throbber
Trials@uspto.gov
`571-272-7822
`
`Paper No. 35
`Entered: October 1, 2015
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`UNIVERSAL REMOTE CONTROL, INC.,
`Petitioner,
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`v.
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`UNIVERSAL ELECTRONICS, INC.,
`Patent Owner.
`____________
`
`Case IPR2014-01146
`Patent 8,243,207 B2
`____________
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`Held: September 2, 2015
`____________
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`
`
`
`
`BEFORE: HOWARD B. BLANKENSHIP, SALLY C.
`MEDLEY, and WILLIAM A. CAPP, Administrative Patent
`Judges.
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`The above-entitled matter came on for hearing on Wednesday,
`September 2, 2015, commencing at 2:09 p.m., at the U.S. Patent
`and Trademark Office, 600 Dulany Street, Alexandria, Virginia.
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`

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`Case IPR2014-01146
`Patent 8,243,207 B2
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`APPEARANCES:
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`ON BEHALF OF THE PETITIONER:
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`ON BEHALF OF PATENT OWNER:
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`PETER H. KANG, ESQ.
`FERENC PAZMANDI, ESQ.
`Sidley Austin LLP
`1001 Page Mill Road, Building 1
`Palo Alto, California 94304
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`KEITH J. BARKAUS, ESQ.
`Ostrolenk Faber LLP
`1180 Avenue of the Americas
`New York, New York 10036
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`JAMES J. LUKAS, JR., ESQ.
`ERIC J. MAIERS, ESQ.
`MATTHEW J. LEVINSTEIN, ESQ.
`Greenberg Traurig LLP
`77 West Wacker Drive, Suite 3100
`Chicago, Illinois 60601
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`Case IPR2014-01146
`Patent 8,243,207 B2
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`P R O C E E D I N G S
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`JUDGE MEDLEY: So, this is the final hearing and the
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`hearing for IPR2014-01146, between Petitioner, Universal
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`Remote Control, and Patent Owner, Universal Electronics. Per
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`our August 4th order, each party will have 30 minutes, and you
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`know the drill, so we'll go ahead and get started.
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`Mr. Kang?
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`MR. KANG: Your Honor, do you want appearances for
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`the record or --
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`JUDGE MEDLEY: I'm sorry?
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`MR. KANG: Do you want appearances for the record?
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`JUDGE MEDLEY: No, that's okay.
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`MR. KANG: Thank you.
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`If we can go to slide 2 of Exhibit 1057, please. So,
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`Your Honors, in this IPR, the fundamental issue here is whether
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`the claim should be construed properly, as we believe, or so
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`narrowly by -- as the Patent Owner suggests, which is even more
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`narrow than the Board's recognition of a possibly narrow
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`construction such that the claim deviates, again, from the intrinsic
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`record.
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`The term -- central term at issue is "configuration of the
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`entertainment device," and we believe that regardless of the claim
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`construction, the prior art reference Dubil does disclose the
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`claimed invention by allowing a user to invoke an activity set
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`which then configures both a selected input and a selected output.
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`So, generally speaking, on slide 2, the '207 patent is
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`directed to configuring activities for home entertainment systems,
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`and so you have got a remote control that interacts with different
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`elements of a system, and as the patent discloses at column 1, the
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`user can configure a system that has multi-inputs and/or multi-
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`outputs, and, again, so the system is very flexible in that sense
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`and covers either multi-inputs or multi-outputs.
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`So, if we look at the claim on Slide 3 of Exhibit 1057,
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`the phrase "configuration of the entertainment device" on the face
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`of the claim is, we believe, defined in the succeeding terms to
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`require, one, comprising one -- at least one of the plurality of the
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`devices being used as an audiovisual input source and at least one
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`of the plurality of devices being used as an audiovisual output
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`destination.
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`And so we believe on the plain meaning of the phrase
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`"configuration of the entertainment device," a configuration
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`comprises selecting one input -- at least one input and at least one
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`output.
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`If we look at page 4, Exhibit 1057, the Patent Owner's
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`construction is even narrower than the Board's alternative narrow
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`construction that was in the institution decision. The Patent
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`Owner has argued, although the phrase in their proposed
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`construction is "affirmatively performing switching," we now
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`know from the briefing that Patent Owner takes the position that
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`that construction of their construction requires affirmatively or
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`actively switching inputs and affirmatively or actively switching
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`outputs, and we believe that that's even narrower than the Board's
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`proposed narrow construction.
