throbber
UNITED STATES PATENT AND TRADEMARK OFFICE
`_______
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_______
`
`DELL INC.; RIVERBED TECHNOLOGY, INC.; HEWLETT-PACKARD
`ENTERPRISE CO,; HP ENTERPRISE SERVICES, LLC; TERADATA
`OPERATIONS, INC.; ECHOSTAR CORPORATION; HUGHES NETWORK
`SYSTEMS, LLC; and VERITAS TECHNOLOGIES, LLC,
`Petitioners,
`
`v.
`
`REALTIME DATA LLC,
`Patent Owner.
`____________
`
`Case IPR2016-00972 (Patent 7,415,530 B2)
`Case IPR2016-01002 (Patent 9,116,908 B2)
`____________
`
`Record of Oral Hearing
`Held: July 25, 2017
`___________
`
`
`Before: J. JOHN LEE, JASON J. CHUNG, and KEVIN C. TROCK,
`Administrative Patent Judges.
`
`
`
`
`
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`

`

`Case IPR2016-00972 (Patent 7,415,530 B2)
`Case IPR2016-01002 (Patent 9,116,908 B2)
`
`
`A P P E A R A N C E S
`
` ON BEHALF OF THE PETITIONERS, DELL INC., et al:
` ANDREW R. SOMMER, ESQUIRE
` MICHAEL WOODS, ESQUIRE
` WINSTON & STRAWN
` 1700 K Street, NW
` Washington, DC 20006
` 202.282.5863
`
` ON BEHALF OF THE PATENT OWNER, REALTIME DATA, LLC:
` WILLIAM P. ROTHWELL, ESQUIRE
` KAYVAN B. NOROOZI, ESQUIRE
` NOROOZI, PC
` 2245 Texas Drive, Ste. 300
` Sugar Land, Texas 77479
` 281.566.2685
`
`
`
`
`The above-entitled matter came on for hearing on Tuesday, July 25,
`2017, at the U.S. Patent and Trademark Office, 600 Dulany Street, Alexandria,
`Virginia, in Courtroom A, at 1:00 p.m.
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` P R O C E E D I N G S
` JUDGE LEE: Welcome, everyone, to the Patent
` Trial and Appeal Board. This is the oral hearing in
` IPR2016-00972 concerning U.S. Patent 7,415,530 and IPR
` 2016-01002 concerning U.S. Patent No. 9,116,908. Let's
` start with appearances by Counsel. Counsel for
` Petitioner, if you could make sure to speak at the
` podium. Thank you.
` MR. SOMMER: Thank you, Your Honor. Andrew
` Sommer on behalf of Petitioner.
` JUDGE LEE: Thank you, Mr. Sommer. And Counsel
` for Patent Owner?
` MR. ROTHWELL: Good afternoon, Your Honor.
` William Rothwell, lead counsel for Realtime. I'm joined
` by my partner, Kayvan Noroozi.
` JUDGE LEE: Thank you, Mr. Rothwell. As stated
` in the trial hearing order, each side will have 45
` minutes to present your case. Petitioner, you may
` reserve time for rebuttal. Do you intend to do that?
` MR. SOMMER: Yes, Your Honor. I'd like to
` reserve 18 minutes for rebuttal.
` JUDGE LEE: I appreciate that you're keeping my
` math skills sharp.
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` MR. SOMMER: I do what I can.
` JUDGE LEE: You said eighteen minutes, right?
` MR. SOMMER: Yes, Your Honor.
` JUDGE LEE: Just before the parties begin, I'd
` like to remind you that one of the judges, Judge Trock,
` is attending remotely, so please speak at the podium
` into the microphone to make sure that he can hear you.
` Also, be aware that Judge Trock cannot see the
` projection screen that's in this room; however, he does
` have a full copy of the entire record, as well as an
` electronic copy of the parties' demonstratives.
` So Mr. Sommer, whenever you're ready, you may
` begin.
` MR. SOMMER: Thank you, Your Honor. We
` actually have some hard copies of the slides, if the
` bench would like them. If not, I'm happy to take them
` back.
` JUDGE LEE: I personally don't need them.
` Judge Chung?
` MR. SOMMER: You would like one? Sure. May I
` approach?
