`
`
`
`
`
`
`
`
`
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`FORD MOTOR COMPANY
`Petitioner
`
`v.
`
`PAICE LLC & THE ABELL FOUNDATION, INC.
`Patent Owner
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Case IPR2015-00795
`Patent 7,104,347
`
`
`
`
`
`
`
`
`
`
`Patent Owner’s Preliminary Response to
`Petition for Inter Partes Review of U.S.
`Patent No. 7,104,347
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`TABLE OF CONTENTS
`
`
`
`I.
`
`II.
`
`INTRODUCTION ........................................................................................... 1
`
`PROCEDURAL BACKGROUND ................................................................. 2
`
`III. THE ’347 PATENT ......................................................................................... 3
`
`A.
`
`B.
`
`Background of the ’347 Patent .............................................................. 3
`
`Claim Construction ............................................................................... 6
`
`
`
`
`
`“setpoint (SP)” ............................................................................ 7
`
`“monitor patterns of vehicle operation over time” ................... 12
`
`IV. ARGUMENT ................................................................................................. 16
`
`A.
`
`The Board Should Exercise its Discretion to Reject Ford’s Fifth Bite
`at the Apple ......................................................................................... 17
`
`
`
`
`
`The Petition is Ford’s Fifth Bite at the Apple ........................... 20
`
`Estoppel Considerations Support Rejecting Ford’s Petition .... 26
`
`B.
`
`The Petition is Procedurally Improper ................................................ 29
`
`
`
`
`
`The Petition Improperly Incorporates by Reference ................ 29
`
`The Petition Creates an Overly Voluminous Record ............... 33
`
`C.
`
`Ground 1 is Deficient .......................................................................... 34
`
`Ford’s Proposed Grounds Fail to Present a Proper Obviousness
`
`Analysis Under 35 U.S.C. § 103(a) ..................................................... 35
`
`
`
`
`
`Independent Claim 1 ................................................................. 39
`
`Dependent Claims 2 and 5 ........................................................ 44
`
`i
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`D. Ground 2 is Deficient .......................................................................... 45
`
`E.
`
`F.
`
`Ground 3 is Deficient .......................................................................... 47
`
`Ground 4 is Deficient .......................................................................... 49
`
`G. Ground 5 is Deficient .......................................................................... 51
`
`H. Ground 6 is Deficient .......................................................................... 52
`
`I.
`
`Ground 7 is Deficient .......................................................................... 53
`
`V.
`
`CONCLUSION .............................................................................................. 54
`
`
`
`ii
`
`
`
`
`
`
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`TABLE OF AUTHORITIES
`
` Page(s)
`
`Cases
`In re Abbott Diabetes Care Inc.,
`696 F.3d 1142 (Fed. Cir. 2012) .......................................................................... 11
`
`Apple, Inc., v. ContentGuard Holdings, Inc.,
`IPR2015-00356, Paper 9 (PTAB Jun. 26, 2015) ................................................ 34
`
`Apple Inc. v. ContentGuard Holdings, LLC,
`IPR2015-00448, Paper 9 (PTAB July 10, 2015) ................................................ 39
`
`ASUSTeK Computer Inc. v. Exotablet, Ltd.,
`IPR2015-00041, Paper 6 (PTAB Apr. 23, 2015) ............................................... 19
`
`Boston Scientific Scimed, Inc. v. Cordis Corp.,
`554 F.3d 982 (Fed. Cir. 2009) ...................................................................... 36, 43
`
`Butamax Advanced Biofuels LLC v. Gevo, Inc.,
`IPR2014-00581, Paper 8 (PTAB Oct. 14, 2014) .............................. 18, 20, 21, 27
`
`Cisco v. C-Cation Technologies,
`IPR2014-00454, Paper 12 (PTAB Aug. 29, 2014) ............................................. 30
`
`Continental Automotive Sys., Inc. v. Wasica Finance GMBH,
`IPR2014-01454, Paper 14 (PTAB Feb. 13, 2015) .............................................. 25
`
`In re Cortright,
`165 F.3d 1353 (Fed. Cir. 1999) ...................................................................... 7, 11
`
`In re Cuozzo Speed Tech., LLC,
`778 F.3d 1271 (Fed. Cir. 2015), reh’g denied, __ F.3d __ (Fed. Cir.
