`Patent 7,764,777
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`________________
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`YMAX CORPORATION,
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`Petitioner
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`v.
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`FOCAL IP, LLC,
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`Patent Owner
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`________________
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`Case IPR2016-01258
`Patent Number: 7,764,777
`________________
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`
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`PATENT OWNER’S REQUEST FOR REHEARING
`UNDER 37 C.F.R. § 42.71(d)
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`TABLE OF CONTENTS
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`INTRODUCTION .................................................................................. 1
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`RELIEF REQUESTED ........................................................................... 1
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`LEGAL STANDARD ............................................................................. 1
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`BECAUSE THE BOARD MISAPPREHENDED OR OVERLOOKED
`THE CLAIM LANGUAGE OF THE CHALLENGED CLAIMS
`REGARDING “SWITCHING FACILITY” AND PATENT OWNER’S
`ARGUMENTS REGARDING THE CONSTRUCTION OF
`“SWITCHING FACILITY”, THE DECISION WAS CLEARLY
`ERRONEOUS ........................................................................................ 2
`
`BECAUSE THE BOARD MISAPPREHENDED OR OVERLOOKED
`THE SPECIFICATION’S TEACHINGS AND DISCLAIMERS, THE
`DECISION WAS CLEARLY ERRONEOUS ....................................... 5
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`CONCLUSION .....................................................................................14
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`II.
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`III.
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`IV.
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`V.
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`VI.
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`TABLE OF AUTHORITIES
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`Cases:
`Arnold P’ship v. Duda,
`362 F.3d 1338 (Fed. Cir. 2004) ............................................................................. 2
`
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`Chi. Bd. Options Exch., Inc. v. Int’l Secs. Exch., LLC,
`677 F.3d 1361 (Fed. Cir. 2014) ............................................................................. 6
`
`
`In re Baker Hughes, Inc.,
`215 F.3d 1297 (Fed. Cir. 2000) ............................................................................. 6
`
`
`In re Gartside,
`203 F.3d 1305 (Fed. Cir. 2000) ............................................................................. 2
`
`
`In re Man Mach. Interface Techs. LLC,
`822 F.3d 1282 (Fed. Cir. 2016) ................................................................... 3, 9, 14
`
`
`Microsoft Corp. v. Proxyconn, Inc.,
`789 F.3d 1292 (Fed. Cir. 2015) ............................................................................. 6
`
`
`PPC Broadband, Inc. v. Corning Optical Commc’ns. RF, LLC,
`815 F.3d 747 (Fed. Cir. 2016) (emphasis in original) .......................................... 5
`
`
`SAS Institute, Inc. v. ComplementSoft, LLC,
`825 F.3d 1341 (Fed. Cir. 2016) ............................................................................. 5
`
`
`SciMed Life Sys., Inc. v. Advanced Cardiovascular Sys., Inc.,
`242 F.3d 1337 (Fed. Cir. 2001) ............................................................................. 6
`
`
`Star Fruits S.N.C. v. United States,
`393 F.3d 1277 (Fed. Cir. 2005) ............................................................................. 2
`
`
`TD Ameritrade v. Trading Techs. Int’l, Inc.,
`Case No. CBM2014-00137, Paper No. 34 (P.T.A.B. Feb. 2, 2015)..................... 2
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`Tempo Lighting, Inc. v. Tivoli, LLC,
`742 F.3d 973 (Fed. Cir. 2014) ............................................................................... 3
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`Regulations:
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`37 C.F.R. § 42.71 (c) .............................................................................................. 1-2
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`37 C.F.R. § 42.71 (d) ................................................................................................ 1
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`I.
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`INTRODUCTION
`Pursuant to 37 C.F.R. § 42.71 (c)-(d), Patent Owner FOCAL IP, LLC requests
`a rehearing of the Board’s Decision granting institution of inter partes review
`entered January 3, 2017 (Paper No. 13) (“Decision”) regarding Claims 18, 21, 23,
`25, 26, 28-31, 37, 38, 41, and 45 of the ’777 Patent (collectively, the “Challenged
`Claims”). The Decision was based upon erroneous claim constructions of
`“switching facility” and “in communication with”/”coupled to”.
