`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`NETAPP INC.,
`Petitioner,
`
`v.
`
`CROSSROADS SYSTEMS, INC.,
`Patent Owner.
`
`____________
`
`Case IPR2015-00773
`Patent No. 7,051,147
`____________
`
`
`
`PATENT OWNER’S PRELIMINARY RESPONSE
`
`
`
`
`I.
`II.
`
`III.
`
`TABLE OF CONTENTS
`
`2.
`
`B.
`
`C.
`
`SUMMARY OF ARGUMENT ....................................................................... 1
`INSTITUTION OF REVIEW SHOULD BE REJECTED UNDER 35
`U.S.C. § 325(D) BECAUSE THE PETITION REQUESTS
`INSTITUTION ON GROUNDS PREVIOUSLY REJECTED BY
`THE BOARD ................................................................................................... 2
`A.
`Procedural Background of IPR2015-00773 .......................................... 2
`1.
`Petitioner Previously Brought the Same Arguments and
`Evidence in IPR2014-01209 ....................................................... 2
`The Current Petition Merely Corrects the Deficiencies in
`the 1209 Petition ......................................................................... 5
`The Board Should Exercise its Discretion to Deny the Petition
`Under 35 U.S.C. § 325(d) ..................................................................... 5
`The Board Routinely Denies Similar Petitions as a “Second
`Bite at the Apple” ................................................................................ 14
`1. Medtronic, Inc. v. NuVasive, Inc., IPR2014-00487, Paper
`8 (PTAB Sept. 11, 2014) (designated as “Informative”) .......... 15
`Butamax Advanced Biofuels LLC v. Gevo, Inc., IPR2014-
`00581, Paper 8 (PTAB Oct. 14, 2014) ...................................... 16
`Samsung Electronics Co., Ltd., v. Rembrandt Wireless
`Techs., LP, IPR2015-00118, Paper 14 (PTAB Jan. 28,
`2015) ......................................................................................... 19
`Zimmer Holdings, Inc. v. Bonutti Skeletal Innovations
`LLC, IPR2014-01080, Paper 17 (PTAB Oct. 31, 2014). .......... 20
`Samsung Electronics Co. v. Affinity Labs of Texas, LLC,
`IPR2015-00820, Paper 12 (PTAB May 15, 2015) ................... 22
`6. Medtronic, Inc. v. Endotach LLC, IPR2014-00695, Paper
`18 (PTAB Sept. 25, 2014) ......................................................... 23
`INSTITUTION ON GROUND “A” SHOULD BE REJECTED
`BECAUSE IT IS SUBSTANTIALLY SIMILAR PRIOR ART AS
`SUBMITTED IN IPR2014-01226 ................................................................ 25
`
`2.
`
`3.
`
`4.
`
`5.
`
`i
`
`
`
`
`
`IV.IV.
`
`
`
`TRIAL SHOULD NOT BE INSTITUTED ON GROUND “B”TRIAL SHOULD NOT BE INSTITUTED ON GROUND “B”
`
`
`
`BECAUSE KIKUCHI IS NOT PRIOR ART TO THE ’ 147 PATENT ...... ..28BECAUSE KIKUCHI IS NOT PRIOR ART TO THE ’ 147 PATENT ...... ..28
`
`V.
`
`
`
`THE PETITION SHOULD BE DENIED BECAUSE IT FAILS TOTHE PETITION SHOULD BE DENIED BECAUSE IT FAILS TO
`
`IDENTIFY THE REAL PARTIES IN INTEREST .................................... ..34IDENTIFY THE REAL PARTIES IN INTEREST .................................... ..34
`
`IV. TRIAL SHOULD NOT BE INSTITUTED ON GROUND “B”
`BECAUSE KIKUCHI IS NOT PRIOR ART TO THE ’147 PATENT ........ 28
`THE PETITION SHOULD BE DENIED BECAUSE IT FAILS TO
`IDENTIFY THE REAL PARTIES IN INTEREST ...................................... 34
`VI. CONCLUSION .............................................................................................. 39
`
`
`
`
`
`
`VI.VI.
