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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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`Page 1
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`-----------------------------------------x
`ARISTOCRAT TECHNOLOGIES, INC.
` Petitioner,
` v.
`IGT,
` Patent Owner.
`-----------------------------------------x
` Case IPR2016-00181
` Patent 6,375,570 B1
`
` 2:00 p.m.
` June 8, 2016
` TELECONFERENCE
`BEFORE:
`
` JOSIAH C. COCKS, Administrative
` Patent Judge
` MICHAEL W. KIM, Administrative Patent
` Judge
`
`---------------------------------------------------
` DIGITAL EVIDENCE GROUP
` 1730 M Street NW, Suite 812
` Washington, DC 20036
` (202) 232-0646
`
`www.DigitalEvidenceGroup.com
`
`Digital Evidence Group C'rt 2016
`
`202-232-0646
`
`IGT 2111
`Aristocrat Technologies v. IGT
`IPR2016-00307
`
`
`
`6/8/2016
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`Aristocrat Technologies, Inc. v. IGT
`
`Teleconference
`
`Page 2
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`-----------------------------------------x
`
`ARISTOCRAT TECHNOLOGIES, INC.
` Petitioner,
` v.
`
`IGT,
` Patent Owner.
`-----------------------------------------x
` Case IPR2016-00182
` Patent 6,375,570 B1
`
` 2:00 p.m.
` June 8, 2016
`
` TELECONFERENCE
`
`BEFORE:
`
` JOSIAH C. COCKS, Administrative
` Patent Judge
` MICHAEL W. KIM, Administrative Patent
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`Digital Evidence Group C'rt 2016
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`202-232-0646
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`6/8/2016
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`Teleconference
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`Page 3
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`-----------------------------------------x
`
`ARISTOCRAT TECHNOLOGIES, INC.
` Petitioner,
` v.
`
`IGT,
` Patent Owner.
`-----------------------------------------x
` Case IPR2016-00252
` Patent 7,303,469 B2
`
` 2:00 p.m.
` June 8, 2016
`
` TELECONFERENCE
`
`BEFORE:
`
` JOSIAH C. COCKS, Administrative
` Patent Judge
` MICHAEL W. KIM, Administrative Patent
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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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`A P P E A R A N C E S:
`
`Page 4
`
` STERNE, KESSLER, GOLDSTEIN & FOX, P.L.L.C.
` Attorneys for Patent Owner
` 1100 New York Avenue
` Washington, D.C. 20005
` BY: ROBERT STERNE, ESQ.
` - and -
` MICHELLE HOLOUBEK, ESQ.
` - AND -
` BARTLIT BECK PALENCHAR & SCOTT, LLP
` 54 West Hubbard Street
` Chicago, Illinois 60654
` BY: JASON PELTZ, ESQ.
`
` COVINGTON & BURLING
` Attorneys for Petitioner
` Two Seaport Lane
` Boston, Massachusetts 02210
` BY: ANDREA REISTER, ESQ.
` - and -
` JAY ALEXANDER, ESQ.
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` P R O C E E D I N G S
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`Page 5
`
` JUDGE COCKS: Hello, good
` afternoon. This is Judges Cocks and I
` have with me Judge Kim.
` Do we have counsel for the
` Petitioner on the call?
` MS. REISTER: Yes, we do, Your
` Honor, this is Andrea Reister and Jay
` Alexander from Covington on behalf of
` Aristocrat, the Petitioner.
` JUDGE COCKS: Thank you, Ms.
` Reister.
` Do we have counsel for the Patent
` Owner on the phone?
` MR. STERNE: Yes, Judge Cocks.
` This is Robert Sterne from Sterne
` Kessler.
` With me today is my partner,
` Michelle Holoubeck, who is also of record
` in these proceedings.
` We also have on the line, Your
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`Page 6
` Honor, in addition to the court reporter,
` Jason Peltz, P-e-l-t-z from Bartlit Beck,
` the litigation firm that is in the
` concurrent litigation in this matter.
` JUDGE COCKS: Okay, thank you,
` Mr. Sterne.
` So, this is an initial conference
` call requested by the Patent Owner for
` five separate proceedings.
` Let me briefly go through them, IPR
` 2016, 181, 182, 252, 305 and 307 involving
` three U.S. patents, 6,375,570, 6,702,675
` and 7,303,469; do I have that right?
