`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`—————
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`—————
`
`APPLE, INC.,
`Petitioner,
`
`v.
`
`PERSONALIZED MEDIA COMMUNICATIONS, LLC,
`Patent Owner.
`
`—————
`
`Case No.: IPR2016-01520: U.S. Patent No. 8,559,635
`
`—————
`
`PATENT OWNER’S CONTINGENT MOTION TO AMEND UNDER 37
`C.F.R. § 42.121
`
`
`
`I.
`
`INTRODUCTION
`
`U.S. Patent 8,559,635 (“the ’635 patent”), which issued from U.S. Patent
`
`Appl. No. 08/449,413 (“the ’413 application”), is a continuation of U.S. Patent
`
`Appl. No. 07/096,096, filed September 11, 1987, which is a continuation-in-part
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`application of, and claims priority to, U.S. Patent Appl. No. 06/317,510 (“the ’510
`
`application”), filed on November 3, 1981. Despite this proper claim of priority,
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`Petitioner has based its patentability challenge on prior art that was published well
`
`after November 3, 1981, asserting that the ’635 patent is only entitled to claim
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`priority to September 11, 1987.
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`Patent Owner maintains its positions discussed in the Patent Owner
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`Response that the challenged claims of the ’635 patent are fully supported by the
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`’510 application and are entitled to the 1981 priority date, and that the challenged
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`claims are not obvious over the cited prior art even if priority is based only on the
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`’413 application. However, in the event that the Board accepts Petitioner’s
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`arguments regarding priority and obviousness and deems the claims unpatentable,
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`Patent Owner now contingently moves to substitute the canceled claim(s) with
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`corresponding proposed amended claims 41-48 (“Substitute Claims”). Patent
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`Owner herein demonstrates that the Substitute Claims are all supported by the ’413
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`application and are patentable over the grounds that have been instituted in this
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`IPR. Patent Owner herein also demonstrates that the Substitute Claims are drawn
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`Apple v. PMC
`IPR2016-01520 (U.S. Pat. 8,559,635)
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`to patentable subject matter and are neither anticipated by nor obvious over any
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`prior art of which Patent Owner is aware. The Board has authorized Patent Owner
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`to file a Contingent Motion to Amend any claim found to be unpatentable. (Ex.
`
`2214 at 17-20; See 37 C.F.R. §§ 42.22(a)(2); 42.121; 35 U.S.C. § 316(d)). This
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`motion is supported by the declaration of Dr. Timothy Dorney (Ex. 2223; “the
`
`Dorney Dec.”) and Dr. Alfred Weaver (Ex. 2213; “the Weaver Dec.”).
`
`II. THE PROPOSED AMENDMENTS NARROW THE ISSUED
`CLAIMS
`
`Original claims 3, 4, 7, 13, 18, 20, 32, and 33 (“Original Claims”) are
`
`directed to the receipt of encrypted content, which requires a key for decryption,
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`where the key is delivered in an encrypted message. The Substitute Claims retain
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`all of the limitations of the original claims and add further requirements such as (1)
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`the encrypted content is digital; (2) unique digital data is received and decrypted by
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`the receiver station, and then communicated to a remote site; and (3) encrypted
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`content is decrypted, and then customized based on subscriber specific digital data
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`that is stored at the receiver station prior in time to receipt of the encrypted content.
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`Individual Substitute Claims include further limitations.
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`Because the Substitute Claims retain all of the limitations found in the
`
`Original Claims and add further limitations, they are narrower in scope than the
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`Original Claims. Substitute claim 43, proposed as a replacement for claim 7, is
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`exemplary:
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`The method of claim 2, wherein said subscriber station detects, in a
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`transmission channel including said programming, a second control signal
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`portion used to decrypt the first control signal portion, wherein said
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`programming further includes unique digital data, said subscriber station
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`communicating said unique digital data to a remote site through a digital
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`information transmission automatically initiated by said subscriber station,
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`said second decryptor decrypts, absent any descrambling, using one of a
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`plurality of cipher algorithms preprogrammed at said subscriber station
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`chosen based on said decrypted control signal portion.