`Jul. 8, 2015) ........................................................................................................... 6
`
`CustomPlay, LLC v. ClearPlay, Inc.,
`IPR2014-00783, Paper 9 (PTAB Nov. 7, 2014) ................................................. 27
`
`iii
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`eBay Inc. v. MoneyCat Ltd.,
`CBM2015-00008, Paper 9 (PTAB May 1, 2015) ............................................... 27
`
`Fidelity National v. DataTreasury,
`IPR2014-00491, Paper 9 (PTAB Aug. 13, 2014) ............................................... 30
`
`Fuji Photo Film Co. v. Int'l Trade Comm’n,
`386 F.3d 1095 (Fed. Cir. 2004) .......................................................................... 11
`
`In re Giannelli,
`739 F.3d 1375 (Fed. Cir. 2014) .......................................................................... 40
`
`Graham v. John Deere Co.,
`383 U.S. 1 (1966) .......................................................................................... 35, 53
`
`Innogenetics, N.V. v. Abbott Labs.,
`512 F.3d 1363 (Fed. Cir. 2008) ........................................................ 47, 49, 51, 54
`
`Ex Parte James R. Bosserdet Jr.,
`Appeal 2012-001420, 2014 WL 5590704 (PTAB Oct. 9, 2014) ....................... 42
`
`KSR Int’l Co. v. Teleflex Inc.,
`550 U.S. 398 (2007) ................................................................................ 35, 38, 53
`
`MasterImage 3D, Inc. v. Reald Inc.,
`IPR2015-00033, Paper 12 (PTAB Apr. 22, 2015) ............................................. 50
`
`MaxLinear, Inc. v. Cresta Technology Corp.,
`IPR2015-00591, Paper 9 (PTAB Jun. 15, 2015) ................................................ 24
`
`Micro Motion, Inc. v. Invensys Systems, Inc.,
`IPR2014-0393, Paper 16 (PTAB Aug. 4, 2014) ................................................. 30
`
`Microsoft Corp. v. Proxyconn, Inc.,
`No. 2014-1542, 2015 WL 3747257 (Fed. Cir. Jun. 16, 2015) ................... 6, 7, 11
`
`Microsoft Corp. v. Enfish, LLC,
`IPR2013-00559, Paper 65 (PTAB Mar. 3, 2015) ............................................... 48
`
`In re Nilssen,
`837 F.2d 1098 (Fed. Cir. 1987) .......................................................................... 52
`
`iv
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`In re NTP, Inc.,
`654 F.3d 1279 (Fed. Cir. 2011) ...................................................................... 7, 11
`
`Salesforce.com, Inc. v. VirtualAgility, Inc.,
`CBM2013-00024, Paper 16 (PTAB Nov. 19, 2013) .......................................... 48
`
`Samsung Elecs. Co. v. Rembrandt Wireless Technologies, LP,
`IPR2015-00555, Paper 20 (PTAB Jun. 19, 2015) ........................................ 19, 27
`
`Shaw Indus. Grp. v. Automated Creel Sys., Inc.,
`IPR2013-00132 & IPR2013-00584, Paper 44 (PTAB Jul. 24, 2014) ................ 41
`
`Shaw Industries Group, Inc. v. Automated Creel Sys., Inc.,
`IPR2013-00584, Paper 16 (PTAB Dec. 21, 2013) ............................................. 30
`
`Spansion Inc. v. Macronix Int’l Co., Ltd.,
`IPR2014-01116, Paper 12 (PTAB Dec. 22, 2014) ............................................. 41
`
`In re Suitco Surface, Inc.,
`603 F.3d 1255 (Fed. Cir. 2010) ........................................................................ 6, 7
`
`Tempur Sealy Int’l Inc. v. Select Comfort Corp.,
`IPR2014-01419, Paper 7 (PTAB Feb. 17, 2015) ................................................ 30
`
`Texas Instruments v. United States ITC,
`988 F.2d 1165 (Fed. Cir. 1993) .......................................................................... 42
`
`Travelocity.com L.P. v. Cronos Techs. LLC,
`CBM2014-00082, Paper 10 (PTAB Sept. 15, 2014) .......................................... 36
`
`Unified Patents, Inc. v. PersonalWeb, LLC,
`IPR2014-00702, Paper 13 (PTAB Jul. 24, 2014) ............................................... 29
`
`Unilever, Inc., v. The Proctor & Gamble Co.,
`IPR2014-00506, Paper 17 (PTAB Jul. 7, 2014) ................................................. 27
