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UNITED STATES PATENT AND TRADEMARK OFFICE
`____________________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________________________
`
`HUGHES NETWORK SYSTEMS, LLC and
`HUGHES COMMUNICATIONS, INC.,
`
`Petitioners,
`
`v.
`
`CALIFORNIA INSTITUTE OF TECHNOLOGY,
`
`Patent Owner.
`____________________________
`
`IPR2015-00059 (Patent 7,916,781)
`____________________________
`
`PETITIONERS’ RESPONSE IN OPPOSITION TO PATENT OWNER’S
`MOTION FOR ROUTINE AND ADDITIONAL DISCOVERY
`
`
`
`
`
`
`
`

`
`I.
`
`INTRODUCTION
`
`Patent Owner’s assertion that non-parties DISH Network Corporation, DISH
`
`Network L.L.C., and dishNET Satellite Broadband L.L.C. (collectively, “DISH”)
`
`are unnamed real parties-in-interest (“RPII”) is based on speculation, application of
`
`an incorrect legal test, and improper reliance on factors that the Board has
`
`previously held are insufficient to create RPII status. As a result, Caltech’s motion
`
`for additional discovery fundamentally fails because it does not, and cannot,
`
`demonstrate beyond speculation how any of its requests would be substantively
`
`useful to its allegations that DISH is a RPII. Caltech admits that it does not know
`
`what it will find, and even admits that it does not know if requested documents
`
`exist. Such speculative discovery is not allowed in an IPR proceeding and should
`
`be denied.
`
`Caltech’s additional discovery requests are also improperly invasive of the
`
`attorney-client privilege. Many of the requests seek privileged information, such
`
`as communications between members of a joint defense group, or billing records.
`
`Caltech also improperly uses its motion as an unauthorized reply to
`
`Hughes’s additional briefing on RPII issues. Seeking to reargue the issues again,
`
`Caltech mischaracterizes the statements of Hughes and Timothy Jezek concerning
`
`the RPII issue. Petitioners’ brief on the RPII issue is clear. DISH did not fund,
`
`direct, or control these IPRs, nor did it have the ability to do so. To the extent
`
`
`
`1
`
`

`
`Caltech argues or responds to Petitioners’ brief on this issue, Hughes respectfully
`
`requests the Board disregard Caltech’s unauthorized arguments.
`
`II. CALTECH FAILS TO SHOW HOW THE REQUESTS FOR
`ADDITIONAL DISCOVERY ARE NECESSARY
`IN THE
`INTERESTS OF JUSTICE
`
`The moving party seeking discovery has the burden of demonstrating that
`
`the additional discovery is necessary “in the interest of justice.” 37 C.F.R. §
`
`42.51(b)(2); TPG, at 48,761; Garmin Int’l, Inc. v. Cuozzo Speed Tech., LLC, Case
`
`IPR2012-00001, Paper 26, at 6 (PTAB Mar. 5, 2013). The Board in Garmin has
`
`identified five factors important in determining whether a discovery request meets
`
`this “interest of justice” requirement. Id., at 6–7.
`
`An important factor when evaluating a request for additional discovery is
`
`whether the party seeking additional discovery has shown that there is more than a
`
`“mere possibility of finding something useful, and mere allegation that something
`
`useful will be found.” Apple Inc. v. Achates Reference Publishing, Inc., IPR2013-
`
`00080, Paper 17, at 5 (PTAB Apr. 3, 2013). Instead, “the requester of information
`
`should already be in possession of a threshold amount of evidence or reasoning
`
`tending to show beyond speculation that something useful will be uncovered.”
`
`Garmin, at 7. In this context, the concept of “‘useful’ means favorable in
`
`substantive value to a contention of the party moving for discovery.” Id.
`
`Therefore, the party moving for discovery must show more than mere relevance,
`
`
`
`2
`
`

