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`28
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`ALVERSON, TAYLOR,
`
`MORTENSEN & SANDERS
`KURT R. BONDS, ESQ.
`Nevada Bar No. 6228
`ADAM R. KNECHT, ESQ.
`Nevada Bar No. 13166
`6605 Grand Montecito Pkwy, Ste 200
`Las Vegas, NV 89149
`(702) 384-7000
`efile@alversontaylor.com
`Attorneys for Plaintiff
`Voip-Pal.com, Inc.
`
`UNITED STATES DISTRICT COURT
`
`DISTRICT OF NEVADA
`
`* * *
`
`VOIP-PAL.COM, INC., a Nevada corporation,
`
`CASE NO.: 2:16-cv-00260-RFB-VCF
`
`Plaintiff,
`
`v.
`
`APPLE, INC., a California corporation,
`
`Defendants.
`
`DECLARATION OF ADAM R.
`KNECHT, ESQ. REGARDING
`NOTICE OF VARIOUS LETTERS
`FROM DR. THOMAS SAWYER TO
`THE HONORABLE JUDGE
`RICHARD F. BOULWARE II (ECF
`NOS. 28 AND 32)
`
`I, Adam R. Knecht, Esq., declare that:
`
`1.
`
`I am an attorney with the law firm of Alverson, Taylor, Mortensen & Sanders, counsel
`
`of record for Plaintiff Voip-Pal.com, Inc. (“Plaintiff” or “Voip-Pal”) in the above-captioned matter.
`
`I am licensed to practice law before all courts of the State of Nevada, including the United States
`
`District Court, District of Nevada. I am permitted to practice before this Court with respect to this
`
`matter. I submit this declaration based on personal knowledge, and if called upon as a witness, I
`
`could competently testify to the truth of each statement herein.
`
`2.
`
`On February 9, 2016, Voip-Pal filed this action against Defendant Apple, Inc.
`
`(“Apple”) alleging infringement of U.S. Patent Nos. 8,542,815 (the “‘815 patent”) and 9,179,005
`
`Voip-Pal Ex. 2057
`IPR2016-01198 and IPR2016-01201
`
`1
`
`23443
`
`ALVERSON, TAYLOR, MORTENSEN & SANDERS
`
`LAWYERS
`
`6605 GRAND MONTECITO PKWY, STE 200
`
`LAS VEGAS, NEVADA 89149
`
`(702) 384-7000
`
`

`

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`(the “‘005 patent”). (ECF No. 1).
`
`3.
`
`Exhibit A is a true and correct copy of the Civil Docket for the instant case that was
`
`printed on December 18, 2017 (https://ecf.nvd.uscourts.gov/cgi-bin/DktRpt.pl?632863606486333-
`
`L_1_0-1).
`
`1.
`
`Exhibit B is a true and correct copy of a letter from Dr. Thomas E. Sawyer addressed
`
`to the Honorable David P. Ruschke, Chief Judge, Patent Trial and Appeal Board (“PTAB”), dated
`
`May 1, 2017. Several parties appear to be copied regarding the letter, including the Honorable
`
`Richard F. Boulware II in the instance action. On May 8, 2017, the letter was filed upon all parties to
`
`this action as ECF No. 28. See also Exhibit A.
`
`2.
`
`Exhibit C is a true and correct copy of a letter from Dr. Thomas E. Sawyer addressed
`
`to the Honorable David P. Ruschke, Chief Judge, Patent Trial and Appeal Board (“PTAB”), dated
`
`October 23, 2017. Several parties appear to be copied regarding the letter, including the Honorable
`
`Richard F. Boulware II in the instance action. On November 1, 2017, the letter was filed upon all
`
`parties to this action as ECF No. 32. See also Exhibit A.
`
`3.
`
`Because this Court filed the May 1, 2017 letter (ECF No. 28) and the October 23,
`
`2017 letter (ECF No. 28) through the Case Management/Electronic Case Files (“CM/ECF”) system,
`
`our firm, as counsel of record for Voip-Palm, received and was served notice of the two letters
`
`through the CM/ECF system on May 8, 2017 and November 1, 2017, respectively. See also Exhibit
`
`A.
`
`
`
`Executed on December 18, 2017, in Las Vegas, Nevada.
`
`
`
`/s/ Adam R. Knecht .
`
`ADAM R. KNECHT, ESQ.
`
`
`
`2
`
`23443
`
`ALVERSON, TAYLOR, MORTENSEN & SANDERS
`
`LAWYERS
`
`6605 GRAND MONTECITO PKWY, STE 200
`
`LAS VEGAS, NEVADA 89149
`
`(702) 384-7000
`
`

