`______________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`______________
`
`SONY CORPORATION, SONY MOBILE COMMUNICATIONS (USA)
`INC., SONY MOBILE COMMUNICATIONS AB, and SONY MOBILE
`COMMUNICATIONS INC.,
`Petitioner,
`
`v.
`
`CREATIVE TECHNOLOGY LIMITED,
`Patent Owner.
`______________
`
`Case IPR2016-01407
`Patent 6,928,433
`______________
`
`Record of Oral Hearing
`Held: August 29, 2017
`
`
`Before THOMAS L. GIANNETTI, PATRICK M. BOUCHER, and
`MELISSA A. HAAPALA, Administrative Patent Judges.
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`APPEARANCES
`
`ON BEHALF OF THE PETITIONER:
`
`
`MICHAEL N. RADER, ESQ.
`JOSHUA J. MILLER, ESQ.
`Wolf, Greenfield & Sacks, P.C.
`600 Atlantic Avenue
`Boston, Massachusetts 02201
`
`
`ON BEHALF OF THE PATENT OWNER:
`
`
`JONATHAN D. BAKER, ESQ.
`MICHAEL D. SAUNDERS, ESQ.
`Farney Daniels, P.C.
`411 Borel Avenue
`Suite 350
`San Mateo, California 94402
`
`
`ALSO PRESENT:
`
`
`Russell Swerdon, Esq.
`
`
`
`The above-entitled matter came on for hearing on Tuesday, August 29,
`
`2017, commencing at 1:00 p.m. at the U.S. Patent and Trademark Office,
`1961 Stout Street, 14th Floor, Room D, Denver, Colorado 80202.
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`Case IPR2016-01407
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`P R O C E E D I N G S
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` WHEREUPON, the following proceedings were
`taken pursuant to the Patent Trial and Appeal Board.
`* * * * *
` JUDGE HAAPALA: Good afternoon and welcome to
`Denver. I'm Judge Haapala. This is Judge Boucher. And
`appearing on videoconference in Alexandria is Judge
`Giannetti. Let's begin with your appearances. Let's start
`with petitioner. Would you please approach the microphone.
` MR. RADER: Thank you, Your Honor. Michael
`Rader from Wolf, Greenfield & Sacks on behalf of the Sony
`entity petitioners, and with me is my colleague, Josh Miller.
` JUDGE HAAPALA: Mr. Rader, will you be
`presenting for petitioner?
` MR. RADER: Yes, I will.
` MR. BAKER: Good morning, Your Honor. I'm
`Jonathan Baker from Farney Daniels on behalf of the patent
`owner, Creative Technology Limited. And with me today is my
`colleague, Michael Saunders, from Farney Daniels as well.
`And also with us today is Russell Swerdon, in-house counsel
`at Creative Labs.
` JUDGE HAAPALA: And, Mr. Baker, are you
`presenting for patent owner?
` MR. BAKER: Yes, I am.
` JUDGE HAAPALA: Okay. I'd like to go over how
`we're going to proceed today. Each party is going to have
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`45 minutes of time to present its arguments. Petitioner, you
`have the burden, so we'll begin with you. Patent owner, you
`will get a chance to respond to petitioner's arguments.
`Petitioner, you can reserve rebuttal time if you want.
` So in our order of June 13, we also authorize
`patent owner, if you choose, to address at this hearing any
`arguments or evidence that you feel that the petitioner
`presented in its reply that are not permitted under the
`proper scope of our rules. So petitioner if patent owner
`presents any such arguments, you can respond.
` Please remember that Judge Giannetti will not
`be able to hear you unless you speak into the microphone.
`And I understand that both parties have demonstratives.
`We've reviewed the submissions, we've reviewed petitioner's
`objections, and we decided that both parties can use their
`demonstratives as aids to oral arguments, but they're not
`evidence, and neither party is going to be authorized to submit
`the demonstratives as evidence, so we're not going to rule on
`the objections at this time.
` As a reminder, Judge Giannetti is not going to
`be able to see your slides, so please when you're making your
`presentation, refer to the slide number as you're going
`through it during your argument. I'd also like to remind the
`parties that we will not entertain any speaking objections.
`If you have an issue, you can raise it during your time.
