`___________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`___________
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`COALITION FOR AFFORDABLE DRUGS V LLC;
`HAYMAN CREDES MASTER FUND, L.P.;
`HAYMAN ORANGE FUND SPC – PORTFOLIO A;
`HAYMAN CAPITAL MASTER FUND, L.P.;
`HAYMAN CAPITAL MANAGEMENT, L.P.;
`HAYMAN OFFSHORE MANAGEMENT, INC.;
`HAYMAN INVESTMENTS, LLC;
`NXN PARTNERS, LLC;
`IP NAVIGATION GROUP, LLC;
`J KYLE BASS; and ERICH SPANGENBERG,
`Petitioner,
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`v.
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`BIOGEN MA INC.,
`Patent Owner.
`
`____________________________________________
`
`Case: IPR2015-01993
`U.S. Patent No. 8,399,514
`____________________________________________
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`BIOGEN’S MOTION TO SEAL EXHIBITS 2016A AND 2017A
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`I.
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`II.
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`Case No. IPR2015-01993
`Patent 8,399,514
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`TABLE OF CONTENTS
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`Introduction and Statement of Relief Requested ............................................. 1
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`Standard for Granting a Motion to Seal .......................................................... 2
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`III. Good Cause Exists to Seal Exhibit 2016A ...................................................... 3
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`A.
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`B.
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`C.
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`The Portions of the License Agreement Cited and Relied On by
`Biogen Are in the Public Record .......................................................... 3
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`The Portions of the License Agreement Redacted in Exhibit
`2016 Contain Confidential Information Not Relied On by
`Biogen.................................................................................................... 4
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`Certification Regarding the Public Availability of the
`Confidential Information Redacted from Exhibit 2016 ........................ 6
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`IV. Good Cause Exists to Seal Exhibit 2017A ...................................................... 6
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`A.
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`B.
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`C.
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`The Portions of the Stock Purchase Agreement Cited and
`Relied on by Biogen Are in the Public Record ..................................... 6
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`The Portions of the Stock Purchase Agreement Redacted in
`Exhibit 2017 Contain Confidential Information Not Relied On
`by Biogen .............................................................................................. 7
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`Certification Regarding Public Availability of Confidential
`Information Redacted from Exhibit 2017 ............................................. 9
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`V.
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`Certification Regarding Scope of the Proposed Protective Order ................. 10
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`VI. Conclusion ..................................................................................................... 10
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`Case No. IPR2015-01993
`Patent 8,399,514
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`TABLE OF AUTHORITIES
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` Page(s)
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`Cases
`Blackberry Corp. v. WI-LAN USA Inc.,
`IPR2013-00126, Paper 30 (PTAB Nov. 5, 2013) ............................................. 4, 7
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`Garmin Int’l Inc. v. Cuozzo Speed Techs. LLC,
`IPR2012-00001, Paper 34 (PTAB Mar. 14, 2013) ............................................... 2
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`Regulations
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`37 C.F.R. § 42.14 ....................................................................................................... 1
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`37 C.F.R. § 42.54 ................................................................................................... 1, 2
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`Office Patent Trial Practice Guide, 77 Fed. Reg. 48,756, 48,760
`(Aug. 14, 2012) ..................................................................................................... 2
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`
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`ii
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`Case No. IPR2015-01993
`Patent 8,399,514
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`I.
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`Introduction and Statement of Relief Requested
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`Pursuant to 37 C.F.R. §§ 42.14 and 42.54, Patent Owner Biogen MA Inc.
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`(“Biogen”) moves to seal Biogen Exhibits 2016A and 2017A, filed concurrently
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`herewith, and for entry of the Board’s default protective order, also filed herewith
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`as Exhibit 2093. Exhibit 2016A is an unredacted copy of the September 25, 2003
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`license agreement entered into between Fumapharm AG and Biogen, Inc. for the
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`purpose of developing a DMF-only product to treat multiple sclerosis and
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`psoriasis. (Ex. 2016A, “License Agreement.”) Exhibit 2017A is an unredacted
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`copy of the May 26, 2006 stock purchase agreement through which Biogen Idec
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`MA Inc. purchased 100% of the total share capital of Fumapharm AG. (Ex.
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`2017A, “Stock Purchase Agreement.”) To maintain a complete and understandable
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`public record of this proceeding, redacted versions of Exhibits 2016A and 2017A
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`are also being filed concurrently herewith as Exhibits 2016 and 2017, respectively.
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`Because the relevant portions of these documents cited in Biogen’s
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`Opposition to the Petition are being made of public record, and the portions
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`redacted in Exhibits 2016 and 2017 contain confidential information not cited or
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`otherwise relied on by Biogen, the public’s interest in accessing the entirety of
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`Exhibits 2016A and 2017A is minimal, if any. Further, Biogen certifies that it has
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`conferred in good faith with Petitioner’s counsel and that the parties agree on the
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`scope of the proposed Protective Order (Ex. 2093), which is the Board’s default
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`Patent 8,399,514
`protective order. Indeed, Petitioner’s counsel has already signed the Standard
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`Acknowledgment for Access to Protective Order Material. (Ex. 2084; Ex. 2094.)