`
`Patent Owner provides a complete listing of Substitute Claims with a
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`correlation to the Original Claims in Appendix A. One substitute claim is
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`proposed for each original claim. 37 C.F.R. §§ 42.24(a)(1), 42.121 (a)(3). The
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`Substitute Claims are not broader than the Original Claims. 37 C.F.R. §42.221
`
`(a)(2)(ii). The amendments add features to the claims in a manner that is
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`consistent with the description of the inventions in the ’413 application. The
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`amendments are responsive to a ground of unpatentability involved in the
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`proceeding. 35 U.S.C. § 316(d)(3).
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`III. CLAIM CONSTRUCTION
`Patent Owner adopts the Board’s claim construction set forth in the
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`Institution Decision for the purposes of this Motion only. (Paper 7 at 19-22).
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`Patent Owner clarifies the following further limitations relevant to the Substitute
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`Claims.
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`a. “customized”
`Substitute claims 44-48 recite the term “customized,” which should be
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`understood by its plain and ordinary meaning as “altered according to individual
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`specifications.” (Ex. 2211). As explained below, the new limitations are directed
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`to “customized” information, such as a shopping list, or computer information,
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`based on (unique) subscriber specific digital data.
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`b. “unique”
`The substitute claims recite the term “unique,” which should be understood
`
`by its plain and ordinary meaning as “being the only one.” (Ex. 2212). The claims
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`include subscriber specific unique digital data, such as, for example, a street
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`address. Per substitute claims 46-47, information is customized dependent on a
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`computer file containing unique subscriber specific information. The claims also
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`include programming specific unique digital data, such as, for example, unique
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`identifier codes for each programming unit. Per substitute claims 42-48, “unique”
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`programming specific digital data may be received at a subscriber station and
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`communicated to a remote site.
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`IV.
`
` THE AMENDED CLAIMS ARE DIRECTED TO STATUTORY
`SUBJECT MATTER
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`The Original and Substitute Claims are directed to specific methods for
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`securely distributing control signals over a network that may be used only by
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`authorized subscribers to access and decrypt encrypted content. For example,
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`original claim 2, representative of the Original and Substitute Claims and upon
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`which substitute claims 42 and 43 depend, requires a first encrypted digital control
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`signal portion of received programming be decrypted using a first decryptor. The
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`decrypted control signal portion facilitates the decryption of the encrypted digital
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`information portion of the programming by a second decrpytor. (Ex. 1003 at
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`286:7-28). A person of ordinary skill in the art (“POSA”) would understand the
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`process of claim 2 to involve decryption of received encrypted information using
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`two different key-algorithm pairs. (Ex. 2213, ¶ 951).
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`When all of the steps of the Original and Substitute Claims are considered, it
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`is evident that the claims are directed to novel ways in which a decryption key is
`
`accessed, or to using other information to enable decryption (decryption of a
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`received control signal). Some of the claims are directed to specific applications
`
`1 The Weaver Declaration was prepared for and submitted to the court in
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`Personalized Media Comm’ns, LLC v. Apple, Inc., No. 15-01366 (E.D.Tex. Jan.
`
`27, 2016) (D.I. 83-4). Dr. Weaver was not involved the preparation of this Motion
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`or the Substitute Claims. Dr. Weaver’s declaration conforms with 37 C.F.R. 42.11
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`and Dr. Weaver is available for cross examination by deposition by Petitioner.
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`which are used to change decryption techniques at the receiver station (e.g.,
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`original claim 13), or to using a received control signal or downloadable code to
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`determine a specific fashion in which to decrypt encrypted digital data (e.g.,
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`original claim 33). (Ex. 2213, ¶ 121). Thus, the Original Claims are not inherently
`
`abstract. The Substitute Claims are not inherently abstract at least by virtue of
`
`their incorporating all of the limitations in the Original Claims. Further, the
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`Substitute Claims add additional concrete limitations.
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`Even if the Original and Substitute Claims are directed to an abstract idea
`
`(which they are not), those claims include inventive concepts. The claims are
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`directed to specific ways to securely distribute enabling information, codes, or
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`signals necessary to control decryptors or to change the decryption techniques used
`
`at the receiver station to decrypt the incoming encrypted information
`
`transmissions. At a minimum, each claim directed to receiver station operations
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`requires that both the control signal, instruct signal, or code or datum necessary to
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`control a decryptor or to control the decryption technique to be used, as well as the
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`encrypted digital programming, be received in the same transmission. (Id., ¶ 126).