` So petitioner, you can begin when you're
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`ready.
` MR. RADER: Thank you, Your Honor. I'm going
`to reserve up to about 15 minutes for rebuttal, although, I
`may run into that a little bit in my affirmative
`presentation, in which case, I'll just reserve a little bit
`less, if that's okay.
` So what I'd like to do in the 30 to 35 minutes
`that I have now is to do two things. First, I'm going to
`take just about six or seven minutes to do a little bit of
`review. Obviously, what the 433 patent is about and what the
`two primary prior art references disclose, the Birrell
`reference and the Seidensticker reference. And, of course,
`what the combination looks like. So what it looks like when
`you take the hierarchically organized user interface of
`Seidensticker and use it to display the hierarchically
`organized music data of Birrell.
` JUDGE BOUCHER: Can I interrupt just for a
`minute. I just wanted to ask the technician to move the
`camera. Apparently they can't see the podium clearly -- the
`camera is focused on us -- so that Judge Giannetti can --
`thank you.
` MR. RADER: As you'll see, the combination of
`the Seidensticker interfaced with the Birrell data looks just
`like the preferred embodiment of the 433 patent. Now that
`background is very important, because the
`Birrell-Seidensticker combination itself, there's very little
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`in any of the claims that's not provided in that combination.
`So many of Creative's arguments center just on that
`combination; although, there are a few subsidiary arguments
`with the secondary references.
` So after laying the foundation about Birrell
`and Seidensticker, I will then respond to the argument that
`Creative raised in its patent owner response, including both
`about the combination as well as some subsidiary points, like
`the idea of adding a song to a playlist while it's playing,
`which is disclosed in the Looney reference.
` So if we can jump to slide 3. On slide 3 what
`we've done is we've just reproduced claim 1 of the 433
`patent, which gives you a good overview of what the patent is
`about. Now, it was cancelled during reexamination so this
`claim is unpatentable. But all of the claims depend from it,
`so they all incorporate these limitations. And it describes
`the basic idea of navigating a hierarchy to access music.
` So you have at the top level the categories,
`the subcategories, and then the items, and the items are
`identified as tracks. So everyone agrees and understands
`that you can practice this method by starting with genres
`like rock, classical, jazz, and then drilling down to the CDs
`within a particular genre, and then going down to the tracks
`within a particular CD.
` Now, there's really very little variation on
`this core navigational concept described in any of the other
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`claims. What it all boils down to in terms of the navigation
`is one thing, and that's for the dependent claims, and that's
`the idea that you can drill down not just by genre, but by
`artist or album. With that one additional concept, you have
`the navigation described in all of the claims, all of the
`challenge claims, and that concept is disclosed in the Proehl
`and Johnson references.
` So given how minor that variation is, and
`given how clearly it is disclosed in the Proehl and Johnson
`references, most of Creative's arguments, as I said before,
`actually center around the Birrell and Seidensticker
`combination itself in terms of the navigation.
` JUDGE BOUCHER: It seems that one of the
`issues surrounds those last two limitations in claim 1,
`especially with respect to the additional limitations of
`claims 2 and 3, for example. So do you agree that displaying
`the items in a third display screen needs to be performed at
`the same time that accessing one track, based on a selection
`on one of the display screens?
` MR. RADER: So I want to make sure I
`understand your question. Obviously, claim 1 requires that
`as one of its limitations that you have to display the items
`or the tracks. Separately, claims 2 and 3 both require that
`you -- that you also play tracks that are associated with a
`CD on the second screen.
` JUDGE BOUCHER: Right. And that access is
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`based on a selection made in one of the display screens.
` MR. RADER: That's right.
` JUDGE BOUCHER: And so it seems to me that the
`issue is whether that selection results in displaying the
`items on the third display screen, as well as accessing that
`track.
` MR. RADER: So I think -- I think I understand
`your question now. So the question is: Does it have to
`result from selecting the CD in the second screen, that is --
`and there was some confusion on this, I think, in the patent
`owner response. When you select the CD to play, does it then
`have to not only play the CD but also display the tracks in
`the third screen. Is that your question?
` JUDGE BOUCHER: Yes.