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`The Board's actual construction adopted at the decision
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`to institute is on the slide and does not necessarily require
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`engaging in any switching activity. As Petitioner, we have
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`adopted that position. We believe that's correct.
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`JUDGE CAPP: You understand that's not a final
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`construction for this case.
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`MR. KANG: Of course, I understand.
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`JUDGE CAPP: That's what we came up with in the
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`absence of either one of you briefing it at the time of the decision
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`to institute.
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`MR. KANG: I understand.
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`JUDGE CAPP: So, why were we right to come up with
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`that construction at the decision to institute stage?
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`MR. KANG: If we turn to slide 5, I will show you.
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`So, the specification itself disclosed as separately
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`powering on source devices and destination devices, and there's
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`nothing -- for example, as we show here on page 5, Figure 6 is
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`the flow chart showing the process for this setup, and there's no
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`required switching or selecting both the input and the output in
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`the claim or in the disclosed embodiment.
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`So, for example, when a desired input is required,
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`there's a determination made whether it's on or not, and if it's not,
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`then a request is sent to turn it on. Similarly, on the output, if the
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`destination is determined to be powered off, then a request is
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`made to turn it on. The specification does not disclose or require
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`actively switching between multiple outputs and multiple inputs.
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`The flow chart definitely shows, through the alternative
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`paths where it determines whether there are multiple inputs and
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`outputs, and one of the options is no. And so unlike Patent
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`Owner's construction that requires active switching both at the
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`input side and the output side, we believe the specification
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`teaches alternative embodiments. It can cover multiple inputs
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`and outputs, but doesn't require it, because it specifically
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`discloses embodiments where there could be a single source or a
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`single destination.
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`JUDGE CAPP: Do you have a copy of the patent
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`handy?
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`MR. KANG: Yes, sir.
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`JUDGE CAPP: And I'm referring to Exhibit 1001,
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`column 9. There's a paragraph that begins at line 13 -- and it's a
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`fairly long paragraph, I don't care to read the entirety of it into the
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`record -- but let me, just for purposes of this question, read the
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`following portion, from about lines 23 down to line 29, and I
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`quote:
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`"Further, while the preferred embodiment described
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`above comprises a controlling device capable of bidirectional
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`communication with an AV receiver or other central switching
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`device, it will be appreciated that many of the steps of the
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`inventive methods may also be practiced in a system comprising
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`a controlling device which is in unidirectional (inward)
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`communication with the central switching device."
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`I want to hear your take on why we shouldn't take that
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`language as context for the configuration language in Claim 1,
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`such that the specification indicates that a configuration requires
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`the capability of the AV receiver having a capability to function
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`as a central switching device.
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`MR. KANG: The specification at -- at the bottom of
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`column 4, to the top of column 5, which is a section that also
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`refers to switching, explains what it -- what kind of switching and
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`routing the specification is talking about. This system, of course,
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`is not a telecommunications router. There is not active switching
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`of signals on the fly. What we're talking about is switching to get
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`to the right input, to the right output, when you're watching a
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`movie, for example.
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`And so the specification teaches that -- at the bottom of
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`column 4 that there will be -- the inputs and outputs can be analog
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`or digital and there have to be A to B, A to C converters, the
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`proper HDMI converter, all sorts of codecs, that allow, as it says
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`at the top of column 5, what it calls the proper input/output
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`switching and routing functionality, and that's to ensure the
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`proper coded input is decoded the right way at the proper output.
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`And so the section that Your Honor read from column
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`9, where it's talking about switching, in more detail at columns 4
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`and 5 explains the kinds of switching that they're talking about.
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`Again, it's not active signal switching, as we would see, like, in a
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`router or telecommunications equipment. Here we're talking
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`about the kinds of switching and routing required to make sure
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`that the signals are correctly encoding or decoding for the proper
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`input and output.
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`So, the -- if we look at our Exhibit 1057, slide 6, Patent
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`Owner's expert conceded that nothing in the patent contradicts
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`what we believe is the proper construction, and so, for example,
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`he was asked:
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`"QUESTION: Is it fair to say that you did not identify
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`any portion of the patent that expressly excludes that the
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`configuration of the entertainment device may be accomplished
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`solely by passively powering on and off the desired and undesired
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`devices?"
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`He says:
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`"ANSWER: I agree, and I didn't find anything that
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`expressly excludes that."
