Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`Paper No. 1
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`___________________
`
`
`APPLE INC.
`Petitioner,
`
`v.
`
`CONTENTGUARD HOLDINGS, INC.,
`Patent Owner
`
`
`Patent No. 7,774,280
`Issued: August 10, 2010
`Filed: October 4, 2004
`Inventors: Nguyen, et al.
`Title: System and Method for Managing Transfer of Rights Using Shared State
`Variables
`
`Inter Partes Review No. IPR2015-00354
`__________________________________________________________________
`
`PETITION FOR INTER PARTES REVIEW
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`Table of Contents
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`I. Compliance with Requirements of an Inter Partes Review Petition ............ 1
`A. Certification that the Patent May Be Contested via Inter Partes
`Review by the Petitioner ..................................................................... 1
`B.
`Fee for Inter Partes Review (§ 42.15(a)) ........................................... 1
`C. Mandatory Notices (37 CFR § 42.8(b)) ............................................. 1
`1.
`Real Party in Interest (§ 42.8(b)(1)) ............................................ 1
`2.
`Other Proceedings (§ 42.8(b)(2)) ................................................ 2
`3.
`Lead and Backup Lead Counsel (§ 42.8(b)(3)) .......................... 2
`4.
`Service Information (§ 42.8(b)(4)) ............................................. 2
`D.
`Proof of Service (§§ 42.6(e) and 42.105(a)) ....................................... 2
`II. Identification of Claims Being Challenged (§ 42.104(b)) .............................. 2
`III. Relevant Information Concerning the Contested Patent .......................... 3
`Effective Filing Date of the ’280 Patent ............................................. 3
`A.
`B.
`Person of Ordinary Skill in the Art ................................................... 3
`C. General Overview of the ’280 Patent ................................................. 4
`D. Construction of Terms Used in the Claims ....................................... 5
`1.
`General Observations .................................................................. 5
`2. Meta-right .................................................................................... 6
`3.
`Usage Rights ............................................................................... 8
`4. Manner of Use ........................................................................... 13
`5.
`Enforcing a Usage Right or a Meta-Right ................................ 14
`6.
`State Variable ............................................................................ 15
`7.
`Share a Right, State, or State Variable ...................................... 17
`8.
`Repository ................................................................................. 18
`9. Wherein the created right “includes” at least one state variable
` ................................................................................................... 20
`10. License ...................................................................................... 21
`11.
`“Means for obtaining a set of rights” ........................................ 21
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`Obvious Based on U.S. Patent No. 5,892,900 (“Ginter”) (Ex. 1007)
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`Ginter Discloses Systems and Processes Having Every Element
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`“Means for determining …” ..................................................... 22
`12.
`“Means for exercising the meta-right…” .................................. 23
`13.
`IV. Precise Reasons for Relief Requested ........................................................... 24
`A. Claims 1-5, 8, 11-16, 19, 22, 24-28, 31 and 34 Are Unpatentable as
` ............................................................................................................. 24
`1.
`Relevant History of Ginter at the PTO ..................................... 24
`2.
`Overview of Ginter (Ex. 1007) ................................................. 25
`3.
`of the Contested Independent Claims ....................................... 29
`a)
`The Preamble of Claims 1, 12 and 24 ....................................... 29
`a)
`created when the meta-right is exercised …” ........................... 30
`b)
`enforceable by a repository…” ................................................. 34
`c)
`entitled to the right specified by the meta-right…” .................. 37
`d)
`specified by the meta-right…” .................................................. 39
`e)
`created right.” ............................................................................ 40
`4.
`Obvious to a Person of Ordinary Skill ...................................... 42
`a)
`Scheme ...................................................................................... 43
`b)
`“Usage” and “Meta” Rights Are Shown By Ginter .................. 46
`c)
`Suggests Modifying Its “Trusted Architecture” ....................... 47
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`“…wherein the created right includes at least one state variable
`based on the set of rights and used for determining a state of the
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`“… obtaining a set of rights associated with an item, the set of
`rights including a meta-right specifying a right that can be
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`“…wherein the meta-right is provided in digital form and is
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`“…determining, by a repository, whether the rights consumer is
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`“…exercising the meta-right to create the right specified by the
`meta-right if the rights consumer is entitled to the right
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`The Various Implementations of Ginter Suggested by It and the
`Prior Art Render the Claimed Methods, Systems and Devices
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`Ginter Makes Obvious a Range of Implementations of Its
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`A Variety of Possible Locations and Data Constructs for
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`“Trusted Systems” Were Well-Known in 2001, and Ginter
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`Tracking and Enforcing Rights Using a Network Server Is
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`The Contested Dependent Claims Would Have Been Obvious
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`d)
`Disclosed in Ginter, and also in Wiggins ................................. 49
`5.
