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`______________
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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
`
`v.
`
`PACKERS PLUS ENERGY SERVICES, INC.
`Patent Owner
`
`______________
`
`
`Case IPR2016-00596
`Patent 7,134,505
`______________
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`
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`PETITIONERS’ REPLY IN SUPPORT OF MOTION TO EXCLUDE
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`36679580.1
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`Petitioner’s Exhibit List
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`Case IPR2016-00596
`Patent 7,134,505
`
`Description
`Exhibit
`1001 U.S. Patent No. 7,134,505 (the “’505 Patent”)
`1002 D.W. Thomson, et al., Design and Installation of a Cost-Effective
`Completion System for Horizontal Chalk Wells Where Multiple Zones
`Require Acid Stimulation, SPE (Society for Petroleum Engineering)
`37482 (1997) (“Thomson”)
`1003 U.S. Patent No. 5,449,039 (“Hartley”)
`B. Ellsworth, et al., Production Control of Horizontal Wells in a
`1004
`Carbonate Reef Structure, 1999 Canadian Institute of Mining,
`Metallurgy, and Petroleum Horizontal Well Conference (“Ellsworth”)
`1005 U.S. Patent No. 5,375,662 (“Echols”)
`1006 U.S. Patent 4,018,272 (“Brown”)
`1007 Declaration of Ali Daneshy, Ph.D. (“Daneshy1”)
`1008 KATE VAN DYKE, FUNDAMENTALS OF PETROLEUM ENGINEERING (4th
`ed. 1997)
`RON BAKER, A PRIMER OF OIL WELL DRILLING (5th ed. (revised)
`1996)
`1010 U.S. Patent No. 4,099,563 (“Hutchison”)
`1011 U.S. Patent No. 6,257,338 (“Kilgore”)
`1012
`Excerpts of Prosecution History of U.S. Patent No. 7,861,774, a
`continuation of the ’505 Patent
`Excerpts of Prosecution History of the ’505 Patent
`1013
`1014 U.S. Provisional Application No. 60/404,783
`1015 Dictionary Definition from WEBSTER’S THIRD NEW INTERNATIONAL
`DICTIONARY OF THE ENGLISH LANGUAGE UNABRIDGED (1986)
`1016 U.S. Patent No. 4,279,306
`1017 K.W. Lagrone, et al., A New Development in Completion Methods,
`SOCIETY OF PETROLEUM ENGINEERING, Paper 530-PA (1963)
`(“Lagrone”)
`
`1009
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`36679580.1
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`i
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`
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`Case IPR2016-00596
`Patent 7,134,505
`
`Description
`Exhibit
`1018 M.J. Eberhard, et al., Current Use of Limited-Entry Hydraulic
`Fracturing in the Codell/Niobrara Formations—DJ Basin, SPE
`(Society for Petroleum Engineering) 29553 (1995)
`1019 Declaration of Christopher D. Hawkes, Ph.D., P.Geo., regarding the
`proceedings of the 7th One-Day Conference On Horizontal Well
`Technology Operational Excellence (Canada November 3, 1999)
`(including Ex. 1004 at 102-110)
`1020 Affidavit of Nancy Chaffin Hunter regarding the proceedings of the
`10th Middle East Oil Show & Conference (Bahrain March 15-18,
`1997) (including Ex. 1002 at 12/26-23/26) – NOT FILED
`1021 Declaration of Rebekah Stacha regarding SPE 37482 (including Ex.
`1002 at Ex. A) – NOT FILED
`1022 Declaration of Rebekah Stacha regarding SPE 49523 (referencing Ex.
`1002 at p. 605, fn.28) – NOT FILED
`9/21/2016 Declaration of Christopher D. Hawkes, Ph.D., P.Geo.,
`regarding the proceedings of the 7th One-Day Conference On
`Horizontal Well Technology Operational Excellence (Canada
`November 3, 1999) (including Ex. 1004 at 102/253-110/253 and
`228/253-236/253) – NOT FILED
`1024 Declaration of Rebekah Stacha regarding SPE 29553 (including Ex.