`

`
`
`
`
`
`
`
`
`
`
`Exhibit A
`
`Exhibit A
`
`
`
`

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`Exhibit B
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`Exhibit B
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`

`

`Case 2:16-cv-00260-RFB-VCF Document 28 Filed 05/08/17 Page 1 of 18
`Case 2:16-cv-00260-RFB-VCF Document 28 Filed 05/08/17 Page 1 of 18
`
`Dr. Thomas E. Sawyer
`3626 E. Little Cottonwood Lane
`
`Sandy, Utah 84092
`
`May 1,2017
`
`Hon. David P. Ruschke
`Chief Judge, Patent Trial and Appeal Board
`P.0. Box 1450
`Alexandria, VA22313-1450
`
`'
`-
`-
`-
`-
`2.16 CV 00260 RFB VC
`
`F
`
`STRICi C’l'
`
`DISTRICT OF wrvniim
` BY
`’Enmn
`
`
`
`Re: Inter Partes Review Apple v Voip~Pal.com Inc, Case [PR2016—01198 Patent 9,179,005 B2;
`Case [PR2016—01201 Patent 8,542,815 B2
`
`Dear Judge Ruschke,
`
`My professional life has been an integration of government and private sector work. I have had
`the unique opportunity to serve as senior advisor to four US. Presidents, Nixon, Ford, Reagan,
`and Bush Senior. Past technical and managerial experience included serving as Chairman of the
`Board of Directors and CEO of Voip-Pal.com Inc., as well as Director of Special Operations (see
`attached resume).
`
`Although I no longer have a formal role with Voip-Pal, I am a shareholder and as such, have
`become increasingly concerned about the prospects of Voip—Pal receiving a fair and impartial
`inter partes review ([PR) by the currently assigned USPTO panel of administrative lawjudges.
`
`The applicable section if the US. Code 28 USC §455 provides, in part:
`
`(a) Any justice, judge, or magistrate judge of the United States shall disqualify himself in
`any proceeding in which his impartiality might reasonably be questioned.
`(b) He shall also disqualify himself in the following circumstances. ..
`(2) Where in private practice he served as lawyer in the matter in controversy, or a
`lawyer with whom he previously practiced law served during such association as
`a lawyer concerning the matter, or the judge or such lawyer has been a material
`witness concerning it...
`(4) He knows that he, individually or as a fiduciary, or his spouse or minor child
`residing in his household, has a financial interest in the subject matter in
`controversy or in a party to the proceeding, or any other interest that could be
`substantially affected by the outcome of the proceeding;
`(5) He or his spouse, or a person within the third degree ofrelationship to either
`of them, or the spouse of such a person...
`(iii) Is known by the judge to have an interest that could be substantially
`affected by the outcome of the proceeding;
`
`2:16-cv-00260-RFB-VCF
`
`

