`_______
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_______
`
`AM GENERAL LLC,
`Petitioner,
`
`v.
`
`UUSI, LLC,
`Patent Owner.
`_______
`
`IPR2016-01049 (U.S. Patent No. 5,570,666)
`IPR2016-01050 (U.S. Patent No. 6,148,258)
`IPR2016-01051 (U.S. Patent No. 5,729,456)
`_______
`
`Record of Oral Hearing
`Held: August 2, 2017
`
`
`
`
`
`Before PHILLIP J. KAUFFMAN, MEREDITH C. PETRAVICK, and JAMES
`J. MAYBERRY, Administrative Patent Judges.
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`IPR2016-01049 (U.S. Patent No. 5,570,666)
`IPR2016-01050 (U.S. Patent No. 6,148,258)
`IPR2016-01051 (U.S. Patent No. 5,729,456)
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`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER, AM GENERAL LLC:
`
`
`NICOLE M. JANTZI, ESQUIRE
` IAN B. BROOKS, ESQUIRE
` PAUL M. SHOENHARD, ESQUIRE
` MCDERMOTT WILL & EMERY LLP
` The McDermott Building
` 500 North Capitol Street, N.W.
` Washington, D.C. 20001
` (202) 756-8223
`
`ON BEHALF OF THE PATENT OWNER, UUSI, LLC:
`
`
`JAY P. KESAN, ESQUIRE
` TERESA M. SUMMERS, ESQUIRE
` DIMURO GINSBERG PC
` 1101 King Street
` Suite 610
` Alexandria, Virginia 22314
` (703) 684-4333
`
`
`
`
`The above-entitled matter came on for hearing on Wednesday, August
`2, 2017, commencing at 9:00 a.m., at the U.S. Patent and Trademark Office,
`600 Dulany Street, Alexandria, Virginia 22314.
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`IPR2016-01049 (U.S. Patent No. 5,570,666)
`IPR2016-01050 (U.S. Patent No. 6,148,258)
`IPR2016-01051 (U.S. Patent No. 5,729,456)
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`
`P R O C E E D I N G S
` JUDGE PETRAVICK: Please be seated.
` JUDGE KAUFFMAN: Good morning. This is
`IPR2016-01049, 01050, 01051.
` I'm Judge Kauffman. With you there in the room
`are Judge Petravick and Judge Mayberry. Would Petitioner
`please come up and introduce whoever will be speaking today?
` MS. JANTZI: Good morning, Your Honors, Nicole
`Jantzi on behalf of Petitioner, AM General, with the firm of
`McDermott Will & Emery. Today, with me, are Ian Brooks and
`Paul Shoenhard of McDermott Will & Emery.
` The three of us will be splitting up the
`presentation on behalf of Petitioners today. Also with me
`here today is Daniel Dell'Orto, the executive vice president
`and general counsel of AM General, as well -- Danya Perry,
`head of litigation and deputy general counsel of McDermott
`Will & Emery.
` JUDGE KAUFFMAN: Thank you for those. If you
`would wait at the podium for a second, please. Thanks for
`those introductions.
` Did you a give a business card to the court
`reporter?
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`IPR2016-01050 (U.S. Patent No. 6,148,258)
`IPR2016-01051 (U.S. Patent No. 5,729,456)
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` MS. JANTZI: Yes, I did.
` JUDGE KAUFFMAN: And I just wanted to confirm
`there are no objections to the demonstratives?
` MS. JANTZI: No.
` JUDGE KAUFFMAN: Okay. Thank you.
` And, Patent Owner, would you introduce who will be
`speaking today and whoever else you want to introduce?
` MR. KESAN: Sure. I'm Jay Kesan along with
`Ms. Teresa Summers. And we'll be sharing the duties on
`behalf of the Patent Owner, UUSI. And also with us is Cecil
`Key. But he won't be arguing.
` JUDGE KAUFFMAN: Thank you. And did you give a
`business card to the court reporter?
` MR. KESAN: Yes.
` JUDGE KAUFFMAN: And I want to confirm there are
`no objections to Petitioner's demonstratives.
` MR. KESAN: None.
` JUDGE KAUFFMAN: And I notice you have three sets
`of demonstratives, whereas Petitioner has one; is that
`correct?
