`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`TYLER DIVISION
`
`
`
`VirnetX Inc. and Science Applications
`International Corporation,
`
`
`
`
`
`
`
`Civil Action No. 6:10-cv-00417-LED
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`JURY TRIAL DEMANDED
`
`
`v.
`
`Cisco Systems, Inc., Apple Inc.,
`NEC Corporation, and NEC Corporation of
`America,
`
`
`
`
`
`
`Plaintiffs,
`
`Defendants.
`
`
`
`DEFENDANTS’ MOTION FOR RECONSIDERATION OF THE
`CONSTRUCTION OF THE TERM “SECURE COMMUNICATION LINK”
`
`VIRNETX EXHIBIT 2(cid:19)(cid:20)(cid:22)
`Apple v. VirnetX
`Trial IPR201(cid:24)(cid:16)(cid:19)(cid:19)(cid:27)(cid:25)(cid:28)
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`Page 1 of 7
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`Case 6:10-cv-00417-LED Document 366 Filed 06/21/12 Page 2 of 7 PageID #: 10837
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`INTRODUCTION
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`Defendants Cisco Systems, Inc., Apple, Inc., NEC Corporation, and NEC Corporation of
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`America (collectively, “Defendants”) respectfully move for reconsideration of the Court’s
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`construction of the claim term “secure communication link.” In the April 25, 2012 Claim
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`Construction Order,
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`this Court construed “secure communication
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`link” as “a direct
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`communication link that provides data security.” D.I. 266, at 13. But just as VirnetX’s
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`statements in earlier reexamination proceedings required this Court to revisit certain claim
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`constructions reached in the Microsoft litigation, reconsideration of this Court’s construction of
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`“secure communication link” is now warranted because VirnetX has once again made narrowing
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`arguments in the United States Patent and Trademark Office (“PTO”).
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`Specifically, in reexamination proceedings following the Markman hearing in this action,
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`VirnetX unequivocally disclaimed “secure communication links” that are not encrypted. In the
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`absence of that intrinsic evidence, however, this Court adopted a construction that does not
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`necessarily require encryption. D.I. 266, at 13 (Noting that “encryption is not the only means of
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`addressing data security.”). To ensure that consistent constructions are applied in the PTO and
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`this Court, Defendants asked VirnetX to stipulate to a construction of “secure communication
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`link” that requires encryption. But VirnetX has failed to respond. The time has come for
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`VirnetX to stop seeking to obtain the benefit of narrow constructions in the PTO that conflict
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`with the Court’s constructions in this litigation. Consistent with VirnetX’s PTO admissions, the
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`phrase “secure communication link” should be construed to mean “a direct communication link
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`that provides data security through encryption.”
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`FACTUAL BACKGROUND
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`
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`The claim term “secure communication link” appears in the independent claims of U.S.
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`Patent Nos. 7,418,504 (“the ‘504 patent”), 7,921,211 (“the ‘211 patent”), and 6,839,759 (“the
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`1
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`Page 2 of 7
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`Case 6:10-cv-00417-LED Document 366 Filed 06/21/12 Page 3 of 7 PageID #: 10838
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`‘759 patent”). In the April 25, 2012 Claim Construction Order, because dependent claim 28 of
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`both the ‘504 and ‘211 patents covers “[t]he system of claim 1, wherein the secure
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`communication link uses encryption,” this Court applied the doctrine of claim differentiation and
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`ruled that the “secure communication link” of claim 1 could provide security without necessarily
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`using encryption. Id. at 13. Accordingly the Court construed “secure communication link” as
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`“a direct communication link that provides data security.” Id.
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`After the January 5, 2012 Markman hearing, however, VirnetX unequivocally disclaimed
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`“secure communication links” that do not require encryption. In a March 29, 2012 response to
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`an office action regarding claim 1 of the ‘504 patent, VirnetX contended that the prior art “does
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`not disclose establishing a secure communication link between the originating and terminating
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`devices because [the prior art] does not disclose that the communication between these two
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`devices is encrypted.” See Ex. A, File History of U.S. Patent No. 7,418,504, Patent Owners
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`Response to Office Action at 25 (March 29, 2012). VirnetX argued that “one of ordinary skill
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`in the art would have understood a secure communication link to require encryption.’” Id.