`Based on Ginter Alone or in View of Wiggins ......................... 53
`B.
`No Secondary Considerations Exist ................................................. 59
`V. Conclusion ........................................................................................................ 60
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`
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`Attachment A. Proof of Service of the Petition
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`Attachment B. List of Evidence and Exhibits Relied Upon in Petition
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`I.
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`Compliance with Requirements of an Inter Partes Review Petition
`A. Certification that the Patent May Be Contested via Inter Partes
`Review by the Petitioner
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`Petitioner certifies that U.S. Patent No. 7,774,280 (Ex. 1001) (the ’280
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`patent) is available for inter partes review. Petitioner also certifies it is not barred
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`or estopped from requesting inter partes review of the claims of the ’280 patent.
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`Neither Petitioner, nor any party in privity with Petitioner, has filed a civil action
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`challenging the validity of any claim of the ’280 patent. The ’280 patent has not
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`been the subject of a prior inter partes review by Petitioner or a privy of Petitioner.
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`Petitioner certifies this petition for inter partes review is timely filed.
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`Specifically, this petition is filed within one year of December 23, 2013, which is
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`the date Apple was served with a complaint for patent infringement of the ’280
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`patent in civil action No. 2:13-cv-01112. That action is now pending in the
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`Eastern District of Texas. Because the date of this petition is less than one year
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`from December 23, 2013, this petition complies with 35 U.S.C. § 315(b).
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`B. Fee for Inter Partes Review (§ 42.15(a))
`The Director is authorized to charge the fee specified by 37 CFR § 42.15(a)
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`to Deposit Account No. 50-1597.
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`C. Mandatory Notices (37 CFR § 42.8(b))
`1.
`Real Party in Interest (§ 42.8(b)(1))
`The real party of interest in this petition pursuant to § 42.8(b)(1) is Apple
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`Inc. (“Apple”) located at One Infinite Loop, Cupertino, CA 95014.
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`Other Proceedings (§ 42.8(b)(2))
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`2.
`In addition to the action pending in the Eastern District of Texas, the ’280
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`patent is the subject of three other petitions for inter partes review filed by
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`Petitioner; namely, IPR2015-00351, 00352, and 353. A related patent, U.S. Patent
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`No. 8,001,053, is the subject of four petitions for inter partes review filed by
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`Petitioner; namely, IPR2015-00355, 356, 357, and 358.
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`3.
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`Lead and Backup Lead Counsel (§ 42.8(b)(3))
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`Lead Counsel
`Jeffrey P. Kushan
`Reg. No. 43,401
`jkushan@sidley.com
`(202) 736-8914
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`Backup Lead Counsel
`Michael Franzinger
`Reg. No. 46,335
`iprnotices@sidley.com
`(202) 736-8583
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`4.
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`Service Information (§ 42.8(b)(4))
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`Service on Petitioner may be made by e-mail (iprnotices@sidley.com), mail
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`or hand delivery to: Sidley Austin LLP, 1501 K Street, N.W., Washington, D.C.
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`20005. The fax number for lead and backup lead counsel is (202) 736-8711.
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`
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`II.
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`D. Proof of Service (§§ 42.6(e) and 42.105(a))
`Proof of service of this petition is provided in Attachment A.
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`Identification of Claims Being Challenged (§ 42.104(b))
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`Claims 1-5, 8, 11-16, 19, 22, 24-28, 31 and 34 of the ’280 patent are
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`unpatentable for at least the following reasons: (i) Claims 1-5, 8, 11-16, 19, 22, 24-
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`28, 31 and 34 would have been obvious under 35 U.S.C. § 103 based on U.S.