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`These limitations transform the concept of decryption into very specific,
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`concrete methods by placing requirements on the manner in which decryption is
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`controlled (e.g., whether or not a receiver station is enabled to decrypt) and not just
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`the manner of actual “conversion” from encrypted format to decrypted format. As
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`a result, the asserted claims do not, for example, apply solely to methods of
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`decryption, such as DES or RSA. (Id., ¶ 127).
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`Further, it was certainly not routine or conventional in 1987 to encrypt
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`digital television or other digital programming before it was transmitted so as to
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`restrict access only to authorized users. (Id., ¶¶ 89, 128). The use of decryption to
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`restrict access to programming was not routine and conventional because
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`descrambling was the conventional practice used to restrict access to programming.
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`(Id., ¶¶ 32-35, 89, 128). Nor was it routine or conventional in the 1980s to
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`distribute decryption key information over networks to receivers. It follows,
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`therefore, that the methods of the ’635 patent claims to control the decryption of
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`programming at a receiver station based on processing of instruct-to-enable
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`signal(s) that are included within the encrypted digital information transmission
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`that determine how the receiver station locates a decryption key, or are used to
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`generate a decryption key, or by processing control signals, or other signals, codes
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`or data that are included with the encrypted digital programming that are then used
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`to control decryptors or control the decryption technique to be used were not
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`routine or conventional. (Id., ¶¶ 89, 128).
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`Patent Owner notes that magistrate Judge Roy Payne’s R&R (adopted by
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`U.S. District Judge Gilstrap) has found in the parallel district court proceeding that
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`the Original Claims are directed to patentable subject matter based on the same
`
`reasoning discussed in this Motion. (Exs. 2209, 2210).
`
`V. THE AMENDED CLAIMS ARE SUPPORTED BY THE WRITTEN
`DESCRIPTION OF THE ’413 APPLICATION
`
`The Substitute Claims are all supported by the methodology described in the
`
`’413 application, specifically Example #7, which involves receipt and decryption
`
`of encrypted content, and transmission of unique data to a remote site, and
`
`Example #4, which involves decryption of an encrypted cipher key. As stated in
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`the ’413 application itself, Example #7 cannot be carried out without a cipher key
`
`which is used to decrypt the content. (Ex. 2208 at 288:30-289:21). As further
`
`stated in the ’413 application, in the event that the cipher key is received in an
`
`encrypted form, it must be decrypted before the method of Example #7 can be
`
`completed. (Ex. 2208 at 291:9-292:6). In the ’413 application, Example #4
`
`describes the steps of decrypting the cipher key, and therefore, in the embodiment
`
`where the cipher key is received encrypted in Example #7, Example #7 cannot be
`
`carried out without the steps of Example #4.
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`Several embodiments in the ’413 application use the technology of Example
`
`#7, which itself references the decryption techniques of messages in Example #4.
`
`(Ex. 2208 at 288:30-289:21, 291:9-292:6). Support for the Substitute Claims is
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`found in the “Wall Street Week” program embodiment which is described within
`
`the disclosure of Example #7 (id. starting on page 288), and in the “Exotic Meals
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`of India” program embodiment, which is described later in the ’413 application,
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`and incorporates the methods of Example #7. (Id. at 469:1-516:13). Specific
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`element-by-element support for the Substitute Claims is illustrated in Appendix B
`
`to this Motion and in the Dorney Dec.