` MR. STERNE: I believe you do,
` Your Honor. This is Robert Sterne
` speaking.
` JUDGE COCKS: All right, thank
` you Mr. Sterne.
` Now, Mr. Sterne, you had requested
` this call with respect to two particular
` items, so I'm going to have you, perhaps,
` fill us in.
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`Page 7
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` An indication of a motion to
` terminate, you are seeking a motion to
` file a motion to terminate and a motion to
` stay?
` So can you give us a little
` background, and before you do that, let me
` just say, Mr. Sterne, when a transcript of
` this call becomes available, would you go
` ahead and file it as an exhibit in all
` five of the proceedings?
` MR. STERNE: Absolutely, Your
` Honor, and we have Stephen Moore, the
` court reporter, on. We have talked
` about that already a couple of minutes
` earlier.
` We will have this done on an
` expedited basis for your review.
` JUDGE COCKS: Thank you very
` much. Now, could you go ahead and tell
` us a little bit more about the focus of
` this call?
` MR. STERNE: Yes, Your Honor.
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` We requested this call, as you
` appropriately stated, for two reasons.
` One, we sought permission to file a
` motion to stay these IPR proceedings, and
` second, we would like to bring to the
` Board's attention ITT's intent to seek
` permission to file a motion to terminate
` in the future.
` I would like to explain the motion
` to stay proposal and then a little bit
` about the permission to file a motion to
` terminate.
` Specifically, Your Honors, we seek
` permission to file a motion to stay
` because we believe it is in the best
` interest of Patent Owner, ITT, Petitioner,
` Aristocrat and the Board, to stay all of
` the IPRs based on two developments that
` have occurred since the Board's
` institution decisions in the 181, 182 and
` 252 IPRs.
` First, on May 3, 2016 the Federal
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` Circuit heard oral arguments in Husky
` Injection Molding System, Inc. versus
` Athena Automation. Your Honors, that's
` case number 15-1726.
` The singular issue Husky argued on
` appeal is whether the doctrine of assignor
` estoppel is applicable to IPR proceedings
` at the PTAB.
` To be complete, Athena cross
` appealed the Board's final decision
` denying an anticipation ground.
` Your Honors, as you are aware, ITT
` raised the issue of assignor estoppel in
` its Patent Owner preliminary response.
` In the institution decision the
` Board determined that the doctrine of
` assignor estoppel was not applicable to
` IPR proceedings.
` You did not specifically address
` whether assignor estoppel would apply here
` if it was applicable to IPR proceedings.
` However, the Federal Circuit's
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` decision in Husky versus Athena or the
` Supreme Court's decision in Cuozzo will
` likely impact whether the doctrine of
` assignor estoppel applies to IPRs.
` Now, given the impending Supreme
` Court and Federal Circuit decisions
` relating to assignor -- relating to the
` assignor estoppel issue and the early
` stages of these proceedings, Patent Owners
` believes that there is good cause to
` extend the time limit of the IPRs beyond
` the current one year completion deadline
` to the 18 month statutory deadline set
` forth in the law.
` Thus, Patent Owner requests
` permission today to file a motion to stay
` the trial period for six months in order
` to promote PTAB economy and efficiency for
` the Board and both parties.
` A stay would allow the Board to
` evaluate the results of the Cuozzo and
` Husky decisions and could result in
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`Page 11
` judicial economy and reduced expenses for
` the parties.
` Petitioner may argue that there is
` uncertainty surrounding when the Supreme
` Court will issue the Cuozzo decision and
` when the Federal Circuit will issue the
` Husky decision.
` With regard to Cuozzo, it was
` argued on April 25, 2016 and under Supreme
` Court rules will issue by the end of the
` month.
` Regarding Husky, Federal Circuit
` data indicates that it will issue within
` six months from the oral hearing in early
` May at the latest.
` We are assuming that the Husky
` decision will be precedential based on the
` oral argument and the issues involved and
` they have not issued, Your Honors, a Rule
` 36 decision to date.
` So, second --
` JUDGE COCKS: Actually, before
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` you move on, we will address -- if you
` were going to move on to the motion to
` terminate, let's stick with this for the
` moment.
` I would like to hear from opposing
` counsel from the Petitioner your thoughts
` on what Mr. Sterne just mentioned and
` requested.
` MR. STERNE: Your Honor, before
` we go to that, may I say one other
` thing?
` JUDGE COCKS: Did you have
` another point to make about the motion?
