`571-272-7822
`
`
`Paper 17
`Entered: July 8, 2016
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`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`TWILIO INC.,
`Petitioner,
`
`v.
`
`TELESIGN CORPORATION,
`Patent Owner.
`____________
`
`Case IPR2016-00450
`Patent 8,462,920 B2
`____________
`
`
`
`
`
`
`Before SALLY C. MEDLEY, JUSTIN T. ARBES, and
`KIMBERLY McGRAW, Administrative Patent Judges.
`
`McGRAW, Administrative Patent Judge.
`
`
`
`DECISION
`Denial of Institution of Inter Partes Review
`37 C.F.R. § 42.108
`
`
`
`
`
`
`
`
`IPR2016-00450
`Patent 8,462,920 B2
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`I. INTRODUCTION
`
`
`
`Petitioner, Twilio Inc., filed a Petition (Paper 1, “Pet.”) requesting an
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`inter partes review of claims 1–10, 13, and 17–22 of U.S. Patent
`
`No. 8,462,920 B2 (Ex. 1001, “the ’920 patent”). See 35 U.S.C. § 311.
`
`Patent Owner, TeleSign Corp., filed a Preliminary Response (Paper 7
`
`“Prelim. Resp.”). We have jurisdiction under 35 U.S.C. § 314(a), which
`
`provides that an inter partes review may not be instituted “unless . . . the
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`information presented in the petition . . . shows that there is a reasonable
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`likelihood that the petitioner would prevail with respect to at least 1 of the
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`claims challenged in the petition.”
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`For the reasons that follow, we do not institute an inter partes review
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`of the ’920 patent.
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`A. Related Proceedings
`
`Petitioner identifies the co-pending petition for inter partes review in
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`IPR2016-00360 (US 7,945,034 B2) as a related matter. Pet. 2. Patent
`
`Owner states Petitioner also identified the Petition in this proceeding as a
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`related matter in the co-pending petition for inter partes review in IPR2016-
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`00451 (US 8,687,038 B2, “the ’038 patent”). Prelim. Resp. 2. Patent
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`Owner states that it does not foresee that the decision with respect to the
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`instant Petition will affect, or be affected by, these other Petitions. Id.
`
`The parties also state the ’920 patent is asserted in the following
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`lawsuit: TeleSign Corp. v. Twilio Inc., No. 2:15-cv-03240 (C.D. Cal.). Id.;
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`Pet. 2.
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`2
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`IPR2016-00450
`Patent 8,462,920 B2
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`B. The ’920 Patent (Ex. 1001)
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`The ’920 patent, entitled “Registration, Verification and Notification
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`System,” relates generally to a process for verifying the identity of an online
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`registrant. Ex. 1001, 1:6–7, 2:7–8. The process uses registration
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`information to notify the registrant of events that are established either by
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`the registrant or by the business through which the registrant has registered.
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`Id. at 2:8–10. The ’920 patent explains that to prevent fraud or identity theft,
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`either the business or individual may wish to be alerted to certain events. Id.
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`at 1:40–42. For example, “a consumer may wish to be notified every time a
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`withdrawal [of] more than one thousand dollars is requested from his
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`checking account.” Id. at 1:42–45. “A business may wish to notify a
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`consumer when more than five transactions post to a consumer’s account
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`within twenty-four hours.” Id. at 1:45–47. The ’920 patent explains that
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`when credit cards or account numbers are stolen, the accounts can be quickly
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`drained of cash or credit over a short period of time. Id. at 1:48–50. This
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`can be avoided by notifying the account owner of these acts or even seeking
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`his or her authorization before permitting such transactions to occur. Id. at
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`1:50–53. The ’920 patent further states that there are other instances when
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`notification can be helpful, such as when automatic deposits occur. Id. at
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`1:54–57. Alternatively, there are instances “not financially based in which
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`the notification could benefit both the consumer as well as the business.” Id.
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`at 1:57–59. “For example, the consumer may want to be alerted to new
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`information, updated sports scores, etc.” Id. at 1:60–61.