` MR. KESAN: Yeah. One for each patent.
` JUDGE KAUFFMAN: Now, I just noticed this morning,
`and I wish I'd noticed this sooner. It looks like they are
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`IPR2016-01050 (U.S. Patent No. 6,148,258)
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`not page numbered. One of the things we really for the
`record is for somebody to be able to say, I'm on page number
`whatever.
` Do you have a copy that has page numbers?
` MR. KESAN: Yes, we do.
` JUDGE KAUFFMAN: Could you still refer to those
`slides by page numbers? Then it's very helpful when we
`review the transcript.
` MR. KESAN: Yes. We will, Your Honor.
` JUDGE KAUFFMAN: Thank you. We'll just number our
`own set, then.
` And Petitioner as well, if you would please refer
`to your slide numbers, it's helpful to the court reporter,
`and it's helpful to us when we're preparing afterward.
` We do have working files that we look at, so if
`you want to refer to an exhibit or a Paper, we can pull that
`up. We also have copies of your demonstratives
`electronically. So we do not need a paper copy.
` Because we have three cases going on here today,
`if you would, please, if something is specific to one case or
`to two, please mention which case you're talking about.
` We tend to ask a lot of questions. Please don't
`be thrown by that. I know you may have rehearsed this as a
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`IPR2016-01051 (U.S. Patent No. 5,729,456)
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`presentation, but we may interrupt you to ask questions as we
`go through. We're not going to interrupt each other today.
`It's not that kind of a hearing.
` And, Petitioner, I'd like to know how you'd like
`to divide your time today.
` MS. JANTZI: Well, today I will be first
`addressing the '1049 proceeding related to the '666 Patent.
`I will also address the '1051 proceeding related to the '465.
`Both of those petitions relate generally to the same prior
`art references.
` And then I will turn over the podium to
`Mr. Brooks, who will address the '1050 proceeding relating to
`the '258. And then, to the extent there's any questions and
`if we have time, Mr. Shoenhard is available to discuss any
`issues regarding standing. And I would like to reserve any
`remaining time for rebuttal.
` JUDGE KAUFFMAN: So do you need me to give a
`warning of any kind as to how much time you've used? Or how
`do you want to do that?
` MS. JANTZI: If you could give me a warning at --
`when I'm at 20 minutes, I would appreciate that.
` JUDGE KAUFFMAN: Okay.
` JUDGE PETRAVICK: Okay. I'll set the clock for 60
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`IPR2016-01050 (U.S. Patent No. 6,148,258)
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`minutes, so you should be able to see how much time you have
`remaining.
` MS. JANTZI: Okay. Thank you.
` JUDGE KAUFFMAN: Thank you, Judge Petravick.
` And we're ready, then, for you to begin.
` MS. JANTZI: Okay. If you could please turn to
`slide 6.
` JUDGE PETRAVICK: I'm sorry. There is no clock in
`this hearing room.
` MS. JANTZI: Yeah. I was wondering.
` JUDGE PETRAVICK: But I am going to set these
`lights for 60 minutes.
` MS. JANTZI: Okay. Yes. Thank you.
` So starting with, like I said, the '1049
`proceeding, which relates to the '666 Patent, just in
`general, on slide 6, we have a copy of Claim 10, which is the
`independent claim at issue for this proceeding.
` The '666 Patent relates to a well-known technique
`for controlling glow plugs in a diesel engine. These glow
`plugs are heating devices used to aid in starting a diesel
`engine. And diesel engines and glow plugs are generally used
`on heavy-duty military vehicles.
` If you take a look at Claim 10, it has some
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`requirements, first being a switch to apply power to the glow
`plugs, a switch for actuating the starter and producing a
`cranking signal; a temperature sensor for monitoring ambient
`temperature; and a glow plug controller circuitry to
`calculate pre-glow, based on temperature; and an output
`circuitry responsive to cessation of the cranking signal.
` The petition in this matter makes it clear that
`the combinations of the Yusahara and Masaka references as
`well as Demizu and Masaka rendered Claim 10 and it dependents
`obvious.