`
`
`
`CONCLUSION ............................................................................................ ..39CONCLUSION ............................................................................................ ..39
`
`ii
`
`
`
`TABLE OF AUTHORITIES
`
`Cases
`
`Cooper v. Goldfarb,
`154 F.3d 1321 (Fed. Cir. 1998) ............................................................................ 29
`
`Fleming v. Escort Inc.,
`774 F.3d 1371 (Fed. Cir. 2014) ............................................................................ 29
`
`Gonzalez v. Banco Cent. Corp.,
`27 F.3d 751 (1st Cir. 1994) .................................................................................. 38
`
`Griffith v. Kanamaru,
`816 F.2d 624 (Fed. Cir. 1987) .............................................................................. 28
`
`Jones v. Evans,
`46 F.2d 197 (C.C.P.A. 1931) ............................................................................... 29
`
`Keizer v. Bradley,
`270 F.2d 396 (C.C.P.A. 1959) ............................................................................. 33
`
`Mahurkar v. C.R. Bard, Inc.,
`79 F.3d 1572 (Fed. Cir. 1996) .............................................................................. 28
`
`Mycogen Plant Science, Inc. v. Monsanto Co.,
`252 F.3d 1306 (Fed. Cir. 2001) ............................................................................ 28
`
`Rey-Bellet v. Engelhardt,
`493 F.2d 1380 (C.C.P.A. 1974) ........................................................................... 29
`
`Thompson v. Dunn,
`166 F.2d 443 (C.C.P.A. 1948) ............................................................................. 33
`
`Tyco Healthcare Group LP v. Ethicon Endo-Surgery, Inc.,
`774 F.3d 968 (Fed. Cir. 2014) .............................................................................. 28
`
`Administrative Cases
`
`Aruze Gaming Macau, LTD. v. MGT Gaming, Inc.,
`IPR2014-01288, Paper 13 (PTAB February 20, 2015) ....................................... 35
`
`iii
`
`
`
`Butamax Advanced Biofuels LLC v. Gevo, Inc.,
`IPR2014-00581, Paper 8 (PTAB Oct. 14, 2014) ..................................... 16, 17, 18
`
`Cisco Systems, Inc. v. C-Cation Techs., LLC,
`IPR2014-00454, Paper 12 (PTAB Aug. 29, 2014) (informative opinion) .......... 11
`
`CustomPlay, LLC v. ClearPlay, Inc.,
`IPR2014-00783, Paper 9 (PTAB Nov. 7, 2014) .................................................. 11
`
`First Data Corp v. Cardsoft, LLC,
`IPR2014-00729, Paper 8 (PTAB October 17, 2014) ............................... 36, 38, 39
`
`Intelligent Bio-Systems, Inc. v. Illumina Cambridge Ltd.,
`IPR2013-00324, Paper 19 (PTAB Nov. 21, 2013) ................................................ 6
`
`Medtronic, Inc. v. Endotach LLC,
`IPR2014-00695, Paper 18 (PTAB Sept. 25, 2014) .................................. 23, 24, 25
`
`Medtronic, Inc. v. NuVasive, Inc.,
`IPR2014-00487, Paper 8 (PTAB Sept. 11, 2014) (informative opinion) ............ 15
`
`Samsung Electronics Co. v. Affinity Labs of Texas, LLC,
`IPR2015-00820, Paper 12 (PTAB May 15, 2015) ......................................... 22, 23
`
`Samsung Electronics, Co., Ltd. v. Rembrandt Wireless Techs., LP,
`IPR2015-00118, Paper 14 (PTAB Jan. 28, 2015) .........................................passim
`
`Unilever, Inc. v. Procter & Gamble Co.,
`IPR2014-00506, Paper 17 (PTAB Jul. 7, 2014) (informative opinion) .............. 10
`
`Zimmer Holdings, Inc. v. Bonutti Skeletal Innovations LLC,
`IPR2014-01080, Paper 17 (PTAB Oct. 31, 2014) ................................. 7, 8, 20, 21
`
`ZTE Corp. v. ContentGuard Holdings, Inc.,
`IPR2013-00454, Paper 12 (Sept. 25, 2013) (informative opinion) ............... 10, 13
`
`Statutes
`
`35 U.S.C. § 103 ...................................................................................................... 3, 4
`
`35 U.S.C. § 312 .................................................................................................. 35, 38
`
`iv
`
`
`
`35 U.S.C. § 314 .............................................................................................. 6, 12, 25
`
`35 U.S.C. § 315 .................................................................................................passim
`
`35 U.S.C. § 325 .................................................................................................passim
`
`Regulations
`
`37 C.FR. § 42.1 .................................................................................. 7, 21, 24, 26, 27
`
`37 C.FR. § 42.6 .................................................................................................. 11, 12
`
`37 C.FR. § 42.71 .............................................................................................. 1, 5, 18
`
`37 C.FR. § 42.104 .......................................................................................... 4, 11, 12
`
`37 C.FR. § 42.106 .................................................................................................... 38
`
`37 C.FR. § 42.107 .................................................................................................... 32
`
`37 C.FR. § 42.108 ...................................................................................................... 6
`
`37 C.FR. § 42.120 .................................................................................................... 12
`
`Other Authorities
`
`Rules of Practice for Trials Before The Patent Trial and Appeal Board and Judicial
`Review of Patent Trial and Appeal Board Decisions; Final Rule
`77 Fed. Reg. 48,612 (Aug. 14, 2012) ................................................................... 11
`
`H.R. Rep. No. 112-98, pt.1 (2011)..................................................................... 13, 18
`
`Office Patent Trial Practice Guide
`77 Fed. Reg. 48,756 (Aug. 14, 2012) ............................................................. 32, 35
`
`v
`
`
`
`Patent Owner’s Exhibit List
`IPR2015-00773
`
`
`Description
`
`United State Patent No. 5,941,972 (the “’972 Patent”)
`
`Exhibit No.