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`II. RELIEF REQUESTED
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`The Board misapprehended or overlooked Patent Owner’s argument as to the
`construction of
`the
`terms “switching
`facility” and “in communication
`with”/”coupled to” of the Challenged Claims. Accordingly, pursuant to 37 C.F.R. §
`42.71 (c)-(d), Patent Owner requests that the Board reconsider its Decision of the
`Challenged Claims in light of the proper constructions of these terms, as proposed
`by Patent Owner, and deny instituting inter partes review of the Challenged Claims
`of the ’777 Patent.
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`III.
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` LEGAL STANDARD
`A request for rehearing is appropriate when the requesting party believes “the
`Board misapprehended or overlooked” a matter that was previously addressed in the
`record. See 37 C.F.R. § 42.71(d). The request “must specifically identify all matters
`the party believes the Board misapprehended or overlooked, and the place where
`each matter was previously addressed in a motion, an opposition, or a reply.” Id. In
`reviewing such a request, the “panel will review the decision for an abuse of
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`discretion.” 37 C.F.R. § 42.71 (c). An abuse of discretion occurs where the decision
`is based on an erroneous interpretation of the law, or on erroneous facts. See Star
`Fruits S.N.C. v. United States, 393 F.3d 1277, 1281 (Fed. Cir. 2005); Arnold P’ship
`v. Duda, 362 F.3d 1338, 1340 (Fed. Cir. 2004); In re Gartside, 203 F.3d 1305, 13-
`15-16 (Fed. Cir. 2000). Abuse also occurs “if a factual finding is not supported by
`substantial evidence, or if the decision represents an unreasonable judgment in
`weighing relevant factors.” TD Ameritrade v. Trading Techs. Int’l, Inc., CBM2014-
`00137, Paper No. 34 at 3 (Feb. 2, 2015).
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`IV. BECAUSE THE BOARD MISAPPREHENDED OR OVERLOOKED
`THE CLAIM LANGUAGE OF THE CHALLENGED CLAIMS
`REGARDING “SWITCHING FACILITY” AND PATENT OWNER’S
`ARGUMENTS REGARDING THE CONSTRUCTION OF “SWITCHING
`FACILITY”, THE DECISION WAS CLEARLY ERRONEOUS
`The Board misapprehended or overlooked the requirements of the Challenged
`Claims regarding the term “switching facility” and Patent Owner’s arguments as to
`the same. Accordingly, the Board’s Decision was based on an erroneous conclusion
`of law or clearly erroneous factual findings, and inter partes review of the
`Challenged Claims should be denied in light of the proper construction for
`“switching facility.”
`In its Decision, the Board recognized that the preamble of the Challenged
`Claims is limiting, but the Board failed to analyze the claim language regarding
`“switching facility”, especially as this term relates to the term “edge switch.”
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`Decision at 6-8. Specifically, the Board quoted a claim limitation from Claim 18
`within the preamble:
`
`The preamble of that claim recites “processing an incoming call from a
`switching facility on a communication network that comprises edge
`switches for routing calls to subscribers within a local geographic area
`and switching facilities for routing calls to edge switches, or other
`switching facilities local or in other geographic areas.”
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`Decision at 6. The Board’s only analysis of the claims is directed to the subset of
`the claim describing the functionality of “switching facilities” without any analysis
`or recognition of how Claim 18 distinguishes the term “edge switch” from the term
`“switching facility.” Id. at 6-7.
`Under the broadest reasonable interpretation, the Board’s analysis must give
`“primacy to the language of the claims, followed by the specification.” Paper No. 7
`at 13 citing Tempo Lighting, Inc. v. Tivoli, LLC, 742 F.3d 973, 977 (Fed. Cir. 2014).
`Instead, the Board’s claim construction analysis primarily relied on extrinsic
`evidence and the prosecution history without considering the most important factors
`-- the language of the claims and the specification. Decision at 6-8. As explained
`in more detail below in Section V, the specification also fully supports Patent
`Owner’s construction. “The broadest reasonable interpretation of a claim term
`cannot be so broad as to include a configuration expressly disclaimed in the
`specification.” Paper No. 7 at 14 citing In re Man Mach. Interface Techs. LLC, 822
`F.3d 1282, 1286 (Fed. Cir. 2016).
