throbber
IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`_________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_________________
`
`
`ZIMMER HOLDINGS, INC.
`ZIMMER, INC.
`Petitioners
`
`v.
`
`BONUTTI SKELETAL INNOVATIONS LLC
`Patent Owner
`
`__________________
`
`
`Patent No. 7,837,736
`Filing Date: October 30, 2007
`Issue Date: November 23, 2010
`Title: MINIMALLY INVASIVE SURGICAL SYSTEMS AND METHODS
`
`__________________
`
`Inter Partes Review No. Unassigned
`
`__________________
`
`
`MOTION FOR JOINDER TO RELATED
`INSTITUTED INTER PARTES REVIEW (37 C.F.R. § 42.122(b))
`
`
`
`
`
`
`

`

`
`
`I.
`
`II.
`
`TABLE OF CONTENTS
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`STATEMENT OF RELIEF REQUESTED .................................................... 1
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`STATEMENT OF MATERIAL FACTS ........................................................ 1
`
`III. LEGAL STANDARDS AND APPLICABLE RULES .................................. 6
`
`IV. ARGUMENT ................................................................................................... 7
`
`A. Multiple Reasons Show that Joinder Is Appropriate ............................ 7
`
`1.
`
`2.
`
`3.
`
`Considerations of Efficiency Support Joinder ............................ 7
`
`Lack of Undue Prejudice to Patent Owner Supports
`Joinder ....................................................................................... 11
`
`Public Policy Considerations Support Joinder ......................... 11
`
`The New Grounds of Unpatentability in Zimmer’s New Petition
`Attack Only Dependent Claims ........................................................... 12
`
`Joinder Would Not Unduly Delay the Resolution of Either
`Proceeding and Any Delay Could Be Ameliorated Through
`Consolidation of Due Dates, Briefing, and Discovery ........................ 13
`
`B.
`
`C.
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`V.
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`CONCLUSION .............................................................................................. 15
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`I.
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`STATEMENT OF RELIEF REQUESTED
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`Pursuant to 35 U.S.C. § 315(c) and 37 C.F.R. § 42.122(b), Petitioners
`
`Zimmer Holdings, Inc. and Zimmer, Inc. (collectively, “Zimmer” or “Petitioners”)
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`seek with this Motion to have their Petition for Inter Partes Review (“IPR”) of
`
`claims 23-25 of U.S. Patent No. 7,837,736 (the “New Petition” involving the “’736
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`Patent” (Ex. 1001)), filed contemporaneously herewith, joined with the instituted
`
`inter partes review, Zimmer Holdings, Inc. & Zimmer, Inc. v. Bonutti Skeletal
`
`Innovations LLC, IPR2014-00191 (instituted June 2, 2014) (Ex. 1011), which
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`involves claims 15-22, 26-28, and 31-36 of the ’736 Patent. If the Board deems it
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`a necessary concurrent measure in granting this Motion, pursuant to 35 U.S.C.
`
`§ 315(d) and 37 C.F.R. § 42.122(a), Zimmer further requests that the Board
`
`consolidate the matter involving the New Petition with IPR2014-00191.
`
`II.
`
`STATEMENT OF MATERIAL FACTS
`
`1.
`
`On September 10, 2012, Patent Owner, Bonutti Skeletal Innovations
`
`LLC (“Bonutti” or “Patent Owner”), filed a lawsuit against Zimmer involving
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`three patents generally related to knee implants and implantation methods, Bonutti
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`Skeletal Innovations LLC v. Zimmer Holdings, Inc. & Zimmer, Inc., No. 1:12-cv-
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`01107-GMS (D. Del.) (the “Concurrent Litigation”).
`
`2.
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`Zimmer received service of Bonutti’s Complaint in the Concurrent
`
`Litigation on January 4, 2013.
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`3.
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`On January 15, 2013, Bonutti filed an Amended Complaint in the
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`Concurrent Litigation, which included claims directed to three additional patents
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`generally related to knee implants and implantation methods, including the ’736
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`Patent.
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`4.
`
`Zimmer received service of Bonutti’s Amended Complaint in the
`
`Concurrent Litigation on the same day it was filed, January 15, 2013.
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`5. With respect to the ’736 Patent, Zimmer’s one-year deadline under 35
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`U.S.C. § 315(b) and 37 C.F.R. § 42.101(b) was January 15, 2014.