`1018 at Ex. A) – NOT FILED
`1025 Affidavit of Nancy Chaffin Hunter regarding the proceedings of the
`Joint Rocky Mountain Meeting/Low-Permeability Reservoirs
`Symposium and Exhibition (Denver, CO March 19-22, 1995)
`(including Ex. 1018 at 11/24-21/24) – NOT FILED
`1026 Affidavit of Rodolfo Diaz regarding July 1963 Journal of Petroleum
`Technology (including Ex. 1017 at 695-702) – NOT FILED
`Table Associated with qrySumNetValuebyFamily from Ex. 2051
`(contains PROTECTIVE ORDER MATERIAL)
`
`1023
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`1027
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`36679580.1
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`ii
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`Case IPR2016-00596
`Patent 7,134,505
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`1030
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`1031
`1032
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`Description
`Exhibit
`1028 Affidavit of Nancy Chaffin Hunter, regarding the proceedings of the
`Production Operation Symposium (Oklahoma City, OK April 2-4,
`1995) (including R. Coon and D. Murray, Single-Trip Completion
`Concept Replaces Multiple Packers and Sliding Sleeves in Selective
`Multi-Zone Production and Stimulation Operations, SPE 29539
`(1995))
`(“Coon”)
`1029 March 1, 2017 email from Justin Nemunaitis, confirming RE Packer
`revenue in Ex. 1027 was included in revenue figure reported at Ex.
`2034 at 42:9.
`Transcript of February 28, 2017 Deposition Testimony of Harold R.
`McGowen III (“McGowen”)
`Second Declaration of Ali Daneshy, Ph.D. (“Daneshy2”)
`P.D. Ellis, et al., Application of Hydraulic Fractures in Openhole
`Horizontal Wells, SPE/Petroleum Society of CIM 65464 (2000)
`(“Ellis”)
`1033 M.J. Rees, et al., Successful Hydrajet Acid Squeeze and Multifracture
`Acid Treatments in Horizontal Open Holes Using Dynamic Diversion
`Process and Downhole Mixing, SPE 71692 (Sep. 30, 2001) (citing
`Ex. 1032 at fn. 1)
`January 19, 2017 Letter and Written Interrogatories propounded by
`plaintiffs in Rapid Completions LLC, et al. v. Baker Hughes Canada
`Co., Federal Court File No. T-1569-15) (Ottawa), regarding Canadian
`patent No. CA 2,412,072 (the “Related Canadian Litigation”)
`January 30, 2017 Letter and Responses to Ex. 1034
`Excerpt from February 16, 2017 transcript of Related Canadian
`Litigation
`
`1034
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`1035
`1036
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`36679580.1
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`iii
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`Case IPR2016-00596
`Patent 7,134,505
`Ex. 2021 – Authentication: The Lorraine decision concerns admissibility
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`of electronically-stored information (“ESI”). The disputed ESI appears to have
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`been “e-mail correspondence between counsel” for an arbitration dispute between
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`the parties (Lorraine v. Markel American Ins. Co., 241 F.R.D. 534, 537 (D. Md.
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`2007)), not a document purportedly created by a third party that was produced by
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`a party to the suit. And the page of the Lorraine decision cited by RC is mere
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`dicta. Id. at 552. Regardless, Petitioners did not create Ex. 2021. Thus, there is
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`no basis for the “presumption” of authenticity to which RC retreats. See U.S. v.
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`Brown, 688 F.2d 1112, 1115-1116 (7th Cir. 1982) (rejecting defendant’s argument
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`that business records he produced for a company of which he was president were
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`not authentic). While Ex. 2021 does contain “Rystad Energy” markings
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`throughout, those markings are sponsored solely by attorney argument.
