`_________________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_________________________
`VIZIO, INC.,
`Petitioner
`
`v.
`INNOVATIVE DISPLAY TECHNOLOGIES LLC.,
`Patent Owner.
`_________________________
`Case No. IPR2016-______
`U.S. Patent No. 7,434,974
`_________________________
`
`PETITIONER’S MOTION FOR JOINDER UNDER 35 U.S.C. § 315(c) AND
`37 C.F.R. §§ 42.22, 42.122(b)
`
`
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`1
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`
`Mail Stop Patent Board
`Patent Trial and Appeal Board
`U.S. Patent and Trademark Office
`P.O. Box 1450
`Alexandria, VA 22313-1450
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`TABLE OF CONTENTS
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`Page
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`I.
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`Introduction ......................................................................................................... 1
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`II. Background ......................................................................................................... 1
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`III. Argument ............................................................................................................. 2
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`A. Legal Standard .............................................................................................. 2
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`B. The Motion for Joinder Is Timely ................................................................ 3
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`C. The Relevant Factors Weigh in Favor of Joinder ........................................ 3
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`1.
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`Joinder is Appropriate .......................................................................... 4
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`2. The VIZIO Petition Proposes No New Grounds of
`Unpatentability ..................................................................................... 5
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`3.
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`Joinder Will Not Negatively Impact the K.J. Pretech IPR Trial
`Schedule ............................................................................................... 6
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`4. Discovery and Briefing Can Be Simplified ......................................... 6
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`IV. Conclusion ........................................................................................................... 7
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`i
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`
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`TABLE OF AUTHORITIES
`
`
`
`Cases
`Dell Inc. v. Network-1 Sec. Sols., Inc.,
`IPR2013-00385, Paper 17 (July 29, 2013) ........................................................... 4
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`Page(s)
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`Hyundai Motor Co. v. Am. Vehicular Scis. LLC,
`IPR2014-01543, Paper No. 11 (Oct. 24, 2014) .................................................... 2
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`K.J. Pretech Co., Ltd v. Innovative Display Technologies LLC,
`IPR2015-01868, Paper 2 (Mar. 17, 2016) ............................................................ 1
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`K.J. Pretech Co., Ltd v. Innovative Display Technologies LLC,
`IPR2015-01868, Paper 11 (Dec. 22, 2015)........................................................... 5
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`K.J. Pretech Co., Ltd v. Innovative Display Technologies LLC,
`IPR2015-01868, Paper 15 (Mar. 17, 2016) ...................................................... 2, 3
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`Kyocera Corp. v. Softview LLC,
`IPR2013-00004, Paper 15 (April 24, 2013) ......................................................... 3
`
`Macronix Int’l Co. v. Spansion,
`IPR2014-00898, Paper 15 (Aug. 13, 2014) .......................................................... 2
`
`Sony Corp. v. Memory Integrity, LLC,
`IPR2015-01353, Paper 11 (Oct. 15, 2015) ........................................................... 7
`
`Statutes
`
`35 U.S.C. § 315(b) ..................................................................................................... 2
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`35 U.S.C. § 315(c) ..................................................................................................... 2
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`Regulations
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`37 C.F.R. § 1.7(a) ....................................................................................................... 3
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`37 C.F.R. § 42.1 ......................................................................................................... 3
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`37 C.F.R. § 42.53 ....................................................................................................... 7
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`37 C.F.R. § 42.101(b) ................................................................................................ 2
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`
`
`ii
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`
`
`TABLE OF AUTHORITIES
`(continued)
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`37 C.F.R. § 42.122 ..................................................................................................... 3
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`37 C.F.R. § 42.122(b) ................................................................................................ 2
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`Page(s)
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`iii
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`I.
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`
`
`Introduction
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`
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`Petitioner VIZIO, Inc. (“VIZIO”) requests institution of review based on its
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`Petition for Inter Partes Review (the “VIZIO Petition”) of U.S. Patent No.