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`Patent Owner proposed a construction for “switching facility” which excluded
`edge switches and edge devices. Paper No. 7 at 34. Patent Owner’s argument
`regarding the proper construction of “switching facility” first analyzed the claim
`language of a representative claim. Id. Patent Owner noted that the claim language
`expressly distinguishes that a “switching facility” is not an “edge switch.” Id. A
`quick reading of the relevant limitation shows that the claim language expressly
`distinguishes a “switching facility” from an “edge switch” in at least two instances.
`Id. In the first instance, the representative claim recites “a communication network
`that comprises edge switches … and switching facilities …” Id. (emphasis added).
`In the second instance, the claim recites “switching facilities for routing calls to edge
`switches, or other switching facilities …” Id. (emphasis added).
`Patent Owner further highlighted that the representative claim recites
`functionality for a “switching facility” that is different than the claimed functionality
`for an “edge switch.” Id. The preamble of the representative claim defines the
`architecture of a PSTN by reciting that the claimed “network” includes “edge
`switches” that are “for routing calls to subscribers within a local geographic area,”
`and “switching facilities” that are “for routing calls to edge switches, or other
`switching facilities local or in other geographic areas.” Id. (emphasis in original).
`Edge switches can only communicate within a local geographic area, as recited by
`the claim, because edge switches “connect calling parties to called parties only
`within a local geographic area.” See Paper No. 7 at 36 and related argument at 34-
`40. Other switches that are not edge switches make up the interior of the network
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`and are not directly connected to subscribers or edge devices, but are instead
`connected to edge switches or other interior switches. Id. at 34-40.
`Respectfully, based on the claim language alone, the Board’s construction
`regarding “switching facility” was based on an erroneous conclusion of law or
`clearly erroneous factual findings, and inter partes review of the Challenged Claims
`should be denied in light of the proper construction for “switching facility.”
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`V. BECAUSE THE BOARD MISAPPREHENDED OR OVERLOOKED
`THE SPECIFICATION’S TEACHINGS AND DISCLAIMERS, THE
`DECISION WAS CLEARLY ERRONEOUS
`In addition to misapprehending or overlooking the language of the Challenged
`Claims, the Board also misapprehended or overlooked Patent Owner’s arguments
`regarding the teachings of the invention and disclaimers expressly disclosed in the
`specification. Paper No. 7 at 1-10, 21-33, including internal citations to the Bates
`Declaration. It is important to note that there are practical limits to how “broad” an
`interpretation may be. Paper No. 7 at 12. “Above all, [it] must be reasonable in
`light of the claims and specification.” Id. citing PPC Broadband, Inc. v. Corning
`Optical Commc’ns. RF, LLC, 815 F.3d 747, 755 (Fed. Cir. 2016) (emphasis in
`original); see also SAS Institute, Inc. v. ComplementSoft, LLC, 825 F.3d 1341, 1348
`(Fed. Cir. 2016) (“While we have endorsed the Board’s use of the broadest
`reasonable interpretation standard in IPR proceedings, we also take care to not read
`‘reasonable’ out of the standard.”). Under a broadest reasonable interpretation,
`“claims should always be read in light of the specification and teachings in the
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`underlying patent claim.” Paper No. 7 at 12 citing Microsoft Corp. v. Proxyconn,
`Inc., 789 F.3d 1292, 1298 (Fed. Cir. 2015). “[T]he Board’s construction ‘cannot be
`divorced from the specification and the record evidence,’ and ‘must be consistent
`with the one that those skilled in the art would reach.’” Id. The construction must
`be “reasonable in light of the totality of the written description.” Paper No. 7 at 12
`citing In re Baker Hughes, Inc., 215 F.3d 1297, 1303 (Fed. Cir. 2000).
`
`In its Decision, the Board focused on “switching facility” not being expressly
`discussed in the specification, but the Board failed to analyze the specification’s
`express disclosure of the invention’s novel architecture of not applying call features
`by or through an edge switch or edge device, including the specification’s express
`disclaimers and disparagement of prior art systems applying call features by or
`through an edge switch or edge device. Decision at 6-8. “Where the specification
`makes clear that the invention does not include a particular feature, that feature is
`deemed to be outside the reach of the claims of the patent, even though the language
`of the claims, read without reference to the specification, might be considered broad
`enough to encompass the feature in question.” Paper No. 7 at 15-16 citing Chi. Bd.