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`Patent No. 5,892,900 to Ginter et al. (“Ginter”) (Ex. 1007); and (ii) Claims 1-5, 8,
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`11-16, 19, 22, 24-28, 31 and 34 would have been obvious under 35 U.S.C. § 103
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`based on Ginter in view of U.S. Patent No. 5,717,604 to Wiggins (Ex. 1011)
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`(“Wiggins”). U.S. Patent No. 5,892,900 to Ginter et al. (Ex. 1007) issued April 6,
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`1999. Ginter is prior art under § 102(b). Wiggins (Ex. 1011) issued on February
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`10, 1998, and is prior art under § 102(b). A complete list of the evidence relied
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`upon in support of this petition is provided in Attachment B.
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`III. Relevant Information Concerning the Contested Patent
`A. Effective Filing Date of the ’280 Patent
`The ’280 patent issued from U.S. Application No. 10/956,121 (the ’121
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`application), filed October 4, 2004, which is a continuation-in-part of Application
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`No. 10/162,701, filed June 6, 2002. The ’280 patent shares a substantial portion of
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`its disclosure with U.S. Patent No. 8,001,053 (the ’053 patent). The ’280 patent
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`claims priority to several provisional applications, including provisional
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`application No. 60/296,118, filed on June 7, 2001. Solely for the purposes of this
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`proceeding, Petitioner is treating the effective filing date of the ’280 patent claims
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`as being June 7, 2001.
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`
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`B. Person of Ordinary Skill in the Art
`A person of ordinary skill would have had at least a Masters degree in
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`computer science, computer engineering, or an equivalent degree, or a Bachelor’s
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`degree in computer science, computer engineering, or equivalent degree and at
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`least two years of relevant work experience, along with experience gained through
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`coursework, research, or experience in the fields of computer or information
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`security and distributed systems. See Ex. 1003 at ¶ 78.
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`C. General Overview of the ’280 Patent
`The ’280 Patent is generally directed to systems and methods for transferring
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`
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`rights associated with digital content in a distribution chain—i.e., a digital rights
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`management (DRM) scheme. See, e.g., Ex. 1001 at Abstract. The ’280 patent
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`acknowledges that DRM systems were “well known” in the art. Ex. 1001 (’280
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`patent) at 1:24-43, 3:55-61, 5:22-24 (“The interpretation and enforcement of usage
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`rights are well known generally and described in the patents referenced above, for
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`example.”), 5:39-41. The ’280 patent purports to advance the art in the field of
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`DRM schemes by introducing the concepts of “meta-rights” and “state variables.”
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`See Ex. 1001 at 5:43-51 (“The preferred embodiment extends the known concept
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`of usage rights, such as the usage rights and related systems disclosed in [various
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`patents], to incorporate the concept of ‘meta-rights’.”) (emphasis added); 1:18-20
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`(“The present invention generally relates to rights transfer and more particularly to
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`a method, system and device for managing transfer of rights using shared state
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`variables.”) (emphasis added). Each of the contested claims of the ’280 patent
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`recite “meta rights” while some of these claims also specify “sharing” of rights.
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`D. Construction of Terms Used in the Claims
`In this proceeding, claims must be given their broadest reasonable scope in
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`
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`light of the specification. 37 CFR § 42.100(b). If Patent Owner contends a claim
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`should have a meaning other than that conveyed by the ordinary meaning of the
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`terms of the claim, that contention should be disregarded if no amendment to the
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`claims compliant with 35 U.S.C. § 112 is made conforming the claim language to
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`Patent Owner’s proposed meaning. See gen. 77 Fed. Reg. 48764 (Aug. 14, 2012).
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`Cf., In re Youman, 679 F.3d 1335, 1343 (Fed. Cir. 2012).
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`1. General Observations
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`
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`The ’280 patent incorporates by reference several other patents and
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`applications. Ex. 1001 at 1:6-13, 1:37-43, 2:9-10. Material incorporated by
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`reference can be considered as intrinsic evidence in construing the claims with
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`certain limits. See Cook Biotech Inc. v. Acell, Inc., 460 F.3d 1365, 1376–77 (Fed.