`

`Case 2:16-cv-00260-RFB-VCF Document 28 Filed 05/08/17 Page 2 of 18
`'Case 2:16-cv-00260-RFB-VCF Document 28 Filed 05/08/17 Page 2 of 18
`
`feast?
`
`(c) A judge should inform himself about his personal and fiduciary financial interests,
`and make a reasonable efiort to inform himself about the personal financial interests of
`his spouse and minor children residing in his household. . ..
`(d) For the purposes of this section the following words or phrases shall have the
`meaning indicated. .
`(4) “financial interest” means ownership of a legal or equitable interest, however
`small, or a relationship as director, adviser, or other active participant in the
`afi'airs of a party.
`
`The focus of the statute is not on whether there is actual bias, but on avoiding the potential for
`bias when “impartiality might reasonably be questioned.” Consistent with that high standard, the
`“Judicial Conference (of the United States) policy now requires each court to enter judges’
`financial conflicts into a database that stores case information, including parties and attorneys.
`Judges, according to the policy, must provide the court with a list oftheir financial conflicts.”
`(O’Brien, R., Weir, K., & Young, C. (2014, May 1). Revealed: Federal judges guilty of owning stock in
`corporations they ruled on. Occupycom Retrieved from ht_tp:lfwww.occupy.comfartic1e/revealed-federal-iudges-
`guilty-owning-stock-corporations-they—ruleditsthash.dUEdet6.iJSNm45.dpbs i
`
`Ifthere is such a list for the Patent and Trademark Trial and Appeal Board, that information has
`not been shared. Further, in response to a request for such records in Re: USPTO FOIA Request
`re Leader Technologies, Inc. v. Facebook, Inc., US. Pat No. 7,139,761 and 3rd Reexarn No.
`951001,26l, the United States Patent and Trademark Office of the General Counsel took the
`following position in an August 7, 2013 letter:
`
`The financial disclosures are withheld in full pursuant to Exemption (b)(6) of the FOIA,
`which permits the withholding of "personnel and medical files and similar files the
`disclosure of which would constitute a clearly unwarranted invasion of personal privacy."
`5 U.S.C. § 552(b)(6). (Retrieved fi'om httpsM/wwwjbcoverup.com/docsflibgag/‘ZOl3-08-07-Patent-
`Ofiice-FOIA-Res onse-REDACTED—CONFLICTS-LOGS-re-Leader~v~Facebook—F-l3—002l8~Au ~7—
`
`
`
`2013.343
`
`As a consequence, it is impossible to get financial information about the three members of the
`panel in the current TRB, nor is it possible to request financial information concerning any
`potential bias in the administration of this judicial system, because Under Secretary of
`Commerce for Intellectual Property and Director of the United States Patent and Trademark
`Office, Michelle K. Lee, was not required to file any financial information at the time of her
`appointment, because the US. Senate had her answer a "Questionnaire for Non-
`Judicial Nominees."
`(Retrieved from h
`szilwwqudici
`
`
`
`
`oZOFinal. d
`.senare. ovfimofmediafdochee%20 uestionnaire“
`
`
`
`
`Based on information that is available, it can be determined that two of the assigned judges either
`represented Apple (the Petitioner) or worked in a law firm which has represented Apple in patent
`litigation. Judge Stacy Margolies represented Apple in a 2011 patent litigation case and Judge
`Barbara Benoit was a principal at Fish & Richardson, a law firm which has represented Apple in
`patent litigation, including a case before the Patent Trial and Appeal Board (PTAB). The third
`judge, Lynne Pettigrew, was employed by AT&T for a period of eight years. While AT&T is not
`directly related to the petitioner, they are a named party in a lawsuit filed by Voip~Pal pertaining
`to the patents currently being reviewed in the IPR. Thus it appears that each of the judges may
`
`

