throbber
UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`Tempur Sealy International, Inc.
`Petitioners,
`
`V.
`
`Select Comfort Corporation
`
`Patent Owner
`
`Patent No. 5,904,172
`Issued: May 18, 1999
`Filed: July 28, 1997
`Inventors: James Edwin Giffi and Paul James Mahoney
`
`Title: VALVE ENCLOSURE ASSElVIBLY
`
`Inter Partes Review No. 2014—01419
`
`REQUEST FOR RECONSIDERATION
`
`BOS 47621793v1
`
`

`

`Pursuant to 37 C.F.R. § 42.71(d), Petitioner hereby requests the Patent Trial
`
`and Appeal Board (“the Board”) reconsider its February 17, 2015, Decision (“the
`
`Decision”) denying Petitioner’s August 29, 2014, Petition (“the Petition”) for an
`
`Inter Partes Review (“IPR”) of US. Patent No. 5,904,172 (“the ‘ 172 patent”). For
`
`the reasons provided below, the Board’s refusal to consider the merits of the
`
`Petition was an abuse of discretion.
`
`First, the Decision is based on an erroneous interpretation of law. The Board
`
`denied the Petition on the grounds that the Petition failed to cite to specific
`
`portions of the references themselves], but cited only to the Declaration of Mr.
`
`Bernard Kuchel (“the Declaration”). Decision at 6. However, the Board has
`
`already accepted petitions using the exact same format. Indeed, the PTO’s Rules
`
`and Regulations do not require that a petition cite to “specific portions of the
`
`references themselves.” Rather, the PTO’s Rules and Regulations m
`
`precisely what the Decision purports to prohibit: citation to evidence.
`
`Second, the Decision is not based on substantial evidence. The Petition
`
`explains how the challenged claims of the ‘ 172 patent are obvious in view of the
`
`1 In fact, the Petition does cite to specific portions of the references throughout.
`
`See 6. g. Petition at 12 (“Kery discloses distributor (88)” where 88 is the number
`
`used to identify the distributor throughout the drawings and specification of Kery).
`
`BOS 47621793v1
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`three cited prior art references in accordance with the IPR rules. The Decision
`
`itself acknowledges that “the Kutchel Declaration (Ex. 1011) provides additional
`
`information regarding each of [the stated] shortcomings” but erroneously finds that
`
`“this information is not discussed adequately in the Petition and may not be
`
`incorporated by reference.” Decision at 7. The Board’s refusal to consider
`
`evidence cited in the Declaration is an abuse of discretion.
`
`1.
`
`Standard of Review
`
`When rehearing a decision on institution, the Board reviews the decision for
`
`an abuse of discretion. 37 C.F.R. § 42.7l(c). An abuse of discretion may be
`
`determined if a decision is based on an erroneous interpretation of law, if a factual
`
`finding is not supported by substantial evidence, or if the decision represents an
`
`unreasonable judgment in weighing relevant factors. Star Fruits SN. C. v. US,
`
`393 F.3d 1277, 1281 (Fed. Cir. 2005); ArnoldP’ship v. Dudas, 362 F.3d 1338,
`
`1340 (Fed. Cir. 2004); In re Gartside, 203 F.3d 1305, 1315-16 (Fed. Cir. 2000). A
`
`party requesting rehearing must identify specifically all matters the party believes
`
`the Board misapprehended or overlooked, and the place where each matter was
`
`addressed previously in a motion.
`
`11.
`
`The Decision is an Abuse of Discretion
`
`A. The rejection of the Petition based on its format of presenting
`
`evidence, a format described in the PTO’s Rules and Regulations
`
`BOS 47621793V1
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`