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`Cir. 2006); Envirotech Corp. v. Al George, Inc., 730 F.2d 753, 760 (Fed. Cir.
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`1984). The ’280 patent uses many of the same terms as the ’053 patent; the terms
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`in these related patents should be construed consistently. In re Katz Interactive
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`Call Processing Patent Litig., 639 F.3d 1303, 1325 (Fed. Cir. 2011) (“we
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`ordinarily
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`interpret claims consistently across patents having
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`the same
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`specification”).
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`2. Meta-right
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`In its broadest reasonable construction, a “meta-right” is an ordered data
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`construct associated with a digital work, which is distinct from “usage rights,”
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`“state variables” or conditions associated with the digital work, and is interpreted
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`and processed by a repository to create, manipulate, modify, dispose of, or
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`otherwise derive usage rights or other meta-rights that are associated with the
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`digital work, but which is not directly a “usage right” with regard to the digital
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`work. In addition, a “meta right” is distinct from “state variables,” “conditions,”
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`and data constructs used by repositories to enforce meta-rights or usage rights (e.g.,
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`encryption keys, digital certificates and digital signatures). Ex. 1003 at ¶¶ 258-
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`264.
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`
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`The ’280 patent explains that a “meta-right” exists as data construct
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`associated with a particular digital work, and is used (enforced) by a repository.
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`Ex. 1001 at 4:24-28, 7:36-38, 15:13-14.
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`As the ’280 patent explains, “meta-rights” are “rights that one has to
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`generate, manipulate, modify, dispose of or otherwise derive other rights. Meta-
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`rights can be thought of as usage rights to usage rights (or other meta-rights).” Ex.
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`1001 at 5:47-50. The ’280 patent repeatedly differentiates “meta-rights” from
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`“usage rights,” indicating the former are used to create the latter or other meta-
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`rights.
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`When exercising usage rights, actions to content result. For example
`usage rights can be for viewing, printing, or copying digital content.
`When meta-rights are exercised, new rights are created from the
`meta-rights or existing rights are disposed as the result of exercising
`the meta-rights.
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`Id. at 7:26-31 (emphasis added). Thus, as described in the ’280 patent, a “meta-
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`right” cannot be used directly with respect to a digital work because exercising a
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`meta-right does not result in actions to “content” – a meta-right can only create or
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`revoke another meta-right or a usage right. See, e.g., id. at 5:52-60.
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`
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`The ’280 patent explains that information within a meta-right is used to
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`define a new meta-right or a usage right (the “derived” right) for the associated
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`digital work. See, e.g., Ex. 1001 at 2:52-60 (explaining “meta-rights” are used in
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`schemes “for transferring rights adapted to be associated with items from a rights
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`supplier to a rights consumer”) (emphasis added); see also id. at 10:8-19, Abstract,
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`Claim 1. For example, Figure 9 of the ’280 patent depicts use of a “meta-right” to
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`create “usage rights.”
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`See also Ex. 1001 at 11:52-12:2. In this illustration, the “meta-right” is a data
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`construct (901), which yields “usage rights” data constructs designated 902 and
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`903. Values within the “meta-right” (e.g., “play”) are transferred into the usage
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`rights. See also Ex. 1001 at 2:52-60 (“‘meta-rights’ specifying derivable rights
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`that can be derived from the meta-[rights]”) (emphasis added).
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`
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`The ’280 patent explains that information distinct from a “meta-right” or a
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`“usage right” is used to determine if a “meta-right” can be exercised, and in
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`creating attributes of a derived meta-right or usage right. See, e.g., id. at 7:55-58
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`(“Like usage rights, access and exercise of the granted meta-rights are controlled
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`by any related conditions 306 and state variables 308.”) (emphasis added); id. at
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`8:36-43.
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`3.
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`Usage Rights
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`In its broadest reasonable construction, a “usage right” is a data construct
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`that is persistently attached to protected digital content and that defines the
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`manner(s) in which the content may be used or distributed, as well as any
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`conditions on which use or distribution is premised. A “usage right” is distinct
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`from the other data constructs used in the ’280 patent systems and methods, such
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`as “meta rights,” “conditions,” “state variables” and data constructs which
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`repositories use for regulating access to content in digital works (e.g., encryption
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`keys, digital signatures, digital certificates). Ex. 1003 at ¶¶ 241-253. The ’280
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`patent describes “usage rights” as follows:
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`Usage rights define one or more manners of use of the associated
`document content and persist with the document content. The usage
`rights can permit various manners of use such as, viewing only, use
`once, distribution, and the like. Usage rights can be contingent on
`payment or other conditions.