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`Finally, Biogen also certifies that the confidential information redacted from
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`Exhibits 2016 and 2017 has not previously been made publicly available. For
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`these reasons, further developed below, good cause exists to seal Exhibits 2016A
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`and 2017A and to enter the default protective order in this proceeding.
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`II.
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`Standard for Granting a Motion to Seal
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`A motion to seal may be granted for good cause. 37 C.F.R. § 42.54. In
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`determining whether good cause exists, the Board must “strike a balance between
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`the public’s interest in maintaining a complete and understandable file history and
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`the parties’ interest in protecting truly sensitive information.” Garmin Int’l, Inc. v.
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`Cuozzo Speed Techs. LLC, IPR2012-00001, Paper 34, at 2 (PTAB Mar. 14, 2013)
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`(quoting Office Patent Trial Practice Guide, 77 Fed. Reg. 48,756, 48,760 (Aug.
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`14, 2012)). Only confidential information may be sealed, and the Board may
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`require the movant to certify that no information sought to be sealed is publicly
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`available. Id. at 2, 5. A motion to seal must include a proposed protective order and
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`certify that the moving party has conferred in good faith with the opposing party
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`regarding the scope of the proposed protective order. Id. at 3 (citing 37 C.F.R.
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`§ 42.54). As explained below, good cause exists here to seal Exhibits 2016A and
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`2017A.
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`III. Good Cause Exists to Seal Exhibit 2016A
`A. The Portions of the License Agreement Cited and Relied On by
`Biogen Are in the Public Record
`The relevant portions of the License Agreement (Ex. 2016 (redacted), Ex.
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`2016A (unredacted)) cited and relied on in Biogen’s Opposition to the Petition are
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`being made of public record concurrently herewith. Biogen’s Opposition cites the
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`License Agreement to show that U.S. Patent No. 7,320,999 (“Joshi ’999”) and the
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`invention of claims 1-16 and 20 of U.S. Patent No. 8,399,514 (“the ’514 patent”)
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`were commonly owned when Dr. Gilmore O’Neill conceived of the invention by
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`February 2004. (Opp’n at 19-21.) In particular, Biogen’s Opposition cites pages
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`11, 14, and 15 of the License Agreement, which define the terms “Collaboration
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`Patents,” “Collaboration Technology,” “Improvements,” “Inventions,” and
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`“Licensed Products.” (See id. at 21 (citing Ex. 2016 at 11, 14, 15).) These
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`definitions have not been redacted from publicly accessible Exhibit 2016. (Ex.
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`2016 at 11, 14, 15.) Biogen’s Opposition further cites pages 47, 51, and 58 and
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`clause 46.1(c) of the License Agreement. (Opp’n at 20 (citing Ex. 2016 at 47, 51,
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`clause 46.1(c), 58).) Clause 46.1(c) states that all Collaboration Technology shall
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`be solely owned by Fumapharm AG and that Biogen, Inc. assigns to Fumapharm
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`AG all of its and its Affiliates rights in and to such Inventions and Improvements
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`relating to the Collaboration Technology. (Ex. 2016 at 51, clause 46.1(c).) Like the
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`relevant definitions, the material on pages 47, 51, 58, and clause 46.1(c) relied on
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`by Biogen has not been redacted from publicly accessible Exhibit 2016.
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`Because the relevant portions of the License Agreement cited in Biogen’s
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`Opposition are publicly disclosed in Exhibit 2016 and discussed in Biogen’s
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`Opposition, sealing Exhibit 2016A will not preclude a complete and
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`understandable public record of this proceeding, and the public’s interest in
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`accessing the entirety of Exhibit 2016A is minimal. See Blackberry Corp. v. WI-
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`LAN USA Inc., IPR2013-00126, Paper 30, at 4-5 (PTAB Nov. 5, 2013).
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`B.
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`The Portions of the License Agreement Redacted in Exhibit 2016
`Contain Confidential Information Not Relied On by Biogen
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`Unlike the portions of the License Agreement relied on by Biogen, the
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`portions redacted in Exhibit 2016 contain confidential commercial and financial
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`information that is not cited or relied on by Biogen and that is of minimal
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`relevance to this proceeding.