`
`2001
`
`2002-2108
`
`[Reserved]
`
`2109
`
`2110
`
`Proof of Service on Oracle Corporation in Crossroads Systems, Inc.
`v. Oracle Corporation, W.D. Tex. Case No. 1-13-cv-00895
`
`Proof of Service on NetApp, Inc. in Crossroads Systems, Inc. v.
`NetApp, Inc., W.D. Tex.Case No. 1-14-cv-00149
`
`2111-2120
`
`[Reserved]
`
`2121
`
`2122
`
`2123
`
`2124
`
`2125
`
`2126
`
`2127
`
`2128
`
`2129
`
`Institution Decision, IPR2014-01209, Paper 12 (PTAB Jan. 30,
`2015).
`
`Petition for Inter Partes Review, IPR2014-01209, Paper 1 (PTAB
`Jul. 23, 2014)
`
`Ex. 1010 (Chase Declaration) in IPR 2014-01209
`
`Institution Decision, IPR2014-01544, Paper 9 (PTAB April 3,
`2015)
`
`HP Journal (Ex. 1006 in IPR2014-01226)
`
`CRD-5500 Data Sheet (Ex.1005 in IPR2014-01226)
`
`Petition for Inter Partes Review, IPR2014-01554, Paper 3 (PTAB
`Sept. 25, 2014)
`
`Scheduling Order, IPR2014-01544, Paper 10 (PTAB April 3, 2015)
`
`Institution Decision IPR2014-01207
`
`vi
`
`
`
`2130
`
`2131
`
`2132
`
`2133
`
`Petition for Inter Partes Review, IPR2014-01207, Paper 1 (July 25,
`2014)
`
`Motion for Joinder, IPR2015-01064 , Paper 3 (PTAB April 17,
`2015)
`
`Petition for Inter Partes Review, IPR2015-01064, Paper 1 (PTAB
`April 17, 2015)
`
`First Amended Complaint for Patent Infringement Crossroads
`Systems, Inc. v. NetApp, Inc., W.D. Tex.Case No. 1-14-cv-00149
`
`2134-2299
`
`[Reserved]
`
`2300
`
`2301
`
`2302
`
`2303
`
`2304
`
`May 28, 1997 Fax from Geoffrey Hoese to Anthony Peterman
`(Plaintiff’s Exhibit 7 in Trial of Crossroads Systems, (Texas), Inc.
`v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217 SS
`(W.D. Tex. 2001)
`
`Excerpts from Transcript of Trial in Crossroads Systems, (Texas),
`Inc. v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217
`SS (W.D. Tex. 2001)
`
`Excerpts from Deposition of Geoff Hoese, August 6, 2001, taken in
`Crossroads Systems, (Texas), Inc. v. Chaparral Network Storage,
`Inc., Docket No. A 00-CA-217 SS (W.D. Tex. 2001)
`
`July 11, 1997 Letter and Draft Patent Application from Mr.
`Anthony Peterman (Baker & Botts LLP) to Mr. Geoffrey Hoese
`(Plaintiff’s Exhibit 266 in Trial of Crossroads Systems, (Texas),
`Inc. v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217
`SS (W.D. Tex. 2001)
`
`Excerpts from Deposition of Anthony Peterman, Nov. 14, 2000,
`taken in Crossroads Systems, (Texas), Inc. v. Chaparral Network
`Storage, Inc., Docket No. A 00-CA-217 SS (W.D. Tex. 2001)
`
`2305
`
`Declaration of John Middleton (May 22, 2015)
`
`vii
`
`
`
`2306
`
`2307
`
`2308
`
`2309
`
`2310
`
`2311
`
`2312
`
`2313
`
`Excerpts from Deposition of Geoff Hoese, Sept. 18-19, 2000, taken
`in Crossroads Systems, (Texas), Inc. v. Chaparral Network
`Storage, Inc., Docket No. A 00-CA-217 SS (W.D. Tex. 2001).
