`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`________________
`
`
`APPLE INC., HTC CORPORATION, HTC AMERICA, INC.,
`ZTE CORPORATION, AND ZTE (USA), INC.,
`Petitioners,
`
`v.
`
`CELLULAR COMMUNICATIONS EQUIPMENT LLC,
`Patent Owner
`
`________________
`
`IPR2016-014931
`Patent 8,457,676 B2
`________________
`
`JOINT MOTION TO TERMINATE PROCEEDING
`WITH RESPECT TO PETITIONER APPLE INC.
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`1 HTC Corporation, HTC America, Inc., ZTE Corporation, and ZTE (USA), Inc.
`filed a petition in (now terminated) IPR2017-01081, and have been joined to the
`instant proceeding.
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`
`
`
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`Joint Motion to Terminate Proceeding
`With Respect to Petitioner Apple Inc.
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`
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`
`
`IPR2016-01493
` U.S. Patent No. 8,457,676
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`
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`I.
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`Introduction
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`Petitioner Apple Inc. (“Apple”) and Patent Owner Cellular Communications
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`Equipment LLC (“CCE”) have entered into an agreement, effective September 1,
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`2017, that resolves all underlying disputes between the parties, including the
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`above-captioned inter partes review of U.S. Patent No. 8,457,676 (“the ’676
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`patent”), Case No. IPR2016-01493 (the “Review”). Accordingly, pursuant to 35
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`U.S.C. § 317, 37 C.F.R. § 42.74, and the Board’s authorization of October 5, 2017,
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`the parties jointly move to terminate this Review.
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`II. Statement of Facts
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`Apple and CCE have entered into a written Settlement and License
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`Agreement (the “Agreement”) that has settled their dispute. As a result of the
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`Agreement, CCE’s claims against Apple in the following related lawsuits have
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`been dismissed with prejudice or are in the process being dismissed with prejudice:
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` Cellular Communications Equipment LLC v. AT&T Inc., et al., 2:15-cv-
`00576 (E.D. Tex. 2015);
` Cellular Communications Equipment LLC v. Sprint Solutions, Inc., et al.,
`2:15-cv-00579 (E.D. Tex. 2015);
` Cellular Communications Equipment LLC v. T-Mobile USA, Inc., et al.,
`2:15-cv-00580 (E.D. Tex. 2015);
` Cellular Communications Equipment LLC v. Cellco Partnership D/B/A
`Verizon Wireless, et al., 2:15-cv-00581 (E.D. Tex. 2015);
` Cellular Communications Equipment LLC v. Apple Inc., et al., 6:14-cv-
`00251 (E.D. Tex. 2015);
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`
`
`1
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`
`
`Joint Motion to Terminate Proceeding
`With Respect to Petitioner Apple Inc.
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`
`
`
`
`IPR2016-01493
` U.S. Patent No. 8,457,676
`
`
` Cellular Communications Equipment LLC v. Apple Inc., et al., 6:17-cv-
`00146 (E.D. Tex. 2015);
` Cellular Communications Equipment LLC v. Apple Inc., et al., 6:17-cv-
`00225 (E.D. Tex. 2015); and
` Cellular Communications Equipment GmbH v. Apple Inc., et al. in the
`Dusseldorf Regional Court, Cases No. 4b O 143/15, 4b O 35/17 and 4b O
`36/17.
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`The parties have also agreed to jointly request termination of the present
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`inter partes review (case no. IPR2016-01493) filed by Apple against the ’676
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`patent, as well as inter partes reviews IPR2016-01480 and IPR2016-01500,
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`respectively filed by Apple against U.S. Patents Nos. 8,867,472 and 8,457,022.
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`A true and correct copy of the Agreement is filed separately and
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`concurrently with this motion as Exhibit APPL-1022, along with a request to treat
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`the Agreement as business confidential information under 37 C.F.R. § 42.74(c).
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`Exhibit APPL-1022 is being filed electronically as “Board Only.” For the sake of
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`completeness, Exhibit APPL-1022 also includes a copy of a Settlement, Covenant,
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`and Related Rights Agreement between Apple and CCE’s parent corporation,
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`Acacia Research Corporation (“Acacia”), which was signed contemporaneously
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`with the Agreement between Apple and CCE. There are no other agreements, oral
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`or written, between the parties made in connection with, or in contemplation of, the
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`termination of this proceeding.
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`2
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`
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`Joint Motion to Terminate Proceeding
`With Respect to Petitioner Apple Inc.