` Most importantly, while there is a dispute, which
`I will discuss in a moment, as to the proper construction of
`a cranking signal, the Masaka reference actually teaches or
`renders obvious this element under either Petitioner's or
`Patent Owner's construction.
` Also, important to this particular proceeding is
`that the Yusahara and Demizu either teach or render obvious
`the temperature sensor element under the Board's undisputed
`construction.
` And so with that, I was going to proceed and
`discuss some of the disputes the parties have with respect to
`this particular patent.
` If we flip to slide 7, with respect to the
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`cranking signal, Petitioner's construction and Patent Owner's
`construction are listed at the top of the slide. And in
`general, the parties here dispute whether the cranking signal
`requires confirmation that the starter motor is actually
`cranking.
` And going to slide 8, just noting that in its
`institution decision, the Board construed this term to mean,
`quote, a signal that is indicative of the starter motor being
`actually cranked. And that's at the institution decision at
`13 through 14.
` Petitioner is -- is okay with this construction to
`the extent it means a signal that is indicative of the
`starter motor being actually cranked by the operator, i.e.
`indicative that the operator is cranking the engine, which is
`verbatim from the only section in the patent that actually
`discusses the cranking signal.
` UUSI in this matter has interpreted the Board's
`construction to mean confirmation of the starter motor is
`actually cranking. It's Petitioner's position as set forth
`in its reply and in the declaration of MacCarly that this
`interpretation of the Board's construction is not supported
`by the intrinsic record or the evidence that was has been set
`forth in this case. As we just saw in the previous slide
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`with Claim 10, Claim 10 says nothing about a starter motor at
`all.
` And as an initial procedural matter, before I move
`on further, I wanted to make note as we set forth in our
`reply that Patent Owner's arguments referenced at their
`Patent Owner's response at page 21 as to why their
`construction of this term is correct should not be considered
`by the Board. This argument is found in expert declaration
`2008 paragraphs 34 and 43 through 47, in its preliminary
`response. These two things were incorporated by reference by
`simply saying, Our construction is correct. See these
`citations.
` In our view -- in Petitioner's view, this is
`circumventing page limits, and thus those particular portions
`of the preliminary response and the original expert
`declaration should not be considered.
` Now, moving on to slide 9, as I mentioned
`previously, the Petitioners submit that the Board's
`construction could be acceptable if it means a signal
`indicative that the operator is cranking the engine.
` And, in fact, this is a reference -- it's
`Exhibit 1001 at 6:38 through 35. This is the only section
`that discusses this particular element in the '666 Patent.
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`And it says the operator is cranking the engine.
` And, in fact, Patent Owner's own expert confirms
`that the '666 Patent teaches the cranking signal is from the
`starter solenoid, and that it indicates the operator is
`cranking the engine. And that's at Exhibit 2008 at
`paragraph 98.
` But as previously described, there has been some
`confusion about what the Board's construction actually means
`because Petitioner -- sorry. Patent Owner is indicating that
`this signal has to give a confirmation that the starter motor
`is actually operating. And because of that, Petitioners have
`offered in their reply an alternative construction for the
`Board to consider that we believe is more in line with the
`intrinsic record and statements made by experts in this case.
` And that would be, as identified in slide 9 at the
`top of the page, a signal indicative of power being supplied
`to the starter. And this, again --
` JUDGE MAYBERRY: Excuse me, Counsel. So if I
`understand, your position is that you're okay with the --
`well, the cranking the engine part as long as cranking the
`engine means that power has been sent to the starter?
` MS. JANTZI: Correct.
` JUDGE MAYBERRY: At least one subassembly of the
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`starter.
` MS. JANTZI: Correct.
` JUDGE MAYBERRY: And then, does it follow that
`cranking of the engine ceases when power is no longer being
`sent to any subcomponent or subassembly of the starter?
` MS. JANTZI: Correct. As long as power has ceased
`or basically the ST -- or the switch has gone from -- has
`gone from cranking to OFF or the ON position, depending on
`the particular figure you're looking at, that would indicate
`that the starter -- or sorry -- that the cranking has ceased.
` JUDGE MAYBERRY: But would you agree that there
`are sometimes during that time interval when we have first
`introduced power to one of the starter’s subassemblies, to
`the time that we have ceased delivering power to any of the
`subassemblies that there is no interaction between the
`starter and the engine?