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`7,434,974 (“the ’974 Patent”) filed herewith and joinder with the inter partes
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`review in K.J. Pretech Co., Ltd v. Innovative Display Technologies LLC, IPR2015-
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`01868 (the “K.J. Pretech IPR”). The VIZIO Petition is practically a copy of the
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`petition in the K.J. Pretech IPR—the challenged claims, grounds of
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`unpatentability, prior art, substantive arguments, and expert declaration are
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`identical. See K.J. Pretech IPR, Paper 2 (Sept. 11, 2015) (the “K.J. Pretech
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`Petition”). As described below, joinder is warranted because it will efficiently
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`resolve the patentability of the challenged claims of the ’974 Patent in a single
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`proceeding, without prejudicing the parties to the K.J. Pretech IPR or adding to the
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`burden of the Board.
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`II. Background
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`On December 31, 2013, Patent Owner Innovative Display Technologies
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`sued VIZIO for infringement of the ’974 Patent in Delaware Display Grp. LLC v.
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`VIZIO, Inc., No. 1:13-cv-02112 (D. Del.). On September 11, 2015, K.J. Pretech
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`Co., Ltd (“K.J. Pretech”) filed the K.J. Pretech Petition. The Board instituted inter
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`partes review based on the K.J. Pretech Petition on March 17, 2016, finding a
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`1
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`reasonable likelihood of unpatentability as to claims 1, 3–5, 7, 8, 10, and 11 of the
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`’974 Patent. K.J. Pretech IPR, Institution Decision, Paper 15 at 25–26.
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`III. Argument
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`A.
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`Legal Standard
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`The Board has the authority to join as a party any person who properly files
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`a petition for inter partes review to an instituted inter partes review. 35 U.S.C.
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`§ 315(c). Normally, a petition for inter partes review filed more than one year
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`after the petitioner (or the petitioner’s real party-in-interest or privy) is served with
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`a complaint alleging infringement of the patent is barred. See 35 U.S.C. § 315(b);
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`37 C.F.R. § 42.101(b). The one-year time bar, however, does not apply to a
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`petition filed with a motion for joinder. See 35 U.S.C. § 315(b); 37 C.F.R.
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`§ 42.122(b). A motion for joinder must be filed within one month of institution of
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`any inter partes review for which joinder is requested. 37 C.F.R. § 42.122(b). In
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`addition, the Board considers the following factors in deciding whether to grant a
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`motion for joinder: (1) the reasons why joinder is appropriate; (2) whether the
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`party to be joined has presented any new grounds of unpatentability; (3) what
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`impact, if any, joinder would have on the trial schedule for the existing review; and
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`(4) how briefing and discovery may be simplified. See, e.g., Hyundai Motor Co. v.
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`Am. Vehicular Scis. LLC, IPR2014-01543, Paper No. 11 at 3 (Oct. 24, 2014);
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`Macronix Int’l Co. v. Spansion, IPR2014-00898, Paper 15 at 4 (Aug. 13, 2014)
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`2
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`
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`(quoting Kyocera Corp. v. Softview LLC, IPR2013-00004, Paper 15 at 4 (April 24,
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`2013)).
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`B.
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`The Motion for Joinder Is Timely
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` The Motion for Joinder is filed within the one-month time period from
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`Institution in the K.J. Pretech IPR. See 37 C.F.R. § 42.122; K.J. Pretech IPR,
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`Institution Decision, Paper 15 (Mar. 17, 2016). Specifically, one month after the
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`Institution of the K.J. Pretech IPR is April 17, 2016, which is a Sunday. Under 37
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`C.F.R. § 1.7(a), “[w]hen the day, or the last day fixed by statute or by or under this
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`part for taking any action . . . falls on . . . Sunday . . . the action may be taken, or
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`the fee paid, on the next succeeding business day . . . . ” See also 37 C.F.R. § 42.1
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`(stating that § 1.7 “appl[ies] to proceedings before the Board”). Accordingly, the
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`present Motion for Joinder is timely as it is filed the next business day after April
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`17, 2016.
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`C.