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`So, we believe that the Patent Owner's own expert
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`conceded the proper construction, and in the briefing, Patent
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`Owner did not identify portions of the patent that would
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`contradict either the Board's decision at institution as to
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`construction or Petitioner's.
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`There is a typo, and I apologize for this, on page 6 of
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`Exhibit 1057, the last bullet point. It should properly say that
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`"Mr. Cook admits that none of the terms active, affirmative or
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`switching appear anywhere in the claims, the disputed claims in
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`the '207 patent." It is not intended to cover the entirety of the
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`patent.
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`JUDGE CAPP: Is Mr. Cook is 30(b) -- what we would
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`call a Federal Rules of Civil Procedure 30(b)(6) representative of
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`the of the Patent Owner or is he just a hired gun expert witness?
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`MR. KANG: He is a retained expert by the Patent
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`Owner.
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`JUDGE CAPP: Is it your position that Mr. Cook's
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`testimony is binding on the Patent Owner?
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`MR. KANG: He is an agent of the Patent Owner in this
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`sense, and so it is binding as a party admission. I believe that
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`would be the rule under the Federal Rules of Evidence. An
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`expert's admission will be binding on the party as an agent
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`representing them for this purpose. Certainly they rely on
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`Mr. Cook's testimony to rebut our position, and to the extent he's
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`made this admission, that certainly undercuts his testimony in
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`other parts.
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`So, under the proper claim construction, we believe the
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`reference discloses the configuration of the entertainment device,
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`but if we look at slide 7, we believe even under the Patent
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`Owner's claim construction, Dubil does disclose configuration of
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`the entertainment device.
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`As we see here in Figure 4 from Dubil, the activity sets
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`are on the left-hand side of the column, and a user configures, in
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`Dubil, a -- invokes a particular activity, which, for example,
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`defines a particular source, cable, and a particular audio output,
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`TV, and the user can alternatively invoke a different activity set
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`to watch TV movies, and that invokes a different input. It
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`switches to satellite as the input, and it switches to a different
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`output -- audio output, surround sound.
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`And we see from Figure 1 of Dubil that the VCR is --
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`sits at the center of the system, and it has the inputs from the
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`cable and satellite, as shown in Figure 4, available to it, and it has
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`outputs available to it to the audio system or the television. And
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`so the VCR is the linking element between these that would do,
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`as the Patent Owner requires, active switching both at the input
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`and at the output side.
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`So, if we look at the next slide, 8, of Exhibit 1057,
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`Mr. Cook did concede in deposition that the VCR in Dubil can be
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`used to select an input device. That's well known.
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`JUDGE CAPP: I want to go back and look at Slide 7
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`for a minute. That went a little quick for me.
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`Is the switching -- I'm watching TV and I want to
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`choose between watching cable or watching satellite.
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`MR. KANG: Yes.
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`JUDGE CAPP: Why can't I send a signal to the
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`television to switch from a cable input to a satellite input? Why,
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`necessarily, do I have to go to the VCR to select an input from
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`cable or satellite?
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`MR. KANG: Dubil discloses that as an alternative,
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`certainly, direct access to the television, and do you see in Figure
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`1, there are direct connections between satellite and cable?
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`JUDGE CAPP: Well, I get that, but the point is that
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`you have made an affirmative case in front of us that identifies
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`the VCR as the entertainment device, not the television.
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`MR. KANG: Yes.
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`JUDGE CAPP: So, where is it conclusively shown in
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`Dubil that the VCR has the ability to switch between a cable
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`input and a satellite input to then route that signal to the
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`television?
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`MR. KANG: Well, the VCR -- well, Figure 1 does
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`show directly that the VCR takes alternate inputs from cable or
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`satellite and has an output directly to the television. As people
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`I'm sure have known in the art, you couldn't use your VCR as an
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`antenna to watch TV; you could use it to watch a video in the
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`VCR. So, switching inputs from the VCR -- on the input side of
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`the VCR is known, and, in fact, Mr. Cook did admit that Dubil
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`discloses a VCR that allows active switching at the inputs. So,
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`that's one element that's shown where the VCR is the
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`entertainment device.
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`The other --
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`JUDGE CAPP: Well, you know, take a look at the
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`upper right-hand corner graphic you've got there, you've got
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`highlighted as "Watch TV."
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`MR. KANG: Yes.