`

`Case 2:16-cv-00260-RFB-VCF Document 28 Filed 05/08/17 Page 3 of 18
`Case 2:16-cv-00260-RFB-VCF Document 28 Filed 05/08/17 Page 3 of 18
`
`-Baasl?
`
`have a potential bias, but there is no way of ascertaining whether the problem is an appearance or
`a reality.
`
`There is also a potential of bias on the part of the administrator, Under Secretary Lee, who, prior
`to becoming the Director of the USPTO, was Deputy General Counsel and Head of Patents and
`Patent Strategy for Google, which is also a defendant in the federal court action that is
`considering these patents. Given her position as the head of the USPTO, which now includes the
`judicial arm, the PTAB, I request that she be asked to provide the financial disclosures that are
`contemplated by 28 USC§455 and that she consider whether “[s]he, individually or as a
`fiduciary, or [her] spouse or minor child residing in h[er] household, has a financial interest in
`the subject matter in controversy or in a party to the proceeding, or any other interest that could
`be substantially affected by the outcome of the proceeding.” For example, it seems likely that
`her long tenure at Google resulted in her owning a number of Google shares and/or options,
`which may create a circumstance where she should “disqualify h[er]self (acting as an
`administrator over a judicial system) in any proceeding in which h[er] immrtiality might
`reasonably be questioned.”
`
`A further and more fundamental bias during her administration is suggested by the fact that the
`PTAB has invalidated a record number of patents, many of them developed by individuals or
`small American inventors. Each patent, prior to the PTAB invalidation, had been awarded afier
`a careful review by patent examiners, who come from the same system with the same criteria as
`the PTAB judges. An indication of the “administrative headwin ” that Director Lee’s has
`created, was her recent statement, “Our stakeholders share my belief, and that of my USPTO
`colleagues, that there is a cost to society when this agency issues a patent that should not
`issue...” Are the “colleagues” and “stakeholders” the large Silicon Valley companies that have
`largely been the beneficiaries of the PTAB’s decisions? Or just the members of the “death
`squad,” a characterization embraced by former PTAB Chief Judge James Smith in a speech in
`which he described it as "unfortunate language," but in some ways it adequately described the
`mission Congress gave the board under the America Inven'rs Act.
`(Davis, R. (2014, August 14). PTAB’s ‘Death Squad’ label not totally off-base, chief says. Retrieved fi-om
`h
`s:ffwww.law360.comfarticlesf567550/ tab—s-death-
`uad-IabeI—not-totall -off-base-chief-sa s
`
`
`
`
`The concerns about the “impartiality” of the process seem quite reasonable when considering the
`seemingly excessive rate of institution and cancellation by two of these judges, Barbara Benoit
`and Lynne Pettigrew. Both are among thejudges with the highest institution rates at 89% and
`84% respectively, and Judge Lynne Pettigrew has a cancellation rate of 97%.
`(Graham, 8. dz Shuchman, L. (2015, Fall). The Brainy Bunch. Intellecmal Property: An ALMSuppJemem‘, 6.
`Retrieved fiom hgps:l/wwwromsgmynomhfmedia/Filesfarticlesf20I5/Septemberf201509l1 PTAB Reprintashxl
`
`Those numbers are disconcerting in that each IPR involves one or more patents and raises the
`question whether any patent owner who has spent years conducting R&D and tens of thousands
`of dollars, if not millions, bringing their inventions and innovations to fruition will receive fair
`and impartial consideration; certainly not by a panel ofjudges who appear eager to cancel claims
`and patents which have been properly examined and thoroughly vetted and granted by competent
`USPTO examiners. Voip-Pal and other companies like it are generally funded by thousands of
`hard working and often small shareholders who deserve fair and impartial treatment. As a
`shareholder, I seek a fair review on the merits of each patent case. Your attention to this matter is
`greatly appreciated.
`
`