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`a. The “Wall Street Week” Television Program
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`The “Wall Street Week” program is a TV show including digital audio and
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`digital video, which are encrypted. The show is about the stock market and
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`incorporates a subscriber’s personal stock portfolio information (“subscriber
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`specific digital data”). The instant Original and Substitute Claims rely on the
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`description of the digital audio content for written support. The content is sent to a
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`receiver station, which includes, inter alia, a home TV set and a microcomputer,
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`where it is decrypted. In order to decrypt the content, the receiver station must use
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`a cipher key in combination with a cipher algorithm; the cipher key may be
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`received by the receiver station in an encrypted SPAM message and, in that case,
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`must first be decrypted before it can be used. (Ex. 2208 starting at 288 for
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`Example #7, 197 for Example #4). The SPAM message contains the cipher key
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`Ca, which also indicates the cipher algorithm C should be used from amongst the
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`“plurality of preprogrammed cipher algorithms” at the subscriber station including
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`cipher algorithms A, B, and C. (Id. at 288:23-289:21, 295:24-296:3). The cipher
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`key and cipher algorithm may be used with a decryptor selected from 107, 224, or
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`231 (id. at 286:34-287:7). In addition to the content, a receiver station may also
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`receive unique data corresponding to the content, which it sends to a remote site.
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`(Id. at 31:30-33:6, 49:26-50:32, 297:3-19, 302:35-303:18). This data may be used,
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`for example, to control billing or to collect statistics.
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`b. “Exotic Meals of India” Program
`
`“Exotic Meals of India” is a TV show in which a subscriber is asked during
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`the presentation of a television cooking show if he wishes to receive the recipe
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`discussed in the show for a fee. If the subscriber uses a local input device to key-in
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`the displayed input sequence when prompted, the subscriber’s receiver station will
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`subsequently store and process a transmitted “Exotic Meals” message. The
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`instructions in the message allow a subscriber’s microcomputer (e.g., IBM PC, Ex.
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`2208 at 19:29-20:16) to retrieve “subscriber specific digital data” such as family
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`size and dietary habits from a locally-stored file to customize the “Exotic Meals”
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`recipe and shopping list (id. at 473:3-476:7). At the end of the process, the
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`subscriber’s microcomputer prints both a recipe and shopping list that are
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`“customized” to the subscriber specific digital data (id. at 475:1-2). For example, a
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`small family may only require one pound of halibut fish where a larger family may
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`require two pounds of halibut (id. at 473:3-476:7). Also, the microcomputer
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`computes a shopping list that may include, for example, a jar of curry paste of a
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`particular type. (Id. at 473:3-476:7).
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`In one embodiment, the “Exotic Meals” message is received by the receiver
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`station over an all-digital communication channel in encrypted form, and must be
`
`decrypted by the receiver station. (Id. at 476:34-477:29, 420:21-421:6, 286:9-
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`287:7). The digital content in this embodiment consists of instructions to a
`
`computer to “customize” a recipe and shopping list and then print that customized
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`information. (Id. at 473:3-476:7). The method of decryption and transmission of
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`unique data to a remote site is identical to the method disclosed in the “Wall Street
`
`Week” program. (Id. at 31:30-33:6, 49:26-50:32, 473:3-13, 473:29-474:1).
`
`The ’413 application discloses that the “Exotic Meals” message may be
`
`encrypted using any of the techniques described in the ’413 application. (Id. at
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`478:1-5). Accordingly, the digital “Exotic Meals” message may be encrypted as
`
`taught for the encrypted digital audio in Example #7. Likewise, the decryption key
`
`Ca, used in the “Exotic Meals” embodiment to decrypt the encrypted digital
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`“Exotic Meals” message, may be encrypted before transmission and, if it is
`
`encrypted, may be decrypted at the subscriber station according to Example #4.
`
`(Id. starting at 288 for Example #7, 197 for Example #4).
`
`c. Support for Original Claim 3 and Substitute Claim 41
`
`Original claim 3 and substitute claim 41 are supported by the ’413
`
`application (id. starting on page 429), and are drawn to a “remote transmitter
`
`station,” a station that is part of the chain of transmission of the content from the
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`program originating studio to the receiver station. The ’413 application calls this
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`remote transmitter station an Intermediate Transmission Station (“ITS”). (Id.
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`starting on page 429). The ’413 application discloses the operation of an ITS to
`
`communicate digital audio of the “Wall Street Week” program: a “control signal”
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`that controls communication is embodied by the signal that includes particular time
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`information (e.g., 8:30 PM) and instructions that regulate the timing of events at
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`the ITS (Ex. 2208 at 430:32-435:15); a “code or datum” that identifies a unit of
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`digital programming is embodied by the identifier included with the “Wall Street
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`Week” program (id. at 430:32-431:18); “one first instruct signal” is embodied by
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`the transmitted signal used to enable a receiver station to receive the “Wall Street
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`Week” program (id. at 430:32-432:18); and “second instruct signal” is embodied
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`by the transmitted signal that operates at the subscriber station to identify and
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`decrypt the digital audio (id. at 430:32-439:27).