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`The Relevant Factors Weigh in Favor of Joinder
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`Each of the four factors considered by the Board weighs in favor of joinder.
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`As established below, granting joinder will not enlarge the scope of the K.J.
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`Pretech IPR and will not negatively impact the K.J. Pretech IPR schedule or
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`prejudice Patent Owner. But a decision denying joinder could severely prejudice
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`Petitioner. Thus, joinder is appropriate and warranted.
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`3
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`1.
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`Joinder is Appropriate
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`Joinder with the K.J. Pretech IPR is appropriate because the VIZIO Petition
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`is virtually identical to the K.J. Pretech IPR Petition, challenging the same claims
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`of the ’974 Patent, relying on the same expert declaration, and citing the same
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`grounds and combinations of prior art submitted in the K.J. Pretech IPR Petition.
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`The only differences between the K.J. Pretech and VIZIO Petitions are related to
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`formalities of different parties filing a petition. Because these proceedings are
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`substantively identical, joinder is appropriate so that the Board can efficiently
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`resolve all grounds in both the K.J. Pretech IPR Petition and VIZIO Petition in a
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`single proceeding. Dell Inc. v. Network-1 Sec. Sols., Inc., IPR2013-00385, Paper
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`17 (July 29, 2013) at 7, 10 (noting “policy preference for joining a party that does
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`not present new issues that might complicate or delay an existing proceeding”).
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`Moreover, VIZIO could be prejudiced if joinder is denied. For example,
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`absent joinder, should K.J. Pretech cease to participate in the K.J. Pretech IPR, the
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`IPR may be terminated despite the Board having already found a reasonable
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`likelihood of unpatentability as to claims 1, 3–5, 7, 8, 10, and 11 of the ’974
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`Patent, and despite VIZIO’s continuing interest in the patentability of the ’974
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`Patent. As noted above, the Patent Owner has asserted the ’974 Patent against
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`VIZIO in the United States District Court for the District of Delaware, with trial
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`scheduled in 2017. If the K.J. Pretech IPR is terminated prematurely, unless
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`4
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`VIZIO’s petition is joined, the efforts and expertise of the Board in evaluating the
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`’974 patent will be lost. VIZIO, without the benefit of the Board’s expertise, will
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`then be required to expend substantial more resources to litigate at trial the same
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`prior art and arguments that the Board has already acknowledged set forth a
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`reasonable likelihood of unpatentability of the ’974 Patent claims.
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`On the other hand, the parties to the K.J. Pretech IPR will not be prejudiced
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`by joinder. K.J. Pretech does not oppose this Motion for Joinder. Nor will Patent
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`Owner be prejudiced as its Patent Owner Preliminary Response filed in the K.J.
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`Pretech IPR addresses all issues in the VIZIO Petition. See KJ Pretech IPR, Patent
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`Owner’s Preliminary Response, Paper 11 (Dec. 22, 2015). Patent Owner will not
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`be required to provide any additional analysis or arguments in its Patent Owner
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`Response as a result of VIZIO’s joinder. Given that VIZIO is relying on the same
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`art, arguments, and evidence as K.J. Pretech, its joinder in an understudy role will
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`not impact Patent Owner, put it to any additional expense, or create any delay.
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`Accordingly, joinder is appropriate.
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`2.
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`The VIZIO Petition Proposes No New Grounds of Unpatentability
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`As described above, the VIZIO Petition is substantively identical to the K.J.
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`Pretech Petition, presenting the same grounds of unpatentability, challenging the
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`same claims of the ’974 Patent, and being based on the same prior art references,
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`the same arguments, and the same expert declaration.
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`5
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`3.
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`Joinder Will Not Negatively Impact the K.J. Pretech IPR Trial
`Schedule
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`Because the VIZIO Petition is substantively identical to the KJ PreTech
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`Petition, there are no new issues for Patent Owner to address and Patent Owner
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`will not be required to present any additional responses or arguments. Without any
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`new issues, there is no reason to delay or alter the trial schedule already present in
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`the K.J. Pretech IPR, and VIZIO consents to the existing trial schedule. As stated
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`further below, VIZIO explicitly agrees to take an “understudy” role, and coordinate
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`any involvement through counsel for K.J. Pretech. As such, VIZIO’s joinder will
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`have no impact on the proceeding or the upcoming trial.