`
`but must show beyond speculation, that in fact something useful to a contention of
`
`the moving party will be uncovered. See Garmin, at 6–7.
`
`Caltech argues that additional discovery is required into whether DISH is an
`
`unnamed RPII. In an IPR proceeding, “the ‘real party-in-interest’ may be the
`
`petitioner itself, and/or it may be the party or parties at whose behest the petition
`
`has been filed.” TPG, at 48,759 (emphasis added). The question is whether an
`
`unnamed party “funds and directs and controls an IPR” petition or whether that
`
`other party is “litigating through a proxy.” TPG at 48,760; Aruze Gaming Macau,
`
`Ltd. v. MGT Gaming, Inc., IPR2014-01288, Paper 13, at 12 (PTAB Feb. 20, 2015).
`
`Therefore,
`
`to satisfy
`
`its burden, Caltech must demonstrate beyond
`
`speculation that something substantively useful will be uncovered regarding its
`
`contention that the IPR petitions were filed “at the behest of” DISH. Caltech fails
`
`to satisfy this heavy burden.
`
`A. Caltech’s Requests Rely on the Wrong Legal Test
`Caltech ignores the discovery standard in IPR proceedings and instead
`
`attempts to seek discovery under the more liberal relevance standard available in
`
`district court. In support of each discovery request, Caltech merely argues that the
`
`requested information is “relevant.” But, the requesting party’s burden to show the
`
`information will be “useful” in the context of an additional discovery request “does
`
`not mean merely ‘relevant’ and/or ‘admissible.’” Garmin, at 7.
`
`
`
`3
`
`

`
`Specifically, Caltech alleges that RFP No. 1 and Interrogatory No. 3 seek
`
`“relevant documents” and that production of no documents in response “would be
`
`highly relevant.” Paper 17, at 7. Caltech also argues that RFP No. 2 seeks
`
`“documents [that] are relevant to specific positions advanced by Hughes. . . .”
`
`Paper 17, at 8 (emphasis added). In support of RFP Nos. 3–5 Caltech states that
`
`the requests are “in the interest of justice, as they are directed to information that is
`
`highly relevant.” Paper 17, at 9, 11 (emphasis added). Interrogatory Nos. 1–2 also
`
`merely argue that the information sought is “relevant” to the RPII issue. Paper 17,
`
`at 12, 15.
`
`Patent Owner cites a previous CBM decision as granting additional
`
`discovery before cross-examination. Paper 17, at 7. However, CBM proceedings
`
`have a “more liberal ‘good cause’ standard” as compared to the “interests of
`
`justice” standard for discovery in an IPR. TPG, at 48,761; Bloomberg Inc. v.
`
`Markets-Alert Pty. Ltd., CBM2013-00005, Paper No. 32, at 2 (PTAB May 29,
`
`2013) (“While an interests of justice standard is employed in granting additional
`
`discovery in inter partes reviews, a good cause standard is applied in post-grant
`
`reviews and covered business method patent reviews.”). Therefore, Caltech’s
`
`requests should be denied as relying on the incorrect legal standard.
`
`
`
`4
`
`

`
`B. Caltech Fails to Show Beyond Speculation that Something Useful
`will be Found
`
`The party requesting discovery in an IPR must do more than merely allege
`
`the possibility of finding something useful. Garmin, at 6. Instead, the party
`
`moving for discovery “should already be in possession of evidence tending to
`
`show beyond speculation that in fact something useful will be uncovered.” Id.
`
`(emphasis added). Because Caltech’s requests are based on speculation, they
`
`should be denied.
`
`Caltech’s Requests Are Entirely Speculative
`
`1.
`As evidenced by its arguments in support of discovery, Caltech’s requests
`
`are largely a shot in the dark. First, Caltech admits that it does not know if many
`
`of the requested documents even exist. For example, in support of RFP Nos. 1 and
`
`5, and Interrogatory Nos. 2–3, Caltech argues that the non-existence of the
`
`requested documents would be “relevant.” Paper 17, at 7, 12. In addition, in
`
`support of RFP No. 5 and Interrogatory No. 2, Caltech argues that if “no
`
`documents are produced it will contribute to the totality of the circumstances”
`
`related to the issue of RPII. Paper 17, at 12. Caltech cannot satisfy its burden of
`
`showing the requests are in the interest of justice and that something useful will be
`
`found when it does not know if anything responsive even exists.
`
`Moreover, it is entirely unclear what Caltech expects to find as a result of
`
`RFP No. 1. Caltech merely speculates that “Mr. Jezek presumably needed to
`
`
`
`5
`
`