`Options Exch., Inc. v. Int’l Secs. Exch., LLC, 677 F.3d 1361, 1372 (Fed. Cir. 2014)
`(citing SciMed Life Sys., Inc. v. Advanced Cardiovascular Sys., Inc., 242 F.3d 1337,
`1341 (Fed. Cir. 2001)).
`The specification of the ’777 Patent recognizes that prior art systems and
`methods applied call control features through an edge switch or an edge device.
`Paper No. 7 at 21. The ’777 Patent disparages these prior art attempts as suffering
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`from various shortcomings that the present inventions specifically seek to remedy.
`Id. at 21-22. Indeed, Applicants repeatedly criticized applying call control features
`through an edge switch or an edge device, and in fact distinguished their inventions
`over such prior art. Id. at 22. By making such statements, Applicants unequivocally
`disclaimed call processing systems that applied call control features through an edge
`switch, or call processing systems that were themselves an edge device, from the
`scope of their inventions. Id.
`Applicants’ disparaging statements begin in the Background of the Invention
`section of the ’777 Patent. Id. In discussing various prior art systems and their
`perceived disadvantages, Applicants specifically disparage the application of call
`control features at an edge switch:
`There are also edge devices in each of the public telephone company’s
`central offices which provide local control, but offer an extremely
`limited number of features and do not provide true 3rd-party call
`control.
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`’777 Patent, 1:31-35; Paper No. 7 at 22; and
`In the past, numerous devices have been built that allow the connection
`of two lines together at an edge switch. These devices can be used to
`add features to a telephone network by receiving a call on one line and
`then dialing out on another line. The problem with these devices is that,
`because they are connected through an edge switch, transmission losses
`and impairments occur, degrading the overall connection. In addition,
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`signaling limitations prevent full control, by the subscriber or the
`system, over the call.
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`’777 Patent, 1:54-62; BatesDec, ¶52; Paper No. 7 at 22-23.
`In addition to these disparaging statements, Applicants further distinguish
`their invention from call processing systems that are edge devices, and note the
`numerous disadvantages of applying call control features using an edge device:
`In addition to these [1-800] services, there are edge devices that
`perform some of the same services. Edge devices such as phones and
`PBXs that include voice mail, inter-active voice response, call
`forwarding, speed calling, etc., have been used to provide additional
`call control. These devices allow the phone user direct control over
`incoming and outgoing calls. The disadvantage of edge devices is that
`they add cost, degrade voice and transmission quality, can be difficult
`to program, are not easily programmed remotely, can require the user
`to pay for two lines, provide lower quality of service, and cannot
`provide the same level of functionality as a system that controls the
`PSTN directly.
`
`’777 Patent, 2:35-46; BatesDec, ¶53; Paper No. 7 at 23.
`
`In sum, the ’777 Patent’s specification expressly recognizes that prior art
`systems and methods provided call control features through an edge switch or an
`edge device, but notes that there are numerous disadvantages with carrying out call
`control features in this manner; namely, the addition of costs, voice quality
`problems, and the requirement of a user to pay for the use of multiple telephone lines
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`(in order to handle incoming and outgoing calls simultaneously). Paper No. 7 at 23-
`24. A POSA could not possibly read the passages preceding the “Detailed
`Description of The Invention” and comprehend that call processing systems coupled
`to edge switches, or that were an edge device, are within the scope of Applicants’
`claims. Id. at 24; BatesDec, ¶54.
`It is unreasonable and clear error to construe the claims so broadly to include
`configurations expressly disclaimed in the specification. The Federal Circuit has
`held that “[t]he broadest reasonable interpretation of a claim term cannot be so broad
`as to include a configuration expressly disclaimed in the specification.” Paper No.
`7 at 14 citing In re Man Mach. Interface Techs. LLC, 822 F.3d 1282, 1286 (Fed. Cir.
`2016); see also Patent Owner’s analysis of other Federal Circuit cases applying
`reasonable claim scope based on disclaimers in the specification at Paper No. 7 at
`15-21.