`
`6.
`
`On November 22, 2013, Zimmer filed a petition seeking IPR of
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`claims 15-28 and 31-36 of the ’736 Patent. (See IPR2014-00191, Paper 1.)
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`7.
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`At the time Zimmer filed its petition in IPR2014-00191, Zimmer
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`was—and at present remains—unaware of the claims of the ’736 Patent that
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`Bonutti intends to assert against Zimmer in the Concurrent Litigation. Zimmer
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`drafted its petition in IPR2014-00191 without certainty regarding which claims of
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`the ’736 Patent Bonutti may, in the future, attempt to assert against Zimmer.
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`8.
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`On January 22, 2014, Zimmer and others adverse to Bonutti in the
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`Concurrent Litigation jointly moved to stay the litigation pending the outcome of
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`various IPR petitions involving patents asserted in the Concurrent Litigation,
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`including the ’736 Patent. (See Concurrent Litigation, Dkt. No. 36 (Ex. 1016).)
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`9.
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`On April 7, 2014, the Court granted the joint motion to stay the
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`Concurrent Litigation, (see id. Dkt. No. 45 (Ex. 1017)), and, as such, the
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`Concurrent Litigation is presently stayed.
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`10.
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`In granting the stay, the Court found that “[d]espite the Defendants’
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`requests for specificity, Bonutti did not clearly state before the IPR deadline which
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`of the hundreds of claims in its multiple patents it intended to assert against the
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`Defendants. Under the circumstances, the Defendants’ use of the year-long period
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`[after being served with Bonutti’s complaint, under 37 C.F.R. § 42.101(b),] to
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`attempt to determine exactly which claims Bonutti would ultimately assert was
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`reasonable.” (Ex. 1017, at 7 (citations omitted).)
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`11. On June 2, 2014, the Board instituted IPR in IPR2014-00191 for
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`claims 15-22, 26-28, and 31-36—but not claims 23-25—of the ’736 Patent. (See
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`Ex. 1011, IPR2014-00191, Paper 12, at 2, 17.)
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`12. Claims 23 and 25 each depend from independent claim 15, and claim
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`24 further depends from claim 23.
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`13. Among other grounds, Zimmer’s petition in IPR2014-00191 sought
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`review of claim 15 on the ground that it was anticipated by U.S. Patent No.
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`5,755,801 to Walker et al. (“Walker”) (Ex. 1002) under 35 U.S.C. § 102(b). (See
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`IPR2014-00191, Paper 1, at 3-4.) In addition, Zimmer sought review of claims 23-
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`25 on the basis of various grounds, several of which included Walker. (Id.)
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`14. The Board instituted IPR on claim 15 on the basis that Zimmer had
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`“demonstrated a reasonable likelihood” that Walker anticipates the claim. (See Ex.
`
`1011, IPR2014-00191, Paper 12, at 10-12.)
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`15.
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`In declining to institute IPR proceedings as to claim 25, the Board
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`found that “claim 25 contains a means-plus-function limitation”—“means
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`associated with said protrusion to prevent a separation of said base sliding side and
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`said moveable sliding side”—but declined to construe that limitation because
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`Zimmer did not provide a proposed construction. (Id. at 8-9.) “For this reason
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`alone,” the Board stated that it was “not persuaded Petitioner has demonstrated a
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`reasonable likelihood of prevailing on its contention that claim 25 of the ’736
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`Patent is unpatentable as alleged.” (Id. at 12-13.)
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`16.
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`In declining to institute IPR proceedings as to claims 23 and 24, the
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`Board stated that it was not persuaded that one of ordinary skill in the art would
`
`have considered U.S. Patent No. 6,068,658 to Insall et al. “to disclose or suggest
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`the ‘dovetail joint’ recited in claims 23 and 24.” (Id. at 16.)
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`17. Concurrently with this Motion, Zimmer files its New Petition, which
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`challenges claim 23-25.
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`18. Zimmer’s New Petition includes a claim construction analysis for the
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`means-plus-function limitation of claim 25, as well as prior art disclosing the
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`“dovetail joint” of claims 23 and 24. As such, Zimmer’s New Petition directly
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`addresses the issues that caused the Board to decline to institute trial on claims 23-
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`25 in IPR2014-00191.