` So, for example, the pinion is not engaged with
`the -- with the ring gear of the crankshaft, and the starter
`motor is not turning? Do I have that right? In our whole --
`looking at our sequence of events that occurs when power is
`first delivered to one of the starter subassemblies, the
`motor -- the starter motor to one the those subassemblies is
`not turning.
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` MS. JANTZI: Well, I would say other than the
`motion of the starter solenoid identified in Claim 4, the
`'666 Patent actually doesn't deal with the starter
`subassemblies. It particularly just mentions the actual
`solenoid.
` To the extent there's any evidence in this case
`about different subassemblies, that's in light of our having
`to respond to Patent Owner's argument with respect to
`delineating between the two, and that the cranking signal
`would actually have to deal with starting the motor and
`confirmation that that happens.
` And I think if you look at slide -- if you take a
`look at figure 6 of the patent, which is identified at slide
`14 of our presentation, you see that at the time the
`signal -- or sorry -- that the key is turned, the crank input
`goes high, and it indicates that the cranking is actually
`happening during that crank time. It's assumed that that's
`happening at that time.
` So while that's happening, the engine is -- or
`would be cranking, and as soon as the key is put into the OFF
`position, then you would have the crank input going low, and
`the engine would no longer be rotating at that point.
` JUDGE MAYBERRY: In that regard, where in figure 6
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`or where in the specification does it tell us that the crank
`input moves from a zero voltage -- you know, from a low
`voltage to a high voltage, indicating the start of our
`cranking signal in response to turning the key?
` Could this increase in voltage be another
`signal -- a signal that is indicative of the solenoid sending
`the high voltage to the starter motor, then -- so actually
`starting the starter motor instead of being an indication
`that I've turned my key from ON to START.
` MS. JANTZI: I don't see anything in the patent or
`the figure that describes the other alternative that you just
`mentioned. But if you look at figure 6, as soon as the
`crank -- the second figure. As soon as it goes from 0 to 25
`volts, and the figure below that you have the end of operator
`delay, which in the patent describes is as soon as operator
`delay is over, that is when the user has turned the key.
` And so the fact that those two things line up in
`time means that they are connected. And if you look at --
`unfortunately, there is no figure in the '666 Patent that
`describes how this would actually happen in the context of
`the patent.
` All we have is what's at column 6, 38 through 45,
`which identifies that the crank signal would be related to
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`the starter solenoid, and that is indicating that the
`operator is cranking the engine. And the way the operator
`cranks the engine, as described in the patent and as
`identified by Patent Owner's expert at paragraph 98 of
`Exhibit 2008 is when the operator is cranking the engine.
` JUDGE MAYBERRY: Okay. And I'll come back, then,
`to my first question so we're clear.
` Sitting down in the driver's seat, put the key in,
`turn it on.
` MS. JANTZI: Uh-huh.
` JUDGE MAYBERRY: Then I'm going to turn it to
`START. So as soon as I turn it to START, I am cranking the
`engine. It's -- cranking the engine isn't -- does not
`require the crankshaft to somehow be starting with the turn,
`because back in the olden days, when you cranked the engine,
`you actually attached a crank to the crankshaft and started
`to turn it.
` What -- what I'm understanding you to say is that
`now the term, Cranking, is more broadly understood to mean --
`as soon as I have turned my key to that START position, it
`kind of started the sequence of events that will ultimately
`lead to the starter motor turning the crankshaft. I am
`cranking the engine.
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` MS. JANTZI: Yes. And that's how it is described
`in the patent. And I think the dispute lies in -- in
`practice, that's generally how that happens. You turn the
`key to the START position, the operator is sending power to
`the solenoid to attempt to start the engine.
` We have an example in our Patent Owner reply -- I
`believe it's at note 12 -- where we identify -- it's the
`example of a speaker. You turn the speaker to POWER.
`It's -- the speaker is available; it's on. But if the volume
`is off, you're not hearing any music.
` So even though that speaker is on, there is
`nothing coming out. It's not actually happening. You're not
`actually hearing anything. So our point is that the cranking
`signal identified in the '666 Patent merely requires that the
`battery, the solenoid, and the switch have a closed circuit
`that would identify that the operator is attempting to crank
`the engine, and whether it actually happens or not is not
`what is described in the '666 Patent.