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`Ex. 1001 at 2:14-21 (emphasis added). In other words, a “usage right” is a data
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`construct that specifies one or more “manners of use” (actions such as “play” or
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`“print”) that can be taken with the content in a digital work.
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`In explaining what “usage rights” are, the ’280 patent refers to the
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`explanation of this term in U.S. Patent No. 5,634,012 (Ex. 1012, ’012 patent),
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`incorporated by reference into the ’280 patent. Ex. 1001 at 1:40-42, 2:9-16; Ex.
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`1012 at 53:48-52; see also Ex. 1001 at 5:43-47 (“The preferred embodiment [of
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`meta-rights] extends the known concepts of usage rights, such as the usage rights
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`and related systems disclosed in U.S. Pat. Nos. 5,629,980, 5,634,012, 5,638,443,
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`5,715,403 and 5,630,235…”) (emphasis added).1 The ’012 patent, in turn, explains
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`that:
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`1
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`Patent Owner has represented that U.S. Patent Nos. 5,629,980, 5,638,443,
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`5,715,403 and 5,630,235 have the same disclosure as the ’012 patent by
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`designating these applications as “continuations” of each other.
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`The term “usage rights” or “rights” is a term which refers to rights
`granted to a recipient of a digital work. Generally, these rights define
`how a digital work can be used and if it can be further distributed.
`Each usage right may have one or more specified conditions which
`must be satisfied before the right may be exercised.
`
`Ex. 1012 at 6:42-48 (emphasis added). Thus, per the ’280 and ’012 patents,
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`“manners of use” are actions performed on a digital work. See Ex. 1001 at 7:26-27
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`(“When exercising usage rights, actions to content result. For example usage rights
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`can be for viewing, printing, or copying digital content.”); see also Ex. 1012 at
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`18:56-63.
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`The ’280 and ’012 patents also each explain that “usage rights” are a
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`“language” of possible “manners of use” of a digital work. In the ’012 patent, this
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`explanation is definitional: “USAGE RIGHTS: A language for defining the
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`manner in which a digital work may be used or distributed, as well as any
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`conditions on which use or distribution is premised.” Ex. 1012 at 53:48-52.
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`The ’280 patent also explains that “usage rights” take the form of a data
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`construct persistently stored or associated with the digital work. Ex. 1001 at 2:14-
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`16 (“Usage rights … persist with the document content”) (emphasis added); see
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`also Ex. 1012 at 9:8 (“Usage rights are attached directly to digital works.”); id. at
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`6:50-55 (“A key feature of the present invention is that usage rights are
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`permanently “attached” to the digital work. Copies made of a digital work will
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`also have usage rights attached. Thus, the usage rights and any associated fees
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`assigned by a creator and subsequent distributor will always remain with a digital
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`work.”) (emphasis added). Consistent with this, the ’280 patent provides examples
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`of implementation of usage rights in the form of a “rights label” or a “license”
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`associated with a copy of the digital work. See Ex. 1001 at 4:3-5 (“Rights label 40
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`is associated with content 42 and specifies usage rights and possibly corresponding
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`conditions that can be selected by a content recipient.”); id. at 4:7-12 (“…licenses
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`embody the actual granting of usage rights to an end user.”) (emphasis added).
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`The ’280 and ’012 patents explain that “usage rights” are enforced by
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`repositories. Ex. 1001 at 4:12-14; Ex. 1012 6:56-57 (“The enforcement elements
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`of the present invention are embodied in repositories.”). The ’280 and ’012
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`patents also indicate that information within the “usage right” determines which
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`actions a repository may take with that instance of the digital work. Ex. 1001 at
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`4:12-14 (“Client component 60 interprets and enforces the rights that have been
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`specified in license 52.”) (emphasis added); Ex. 1012 at 18:56-60 (“Usage rights
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`statements are interpreted by repositories and are used to determine what
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`transactions can be successfully carried out for a digital work and also to
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`determine parameters for those transactions.”) (emphasis added).