` JUDGE LEE: Yes.
` MR. SOMMER: Thank you.
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` JUDGE LEE: If you haven't already, if you
` could provide a copy to the court reporter, as well.
` MR. SOMMER: We have, Your Honor.
` JUDGE LEE: Thank you.
` MR. SOMMER: Thank you. As I mentioned before,
` Andrew Sommer, on behalf of Petitioner. And we're here
` to discuss Realtime's '530 and '908 patents. We submit
` that these two patents are directed to an exceedingly
` simple concept in an age-old goal of ensuring that a
` particular type of system performed faster than it
` otherwise could. And in this particular type of system,
` we're dealing with data compression. This, as the
` record shows, was a textbook reason to use data
` compression in the first place, to ensure that an
` overall storage process occurred faster than it
` otherwise could.
` Now, Patent Owners suggest that there was some
` innovation in ensuring that the system was faster and
` that the innovation is rooted in the fact that there are
` two types of data blocks being compressed, using two
` different techniques. The record shows and there is
` evidence from both Patent Owners' expert and our expert
` that the selection of compression techniques to achieve
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` this goal was routine and easily understood.
` So with that, we'd like to take a look first at
` the '530 patent. And this is the same figure in both
` proceedings, actually, for the '908 patent and the '530
` patent; we have Figure 8 here. And this is the
` exemplary embodiment disclosed in the specification for
` achieving this particular goal of the claims.
` JUDGE LEE: Sorry to interrupt. If you could
` make sure to identify which slides you're referring to,
` that would help Judge Trock.
` MR. SOMMER: Thank you for the reminder, Your
` Honor. This is slide 3 of the demonstrative sets served
` by the Petitioner in the 0972 and 1002 proceedings. And
` this shows Figure 8 of the '530 patent and '908 patents
` and discloses really how this goal was achieved by the
` patented embodiment.
` What you have here is you receive an input data
` stream. You're going to count the number of blocks in
` that data stream. And then, on a block-by-block basis,
` you're going to feed it into a number of encoders.
` You're going to encode the entire block. Then you're
` going to count the number of bits upon the output;
` you're going to quantify the amount of compression.
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` You're going to go into block 35, as shown on this
` slide, and you're going to determine the compression
` ratio. You're going to do a comparison. You're going
` to pick the best compression.
` And that is, as everyone knows -- and as shown
` by Osterlund in the record, as well as the Nelson
` textbook, Dr. Creusere's testimony -- that the less data
` you have, the faster your storage is going to be.
` Because the storage device -- and I think the Patent
` Owner would agree with us on this -- the storage device
` by which you measure the faster than is the same storage
` device that you would use in determining whether
` something was slower. So you look at a device without
` compression, and you say, Okay, this is how long it took
` me to store the data. Then you're going to look at the
` device with the compression and you're going to say,
` Well, was the overall net compression and storage faster
` than? That's Osterlund's goal.
` And Osterlund does this very well, because it
` uses quite a slow storage device, an optical disk
` device. Those of us may remember trying to burn CDs,
` which was an exceedingly slow process. And that's
` really what Osterlund is geared toward trying to speed
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` up. We're going to compress that data, we're going to
` do it with negligible delay, and we're going to speed up
` the overall storage and compression process. So we get
` faster overall data storage. And that is what the '530
` patent is doing, as well.
` JUDGE LEE: Mr. Sommer, the reference you're
` trying to combine with Osterlund and Franaszek, it has
` quite a different approach to compression, and its
` compression method involves quite a few more steps,
` multiple compression algorithms, etc. Doesn't that
` impact the teaching in Osterlund that the time for
` compression is negligible? Wouldn't that statement in
` Osterlund come under question because of Franaszek's
` changes?
` MR. SOMMER: We submit not. And I think the
` most solid evidence and the most objective evidence in
` the record of this is the '530 patent and the '908
` patent themselves, which says, We're going to go out and
` we're going to pick any suitable compression technique.
` You can look at Dr. Zeger's testimony at pages 46 and 47
` of the record. One of ordinary skill in the art
` absolutely knew how to choose the compression techniques
` to achieve that faster than goal.