`
`Verrazano FC-SCSI Bridge Product Overview Presentation, June
`19, 1996
`(Plaintiff’s Exhibit 4 in Trial of Crossroads Systems, (Texas), Inc.
`v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217 SS
`(W.D. Tex. 2001)
`
`Verrazano Software Development, Sept. 10, 1996
`(Plaintiff’s Exhibit 5 in Trial of Crossroads Systems, (Texas), Inc.
`v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217 SS
`(W.D. Tex. 2001)
`
`Verrazano: System Structure Drawings, Document Number
`DS04100, Jan. 22, 1997
`(Plaintiff’s Exhibit 6 in Trial of Crossroads Systems, (Texas), Inc.
`v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217 SS
`(W.D. Tex. 2001)
`
`Excerpts from Deposition of Jeffry Russell, Sept. 26, 2000, taken in
`Crossroads Systems, (Texas), Inc. v. Chaparral Network Storage,
`Inc., Docket No. A 00-CA-217 SS (W.D. Tex. 2001).
`
`Conception and Reduction to Practice Timeline (Demonstrative)
`
`Verrazano Bare Board Drawings (latest revisions Sept. 3, 1997)
`CRDS 50579
`
`Engineering/Lab Notebook of Geoff Hoese
`(Plaintiff’s Exhibit 263 in Trial of Crossroads Systems, (Texas),
`Inc. v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217
`SS (W.D. Tex. 2001)
`(Exhibit 12 to Deposition of Geoff Hoese, Sept. 19, 2000, taken in
`Crossroads Systems, (Texas), Inc. v. Chaparral Network Storage,
`Inc., Docket No. A 00-CA-217 SS (W.D. Tex. 2001)).
`
`viii
`
`
`
`2314
`
`2315
`
`2316
`
`2317
`
`2318
`
`2319
`
`2320
`
`2321
`
`Verrazano Enclosure Specification, Revision 2.1, June 5, 1997
`(Plaintiff’s Exhibit 264 in Trial of Crossroads Systems, (Texas),
`Inc. v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217
`SS (W.D. Tex. 2001)
`
`[Reserved]
`
`CP4x00 Product Specification (Preliminary)
`(Plaintiff’s Exhibit 267 in Trial of Crossroads Systems, (Texas),
`Inc. v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217
`SS (W.D. Tex. 2001)
`(Exhibit 10 to Deposition of Jeffry Russell, Sept. 26, 2000, taken in
`Crossroads Systems, (Texas), Inc. v. Chaparral Network Storage,
`Inc., Docket No. A 00-CA-217 SS (W.D. Tex. 2001)).
`
`Verrazano Hardware Architecture, Revision 1.0, Aug. 25, 1997
`(Plaintiff’s Exhibit 268 in Trial of Crossroads Systems, (Texas),
`Inc. v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217
`SS (W.D. Tex. 2001)
`(Exhibit 2 to Deposition of Jeffry Russell, Sept. 26, 2000, taken in
`Crossroads Systems, (Texas), Inc. v. Chaparral Network Storage,
`Inc., Docket No. A 00-CA-217 SS (W.D. Tex. 2001)).
`
`Verrazano: System Structure Drawings, Document Number
`DS04100, Sept. 3, 1997
`
`Verrazano Software Architecture, Revision 1.1, Aug. 27, 1997
`
`Verrazano Programmable Device Instructions, Version 1.1, Sept. 5,
`1997
`
`Verrazano Component List and Insertion List Report, Sept. 29,
`1997
`
`ix
`
`
`
`2322
`
`2323
`
`Engineering/Lab Notebook of Geoff Hoese
`(Plaintiff’s Exhibit 274 in Trial of Crossroads Systems, (Texas),
`Inc. v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217
`SS (W.D. Tex. 2001)
`(Exhibit 14 to Deposition of Geoff Hoese, Sept. 19, 2000, taken in
`Crossroads Systems, (Texas), Inc. v. Chaparral Network Storage,
`Inc., Docket No. A 00-CA-217 SS (W.D. Tex. 2001)).
`
`December 31, 1997 Letter and Patent Application from Mr.