`
`Unilever v. Procter & Gamble Company,
`IPR2014-00628, Paper 23 (PTAB Mar. 20, 2015) ................................. 19, 20, 27
`
`In re Vaidyanathan,
`381 Fed. Appx. 985 (Fed. Cir. 2010) .................................................................. 11
`
`v
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`ZTE Corp. v. ContentGuard Holdings, Inc.,
`IPR2013-00454, Paper 12 (PTAB Sept. 25, 2013) ............................................. 23
`
`Statutes
`
`35 U.S.C. § 103 ........................................................................................................ 35
`
`35 U.S.C. § 313 .......................................................................................................... 1
`
`35 U.S.C. § 315 ............................................................................................ 20, 26, 28
`
`35 U.S.C. § 316 ........................................................................................................ 33
`
`35 U.S.C. § 322 .................................................................................................. 35, 37
`
`35 U.S.C. § 325 .................................................................................................. passim
`
`Other Authorities
`
`37 C.F.R. § 42.1 ........................................................................................... 19, 23, 33
`
`37 C.F.R. § 42.6 ................................................................................................. 29, 30
`
`37 C.F.R. § 42.22 ......................................................................................... 29, 35, 37
`
`37 C.F.R. § 42.100 ................................................................................................. 2, 6
`
`37 C.F.R. § 42.104 ............................................................................................. 31, 33
`
`37 C.F.R. § 42.107 ..................................................................................................... 1
`
`157 Cong. Rec. S952 (2011) .................................................................................... 18
`
`77 Fed. Reg. 48756, 48763 (Aug. 4, 2012) ............................................................. 33
`
`H.R. Rep. No. 112-98 (2011) ....................................................................... 18, 24, 33
`
`
`
`
`
`
`
`vi
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`EXHIBITS
`
`Exhibit Number
`Ex. 2301
`Ex. 2302
`Ex. 2303
`Ex. 2304
`
`
`Exhibit Name
`Table of Ford’s IPR Petitions
`Gregory Davis Deposition Transcript (Feb. 25, 2015)
`The Oxford Essential Dictionary, American Ed.
`(1998) (excerpt)
`Appendix A (Jan. 15, 2014)
`
`
`
`vii
`
`
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`I.
`
`INTRODUCTION
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`In accordance with 35 U.S.C. § 313 and 37 C.F.R. § 42.107, Paice LLC and
`
`The Abell Foundation, Inc. (“Patent Owner” or collectively referred to as “Paice”)
`
`respectfully submit this Preliminary Response to the Petition for Inter Partes
`
`Review (“the Petition” or “Pet.”) of U.S. Patent No. 7,104,347 (Ex. 1301) (“the
`
`’347 patent”) filed by Ford Motor Company (“Ford” or “Petitioner”).
`
`In its fifth petition for inter partes review (IPR) of the ’347 patent, Ford
`
`asserts that claims 1-5, 14, 16, 19, 20, and 22 are obvious in view of U.S. Patent
`
`No. 5,789,882 to Ibaraki et al. (Ex. 1303) (“Ibaraki ’882”), either alone or in
`
`combination with U.S. Patent No. 4,335,429 to Kawakatsu (Ex. 1305)
`
`(“Kawakatsu ’429”), U.S. Patent No. 5,823,280 to Lateur et al. (Ex. 1307)
`
`(“Lateur”), U.S. Patent No. 5,934,395 to Koide et al. (Ex. 1317) (“Koide”), U.S.
`
`Patent No. 6,116,363 to Frank (Ex. 1318) (“Frank”), U.S. Patent No. 5,865,263 to
`
`Yamaguchi et al. (Ex. 1321) (“Yamaguchi”), U.S. Patent No. 6,003,626 to Ibaraki
`
`et al. (Ex. 1322) (“Ibaraki ’626”), Fiat Conceptual Approach to Hybrid Cars
`
`Design, Vittone (Ex. 1320) (“Vittone”), and “the knowledge of a POSA.”