`
`review relevant documents” to support his declaration. Paper 17, at 7 (emphasis
`
`added). But, Caltech does not explain why Mr. Jezek would need to review
`
`specific documents, or what documents he would have necessarily reviewed and
`
`how they would be useful to support its contentions. Any documents referenced in
`
`Mr. Jezek’s declaration were disclosed concurrently with the declaration,
`
`consistent with § 42.51(b)(1)(i). See Jezek Decl., Paper 1070, at ¶ 11.
`
`2.
`
`Caltech Fails to Demonstrate Beyond Speculation that
`Something Useful Will be Found
`
`Even where Caltech actually knows the requested documents exist, it does
`
`not satisfy its burden of showing beyond speculation that something useful to its
`
`RPII contentions will be found as a result of any request.
`
`First, in support of RFP Nos. 1–5 and Interrogatory Nos. 1–3 and throughout
`
`its motion, Caltech generally alleges that each request would allow Caltech and the
`
`Board to evaluate the credibility or weight of Mr. Jezek’s declaration. Paper 17, at
`
`6–11, 13–14. Caltech does not support this bare allegation by stating what it
`
`expects to find. Nor does it explain how uncovered documents will be favorable to
`
`its RPII contentions. RFP No. 1 and Interrogatory No. 3 are entirely based on this
`
`generalized speculation that the information will allow it to “properly evaluate
`
`whether the testimony should be accorded any weight.” Paper 17, at 6–7. Because
`
`Caltech makes no attempt to show that it will uncover something useful to support
`
`its RPII contentions, these requests should be denied.
`
`
`
`6
`
`

`
`RFP No. 4 is also an entirely speculative attempt to discover documents for
`
`general “credibility” purposes. Mr. Jezek stated that “DISH did not direct, control,
`
`or suggest the filing of these Petitions. DISH did not provide any input into the
`
`content of the Petitions. DISH did not participate in the preparation or filing of the
`
`petitions.” Exhibit 1070, at ¶ 5. Caltech’s request for documents contrary to this
`
`statement are based entirely on speculation. Moreover, Caltech does not even
`
`allege that there are any communications between DISH and Hughes regarding the
`
`IPR petitions. Thus, this request is merely a blind fishing expedition. Caltech
`
`plainly does not know what it will find as a result of the requests. Nor has it shown
`
`that the uncovered information will be useful to support its contentions. Therefore,
`
`this request should be denied.
`
`RFP Nos. 2 and 3 generally seek facts that are insufficient to make a non-
`
`party a RPII. With regard to RFP No. 2, the only information Caltech seems to
`
`allege will be uncovered is that both DISH and Hughes participated in preparing
`
`the invalidity contentions filed in district court litigation. But, Caltech does not
`
`explain how that information would be useful in support of its contentions that the
`
`IPR was filed at the behest of DISH. Preparation of joint invalidity contentions is
`
`an entirely routine aspect of a joint defense group, which does not make a non-
`
`party an RPII of the petition, or even a privy of the petitioner. See TPG, at 48,760.
`
`Further, Hughes’s use of the previously filed invalidity contentions to inform its
`
`IPR petitions would be entirely consistent with its independent decision to file the
`
`7
`
`

`
`IPR. It would have been impractical, irrational, and a waste of resources to ignore
`
`the prior art already found in district court litigation. Caltech does not explain why
`
`the reuse of prior art is useful to its contentions.
`
`In support of RFP No. 3, Caltech alleges only that it will uncover an
`
`indemnity agreement between DISH and EchoStar that would cover “damages
`
`arising from intellectual property claims.” Paper 17, at 10. However, despite
`
`Caltech’s indication to the contrary, indemnification “is not one of the ‘substantive
`
`legal relationships’ cited in Taylor (e.g., assignee-assignor), and is significantly
`
`different from those relationships, which involve successive interests in property.”
`
`Achates, at 5 (finding an indemnify agreement insufficient to make a non-party an
`
`RPII, even when coupled with participation in a joint defense group). As a result,
`
`indemnification obligations are insufficient to “demonstrate beyond speculation”
`
`that a non-party is a RPII. Wavemarket Inc. v. Locationet Systems Ltd., IPR2014-
`
`00199, Paper 34, (August 11, 2014).
`
`Furthermore, Caltech argues that the existence of documents sought by RFP
`
`Nos. 2–3 are not “mere speculation.” Paper 17, at 8, 10. But merely showing that
`
`documents are likely to “exist” is not sufficient to satisfy the burden of showing
`
`the requests will be substantively useful to a contention. Accordingly, Caltech
`
`fails to show beyond speculation that something useful will be found through RFP
`
`Nos. 2–3.
`
`
`
`8
`
`

