`571-272-7822
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`Paper 9
`Entered: May 3, 2016
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`BAKER HUGHES INCORPORATED and BAKER HUGHES OILFIELD
`OPERATIONS, INC.,
`Petitioner,
`
`v.
`
`PACKERS PLUS ENERGY SERVICES, INC.,
`Patent Owner.
`
`Case IPR2016-00596
`Patent 7,134,505 B2
`
`Before NEIL T. POWELL and CARL M. DeFRANCO,
`Administrative Patent Judges.
`POWELL, Administrative Patent Judge.
`
`
`
`DECISION
`Motion to File Replacement Petition and Exhibits and New Exhibit
`37 C.F.R. § 42.5
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`
`
`
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`
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`IPR2016-00596
`Patent 7,134,505 B2
`
`Background
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`On February 12, 2016, Petitioner Baker Hughes Incorporated and
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`Baker Hughes Oilfield Operations, Inc. (hereafter, “Baker”) filed a Petition
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`requesting an inter partes review of claims 1–7, 11, and 14–27 of U.S.
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`Patent No. 7,134,505 B2 (Ex. 1001, “the ’505 patent”). Paper 2 (“Pet.”).
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`On April 6, 2016, pursuant to our authorization, Baker filed a Motion to File
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`Replacement Petition and Exhibits and New Exhibit. Paper 7 (“Motion” or
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`“Mot.”). On April 12, 2016, Rapid Completions LLC (hereafter, “Rapid”),
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`representing itself as the exclusive licensee of the ’505 patent, filed an
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`Opposition to the Motion. Paper 8 (“Opp.”).
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`Baker seeks:
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`leave to file: (1) a replacement version of originally-filed
`Exhibit 1004 (a prior art article) . . . ; (2) new Exhibit 1019
`. . . , which is a declaration attesting to the publication of
`replacement Exhibit 1004; (3) a replacement version of
`Exhibit 1007 . . . , which is a declaration by [Petitioner’s]
`technical expert that has been updated to correct page
`citations that will change with entry of replacement
`Exhibit 1004 and use a cleaner image from the
`replacement, and to correct two typographical errors; and
`(4) a replacement Petition . . . , which has been changed to
`list new Exhibit 1019 and reference same as showing the
`publication of replacement Exhibit 1004, and fix some
`typographical errors.
`
`Mot. 1. Baker explains that it seeks this relief because it
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`learned after filing the February 12, 2016 Petition that the
`filed version of Exhibit 1004—which is a paper—may not
`have been the version included in the bound proceedings
`associated with the conference, which version [Baker]
`subsequently filed as the proposed replacement version of
`Exhibit 1004 (in combination with new Exhibit 1019) in
`other recent IPR petitions against the same Patent Owner
`. . . .
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`2
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`IPR2016-00596
`Patent 7,134,505 B2
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`Id. at 2.
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`Baker states that it will “accept whatever new filing date the Board
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`determines should it grant this request” and “will not dispute” Rapid’s
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`characterization of the changes as “substantive.” Id. Baker “object[s] to
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`extending the preliminary response deadline (currently May 25, 2016) by the
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`time between February 25, 2016 and the new filing date.” Id.
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`Rapid asserts that Baker should withdraw the Petition and file a new
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`petition and filing fee. Opp. 1. Rapid states that it proposed that Baker
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`could make the changes it requests, “but reset the filing date, the preliminary
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`response date, and corresponding institution date, accordingly.” Id.
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`Thus, Baker’s requested relief differs from what Rapid had proposed
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`in only one respect. Specifically, Baker requests that the due date for the
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`Preliminary Response remain the same, and Rapid had proposed changing
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`the due date for the Preliminary Response to a later date.
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`Discussion
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`Baker discusses differences between the documents it seeks to submit
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`and those originally submitted (Mot. 4–5) and argues that the relief it seeks
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`would cause no prejudice to Rapid (id. at 5). Baker asserts that “neither
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`replacement Exhibit 1004 nor the proceedings copy in Exhibit 1019 are new
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`to Patent Owner, whose CEO and the co-inventor of the ’505 Patent is a
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`named co-author.” Id. Baker argues that there is no reason to change the
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`due date for the Preliminary Response “because Patent Owner has been in
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`possession of replacement Exhibit 1004 and new Exhibit 1019 since
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`February 19, 2016, when they were filed as Exhibits 1004 and 1019,
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`respectively, in IPR2016-00597 and as Exhibits 1003 and 1014,
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`respectively, in IPR2016-00598.” Id. at 1. Baker notes that preliminary
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`3
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`IPR2016-00596
`Patent 7,134,505 B2
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`responses are due in IPR2016-00597 and IPR2016-00598 on the same day
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`(May 25, 2016) that the Preliminary Response is due in this case. Id. at 2.
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`Baker argues that “[g]ranting the requested relief should eliminate any
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`legitimate basis for challenging the prior art nature of original exhibit 1004.”
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`Id. Baker adds that, if Rapid intends to challenge the prior art nature of
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`Exhibit 1004, it will have to do so by May 25, 2016 in IPR2016-00597 and
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`IPR2016-00598, anyway. Id.