`
`Paice requests that the Board deny institution for at least the following
`
`reasons: (1) the Petition relies on substantially the same prior art and arguments
`
`that it has previously presented, representing Ford’s fifth shot at the ’347 patent,
`
`and part of an overall strategy designed to drive up costs and overburden Paice
`
`1
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`with twenty-five petitions for IPR based on serial grounds of obviousness; (2) the
`
`Petition is procedurally improper, containing improper incorporation by reference,
`
`and creating an excessively voluminous record; and (3) the Petition is defective
`
`and deficient because Ford fails to address adequately a motivation to combine the
`
`alleged prior art references and (even if combined) to allege adequately that the
`
`proposed combinations render the challenged claims obvious.
`
`Because Ford’s Petition is abusive and duplicative and fails to establish a
`
`reasonable likelihood that at least one of the challenged claims is unpatentable, the
`
`Board should reject the petition and decline to institute a fifth proceeding regarding
`
`the ’347 patent.
`
`II.
`
`PROCEDURAL BACKGROUND
`
`On April 4, 2014, Ford filed two petitions for IPR against the ’347 patent:
`
`IPR2014-00571 challenged claims 1, 6, 7, 9, 15, 21, 23, and 36, while IPR2014-
`
`00579 challenged claims 1, 7, 8, 18, 21, 23, and 37. The Board instituted IPR of
`
`those claims on September 30, 2014. On July 1, 2015, the Board heard oral
`
`arguments on the petitions, and is expected to issue a final written decision no later
`
`than September 30, 2015. See 37 C.F.R. § 42.100(c). On June 5, 2014, Ford filed
`
`a third petition (IPR2014-00884) for IPR against claims 1, 7, 10, 21, 23, and 24 of
`
`the ’347 patent. On December 11, 2014, the Board instituted review of the
`
`2
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`challenged claims, and is expected to issue a final written decision prior to
`
`December 11, 2015.
`
`Ford filed a petition (IPR2015-00794) for IPR against claims 23, 24, 25, 26,
`
`27, 28, 29, 30, 32, 39, 40, and 41 of the ’347 patent on February 23, 2015, and filed
`
`the instant Petition against claims 1-5, 14, 16, 19, 20, and 22 the same day, in its
`
`twenty-first and twenty-second of twenty-five petitions for IPR, and its fourth and
`
`fifth petitions regarding the ’347 patent. Armed with Paice’s response to its first
`
`two petitions and Paice’s preliminary response to its third petition, along with the
`
`Board’s institution decisions, Ford concocted yet another challenge to the ’347
`
`patent relying on substantially the same arguments.
`
`III. THE ’347 PATENT
`A. Background of the ’347 Patent
`The ’347 patent, entitled “Hybrid Vehicles,” issued on September 12, 2006,
`
`from an application with a priority date of September 14, 1998. The ’347 patent
`
`discloses embodiments of a hybrid electric vehicle, with an internal combustion
`
`engine and two motors. One or both of the motors may be used to recharge the
`
`battery. Additionally, a microprocessor is employed to select different operating
`
`modes based on the vehicle’s instantaneous torque requirements, the state of
`
`charge of the battery bank, and other variables. See, e.g., Ex. 1301 at Abstract.
`
`3
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`An embodiment of the hybrid vehicle disclosed in the ’347 patent is shown
`
`in Figure 3, reproduced below:
`
`
`
`Id. at Fig. 3. As shown, a traction motor 25 is connected to the road wheels 34
`
`through a differential 32. A starter motor 21 is connected to the internal
`
`combustion engine 40. The motors 21 and 25 are functional as either motors or
`
`generators, depending on the operation of the corresponding inverter/charger units
`
`23 and 27, which connect the motors to the battery bank 22. See id. at 26:13-24.
`
`These components are controlled by a microprocessor 48 or any controller
`
`capable of examining input parameters and signals and controlling the mode of
`
`operation of the vehicle. See, e.g., id. at 26:25-27:20. For example, control of
`
`engine 40 is accomplished by way of control signals provided by the
`
`microprocessor to the electronic fuel injection (EFI) unit 56 and electronic engine
`
`management (EEM) unit 55. Control of (1) starting of the engine 40; (2) use of
`
`motors 21 and 25 to provide propulsive torque; or (3) use of motors as generators
`4
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`to provide regenerative recharging of battery bank 22, is accomplished through
`
`control signals provided by the microprocessor to the inverter/charger units 23 and
`
`27. See, e.g., id. at 26:59-27:20, 28:38-49.