` MR. STERNE: Yes, there is
` another major point that I have not
` addressed yet, which I think would be
` important; it won't take much time.
` If you don't mind, I would like to
` give you a little additional information
` about what's going on in the Nevada
` District Court.
` So, in addition to what I just
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`Page 13
` presented, in the parallel District Court
` case in Nevada and that's why we have
` Mr. Peltz on the line from Bartlit Beck,
` on May 10th IGT asked in that court case
` that the judge enjoin Petitioner,
` Aristocrat, from participating in these
` IPR proceedings.
` This request by ITT was initially
` denied by the District Court before these
` IPRs were filed, Your Honors, but on May
` 12 the Federal Circuit vacated the
` District Court's denial of the prohibition
` to participate and remanded the request to
` the District Court for further
` consideration.
` The issue the District Court will
` again address in the near term is whether
` assignor estoppel in the District Court
` prevents Petitioner, Aristocrat, from
` participating in these IPRs.
` So, what we are saying, Your
` Honors, in summary, is that Patent Owner
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`Page 14
` seeks a motion to stay to allow time for
` these issues to be decided in their
` respective forums, namely the District
` Court, the Federal Circuit and the Supreme
` Court.
` Decisions are imminent from each of
` these tribunals, and they will very likely
` impact these IPRs.
` Regarding the assignor estoppel
` issue before the Board, we submit it is
` prudent and responsible to grant the stay
` both from the perspective of the Board and
` the parties.
` That's what I had to say, Your
` Honor.
` JUDGE COCKS: All right, thank
` you, Mr. Sterne.
` Ms. Reister, can we have your
` thoughts?
` MS. REISTER: Yes, Your Honor. I
` don't believe the Patent Owner has
` identified any circumstance where the
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`Page 15
` Board has actually extended the one year
` period, and we are not aware of any.
` But certainly here there is no
` extraordinary circumstance present to
` warrant pendency beyond the one year
` period.
` The relatively early stage of these
` present proceedings is not counterbalanced
` by the uncertainty of the Husky decision.
` The Federal Circuit may not even
` reach the assignor estoppel issue, as it
` would be unchallengeable under Section
` 314(d) as was argued in the intervenor
` brief of the Patent Office.
` The timing of the decision cannot
` be predicted with any certainty,
` particularly given the possibility of an
` en banc rehearing, and the variation in
` the panels and offering judges in terms of
` how quickly they actually write decisions.
` Nor has Mr. Sterne taken into
` account that the parties may settle before
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` a decision is issued.
` And there is even less certainty as
` to the merits of the decision and it's
` impact, if any, in these proceedings.
` So, even if the Federal Circuit
` were to decide that assignor estoppel is
` an issue that could be raised in an IPR,
` here there has not been any finding that
` assignor estoppel even exists.
` And I would point the Board to the
` PE Aerospace case where the Board also
` denied an extension pending the outcome of
` the Husky case, notwithstanding the fact
` that the District Court had found that
` assignor estoppel did apply, and that case
` is IPR 2014 01510 paper 105.
` And even the Patent Owner agrees
` that there is good reason that the PTAB is
` not the right tribunal to consider
` assignor estoppel, and they argued as such
` to the Federal Circuit.
` The uncertainty that surrounds the
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` Husky decision runs counter to the
` statutory mandate of the just, speedy and
` inexpensive resolution of the five
` proceedings that we have here,
` particularly given that work will continue
` in parallel in any event.
` In fact, the Patent Owner has
` reached out to us to begin the process of
` scheduling depositions in these cases.
` So, there are no economies that are
` being gained here, and it certainly does
` not create the extraordinary circumstance
` for the Board to extend the pendency.
` JUDGE COCKS: All right, thank
` you, Ms. Reister.
` Mr. Sterne, do you have any
` additional comments about the motion to
` stay issue?
` MR. STERNE: No, Your Honor.
` But, I think that it's clear that
` this is a fundamental jurisdictional
` question about these IPRs, the assignor
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` estoppel doctrine applied to IPRs.
` It's a very hot issue, which you
` know, at the PTAB, there are other cases
` coming up at various stages that are
` dealing with this as well.
` I think the Federal Circuit and the
` Supreme Court are very focused based on
` listening to the oral arguments in both
` Cuozzo and in Husky about these
` fundamental jurisdictional issues.