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`Clauses 4-42 of the License Agreement describe the terms and conditions of
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`Fumapharm AG’s and Biogen, Inc.’s agreement to develop, register, produce, and
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`market a DMF-only therapy for psoriasis, MS, and other indications. (Ex. 2016A
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`at 18-46.) Although Biogen publicly disclosed the existence of this Agreement in a
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`Form 10-K filed March 10, 2004, it did not disclose the confidential terms and
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`conditions specified in these clauses. For example, although Biogen’s Form 10-K
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`states that Biogen, Inc. committed to pay additional amounts upon achievement of
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`certain future research milestones and first and second indication development
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`milestones and that Biogen, Inc. could be required to pay up to 25 million Swiss
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`francs plus royalties over the life of the agreement, it did not disclose any specific
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`details regarding the number, nature, or timing of these milestones or the amounts
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`to be paid upon completion of each milestone. (Ex. 2088 at 55-56.) These details,
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`which remain confidential, have been redacted from publicly accessible Exhibit
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`2016. (Ex. 2016 at 38.) Similarly, certain initial fees were to be paid under the
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`License Agreement. (Ex. 2016A at 34, 38-39.) The amount of these fees was not
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`publicly disclosed in Biogen’s Form 10-K and remains confidential, and therefore
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`has been redacted in publicly accessible Exhibit 2016. (Ex. 2088 at 13, 55-56.)
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`The remaining clauses redacted in Exhibit 2016 address details such as the
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`production, registration, and marketing of FAG-201, payment
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`terms and
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`conditions, warranties, insurance, and management of the License Agreement,
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`none of which have been publicly disclosed and all of which remain confidential.
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`These portions of the License Agreement are not cited or otherwise relied on in
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`Biogen’s Opposition and have little, if any, relevance to this proceeding.
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`As explained above, all relevant portions of the License Agreement cited
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`and relied on in Biogen’s Opposition are being made of public record concurrently
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`herewith so as to maintain a complete and understandable record. Accordingly,
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`whereas the public interest in accessing the entirety of Exhibit 2016A is minimal,
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`Biogen would be substantially prejudiced by the public dissemination of the
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`confidential information contained in the License Agreement that has been
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`redacted from publicly accessible Exhibit 2016. Good cause therefore exists to
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`seal Exhibit 2016A.
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`C. Certification Regarding the Public Availability of the Confidential
`Information Redacted from Exhibit 2016
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`Biogen certifies that none of the confidential information redacted in
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`Exhibit 2016 has previously been made publicly available and that Biogen has
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`taken reasonable steps to prevent the public disclosure of this information.
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`IV. Good Cause Exists to Seal Exhibit 2017A
`A. The Portions of the Stock Purchase Agreement Cited and Relied
`on by Biogen Are in the Public Record
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`As with the License Agreement, the relevant portions of the Stock Purchase
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`Agreement (Ex. 2017 (redacted), Ex. 2017A (unredacted)) cited and relied on in
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`Biogen’s Opposition are in the public record. Biogen’s Opposition cites the Stock
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`Purchase Agreement to show that both Joshi ’999 and the subject matter of claims
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`1-20 of the ’514 patent were owned by or subject to an obligation of assignment to
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`Biogen Idec MA Inc. on February 8, 2007, when the invention claimed in the ’514
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`patent was constructively reduced to practice. (Opp’n at 21-24.) Specifically,
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`Biogen’s Opposition states that on May 26, 2006, Biogen Idec MA Inc. purchased
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`100% of the total share capital of Fumapharm AG and that through this
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`acquisition, Biogen Idec MA Inc. became the owner of Joshi ’999 and all
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`collaboration technology that already existed, including at least the invention of
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`claims 1-16 and 20 of the ’514 patent. (Id. at 24-25 (citing Ex. 2017 at 2).)
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`Biogen’s Opposition cites page 2 of the Stock Purchase Agreement, which states
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`that based on preliminary negotiations between the shareholders of Fumapharm
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`AG and Biogen Idec MA Inc., the parties agreed that Biogen Idec MA Inc. will
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`purchase 100% of the share capital of Fumapharm AG. (Ex. 2017 at 2.) The relied-
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`upon portion of page 2 of the Stock Purchase Agreement has not been redacted
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`from publicly accessible Exhibit 2017. (Ex. 2017 at 2.)
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`Thus, because the relevant portions of the Stock Purchase Agreement cited
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`and relied on by Biogen are publicly disclosed in Exhibit 2017 and are discussed
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`and summarized in Biogen’s Opposition, sealing Exhibit 2017A will not preclude
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`a complete and understandable public record of this proceeding, and the public’s
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`interest in accessing the entirety of Exhibit 2017A is minimal. See Blackberry
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`Corp., IPR2013-00126, Paper 30 at 4-5.
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`B.