`William Hulsey (Baker & Botts LLP) to Mr. Dale Quisenberry
`(Plaintiff’s Exhibit 275 in Trial of Crossroads Systems, (Texas),
`Inc. v. Chaparral Network Storage, Inc., Docket No. A 00-CA-217
`SS (W.D. Tex. 2001)
`
`2324
`
`Declaration of Brian Bianchi (May 26, 2015)
`
`
`
`
`
`x
`
`
`
`Patent Owner Crossroads Systems, Inc. (“Patent Owner”) submits this
`
`Preliminary Response to the Petition for Inter Partes Review (the “Petition,” “773
`
`Petition” or “Pet.”) filed in IPR2015-00773 (the “773 IPR”) by NetApp, Inc.
`
`(“Petitioner”) seeking review of United States Patent No. 7,051,147 (the “‘147
`
`Patent”) (Ex. 1001).
`
`I. SUMMARY OF ARGUMENT
`The 773 Petition should be denied because it is nothing more than
`
`Petitioner’s attempt at a “second bite at the apple.” The 773 Petition is the third
`
`petition for inter partes review filed by Petitioner against the ‘147 Patent and the
`
`fourth of six filed over nine months by defendants in co-pending litigation. In
`
`IPR2014-01209 (the “1209 IPR”), to which Petitioner was a party, the Board
`
`previously denied inter partes review of the same challenged claims on the same
`
`grounds raised here. Rather than challenging the Board’s decision using the proper
`
`mechanism — a request for rehearing under 37 C.F.R. § 42.71(d) — Petitioner
`
`filed this “do-over” Petition in an attempt to correct defects in the 1209 Petition.
`
`See Pet. at 59-60.
`
`Petitioner does not raise any new prior art or evidence or offer any
`
`arguments that could not have been submitted in the 1209 IPR. Petitioner merely
`
`presents the same art and evidence, rewording the Petition to address deficiencies
`
`pointed out by the Board. The Board routinely exercises its discretion under 35
`
`1
`
`
`
`U.S.C. § 325(d) to reject attempts by petitioners to use the Board’s prior decision
`
`as a “how-to” guide to bolster unsuccessful challenges, and should do the same
`
`here. Therefore, the 773 Petition should be denied.
`
`The Petition should also be denied for several additional reasons. First, the
`
`petition raises substantially the same prior art that was previously submitted in
`
`IPR2014-01544 (the “1544 IPR”). For this additional reason, the Board should
`
`exercise its discretion to deny institution under 35 U.S.C. § 325. Second, with
`
`respect to the proposed combinations involving Kikuchi, the Petition should be
`
`denied because Kikuchi is not prior art to the ’147 Patent. Finally, the Petition
`
`should be denied because it fails to identify all real parties-in-interest and is time-
`
`barred under 35 U.S.C. § 315(b).
`
`II.
`
`INSTITUTION OF REVIEW SHOULD BE REJECTED UNDER 35
`U.S.C. § 325(d) BECAUSE THE PETITION REQUESTS
`INSTITUTION ON GROUNDS PREVIOUSLY REJECTED BY THE
`BOARD
`A.
`
`Procedural Background of IPR2015-00773
`1.
`
`Petitioner Previously Brought the Same Arguments and
`Evidence in IPR2014-01209
`Petitioner requests inter partes review of claims 1-13 of the ’147 Patent on
`
`the following grounds:
`
`Ground
`
`A
`
`References
`
`CRD-5500 User Manual, CRD-5500 Data
`Sheet, and Smith
`
`Claims
`Challenged
`1-13
`
`2
`
`
`
`B
`D1
`
`Kikuchi and Bergsten
`Bergsten and Hirai
`
`
`Pet. at 3. Petitioner previously requested review of the same claims based on the
`
`3, 6-9 and 12
`3, 6-9 and 12
`
`same grounds in the 1209 IPR. See Ex. 2121 at 2, 4-5. However, in the 1209 IPR,
`
`the Board found that Petitioner failed to demonstrate a reasonable likelihood that it
`
`would prevail on these challenges:
`
` “[T]he
`the Petition does not
`in
`information presented
`demonstrate a reasonable likelihood that claims 1-13 are
`unpatentable under 35 U.S.C. § 103(a) over CRD-5500 User
`Manual, CRD-5500 Data Sheet, and Smith.” Id. at 8.
`
` “Petitioners have not met their burden in establishing a
`reasonable likelihood that claim 3 is unpatentable [under 35
`U.S.C. § 103(a) over Kikuchi and Bergsten].” Id. at 10.