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`Rapid argues that Baker’s proposed changes are substantive, that no
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`rule provides for the relief requested by Baker, and that Rapid will suffer
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`prejudice. Opp. 2–5. Rapid argues that Baker understates the significance
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`of allowing the submissions Baker seeks. Opp. 2–3. Rapid further argues
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`that “[n]o rule permits a petitioner to make substantive modifications to the
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`originally-filed Petition, and the instant motion does not fall under the rule
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`that allows for correcting clerical errors.” Id. at 3–4. Rapid adds that
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`“[a]lthough [Baker] mention[s] [37] C.F.R. § 42.5(b) in the title of their
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`motion . . . this brief mention does not meet [Baker’s] burden” and that
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`Baker “never discuss[es] why or how Rule 42.5(b) applies to their motion.”
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`Id. at 4. Rapid argues that it “will be prejudiced if the Board permits the
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`substantive modifications to the petition without a corresponding change to
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`the preliminary response date.” Id. Rapid argues that Baker’s assertion of
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`having filed similar evidence in other petitions has no bearing on this case
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`because “[t]he ’505 patent contains different claims, and, therefore,
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`[Rapid’s] analysis necessarily differs from the analysis in this case.” Id. at
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`4–5. Rapid argues that granting the Motion will prejudice it because it “will
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`not have the time provided in the rules to analyze and respond to the new
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`evidence.” Id. at 5.
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`4
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`IPR2016-00596
`Patent 7,134,505 B2
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`We are persuaded that granting the Motion, including leaving the due
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`date for the Preliminary Response on May 25, 2016, would not prejudice
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`Rapid. Rapid does not dispute Baker’s assertion that the evidence Baker
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`seeks to enter was entered in IPR2016-00597 on February 19, 2016. See
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`Mot. 1; Opp. 4–5.
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`Furthermore, upon reviewing the challenged claims in this case and
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`those in IPR2016-00597, we find unpersuasive Rapid’s argument that its
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`analysis necessarily differs because of differences between the claims
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`challenged in the cases. In this case, Exhibit 1004 is asserted in a challenge
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`of claims 23 and 27 of the ’505 patent. See Pet. 4, 46–49. In IPR2016-
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`00598, Exhibit 1004 is asserted in challenges of claim 25 of U.S. Patent No.
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`7,543,634 B2 (“the ’634 patent”). See IPR2016-00597, Paper 1, 4, 46–48,
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`53–58. Claims 23 and 27 of the ’505 patent recite the same language that
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`claim 25 of the ’634 patent does. Specifically, each of these claims recites
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`“wherein when in a desired position the apparatus is adjacent an open hole
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`section of the wellbore and the packers are set to seal the annulus between
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`the apparatus and the wellbore wall.” Ex. 1001, col. 16, ll. 31–34, col. 17,
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`ll. 17–20; IPR2106-00597, Ex. 1001, col. 16, ll. 41–44. Given this, we are
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`persuaded that any issues related to the evidence Baker seeks to submit in
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`this case sufficiently resemble any issues related to the evidence already
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`submitted in IPR2016-00597 that granting the Motion will not significantly
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`prejudice Rapid.
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`Additionally, we believe that other considerations weigh in favor of
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`exercising our discretion under 37 C.F.R. § 42.5 and granting the Motion.
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`Nothing on the record indicates that a time bar under 35 U.S.C. § 315(b) or
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`anything else would prevent Baker from filing another petition with the
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`5
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`IPR2016-00596
`Patent 7,134,505 B2
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`documents it seeks to file in the present case. Indeed, Rapid asserts that
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`Baker should do just that. Opp. 1. That option would prove inefficient. A
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`number of other pending, related IPR petitions involve Baker challenging
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`related patents defended by Rapid, including IPR2016-00597, IPR2016-
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`00598, IPR2016-00650, IPR2016-00656, and IPR2016-00657. For each of
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`these other pending IPR petitions, the preliminary response is due either
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`May 25, 2016 or June 3, 2016. Given this, with no significant reason to
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`deny Baker’s Motion, granting the Motion will promote efficiency by
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`keeping the schedule of this case moving with schedules of the other cases.
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`
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`ORDER
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`It is ORDERED that Baker’s Motion for leave to submit the specified
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`documents is granted;
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`FURTHER ORDERED that a new petition filing date will be entered
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`when Baker submits the specified documents;
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`FURTHER ORDERED that once Baker submits the specified
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`documents, the originally filed versions of Exhibits 1004 and 1007 will be
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`expunged; and
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`FURTHER ORDERED that the due date for the Preliminary
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`Response remains May 25, 2016.
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`6
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`IPR2016-00596
`Patent 7,134,505 B2
`
`PETITIONER:
`
`Mark Garrett
`Mark.garrett@nortonrosefulbright.com
`
`Eagle Robinson
`Eagle.robinson@nortonrosefulbright.com
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`
`
`PATENT OWNER:
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`Michael B. Ray
`Mray-ptab@skgf.com
`
`Lori A. Gordon
`Lgordon-ptab@skgf.com
`
`Kyle Conklin
`Kconklin-ptab@skgf.com
`
`
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`7