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`19. Zimmer’s New Petition relies on Walker and one reference that
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`Zimmer did not present in its petition IPR2014-00191. First, Zimmer challenges
`
`claim 25 on the ground of anticipation by Walker. Second, Zimmer challenges
`
`claims 23-25 on the ground of obviousness over Walker in view of U.S. Patent
`
`4,340,978 to Buechel et al. (“Buechel”) (Ex. 1012).
`
`20. Both grounds for challenging dependent claims 23-25 in Zimmer’s
`
`New Petition rely on Walker, on which the Board based its decision to institute
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`trial on underlying independent claim 15.
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`21. The New Petition relies, in part, on a declaration of Arthur G.
`
`Erdman, Ph.D, (Ex. 1013), the same expert who provided testimony in support of
`
`Zimmer’s arguments in IPR2014-00191 (Ex. 1005). Dr. Erdman’s additional
`
`testimony addresses only the two invalidity grounds asserted for claims 23-25 in
`
`the New Petition.
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`22. This Motion and Zimmer’s New Petition are being filed over five
`
`weeks before Patent Owner’s first deadline, Due Date 1, on August 6, 2014, under
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`the Board’s Scheduling Order. (See IPR2014-00191, Paper 13, at 6.)
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`III. LEGAL STANDARDS AND APPLICABLE RULES
`The Board has discretion to join a properly filed IPR petition to a previously
`
`instituted IPR proceeding. 35 U.S.C. § 315(c); 37 C.F.R. § 42.122(b); see also
`
`Samsung Elecs. Co. Ltd. v. Va. Innovation Scis., Inc., IPR2014-00557, Paper 10, at
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`14-16 (P.T.A.B. June 13, 2014); Sony Corp. v. Yissum Res. & Dev. Co. of the
`
`Hebrew Univ. of Jerusalem, IPR2013-00326, Paper 15, at 3-4 (P.T.A.B. Sept. 24,
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`2013); Dell Inc. v. Network-1 Sec. Solutions, Inc., IPR2013-00385, Paper 17, at 4-6
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`(P.T.A.B. July 29, 2013); Microsoft Corp. v. Proxyconn, Inc., IPR2013-00109,
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`Paper 15, at 3-4 (P.T.A.B. Feb. 25, 2013).
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`This Motion is timely filed within one month after institution of the trial in
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`IPR2014-00191, and the time periods set forth in 35 U.S.C. § 315(b) and 37 C.F.R.
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`§ 42.101(b) do not apply to Zimmer’s New Petition because it is accompanied by
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`this request for joinder. 35 U.S.C. § 315(b); 37 C.F.R. § 42.122(b). “The Board
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`will determine whether to grant joinder on a case-by-case basis, taking into account
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`the particular facts of each case, substantive and procedural issues, and other
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`considerations.” Dell, IPR2013-00385, Paper 17, at 3; see Samsung, IPR2014-
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`00557, Paper 10, at 16. The Board’s trial rules, including the rules for joinder,
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`must be “construed to secure the just, speedy, and inexpensive resolution of every
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`proceeding.” 37 C.F.R. § 42.1(b).
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`As the moving party, Zimmer has the burden of proof in establishing
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`entitlement to the requested relief. 37 C.F.R. §§ 42.20(c), 42.122(b).
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`A motion for joinder should: (1) set forth the reasons why joinder is
`appropriate; (2) identify any new grounds of unpatentability asserted
`in the petition; (3) explain what impact (if any) joinder would have on
`the trial schedule for the existing review; and (4) address specifically
`how briefing and discovery may be simplified.
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`Dell, IPR2013-00385, Paper 17, at 4. In the case of joinder, the Board may adjust
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`the one-year time period for a final determination in an IPR. Id. at 3; 35 U.S.C. §
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`316(a)(11); 37 C.F.R. § 42.100(c); Dell, IPR2013-00385, Paper 17, at 3; Microsoft,
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`IPR2013-00109, Paper 15, at 4. Moreover, pursuant to 35 U.S.C. § 315(d) and 37
`
`C.F.R. § 42.122(a), the Board has discretion to concurrently join and consolidate a
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`matter involving a to-be-joined petition with the pending proceeding to which
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`joinder is sought. See Samsung, IPR2014-00557, Paper 10, at 16-17.
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`IV. ARGUMENT
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`A. Multiple Reasons Show that Joinder Is Appropriate
`
`Joinder is appropriate here for reasons including efficiency, lack of undue
`
`prejudice to Patent Owner, and public policy considerations.