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`JUDGE CAPP: Why should I read across those
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`columns and come to the conclusion that the VCR is in the loop
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`in any sort of active way to direct the signal? Why can't I
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`interpret that as I'm hitting the remote and I'm either selecting
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`cable or satellite input for the TV, where the switching is taking
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`place at the TV, and then the switching for the TV to go to
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`surround sound just sends a passive signal through the VCR to
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`the audio system?
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`MR. KANG: The Dubil disclosure -- can we go to slide
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`12 of our slides, please?
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`The Dubil disclosure talks about the activity manager as
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`the portion of the system that is -- the part of the entertainment
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`device that is doing the kind of switching that's required here.
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`The specification teaches us that the activity manager is stored in
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`any storage device, and the patent specification tells us that a
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`set-top box could be a storage device, a TiVo device could be a
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`storage device, or a VCR could be a storage device.
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`So, the activity sets in Dubil are a way to quickly get to
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`a particular desired format or configuration of the system. So,
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`again, if we go up to -- back to slide 7, as you see, the presets in
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`Dubil allow the user to set up -- this is a preconfigured
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`arrangement, and so while Dubil is flexible enough to allow
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`direct access to the television and whatnot, one of -- the invention
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`disclosed in Dubil is to create these activity sets so that a user
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`need not do it manually. They can -- when they have preset the
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`configurations, they can then hit the desired configuration for
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`watch TV news, and it will automatically do the -- the input and
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`output switching that's desired, right?
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`And the -- Dubil also discloses that the VCR can be
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`placed in the system loop any time for recording. So, in other
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`words, in Dubil, one of the express purposes of having the VCR
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`in the center there is so that the user can record programs that are
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`being watched. And so in that system, you would not want to
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`bypass the VCR if you want to have the capability of recording
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`what you're watching.
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`JUDGE CAPP: Well, I could output the audiovisual
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`signal from the television to the VCR, and then I could use the
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`TV to select the input for the TV, right?
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`MR. KANG: You could -- I'm not sure Dubil discloses
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`routing the satellite signal back through the TV out to the VCR. I
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`suppose -- I suppose it could, but it doesn't preclude the point of
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`JUDGE CAPP: But the Patent Owner introduces some
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`testimony that there's never been a VCR in the history of mankind
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`that had this sort of switching capability. I'm not going to
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`comment on whether that's true or not, but what's your response
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`to that in view of the teaching of Dubil? Is Dubil limited to
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`known, off-the-shelf VCRs, or is there a new teaching in there
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`about how you can modify a VCR?
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`MR. KANG: Well, one of the features in Dubil is that
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`if you see one of the activity sets, watch TV movies, it allows
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`switching the audio from TV to audio for surround, and that is an
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`express teaching of an audio output switching in a VCR that, you
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`know, is in Dubil.
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`I have not done a full survey of whether other prior art
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`VCRs have that feature, but it is correct that -- it is incorrect for
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`Patent Owner to assert that there are no VCRs in the prior art that
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`have alternate, switchable outputs, because Dubil itself discloses
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`a switchable output. And, indeed, the Patent Owner's narrow
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`construction that requires affirmatively switching never says -- at
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`least in the words of it never says that the switching must be both
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`at the input and at the output, all right? It just says affirmatively
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`switching.
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`Your Honors' tentative decision in the decision to
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`institute also does not specifically require active switching at the
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`input and active switching at the output. It just says some
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`affirmative switching, and our position is Dubil does disclose and
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`Case IPR2014-01146
`Patent 8,243,207 B2
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`has conceded disclosing switching of the inputs, and that should
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`alone meet the Patent Owner's construction as proposed,
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`assuming additional arguments are not read into the claim.
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`The -- and, again, Dubil does disclose actively
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`switching the audio outputs, and so, again, we believe both on the
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`input side, because of the admission, and the output side from the
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`disclosure, that Dubil satisfies even the claim as construed by
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`Patent Owner.
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`JUDGE CAPP: Before the hearing's over -- and this
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`can be at the end of your rebuttal time -- I would like to have
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`page and line number in Dubil for where you say there's active
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`switching of inputs and active switching of outputs in terms of an
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`express disclosure.
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`MR. KANG: Yes, Your Honor.
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`If we look at the related argument that Patent Owner has
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`raised as to the "command value" phrase -- if you would, page 9
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`of our slides, please -- Patent Owner's argument is that there is no
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`command value that corresponds to an activity key that is
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`associated with configuration. This is a bootstrapped argument.