`
`RFP No. 5 and Interrogatory No. 2 are similarly speculative. These requests
`
`seek information as to whether Hughes and DISH were “walled off” from each
`
`other with respect to work on the IPR petitions. Caltech does not explain how
`
`either a “wall” between two separate law firms, or lack thereof, would be useful.
`
`Hughes is represented in district court litigation by counsel at a separate law firm
`
`from IPR counsel. Hughes is represented in district court by Wilmer Hale and
`
`represented in this IPR by Baker Botts. Separate firms do not typically have
`
`agreements to “wall off” from one another so a lack of a wall would not be
`
`informative, let alone useful. On the other hand, the existence of a wall would be
`
`useful to support Petitioners’ contentions that DISH is not an RPII, not Caltech’s.
`
`Therefore, Caltech has not satisfied its burden of showing beyond speculation that
`
`something useful in support of its own contentions will be found.
`
`As demonstrated by Caltech’s explanation, Interrogatory No. 1 is plainly
`
`based on speculation and should be denied. Caltech has not identified what it
`
`expects to find, or how it would be useful to its RPII contentions. Instead, Caltech
`
`argues that identification of decision-makers is designed to find “who did approve
`
`the filing” of the IPR, and “identify anyone who actually did perform [the]
`
`functions” of directing, controlling, or suggesting the IPR filings. Paper 17, at 14
`
`(emphasis original). Caltech even acknowledges that the subject of the request is
`
`“speculation.” Paper 17, at 14, n.3. Critically, again, Caltech does not allege that
`
`the request will find that someone at DISH controlled or approved the IPR
`
`9
`
`

`
`petitions. Because Caltech does not explain how a list of decision-makers will be
`
`useful to support its RPII contentions, Interrogatory No. 1 should be denied.
`
`C. The Requests Seek Information That is Not in Petitioner’s
`Possession or Control
`
`The requests seek information regarding documents and communications
`
`specific to DISH. But, as Hughes has made clear, DISH is a separate entity from
`
`the Petitioners. Paper 15, at 5. Hughes does not possess information specific to
`
`DISH. For example, RFP No. 2 seeks legal bills issued to DISH; RFP No. 3 seeks
`
`indemnification agreements between EchoStar and DISH; RFP No. 5 seeks
`
`instructions or agreements
`
`involving DISH or DISH
`
`litigation counsel;
`
`Interrogatory No. 1 asks for names of decision-makers at DISH; and Interrogatory
`
`No. 2 asks for information regarding DISH’s communications. Hughes could not
`
`produce this DISH specific information.
`
`When limited to the information in Hughes’s control, the speculative nature
`
`of the requests is apparent. For example, limited to only documents in the
`
`possession or control of Hughes, RFP No. 2 would only seek legal bills associated
`
`with Hughes’s own activities. Caltech has not and cannot show how this discovery
`
`would be in any way useful to its RPII contentions.
`
`D. The Requests are Overly Burdensome and Not Easily
`Understandable
`
`Requests for additional discovery must be “easily understandable.”
`
`Requests and accompanying instructions that are unclear should be denied because
`
`
`
`10
`
`

`
`they “are counter-productive and tend to undermine the responder’s ability to
`
`answer efficiently, accurately and confidently.” Garmin, at 6–7. In addition, the
`
`requests cannot be “overly burdensome to answer.” Garmin, at 7. The burden
`
`presented by the requests are reviewed in light of the short timeline in an IPR, and
`
`“includes financial burden, burden on human resources, and burden on meeting the
`
`time schedule of this review.” Id. Even if Hughes “suspects that no document
`
`meets a particular request, it is legally obligated to make a diligent search for
`
`information.” Id.
`
`First, the instructions and definitions make the discovery inherently overly
`
`burdensome and not easy to understand. The terms “document” and “thing” are
`
`defined with reference to Federal Rules of Civil Procedure, which does not apply
`
`in the PTAB. Ex. 2018, at 2. In addition, the definition of “communications”
`
`includes sending or receiving of information of “any kind through any means.”
`
`Ex. 2018, at 2. This overbroad definition is not easily understandable, and
`
`seemingly unlimited. For example, a shrug would seemingly be responsive to
`
`Caltech’s requests. Also, the instructions incorporate “instructions in the Office
`
`Patent Trial Practice Guide” without specifying which instructions are referred to
`
`or how to comply with them. Ex. 2018, at 1. The definitions of Hughes, EchoStar,
`
`and DISH are also overly burdensome because each definition includes an
`
`employee or agent of one of the listed companies, without limitation. Such an
`
`overbroad definition would require Hughes to consider the documents or
`
`11
`
`

