`___________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`___________________
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`
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`BAKER HUGHES INCORPORATED and
`BAKER HUGHES OILFIELD OPERATIONS, INC.,
`Petitioners
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`v.
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`PACKERS PLUS ENERGY SERVICES INC.,
`Patent Owner
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`___________________
`
`Case IPR2016-00596
`Patent 7,134,505
`___________________
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`
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`EXCLUSIVE LICENSEE RAPID COMPLETIONS LLC’S
`OPPOSITION TO PETITIONERS’ MOTION SEEKING AUTHORIZA-
`TION TO FILE REPLACEMENT PETITION
` AND EXHIBITS AND NEW EXHIBIT
`
`
`Mail Stop “PATENT BOARD”
`Patent Trial and Appeal Board
`U.S. Patent and Trademark Office
`P.O. Box 1450
`Alexandria, VA 22313-1450
`
`
`
`
`
`Case IPR2016-00596
`Patent 7,134,505
`
`I.
`II.
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`TABLE OF CONTENTS
`Introduction. ..................................................................................................... 1
`Argument. ........................................................................................................ 2
`A.
`Petitioners’ proposed modifications are substantive, as agreed by
`Petitioners. ............................................................................................. 2
`No rule provides for Petitioners to obtain the requested relief. ............ 3
`B.
`Rapid Completions will be prejudiced. ................................................. 4
`C.
`III. Conclusion. ...................................................................................................... 5
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`I.
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`Introduction.
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`Case IPR2016-00596
`Patent 7,134,505
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`The single issue before the Board is whether Petitioners can amend their
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`originally-filed Petition to substantively change the evidence they previously cited
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`to support their alleged prima facie case of unpatentability related to U.S. Patent
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`No. 7,134, 505 (“the ’505 patent”). No statute and no rule provides for the extraor-
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`dinary relief requested by Petitioners, and Petitioners cite no such rule and provide
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`no explanation of where the Board would derive the authority to permit the sub-
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`stantive amendment of a petition after filing. Accordingly, Petitioners should with-
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`draw their present petition and file a new petition with the associated filing fee.
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`And this course is the manifestly fairer course because the Patent Owner (and, in
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`this case, Patent Owner’s exclusive licensee, Rapid Completions), will have the
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`full period provided in the rules to assess Petitioners’ new evidence and can then
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`file its preliminary response three months following the notice of filing date of the
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`new petition, as provided by rule 37 C.F.R. § 42.107.
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`Trying to avoid involving the Board, Rapid Completions proposed a reason-
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`able resolution to Petitioners’ conundrum: Petitioners could make the requested
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`change to their underlying supporting evidence, but reset the filing date, the pre-
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`liminary response date, and corresponding institution date, accordingly. This mat-
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`ter would proceed as if Petitioners had filed a new Petition. Petitioners refused
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`Rapid Completions’ reasonable proposal. Petitioners, thus, want to avoid the finan-
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`cial and timing consequences of their error, yet deprive Rapid Completions of its
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`Case IPR2016-00596
`Patent 7,134,505
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`ability to fully develop a response to the newly submitted evidence and protect
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`their valuable property rights.
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`II. Argument.
`Petitioners’ proposed modifications are substantive, as agreed by
`A.
`Petitioners.
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` On February 12, 2015, Petitioners filed their petition challenging the claims
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`of the ’505 patent. To support the proposed grounds of unpatentability, Petitioners
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`provided a copy of a document entitled “Production Control of Horizontal Wells in
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`a Carbonate Reef Structure,” marked as Exhibit 1004. Petitioners provided no ad-
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`ditional evidence related to the publication date or public availability of Exhibit
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`1004. Petitioners now seek to replace the originally-filed Exhibit 1004 and to add
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`an entirely new declaration (Exhibit 1019) that, for the first time, addresses the
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`public availability of Exhibit 1004.
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`Petitioners’ proposed changes are substantive—a fact that Petitioners appear
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`now to not dispute (Motion, p. 1). Petitioners however attempt to obfuscate the
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`substantial adverse consequences on Rapid Completions if the Board grants the in-
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`stant motion. First, Petitioners state that the “only changes to the written content
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`from original Exhibit 1004 are the paper presentation language on the first page,
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`and five wording changes on the last two pages.” (Motion, p. 4.) Petitioners mis-
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`state the substantive practical effects of their motion on Exhibit 1004, because the
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`Patent 7,134,505
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`modification to the “paper presentation language on the first page” will now pro-
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`vide an argument that Exhibit 1004 was publicly available where there was no evi-
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`dence before. Moreover, the “five wording changes” are not simple typographical
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`corrections, but relate to discussions regarding the functionality of a plug and gas
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`and water intake. (See Motion, Exhibit K, pp. 1, 8.) Second, Petitioners misrepre-
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`sent that Exhibit 1019 is merely “a declaration attesting to the publication of re-
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`placement Exhibit 1004.” (See Motion, p. 1.) Petitioners fail to advise the Board
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`that Exhibit 1019 includes an attachment that contains 13 additional substantive
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`papers. And, because Exhibit 1004 allegedly comes from a conference proceeding,
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`newly presented Exhibit 1019 becomes critical for establishing publication and
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`public availability of Exhibit 1004—a fundamental component of Petitioners’ re-
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`quirement to show a prima facie case of unpatentability. Petitioners’ failure to pro-
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`vide Exhibit 1019 with its original petition was a serious, and likely fatal, defect in
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`their original petition—a fact effectively conceded by Petitioners in this motion.