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`By contrast, the ’280 patent explains that other types of data constructs are
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`used by repositories for “enforcing” usage rights and meta-rights. Specifically, the
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`’280 patent differentiates “usage rights” from information and data constructs used
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`by a repository to enforce usage rights or otherwise protect digital works, such as
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`encryption keys, digital certificates and digital signatures. For example, the ’280
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`patent distinguishes the use of “usage rights” in regulating the manners of using
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`digital content (a “DRM” system) from prior art techniques that simply regulate
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`when and how an encrypted digital work may be decrypted to provide access to the
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`protected (encrypted) content. As the ’280 patent explains:
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`A “secure container” (or simply an encrypted document) offers a way
`to keep document contents encrypted until a set of authorization
`conditions are met and some copyright terms are honored (e.g.,
`payment for use). After the various conditions and terms are verified
`with the document provider, the document is released to the user in
`clear form. … Clearly, the secure container approach provides a
`solution to protecting the document during delivery over insecure
`channels, but does not provide any mechanism to prevent legitimate
`users from obtaining the clear document and then using and
`redistributing it in violation of content owners’' intellectual property.
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`Ex. 1001 at 1:45-57 (emphasis added). Thus, according to the ’280 patent, data
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`constructs such as encryption keys and digital signatures, as well as information
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`used to authenticate a user or regulate decryption of encrypted files, cannot be
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`“usage rights” because they are used to enforce usage rights and do not themselves
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`specify manners of use of content in a digital work. See Ex. 1003 at ¶ 252.
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`Petition for Inter Partes Review of U.S. Patent No. 7,774,280
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`4. Manner of Use
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`In its broadest reasonable construction, a “manner of use” is a defined way
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`of using or distributing a protected digital work (for example, PLAY, COPY, or
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`PRINT), but that does not unprotect the work, and is as distinct from conditions
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`which must be satisfied before using or distributing the protected digital work is
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`allowed or actions taken to gain access to the unprotected content within the digital
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`work (e.g., decryption, authentication). Ex. 1003 at ¶¶ 254-257.
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`The ’280 patent states that “usage rights define one or more manners of use
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`of the associated document content and persist with the document content. The
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`usage rights can permit various manners of use such as, viewing only, use once,
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`distribution, and the like. Usage rights can be contingent on payment or other
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`conditions.” Ex. 1001 at 2:14-18 (emphasis added). “Manners of use” are defined
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`in a “language” of possible actions that can be taken on the digital work. Ex. 1001
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`at 4:28-29, 2:14-16 (“Usage rights define one or more manners of use of the
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`associated document content.”); see also Ex. 1012 at 18:56-63 (“Usage rights
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`statements are interpreted by repositories and are used to determine what
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`transactions can be successfully carried out for a digital work and also to determine
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`parameters for those transactions. For example, sentences in the language
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`determine whether a given digital work can be copied, when and how it can be
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`used, and what fees (if any) are to be charged for that use.”)(emphasis added).
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`The ’280 patent contrasts such manners of use with “authorization
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`conditions” that, after being met, permit the end-user to perform the specified
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`“manner of use” of the digital content. Ex. 1001 at FIG. 8 (item 808), 1:45-51; see
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`also id. at 8:44-9:53 (contrasting authorization with exercise of meta-rights). Thus,
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`in the ’280 patent, authorization regulates access to the protected content in the
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`digital work, while usage rights define particular ways in which the content within
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`the digital work can be used.
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`5.
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`Enforcing a Usage Right or a Meta-Right
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`
`
`In its broadest reasonable construction, “enforcing” a “usage right” means
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`having a repository allow or prohibit a manner of use of content in a digital work
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`specified in the usage rights associated with the content. Ex. 1003 at ¶¶ 265-267;
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`Ex. 1001 at 1:24-29, 3:55-56, 4:12-14, 5:18-25. The ’280 patent makes clear that
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`repositories enforce “usage rights.” See id. at 2:12-14 (“A predetermined set of
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`usage transaction steps define a protocol used by the repositories for enforcing
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`usage rights.”); 4:12-14 (“Client component 60 interprets and enforces the rights
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`that have been specified in license 52.”); see also id. at Claim 1 (“determining, by
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`a repository, whether the rights consumer is entitled to the right specified by the
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`meta-right”).