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`Because under Patent Owner's view, there is no configuration,
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`there can be no command value associated with that, and,
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`therefore, we believe these fail. Of course, Dubil does disclose,
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`as we showed in Figure -- in paragraph 28, the sequence of
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`commands are, in fact, communicated.
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`Case IPR2014-01146
`Patent 8,243,207 B2
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`JUDGE CAPP: Well, do the Patent Owner and the
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`Petitioner agree on what it means for a command value, what the
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`definition of a command value is?
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`MR. KANG: No. So, it appears that the Patent Owner
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`takes the position that the command value has to be a single bit or
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`a single -- some single bit of data --
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`JUDGE CAPP: And you disagree with that?
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`MR. KANG: The phrase "command value" is not --
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`doesn't say -- there is nothing inherent in the phrase or in the
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`specification that limits it to a specific binary term.
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`JUDGE CAPP: If the two of you disagree on the
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`meaning of a key term in the claim, why isn't that briefed in a
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`Markman sort of way?
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`MR. KANG: It was raised by the Patent Owner late in
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`the process, and I believe we did address the command value -- I
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`mean, we made sure these are not new arguments, but we did
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`address the command value issue in -- in response. I believe the
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`Patent Owner addressed this issue from the viewpoint of does
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`Dubil disclose it, not what does it mean, and so we addressed
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`their point there, that it does disclose it.
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`JUDGE CAPP: Well, the point is, the -- the argument
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`that it does disclose or it doesn't disclose may turn on what the
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`word means in the first place, and neither of you have briefed or
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`argued to us what the term means. So, what are we supposed to
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`do in our final written decision if the case is going to turn on the
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`Case IPR2014-01146
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`meaning of "command value" and neither of you have argued or
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`briefed, in a Markman sense, how that term should be construed?
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`MR. KANG: Well, certainly we have taken the position
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`that the commands in Dubil that are -- the commands
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`communicated qualify as command value, so to the extent that
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`that argument was made, there is a claim construction inherent in
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`that.
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`If Patent Owner is asserting that the reference is
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`distinguishable because of a specific definition of "command
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`value" that Patent Owner has not proposed, we had nothing to
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`respond to on that point, and, therefore, we would -- I would take
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`the position that Patent Owner has failed on its argument, because
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`they have not correctly set it up.
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`JUDGE CAPP: Let me ask you this question. I've got a
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`remote control in my hand, I hit a button, and it sends a signal,
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`and it turns one or more of the components to turn on or off. Has
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`that communicated a command value?
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`MR. KANG: The command value has to correspond to
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`an activity key. So, there has to be an activity key set up. But,
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`yeah, assuming that --
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`JUDGE CAPP: Well, if the activity key includes
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`turning units on and off, then would that -- you know, yes or no --
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`be a command value?
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`Case IPR2014-01146
`Patent 8,243,207 B2
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`MR. KANG: Yes. And, again, a fair reading of the
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`specification doesn't put any limits on "command value." We
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`believe it has its ordinary meaning.
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`The -- if we look at slide 10, one of the reasons we don't
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`believe this is a significant issue is because, again, Patent Owner's
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`expert admitted that acknowledging -- acknowledged pressing a
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`key on the remote does invoke an activity set, and that sends, as
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`the testimony shows, a set of commands to various home
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`entertainment system components, and so the -- we believe that
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`mostly this argument relies on the lack of a configuration
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`underlying the command value.
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`Similarly, if you go to the next slide, Patent Owner
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`makes a similar argument that there's no configuration associated
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`with command value, which is used after receiving a signal which
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`includes the command value, and, again, that's a bootstrapping
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`argument which we would believe fails, Your Honors, because of
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`the configuration definition.
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`And if we look at the next slide, Dubil does disclose, in
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`fact, the receipt of a signal. The remote control in Figure 5, page
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`12 of Exhibit 1057, is sending a signal to the user interface which
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`then activates the activity manager to go get the activity set data
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`from storage, and that includes a command value that's associated
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`with the activity set; otherwise, the activity manager wouldn't
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`know what to go and retrieve. And so on the -- the disclosure of
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`Case IPR2014-01146
`Patent 8,243,207 B2
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`Dubil, we disagree. We believe it does disclose the signal portion
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`of the command value limitation.
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`Finally, on -- on the -- the claim 13, if we turn to the
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`next slide, again, the downloading limitation is a limitation Patent
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`Owner disputed. Again, the Dubil reference discloses storing and
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`downloading the configuration information into the entertainment
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`device from a computer. It discloses using a PC. It discloses that
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`you have the application, using that is then downloading
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`information to the storage device, and as I mentioned before, this
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`specification, for example, at paragraph 19 says that you could
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`have a TIVO or VCR, other things could be storage devices, and
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`so we think the downloading limitation is clearly shown by Dubil.