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`B. No rule provides for Petitioners to obtain the requested relief.
`Petitioners, as movant, bear the burden of establishing that they are entitled
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`to the relief requested. 37 C.F.R. § 42.104(b)(4). Petitioners fail to meet this bur-
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`den. No rule permits a petitioner to make substantive modifications to the original-
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`ly-filed Petition, and the instant motion does not fall under the rule that allows for
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`correcting clerical errors. Petitioners never explain where or how the Board has the
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`Patent 7,134,505
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`authority to make the modification requested.
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`Although Petitioners mention 32 C.F.R. § 42.5(b) in the title of their motion
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`–––“Motion Seeking Authorization to File Replacement Petition and Exhibits and
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`New Exhibit Pursuant to 37 C.F.R. § 42.5(b)”––this brief mention does not meet
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`Petitioners’ burden. Petitioners never discuss why or how Rule 42.5(b) applies to
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`their motion. Instead, Petitioners set out in the background the substantive flaws
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`with their initial evidence and their self-serving argument that Rapid Completions
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`will not be prejudiced if the Board grants the motion and does not modify the pre-
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`liminary response date. Petitioners’ cursory argument does not justify the extraor-
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`dinary relief requested. Moreover, Petitioners are incorrect—Rapid Completions
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`will be prejudiced, as we address in the next section.
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`C. Rapid Completions will be prejudiced.
`Rapid Completions will be prejudiced if the Board permits the substantive
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`modifications to the petition without a corresponding change to the preliminary re-
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`sponse date. The new evidence Petitioners seek to introduce goes to a core element
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`of Petitioners’ requirement to show a prima facie case—the public availability of a
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`prior art reference. Petitioners’ proposed substantive changes to the text of Exhibit
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`1004 substantively affect Rapid Completions’ analysis of the petition’s proposed
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`grounds of unpatentability. Petitioners contend that they filed similar evidence in
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`other petitions, but whether they did has no relevance to this matter. The ’505 pa-
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`Patent 7,134,505
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`tent contains different claims, and, therefore, Rapid Completions’ analysis neces-
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`sarily differs from the analysis in this case. Rapid Completions will be prejudiced
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`because it will not have the time provided in the rules to analyze and respond to the
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`new evidence. In contrast, providing the full three months to respond to the petition
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`would not prejudice Petitioners. Indeed, Petitioners did not identify a single reason
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`why they would be prejudiced by moving the preliminary response due date. (Mo-
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`tion, p. 5.)
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`III. Conclusion.
`Petitioners made the strategic decision to file the present petition without the
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`proper evidence to support their prima facie case. Petitioners seek to cure their
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`strategic mistake by requesting permission to change their originally-filed Petition
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`to allow substantive changes, but oppose providing Rapid Completions the proper
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`time to analyze and respond. The Board should deny Petitioners’ request. The
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`Board should not deprive Rapid Completions of its rule-guaranteed full, fair, and
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`just opportunity to defend its valuable property resource, particularly when the sole
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`reason of Petitioners’ motion rests on Petitioners’ own errors.
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`Case IPR2016-00596
`Patent 7,134,505
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`Respectfully submitted,
`
`STERNE, KESSLER, GOLDSTEIN & FOX P.L.L.C.
`
` /Michael B. Ray/
`
`Michael B. Ray
`Registration No. 33,997
`Attorney for Exclusive Licensee
`
`
`
`Date: April 12, 2016
`
`1100 New York Avenue, N.W.
`Washington, D.C. 20005-3934
`(202) 371-2600
`
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`CERTIFICATION OF SERVICE
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`The undersigned hereby certifies that the foregoing EXCLUSIVE LICEN-
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`Case IPR2016-00596
`Patent 7,134,505
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`
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`
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`SEE RAPID COMPLETIONS LLC’S OPPOSITION TO PETITIONERS’ MO-
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`TION SEEKING AUTHORIZATION TO FILE REPLACEMENT PETITION
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`AND EXHIBITS AND NEW EXHIBIT was served electronically via e-mail on
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`April 12, 2016, in its entirety on the following counsel of record for Petitioner:
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`Mark T. Garrett (Lead Counsel)
`Eagle H. Robinson (Back-up Counsel)
`NORTON ROSE FULBRIGHT US LLP
`mark.garrett@nortonrosefulbright.com
`eagle.robinson@nortonrosefulbright.com
`
`
`STERNE, KESSLER, GOLDSTEIN & FOX P.L.L.C.
`
` /Michael B. Ray/
`
`Michael B. Ray
`Registration No. 33,997
`Attorney for Exclusive Licensee
`
`
`
`Date: April 12, 2016
`
`1100 New York Avenue, N.W.
`Washington, D.C. 20005
`(202) 371-2600