`
` “For the reasons discussed for claim 3, Petitioners have not met
`their burden in establishing a reasonable likelihood that
`independent claim 6, claims 7-9, which depend from claim 6,
`and claim 12 are unpatentable [under 35 U.S.C. § 103(a) over
`Kikuchi and Bergsten].” Id.
`
` “Petitioners have not met their burden in establishing a
`reasonable likelihood that claim 3 is unpatentable [under 35
`
`
`1 Petitioner did not present a Grounds “C”. See Pet. at 3.
`
`3
`
`
`
`U.S.C. § 103(a) over Bergsten and Hirai].” Id. at 13.
`
` “For the reasons discussed for claim 3, Petitioners have not met
`their burden in establishing a reasonable likelihood that
`independent claim 6, claims 7-9, which depend from claim 6,
`and claim 12 are unpatentable [under 35 U.S.C. § 103(a) over
`Kikuchi and Bergsten].” Id. 2
`
`The Board rejected the prior challenges because Petitioner improperly
`
`incorporated by reference arguments made in the accompanying Chase declaration,
`
`circumventing the page limits that apply to petitions. Id. at 7-8, 9-10, 12-13. In
`
`citing only the Chase declaration in support of its arguments, Petitioner failed to
`
`specify where each element of the claim was found in the asserted grounds, as
`
`required by 37 C.F.R. § 42.104(b)(4). Thus, the Board agreed with Patent Owner
`
`that Petitioner attempted to establish its prima facie case without specifying
`
`“where each claim element of the claims is found in the applied references” and
`
`2 The Board did grant inter partes review on Petitioner’s challenges to (1) claims 1,
`
`2, 4, 10, 11, and 13 based on Kikuchi and Bergsten, (2) claim 5 based on Kikuchi,
`
`Bergsten and Smith, (3) claims 1, 2, 4, 10, 11, and 13 based on Bergsten and Hirai,
`
`(2) claim 5 based on Bergsten, Hirai, and Smith. Ex. 2121 at 15. Accordingly,
`
`Petitioner does not challenge those claims based on those specific grounds again
`
`here.
`
`4
`
`
`
`without including “a detailed explanation of the significance of the evidence.” Id.
`
`at 7-8.
`
`The Board’s decision which denied institution for the claims and grounds
`
`asserted here issued on January 30, 2015. Id. at 1. Pursuant to 37 C.F.R. §
`
`42.71(d)(2), Petitioner could have filed a request for rehearing within 30 days of
`
`that decision. Petitioner did not do so, choosing instead to file the current Petition
`
`on February 19, 2015.
`
`2.
`
`The Current Petition Merely Corrects the Deficiencies in
`the 1209 Petition
`
`Petitioner admits that IPR2014-01209 “corresponds generally to this
`
`petition.” Pet. at 59. Petitioner acknowledges that the current Petition merely
`
`attempts to correct the deficiencies of the 1209 Petition, explaining that, while that
`
`petition “cited largely to the supporting declaration,” the current Petition “presents
`
`the prior art by identifying all of the prior art evidence within the four corners of
`
`the petition.” Id. at 59-60. The same exhibits, including the exact same expert
`
`declaration, are relied upon in both petitions. Compare Pet. at iv-vi with Ex. 2122
`
`at iv-vi; cf. Ex. 1010 with Ex. 2123 (Ex. 1010 in IPR2014-01209) (identical expert
`
`Declaration executed by Dr. Chase on July 25, 2014).
`
`B.
`
`The Board Should Exercise its Discretion to Deny the Petition
`Under 35 U.S.C. § 325(d)
`In determining whether to institute an inter partes review, the Board may
`
`5
`
`
`
`“deny some or all grounds for unpatentability for some or all of the challenged
`
`claims.” 37 C.F.R. § 42.108(b); see 35 U.S.C. § 314(a). Congress did not mandate
`
`that an inter partes review must be instituted under certain conditions; rather, by
`
`stating that review may not be instituted unless certain conditions are met,
`
`Congress made institution discretionary. Intelligent Bio-Systems, Inc. v. Illumina
`
`Cambridge Ltd., IPR2013-00324, Paper 19 at 4 (PTAB Nov. 21, 2013).