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`VirnetX also noted to the PTO that “in the ongoing litigation involving the ‘504 patent . . . both
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`Patent Owner and the Requester agree that a secure communication link requires encryption.”
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`Id. And VirnetX repeated those same statements in an April 18, 2012 response to an office
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`action regarding the ‘211 patent. See Ex. B, File History of U.S. Patent No. 7,921,211, Patent
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`Owners Response to Office Action at 28 (April 18, 2012).
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`ARGUMENT
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`
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`The claim language “secure communication link” should be construed consistent with
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`VirnetX’s repeated and unambiguous disclaimers in PTO reexamination proceedings. Those
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`statements disavowed secure communication links that are not encrypted and therefore forfeited
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`2
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`Page 3 of 7
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`Case 6:10-cv-00417-LED Document 366 Filed 06/21/12 Page 4 of 7 PageID #: 10839
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`communication links that provide security in other ways. See Am. Piledriving Equip. v.
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`Geoquip, Inc., 637 F.3d 1324, 1336 (Fed. Cir. 2011). Moreover, the claim differentiation
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`principles underlying this Court’s original construction do not apply where a patent owner argues
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`that the scope of an independent claim is the same as that of a dependent claim. ERBE
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`Elektromedizin gmbH v. Canady Tech. LLC., 97 USPQ2d 1048, 1054-55 (Fed. Cir. 2010).
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`VirnetX should not be permitted to benefit from a narrow claim interpretation for the purposes of
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`prosecution and a broader claim interpretation for the purposes of litigation. See Am.
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`Piledriving, 637 F.3d at 1336. The construction of “secure communication link” should
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`therefore be modified to specify that a “secure communication link” is “a direct communication
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`link that provides data security through encryption.”
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`
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`VirnetX has ignored Defendants’ invitation to join in this motion. On June 4, 2012,
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`Defendants emailed VirnetX stating that they planned to move for reconsideration of the
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`construction of “secure communication link” in light of VirnetX’s statements to the PTO, and
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`asked whether VirnetX would join in the motion. Ex. C, June 4, 2012 email from Karim
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`Oussayef to Jason Cassady. But after two weeks and repeated emails and phone calls, VirnetX
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`has refused even to respond to Defendants’ emails. Oussayef Decl. ¶¶ 5-6. VirnetX’s failure to
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`respond, let alone articulate a basis for opposing this motion, further demonstrates that VirnetX
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`is attempting to apply different claim interpretations in the PTO and this Court. Defendants’
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`motion for reconsideration of the construction of “secure communication link” should be granted
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`to prevent VirnetX from engaging in such tactics.
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`CONCLUSION
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`
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`For the foregoing reasons, Defendants respectfully requests that this Court grant
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`Defendants’ Motion For Reconsideration Of The Court’s Construction Order and construe
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`3
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`Page 4 of 7
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`Case 6:10-cv-00417-LED Document 366 Filed 06/21/12 Page 5 of 7 PageID #: 10840
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`“secure communication link” to mean “a direct communication link that provides data security
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`through encryption.”
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`Respectfully submitted,
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`
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`4
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`Dated: June 21, 2012
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`
`
`
`
`By: /s/ William J. McCabe
`William J. McCabe
`Telephone: 212-596-9018
`Facsimile: 646-728-2673
`William.McCabe@ropesgray.com
`
`Stuart W. Yothers
`Telephone: 212-596-9176
`Facsimile: 646-728-2957
`Stuart.Yothers@ropesgray.com
`ROPES &GRAY LLP
`1211 Avenue of the Americas
`New York, NY 10036
`
`
`
`Maxwell A. Fox
`Telephone: 81-3-6259-3508
`Facsimile: 81-3-6259-3501
`Maxwell.Fox@ropesgray.com
`ROPES &GRAY LLP
`Yusen Building 2F
`3-2, Marunouchi 2-chome
`Chiyoda-ku, Tokyo 100-0005 Japan
`
`
`R. Andrew Schwentker
`Telephone: 202-508-4717
`Facsimile: 202-383-9314
`Andrew.Schwentker@ropesgray.com
`ROPES &GRAY LLP
`700 12th Street, NW, Suite 900
`Washington, DC 20005
`
`Douglas R. McSwane, Jr.