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`The ITS transmits information including the “encrypted digital audio,”
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`“absent any scrambling,” and signals received at the ITS. (Id. starting on page
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`429). Furthermore, the ITS encrypts the digital audio “using one of a plurality of
`
`cipher algorithms preprogrammed at [the] subscriber station,” and the ITS
`
`transmits a cipher algorithm identification that “may be changed to a different one
`
`of said plurality of cipher algorithms.” (Id. at 279:30-280:14).
`
`d. Support for Original Claims 4 and 7 and Substitute Claims 42 and 43
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`The original claim limitations in challenged claims 4 and 7 and the newly
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`added limitations in substitute claims 42 and 43 are fully supported by the “Wall
`
`Street Week” embodiment. (Ex. 2208 starting on page 288, Figs. 1A, 1B, 1C, 4).
`
`The “Wall Street Week” program is transmitted with “encrypted digital audio” and
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`“encrypted digital video.” The audio is encrypted using cipher algorithm C and
`
`cipher key Ca, which may also be encrypted in a SPAM message. (Ex. 2208 at
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`288:23-289:21; 291:9-292:6, 198:10-29). The SPAM message may be decrypted
`
`using a “second control signal portion.” (Id. at 291:9-292:6, 198:10-199:2).
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`Successful decryption of the digital audio may cause the receiver station to
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`record “unique digital data” related to the programming, i.e., SPAM message
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`meter-monitor information, for automatic communication to a “remote site” for
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`billing and/or statistic purposes (id. at 297:3-19, 302:35-303:18, 28:25-35, 49:26-
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`50:32). Under different decryption routines and using different hardware,
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`“encrypted digital video” is also decrypted (id. at 297:20-311:16). The “Wall
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`Street Week” program audio is “coordinated in time to bring meaning to” the
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`video. (Id. at 310:3-24, 435:2-15). Furthermore, the receiver station includes a
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`microcomputer that stores the “subscriber specific digital data,” i.e., subscriber’s
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`stock portfolio information, in a “computer file with a file extension” (id. at 21:5-
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`31, 448:25-449:9, 516:15-28, 523:8-12). During the “Wall Street Week” television
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`show presentation, a computer generated overlay graphic based on the subscriber’s
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`stock portfolio is “presented.” (id. at 24:22-28:3, 125:31-126:1).
`
`e. Support for Original Claims 13, 18, 20, 32, and 33 and Substitute
`Claims 44-48
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`The original claim limitations in challenged claims 13, 18, 20, 32, and 33
`
`and the newly added limitations in substitute claims 44-48 are fully supported by
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`the ’413 application, specifically, the “Exotic Meals of India” embodiment. (Ex.
`
`2208 starting on page 469).
`
`The “subscriber specific digital data” for the “Exotic Meals” message
`
`including the family size and dietary habits is stored in the microcomputer in a
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`computer file with a file extension named A:DATA_OF.URS (id. at 473:29-476:7,
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`516:16-28). The same file also stores subscriber specific “unique digital data,” i.e.,
`
`the subscriber’s street address, which is unique from other addresses. The street
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`address is “absent any digital information provider assigned access information.”
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`Substitute claims 44-48 require transmission over channels that are all
`
`digital. Figure 7F, the block diagram for the Exotic Meals program, encompasses
`
`channels that are all digital. As illustrated in Figure 7C, the output from cable
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`converter box 222 is “one digital data channel.” An ITS transmits a digital
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`message (comprising, for example, a news article on AT&T) on a digital data
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`channel (id. at 421:18-22, 422:4-22) of the multi-channel cable transmission shown
`
`in Fig. 7F. Cable converter box 222 tunes to the digital data channel by tuning to
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`“a particular television frequency transmission” (id. at 423:11-30) to output the
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`“one digital data channel”. (Id. at Fig. 7F). Cable converter box 222 only has the
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`ability to select a frequency band and convert the signal to “a given output
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`frequency.” (id. at 286:12-17). Accordingly, to have “one digital data channel”
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`output from cable converter box 222, the input selected by the cable converter box
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`222 is also a digital data channel as cable converter box only converts an input
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`channel to a given output frequency. (Id. at 286:9-26).