`In contrast to the criticized prior art solution of providing call features through
`an edge switch or edge device, the specification is replete with commentary
`describing the benefits of connecting to switches other than edge switches:
`A preferred embodiment of the inventive system described herein
`connects at the tandem, thereby eliminating these problems [the
`problems identified in 1:54-62 regarding the provision of call features
`at an edge switch].
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`’777 Patent, 1:63-65; Paper No. 7 at 24;
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`Connecting directly to the PSTN tandem switch (or embedding the
`system into the tandem switch) eliminates the signal degradation
`problems previously described [i.e., those associated with connecting
`at a CO].
`
`’777 Patent, 3:31-34; Paper No. 7 at 24; and
`FIG. 1 illustrates the tandem access controller (TAC) in one
`embodiment of the present invention connected to the existing PSTN
`tandem switch, the TAC providing features for the subscriber’s
`telephone as requested by the subscriber via the web.
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`’777 Patent, 3:61-65; Paper No. 7 at 25.
`It is unreasonable and clear error to construe the claims so broadly to eliminate
`the objectives of the invention, such as signal degradation and toll charges associated
`with applying call features through an edge switch or edge device, as described
`above. See, e.g., Paper No. 7 at 8-10. Yet, construing “switching facility” to include
`edge switches does just that.
`The Board overlooked or misconstrued Patent Owner’s arguments regarding
`the novel architecture disclosed and taught by the ’777 Patent. The ’777 Patent is
`consistent in showing the claimed call processing system always being directly
`connected to a tandem switch, not an edge switch, to access the PSTN. Paper No. 7
`at 25-26. For example, Fig. 1 of the ’777 Patent shows Tandem Access Controller
`call processing system 10 connected to PSTN Tandem Switch 16, not CO 17 or 18
`(edge switch). Id.
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`This is also true for Figs. 2, 7, and 8 of the ’777 Patent - TACs 10 are directly
`connected to PSTN tandem switches 16, not COs 17 and 18 (i.e., edge switches).
`BatesDec, ¶56; Paper No. 7 at 26. As discussed above, the specification criticizes
`and disclaims a direct connection to a CO or edge switch. Yet, construing “switching
`facility” as including edge switches would bring within the scope of the ‘777 Patent
`of allowing the call processing system/controlling device to be connected to an edge
`switch – something disparaged in the ’777 Patent.
`The Board misapprehended or overlooked the express teachings of the
`specification and disclaimers expressly disclosed in the specification. See generally
`Decision. Indeed, the Board failed to even analyze the disclosure of the specification
`in this regard. Id. Specifically, the Board misapprehended or overlooked that the
`’777 Patent makes clear that applying call features through an edge switch or edge
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`device is (1) known in the prior art, and (2) suffers from problems which the present
`invention seeks to remedy. Paper No. 7 at 26. In addition, every embodiment of the
`’777 Patent (1) illustrates a call processing system connected to a tandem switch
`(i.e., “switching facility”), and (2) describes the benefits of this configuration over
`the prior art. Id. A POSA could not possibly read the ’777 Patent specification and
`believe that call processing systems/controlling devices connected to edge switches,
`or that are edge devices, are within the scope of Applicants’ inventions. BatesDec,
`¶57; Paper No. 7 at 26. Respectfully, the Board’s claim construction of the term
`“switching facility” as including edge switches and edge devices is therefore based
`on an erroneous conclusion of law or clearly erroneous factual findings, and inter
`partes review should be denied on the Challenged Claims in light of the proper
`construction.
`Additionally, the Board misapprehended or overlooked the Applicants’
`arguments presented in the prosecution history of the ’777 Patent. The Board’s
`analysis regarding “switching facility” in the prosecution history of the ’777 Patent
`is limited to a footnote provided by the Applicants. Decision at 8. However, the
`Board wholly failed to consider the clarifying remarks presented by the Applicants
`in the main body of its arguments explaining the novelty of the invention. For
`example, the Board failed to consider the clarifying remarks of Applicants’ novel
`architecture where the footnote is found:
`Applicants’ architecture permits subscribers (called parties or third
`parties) to access call routing operations at the switching facilities (also
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`referred to as tandem switching facilities1) that interconnect end office
`switches to other geographic areas that are not local to an end office
`switch.