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`1. Considerations of Efficiency Support Joinder
`Several factors support that joinder will allow for efficiencies in these
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`proceedings and, therefore, is appropriate here:
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`•
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`Both petitions in question involve the same two parties, Zimmer and
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`Bonutti, and the same patent, the ’736 Patent.
`
`•
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`The New Petition addresses the two reasons the Board cited for
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`declining to institute trial on claims 23-25 in IPR2014-00191. (See Ex. 1011,
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`IPR2014-00191, Paper 12, at 12-13.) Specifically, the New Petition explicitly
`
`identifies the “dovetail joint” element of claims 23 and 24 in the prior art and
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`construes claim 25’s means-plus-function limitation in accordance with 37 C.F.R.
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`§ 42.104(b)(3).
`
`•
`
`The New Petition challenges only three dependent claims of the ’736
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`Patent, claims 23-25. Zimmer challenges claim 25 on two grounds based on
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`Walker—one ground on the basis of anticipation by Walker, and the other ground
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`on the basis of obviousness over Walker in view of Buechel; Zimmer also uses the
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`latter ground to challenge claims 23 and 24. All three claims ultimately depend
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`from claim 15, and the Board instituted trial for claim 15 on the basis of
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`anticipation by Walker. (See Ex. 1011, IPR2014-00191, Paper 12, at 10-12.)
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`Thus, neither the Board nor Bonutti will need to perform additional analysis for
`
`claim 15 in the course of addressing claims 23-25 in the New Petition. Moreover,
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`both the Board and Bonutti are already familiar with Walker. See Ariosa
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`Diagnostics v. Isis Innovation Ltd., IPR2013-00250, Paper 25, at 2, 5 (P.T.A.B.
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`Sept. 3, 2013) (granting joinder where the to-be-joined “proceeding challenges
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`claims that are dependent on claims challenged in [the instituted proceeding]” and
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`“[t]here is an overlap in the cited prior art”); Sony Corp. v. Yissum Res. & Dev. Co.
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`of the Hebrew Univ. of Jerusalem, IPR2013-00327, Paper 15, at 5 (P.T.A.B. Sept.
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`24, 2013) (granting joinder in part because “[t]here is substantial overlap in the
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`asserted references . . . and the declaration evidence to be considered . . . in the
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`joined proceedings”). And only a limited amount of additional effort will be
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`required for Bonutti to address claims 23-25. See Samsung, IPR2014-00557, Paper
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`10, at 18 (noting that “public interest” considerations “strongly outweighed” “the
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`minimal additional amount of work required on the part of Patent Owner to
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`address” claims in a to-be-joined petition).
`
`•
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`Zimmer’s expert, Dr. Erdman, provided testimony in IPR2014-00191,
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`and his additional testimony supporting the New Petition addresses only the
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`invalidity grounds asserted for claims 23-25. See Ariosa Diagnostics, IPR2013-
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`00250, Paper 25, at 3 (granting joinder in part because “the Declarations relied
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`upon by [the petitioner] in the instant proceedings were made by Declarants . . .
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`who also submitted Declarations that were relied upon by [the petitioner] in [the
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`instituted proceeding]”); Sony, IPR2013-00327, Paper 15, at 5.
`
`•
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`Granting this motion will simplify the Concurrent Litigation to the
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`extent Bonutti asserts claims 23-25 against Zimmer in the Concurrent Litigation.
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`Finally, because Zimmer’s one-year deadline to file an IPR petition on
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`the ’736 Patent without seeking joinder has passed (January 15, 2014), Zimmer
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`would be prejudiced absent joinder, because its New Petition would be barred
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`under 35 U.S.C. § 315(b) and 37 C.F.R. § 42.101(b). As noted in prior orders in
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`which the Board has granted joinder, “[t]his is an important consideration.” Sony,
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`IPR2013-00326, Paper 15, at 4; Microsoft, IPR2013-00109, Paper 15, at 4.
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`The Board has granted joinder in similar circumstances. In Arisoa, the
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`Board granted joinder of a second petition that challenged claims that depend from
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`claims challenged in a previously instituted trial. IPR2013-00250, Paper 24, at 2.