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`Subsequently, the “one digital data channel” information is input to
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`decryptor 224, which only “has capacity for receiving encrypted digital
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`information.” (Id. at 286:34-287:7). As the ’413 application discloses, a
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`“television frequency” is used for the digital transmission, but the signals in the
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`channel of the “television frequency” have neither TV (conventional or digital)
`
`signals, nor any other non-digital information. (Id. at 423:11-26). Only digital
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`SPAM messages reside on this digital data channel. (Id. at 419-427). Other
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`channels of the multi-channel cable transmission in Fig. 7F (id.) may contain TV
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`signals output by cable converter box 201, shown as “one TV channel.”
`
`VI. THE AMENDED CLAIMS ARE PATENTABLE OVER THE
`PRIOR ART
`
`The amended claims are all supported by the ’413 application, and therefore,
`
`Patent Owner herein illustrates patentability over art that is dated prior to
`
`September 1987.
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`The substitute claims are patentable over all “prior art of record,” i.e., any art
`
`submitted during prosecution, in this proceeding, and in IPR2016-00754, which
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`also challenges the ’635 patent. (MasterImage 3D, Inc. v. RealD Inc., IPR2015-
`
`00040, Paper 42, July 15, 2015). The substitute claims are also patentable over all
`
`prior art that has been brought before the Board in proceedings on related patents,
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`including IPR2016-00751 and IPR2016-00753, brought by Apple, Inc., and
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`IPR2014-01527, IPR2014-01528, IPR2014-01530, IPR2014-01531, IPR2014-
`
`01532, IPR2014-01533, and IPR2014-01534, brought by another petitioner. By
`
`considering these wide swaths of art (Exs. 2100-2203) previously applied to claims
`
`described by the same specification, which encompasses numerous different
`
`technical areas, Patent Owner believes it is fairly representing all prior art known
`
`to be relevant to the Substitute Claims.
`
`a. The Substitute Claims Are Patentable Over The Art in the
`Instituted Grounds
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`IPR of original claim 3, drawn to a “remote transmitter station,” was
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`instituted over Campbell (Ex. 1044; Paper 7 at 48-57). Substitute claim 41
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`requires “wherein said remote transmitter station encrypts, absent any scrambling,
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`said unit of digital programming using one of a plurality of cipher algorithms
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`preprogrammed at said subscriber station, wherein a cipher algorithm identification
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`transmitted by said remote transmitter station may be changed to a different one of
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`said plurality of cipher algorithms.” Campbell (Ex. 1044) fails to teach any of
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`IPR2016-01520 (U.S. Pat. 8,559,635)
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`these amended limitations. Campbell’s digital programming is either scrambled or
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`transmitted in the clear. (Ex. 1044 at 7:51-57, 8:18-38, 9:3-10) Campbell is silent
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`as to a cipher algorithm.
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`IPR of original claim 4 was instituted over Seth-Smith (Ex. 1043; Paper 7 at
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`42-48). Substitute claim 42 requires, inter alia, element (1):“said subscriber
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`station storing a computer file with a file extension;” element (2): “said second
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`decryptor using one of a plurality of preprogrammed cipher algorithms chosen
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`from said plurality at said subscriber station;” and element (3): “outputting audio
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`coordinated in time to bring meaning to video.”
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`With respect to element (1), Seth-Smith (Ex. 1043 at 40:21-34) teaches the
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`use of a specialized microprocessor designed for automotive use, which does not
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`require file systems. Indeed, Seth-Smith is silent as to a computer file with a file
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`extension.
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`With respect to element (2), Seth-Smith teaches that the received TV video
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`at a subscriber station is a scrambled analog signal (Ex. 1043 at 5:11-15, 12:62-66;
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`Ex. 2203 at Fig. 1, incorporated by reference into Ex. 1043 at 18:19-20), and not
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`the claimed received encrypted digital video absent any descrambling.