`
`In particular, the Director (and by extension the Board) has broad discretion
`
`to deny a petition that raises substantially the same prior art or arguments
`
`previously presented to the Office:
`
`Multiple Proceedings.— Notwithstanding sections 135 (a), 251,
`and 252, and chapter 30, during the pendency of any post-grant
`review under this chapter, if another proceeding or matter involving
`the patent is before the Office, the Director may determine the
`manner in which the post-grant review or other proceeding or
`matter may proceed, including providing for the stay, transfer,
`consolidation, or termination of any such matter or proceeding. In
`determining whether to institute or order a proceeding under
`this chapter, chapter 30, or chapter 31, the Director may take
`into account whether, and reject the petition or request
`because, the same or substantially the same prior art or
`arguments previously were presented to the Office.
`
`35 U.S.C. § 325(d) (emphasis added). The Board recognized that, under 35 U.S.C.
`
`§ 325(d), “a petitioner is not entitled to multiple challenges against a patent.”
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`6
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`
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`Samsung Electronics, Co., Ltd. v. Rembrandt Wireless Techs., LP, IPR2015-00118,
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`Paper 14 at 6 (PTAB Jan. 28, 2015) (citing 35 U.S.C. § 325(d)).
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`In exercising its discretion under this section, the Board has been mindful of
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`the direction of 37 C.F.R. § 42.1(b), which states that the regulations governing
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`proceedings before the Board “shall be construed to secure the just, speedy, and
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`inexpensive resolution of every proceeding.” The Board has denied petitions
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`seeking a second chance to assert the same art against the same claims because the
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`Board was “not persuaded that a second chance would help ‘secure the just,
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`speedy, and inexpensive resolution of every proceeding.’” Rembrandt, IPR2015-
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`00118, Paper 14 at 6 (citing 37 C.F.R. § 42.1(b)); see also Zimmer Holdings, Inc.
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`v. Bonutti Skeletal Innovations LLC, IPR2014-01080, Paper 17 at 5-6 (PTAB Oct.
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`31, 2014).
`
`In Rembrandt, the petitioner filed a first petition to review multiple claims
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`based on anticipation by a particular reference. Rembrandt, IPR2015-00118, Paper
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`14 at 4. The Board denied institution on certain claims because the petition did not
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`establish that the reference taught specific claim elements. Id. at 4-5. Petitioner
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`filed a second petition requesting review of the same claims providing additional
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`argument that i) the reference “explicitly teaches the limitations [the Board] found
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`missing from Petitioner’s [first petition], . . . as explained in [the] institution
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`decision in [the prior proceeding]” and ii) the missing limitations were rendered
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`7
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`
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`obvious by the reference. Id. at 5. According to the Board, “[t]he sole difference
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`between what Petitioner present[ed] in [the second] proceeding and what Petitioner
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`presented in [the first proceeding] . . . is the presence of additional reasoning to
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`support the assertion of unpatentability over the same prior art.” Id. at 6.
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`The Board found that the petitioner was “requesting, essentially, a second
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`chance to address [previously challenged] claims.” Id. (emphasis added). The
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`Board denied the second petition, stating that “[i]n this proceeding . . . we are not
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`apprised of a reason that merits a second chance. Petitioner simply presents an
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`argument now that it could have made in [the previous IPR] had it merely chosen
`
`to do so.” Id.; see also Zimmer Holdings, Inc., IPR2014-01080, Paper 17 at 5-6
`
`(denying petition where “Petitioner simply presents an argument now that it could
`
`have made in [the prior proceeding], had it merely chosen to do so.”)
`
`The present case is analogous in that Petitioner is seeking a second chance to
`
`show where elements can allegedly be found in the prior art. Petitioner candidly
`
`admits that the current Petition is nothing more than a “second bite at the apple,”
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`where Petitioner has corrected the deficiencies in its prior petition. Pet. at 59-60.
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`The only substantive changes identified by the Petitioner are the inclusion of cites
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`8
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`
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`to the prior art references, instead of cites to the supporting declaration. Id.3 Thus,
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`like Rembrandt, the difference between the first petition and the second petition “is
`
`the presence of additional reasoning to support the assertion of unpatentability over
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`the same prior art.” Rembrandt, IPR-2015-00118, Paper 14 at 6. The Petitioner is
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`thus requesting exactly the type of “second chance to address [previously
`
`challenged claims]” that the Board found lacking in Rembrandt. Id. (emphasis
`
`added).