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`4.
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`Discovery and Briefing Can Be Simplified
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`The K.J. Pretech and VIZIO Petitions present substantively identical
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`grounds of rejection, including the same art combinations against the same claims.
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`To simplify discovery and briefing, VIZIO explicitly agrees to take an
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`“understudy” role:
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`(a) all filings by VIZIO in the joined proceeding will be consolidated
`with K.J. Pretech’s filings, and VIZIO will work through counsel for
`K.J. Pretech, unless a filing solely concerns issues that do not involve
`K.J. Pretech;
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`(b) VIZIO shall not be permitted to raise any new grounds not already
`instituted by the Board in the K.J. Pretech IPR, or introduce any
`argument or discovery not already introduced by K.J. Pretech;
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`6
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`(c) VIZIO shall be bound by any agreement between Patent Owner
`and K.J. Pretech concerning discovery and/or depositions; and
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`(d) VIZIO at deposition shall not receive any direct, cross
`examination or redirect time beyond that permitted for K.J. Pretech
`alone under either 37 C.F.R. § 42.53 or any agreement between Patent
`Owner and K.J. Pretech.
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`See, e.g., Sony Corp. v. Memory Integrity, LLC, IPR2015-01353, Paper 11 at 6–7
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`(Oct. 15, 2015). VIZIO will assume the primary role only if K.J. Pretech ceases to
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`participate in the K.J. Pretech IPR. By accepting an “understudy” role, Patent
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`Owner, K.J. Pretech, and VIZIO can comply with the current schedule and avoid
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`any duplication of effort by the Board or Patent Owner.
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`IV. Conclusion
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`Based on the factors outlined above, VIZIO requests the Board institute
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`review based on the VIZIO Petition and grant VIZIO’s Motion for Joinder with the
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`K.J. Pretech IPR.
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`Dated: April 18, 2016
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`Respectfully submitted,
`
`
`
`/Brian M. Buroker/
`
`By:
`
`Brian M. Buroker (Reg. No. 39,125)
`Blair A. Silver (Reg. No. 68,003)
`GIBSON, DUNN & CRUTCHER LLP
`1050 Connecticut Avenue, N.W.
`Washington, DC 20036-5306
`Telephone: 202.955.8500
`bburoker@gibsondunn.com
`bsilver@gibsondunn.com
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`Attorneys for Petitioner VIZIO, Inc.
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`8
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`CERTIFICATE OF SERVICE
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`The undersigned certifies service pursuant to 37 C.F.R. § 42.6(e) on the
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`Patent Owner by Federal Express of a copy of this Motion for Joinder upon the
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`following:
`
`Donald L. Otto, Esq.
`Renner, Otto, Boisselle & Sklar, LLP
`1621 Euclid Avenue
`19th Floor
`Cleveland OH 44115
`Customer Number: 93969
`
`Justin B. Kimble
`Bragalone Conroy PC
`2200 Ross Ave.
`Suite 4500 – West
`Dallas, TX 75201
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`
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`Mr. Otto is being served because he is listed under the Correspondence
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`Address for the ’974 Patent. Mr. Kimble is counsel of record for Patent Owner in
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`Respectfully submitted,
`
`
`
`/Brian M. Buroker/
`By:
` Brian M. Buroker (Reg. No. 39,125)
`GIBSON, DUNN & CRUTCHER LLP
`1050 Connecticut Avenue, N.W.
`Washington, DC 20036-5306
`Telephone: 202.955.8541
`Facsimile: 202.467.0539
`bburoker@gibsondunn.com
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`
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` Attorney for Petitioner VIZIO, Inc.
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`9
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`IPR2015-01868.
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`Dated: April 18, 2016