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`Hearsay: Authenticity aside, RC’s reliance on hearsay exception (18) fails
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`because RC cites directly to Ex. 2021 in its POR (Paper 31 at 36), rather than to
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`Mr. McGowen’s citation to Ex. 2021 (on Ex. 2034 page 45/49). Nor does hearsay
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`exception (17) apply; regardless of whether Ex. 2021 is a “market report,” RC has
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`not shown that Ex. 2021 is “generally relied on by the public or by persons in
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`particular occupations.” See Fed. R. Evid. 803(17) (emphasis added). Mr.
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`McGowen’s specialized reliance (uncited by RC in its POR) does not fit the rule.
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`Finally, RC’s purported non-truth-of-the-matter purpose for Ex. 2021 page 10—
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`1
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`that “persons in the field expected the patented technology to have had a
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`significant market share” (Paper 46 at 1-2)—is improper new argument.
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`Rule 703: RC’s Rule 703 argument is misplaced. Paper 46 at 2-3. The rule
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`permits otherwise inadmissible evidence to be disclosed to a jury if a court
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`determines it has sufficient probative value in helping the jury evaluate the opinion
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`the evidence underlies. But, as explained above, Ex. 2021 underlies no opinion
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`by Mr. McGowen that RC relies on its POR. See POR at 34-39.
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`Ex. 2022 – Authentication: RC’s argument that this article is self-
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`authenticating as a periodical under Rule 902 should be rejected as circular. See
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`TRW Automotive U.S. LLC v. Magna Electronics Inc., IPR2014-01347, slip op. at
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`7-8 (Paper 25) (P.T.A.B. Jan. 6, 2016). While the article does have “rigzone” in
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`the URL, there is no evidence about what “rigzone” is or what “the layout” of a
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`typical Rigzone article is. RC thus offers insufficient support for Rule 901(b)(4).
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`Mr. Delaney’s testimony is irrelevant because he is neither the article’s
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`author nor someone with personal knowledge of it. Ex. 2045 at ¶¶ 1, 2, 21. Unlike
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`RC, others have authenticated purported internet articles alleged as secondary
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`considerations evidence with author declarations. See Shimano Inc. v. Globeride,
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`Inc., IPR2015-00273, slip op. at 18, 29 (Paper 40) (P.T.A.B. June 16, 2016).
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`Hearsay: Authenticity aside, RC’s reliance on hearsay exception (18) fails
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`because RC cites directly to Ex. 2022 in its POR (Paper 31 at 28), rather than to
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`2
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`Case IPR2016-00596
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`Mr. McGowen’s citation to Ex. 2022 (on page 46/49 of Ex. 2034).
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`Rule 703: RC’s Rule 703 argument fails because RC does not rely on any
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`testimony by Mr. McGowen that Ex. 2022 underlies, instead citing Ex. 2022
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`directly. See POR at 24-28 (discussing alleged praise).
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`Ex. 2024 – RC’s speculation about the alleged timing of FracPoint’s
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`development relative to when Petitioners allegedly obtained page 13/34 of Ex.
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`2024 is improper new argument. RC’s statement that “Petitioners do not dispute”
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`its copying story is misleading; RC’s unsupported attorney argument merited no
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`“conflicting evidence or testimony.” Moreover, RC did not reveal that in the
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`Related Canadian Litigation (see supra at ii), where RC’s baseless allegation was
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`more substantively raised, a related Canadian entity of Petitioners refuted it. See
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`Ex. 1034 at 1 (1. & 2.) and 3-4 (ques. 1-6 and 8-14); Ex. 1035 at 1 (¶2) and 1-3
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`(responses to ques. 1-6 and 8-14); Ex. 1036 (trial testimony) at 188:5-195:6.
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`Finally, RC fails in its attempt to rebut Petitioners’ explanation of why the
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`alleged copying is irrelevant—at best, it involves the creation of one system
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`(FracPoint) based on another system (StackFRAC), both of which are already in
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`the prior art (Thomson). RC correctly concedes that its “patented invention” is the
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`use of Thomson’s prior art system in an open hole (Paper 46 at 7), but then
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`incorrectly contends that Petitioners’ development of the FracPoint system gives
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`rise to a nexus presumption. Id. at 7-8. That is not what the Federal Circuit held in
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`36679580.1
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`3
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`Case IPR2016-00596
`Patent 7,134,505
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`WBIP.