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`“Upon the occurrence of a previously established notification event,
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`the registrant is notified by establishing a connection with the registrant,
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`typically by contacting the registrant through a telephonic connection with
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`3
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`IPR2016-00450
`Patent 8,462,920 B2
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`the registrant via at least one registrant telephone number provided by the
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`registrant during the registration process.” Id. at 2:49–55.
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`C. Claims
`
`Petitioner challenges independent claim 1 and dependent claims 2–10,
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`13, and 17–22, which depend directly or indirectly from claim 1. Claim 1,
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`with brackets added, is reproduced below.
`
`1.
`
`A verification and notification process, comprising:
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`[a] receiving information responsive to at least part of a
`registration form that is presented to the registrant on a web-site,
`the received information including at least one registrant
`electronic contact;
`
`[b] verifying a received registrant electronic contact,
`wherein verifying the received registrant electronic contact
`includes:
`
`establishing a first telephonic connection with the
`registrant using the received registrant electronic contact;
`
`communicating a first communicated verification
`code to the registrant through the first telephonic
`connection; and
`
`receiving a first submitted verification code after it
`is entered by the registrant via the web-site and verifying
`the received registrant electronic contact if the first
`submitted verification code is the same as the first
`communicated verification code;
`
`[c] establishing a notification event associated with the
`registrant;
`
`identifying an occurrence of
`[d]
`notification event; and
`
`the established
`
`[e] after identifying the occurrence of the established
`notification event, re-verifying the registrant electronic contact,
`wherein re-verifying includes:
`
`4
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`IPR2016-00450
`Patent 8,462,920 B2
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`establishing a second telephonic connection with
`the registrant using the verified registrant electronic
`contact;
`
`communicated
`second
`a
`communicating
`verification code to the registrant through the second
`telephonic connection;
`
`receiving a second submitted verification code that
`is entered by the registrant via the web-site; and
`
` re-verifying the registrant electronic contact if the
`second submitted verification code is the same as the
`second communicated verification code.
`
`
`
`D. Asserted Grounds of Unpatentability
`
`Petitioner argues that the challenged claims are unpatentable based
`
`upon the following grounds:
`
`Reference(s)
`
`Bennett1
`
`Basis
`
`Challenged Claim(s)
`
`§ 103
`
`1-10, 13, 17-22
`
`Bennett and Thoursie2
`
`§ 103
`
`1-10, 13, 17-22
`
`
`
`Bennett and Rolfe3
`
`Bennett, Thoursie, and Rolfe
`
`Bennett and Woodhill4
`
`
`
`§ 103
`
`§ 103
`
`4, 5
`
`4, 5
`
`§ 103
`
`13
`
`1 U.S. Patent No. 8,781,975 B2, filed May 23, 2005, issued July 15, 2014
`(Ex. 1005, “Bennett”).
`2 U.S. Patent No. 8,302,175 B2, filed April 20, 2005, issued Oct. 30, 2012
`(Ex. 1008, “Thoursie”).
`3 U.S. Patent Application No. 2003/0221125, published Nov. 27, 2003
`(Ex. 1006, “Rolfe”).
`4 U.S. Patent No. 6,934,858 B2, filed Dec. 13, 2000, issued Aug. 23, 2005
`(Ex. 1010, “Woodhill”).
`
`5
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`IPR2016-00450
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`Bennett, Thoursie, and Woodhill
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`§ 103
`
`13
`
`
`
`II. ANALYSIS
`
`A. Claim Construction
`
`In an inter partes review proceeding, claim terms in an unexpired
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`patent are given their broadest reasonable construction in light of the
`
`specification of the patent in which they appear. 37 C.F.R. § 42.100(b);
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`Cuozzo Speed Techs., LLC v. Lee, __ U.S.__, 2016 WL 3369425, at *10–14
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`(U.S. June 20, 2016). Consistent with the broadest reasonable construction,
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`absent any special definitions, claim terms are presumed to have their
`
`ordinary and customary meaning, as understood by a person of ordinary skill
`
`in the art, in the context of the entire patent disclosure. See In re Translogic
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`Tech., Inc., 504 F.3d 1249, 1257 (Fed. Cir. 2007). Any special definitions
`
`for claim terms must be set forth with reasonable clarity, deliberateness, and
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`precision. See In re Paulsen, 30 F.3d 1475, 1480 (Fed. Cir. 1994).