`
`The hybrid vehicle may be operated in a number of modes based on the
`
`vehicle’s instantaneous torque requirements, the engine’s maximum torque output,
`
`the state of charge of the battery, and other operating parameters. In an
`
`implementation of the ’347 patent, the microprocessor causes the vehicle to
`
`operate in various operating modes pursuant to its control strategy.
`
`For example, in mode I, the hybrid vehicle is operated as an electric car,
`
`with the traction motor providing all torque to propel the vehicle. Id. at 37:26-35.
`
`As the vehicle continues to be propelled in electric only mode, the state of charge
`
`of the battery may become depleted, and need to be recharged. In this case, the
`
`hybrid vehicle may transition to mode II to recharge the battery, in which case the
`
`vehicle operates as in mode I, with the addition of the engine running the
`
`starter/generator motor to provide electrical energy to operate the traction motor
`
`and recharge the battery. Id. at 37:35-39. When the internal combustion engine
`
`can operate in its fuel efficient range, the hybrid vehicle operates in mode IV, with
`
`the engine providing torque to propel the vehicle. Id. at 37:45-47, 38:55-65. If the
`
`vehicle requires additional torque, such as for acceleration or hill-climbing, the
`
`5
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`vehicle may enter mode V, where the traction motor provides additional torque to
`
`propel the vehicle beyond that provided by engine 40. Id. at 38:4-11.
`
`B. Claim Construction
`Ford construes two claims: “road load,” and “setpoint.” Pet. at 5-7. At this
`
`stage, Paice addresses only Ford’s construction of “setpoint.” Paice also proposes
`
`a construction of “monitor[s] patterns of vehicle operation over time,” because
`
`Ford’s analysis demonstrates that it interprets the phrase in an unreasonably broad
`
`manner.
`
`In IPR proceedings, the Board applies the “broadest reasonable
`
`interpretation” standard, which mandates that “[a] claim in an unexpired patent
`
`shall be given its broadest reasonable construction in light of the specification of
`
`the patent in which it appears.” 37 C.F.R. § 42.100(b); see also In re Cuozzo
`
`Speed Tech., LLC, 778 F.3d 1271, 1281 (Fed. Cir. 2015), reh’g denied, __ F.3d __
`
`(Fed. Cir. Jul. 8, 2015). The Federal Circuit has recognized, however, that that
`
`standard requires that the claims must be read in light of the specification as it
`
`would be interpreted by one of ordinary skill in the art. In re Suitco Surface, Inc.,
`
`603 F.3d 1255, 1260 (Fed. Cir. 2010). In Microsoft Corp. v. Proxyconn, Inc., the
`
`Federal Circuit explained that the broadest reasonable interpretation does not mean
`
`that “the Board may construe the claims during IPR so broadly that its
`
`constructions are unreasonable under general claim constructions principles,” and
`
`6
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`that the construction must not be “divorced from the specification and the record
`
`evidence” and inconsistent with “the one that those skilled in the art would reach.”
`
`No. 2014-1542, 2015 WL 3747257, at *3 (Fed. Cir. June 16, 2015) (quoting In re
`
`NTP, Inc., 654 F.3d 1279, 1288 (Fed. Cir. 2011); In re Cortright, 165 F.3d 1353,
`
`1358 (Fed. Cir. 1999)). “A construction that is ‘unreasonably broad’ and which
`
`does not ‘reasonably reflect the plain language and disclosure’ will not pass
`
`muster.” Microsoft, No. 2014-1542, 2015 WL 3747257, at *3 (quoting Suitco, 603
`
`F.3d at 1260).
`
`
`
`“setpoint (SP)”
`
`Paice respectfully requests that the Board construe “setpoint” as “a definite,
`
`but potentially variable value at which a transition between operating modes may
`
`occur,” 1 and reject Ford’s proposed construction—a “predetermined torque
`
`
`
`1 As an initial matter, Paice notes that the U.S. District Court for the Eastern
`
`District of Texas and the U.S. District Court for the District of Maryland both have
`
`construed the term “setpoint (SP)” to mean “a definite, but potentially variable
`
`value at which a transition between operating modes may occur.” See Paice LLC
`
`v. Toyota Motor Corp., Case No. 2:07-cv-180 (E.D. Tex. Dec. 5, 2008) (Ex. 1313
`
`at 204); Paice LLC v. Hyundai Motor Corp., Case No. 2:12-cv-499 (D. Md. Jul.