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`and that has been accepted by the Board in other Inter Partes Review
`
`(IPR) proceedings, is per se an abuse of discretion.
`
`The Board’s only reason for rejecting the Petition is based on the Petition’s
`
`evidentiary format. Specifically, the Board rejected the Petition because the
`
`Petition did not include “any citation to specific portions of the references
`
`themselves”. Decision at 6. However, the Petition does cite to specific portions of
`
`the references. For example, the Petition states that: “The distributor (88) of Kery
`
`is for use with an air inflatable mattress (air bed (10)) having at least one air
`
`bladder (the air springs (32) and elastic balls (56)) inflated by compressed air.
`
`[Id.
`
`at 1] 64]. Kery discloses a pump (compressor 92)), fluidly coupled to the at least
`
`one air bladder (the air springs (32) and elastic balls (56)) via distributor (88) and
`
`corresponding air line (94), and air tubes (66) for providing compressed air to the
`
`at least one air bladder.
`
`[Id. at 11 64]” Petition at 12. As shown, the Petition cites
`
`to the Kery reference and the specific reference numbers from Kery’s figures,
`
`which are citations to specific portions of the Kery reference itself.
`
`Further, the Board’s rejection overlooks and departs from the Board’s
`
`established practice of accepting petitions that cite to an expert declaration, which,
`
`in turn, cites to prior art to establish factual evidence for the petition. Indeed, the
`
`Board has accepted at least four other IPR petitions using the exact same format
`
`used in this Petition. Specifically, the petitions for all of IPR Nos. 2013-00292,
`
`BOS 47621793v1
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`

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`2013-00293, 2013-00294, and 2013—00295, cite to an expert declaration that, in
`
`turn, cites to specific portions of the references. For instance, pages 25-27 of the
`
`petition for IPR 2013-00292 cite to an expert declaration (EX. 1003), which, in
`
`turn, cites to specific portions of the references, to show various claims as being
`
`unpatentable. Microsoft Corp. v. Sufrcast Inc, IPR2013-00292, Paper 6, 25-27,
`
`(May 22, 2013). This same format is followed in the other above—noted IPRs, all
`
`of which were accepted by the Board, and all of which had trial instituted. Indeed,
`
`in the decision instituting trial in IPR2013—00292, the Board specifically refers to
`
`pages 25-27 of the IPR 2013-00292 petition, finding those pages sufficient to
`
`institute an IPR:
`
`Microsoft alleges that claims 1-13, 17—28, 30-33, 35-37, 39—43,
`and 46—50 are unpatentable under 35 U.S.C. § 102(b) as
`anticipated by Duhault II. 292 Pet. 25-2 7; 293 Pet. 27-29; 294
`Pet. 20-21. Microsoft grovides detailed exglanations as to how
`each claim limitation is met by the cited Qrior art reference,
`and the exglanations are suggorted by the declaration of Dr.
`David R. Karger. EX. 1003. In light of the arguments and
`evidence submitted by both parties, Microsoft has established a
`reasonable likelihood that claims 1-13, 17—28, 30-33, 35-37, 39-
`43, and 46—50 are unpatentable as anticipated by Duhault 11.
`
`Microsoft Corp. v. Sufrcast Inc, IPR2013—00292, Paper 19, 20 (NOV. 19, 2013)
`
`(emphasis added). The instant Petition’s format is the same as these other IPR
`
`petitions, so there is no basis on which to distinguish the circumstances of the
`
`present Petition from those the Board has already accepted. It is per se an abuse of
`
`BOS 47621793v1
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`

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`discretion to decline to institute an IPR based on its format when the Board has
`
`accepted other IPR petitions using the exact same format, and has instituted other
`
`IPR trials on those IPR petitions.
`
`The Board cites to 35 U.S.C. § 312(a)(3) and 37 CFR §§ 42.22(a)(2) and
`
`42.104(b)(4) as including a requirement for a petition to cite “to specific portions
`
`of the references themselves”. However, neither the IPR statute nor the IPR rules
`
`require a petition to cite “to specific portions of the references themselves”. The
`
`statutory section cited by the Board, 35 U.S.C. § 312(a)(3), only requires that “the
`
`petition identifies, in writing and with particularity, each claim challenged, the
`
`grounds on which the challenge to each claim is based, and the evidence that
`
`supports the grounds for the challenge to each claim” (emphasis added). The
`
`Petition complies with all requirements of § 312 as it includes the evidence that
`
`supports the grounds for the challenge to each claim. Indeed, the Petition’s
`
`evidentiary format was specifically used to comply with, inter alia, the evidentiary
`
`requirements set forth in by 35 U.S.C. § 312, the IPR Rules, the Board’s Trial
`
`Practice Guide, and prior Board decisions. For instance, the Board’s Trial Practice
`
`Guide states:
`
`The Board expects that most petitions and motions will rely
`upon affidavits of experts. Affidavits expressing an opinion of
`an expert must disclose the underlying facts or data upon which
`the opinion is based. See Fed. R. Evid. 705; and § 42.65.
`Opinions expressed without disclosing the underlying facts or
`data may be given little or no weight.
`
`BOS 47621793v1
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`