`
`The Board, however, may not “construe claims during IPR so broadly
`
`that its constructions are unreasonable under general claim construction
`
`principles. . . . [T]he protocol of giving claims their broadest reasonable
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`interpretation . . . does not include giving claims a legally incorrect
`
`interpretation.” Microsoft Corp. v. Proxyconn, Inc., 789 F.3d 1292, 1298
`
`(Fed. Cir. 2015) (citation omitted). Rather, “claims should always be read in
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`light of the specification and teachings in the underlying patent,” and “[t]he
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`PTO should also consult the patent’s prosecution history in proceedings in
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`which the patent has been brought back to the agency for a second review.”
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`Id. at 1298.
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`6
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`In the analysis that follows, we consider the parties’ proposed claim
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`constructions to the extent necessary to determine the sufficiency of the
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`asserted grounds of unpatentability. See Vivid Techs., Inc. v. Am. Sci. &
`
`Eng'g, Inc., 200 F.3d 795, 803 (Fed. Cir. 1999) (only those terms which are
`
`in controversy need to be construed and only to the extent necessary to
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`resolve the controversy).
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`
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`“notification event”
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`The term “notification event” is recited in elements [c], [d], and [e] of
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`independent claim 1. Specifically, claim 1 recites “establishing a
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`notification event,” “identifying an occurrence of the established notification
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`event,” and, “after identifying the occurrence of the established notification
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`event, re-verifying the registrant electronic contact.”
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`Petitioner, relying upon the testimony of its declarant, Michael
`
`Shamos, Ph.D., asserts that the broadest reasonable interpretation of
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`“notification event” is “an event that results in the registrant being contacted
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`either for re-verification or for notification that the event occurred.” Pet. 9
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`(citing Ex. 1002 ¶¶ 23–29). Patent Owner responds that Petitioner’s claim
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`interpretation reads “notification” out of the “notification event” claim terms
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`and is divorced from and inconsistent with the Specification of the ’920
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`patent. See Prelim. Resp. 5. Patent Owner contends “notification event” as
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`recited in claim 1 should be construed as “an event that results in the
`
`registrant being notified that the event occurred.” Id. at 11.
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`We agree with Patent Owner. Although claim terms must be given
`
`their broadest reasonable interpretation, the interpretation must still be
`
`reasonable. Microsoft, 789 F.3d at 1298. “A construction that is
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`7
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`Patent 8,462,920 B2
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`‘unreasonably broad’ and which does not ‘reasonably reflect the plain
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`language and disclosure’ will not pass muster.” Id. (citation omitted). Here,
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`the claim recites establishing a “notification event,” not merely an “event,”
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`and identifying an “occurrence” of the “established notification event.” If,
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`as Petitioner urges, a “notification event” does not require notification that
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`the event occurred, then the word “notification” would be superfluous. See
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`Merck & Co., Inc. v. Teva Pharmaceuticals USA, Inc., 395 F.3d 1364, 1372
`
`(Fed. Cir. 2005 (rejecting a proposed claim construction that would render
`
`claim terms superfluous); Elekta Instrument S.A. v. O.U.R. Sci. Int'l,
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`Inc., 214 F.3d 1302, 1307 (Fed. Cir. 2000) (construing claim to avoid
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`rendering the 30 degree claim limitation superfluous); Gen. Am. Transp.
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`Corp. v. Cryo–Trans, Inc., 93 F.3d 766, 770 (Fed. Cir. 1996) (rejecting the
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`district court’s claim construction because it rendered superfluous the claim
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`requirement for openings adjacent to the end walls). The term “notification”
`
`in “notification event” has meaning and, given how the term is used in claim
`
`1, we agree with Patent Owner that it requires a “notification event” to be an
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`event that results in the registrant being notified that the event occurred.