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`Petitioner offers no justification or explanation for the deficiencies in its
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`prior petition, offering, instead, only the statement that the Petition “is not filed for
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`any improper purpose.” Pet. at 60. As in Rembrandt, Petitioner has not provided “a
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`reason that merits a second chance” but simply “presents an argument now it could
`
`
`3 Although the Petition has been extensively reworded to incorporate the citations,
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`Petitioner has not pointed out any arguments that are substantively different than
`
`those in the 1209 Petition. To the extent Petitioner may intend to include
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`substantively different arguments, Petitioner does not provide any reason such
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`arguments could not have been provided in the 1209 Petition or why such
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`arguments justify a “second chance” petition. See, e.g., Rembrandt, IPR2015-
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`00118, Paper 14 at 7.
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`9
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`
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`have made in [the prior petition], had it merely chosen to do so.” Thus, as in
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`Samsung v. Rembrandt, the Board should likewise deny institution in this
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`proceeding.
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`Petitioner admits that the Board found the 1209 Petition deficient for
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`improperly incorporating its expert declaration by reference. Pet. at 59. As the
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`Board has previously explained, however, correcting deficiencies identified by an
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`institution decision does not justify a second bite at the apple:
`
`The Board is concerned about encouraging, unnecessarily, the
`filing of petitions which are partially inadequate. A decision to
`institute review on some claims should not act as an entry ticket,
`and a how-to guide, . . . for filing a second petition to challenge
`those claims which it unsuccessfully challenged in the first petition.
`
`ZTE Corp. v. ContentGuard Holdings, Inc., IPR2013-00454, Paper 12 at 5-6 (Sept.
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`25, 2013) (designated as “Informative”) (emphasis added). Likewise, the Board has
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`denied institution under § 325(d), stating that “[b]ased on the information
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`presented, we are persuaded that the instant Petition uses our prior Decision on
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`Institution to bolster challenges that were advanced, unsuccessfully, in the
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`[prior] Petition.” Unilever, Inc. v. Procter & Gamble Co., IPR2014-00506, Paper
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`17 at 8 (PTAB Jul. 7, 2014) (designated as “Informative”) (emphasis added).
`
`More recently, the Board denied institution stating:
`
`10
`
`
`
`A decision to institute review on some claims in a first inter partes
`review, however, should not act as a how-to guide for the same
`Petitioner filing a second petition for inter partes review
`challenging claims that it unsuccessfully challenged in the first
`petition or claims that it reasonably could have challenged in the
`first petition.
`
`CustomPlay, LLC v. ClearPlay, Inc., IPR2014-00783, Paper 9 at 9 (PTAB Nov. 7,
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`2014) (emphasis added).
`
`There is no reason that Petitioner could not have properly specified where
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`each element of the claim is found in the relied-upon references when the 1209
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`Petition was filed. The requirements of section 42.104(b), and the strictures against
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`incorporation by reference found in section 42.6, were undoubtedly well known to
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`Petitioner’s experienced and respected counsel. See, Rules of Practice for Trials
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`Before The Patent Trial and Appeal Board and Judicial Review of Patent Trial and
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`Appeal Board Decisions; Final Rule, 77 Fed. Reg. 48,612, 48,617 (Aug. 14, 2012)
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`(“The prohibition against incorporation by reference minimizes the chance that an
`
`argument would be overlooked and eliminates abuses that arise from incorporation
`
`and combination.”); see also Cisco Systems, Inc. v. C-Cation Techs., LLC,
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`IPR2014-00454, Paper 12 at 10 (PTAB Aug. 29, 2014) (designated as
`
`“Informative”) (“In the Petition before us, incorporation by reference of numerous
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`arguments from [the expert’s] Declaration into the Petition serves to circumvent
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`11
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`
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`the page limits . . ., while imposing on our time by asking us to sift through over
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`250 pages of [the expert’s] Declaration . . . .”).
`
`Petitioner offers no rationale justifying its failure to comply with the
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`regulations governing incorporation by reference (37 C.F.R. § 42.6(a)(3)), or those
`
`requiring that the petition specify where each element of the claim is found in the
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`relied-upon references (37 C.F.R. § 42.104(b)(4)). Under 35 U.S.C. § 314(a), it
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`was Petitioner’s burden to make its case. Petitioner failed to do that in the 1209
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`Petition. Thus, there is no reason sufficient to justify the burden of instituting the
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`773 Petition.
`
`Allowing Petitioner to correct the errors in the 1209 Petition, correcting the
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`deficiencies pointed out by Patent Owner and using the Board’s prior institution
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`decision as a roadmap, is fundamentally unfair, and does not secure the “just,
`
`speedy, and inexpensive resolution” of Petitioner’s challenges to the ’147 Patent.
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`The 1209 Petition was one of a pair of petitions filed by Petitioner, challenging
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`the ’147 Patent. In addition to the 1209 Petition, Petitioner file