`
`communications of countless individuals with no limitation on when they were
`
`employed or acted as an agent, or in what capacity.
`
`The instructions also impose an ongoing obligation to amend the responses
`
`and require producing a privilege log detailing documents withheld as privileged.
`
`Ex. 2018, at 1. But, these obligations are each themselves separate discovery
`
`requests that Caltech must separately support via a showing under the Garmin
`
`factors, which it has failed to do. These additional obligations or requirements are
`
`overly burdensome.
`
`The discovery requests themselves are also overly burdensome and not
`
`easily understandable. For example, RFP No. 1 asks for “[d]ocuments and things
`
`reviewed or considered.” The Board in Garmin denied a similar request as unduly
`
`burdensome that requested production of all documents and things “considered in
`
`preparing Your responses to patent owner’s Interrogatories.” Garmin, at 16 (“The
`
`undue breadth of such a request is self-evident.”). Documents produced by this
`
`request “need not contain anything useful or even relevant.” Id. Therefore, as in
`
`Garmin, there is “no valid reason for such an all-encompassing demand.” Id.
`
`RFP No. 2 seeks certain documents “sufficient to identify the entity that
`
`remitted payment for the legal services” or IPR filing fees, “whether directly or
`
`indirectly.” It is unclear what scope of documents would be included in the
`
`“indirect” payment of fees. In addition, RFP No. 3 asks for indemnity agreements
`
`“relating to” the IPRs, but it is unclear what would make an agreement “relate to”
`
`12
`
`

`
`the IPR and, therefore, be required to be produced. Similarly, Interrogatory No. 1
`
`seeks information regarding decision-making authority “with respect to” this IPR.
`
`It is unclear what authority “relates to” the IPR. For example, would an in-house
`
`IP attorney at DISH with the authority to generally file IPRs be included, even
`
`where that attorney in fact had no input into the filing of this IPR? There is also no
`
`limit to the scope or time period of decision-making authority in the request.
`
`RFP No. 4 is considerably burdensome, particularly in light of the obligation
`
`to create a privilege log for each document withheld due to privilege. This request
`
`includes communications concerning the prior art cited in the petitions, which was
`
`also cited in invalidity contentions in district court. Hughes and DISH are co-
`
`defendants and are in a joint defense group in that litigation. Any communications
`
`between members of the joint defense group would be common-interest privileged
`
`communications. Thus, each and every communication responsive to RFP No. 4
`
`would likely be privileged. As a result, Hughes would be required to look though
`
`all of its emails and its attorneys emails and provide privilege log summaries for
`
`each responsive email. That undertaking would be incredibly burdensome, time-
`
`consuming, expensive, and pointless.
`
`Responding to RFP No. 4 would also provide no useful information. The
`
`communications would be between two co-defendants discussing prior art in
`
`district court, entirely irrelevant to Caltech’s contention that DISH is an RPII.
`
`TPG, at 48, 760; Paramount Home Entertainment v. Nissim Corp., IPR2014-
`
`13
`
`