` MR. RADER: That's not the claim construction
`that I understand is appropriate, and I don't believe that's
`the claim construction that Creative has advanced. I think
`what they've -- although it's a little bit confusing,
`honestly, in the patent response. I think the claim
`construction they've advanced is that you have to carry out a
`method in which you both display the tracks.
` As the board says in its institution decision,
`you can do that first, and then back up the hierarchy, ascend
`in the hierarchy to the second screen, and then choose a CD
`to play.
` And I don't believe that patent owner disputes
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`that that's the appropriate claim limitation. They do make a
`couple of arguments about whether the combination, in fact,
`satisfies that, which I'm prepared to address.
` JUDGE BOUCHER: Okay. Thank you.
` MR. RADER: So if we can look at slide 4, very
`quickly, of course, the Birrell reference describes the same
`three-level hierarchy, first the genres, which include jazz,
`country, rock, et cetera. At the second level, the listing
`of the CDs within a genre, and at the third level the listing
`of tracks within a particular CD.
` In the middle here we've highlighted in
`yellow, and this is from columns 4 and 5 of Birrell. Birrell
`says expressly the user can select CDs and/or individual
`tracks to be played. And that's an important disclosure to
`answer Your Honor's question, which I'll get to on those
`slides about claims 2 and 3.
` And then, finally, at the bottom it describes
`that it has a display. Birrell has a display, and it
`describes that there's a control procedure for a user to
`control the display, interact with the display, and select
`tracks to play. And that disclosure is very important
`because it relates to -- it ties Birrell closely to
`Seidensticker, which then provides the display and the
`combination.
` So slide 5 are brief excerpts from column 5 of
`Seidensticker, as well as Figure 1, which describes the basic
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`idea of drilling down and reascending, using an action button
`to drill down and a back button to go back up. And, of
`course, you can select any item in the menu at a particular
`-- at a particular level.
` So what does it look like when you -- if we
`can turn to slide 7. What does it look like when you use
`that hierarchically organized display in Seidensticker to
`display the Birrell hierarchically organized data? So on the
`right-hand side of the screen, you see from Dr. Bederson's
`declaration of the petition, the genre information in the
`first display screen comes directly out of Birrell.
` Because if you remember, classical, jazz,
`country, rock, and light rock. That's directly out of
`Birrell, as we saw. The idea that you have CDs that
`correspond to those genres is directly out of Birrell. The
`idea that each CD has tracks is directly out of Birrell. And
`the idea of drilling down from one level to the other, that's
`directly out of Seidensticker as shown in -- for example, in
`figures 10 and 11 of Seidensticker.
` If we can have slide 8 now. Slide 8 just
`presents an excerpt from the institution decision. So Dr.
`Bederson, Sony's expert, explained in the declaration when he
`filed the petition that the Birrell and -- that the
`Seidensticker interface, hierarchically user interface, is
`directly applicable, seamlessly to the hierarchically
`organized music data of Birrell, and that a person of an
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`ordinary skill in the art would have ample reason to use
`that, because Birrell itself, of course, said it needs to
`have a display for its hierarchically organized music data.
` The institution decision credited that
`testimony from Dr. Bederson. And, in fact, both references
`contain disclosures that motivate the combination. Remember,
`Birrell is a portable music player with the hierarchical
`music data. It says you have to display it. It says you
`have to be able to use the display to select, but it doesn't
`tell you exactly what its display looks like. So it's a
`portable music player is in search of a display.
` Seidensticker is a hierarchically organized
`user interface that it's, by its terms, says it's applicable
`to every or any portable electronic device. So it's a
`display in search of a device and data to populate it. So
`both references recommend themselves to the other.
` JUDGE HAAPALA: Mr. Rader, I wanted to address
`a point that patent owners brought up, that the combination
`would not be predictable, and patent owner raised some
`arguments that user interfaces are complex, and design
`choices -- there's a lot of design choices, and you can't
`predict which ones would be successful. Could you address
`those arguments, please.
` MR. RADER: Sure. Dr. Bederson, I believe,
`addressed that in his testimony. I mean, in every
`combination there's, I suppose, an element of
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`unpredictability. Here, the record reflects that this is
`about a simple and straightforward combination, even calling
`it a combination is a little bit funny. What it is is just
`taking a hierarchically organized user interface and
`populating it with existing data that's organized
`hierarchically.