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`Federal Register 77:157 (August 14, 2012) p. 48763. What a reference discloses i_s
`
`a question of fact. In re Napier, 55 F.3d 610, 613 (Fed. Cir. 1995). Moreover,
`
`what a reference discloses is judged from the perspective of a person of ordinary
`
`skill in the art. Liberty Mutual Insurance Co. v. Progressive Casualty Insurance
`
`Co., CBM2012—00002, Paper 66, 42 (Jan. 23, 2014) (“Progressive fails to consider
`
`Black Magic, as a whole, from the perspective ofone ofordinary skill in the art.”).
`
`Further, mere attorney argument may not be persuasive. BAE Systems Info. and
`
`Electronic Sys. Integration, Inc. v. Cheetah Omni, LLC, Case IPR2013-00175,
`
`Paper 45, 11 (June 19, 2014). The Board also expressly prohibits attorney
`
`argument in any claim charts. Marvell Semiconductor, Inc. v. Intellectual Ventures
`
`ILLC, IPR2014—00547, Paper 9, 3 (May 23, 2014). For at least these reasons, the
`
`Petition cited to the Declaration of its expert to establish Mmatter of fact, and not
`
`attorney argument, what the three cited references disclose to a person of ordinary
`
`skill in the art.
`
`The Board cites to 37 CFR §§ 42.22(a)(2) and 42.104(b)(4) as including a
`
`requirement for a petition to cite “specific portions of the references themselves”.
`
`Neither § 42.22 nor § 42.104 includes any such requirement. 37 CFR §
`
`42.22(a)(2) simply mirrors 35 U.S.C. § 312, requiring citation to evidence. (“Each
`
`petition .
`
`.
`
`. must include .
`
`.
`
`. full statement of the reasons for the relief requested,
`
`BOS 47621793v1
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`Page 6 of 15
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`

`

`including a detailed explanation of the significance ofthe evidence including
`
`material facts, and the governing law, rules, and precedent.” (emphasis added))
`
`37 C.F.R. § 42.104(b)(4) provides that the Petition “must specify where each
`
`element of the claim is found in the prior art patents or printed publications relied
`
`upon” (emphasis added). Notably, section 42.104(b)(4) uses the word “specify”,
`
`not “citation”. Further, the PTO’s Rules and Regulations discussing section
`
`42.104(b)(4) requires citation to the evidence, and not the references themselves:
`
`Section 42.104(b) requires that the petition identify the precise relief
`requested for the claims challenged. Specifically, the rule requires
`that the petition identify. . .the exhibit numbers of the evidence relied
`upon with a citation to the portion of the evidence that is relied upon
`to support the challenge.
`
`“Changes to Implement Inter Partes Review Proceedings, Post-Grant Review
`
`Proceedings, and Transitional Program for Covered Business Method Patents
`
`(Final Rule)” Federal Register 77:157 (Aug. 14, 2012) p. 48688. Thus, rather than
`
`violating any stated rule, the Petition complies with the PTO’s own Rules and
`
`Regulations by presenting evidence by citing to an expert declaration, which, in
`
`turn, cites to specific portions of the references.
`
`Board decisions that are arbitrary, capricious, an abuse of discretion, or
`
`otherwise not in accordance with law must be set aside. In re Bogese, 303 F.3d
`
`1362, 1366 (Fed. Cir. 2002). Where an agency departs from established precedent
`
`without a reasoned explanation, its decision will be vacated as arbitrary and
`
`BOS 47621793v1
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`