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` So while you may look at Osterlund and say,
` Well, he's got a single block-type compression or a Stac
` compressor -- S-t-a-c -- type compressor, and he doesn't
` say, Well, we're going to encode a diverse stream or use
` multiple techniques. Yes, that may add some delay in an
` actual physical implementation of Osterlund, but that is
` not an insurmountable problem that one of ordinary skill
` in the art wouldn't have been able to solve without the
` exercise of simple and, we submit, non-inventive work,
` right, to sample these compression algorithms, to
` investigate which ones are faster for particular data
` types and which ones are not.
` JUDGE LEE: But if the goal really is speed,
` and that's your number one concern, why would a person
` of ordinary skill seek to introduce all the different
` ideas in Franaszek of using different compression
` techniques, etc., if that's going to introduce delay?
` MR. SOMMER: Well, we submit that a person of
` ordinary skill in the art reading Franaszek would not
` see Franaszek as being necessarily a slow system. There
` are a number of teachings in Franaszek that actually
` convey to one of ordinary skill in the art -- these are
` discussed in paragraph 166 of Dr. Creusere's
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` declaration -- where Franaszek is talking about, Let's
` do this in parallel; let's sample only five percent of
` the data block.
` So we're going to look at this very quickly and
` we're going to guess, based on that sampling and
` parallel processing of encoders that are tailored to the
` data type, you know, from what he calls a CML, or a
` compression method list, what compression technique to
` use. And then he's going to compress that data as much
` as possible, which is going to speed up the overall
` storage process. I think everybody agrees with that.
` So a person of ordinary skill in the art
` looking at these teachings in combination would not be
` led away from a combination of making it faster or
` ensuring it's faster, because, as Petitioner concedes,
` Franaszek is silent as to speed, but there are telltale
` signs that one of ordinary skill in the art would see
` from the references themselves that they are geared
` toward doing this at least relatively quickly; we're not
` looking for compression regardless of the time costs.
` That's certainly not Franaszek's teaching.
` JUDGE TROCK: Counsel, excuse me for a second.
` But you just said two inconsistent things: You just
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` said that Franaszek taught to compress as much as
` possible. And now you're saying that the compression is
` relative. Which is it?
` MR. SOMMER: I'm sorry; compression is relative
` with respect to --
` JUDGE TROCK: Well, with respect to speed. So
` if Franaszek is teaching you to compress as much as
` possible, the more compression you spend time doing,
` doesn't that take longer?
` MR. SOMMER: Okay. So the testimony in the
` record on that, Your Honor, is that it may generally
` take longer; that's what Dr. Zeger says, generally. How
` much longer, I think it really does depend on how much
` you look at the storage device itself. If it's a really
` slow device, ten times compression is going to be ten
` times faster storage. And so when you're talking about
` the net of compression and storage, you're looking at a
` device where you're going to save ten times as much time
` in the storage process. Does that answer your question?
` JUDGE TROCK: No. But so, if you're suggesting
` to compress as much as possible, doesn't that take
` longer to compress more or longer? Doesn't it take more
` time to do more compression?
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` MR. SOMMER: The answer is, generally, yes.
` JUDGE TROCK: Isn't that what Franaszek is
` teaching you?
` MR. SOMMER: The answer is, generally, yes.
` But I do not think that the record bears out that that
` is the teaching of Franaszek, to always compress to the
` maximum extent possible, regardless of any kind of time
` considerations. Because Franaszek's starting point is a
` compression method list. It's a list. It's not all
` possible compression. We're not going to sample this
` wide range of compressions. We're going to select the
` best from the list that he's given.
` As we can see -- and I'm going to go on to
` Figure 2 of Franaszek. This is slide 12, Your Honor,
` from our presentation. There is something that he calls
` a compression method table, and that is a defined table
` of a set of compression algorithms. These are the same
` algorithms in the '530 patent that they call suitable
` for implementing the invention, run-length encoding,
` Lempel-Ziv encoding.
` So one of ordinary skill in the art would not
` necessarily look at Franaszek, and say, Well, Franaszek,
` not relevant, because he's selecting the best. The '530
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` patent chooses the best. It does a sampling of parallel
` encoders. It looks at the data block and it outputs the
` most compressed. Why? Because that goes into one of
` the variables that you're looking at, according to the
` claim language, which is you're going to store faster.