` So, you know, the kinds of issues they raised
`in their patent owner response were things like, well,
`Seidensticker doesn't contemplate music data. Well, the
`answer to that is that Seidensticker says its applicable to
`any kind of device that uses any data. So while it doesn't
`expressly talk about music, it expressly says I'm applicable
`to whatever device you want to use me on.
` JUDGE BOUCHER: So with those screens up
`there, which don't appear in either reference, but are what
`you're contending results from the combination of the two
`references. Can you walk me through how, for example, the
`limitations of claim 2 are met? The easy ones are selecting
`a category. And if in the first display screen, you select
`"rock," you hit second display screen and so on.
` MR. RADER: Right.
` JUDGE BOUCHER: And then it's easy, you get to
`display the items in the selected subcategory and the third
`display screen where you have the tracks there. And so what
`is the accessing limitation in claim 1, and what are the two
`specific limitations comprised by that in claim 2?
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` MR. RADER: So claim 1 says, accessing at
`least one track based on a selection made in one of the
`display screens. So according to claim 1, you can make the
`selection in any display screen you want to access at least
`one track, maybe more than one track. Claim 2 then says,
`where in the accessing the at least one track comprised of
`selecting a subcategory, which here would be a CD, in the
`second display screen and playing a plurality of tracks
`associated with it. So it's really very simple.
` Actually, as the board outlined in the
`institution decision, you would drill down to the third
`display screen where you see the tracks. You would then
`ascend in the hierarchy to the second display screen where
`you see the CDs, and then you would select a CD to play,
`which satisfies the limitation of claim 2.
` JUDGE BOUCHER: So I have to navigate down to
`the third display screen, play the track, then navigate back
`up to the second display screen.
` MR. RADER: You don't need to play a track
`when you navigate to the third. You just have to display the
`third. That's what the -- claim 1 requires that you display
`the third, and then it says for accessing you can do that in
`any display screen. And claim 2 narrows claim 1 to say, you
`need to select a subcategory in the second screen.
` So in order to practice the combination of
`claims 1 and 2 together, you can navigate to the bottom, to
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`the third display screen, don't select anything, go back up a
`level to the second display screen and then select a CD,
`which is what the board articulated correctly in its
`institution decision.
` JUDGE BOUCHER: And that's what you
`articulated in your petition?
` MR. RADER: That's correct. If we can go to
`slide 10, I'm going to try to breeze through these quickly.
`So we -- I'll walk through each of the five arguments that
`the patent owner makes in its patent owner response in
`response to the Birrell-Seidensticker combination.
` So if we can have slide 11. This is an
`argument, which is a reiteration of an argument that was made
`in the preliminary response, that, hey, there are other ways
`you can display Birrell's data other than using the
`Seidensticker interface.
` So, for example, Creative says, you just have
`a long list of all of the CDs and all of the tracks. It
`would be really long, but you can just scroll down and then
`select either a CD or a track that you want.
` And they argue that because that's possible,
`it negates the obviousness of using the Seidensticker
`interface. And that's simply not the law. The law is, as we
`show you here, from In Re Fulton that the prior art -- for a
`combination to be obvious, the prior art need not be the most
`desirable combination, although in this case it's very
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`desirable, and it's certainly need not be the only
`combination. So this argument fails as a matter of law.
` Looking at slide 12, this is basically an
`extension of that argument where they say, look, they argue
`and their expert asserts that there is a device called the
`Personal Jukebox 100 or the PJB100, which was the commercial
`embodiment of the Birrell patent. And they say, look, that
`existed.
` And if you assume that one of skill in the art
`knew about that and that device had a display, hierarchy or
`display menu that differed from that of Seidensticker, one of
`a skill in the art would have just used that, and it wouldn't
`be obvious to use anything else.
` Again, that runs right into In Re Fulton and
`black-letter law that says there's not -- there's never, or
`not necessarily, only one obvious way to display data, and
`it's -- again, it need not be the best way, and it certainly
`doesn't need to be the only way. So even assuming there
`existed in the prior art one thought about how to display the
`Birrell data, it in no way negates the obviousness of using
`this very seamless Seidensticker interface to display that
`data.