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`In WBIP, the closest prior art lacked two elements ([B] and [D]) of the
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`seven-element representative system claim, while the accused product lacked none.
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`WBIP, LLC v. Kohler Co., 829 F.3d 1317, 1325-26, 1331 (Fed. Cir. 2016). Thus,
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`there was a difference between the closest prior art and the accused product, but
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`no difference between the accused product and the claim. Id. Here, there is no
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`difference between the FracPoint and Thomson systems (relative to the disputed
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`method claims), and there is a difference between the development of the
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`FracPoint system and its use in an open hole. Just as Petitioners have not
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`attempted to show anticipation of method claims requiring use in an open hole by
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`the mere existence of Thomson, RC cannot show that those same method claims
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`are met by the mere existence of the FracPoint system. See J.T. Eaton & Co. v.
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`Atlantic Paste & Glue Co., 106 F.3d 1563, 1571 (Fed. Cir. 1997). Thus, even if
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`Ex. 2024 suggested copying (it does not), Ex. 2024 would still be irrelevant
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`because it would not support a nexus under WBIP or any other decision.
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`Ex. 2025 – Authentication: Packers Plus’s production of Ex. 2025 does
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`nothing to establish its authenticity. Neither does Mr. Delaney, who works for
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`RC’s counsel, not Packers Plus. See Ex. 2045 at ¶¶ 1, 2; Paper 18. RC has not
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`established that Mr. Delaney has personal knowledge, or is a custodian, of Ex.
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`2025. Finally, RC’s argument that Ex. 2025 is authentic because “it contains
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`Patent 7,134,505
`various markings indicating that it was made by Packers Plus” (Paper 46 at 8) is
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`circular, self-serving attorney argument that merits no weight, especially
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`considering RC is using the document to baselessly allege copying by Petitioners.
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`Relevance: For the same reasons explained above for Ex. 2024, and given
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`RC’s apparent agreement that Ex. 2025 is unnecessary, Ex. 2025 is irrelevant.
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`Ex. 2034 –RC failed to put into evidence a significant amount of the
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`material that would support or contradict Mr. McGowen’s allegations about which
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`elements of the relevant method claims are allegedly met by which Baker Hughes
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`products. Contrary to RC’s suggestion (Paper 46 at 9), without such evidence,
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`there was nothing to cross examine Mr. McGowen about. As a result, RC failed to
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`comply with at least 37 C.F.R. § 42.65, and any such allegations on which RC
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`relied should be excluded (or given little or no weight). RC’s reliance on Rules
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`702 and 703 is misplaced because this is not a dispute about Mr. McGowen’s
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`reliance on otherwise inadmissible evidence; there is no evidence here (at all) –
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`just product names and numbers. Finally, RC’s rebuttal of Petitioners’ relevance
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`objections appears limited to “objective evidence.” Paper 46 at 10-11. RC does
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`not appear to disagree that Mr. McGowen’s other objected-to opinions—in
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`McGowen Ex. 2034 Sections 6, 7, 11, and 12—are, indeed, irrelevant. The rest of
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`RC’s relevance rebuttal is improper new argument that should be ignored.
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`May 5, 2017
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`/Mark T. Garrett/
`Mark T. Garrett
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`36679580.1
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`5
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`CERTIFICATE OF SERVICE
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`Pursuant to 37 C.F.R. § 42.6(e), the undersigned certifies that on May 5,
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`2017, a complete copy of PETITIONERS’ REPLY IN SUPPORT OF MOTION
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`TO EXCLUDE was served on Patent Owner’s Exclusive Licensee via email (by
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`consent), as follows:
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`hhamad@caldwellcc.com
`bcaldwell@caldwellcc.com
`jnemunaitis@caldwellcc.com
`gonsalves@gonsalveslawfirm.com
`rapid@caldwellcc.com
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`
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`/Mark T. Garrett/
`Mark T. Garrett (Reg. No. 44,699)
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`36679580.1
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