` JUDGE LEE: Counsel, I think I understand your
` general point. Your point is that compressing, by
` itself, makes the overall process of compression plus
` storage faster because you have less data to store. And
` so your argument is that a person of ordinary skill in
` the art would select techniques such that the overall
` time is faster, even if the individual compression
` component of that is slower. So I get that.
` MR. SOMMER: That's exactly our point.
` JUDGE LEE: The question is why would a person
` of ordinary skill even mess with that? Because you've
` got two pieces of prior art. You've got Franaszek and
` you've got Osterlund. They really have two very
` different goals in mind. Franaszek is concerned with
` maximizing compression ratio. Maybe not at the cost of
` everything else, maybe not. But my point is that it is
` a very different focus than Osterlund. And if, indeed,
` the goal is speed, why even bother with Franaszek?
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` Franaszek does not teach, I think you would agree, that
` implementing the Franaszek method gives you increased
` speed; it just doesn't say anything about that. You
` agree with that, right?
` MR. SOMMER: We do agree with that, Your Honor,
` the latter part there. But we don't agree that they
` actually teach something very different. I think that
` is a bone of contention between the parties here.
` Because Osterlund is achieving this faster overall
` storage rate by compressing the data, and the more you
` compress the data, the faster the storage is going to
` be.
` And so with Osterlund's teaching of let's
` employ a compressor that is going to inject negligible
` delay, we are going to speed up the overall storage
` process.
` JUDGE LEE: So really, doesn't that lead away
` from Franaszek? Because Franaszek, as compared to other
` types of compression, a single compression scheme, for
` example, it is less negligible; isn't that true?
` MR. SOMMER: I'm sorry; less negligible than
` Osterlund?
` JUDGE LEE: Yes. So the types of compression
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` that Osterlund talks about, that is more negligible --
` if you want to use that terminology -- than what
` Franaszek teaches, right?
` MR. SOMMER: I think that's hard to quantify
` just in the abstract, because the rate at which certain
` types of data is compressed is going to depend on the
` data type, and the particular type of encoding that
` you're trying to use on it. Because data compression is
` trying to prey on redundancies in data and things like
` that to try to shrink the data size.
` So in the abstract, I don't think that that's
` necessarily a true statement, but certainly --
` JUDGE LEE: Looking at the evidence of record,
` Dr. Zeger does testify to that effect, at least as I
` understand it. And Dr. Creusere seems to punt. He
` seems to say you don't know. So what evidence do we
` have in the record that a person of ordinary skill in
` the art would look at these two references and say,
` Well, I could still do what Franaszek teaches and still
` come out faster? Where is that teaching?
` MR. SOMMER: The teaching that you can still
` implement Franaszek just as it is and still come out
` faster? You need to look at paragraphs 157 of Dr.
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` Creusere's testimony. There's some discussion of this
` at paragraph 132. And then 164 through, I believe, 168
` of his declaration talks about how a person of ordinary
` skill in the art would implement these encoders in
` Franaszek.
` And I understand that Patent Owner has an
` argument that we haven't provided adequate detail about
` exactly how you go and insert this algorithm and provide
` an actual underlying data showing that it would be
` faster. We submit that's not the law, that's not the
` burden that we must carry in this proceeding.
` So with respect to Osterlund -- and we find
` that this is one of the key teachings here for why a
` person of ordinary skill in the art would look to the
` combination of references to simply make a faster
` Franaszek. And we see that the compressor in Osterlund
` is being used in combination with an optical storage
` device --
` JUDGE TROCK: Counsel, if I can interrupt, if
` you're looking at a different slide, I need to know
` which one you're looking at.
` MR. SOMMER: Yes, I'm sorry, Your Honor. 13.
` So we have an optical disk storage system method
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` disclosed, and it permits data storage and retrieval
` operations on an optical disk to occur at a faster rate
` than would otherwise be possible. He goes on to say,
` The write task can be completed faster because the
` compression operation has reduced the amount of data
` which must be stored.
` On to slide 14, we see Osterlund's teaching
` that the compression module is capable of compressing
` and decompressing data with negligible delay so that we
` get an overall faster rate of data storage.