` Slide 13. So this is another argument
`Creative says, well, they fault Sony and Sony's expert, Dr.
`Bederson, for failing to identify the problem solved in the
`433 patent or its solution in the prior art. This runs right
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`into the Supreme Court in KSR, which said that it was error
`to focus on the problems solved in the patent at issue for
`purposes of the obviousness analysis. And any reason,
`motivation, or problem in the prior art can suffice to
`provide a reason to combine two references.
` Now, if we turn to slide 14. While the
`argument about identifying the problem or the solution from
`the 433 patent is wrong as a matter of law, we nevertheless
`went the extra mile and demonstrated that that problem and
`solution were identified in the prior art. And, in fact, in
`the very prior art that forms the basis for ground one.
` So Mr. Bear, who is Creative's expert, argues
`here on slide 14 in an excerpt from his declaration that the
`problem of the 433 patent was when you have too much data to
`display on the screen at one time, you have to organize it in
`a way that makes it easier to display. That was the problem
`and solution. And the solution was a hierarchical
`organization.
` Well, that's exactly what Seidensticker says.
`You know, in the excerpt from Seidensticker, column 2 here,
`it starts out by saying, "The user interface includes the
`display screen having only a few rows." That's actually how
`the 433 patent starts, with the same observation. And it
`goes on to say, look, scrolling is time-consuming, so what
`you should do is have a hierarchical user interface right
`there in the prior art.
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` In slide 15, we additionally included some
`excerpts at the bottom here from the ISO standard. As it
`turns out, that Creative's --
` JUDGE HAAPALA: Would you please, before we
`start into that, would you please succinctly state what the
`purpose of your introducing this reference is.
` MR. RADER: Absolutely. The purpose is to
`rebut the suggestion, which is legally erroneous, but to
`also factually rebut the suggestion that the problem and
`solution of the 433 patents were not known in the prior art.
`Creative seems to argue that that is an independent reason to
`find the claims not obvious.
` Now, that's legally incorrect under KSR, but
`we felt it was important through Seidensticker as well as
`through this reference, which is an ISO standard of the
`family that Mr. Bear himself cited in his own declaration to
`demonstrate that his statement was factually incorrect.
` JUDGE HAAPALA: So if we agree that it's
`legally erroneous to require the prior art to identify the
`problem, do we need to consider this?
` MR. RADER: You do not.
` JUDGE HAAPALA: Thank you.
` JUDGE BOUCHER: This is a bit -- this is going
`to sidetrack you a little bit. But can you address the
`reasons that the examiner in the re-examination allowed, for
`example, claim 2, and to the extent that the examiner had
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`before him arguments that are similar to the ones that you're
`making now?
` MR. RADER: So in the re-examination -- my
`recollection of that is twofold. One, Creative swore behind
`most of the references. And the petitioner in that case
`settled out with Creative so it didn't bring forward
`additional references.
` And with regard to claim 2, with the
`particular reference that was at issue there, Creative made
`two arguments, one was that claim 2 required actually playing
`the songs based on the selection of the CD in screen 2, as
`opposed to just selecting the CD in screen 2 and then perhaps
`playing songs on the third display screen.
` But Creative also made other arguments, the
`exact details of which I don't have at my fingertips, about
`why that reference, even under a broader interpretation,
`which allowed selection of a CD and then playing of tracks on
`the third display screen, would not satisfy those
`limitations. But here we have a combination of references
`that does disclose both displaying the tracks in the third
`display screen, and -- and even under the narrower
`interpretation that Creative argued playing the tracks based
`on selecting the CD in the second display screen.
` So while it's not entirely clear from a
`re-exam file history which of the two arguments that Creative
`made, the re-examination the examiner was persuaded by,
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`Creative makes the assertion that they were persuaded by one
`rather than the other. It's not clear from the file history.
` What he apparently didn't have there was a
`reference that disclosed what this reference does, which is
`both displaying the tracks on the third display screen and
`also playing based on a selection made on the second.
` JUDGE HAAPALA: Did you contest patent owner's
`construction or offer different construction for this
`limitation?