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`capriciousz. Fred Beverages, Inc. v. Fred’s Capital Management C0,, 605 F. 3d
`
`963 (Fed. Cir. 2010). In Fred Beverages, the Federal Circuit reversed the
`
`Trademark Trial and Appeal Board’s decision denying a Motion for Leave to
`
`Amend the Petition for Cancellation for failure to submit the cancellation fee,
`
`finding the decision arbitrary and capricious. The Court’s analysis is instructive:
`
`There is no stated rule of the TTAB that a motion for leave to amend a
`
`petition for cancellation must be accompanied by the statutory fee
`corresponding to the classes for which cancellation is sought by
`amendment. . .. The rules relied on by the TTAB in deciding this case,
`Trademark Rules 2.1 l l(c)(l) and 2.112(b) relate only the
`requirements for filing an initial petition for cancellation, and do not
`speak to subsequent motion practice.
`
`In the absence of a stated rule, the TTAB might still justify requiring a
`cancellation fee to accompany a motion for leave to amend if such
`requirement were consistent with established practice. There is,
`however, no such established practice at the TTAB. It appears, in
`
`2 Although the ‘abuse of discretion’ standard is perhaps broader and less
`
`deferential than the ‘arbitrary and capricious’ standard, ‘arbitrary and capricious’ is
`
`encompassed by ‘abuse of discretion."‘ Richards v. United Mine Workers ofAm.
`
`Health & Retirement Fund, 895 F.2d 133, 135—36 (4th Cir. 1990). Violation of a
`
`legal rule is an abuse of decision. 5 U.S.C. § 706 (which mentions abuse of
`
`discretion and arbitrary and capricious in parallel) makes it illegal for an agency to
`
`render a decision that is arbitrary and capricious. Thus, an arbitrary and capricious
`
`decision is an abuse of discretion.
`
`BOS 47621793v1
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`

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`fact, that the TTAB has previously, under similar circumstances,
`granted or deferred ruling on motions for leave to amend filings
`without concurrent payment of the statutory cancellation fee.
`
`Fred Beverages at 967.
`
`In conclusion, the Petition was compliant with all statutory and regulatory
`
`requirements. Furthermore, the Board has accepted at least four other petitions
`
`using the exact same format as the present Petition. Thus, the Board’s decision to
`
`deny the Petition based on its format was per se an abuse of discretion.
`
`B. The Decision is not based on substantial evidence because the
`
`Petition establishes a substantial likelihood that the challenged
`
`claims are obvious in View of the cited art.
`
`The Decision asserts that the Petition is deficient because it fails to identify
`
`(a) the differences between Kery and the subject matter claimed, (b) how the
`
`construed claims are unpatentable, and (c) reasons to combine the three cited
`
`references. However, the Decision itself acknowledges that all of the alleged
`
`deficiencies are addressed in the Declaration. See Decision at 7 (“We recognize
`
`that the Kuchel Declaration (EX. 1011) provides additional information regarding
`
`each of these shortcomings”)
`
`First, the Decision is not supported by substantial evidence because the
`
`Petition does identify the differences between Kery and the subject matter of claim
`
`16. As an initial matter, neither KSR Int ’1 Co. v. Teleflex Inc, 550 US. 398 (2007)
`
`BOS 47621793v1
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`