`
`7
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`value”—because it is unreasonably broad and does not reasonably reflect the
`
`disclosure of the ’347 patent.
`
` The claims and the specification of the ’347 patent make clear that a
`
`“setpoint” is not simply a numerical value divorced from the context of the rest of
`
`the control system. Rather, “setpoint” serves the crucial function of marking the
`
`transition from one claimed mode to another, and in particular, the transition from
`
`propelling the vehicle with the motor to propelling the vehicle with the engine.
`
`See, e.g., Ex. 1301 at 40:50-55.
`
`First, the claims are clear that a “setpoint” marks a point at which the vehicle
`
`may transition between two modes. For example, in claims 1, 7, 23, and 28, the
`
`“setpoint” marks the transition between a mode in which only the motor propels
`
`the vehicle, to modes in which the engine also can be used to propel the vehicle or
`
`charge the battery. See id. at claims 1, 7, 23, 28. Dependent claim 3 similarly
`
`requires that the “controller monitors the road load (RL) on the vehicle over time,
`
`and controls transition between propulsion of said vehicle by said motor(s) to
`
`
`
`24, 2014) (Ex. 1314 at 103) (“The Plaintiffs’ proposed construction of ‘setpoint’ as
`
`‘a definite, but potentially variable value at which a transition between operating
`
`modes may occur,’ is consistent with the language of the claims and the intrinsic
`
`evidence.”).
`
`8
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`propulsion by said engine responsive to RL reaching SP.” Id. at claim 3 (emphasis
`
`added). Claim 25 recites similar language.
`
`Additionally, the specification unambiguously defines “setpoint” as
`
`synonymous with a “transition point” between modes:
`
`[I]n the example of the inventive control strategy discussed above, it is
`repeatedly stated that the transition from low-speed operation to
`highway cruising occurs when road load is equal to 30% of MTO. This
`setpoint, referred to in the appended claims as “SP”, and sometimes
`hereinafter as the transition point (i.e., between operation in modes I
`and IV) is obviously arbitrary and can vary substantially, e.g., between
`30-50% of MTO, within the scope of the invention.
`
`Id. at 40:47-55 (emphasis added); see also id. at 40:22-31 (“[T]he microprocessor
`
`tests sensed and calculated values for system variables, such as the vehicle’s
`
`instantaneous torque requirement, i.e., the ‘road load’ RL . . . against setpoints, and
`
`uses the results of the comparisons to control the mode of vehicle operation.”),
`
`41:2-4 (“For example, in response to recognition of a regular pattern as above, the
`
`transition point might be adjusted to 60% of MTO; . . . .”), 41:10-14 (“It is also
`
`within the scope of the invention to make the setpoint SP to which the road load is
`
`compared to control the transition from mode I to mode IV somewhat ‘fuzzy’, [sic]
`
`so that SP may vary from one comparison of road load to MTO to the next
`
`depending on other variables.”), 41:66-42:2 (“FIG. 9 thus shows the main decision
`
`points of the control program run by the microprocessor, with the transition point
`
`9
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`between mode I, low-speed operation, and mode IV highway cruising, set at a road
`
`load equal to 30% of MTO.”), 44:32-39 (“Further, as noted above the transition
`
`points between modes I, IV, and V in particular may vary in accordance with the
`
`operator’s commands, . . . .”).
`
`The “setpoint” marks the amount of “road load” at which the claimed
`
`control system actively changes the vehicle from one mode to another (e.g. from
`
`motor propulsion to engine propulsion). The challenged patent recognizes the
`
`significant efficiencies to be gained by transitioning between motor propulsion to
`
`engine propulsion in response to “road load.” See, e.g., id. at 13:39-46 (“By
`
`comparison . . . the vehicle’s operating mode—that is, the selection of the source
`
`of torque needed to propel the vehicle—is determined based on the amount of
`
`torque actually required. In this way the proper combination of engine, traction
`
`motor, and starting motor is always available. This apparently simple point has
`
`evidently been missed entirely by the art.”), 39:47-65 (noting that prior art
`
`references using vehicle speed to transition between modes “inherently operate the
`
`engine under less efficient conditions”).
`
`Ford’s construction of “setpoint” as a “predetermined torque value,” see Pet.