` MR. RADER: We -- we did not because we did
`not need to. So we did not take a position on whether claims
`2 and 3 require the tracks be played based solely on the
`selection made in the second display screen, or whether they
`could be played based on this third, because our prior art
`Birrell expressly discloses playing the entire CD by clicking
`on the CD. So that's not an issue we needed to take a
`position on. We effectively operated under their
`construction because our prior art met it.
` JUDGE HAAPALA: Thank you.
` MR. RADER: Okay. I'd like to move on to
`slide 17. In a couple of places Creative argues that each of
`the references individually is missing a limitation of claim
`1, the base claim. So, for example, here in the patent owner
`response at seven, in that section they're talking about this
`idea of tracks that have to be accessed according to a
`hierarchy, right, as opposed to just a long list. It's
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`actually in the preamble of claim 1. They say, look, Birrell
`doesn't disclose that, and that's true, because Birrell
`doesn't tell you what its user interface looks like.
` But as the board correctly observed in the
`institution decision, that doesn't address the combination of
`Birrell and Seidensticker. So while there's several
`arguments about what Birrell discloses or what Seidensticker
`discloses, nowhere in the patent owner response, nowhere,
`does Creative contest that all the limitations of claim 1 are
`satisfied by the combination of Birrell and Seidensticker.
`Their primary arguments are the ones I just went through
`about whether one of a skill in the art would have been
`motivated to combine those two references.
` So on that note, let me just pause for a
`second to tie this back to the claim so I can quickly start
`moving through the claims. So claims 5 and 7, which depends
`on claim 1, are not separately argued in the patent owner
`response. They don't make any arguments about claims 5 and
`7. They're dependent only on the arguments about claim 1,
`which, for the most part, boil down to whether you would have
`combined Birrell and Seidensticker in the first place.
` And since all of the arguments that they make
`in the patent owner response in terms of limitations
`potentially being missing are focused on the references
`individually rather than together, what this means is that if
`the board confirms its conclusion from the institution
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`decision, that the combination was obvious, Birrell and
`Seidensticker, then Creative has no arguments, presents no
`arguments for the patentability of claims 5 and 7. Claims 5
`and 7 stand and fall solely based on whether it was obvious
`to combine those two references. So that's it for claims 5
`and 7.
` Now, claims 2 and 3, which Your Honor was
`asking about a moment ago, so they're also part of ground
`one. Ground one is that they're obvious just over Birrell
`and Seidensticker, and that's what I would like to address
`briefly now.
` So if I can have slide 18. This is a little
`bit of review since we've already talked about it, but
`basically what they're arguing here in their patent owner
`response at 36 is the idea that if you select a CD, okay, in
`the second screen, are you ever going to display the tracks
`in the third screen, the latter being required by claim 1,
`the former being required by claim 2.
` And the answer is, as the board itself
`articulated in the institution decision, yes, the Birrell and
`Seidensticker combination, the fundamental thing is you can
`navigate to all of the screens, you can display the tracks as
`required by claim 1, and then you ascend a level, and then
`you can play a CD based on a selection made in screen 2.
` Now, Creative will try to suggest that this
`argument wasn't made in the petition. And so I just want to
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`point Your Honors in the petition. Again, remember that
`claim 1 is independent and 2 and 3 are dependent. So for
`claim 1 at page 73 of the petition, where claim 1 talks about
`presenting all three of the display screens, we pointed to
`the action in the back buttons of Seidensticker that you
`would display, in fact, all three of the display screens by
`going up and down.
` And then where claim 2, for example, talks
`about selecting the CD at page 77 of the petition, we
`expressly quoted from Birrell where it says you can play an
`entire CD. And then that disclosure is reiterated again on
`pages 78 and 79, on the top next to claim 7, which expressly
`requires what the board observed, navigating down and then
`back up and then making a selection. So the institution
`decision was a hundred percent correct in concluding the
`combination discloses all of the limitations of claims 1, 2
`and 3.
` JUDGE HAAPALA: Mr. Rader, you're about at
`26 minutes. I'd also like to hear a little bit about your
`argument on claim 17, adding to a playlist while the list is
`playing.
` MR. RADER: I'm alm