
`WG deems excluding hearsay “extraordinary” relief and urges consideration
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`of the “full record,” apparently without regard to admissibility. Opp. at 1-2, 14-15.
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`That is a remarkable position given the Supreme Court’s rule that, even in bench
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`trials, courts may not consider hearsay. Moore v. U.S., 429 U.S. 20, 22 (1976).
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`WG cannot rely upon the ION jury verdict, district court rulings, or ION case
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`transcripts, which are all hearsay. Mot. at 7-8. Lumping all ION case materials
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`together, WG’s only response is “PGS cannot use these litigation records as a
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`3
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`sword and then credibly argue that Patent Owner’s citation to such documents is
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`somehow improper.” Opp. at 11, n.5. This is not improper—it is how the hearsay
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`rule works. PGS’s reliance on WG’s briefs and testimony from the ION case is
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`permitted because they are WG’s admissions, and thus are “not hearsay.” FRE
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`801(d). This in no way makes other ION documents—e.g., the jury verdict, district
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`court’s rulings, and other witnesses’ testimony—admissible, because they are not
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`PGS admissions. U.S. v. McDaniel, 398 F.3d 540, 545 (6th Cir. 2005).
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`As to transcripts cited by Dr. Triantafyllou, Rule 703 only permits an expert
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`opinion to rely upon hearsay to form an opinion—it does not permit an expert to
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`read hearsay into the record, as Dr. Triantafyllou does in his declaration. See, e.g.,
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`Turner v. BNSF R. Co., 338 F.3d 1058, 1061-62 (9th Cir. 2003).
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`IV. Rule 403 Does Apply in This Proceeding, and with Special Force.
`PGS previously explained that any evidence that is hearsay as to PGS but
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`not as to ION, e.g., Ex. 2149, must be excluded under Rule 403. See Mot. at 12-
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`15. WG offers two responses, neither of which has merit.
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`1. WG suggests that the public-at-large will be prejudiced if evidence is
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`expunged. See Opp. at 14-15. PGS is not asking the Board to purge inadmissible
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`evidence from the public record—it is simply asking the Board not to consider it.
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`2. WG wrongly argues that Rule 403 does not apply in the absence of a
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`jury. Opp. at 15. The federal rules, including Rule 403, explicitly apply here. 37
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`4
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`C.F.R. § 42.62(a). It is true that “judges routinely hear inadmissible evidence that
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`they are presumed to ignore.” Harris v. Rivera, 454 U.S. 339, 346 (1981). The
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`problem here, however, is that no limiting instruction or mental “cordoning off” of
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`evidence is possible, because the sole issue in this proceeding—whether claims
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`should be canceled—is a unitary issue, identical and indivisible as to all parties.
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`Mot. at 12-15. Rule 403 applies with special force to such situations, Bruton v.
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`U.S., 391 U.S. 123, 135-36 (1968), and PGS should not be prejudiced by the
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`Board’s consideration of evidence that is admissible only against ION.
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`V. WG’s Supplemental Evidence Does Not Cure PGS’s Objections.
`WG did not serve supplemental evidence to authenticate Exs. 2003, 2005,
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`2006, and 2019 and does not address PGS’s authentication objection. These
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`exhibits must be excluded. Next, the Gilman declaration describes Exs. 2085 and
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`2096 as nothing but “trial exhibits,” see Mot. at 11; Ex. 2101 ¶¶ 16, 22, which does
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`not establish that they are what WG proffers them to be,
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` Ex. 2096 on its face plainly indicates that it
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`is not a “Business plan,” but some incomplete draft. See, e.g., Ex. 2096 at 4, 6-9.
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`Similarly, PGS explained that Mr. Walker’s authenticating declaration (Ex. 2104)
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`could not show that various WG documents were “business records,”
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`Respectfully submitted,
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` /David Berl/
`David Berl
`Reg. No. 72,751
`Williams & Connolly LLP
`725 Twelfth Street, N.W.
`Washington, DC 20005
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`Phone: 202-434-5491
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`Dated: July 13, 2015
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`6
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`CERTIFICATE OF SERVICE
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`The undersigned hereby certifies that the above-captioned Petitioner
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`Petroleum Geo-Services Inc.’s Reply in Support of Motion to Exclude was served
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`on July 13, 2015, by delivering a copy via electronic mail upon the following
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`attorneys of record.
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`For Petitioner ION Geophysical Corporation and ION International S.A.R.L.:
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`Michael L. Kiklis
`CPDocketKiklis@oblon.com
`Scott McKeown
`CPDocketMcKeown@oblon.com
`Kevin Laurence
`CPDocketLaurence@oblon.com
`Katherine Cappaert
`CPDocketCappaert@oblon.com
`Christopher Ricciuti
`CPDocketRicciuti@oblon.com
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`Oblon
`1940 Duke Street
`Alexandria, Virginia 22314
`703-413-3000
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`W. Karl Renner
`Roberto Devoto
`IPR37136-0002IP1@fr.com
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`Fish & Richardson P.C.
`3200 RBC Plaza
`60 South Sixth Street
`Minneapolis, MN 55402
`202-783-5070
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`For Patent Owner:
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`Respectfully submitted,
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`
` /David Berl/
`David Berl
`Reg. No. 72,751
`Williams & Connolly LLP
`725 Twelfth Street, N.W.
`Washington, DC 20005
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`Phone: 202-434-5491
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`Dated: July 13, 2015