` I don't think it's fair to
` characterize that it would not be in the
` best interests of the Board and the
` parties to have a limited stay here.
` We are going to be seeing the
` Supreme Court decision by the end of the
` month. As I said, I think there is a high
` probability we are going to have a Federal
` Circuit decision, even if it doesn't go en
` banc initially, we are going to have
` something soon.
` So I think that for all the reasons
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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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` that I articulated already, in all due
` respect to my colleague, that it would be
` in the best interests of everyone that
` this case be stayed at this time.
` JUDGE COCKS: Okay, thank you.
` Let's move on briefly now to the second
` issue, the motion to terminate.
` Can you give me a little more
` background about what the nature of that
` is?
` MR. STERNE: Yes, Your Honor.
` Beyond our request to brief the
` issue of the stay, we wanted to alert the
` Board that IGT plans to request a motion
` to terminate should the pending Federal
` Circuit and Supreme Court cases find that
` assignor estoppel is applicable to IPR
` proceedings, or should the Nevada District
` Court enjoin Petitioner, Aristocrat, from
` participating in these IPRs.
` We understand that requesting a
` motion to terminate is premature, but we
`
`www.DigitalEvidenceGroup.com
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`Digital Evidence Group C'rt 2016
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`202-232-0646
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`6/8/2016
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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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` want to alert the Board of the issue.
` JUDGE COCKS: Okay, thank you.
` You are correct that at this point
` it is premature. I understand, I
` understand what you are saying.
` In the event that certain things
` transpire and we are in a situation where
` that may be appropriate, I believe that
` would be a better time to raise that
` issue.
` Thank you for bringing it to the
` attention of the Board, but I don't see it
` that there is any further action from the
` Board at this point on that issue.
` MR. STERNE: Your Honor, I
` understand.
` MS. REISTER: Your Honor, this is
` Andrea Reister for the Petitioner.
` May I briefly respond to the final
` remarks?
` JUDGE COCKS: Yes, please do.
` MS. REISTER: We certainly agree
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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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` that the issue of the motion to
` terminate is premature, and we
` appreciate Your Honor's identifying that
` as well.
` I just wanted to point out that
` with respect to the motion to stay, there
` have been a number of Board decisions that
` have looked at this issue in light of
` pending decisions of significant import,
` and many of those decisions occurred prior
` to the date for the Patent Owner to
` respond, so they were also in this early
` stage.
` There was a request for
` authorization to extend the motion for
` time pending the Alice decision; that was
` denied by the Board.
` There was a request to request
` authorization to file a motion for stay
` until after the Cooper V. Lee case, which
` was going to the very heart of the ability
` to have IPRs, the constitutionality
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`www.DigitalEvidenceGroup.com
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`Digital Evidence Group C'rt 2016
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`202-232-0646
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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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` challenge question.
` In each of these cases, the Board
` unanimously came to the conclusion that it
` did not rise to the extraordinary
` situation, even in cases where there was a
` joint request.
` There are continually going to be
` cases of import that are before courts
` that may or may not affect the outcome of
` a particular proceeding.
` And again, we would urge the Board
` here to find in the same way that the
` situations here, notwithstanding Cuozzo,
` notwithstanding whether or not if the
` Federal Circuit would even reach the
` assignor estoppel issue, doesn't raise to
` a level where we have to go against the
` statute and extend the pendency.
` And if the Board were minded to do
` anything, we would certainly request
` written briefing on the point.
` JUDGE COCKS: Okay, thank you.
`
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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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`Page 23
` Let me just remind the parties that
` the purpose of this call is not to decide
` whether to stay or not, it is simply
` whether to authorize the filing of a
` motion and a corresponding opposition.
` So, I appreciate the substance that
` you just provided, Ms. Reister, but not
` necessarily as important for the nature of
` this call.
` So, if the parties would please
` remain on the line, I am going to confer
` with my colleague briefly and we will get
` back to you, but please stay on the call.
` Okay, thank you.
` (At this point in the proceedings
` there was a recess, after which the
` proceeding continued as follows:)
` JUDGE COCKS: Hello, this is
` judge Cocks. I am once again on the
` call with Judge Kim.
` Do we still have counsel from both
` sides, for the Petitioner, counsel for the
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`Digital Evidence Group C'rt 2016
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`202-232-0646
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`6/8/2016
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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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` Petitioner?
` MS. REISTER: Yes, Your Honor.
` JUDGE COCKS: Thank you.