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`In addition, the ’280 patent explains that information in a “license” – which
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`includes “usage rights” and “conditions” – will dictate whether the repository will
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`permit or prohibit the use of the protected content that has been requested. As the
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`’280 patent explains:
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`Client component 60 in client environment 30 will then proceed to
`interpret license 52 and allow use of content 42 based on the usage
`rights and conditions specified in license 52. The interpretation and
`enforcement of usage rights are well known generally and described
`in the patents referenced above, for example. The steps described
`above may take place sequentially or approximately simultaneously or
`in various orders.
`
`Ex. 1001 at 5:18-25.
`
`
`
`As noted above (§ 2), the ’280 patent explains exercising a meta right results
`
`in actions to other meta-rights or usage rights. Thus, enforcing a “meta-right”
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`means having a repository, based on information within the meta-right and,
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`optionally, specified in one or more “state variables” or conditions, perform actions
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`to create, manipulate, modify or revoke a derived meta-right or a usage right. Ex.
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`1003 at ¶¶ 265-267.
`
`6.
`
`State Variable
`
`
`
`In its broadest reasonable construction, a “state variable” is a data construct
`
`having a value that represents the status of usage rights, license, or other dynamic
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`conditions. Ex. 1003 at ¶¶ 275-281. The ’280 patent expressly defines “state
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`variables” as:
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`… variables having values that represent status of rights, or other
`dynamic conditions. State variables can be tracked, by clearinghouse
`90 or another device, based on identification mechanisms in license
`52.
`
`Ex. 1001 at 7:67-8:3. A “variable” is “a named storage location capable of
`
`containing data that can be modified during program execution.” Ex. 1033 (MS
`
`Computer Dictionary – 5th Ed. 2002) at p. 547. Thus, a “state variable” is a data
`
`construct containing information that enables tracking of the state of a “meta-right”
`
`or “usage right” associated with a particular instance of a digital work (i.e.,
`
`whether it has been exercised and whether its use complies with conditions
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`associated with the meta-right or usage rights). A “state variable” would not, for
`
`example, be a data construct that simply tracked the number of devices owned by
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`or authorized for use by a user or generally identify a work being distributed (e.g.,
`
`a particular movie or song). In the state variable is not tied to a particular set of
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`usage or meta rights associated with a particular copy of the digital work, it is
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`incapable of carrying out its primary function of tracking (e.g., counting) the uses
`
`of the rights associated that particular copy of digital work (e.g., to ensure they are
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`authorized and do not exceed the users' allocated number of uses).
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`
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`The ’280 patent also makes clear that a “state variable” is data distinct from
`
`the data defining the “manners of use” or “conditions” in the “meta-right” or
`
`“usage right.” The ’280 patent, for example, shows “state variables” being used to
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`regulate exercise of a “meta-right” or of a “usage right” rather than to specify a
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`manner of use of a work. Examples include a variable that counts each time a
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`particular item of content is printed, or a variable that tracks the expiration of a
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`thirty-day period for use of a digital work. Id. at 8:4-13; see also id. at 13:54 (state
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`variable functioning as a counter).
`
`7.
`
`Share a Right, State, or State Variable
`
`In its broadest reasonable construction, to “share” a right, state, or state
`
`variable associated with an instance of a digital work means regulating, for a
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`defined group of users or devices, the exercise of that “meta right” or “usage
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`right,” the value of the “state variable” or the status of the “condition.” Ex. 1003 at
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`¶¶ 282-283; Ex. 1001 at 11:17-43, 12:22-32, 12:57-67, 13:54-64, Fig. 10, Fig. 11,
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`Fig. 12, Fig. 13. In other words, the concept of “sharing” in the ’280 patent
`
`requires a one-to-many relationship between exercising a right, altering a state
`
`variable or the status of a condition on the one hand, and a user or device on the
`
`other hand.
`
`The ’280 patent provides several illustrations of “sharing” a right, stat