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`nor Graham v. John Deere C0,, 383 US. 1 (1966) require “explicit” identification
`
`of the differences between Kery and the subject matter of claim 16. Rather,
`
`“differences between the prior art and the claims at issue are to be ascertained.”
`
`Graham, 383 US. at 17. The Petition establishes these differences by identifying
`
`on an element by element basis the specific limitations disclosed by Kery including
`
`citations to the figures of Kery. See e. g. Petition at 12 (“Kery discloses a pump
`
`(compressor (92)).”) Where Kery does not include a particular limitation, the
`
`Petition describes the “automated system of Kery + Guthrie.” See e. g. Petition at
`
`14 (“The automated system of Kery+Guthrie would have pressure sensor tubing in
`
`combination with the electronic pressure sensor (170-5) of Guthrie to communicate
`
`Via the already existing manometer port with the interior of the distributor (88), as
`
`taught by Kery”) By identifying which limitations are found only in the
`
`combination of Kery and Guthrie (as opposed to Kery itself), the Petition
`
`establishes the differences between Kery and the subject matter of claim 16.
`
`The Declaration further illustrates these differences in the specific
`
`paragraphs cited in the Petition in accordance with the PTO’s Rules and
`
`Regulations. For example, paragraph 69 of the Declaration explicitly states that
`
`“Kery does not specifically disclose ‘a processorfor providing commands to the
`
`improved valve enclosure assembly during an inflate/deflate cycle’”. Paragraph 69
`
`then proceeds to identify where the limitation is found in Guthrie: at 12:57—13 :7
`
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`and FIG. 21. Paragraph 69 further cites Attachment A, which contains claim
`
`charts for each of the challenged claims citing the specific portions of each
`
`reference where a limitation is found. Accordingly, while differences between
`
`Kery and claim 16 can be ascertained from the Petition itself per Graham, the cited
`
`evidence (the Declaration) explicitly identifies these differences.
`
`Second, the Decision is not supported by substantial evidence because the
`
`Petition explains cogently how the construed claims are unpatentable as required
`
`by 37 C.F.R. § 42.104(b)(4). The evidence cited in the Petition, in accordance
`
`with the PTO’s express Rules and Regulations, explains how the construed claims
`
`are unpatentable. Indeed, Petitioner describes on a limitation by limitation basis
`
`where each element is found in the prior art. See e.g. Petition at 12-15 relative to
`
`challenged claim 16. Although the Decision states that the Petition fails to identify
`
`which reference is relied upon as disclosing a processor, the Petition makes clear
`
`that the Guthrie reference is the reference disclosing the microprocessor. The
`
`Petition states that “the skilled person would find it obvious to automate Kery in
`
`view of Guthrie.” Petition at 12. The Petition also makes clear that Guthrie
`
`discloses a processor by explaining that “[t]he automated system of Kery+Guth1ie
`
`would replace the table valve assembly ofKery with the solenoid valve
`
`arrangement of Guthrie to automate the system of Kery.” Petition at 14. The
`
`Petition also cites to the Declaration at 1] 69 as evidence. Petition at 14. Paragraph
`
`BOS 47621793v1
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`

`

`69 of the Declaration states that “the skilled person would find it obvious to
`
`automate the system of Kery with a microprocessor and electronic pressure
`
`sensors” and cites to Guthrie 12:57-13:7, FIG. 21, and the claim charts found in
`
`Attachment A. Paragraph 69 of the Declaration also refers to its Sections IX(B)—
`
`(C), which are part of the Expert’s explanation of obvious modifications to Kery.
`
`Indeed, Section IX(C) of the Declaration is completely dedicated to explaining
`
`why it would be obvious to update the system of Kery with a microprocessor, such
`
`as the microprocessor of Guthrie. Declaration W 61—62. For these reasons, the
`
`Petition explains “why the claims as construed are unpatentable under the
`
`identified grounds, and the exhibit numbers of the evidence relied upon with a
`
`citation to the portion of the evidence that is relied upon to support the challenge.”
`
`Federal Register 771157 at 48688.
`
`Third, the Decision is not supported by substantial evidence because the
`
`Petition does articulate a reason for combining Kery and Guthrie. Pages 11-12 of
`
`the Petition specifically explain that all of the claimed elements were well known
`
`to those skilled in the art. Whether a modification is obvious is a question of fact.
`
`Graham, 383 US at 17. Thus, Section IX of the Declaration is entirely dedicated
`
`to explaining “Obvious Modifications to the Air Mattress System of Kery” to
`
`establish as a matter of fact obvious modifications to Kery. This Section IX
`
`includes 13 pages of discussion establishing, as a matter of fact, several obvious
`
`BOS 47621793v1
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`
`

`

`modifications to the system of Kery. Indeed, Section IX(C) is dedicated to
`
`establishing why it would be obvious, as a matter of fact, to update the system of
`
`Kery with a microprocessor (e. g., as per Guthrie). Section IX is included in the
`
`Petition by referring to specific portions of the Declaration. For instance,
`
`regarding the modification of Kery with a microprocessor (relative to claim 16),
`
`the Petition cites 11 69 and 112 of the Declaration as evidence. Petition at 14.
`
`Paragraph 69 of the Declaration, in turn, refers back to Sections IX(B)—(C) of the
`
`Declaration, which provide detailed arguments as to why it is obvious to update the
`
`system of Kery with the microprocessor of Guthrie. For these reasons, the Petition
`
`does adequately articulate a reason for combining the three cited references, and in
`
`compliance with all statutes and regulations.
`
`For these reasons, each of the deficiencies identified by the Board is
`
`described in the Petition in accordance with the requirements of Section 42.104(b).
`
`Accordingly, the Decision is not supported by substantial evidence and is an abuse
`
`of discretion.
`
`III. The Board should reconsider its denial of the Petition on grounds of
`
`formatting because had the Decision been issued only eleven days earlier, the
`
`Petitioner could have cured the stated deficiencies.
`
`As noted in the Petition, Petitioner was served with a complaint for patent
`
`infringement relative to the ‘ 172 patent on February 7, 2014. On September 4,
`
`BOS 47621793v1
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`