`
`at 6, is incorrect and unreasonably broad because it fails to recognize that
`
`“setpoint” represents a point at which a transition between different operating
`
`modes may occur. The broadening construction is “divorced from the
`
`10
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`specification and the record evidence” and inconsistent with “the one that those
`
`skilled in the art would reach.” See Microsoft, No. 2014-1542, 2015 WL 3747257,
`
`at *3 (quoting NTP, 654 F.3d at 1288; Cortright, 165 F.3d at 1358).
`
`In essence, Ford asks the Board to construe the claims as broadly covering
`
`hybrid vehicle systems where transitions between modes never occur—a clear
`
`error that is fundamentally contrary to the specification of the ’347 patent. See
`
`Fuji Photo Film Co. v. Int'l Trade Comm’n, 386 F.3d 1095, 1098 (Fed. Cir. 2004)
`
`(claim should not be given overly broad construction that is inconsistent with how
`
`claim term is used in the specification). The Board’s “broadest reasonable
`
`interpretation” must be reasonable, and must be in conformity with the invention
`
`as described in the specification. In re Vaidyanathan, 381 Fed. Appx. 985, 995-96
`
`(Fed. Cir. 2010). Because Ford’s proposed construction fails to consider the
`
`entirety of the claims and specification, it is improper and should be rejected. See,
`
`e.g., In re Abbott Diabetes Care Inc., 696 F.3d 1142, 1149 (Fed. Cir. 2012)
`
`(holding that Board’s construction of “electrochemical sensor” was “unreasonable
`
`and inconsistent with the language of the claims and the specification”).
`
`Ford’s construction is also incorrect because it impermissibly limits
`
`“setpoint” to a torque value while the specification makes clear that a setpoint is
`
`not limited to a torque value and in fact could also be a measure of the state of
`
`charge of the battery.
`
`11
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`[T]he microprocessor tests sensed and calculated values for system
`variables, such as the vehicle's instantaneous torque requirement, i.e.,
`the “road load” RL, the engine's instantaneous torque output ITO, both
`being expressed as a percentage of the engine's maximum torque output
`MTO, and the state of charge of the battery bank BSC, expressed as a
`percentage of its full charge, against setpoints, and uses the results of
`the comparisons to control the mode of vehicle operation.
`
`Ex. 1301 at 40:22-31 (emphasis added). Ford’s construction ignores the language
`
`regarding state of charge of the battery, and, in this regard, impermissibly narrows
`
`the broadest reasonable interpretation of setpoint as used in the specification.
`
`Therefore, Paice respectfully requests that the Board reject Ford’s
`
`construction and adopt Paice’s construction of “setpoint” to make clear that it is a
`
`value “at which a transition between operating modes may occur.”
`
`
`
`“monitor patterns of vehicle operation over time”
`
`The Board should construe “monitor patterns of vehicle operation over time”
`
`to mean “track and record the driver’s repeated driving operations over time.”
`
`Dependent claims 2 and 24 of the ’347 patent require that the controller
`
`“monitor[s] patterns of vehicle operation over time and var[ies] said setpoint SP
`
`accordingly.” Ford and Dr. Davis misapply this claim language to Ibaraki ’882, as
`
`discussed below. In order to clarify the scope of this claim in light of this
`
`misapplication, and for the purposes of this IPR only, Paice respectfully requests
`
`that the Board give the phrase “monitor patterns of vehicle operation over time” its
`
`12
`
`PUBLIC - REDACTED VERSION
`
`
`
`Patent No. 7,104,347
`Patent Owner’s Preliminary Response
`
`
`
`
`Case IPR2015-00795
`Attorney Docket No: 36351-0011IP5
`
`broadest reasonable interpretation, which is: “track and record the driver’s repeated
`
`driving operations over time.”
`
`The specification makes clear that the claimed control system can be altered
`
`based on “patterns of vehicle operation over time,” which refers to how the
`
`operator actually drives the car over some period of time, i.e., changing variables
`
`according to how the driver actually uses the car on a day to day basis. See Ex.
`
`1301 at 35:47-58 (“Examples of this practice—amounting in many circumstances
`
`to modifying certain specific values depending on other data items not discussed in
`
`detail, or by monitoring the vehicle’s actual usage patterns over time—are given
`
`below.” (emphasis added)). For example, the specification describes an
`
`embodiment of this claim where the setpoint is adjusted based on the driver’s daily
`
`commute from home to work. See id. at 40:56-41:9. After analyzing the driver’s
`
`“daily patterns,” such as “driv[ing] the same route fr