` And this is the calculation that we submit is
` blatantly obvious to a person of ordinary skill in the
` art, because they're familiar with these types of data
` compression systems and they're familiar with how
` particular types of compression interact with particular
` types of data.
` So we submit that the combination of Franaszek
` and Osterlund, first of all, is not taught away by
` Franaszek. I think you need to tease even that notion
` out of the references, and we submit that that would be
` incorrect; there is no statement in Franaszek that says
` don't do it faster or don't do it slower. It's not a
` teaching-away.
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` And Patent Owner, in their paper, cites this
` Plas-Pak decision. And the Plas-Pak decision is a
` non-precedential federal circuit decision that cites one
` other case, and that case is plainly a teaching-away
` case.
` Franaszek is not teaching away from this
` combination. We submit that that is just clear in the
` language of Franaszek. To the extent that there is some
` implicit tension in Franaszek between obtaining maximum
` compression at all costs and always obtaining -- let's
` get the best compression no matter what, and time, we
` submit that that's actually contradicted by other
` language in Franaszek.
` JUDGE LEE: Now, Mr. Sommer, I tend to agree
` with you that there's no teaching-away here, because
` there's no active or explicit criticism or
` disparagement, but I don't think that's really Patent
` Owner's argument, at least not as I understood it. They
` seem to be saying not so much that there is a
` teaching-away, but that there is a lack of a motivation
` to combine. So how do you address that?
` MR. SOMMER: Well, the motivation to ensure
` that any system is faster is one that the courts have
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`Case IPR2016-00972 (Patent 7,415,530 B2)
`Case IPR2016-01002 (Patent 9,116,908 B2)
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` found to be a hornbook law type of a reason why you
` would make a modification to assist them in the first
` place. We've cited cases in our petition to this
` effect, Dystar being one of them. Even though that
` predated KSR and has a bit of a different type of
` analytical flavor to it than the standard TSM test does,
` so we submit that that is still good law. Sakraida,
` from the Supreme Court, saying, you know, if something
` is made faster than, you know, the prior
` implementations, that is a typical reason to find
` something obvious.
` And so, you know, in terms of those legal
` motivations, those exist. But we also submit that the
` record evidence from Dr. Creusere is that there is
` advantage to user experiences to reducing system latency
` in slow -- you know, when you have slower storage
` systems. There are perceivable advantages to making
` computers faster. It is a goal of Intel for, you know,
` decades to make computers faster, and this is the type
` of system that would make data storage faster;
` therefore, enhancing the user experience, reducing
` system latency. You can go through the numerous reasons
` in Dr. Creusere's declaration that are spelled out in
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`Case IPR2016-01002 (Patent 9,116,908 B2)
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` the petition as to what the benefits would be. So why
` would someone strive for this goal of the claim?
` JUDGE LEE: What about reasonable expectation
` of success? That is something else that Patent Owner
` brings out. What evidence do you have that a person of
` ordinary skill -- and based on your contention; start
` with Franaszek -- want to make it faster but reasonably
` expect that that's what you would be able to achieve?
` MR. SOMMER: So the record evidence, we submit,
` is not that someone skilled in the art would be so
` befuddled by this question that they would just throw up
` their hands and start grabbing compression algorithms
` and testing them willy-nilly. And the three pieces of
` evidence that we point to that are the strongest to
` support the reasonable expectation of success is, number
` one, the patent itself. The patent itself rebuts that
` argument very, very plainly, as we pointed out in our
` reply. It says, Select any known compression
` techniques, as long as they meet the requirements of the
` claim.
` Well, to the extent that that is the key
` teaching of the patent, an invitation to go out and
` select them from the prior art, they have contributed
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`Case IPR2016-01002 (Patent 9,116,908 B2)
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` nothing to the underlying technology, if that's the
` invention. And that's at column 11 in the patent.
` Number two, Dr. Creusere says how routine it
` would be to select efficient coding algorithms. That's
` at paragraph 166 of his declaration. And Dr. Zeger, in
` his deposition, pages 46 to 47, said, A person of
` ordinary skill in the art would know which algorithms to
` go out and pick to meet the language of claim 1. And if
` that's the case, we submit there is no, you know,
` unexpected results; that a person of ordinary skill in
` the art is merely exercising skill as a skillful
` mechanic and not that of an inventor, to turn a phrase
` from the Supreme Court.