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`On the next slide, with respect to dependent Claim 15,
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`which requires the display associated with the entertainment
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`device, again, there is a display shown -- we saw it in Figure 1,
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`the television -- and, again, Patent Owner's expert conceded that
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`there are at least two display devices that illustrate activity sets
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`disclosed in Dubil, and so we believe that one of ordinary skill --
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`let's go to the next slide -- as conceded by Mr. Cook, one of
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`ordinary skill would understand that you would be selecting
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`components for display by manipulating graphical user interfaces,
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`and the Dubil reference does disclose using menus or graphical
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`components to do this setup.
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`And so in conclusion, configuration of the
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`entertainment device we believe to be properly construed,
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`Case IPR2014-01146
`Patent 8,243,207 B2
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`consistent with the BRI standard, and we believe Dubil does
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`disclose all the elements in the claim at issue.
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`I will reserve the remainder of my time, if I have any,
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`for rebuttal.
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`JUDGE MEDLEY: Thank you. You have five minutes
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`left.
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`MR. MAIERS: So, Your Honors, what I'm going to
`
`talk about, I'm going to touch on three main issues. First, I'm
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`going to provide a brief introduction to the '207 patent. Next I
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`will discuss the claim construction of the configuration
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`entertainment device that Judge Capp and Mr. Kang were
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`discussing quite a bit in the opening. And then I'll explain why
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`Dubil does not anticipate the challenged Claims 13 through 15.
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`First, with reference to the '207 patent, what the '207
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`patent is an activity-based configuration of an entertainment
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`system, and what that means is you have got different activities
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`that you may have in your home entertainment system that
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`involve different sources and different destinations. For example,
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`you may have a "watch a movie" activity that will involve a DVD
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`player as an input source and your big home theater projector as
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`your output destination, whereas your "watch TV" activity may
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`just use your cable box as the input source and your television as
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`the -- as the output destination.
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`Now, the background talks about remote centric
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`methods for automatically config -- for automating configuration
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`Case IPR2014-01146
`Patent 8,243,207 B2
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`operations such as this. For example, using macros, and what a
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`macro is, again, is a series of commands that are executed in
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`sequence in response to the pressing of a single button. The
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`problem with those macro commands -- and for Judge Medley
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`and Judge Blankenship, we discussed this this morning -- is that
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`oftentimes you can have a situation where your device gets out of
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`sync.
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`For example, the macro command is intended to turn
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`the television on, but if the television is already on and that
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`command is issued, then you're turning the television off, and
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`everything becomes out of sync, and now you've got to go grab
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`all your other other remotes and figure out what buttons need to
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`be pressed to straighten everything out. So, in other words, those
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`methods can be subject to error.
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`Now, the '207 patent also talks about -- I'm sorry. The
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`'207 patent overcomes this problem by proposing an
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`entertainment device centric method, an entertainment device
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`centric paradigm. Because one central device is serving as the
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`central -- the central routing terminal for all of your home
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`entertainment devices, you don't have this problem of devices
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`getting out of sync because it is controlling what is connected to
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`what. So, getting out of sync is no longer a concern under the
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`Real briefly, the challenged claims in this case are
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`Case IPR2014-01146
`Patent 8,243,207 B2
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`claims, but it is important to note that there is some
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`differentiations between some of the claims, and the Board
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`highlighted one of them in the institution decision, and that is that
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`independent 14 is similar in scope to Claim 13; however, Claim
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`13 adds the limitation of downloading that Mr. Kang talked about
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`earlier and we'll discuss later on.
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`And Claim 15 involves a claim that requires displaying
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`in a display, in a graphical user interface, the ability for a user to
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`select an input device and an output device. There is more to it
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`than that. We will unpack that limitation a little bit later.
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`Now, going to the issue of claim construction,
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`obviously the key term here is "configuration of the electronic
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`device," and that term appears in all of the challenged claims.
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`The Board noted in its institution decision that it proposed two
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`potential competing constructions, and we'll call them the active
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`construction and the passive construction. In the active
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`construction, the situation is that you are affirmatively selecting
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`the inputs and outputs of the -- you have a central entertainment
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`device that is affirmatively selecting inputs and

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