` And going back to slide 9, please.
` In further support of our construction, again, if
`you look at the portion in the specification that discusses
`this, it's clear that the signal relates to the starter
`solenoid and operator cranking the engine.
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` And if we move on to slide 12 during the
`prosecution amendments were made that made clear that the
`claim in element 10(b), which is what we're referring to,
`does not relate to a starter motor, the cranking means in the
`original claims, which changed to, Starter, which is a
`broader term, and not, Starter motor.
` And then flipping to slide 15, it's not
`surprising, also, that the '666 Patent lacks any discussion
`of a sensor for actually measuring the movement of the
`starter motor. The Patent Owner's expert had pointed to
`nothing in this regard and Dr. Lequesne, Patent Owner's
`expert, testified that the standard starter, which is what is
`described in the '666 Patent at column 1, lines 62 to
`column 2, 2, would not have a sensor indicating the actual
`operation of the starter motor.
` And, therefore, we believe based on the intrinsic
`record, the proper construction of, Cranking signal, is what
`Petitioners are offering, which is simply a signal indicative
`of power being supplied to the starter.
` JUDGE KAUFFMAN: Counsel.
` MS. JANTZI: Yes?
` JUDGE KAUFFMAN: May I ask you a question on that?
` MS. JANTZI: Sure.
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` JUDGE KAUFFMAN: It's helpful to me to understand
`this limitation to think of a command signal. You're telling
`something to happen, like pushing the START button, turning
`the starter, and a sense signal.
` It seems like your construction is based on
`starting as a command signal. You're telling the vehicle to
`start, and that's what the claim calls for, and that Patent
`Owner's construction is a sense signal, something from the
`starter motor showing that it's actually turning.
` MS. JANTZI: Correct.
` JUDGE KAUFFMAN: Am I understanding you correctly?
` MS. JANTZI: Yes.
` JUDGE KAUFFMAN: Okay. Thank you.
` MS. JANTZI: And that is consistent with the other
`signals that are identified in the '666 Patent.
` If you look at the section related to outputs,
`which starts on column 6, lines about 49 through 69, where it
`talks about various signals. Basically, the signals are
`about controlling loads or applying voltage. And so when we
`look at paragraph -- sorry, column 6 where it discusses
`starter solenoid, we believe that's what the '666 Patent is
`describing in terms of signaling.
` And as to slide 16 -- sorry. Can we go to slide
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`13, please?
` And, again, this is something that Judge Mayberry
`touched on a bit, with respect to Patent Owner's argument
`about why the cranking signal would have to confirm that the
`starter motor was actually cranking. Again, there's nothing
`in Claim 10 that relates to the starter motor.
` And if we flip to slide 14, again, the crank input
`or the user actuates the runs, which any operator delay goes
`high at the same time is indicating the crank time. And this
`is consistent, again, with paragraph 98 of Lequesne's
`declaration that cranking signal indicates operating is
`cranking -- the operator is cranking the engine.
` And after you see that the crank input goes low
`when the key is turned back to the ON position. And,
`therefore, there is zero delay, let alone significant delay,
`which is what Patent Owners argue in their declaration of
`their expert between the key being turned and the beginning
`of crank time.
` So if you look at that second figure where the
`key -- end of operator delay. So the operator has turned the
`key. That's when the voltage spike happens for crank input,
`and you have crank time happening over that point.
` So it's clear from Patent Owner's expert, from the
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`specification, and from figure 6, all these things happen at
`the same time according to the '666 Patent specification.
` So I really am confused as to why Patent Owners
`are arguing that there's a significant delay between those
`two points. My assumption is they're saying that because
`then the turning of a key and the actual starting of cranking
`has to have some sort of different time periods. Thus, they
`could not be indicative of each other. This simply is
`contradicted by the specification of the '666 Patent.
` JUDGE MAYBERRY: Excuse me. Well, I just wanted
`to make sure -- you understand that even though Judge
`Kauffman's screen is facing that, he cannot see that.
` MS. JANTZI: Okay. I'm sorry.