`Texas State Bar No. 13861300
`dougmcswane@potterminton.com
`POTTER MINTON
`500 Plaza Tower
`110 N. College Ave. (75702)
`
`
`
`-
`
`LEAD
`
`By: /s/ Eric H. Findlay
`Eric H. Findlay
`efindlay@findlaycraft.com
`Texas Bar No. 00789886
`Brian Craft
`bcraft@findlaycraft.com
`Texas Bar No. 04972020
`FINDLAY CRAFT, LLP
`6760 Old Jacksonville Hwy
`Suite 101
`Tyler, TX 75703
`Telephone: (903) 534-1100
`Facsimile: (903) 534-1137
`
`OF COUNSEL:
`
`John M. Desmarais (pro hac vice)
`jdesmarais@desmaraisllp.com
`Michael P. Stadnick (pro hac vice)
`mstadnick@desmaraisllp.com
`DESMARAIS LLP
`230 Park Avenue
`New York, NY 10169
`Telephone: (212) 351-3400
`Facsimile: (212) 351-3401
`
`ATTORNEYS FOR DEFENDANT
`CISCO SYSTEMS, INC.
`
`By: /s/ Danny L. Williams
`Danny
`L. Williams
`ATTORNEY
`State Bar No. 21518050
`E-mail: danny@wmalaw.com
`Ruben S. Bains
`Texas Bar No. 24001678
`E-mail: rbains@wmalaw.com
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`Page 5 of 7
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`Case 6:10-cv-00417-LED Document 366 Filed 06/21/12 Page 6 of 7 PageID #: 10841
`
`Drew Kim
`Texas Bar No. 24007482
`E-mail: dkim@wmalaw.com
`Williams, Morgan & Amerson, P.C.
`10333 Richmond, Suite 1100
`Houston, Texas 77042
`Telephone: (713) 934-7000
`Facsimile: (713) 934-7011
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`ATTORNEYS FOR DEFENDANT
`APPLE INC.
`
`
`
`
`
`P.O. Box 359
`Tyler, Texas 75710
`Telephone: 903-597-8311
`Facsimile: 903-593-0846
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`ATTORNEYS FOR DEFENDANT,
`NEC CORPORATION AND NEC
`CORPORATION OF AMERICA
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`5
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`Page 6 of 7
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`Case 6:10-cv-00417-LED Document 366 Filed 06/21/12 Page 7 of 7 PageID #: 10842
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`CERTIFICATE OF SERVICE
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`The undersigned hereby certifies that counsel of record who are deemed to have
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`
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`consented to electronic service are being served with a copy of DEFENDANTS’ MOTION FOR
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`RECONSIDERATION OF THE CONSTRUCTION OF THE TERM
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`“SECURE
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`COMMUNICATION LINK,” via the Court’s CM/ECF system per Local Rule CV-5(a)(3) on
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`this the 21st day of June 2012.
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` /s/ Eric H. Findlay
`Eric H. Findlay
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`
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`CERTIFICATE OF CONFERENCE
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`The undersigned hereby certifies that on June 20, 2012 and June 21, 2012, counsel for
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`Defendant Cisco Systems, Inc. conferred via e-mail with counsel for Plaintiff VirnetX Inc.
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`regarding the relief sought in this motion. Plaintiff indicated through those emails that they
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`oppose this motion. In addition, on at least two occasions counsel for Cisco called to talk to
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`counsel for Plaintiff about the motion, but counsel has refused to call him back. Accordingly,
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`Cisco in good faith believes that Virnet X continues to be opposed to the relief sought in this
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`motion and that, therefore, Court intervention is required.
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`/s/ Eric H. Findlay
` Eric H. Findlay
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`6
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`Page 7 of 7