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`The Portions of the Stock Purchase Agreement Redacted in
`Exhibit 2017 Contain Confidential Information Not Relied On by
`Biogen
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`Unlike the portions of the Stock Purchase Agreement relied on by Biogen,
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`the portions redacted in Exhibit 2017 contain confidential commercial and
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`financial information that is not cited or otherwise relied on in Biogen’s
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`Opposition and that is of little, if any, relevance to this proceeding. For example,
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`the Stock Purchase Agreement contains confidential commercial and financial
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`information, including a schedule of milestone payments to be made by Biogen
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`Idec MA Inc. to the shareholders of Fumapharm AG based on sales of Fumapharm
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`AG Products. (Ex. 2017A at 4-10.) Although a Form 10-Q filed by Biogen on
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`November 9, 2006, discloses that Biogen Idec MA Inc. paid $220 million to
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`acquire Fumapharm AG and agreed to pay up to an additional $300 million in the
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`event that annual and cumulative sales targets were achieved, it does not provide
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`any specific details regarding these sales targets or the corresponding required
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`payments. (Ex. 2089 at 14; see Ex. 2091 at 79, 159.) These payment details and
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`other financial information such as bank account numbers—which are not cited by
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`Biogen and have little, if any, relevance to this proceeding—remain confidential
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`and therefore have been redacted from Exhibit 2017. (Ex. 2017 at 11-30.) Indeed,
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`in undertaking the Stock Purchase Agreement, Biogen Idec MA Inc. agreed “to
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`keep the present AGREEMENT and its subject matter, in particular the purchase
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`price, confidential.” (Ex. 2017 at 32, clause 57.1.) Other portions of the Stock
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`Purchase Agreement redacted in Exhibit 2017 disclose additional confidential
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`information such as the class, ownership, and par value of the shares of
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`Fumapharm AG acquired by Biogen Idec MA Inc., the identities of all of
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`Patent 8,399,514
`Fumapharm AG’s shareholders, the closing conditions, various representations and
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`warranties, and additional financial information and disclosures. (Compare Ex.
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`2017, with Ex. 2017A.) This information has not been publicly disclosed and
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`therefore remains confidential, and Biogen does not cite or otherwise rely on this
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`information in its Opposition.
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`In sum, the portions of the Stock Purchase Agreement redacted in Exhibit
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`2017 are confidential, are not cited or otherwise relied on in Biogen’s Opposition,
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`and have little, if any, relevance to the issues in this proceeding. And, as explained
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`above, all relevant portions of the Stock Purchase Agreement cited and relied on in
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`Biogen’s Opposition are being made of public record concurrently herewith.
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`Accordingly, because the public interest in accessing the entirety of Exhibit
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`2017A is minimal, and Biogen would be substantially prejudiced by the public
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`dissemination of the confidential information contained in the Stock Purchase
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`Agreement, good cause exists to seal Exhibit 2017A.
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`C. Certification Regarding Public Availability of Confidential
`Information Redacted from Exhibit 2017
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`Biogen certifies that none of the confidential information redacted from
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`Exhibit 2017 has previously been made publicly available and that Biogen has
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`taken reasonable steps to prevent the public disclosure of this information.
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`Case No. IPR2015-01993
`Patent 8,399,514
`V. Certification Regarding Scope of the Proposed Protective Order
`Biogen certifies that it has conferred in good faith with counsel for Petitioner
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`and that the parties agree on the scope of the proposed Protective Order (Ex.
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`2093), which is the Board’s default protective order. In addition, counsel for
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`Petitioner has signed the Standard Acknowledgement for Access to Protective
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`Order Material. (Ex. 2084 at 5; Ex. 2094 at 6.)
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`VI. Conclusion
`For these reasons, Biogen respectfully requests that the Board grant
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`Biogen’s motion to seal Exhibits 2016A and 2017A and enter the default
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`protective order.
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`Dated: June 22, 2016
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`
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`Respectfully submitted,
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`By: /Michael J. Flibbert /
`Michael J. Flibbert, Reg. No. 33,234
`Erin M. Sommers, Reg. No. 60,974
`FINNEGAN, HENDERSON, FARABOW,
`GARRETT & DUNNER, LLP
`901 New York Avenue, NW
`Washington, DC 20001-4413
`(202) 408-4000
`
`Counsel for Patent Owner in
`IPR2015-01993
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`10
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`CERTIFICATE OF SERVICE
`The undersigned certifies that a copy of the foregoing BIOGEN’S
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`MOTION TO SEAL EXHIBITS 2016A AND 2017A was served electronically
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`via e-mail on June 22, 2016, in its entirety on the following:
`
`
`James T. Carmichael
`Carol A. Spiegel
`Carmichael IP, PLLC
`8000 Towers Crescent Drive, 13th Floor
`Tysons Corner, VA 22182
`jim@carmichaelip.com
`carol@carmichaelip.com
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`Petitioner has agreed to electronic service.
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`
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`Dated: June 22, 2016
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`By: /Erin M. Sommers/
`Erin M. Sommers (Reg. No. 60,974)
`FINNEGAN, HENDERSON, FARABOW,
`GARRETT & DUNNER, LLP