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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`SANTA’S BEST
`Petitioner,
`
`v.
`
`VARIABLE LIGHTING LLC
`Patent Owner.
`____________
`
`Case IPR2016-01066
`Patent 6,285,140
`____________
`
`
`
`JOINT MOTION TO TERMINATE PROCEEDING
`PURSUANT TO 35 U.S.C. § 317 AND 37 C.F.R. § 42.74
`
`
`
`Mail Stop “PATENT BOARD”
`Patent Trial and Appeal Board
`U.S. Patent & Trademark Office
`P.O. Box 1450
`Alexandria, VA 22313-1450
`
`

`

`Case No. IPR2016-01066
`Patent No. 6,285,140
`Pursuant to 35 U.S.C. § 317 and 37 C.F.R. § 42.74, Petitioner Santa’s Best
`
`and Patent Owner Variable Lighting (“the Parties”) jointly request termination of
`
`the inter partes review of U.S. Patent No. 6,285,140 (“the ’140 patent”), Case No.
`
`IPR2016-01066. This motion was authorized by the United States Patent Trial and
`
`Appeal Board (“the Board”) via email on April 12, 2017.
`
`I.
`
`Termination is Appropriate
`
`Variable Lighting has granted Santa’s Best an irrevocable SETTLEMENT
`
`AGREEMENT and full release from any liability with respect to the ’140 patent
`
`(“the Agreement”), and, as part of the Agreement, the Parties have agreed to
`
`request termination of this inter partes review proceeding. Ex. 1013. Termination
`
`is therefore appropriate because the dispute between the Parties has been resolved
`
`and both the Petitioner and Patent Owner support termination of the proceeding.
`
`Additionally, termination under 35 U.S.C. § 317(a) is proper because, to the
`
`parties’ knowledge, the Office has not yet “decided the merits of the proceeding
`
`before the request for termination is filed.”
`
`The Parties’ request to terminate is not contingent on any future event.
`
`Termination of these proceedings also furthers the public policy favoring
`
`settlement. The Board has stated an expectation that proceedings before it will be
`
`terminated after the filing of a settlement agreement: “There are strong public
`
`policy reasons to favor settlement between the parties to a proceeding. . . . The
`
`- 1 -
`
`

`

`Case No. IPR2016-01066
`Patent No. 6,285,140
`Board expects that a proceeding will terminate after the filing of a settlement
`
`agreement, unless the Board has already decided the merits of the proceeding.”
`
`Office Patent Trial Practice Guide, 77 Fed. Reg. 48,756, 48,768 (Aug. 14, 2012)
`
`(citing 35 U.S.C. 317(a)) (emphasis added). Additionally, Congress and the federal
`
`courts have expressed a strong interest in encouraging settlement in litigation. See,
`
`e.g., Delta Air Lines, Inc. v. August, 450 U.S. 346, 352 (1981) (“The purpose of
`
`[Federal Rule of Civil Procedure] 68 is to encourage the settlement of litigation.”);
`
`Bergh v. Dept. of Transp., 794 F.2d 1575, 1577 (Fed. Cir. 1986) (“The law favors
`
`settlement of cases.”), cert. denied, 479 U.S. 950 (1986). Accordingly, the Board
`
`should terminate this proceeding as to both Parties.
`
`By contrast, maintaining this proceeding after Petitioner’s resolution of its
`
`dispute with the Patent Owner would discourage future settlements by removing a
`
`primary motivation for settlement: eliminating litigation risk. For patent owners,
`
`litigation risks include the potential for an invalidity ruling against their patents. If
`
`a patent owner knows that an inter partes review will likely continue regardless of
`
`settlement, it creates a strong disincentive for the patent owner to settle. Indeed, the
`
`Board has granted joint motions to terminate as to both Parties even when the
`
`proceeding was at a late stage, after oral argument. Apple Inc. v. Nagravision SA,
`
`Case IPR2015-00971, Paper 30 at 2-3 (PTAB Sept. 7, 2016); Clio USA, Inc., v.
`
`The Proctor & Gamble Co., Case IPR2013-00438, Paper 57 at 2-3 (PTAB Oct. 31,
`
`- 2 -
`
`