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`
`
`
`
`IPR2016-01493
` U.S. Patent No. 8,457,676
`
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`Joinder petitioners HTC Corporation, HTC America, Inc., ZTE Corporation,
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`and ZTE (USA), Inc. are not parties to the Agreement between Apple and CCE. In
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`that regard, the ’676 patent is presently asserted in civil actions involving the
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`joinder petitioners styled Cellular Communications Equipment LLC v. HTC
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`Corporation, et al., 2:17-cv-00078 (E.D. Tex. 2017) and Cellular Communications
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`Equipment LLC v. ZTE Corporation, et al., 2:17-cv-00079 (E.D. Tex. 2017).
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`III. Relief Requested
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`Termination of this inter partes review with respect to Petitioner Apple is
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`requested, and the parties respectfully submit that such termination is appropriate.
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`The relevant statutory provision on settlement provides that an inter partes review
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`“shall be terminated with respect to any petitioner upon the joint request of the
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`petitioner and the patent owner, unless the Office has decided the merits of the
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`proceeding before the request for termination is filed.” 35 U.S.C. § 317(a). Here,
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`the Board has not yet decided the merits of the present inter partes review
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`proceeding, and so under 35 U.S.C. § 317(a) the proceeding should be terminated
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`with respect to Petitioner Apple upon this joint request.
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`This proceeding is at a sufficiently early stage. For example, the oral hearing
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`has not yet occurred. The Board has not yet invested significant resources and no
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`motions or actions are outstanding. Further, no public interest factors militate
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`3
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`
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`Joint Motion to Terminate Proceeding
`With Respect to Petitioner Apple Inc.
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`
`
`
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`IPR2016-01493
` U.S. Patent No. 8,457,676
`
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`against termination of this proceeding with respect to Petitioner Apple in light of
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`the circumstances of this proceeding.
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`Additionally, termination of this proceeding as to Apple would further the
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`underlying purpose of inter partes review, which is to provide an efficient and less
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`costly alternative forum for patent disputes. Maintaining the proceeding as to
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`Apple, however, would discourage further settlements, as patent owners in similar
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`situations would have a strong disincentive to settle if they perceived that an inter
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`partes review would continue with respect to a petitioner that has settled. Indeed,
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`the Board has stated an expectation that proceedings such as these will be
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`terminated after the filing of a settlement agreement: “[t]here are strong public
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`policy reasons to favor settlement between the parties to a proceeding. … The
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`Board expects that a proceeding will terminate after the filing of a settlement
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`agreement, unless the Board has already decided the merits of the proceeding. 35
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`U.S.C. 317(a), as amended….” Office Patent Trial Practice Guide, 77 Fed. Reg.
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`48,756, 48,768 (Aug. 14, 2012).
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`For at least these reasons, termination of this proceeding with respect to
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`Petitioner Apple is warranted.
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`4
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`
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`Joint Motion to Terminate Proceeding
`With Respect to Petitioner Apple Inc.
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`
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`
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`IPR2016-01493
` U.S. Patent No. 8,457,676
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`IV. Conclusion
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`For the foregoing reasons, Petitioner Apple and Patent Owner CCE jointly
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`
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`and respectfully request that the Board terminate this Review with respect to
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`Apple.
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`Dated: October 9, 2017
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`Dated: October 5, 2017
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`Respectfully submitted,
`
`
`/Andrew S. Ehmke/
`Andrew S. Ehmke
`Lead Counsel for Petitioner
`Reg. No. 50,271
`Haynes and Boone, LLP
`
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`Respectfully submitted,
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`
`
`Terry A. Saad (Reg. No. 62,492)
`Attorney for Patent Owner
`Bragalone Conroy PC
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`5
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`
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`Joint Motion to Terminate Proceeding
`With Respect to Petitioner Apple Inc.
`
`
`
`
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`IPR2016-01493
` U.S. Patent No. 8,457,676
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`
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`CERTIFICATE OF SERVICE
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`The undersigned certifies, in accordance with 37 C.F.R. § 42.6(e), that
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`service was made on the Patent Owner as detailed below.
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`Date of service October 9, 2017
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`Manner of service Electronic Mail
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`Documents served Joint Motion to Terminate Proceeding
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`Exhibit APPL-1022
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`Joint Request To Treat Agreement As Business
`Confidential Information Under 35 U.S.C. §
`317(b) and 37 C.F.R. § 42.74(c)
`
`
`Terry A. Saad (tsaad@bcpc-law.com)
`Nicholas C. Kliewer (nkliewer@bcpc-law.com)
`
`Bragalone Conroy PC
`2200 Ross Ave.
`Suite 4500 – West
`Dallas, TX 75201
`Telephone: 214.785.6673
`Facsimile: 214.786.6680
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`
` /Andrew S. Ehmke/
`Andrew S. Ehmke
`Lead Counsel for Petitioner
`Reg. No. 50,271
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`Persons served
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