`
`See, e.g., claim 1 (reciting establishing the “notification event” and
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`“identifying” the “occurrence” of the “notification event”); Ex. 1001,
`
`Abstract (“Notification events are established, and the registrant is notified
`
`of the occurrence of a previously established notification event . . . .”), 2:49–
`
`55 (“Upon the occurrence of a previously established notification event, the
`
`registrant is notified . . . .”).
`
`Petitioner argues that the Specification of the ’920 patent uses the
`
`term “notification event” broadly. Pet. 9. For example, Petitioner argues
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`that, according to the Specification, “[n]otification events can be
`
`8
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`implemented in ‘a wide variety of scenarios’ including ATM transactions,
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`credit card transactions, or as parental controls.” Id. at 9–10 (citing Ex.
`
`1001, 10:55–11:56, claims 19–22). Petitioner cites to other disclosures in
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`the ’920 patent, arguing that those disclosures show that “[a] notification
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`event may be any transaction,” “notification events may occur when a user
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`requests to access or alter her account,” “a notification event may occur
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`‘every time a withdrawal [of] more than one thousand dollars is requested
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`from his checking account, or is charged to his credit card,’” and
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`“[n]otification events may comprise a news event, or even status of credit
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`reports.” Id. at 10 (citing Ex. 1001, 1:39–45, 2:46–48, 10:56–63, 11:11–20,
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`14:23–34, claims 20–22). Petitioner also cites to statements made during
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`prosecution of the ’920 patent that allegedly support construing “notification
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`event” as an event that “may result in either re-verification or notification.”
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`Id. Specifically, Petitioner states that during prosecution, Patent Owner
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`“argued, ‘an established notification event may include receiving a request
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`to access an account associated with the registrant from a device that is not
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`associated with the account.” Id. (citing Ex. 1013, 81). Thus, Petitioner
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`concludes, a notification event does not necessarily result in notifying the
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`registrant of the occurrence. Id. (citing Ex. 1002 ¶¶ 27–29).
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`We are not persuaded that these statements support a construction of
`
`“notification event” as an event that may result in either re-verification or
`
`notification of the occurrence of the event, as none of the statements indicate
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`that a registrant would only be contacted for re-verification after occurrence
`
`of the event (without notification that the event had occurred). Rather, each
`
`of the statements merely describe a type of event without indicating what
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`activity will occur after the event. For example, the cited statement from the
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`9
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`prosecution history indicates that one type of event is receiving an access
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`request from a non-associated device, but says nothing about what results
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`after the event occurs (e.g., re-verification or notification that the event
`
`occurred). See Ex. 1013, 81.
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`Petitioner also relies on the testimony of Dr. Shamos, who quotes the
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`Specification as allegedly stating: “If a previously established notification
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`event occurs, then the system will notify and/or verify the user.” Ex. 1002
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`¶ 28 (citing Ex. 1001, 9:3–4). This is incorrect. The cited portion of the
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`Specification does not recite a “notification event.” Rather, the cited portion
`
`discusses “a previously established event,” not “a previously established
`
`notification event.” Ex. 1001, 9:3–4.
`
`Dr. Shamos also cites the Specification’s teaching that if a user logs
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`into his account or attempts to make a transaction or modify account
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`information, “the user may be notified or even required to become telephone
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`verified.” Ex. 1002 ¶ 28 (citing Ex. 1001, 8:59–62). Dr. Shamos contends
`
`the Specification’s “use of the word ‘or’ indicates that the occurrence of the
`
`particular ‘notification event’ is not necessarily communicated to the
`
`registrant.” Id. We disagree. The cited sentence states that the “user may
`
`be notified or even required” to become telephone verified. Ex. 1001, 8:59–
`
`62. Thus, “or” is not used by itself, and, regardless, the cited sentence does
`
`not use the term “notification event” that is used in claim 1.