`

`2014, the Board accorded the Petition an August 29, 2014 filing date. Presumably,
`
`at this time, the Board’s paralegal(s) reviewed the Petition to determine
`
`compliance with formal requirements. (“Once a petition is submitted via PRPS, a
`
`Board paralegal will review the petition for statutory and regulatory compliance”;
`
`PTO website: http://www.uspto.gov/patents—applioation-process/appealing-patent—
`
`decisions/Ilials/patent-review-processing-system-prps—O). The Patent Owner filed
`
`a response on December 4, 2014. The one-year deadline for Petitioner to file
`
`another (or updated) petition against the ‘172 patent was February 7, 2015. The
`
`Board, thus, had more than two months from December 4, 2014, to notify
`
`Petitioner that its Petition was allegedly defective on formal grounds. Instead, the
`
`Board issued its Decision on February 17, 2015 — nine days after the statutory
`
`deadline.
`
`By waiting until after February 7, 2015, to issue its Decision, the Board has
`
`denied the Petitioner any ability to cure and precluded the Petitioner from filing a
`
`reformatted inter partes review petition against the ‘ 172 patent. Petitioner easily
`
`could have reformatted its Petition to comply with the Board’s requests. Indeed,
`
`the circumstance of this case are completely different than those of Cisco Systems,
`
`Inc., v. C-Cation Techs., LLC, Case IPR2014-00454, slip op. at 9—10 (PTAB Aug.
`
`29, 2014) cited by the Board, where the petition was the maximum length of 60
`
`pages, cited eleven references, proposed 20 different grounds of rejection, and
`
`BOS 47621793v1
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`

`

`included numerous footnotes to achieve the 60 page limit. (Notably, the Cisco
`
`decision was issued the same day the instant petition was filed, so Petitioner was
`
`not aware of Cisco at the time of filing.) In Cisco, the Board found the purpose of
`
`the petition’s format was “to circumvent the page limits imposed on petitions for
`
`inter partes review”. Cisco at 10. Here, the instant Petition was only 39 pages,
`
`which is 21 pages under the 60 page limit. Moreover, the instant Petition only
`
`cites three prior art references and could easily have been reformatted had
`
`Petitioner been advised early on it would be rejected on formal grounds. Under
`
`these circumstances, the Board should grant this Request for Reconsideration.
`
`IV. Conclusion
`
`As shown above, the Board’s rejection of the Petition based on its format
`
`was an abuse of discretion. The Petition was legally compliant and explains how
`
`the challenged claims of the ‘ 172 patent are obvious in view of the three cited prior
`
`art references. Notwithstanding, had the Board issued its Decision eleven days
`
`earlier, Petitioner could have cured the stated defects. It is therefore requested that
`
`the Board reconsider the Petition, and issue a decision on the merits of the Petition.
`
`Date: March 5 2015
`
`
`
`GREENBERG TRAURIG, LLP
`
`(14%;?)\ :5
`
`HeathJ. Briggs(briggshshfiQ-g—tl—aw.com)
`Registration No. 54,919
`1200 17th Street, Suite 2400
`Denver, CO 80202
`
`BOS 47621793v1
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`Case No.: IPR2014-01419
`
`Patent 5,904,172
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that on this 5th day of March, 2015, a copy of this Request
`
`for Reconsideration has been electronically served in its entirety by email to each
`
`of the following e-mail addresses:
`
`bwriglengoppenheimercom; and
`
`ipdocket@oppenheimer.com.
`
`Date: March 5 2015
`
`
`
`Respectfully submitted,
`
`GREENBERG TRAURIG, LLP
`
`
`\f
`
`Heath J. Briggs
`Registration No. 54,919
`1200 17th Street, Suite 2400
`Denver, CO 80202
`Phone: (303) 572-6500
`Fax: (303) 572-6540
`
`

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