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`The Board found joinder was appropriate because the second proceeding involved
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`the same patents and parties and “much of the same prior art that was relied upon”
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`in the first trial, where the only additional prior art cited in the second petition was
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`added to address the limitations of the dependent claims. Id. at 2, 5. Also
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`persuasive was that the declarations in the second proceeding were from the same
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`declarants as in the first proceeding. Id. at 3.
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`Here, as in Ariosa, the same patent, parties, and declarant are involved in the
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`New Petition and the instituted trial in IPR2014-00191, and the only additional
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`prior art—Buechel—is added to address limitations of dependent claims 23-25 in
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`the event the Board does not find all of those limitations present in Walker. Also
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`like Ariosa, Petitioner has been diligent and timely in filing its motion. See id. at
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`5. Accordingly, for at least these reasons, joinder is appropriate.
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`2. Lack of Undue Prejudice to Patent Owner Supports Joinder
`Any prejudice to Bonutti will be minimal—and certainly not undue—for the
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`reasons discussed above and because Zimmer has filed this Motion, and its New
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`Petition, over five weeks before Bonutti’s response to IPR2014-00191 is due. (See
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`IPR2014-00191, Paper 13, at 6.) Moreover, Bonutti did not file a preliminary
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`response in IPR2014-00191, see 37 C.F.R. § 42.107, and, as such, has not yet
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`expended significant resources addressing before the Board Zimmer’s arguments
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`with respect to claims 23-25.
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`3. Public Policy Considerations Support Joinder
`Joinder is further supported by public policy considerations and the public
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`interest in seeing invalid patents formally invalidated. The Board is charged with
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`considering the “effect . . . on the economy” and “the integrity of the patent
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`system,” among other considerations, when implementing and applying its rules,
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`including those relating to joinder. See 35 U.S.C. § 316(b); see also Changes to
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`Implement Inter Partes Review Proceedings, Post-Grant Review Proceedings, and
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`Transitional Program for Covered Business Method Patents, 77 Fed. Reg. 48679,
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`48680 (Aug. 14, 2012) (stating that “[t]he purpose of the AIA and [37 C.F.R. Part
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`42] is,” in part, “to establish a more efficient and streamlined patent system that
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`will improve patent quality”).
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`In addition to the polices that explicitly guide the Board, the Supreme Court
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`has made clear that there is an “important public interest in permitting full and free
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`competition in the use of ideas which are in reality a part of the public domain”
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`and a corresponding “strong federal policy favoring free competition in ideas
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`which do not merit patent protection.” Lear, Inc. v. Adkins, 395 U.S. 653, 656, 670
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`(1969). The Supreme Court recently confirmed these policies, stating that
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`although the “public interest . . . favors the maintenance of a well-functioning
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`patent system,” “the public also has a paramount interest in seeing that patent
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`monopolies . . . are kept within their legitimate scope.” Medtronic, Inc. v.
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`Mirowski Family Ventures, LLC, 134 S. Ct. 843, 851-52 (2014) (quotations
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`omitted).
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`All of these important public policy considerations further support joinder,
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`because, as shown in the New Petition, claim 25 reads on Walker and is anticipated
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`or, at the very least, like claims 23 and 24, reads on the combination of Walker and
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`Buechel and is obvious.
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`B.
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`The New Grounds of Unpatentability in Zimmer’s New Petition
`Attack Only Dependent Claims
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`As discussed above, the New Petition challenges only three dependent
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`claims of the ’736 Patent—all of which were challenged in IPR2014-00191—on
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`two invalidity grounds based on two prior art references, Walker and Buechel. The
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`first ground, anticipation of claim 25 by Walker, was presented in IPR2014-00191.
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`(See IPR2014-00191, Paper 1, at 3-4.) The second ground, obviousness of each
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`claim over Walker in view of Buechel, was not presented in IPR2014-00191.
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`Further, because the Board identified the lack of a construction of the means-plus-
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`function limitation in claim 25 as the sole reason for which it declined to institute
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`trial on claim 25 in IPR2014-00191, (see Ex. 1011, IPR2014-00191, Paper 12, at
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`12-13), the New Petition includes a construction for that limitation in accordance
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`with 37 C.F.R. § 42.104(b)(3). Nonetheless, the inclusion of Buechel in an
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`obviousness combination with Walker and the claim construction in question add
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`only deminimus substantive issues in the New Petition.
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`C.