`
`A construction of “notification event” as “an event that results in the
`
`registrant being notified that the event occurred” is consistent with the
`
`Specification of the ’920 patent. See, e.g., Ex. 1001, Abstract (“Notification
`
`events are established, and the registrant is notified of the occurrence of a
`
`previously established notification event . . . .”), 1:10–13 (“The present
`
`10
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`IPR2016-00450
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`invention also relates to a process for notifying registrants of predetermined
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`events using information obtained during the registration process.”), 1:42–44
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`(“For example, a consumer may wish to be notified every time a withdrawal
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`[of] more than one thousand dollars is requested . . . .”), 2:49–51 (“Upon the
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`occurrence of a previously established notification event, the registrant is
`
`notified . . . . ),
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`For the above reasons, we construe a “notification event” as “an event
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`that results in the registrant being notified that the event occurred.”5 For
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`purposes of this Decision, no express construction of any additional claim
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`term is necessary.
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`
`
`B. Priority Date
`
`The ’920 patent issued from U.S. Patent Application No. 11/538,989,
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`filed on October 5, 2006, which was filed as a continuation-in-part
`
`application of U.S. Patent Application No. 11/034,421 (“the parent ’421
`
`application), filed on January 11, 2005. Petitioner argues that the ’920
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`patent is not entitled to a filing date earlier than October 5, 2006 because the
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`earlier filed parent ’421 application lacks sufficient written description for
`
`the claims of the ’920 patent.6 Pet. 8–9.
`
`
`
`5 In a concurrently issued decision denying institution of an inter partes
`review in Case IPR2016-00451, we interpret “notification event” in the
`claims of the ’038 patent in a similar manner, the only difference being that
`the claims of the ’920 patent refer to a “registrant,” whereas the claims of the
`’038 patent refer to a “user.”
`6 Petitioner states Bennett has a filing date after January 11, 2005, but before
`October 5, 2006. Pet. 10–11.
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`11
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`Because we deny institution of inter partes review for the reasons
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`explained below, we need not and do not reach the issue of whether the
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`challenged claims of the ’920 patent are entitled to a priority date earlier
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`than October 5, 2006. For purposes of this Decision, we assume, without
`
`deciding, that Bennett is available as prior art.
`
`
`C. Obviousness of Claims 1–10, 13, and 17–22 over Bennett, or
`over Bennett and Thoursie
`
`
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`Petitioner contends claim 1 is unpatentable under 35 U.S.C. § 103(a)
`
`as obvious over Bennett or alternatively over the combination of Bennett and
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`Thoursie. Pet. 3, 16–42. To support its contention that claim 1 is
`
`unpatentable, Petitioner provides explanations as to how Bennett or Bennett
`
`and Thoursie allegedly teach the limitations of claim 1. Id. Petitioner also
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`relies upon the testimony of Dr. Shamos. Ex. 1002.
`
`Both asserted grounds of unpatentability rely upon Bennett as
`
`teaching the “notification event” of independent claim 1. See Pet. 22–42.
`
`Thus, a dispositive issue is whether Petitioner has shown sufficiently that
`
`Bennett teaches this limitation.
`
`Bennett, entitled “System and Method of Fraud Reduction,” is
`
`directed to systems that authenticate a user using a “two-factor
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`authentication” process. See Ex. 1005, Abstract, 2:47–3:16, Figs. 2, 3. For
`
`example, Bennett teaches that during the authentication process, the user
`
`provides “channel” information, such as a telephone number. See id. at
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`2:58–66, 14:46–56. The system establishes a telephone connection (the
`
`second channel) with the phone number and sends a code to the user; the
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`user then enters the code into the website (the first channel) to complete the
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`12
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`transaction. Id. at 2:53–3:16, 15:8–50. Bennett teaches that the user may
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`be required to go through the authentication process for certain transactions,
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`such as when the user is accessing the system from a different device than
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`what was used in the past (id. at 18:4–53) or for “each and every
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`transaction” (id. at 11:44–45). Examples of transactions that may require
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`authentication include opening or logging into an account. Id. at 12:64–
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`13:23. Bennett teaches decision making module 115 having decision engine
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`108 that decides whether a particular transaction requires the two channel
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`authentication process. See id., Fig. 2, 11:33–13:23, 16:3–13.