` JUDGE TROCK: Let's assume what you're just
` saying is true. So where's the connection to using
` multiple compression techniques? Why would someone do
` that?
` MR. SOMMER: Well, Franaszek teaches the use of
` multiple compression techniques to handle robust data
` streams and be able to compress a wide variety of data.
` And we all know from the teachings of --
` JUDGE TROCK: But you also agree that Franaszek
` does not talk about speed or saving time?
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` MR. SOMMER: Franaszek does not explicitly --
` JUDGE TROCK: Why would you go to Franaszek,
` which is teaching multiple compression techniques, and
` combine that with Osterlund? Why?
` MR. SOMMER: We're not combining Franaszek with
` Osterlund. We're not taking Franaszek and putting it
` into Osterlund. We're taking a concept from Osterlund
` that the person of ordinary skill in the art would have
` had before him or her when they're sitting there
` contemplating data compression and saying, Well, I've
` already got this got system with multiple techniques;
` how do I ensure it's not going to lag up my system? How
` am I going to ensure that this is not introducing an
` amount of latency that's going to be a drawback from a
` user experience, for example?
` That's what we're submitting would have been
` obvious, based on this. We're going to select the
` compression algorithms that introduce negligible delay.
` We're going to make sure we don't plug that compressor
` into this system in a way that's going to slow things
` down.
` JUDGE TROCK: But couldn't you accomplish that
` with just one compression technique? Why make the leap
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`Case IPR2016-00972 (Patent 7,415,530 B2)
`Case IPR2016-01002 (Patent 9,116,908 B2)
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` to two?
` MR. SOMMER: Well, I don't think it's actually
` a leap, Your Honor, to go to two, because that's what
` Franaszek is talking about. It's talking about
` compressing multiple data types using multiple
` compression algorithms that are tailored to the type.
` JUDGE TROCK: But you agree that Franaszek
` doesn't suggest that that would increase the speed?
` MR. SOMMER: Well, I don't -- well, I do agree
` with that, yes. Absolutely. But I don't think that
` that's a requirement of the claims that, because of the
` summed combination of these compression techniques,
` speed is increased by the additive power. I think that
` the claim just says, You're going to have a first data
` block, a second data block, you're going to compress
` them with two different data types, and the end result
` is that that data stream is stored faster than it
` otherwise could be without the compression involved.
` And it's not triggered -- there's no causal relationship
` from the fact you're using two to do the faster than.
` JUDGE LEE: So Mr. Sommer, just to make sure I
` have your argument, tell me if this is a fair
` characterization: So what you seem to be saying is that
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`Case IPR2016-00972 (Patent 7,415,530 B2)
`Case IPR2016-01002 (Patent 9,116,908 B2)
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` a person of ordinary skill in the art at the time, let's
` start with Franaszek, which already has multiple
` compression techniques and would just have the
` motivation to make it faster because faster is better.
` And Osterlund says faster is better. But then take from
` Osterlund the idea that compressing more can lead to
` some increase in speed.
` And then a person of ordinary skill would go
` from there to just know from their experience and their
` expertise which ones to pick, which algorithms to pick
` in order to achieve an overall increase in speed of
` compression plus storage. And the evidence for that
` leap at the end is pretty much your expert's testimony,
` for the most part. Is that fair?
` MR. SOMMER: I agree with everything except for
` the leap at the end being only our expert's testimony.
` As I mentioned, you know, Dr. Zeger testified that it
` would have been -- you know, the routine skill in the
` art would have led you to the right algorithms. And
` then the '530 patent itself invites you to go look at
` conventional algorithms.
` So with those three pieces of evidence, I think
` your overall summary of our argument is accurate, but
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`Case IPR2016-01002 (Patent 9,116,908 B2)
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` the evidentiary underpinnings for the reasons how we get
` there, I think it's a little bit more elaborate than
` that.
` JUDGE LEE: So fair enough. So, basically,
` what I said earlier in terms of characterization, plus,
` that, at the end, it's not only your expert's testimony
` but also admissions from Dr. Zeger as w

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