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`Joinder Would Not Unduly Delay the Resolution of Either
`Proceeding and Any Delay Could Be Ameliorated Through
`Consolidation of Due Dates, Briefing, and Discovery
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`To the extent the Board decides to institute trial on the New Petition,
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`Zimmer will agree to place both cases involving the ’736 Patent on the same post-
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`institution schedule. Indeed, Zimmer is willing to forfeit a reasonable portion of its
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`reply period to provide Bonutti sufficient time to address the New Petition and this
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`Motion. In particular, the schedule for Due Dates 1-3 in IPR2014-00191, (see
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`paper 13, at 6), could be adjusted as follows to accommodate joinder:
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`Trial Deadline
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`Current Date
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`Proposed Adjusted Date
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`Due Date 1
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`Due Date 2
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`Due Date 3
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`August 6, 2014
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`September 5, 2014
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`October 10, 2014
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`October 24, 2014
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`November 10, 2014
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`November 17, 2014
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`The proposed adjustment to Due Date 1 would give Bonutti an additional month to
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`file its response in IPR2014-00191 and provide it with sufficient time to file any
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`preliminary response to the New Petition and any response to this Motion.
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`Zimmer also does not oppose consolidation of both proceedings, in full or in
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`part, to accomplish consolidated briefing and discovery, including depositions, in
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`both proceedings. See 35 U.S.C. § 315(d); 37 C.F.R. § 42.122(a). Further,
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`Zimmer will accommodate any reasonable logistical or scheduling request of
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`Bonutti in order to accommodate joinder of the proceedings. Thus, joining the
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`New Petition with IPR2014-00191 will not unduly delay resolution of those
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`proceedings and will help “secure the just, speedy, and inexpensive resolution” of
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`the proceedings. See 37 C.F.R. § 42.1(b); see also 35 U.S.C. § 316(b).
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`Finally, Zimmer submits that although the Board could, if necessary,
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`exercise its discretion to adjust the one-year time period for a final determination in
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`the joined proceedings, 35 U.S.C. § 316(a)(11); 37 C.F.R. § 42.100(c); Dell,
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`IPR2013-00385, Paper 17, at 3; Microsoft, IPR2013-00109, Paper 15, at 4, such an
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`adjustment should not be necessary here to accommodate joinder given that the
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`New Petition challenges only a single dependent claim based on two previously
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`presented grounds and prior art references.
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`V. CONCLUSION
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`For all of the foregoing reasons, Zimmer respectfully requests that the Board
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`(1) grant the present Motion and join Zimmer’s New Petition with IPR2014-00191
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`pursuant to Rule 42.122(b), and (2) if the Board deems it necessary to effect
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`joinder, concurrently consolidate the matter involving the New Petition with
`
`IPR2014-00191 pursuant to Rule 42.122(a).
`
`Dated: June 30, 2014
`
`By:
`
`
`
`/s/ Walter C. Linder
`Walter C. Linder
`Reg. No. 31,707
`Customer No. 25764
`FAEGRE BAKER DANIELS LLP
`2200 Wells Fargo Center
`90 South Seventh Street
`Minneapolis, MN 55402-3901
`Telephone: (612) 766-8801
`Facsimile:
`(612) 766-1600
`Walter.Linder@FaegreBD.com
`
`US.54396333.05
`
`-15-
`
`

`

`
`
`CERTIFICATE OF SERVICE
`
`Pursuant to 37 C.F.R. § 42.6(e), I hereby certify that I caused a true and
`correct copy of the foregoing Motion for Joinder to Related Instituted Inter Partes
`Review to be served on June 30, 2014, via Federal Express Priority Overnight
`service and via e-mail, as a PDF file attachment, on the following:
`
`
`
`Cary Kappel
`William Gehris
`DAVIDSON, DAVIDSON & KAPPEL, LLC
`485 Seventh Avenue
`New York, NY 10018
`ckappel@ddkpatent.com
`wgehris@ddkpatent.com
`
`
`
`Dated: June 30, 2014
`
`
`
`/s/ Walter C. Linder
`Walter C. Linder
`Reg. No. 31,707
`Customer No. 25764
`FAEGRE BAKER DANIELS LLP
`2200 Wells Fargo Center
`90 South Seventh Street
`Minneapolis, MN 55402-3901
`Telephone: (612) 766-8801
`Facsimile:
`(612) 766-1600
`Walter.Linder@FaegreBD.com
`
`By:
`
`
`
`

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