`
`’777ProsHist, Ex2005 at 82; Paper No. 7 at 35-39. Applicants’ remark that
`“switching facilities … interconnect end office switches to other geographic areas
`that are not local to an end office switch” is consistent with Patent Owner’s proposed
`construction and the claim language itself that “switching facilities” cannot include
`edge switches (end office switch). Paper No. 7 at 35-39. Likewise, the sentence
`preceding the one quoted above further confirms this construction – “Applicant’s
`architecture is not only distinct, but a significant improvement over Schwab or any
`of the other art asserted by the Examiner [] of record, because it facilities [sic]
`application of ‘features’ to call routing operations anywhere in the network
`(geographic areas beyond the local geographic area).” ’777ProsHist, Ex2005 at 82;
`Paper No. 7 at 31, 35-36, 39. As discussed, Schwab’s architecture is the same as
`what is disparaged in the Background of the Invention section of the ’777 Patent – a
`microprocessor-based system connected to an edge switch for applying call control
`features. Paper No. 7 at 31-33, 35, and 40-41. This record demonstrates a clear and
`unambiguous disclaimer of using call processing systems connected to edge
`switches, or that are edge devices, to apply call control features.
`In a similar manner, the Board also misapprehended or overlooked the express
`teachings of the specification and disclaimers expressly disclosed in the specification
`regarding the construction of “coupled to” and “in communication with” regarding
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`whether the “controlling device,” recited in representative Claim 18, can be “in
`communication with” or “coupled to” the “switching facility” through an “edge
`switch.” Decision at 8-10. A proper BRI construction of “coupled to”/”in
`communication with” must reflect that the “controlling device” cannot be “coupled
`to” or “in communication with” the “switching facility” through an “edge switch.”
`Paper No. 7 at 42-43. This construction gives meaning to Applicants’ statements
`distinguishing claims using the “coupled to” and “in communication with” language
`from Schwab. Id. Moreover, this construction also reflects Applicants’ disclaimer
`of controllers that applied call control features through an edge switch. Id. (citing to
`Section V in the POPR regarding the specification’s teaching and disclaimers
`presented herein). It is unreasonable and clear error to construe the claims so broadly
`to include configurations expressly disclaimed in the specification. Paper No. 7 at
`14 citing In re Man Mach. Interface Techs. LLC, 822 F.3d at 1286 (Fed. Cir. 2016).
`
`VI. CONCLUSION
`For the foregoing reasons, the Decision to Institute should be modified to
`reflect the proper constructions, and the Petition should be denied and a trial should
`not be instituted in light of the proper constructions.
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`Respectfully Submitted,
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`/s/ Brent N. Bumgardner
`Brent N. Bumgardner
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`Registration No. 48,476
`NELSON BUMGARDNER, P.C.
`3131 W. 7th Street, Suite 300
`Fort Worth, Texas 76107
`Telephone: (817) 377-3490
`Email: brent@nelbum.com
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`Case IPR2016-01258
`Patent 7,764,777
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`Dated: January 17, 2017
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`Case IPR2016-01258
`Patent 7,764,777
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`Paper No. 15
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`CERTIFICATE OF SERVICE
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`I hereby certify that on this 17th day of January 2017, a copy of Patent Owner
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`FOCAL IP, LLC’s Request for Rehearing has been served in its entirety via email
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`on the following:
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`Respectfully Submitted,
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`/s/ Brent N. Bumgardner
`Brent N. Bumgardner
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`Registration No. 48,476
`NELSON BUMGARDNER, P.C.
`3131 W. 7th Street, Suite 300
`Fort Worth, Texas 76107
`Telephone: (817) 377-3490
`Email: brent@nelbum.com
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`Mark D. Passler
`Brice S. Dumais
`David Brafman
`AKERMAN LLP
`777 South Flagler Drive
`Suite 1100 West Tower
`West Palm Beach, FL 33401
`Tel: (561) 653-5000
`Fax: (561) 659-6313
`Mark.passler@akerman.com
`Brice.dumais@akerman.com
`David.brafman@akerman.com
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`Dated: January 17, 2017
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`16