`
`00961, Paper 11 at 8 (PTAB Dec. 29, 2014) (finding a co-defendant or member of
`
`a joint defense group is not a RPII through that relationship).
`
`Therefore, the Board should deny these overly burdensome and ambiguous
`
`requests.
`
`E. Caltech Improperly Seeks Attorney-Client or Work-Product
`Privileged Information
`
`Caltech’s discovery requests are a thinly veiled attempt to force Petitioners
`
`to disclose privileged information in defense against its baseless RPII allegations.
`
`The requests plainly seek privileged information, such as communications between
`
`members of a joint defense group (RFP No. 4), or billing records (RFP No. 2).
`
`Petitioners should not be forced to produce such information, particularly in light
`
`of such speculative allegations.
`
`Caltech attempts to satisfy its burden by speculatively implying that these
`
`documents are assumed to be useful to its case because “if any documents
`
`responsive to this request exist it seems Hughes would readily produce them.” But
`
`Hughes should not have to waive the work-product protection and attorney-client
`
`privilege to respond to Caltech’s speculative and misguided RPII allegations.
`
`III. PATENT OWNER WAIVED ITS REQUEST FOR ADDITIONAL
`DISCOVERY INTO REAL PARTY-IN-INTEREST
`
`Caltech declined to seek timely discovery on this issue to inform its
`
`additional briefing. As of its Preliminary Response, Caltech must have been aware
`
`of its professed need for discovery into RPII. By delaying until well after the
`
`
`
`14
`
`

`
`parties filed their additional briefing on RPII authorized by the Board, Caltech has
`
`waived its motion for additional discovery into this issue. “A party should seek
`
`relief promptly after the need for relief is identified. Delay in seeking relief may
`
`justify a denial of relief sought.” 37 C.F.R. § 42.25(b).
`
`On January 29, 2015, Patent Owner filed its Preliminary Response
`
`dedicating approximately twelve pages to discussing allegations that the petitions
`
`do not identify all RPII. Paper 13, at 3–14. In response, on February 25, 2015, the
`
`Board conducted a conference call regarding Patent Owner’s RPII allegations.
`
`During that conference call, the Board indicated that it would consider “a well-
`
`tailored and very focused request” for additional discovery from Patent Owner.
`
`Ex. 2016, at p. 21. Immediately following that conference call, the Board
`
`authorized both parties to provide additional briefing “to the question of whether
`
`either of the Dish entities should have been named as a real party in interest.” Ex.
`
`2015. Instead, it waited over two months after it first raised the RPII issue, and
`
`well over a month after the Board authorized a motion for additional discovery.
`
`Therefore, Caltech’s delay is a waiver of the requested additional discovery. See
`
`37 C.F.R. § 42.25(b).
`
`IV. CONCLUSION
`For these reasons, Petitioners respectfully requests the Board deny each
`
`request proposed in Patent Owner’s Motion for Additional Discovery.
`
`
`
`
`
`
`
`15
`
`

`
`
`
`
`
`
`
`
`
`Date: May 6, 2015
`
`
`
`
`
`Respectfully Submitted,
`
` /Eliot D. Williams/
`
`
`
`
`
`Eliot D. Williams (Reg. No. 50,822)
`G. Hopkins Guy III (Reg. No. 35,866)
`1001 Page Mill Road, Bld. 1, Suite 200
`Palo Alto, California 94304-1007
`650.739.7510
`
`Attorneys for Petitioners, Hughes Network
`Systems, L.L.C. and Hughes
`Communications, Inc.
`
`
`
`16
`
`
`
`
`
`

`
`CERTIFICATE OF SERVICE
`In accordance with 37 C.F.R. § 42.6(e), the undersigned certifies that on the
`6th day of May, 2015, a complete and entire copy of
`the foregoing
`PETITIONERS’ REPLY BRIEF REGARDING IDENTIFICATION OF
`REAL PARTIES-IN-INTEREST, including exhibits and testimony relied upon,
`were served on the Patent Owner at the correspondence address of record in the
`proceeding:
`
`Michael T. Roseto
`WILSON SONSINI GOODRICH & ROSATI
`701 Fifth Avenue, Suite 5100
`Seattle, WA 98104-7036
`mrosato@wsgr.com
`
`Matthew A. Argenti
`WILSON SONSINI GOODRICH & ROSATI
`650 Page Mill Road
`Palo Alto, CA 94304-1050
`margenti@wsgr.com
`
`
`
`
`
`
` /Eliot D. Williams/
`Eliot D. Williams (Reg. No. 50,822)
`G. Hopkins Guy III (Reg. No. 35,866)
`1001 Page Mill Road, Bld. 1, Suite 200
`Palo Alto, California 94304-1007
`650.739.7510
`
`Attorneys for Petitioners, Hughes Network
`Systems, L.L.C. and Hughes
`Communications, Inc.
`
`
`
`
`
`Date: May 6, 2015
`
`
`
`
`
`
`
`
`
`
`
`17

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