` And counsel for the Patent Owner?
` MR. STERNE: Yes, Your Honor.
` JUDGE COCKS: Okay, thank you.
` The panel appreciates the parties'
` comments and insights today.
` We are not going to make a
` determination on this call, but will
` follow up with an order with our letting
` you know whether we are going to authorize
` a motion and a corresponding opposition.
` So unless the parties have any
` other issue in that respect, unless a
` party may have any other comments they
` would like to make with respect to those
` two, the motion to stay issue, we
` understand the parties' sides, I don't
` think we need to hear anything else.
` I'm going to move on to a few other
` preliminary matters that are typical with
`
`www.DigitalEvidenceGroup.com
`
`Digital Evidence Group C'rt 2016
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`202-232-0646
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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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` respect to an initial conference call.
` Have the parties -- do the parties
` have any issue with the scheduling orders
` in any of the five cases?
` MS. REISTER: This is counsel for
` Petitioner.
` No, Your Honor, we do not have any
` issue with the scheduling order.
` JUDGE COCKS: Okay, Mr. Sterne?
` MR. STERNE: No, Your Honor, we
` do not.
` JUDGE COCKS: As we indicated in
` the scheduling orders, there is no
` protective order that has been entered
` at this time.
` There is some confusion in that
` regard from the practice guide, but the
` parties understand there is currently no
` protective order in the case.
` Does either side envision a need
` for a protective order?
` Let's start with Petitioner.
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`
`Digital Evidence Group C'rt 2016
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`202-232-0646
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`6/8/2016
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`Teleconference
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` Ms. Reister?
` MS. REISTER: Your Honor, I don't
` believe at this time we envision any
` need for a protective order.
` JUDGE COCKS: Okay, thank you.
` Mr. Sterne, the Patent Owner, do
` you envision a need?
` MR. STERNE: Not at the present
` time, Your Honor, but you know this
` whole issue of nonobvious evidence from
` Petitioner may arise through the
` District Court case or other avenues, so
` we may be back on this issue.
` JUDGE COCKS: I understand
` circumstances may change, but at this
` time you do not see a need for a
` protective order?
` MR. STERNE: That is correct.
` JUDGE COCKS: Okay, thank you.
` Mr. Sterne, I assume you are aware
` of the potential for a motion to amend.
` Do you foresee, everything else
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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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`Page 27
` aside, right now do you foresee the need
` for a motion to amend with respect to any
` of the three patents?
` MR. STERNE: Your Honor, we don't
` foresee a need at this time, but again,
` we have just been brought on the case
` and we may change that.
` But at this point in time we do not
` see a need to amend.
` JUDGE COCKS: I'm sure you are
` aware you do not need prior
` authorization from the Board, but there
` is a conferral requirement, so if you do
` at some point contemplate filing a
` motion to amend, please schedule a call
` with the Board and we will provide a
` little more detail about what we would
` need to see.
` MR. STERNE: Thank you, Your
` Honor.
` JUDGE COCKS: Lastly, have the
` parties, have the parties discussed
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`Digital Evidence Group C'rt 2016
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`202-232-0646
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`6/8/2016
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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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` settlement for any of the cases?
` MR. STERNE: Not directly, Your
` Honor.
` I know that there are some
` discussions that are going in a larger
` context between the parties, but not
` specifically for these IPRs at this point.
` JUDGE COCKS: Okay, would that
` larger context potentially impact these
` IPRs, or is that just tangential?
` MR. STERNE: I would assume they
` would; depending on whether a global
` settlement, for example, could be
` reached.
` JUDGE COCKS: I see.
` All right, well the panel has
` nothing further.
` Unless the parties have any other
` issues or comments to make, we will
` conclude the call.
` But let's just make sure. Ms.
` Reister, do you have any other issue?
`
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`Digital Evidence Group C'rt 2016
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`Teleconference
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`Page 29
`
` MS. REISTER: No, Your Honor.
` JUDGE COCKS: And Mr. Sterne, do
` you have any other issue?
` MR. STERNE: No, Your Honor.
` JUDGE COCKS: Okay, thank you
` very much.
` The call is adjourned.
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`Aristocrat Technologies, Inc. v. IGT
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`Teleconference
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`C E R T I F I C A T E
`
`I, STEPHEN J. MOORE,
`
`a Shorthand
`
`Reporter and Notary Public of the State of
`
`New York, do hereb