`

`Case 2:16-cv-00260-RFB-VCF Document 28 Filed 05/08/17 Page 4 of 18
`Case 2:16-cv-00260-RFB-VCF Document 28 Filed 05/08/17 Page 4 of 18
`
`its salt
`
`Personal Observation
`
`Further substantiating the concerns are PTAB’s own statistics. Since its formation in 2012, 69%
`of trials resulted in all instituted claims being rendered un-patentable (an additional 15% resulted
`in some instituted claims rendered un-patentable). A total of 84% of trials resulted in the
`cancellation of claims.
`
`By PTAB’s own published numbers they are disallowing the vast majority of contested patents
`which had been properly and carefully reviewed by qualified and competent examiners. As the
`“death squad” nickname embraced by Judge Smith suggests, it seems the primary purpose of the
`PTAB is to cancel properly issued patents.
`(Retrieved from httpszflwww.usptogov/sites/defaultffiles/documemsfaia statistics ianggZDllpfl)
`
`I
`
`It takes a company or an individual approximately 4 to 6 years for a patent to be allowed
`and issued by the USPTO, which can then be cancelled by the PTAB, an element within
`the USPTO. Is the USPTO telling the world it does not trust the diligent work of its owa
`experienced, expert examiners?
`
`0 America was built upon individual’s efforts that were encouraged and rewarded as a
`result of their scientific and technological achievements. The American economic engine
`is fueled by innovation which is being stifled by the USPTO’s PTAB. In my opinion the
`USPTO/PTAB is discouraging inventors when they should be doing exactly the opposite.
`
`A Legal and Moral Issue
`
`The USPTO charges fees when an inventor applies for a patent. Years are spent in the process of
`responding to the examiner and following established Patent Ofice rules. A patent is allowed
`and issued only after a rigorous review that determines that it is valid and non-obvious, and
`does not infringe prior art of an issued patent.
`(Davis, R. (2017, April 24) Fed. Circ. Reverses PTAB nix of Synopsys Circuit patent. Law 360. Retrieved from
`
`h
`s://wmv.law360.com/articles/91643 l/fed-circ-reverses— tah~nix-of-s
`o 5 ac ircuit- atent
`Scheller, B.M. 8: Fen-arc, V.M. (2017, April 25). Federal Circuit to PTAB: No short cuts allowed. Men’az‘ional
`Law Review. Retrieved fi‘om h
`:lfwww.natlameview.con1/articleffederal-circuit-to- tab-no—short-cuts-allowed
`
`
`
`
`
`
`The same USPTO, through the PTAB process, has set up a different standard that has resulted in
`84% of all patent prosecutions through the IPR procedure becoming disallowed and cancelled.
`Fees have been paid by the inventor to the same office for both the issuance and the cancellation
`oftheir patent. One side takes 4 to 6 years to issue a patent while the other side strikes down the
`same patent in one year or less. Both entities are part of the same government agency and yet
`each has its owa set of rules which are contradictory. The question must be asked, “Does this
`process reflect the ‘fundamental fairness’ upon which our laws are based?”
`
`An anticompetitive patent process that favors large politically powerful software and hardware
`companies, while excluding the small company or individual inventor, brooks the potential not
`only for a reduction in patent development, but long-term monopolistic practices that will thwart
`our national creativity and the strength of our economy which has thrived under flee market and
`fair trading principles. The pushback is already gaining steam in the European Union, where
`several countries have filed or are considering suits against large American software companies.
`(Couturier, K. (2016, Dec. 20). How Europe is going after Apple, Google, and other U.S. tech giants. New York
`Times. Retrieved from h
`s://www.n imes.com/interactive/'2015/04/l 3/technolo
`{how-euro
`-is— oin after-us-
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`
`
`

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`Case 2:16-cv-00260-RFB-VCF Document 28 Filed 05/08/17 Page 5 of 18
`Case 2:16-cv-00260-RFB-VCF Document 28 Filed 05/08/17 Page 5 of 18
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`Page l5.
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`tech—gianfihtml; Manjoo, F. (2017, Jan. 4). Tech giants seem invincible. That won-ies lawmakers. New York Times.
`Retrieved fi-om h
`s://www.n imes.c m/2017f01f04ftechnolo
`ftechs-next—bartle-the-fri
`Ifill-five-VS-
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`lawmakershtmll
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`In looking at the emerging practices of the USPTO/PTAB as anti-competitive, reconsider again
`the current cancellation rates of the PTAB judges that are canceling an average of 84% of issued
`claims, with some judges reaching as high as 97%. USPTO examiners are amongst the most
`highly skilled and competent in the enti