` JUDGE MAYBERRY: He's looking right at you.
` MS. JANTZI: Okay.
` JUDGE MAYBERRY: And -- but -- and I don't know if
`Judge Kauffman needs a little more explanation since he
`couldn't see you pointing to your slide.
` JUDGE KAUFFMAN: It's the part that has a red
`rectangle around it; right?
` MS. JANTZI: Yes.
` JUDGE KAUFFMAN: So thank you, though.
` JUDGE MAYBERRY: I did want to kind of force you
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`to jump to something kind of down the road a little bit.
` MS. JANTZI: Okay.
` JUDGE MAYBERRY: I'm interested to understand how
`Masaka teaches the element even under Patent Owner's
`construction.
` MS. JANTZI: And that's where I was about to go.
` So could we switch to slide 22, please?
` So Masaka is a reference that, as identified in
`slide 22 -- sorry, 23 -- identified in slide 23. And in
`particular, we look at Exhibit 1006 at column 9:68 through
`column 10, line 11, where it discusses the after-glow timer
`108 is started in response to ST position detection signal
`output from the ST position detector 110.
` And then if we look at figure 8 of Masaka, it
`shows the ST position detector, which is identified as -- I
`think it's 110 -- and then the cranking signal, which is
`identified as what's coming out of that box into the
`after-glow timer, which is identified as 108.
` And we believe this particularly outlines what
`Petitioners have identified as the signal -- cranking signal
`that would satisfy its construction of a signal indicative of
`power being supplied to the starter. At the time the ST
`position goes high, a signal -- at the same time that is
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`detected by the figure 8 of Masaka. And then that actually
`sends a signal to the AG timer to identify that the ST
`position either is opened or closed. And that will tell
`whether after-glow should start or not.
` And that's under Petitioner's construction. And
`Your Honor's question was with respect to the Patent Owner's
`construction, which -- if we go to slide 24.
` If you look at figure 16 in the context of this
`specification in Exhibit 1006 at 18, column 9 through 15,
`you see that at the time the key goes high, where you see at
`line B -- so the first portion of 16A -- the key switch goes
`from ON, which is what's in a pre-glow, and then you start it
`in the START position, which is what's happening at line B.
` You'll notice that the third figure, which is
`figure 16C -- the engine speed goes from zero, and it rises
`at that particular point. So our -- so what we find
`indicated here is that at the same point in time, the start
`position of the key -- so you actually are cranking the
`engine -- and that's confirmed by the fact that the engine
`speed has increased.
` Now, it is not your view is that Masaka teaches
`that under 102 theory; it's under 103. So the fact that we
`know at the same time the ST position goes high, that the
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`engine speed is increasing. We know that the starter motor
`is actually working at that particular time.
` So if, in Masaka, you dropped a line and tapped at
`that particular point, you would know the engine is cranking.
`So it's an obviousness argument. So it still does not show a
`particular signal that would indicate the starter motor is
`actually cranking, but we do have this timing figure that
`shows that at the time cranking starts, engine speed actually
`occurs.
` And, again, this is further confirmed by figure 9.
`If you go to slide 25.
` When the key is moved to the ST position at time
`period D, the glow plug temperature dips at 9I and remains
`reduced for a time period until E, when the key returns to
`the ON position.
` And as our expert described in his reply
`declaration at paragraph 59, This reduction in temperature,
`which a person of skill would understand that this reduction
`in temperature is a result of the start drawing large amount
`of current, thereby eliminating the current available for the
`glow plugs. And this would show actual cranking.
` So also figure 9, this temperature diagram, shows
`that point from Masaka.
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` JUDGE KAUFFMAN: And I would like to tell you
`you've used about 22 minutes so far.
` MS. JANTZI: Okay. So with that, unless the Board
`has any other questions with respect to the '666 Patent, I
`can -- or sorry. With respect to cranking signal, I can make
`a couple comments on the ambient temperature limitation.
` Okay. If we go to slide 17, the Patent Owner has
`requested a construction of temperature sensor in its
`preliminary Patent Owner response. That particular
`construction -- they requested that the Board not include
`monitoring engine coolant. The Board declined to do that.
`However, that issue is still in this particular proceeding.
` If we go to slide 18, the Board ha