`
`Petitioner argues that Bennett teaches “notification events,” as recited
`
`in claim 1, because Bennett teaches events that can result in the re-
`
`verification of the user. See, e.g., Pet. 22 (“Bennett teaches that all attempts
`
`to access an account by the registrant are subjected to reverification”), 24
`
`(“Bennett expressly teaches establishing rules to determine whether to
`
`require subsequent two-factor authentication based on the user logging in
`
`from a different device than she had used in the past”), 25 (stating “any rule
`
`in Bennett’s decision engine corresponds to the claimed notification event”
`
`because the engine decides “whether a return user must be re-verified
`
`through two-factor authentication”).
`
`Petitioner also argues that if Bennett does not expressly teach
`
`configuring the rules in Bennett’s decision making module to correspond to
`
`the claimed notification event associated with a registrant, it would have
`
`been obvious to modify Bennett to do so “because the purpose of Bennett’s
`
`decision engine is to determine whether to require a subsequent two-factor
`
`authentication for a particular user during a particular transaction.” Id. at 26
`
`(citing Ex. 1005, 11:58–61, 12:33–41, 14:9–36; Ex. 1002 ¶¶ 122–126).
`
`13
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`Notably, Petitioner does not argue that Bennett teaches notifying the
`
`user that the notification event occurred. Rather, Petitioner asserts, in
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`accordance with its proposed interpretation of “notification event” as
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`allowing for re-verification or notification that the event occurred, that the
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`notification event in Bennett is an event that results in the subsequent
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`two-factor authentication (reverification) of the user.
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`As stated above, we construe a “notification event” as an event that
`
`results in the registrant being notified that the event occurred. Petitioner has
`
`not provided evidence or argument that Bennett teaches a notification event
`
`that would result in the registrant being notified that the event occurred. See
`
`Prelim. Resp. 28. Accordingly, we determine Petitioner has not shown
`
`sufficiently that Bennett teaches all of the limitations of independent claim
`
`1. As such, we are not persuaded that Petitioner has established a reasonable
`
`likelihood that Petitioner would prevail in its challenges to claim 1 or to
`
`claims 2–10, 13, and 17–22, which depend from claim 1.
`
`
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`D. Remaining Grounds
`
`Petitioner’s remaining grounds challenge claims 4, 5, and 13, which
`
`depend from claim 1. See Pet. 45–48, 53–54. For the reasons explained
`
`above regarding claim 1, we are not persuaded that Petitioner has established
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`a reasonable likelihood of prevailing with respect to these grounds as well.
`
`
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`III. CONCLUSION
`
`For the foregoing reasons, we determine that the information
`
`presented in the Petition does not show that there is a reasonable likelihood
`
`that Petitioner would prevail at trial with respect to at least one claim of the
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`14
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`’920 patent based on any ground presented in the Petition. On this record,
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`we deny the Petition for inter partes review of claims 1–10, 13, and 17–22
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`of U.S. Patent No. 8,462,920 B2.
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`Accordingly, it is
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`ORDER
`
`ORDERED that the Petition for inter partes review of U.S. Patent
`
`No. 8,462,920 B2 is denied as to all challenged claims, and no trial is
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`
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`instituted.
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`15
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`PETITIONER:
`
`Wayne Stacy
`wstacy@cooley.com
`
`Mikaela Stone
`zTwilioIPR@cooley.com
`
`Britton Davis
`bdavis@cooley.com
`
`PATENT OWNER:
`
`Tawni Wilhelm
`telesignipr@shb.com
`
`Elena S.K. McFarland
`emcfarland@shb.com
`
`Jesse Camacho
`jcamacho@shb.com
`
`Amy Foust
`afoust@shb.com
`
`
`16