`

`Case No. IPR2016-01066
`Patent No. 6,285,140
`2014); Volusion Inc. v. Versata Software Inc., Case CBM2013-00018, Paper 52 at
`
`2 (PTAB June 17, 2014).
`
`Accordingly, pursuant to the terms of the Agreement, the Parties respectfully
`
`request that the Board terminate this review.
`
`II. The Parties Have Resolved All Related Cases
`The Parties have also resolved the issues in all pending cases, which are
`
`limited to this review.
`
`Further, Patent Owner has resolved all disputes in all of the district court
`
`suits and each suit is dismissed:
`
`• Variable Lighting LLC v. Polygroup Services N.A., Inc., No. 1:16-cv-
`
`00183 (D. Del.), filed March 23, 2016, dismissed July 11, 2016. [U.S.
`
`Patent Nos. 6285140 by Ruxton , 8203275 by Ruxton, and 8390206 by
`
`Ruxton.]
`
`• Variable Lighting v. Polygroup Ltd., et al.¸No. 1:16-cv-00162 (D.
`
`Del.), filed March 16, 2016, dismissed March 23, 2016. [U.S. Patent
`
`No. 6285140 by Ruxton]
`
`• Variable Lighting LLC v. Kmart Corporation, et al., No. 1:15-cv-
`
`00426 (D. Del.), filed May 27, 2015, dismissed August 8, 2016. [U.S.
`
`Patent Nos. 6285140 by Ruxton , 8203275 by Ruxton, and 8390206 by
`
`Ruxton.]
`
`- 3 -
`
`

`

`III. Other Related Proceedings
`There are no other district court or USPTO proceedings between the parties.
`
`Case No. IPR2016-01066
`Patent No. 6,285,140
`
`CONCLUSION
`
`For the foregoing reasons, Petitioner and Patent Owner jointly request that
`
`the Board terminate this proceeding in its entirety.
`
`Dated: April 13, 2017
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Respectfully Submitted,
`
`/Jason Eisenberg /
`Jason D. Eisenberg (Reg No. 43,447)
`STERNE, KESSLER, GOLDSTEIN & FOX P.L.L.C.
`1100 New York Avenue, N.W.
`Washington, D.C. 20005-3934
`(202) 371-2600
`
`Attorney for Petitioner, Santa’s Best
`
`/Padmaja Chinta /
`Padmaja Chinta (Reg No. 54,792)
`CITTONE & CHINTA LLP
`11 Broadway, Suite 615
`New York, NY 10004
`Tel. 212-710-5619
`aberks@cittonechinta.com
`
`Attorney for Patent Owner, Variable Lighting LLC
`
`- 4 -
`
`

`

`Case No. IPR2016-01066
`Patent No. 6,285,140
`
`CERTIFICATE OF SERVICE
`
`The undersigned hereby certifies that the foregoing JOINT MOTION TO
`
`
`
`TERMINATE PROCEEDING PURSUANT TO 35 U.S.C. § 317 AND 37 C.F.R.
`
`§ 42.74 was served electronically via e-mail on April 13, 2017, in its entirety on the
`
`following counsel of record for the Petitioner:
`
`Padmaja Chinta (Lead Counsel)
`Henry Cittone (Back-Up Counsel)
`Andrew Berks (Back-Up Counsel)
`Peter Fratangelo (Back-Up Counsel)
`
`pchinta@cittonechinta.com
`hcittone@cittonechinta.com
`aberks@cittonechinta.com
`pfratangelo@cittonechinta.com
`
`
`
`
`
`
`Respectfully Submitted,
`
`/Jason Eisenberg /
`Jason D. Eisenberg (Reg No. 43,447)
`STERNE, KESSLER, GOLDSTEIN & FOX P.L.L.C.
`1100 New York Avenue, N.W.
`Washington, D.C. 20005-3934
`(202) 371-2600
`Attorney for Petitioner, Santa’s Best
`
`
`
`
`
`
`Dated: April 13, 2017
`
`
`
`
`

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