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`Furthermore, Seth-Smith teaches a “secure” microprocessor (Ex. 1043 at 26:50-54)
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`and decryption keys as offering “a very high degree of security”. (Ex. 1043 at
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`6:17-21, 6:40-42). These keys may be used in conjunction with a single bit to
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`IPR2016-01520 (U.S. Pat. 8,559,635)
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`select between two “descrambling algorithms” (Ex. 1043 at 18:15-20, Fig. 10);
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`however, selecting a different descrambling pattern is not the same as choosing a
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`cipher algorithm from the claimed plurality of cipher algorithms preprogrammed at
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`the subscriber station: both the ’413 application (Ex. 2208 at 311:28-33) and Seth-
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`Smith (Ex. 1043 at 12:62-66,18:15-20, 19:28-30, 28:18-33, 29:61-30:20, 38:21-42,
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`Figs. 17, 21; incorporated by reference Ex. 2203 at 4:1-6, Figs. 4-7) distinguish
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`between scrambling and encryption. Seth-Smith is silent as to having more than
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`one decryption algorithm for the descramble pattern selection. (Ex. 1043 at 38:21-
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`42, Figs. 18, 21).
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`With respect to element (3), Seth-Smith (Ex. 1043 at Abstract) teaches
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`digital data for teletext. Teletext has no support for audio (Ex. 2153), let alone
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`audio coordinated in time to bring meaning to video.
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`IPR of original claim 7 was instituted over Seth-Smith. Substitute claim 43
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`requires, inter alia, element (1): “wherein said programming further includes
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`unique digital data, said subscriber station communicating said unique digital data
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`to a remote site; and element (2): “said second decryptor decrypts, absent any
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`descrambling, using one of a plurality of cipher algorithms preprogrammed at said
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`subscriber station chosen based on said decrypted control signal portion.”
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`With respect to element (1), Seth-Smith (Ex. 1043 at 10:19-27) teaches away
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`from “communicating to a remote site” by stating, “In this way, no uplink facility
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`IPR2016-01520 (U.S. Pat. 8,559,635)
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`at the user’s station need be provided.” Instead, any communication from the
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`subscriber station is performed using a voice telephone system with the subscriber
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`speaking with the broadcaster’s (human) representative. (Id. at 9:38-40, 10:19-27,
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`16:11-18).
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`With respect to element (2), Seth-Smith teaches using one decryption
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`algorithm, and although Seth-Smith acknowledges that many algorithms do exist
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`(Ex. 1043 at 38:21-42, Figs. 18, 21), it does not allow modifications to enable
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`multiple digital cipher algorithms, lest the secure microprocessor “be destroyed”.
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`(Ex. 1043 at 26:50-54).
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`IPR of original claims 13, 18, 20, and 32 (Ex. 1003) was instituted over
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`Chandra (Ex. 1041, Paper 7 at 25-36), and IPR of original claim 33 (Ex. 1003) was
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`instituted over Chandra (Ex. 1041) in view of Nachbar (Ex. 1042, Paper 7 at 37-
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`41). Each of substitute claims 44-48 require, inter alia, element (1): receiving
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`and decrypting unique digital data that is communicated to a remote site: and
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`element (2): customizing decrypted information dependent on subscriber specific
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`information stored at the receiver station prior in time to receiving the information
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`to be customized. Substitute claims 46 and 48 further require element (3): the
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`customized information to include a shopping list. Substitute claims 44-45 and 47-
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`48 further require element (4): identifying a cipher algorithm from a plurality of
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`cipher algorithms preprogrammed at a receiver station.
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`IPR2016-01520 (U.S. Pat. 8,559,635)
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`With respect to element (1), Chandra (Ex. 1041), cited for its teaching of
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`decryption, provides no details regarding transmission of any specific information
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`to a remote site. With respect to element (2), Chandra (Ex. 1041) is completely
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`silent as to identifying a cipher algorithm from a plurality of cipher algorithms
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`preprogrammed at a receiver station. Chandra, at best, teaches a series of
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`decryption steps using a physically secure coprocessor. (Ex. 1041 at Abstract,
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`26:15-44, Fig. 8). With respect to element (3), both Chandra and Nachbar (Ex.
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`1042) are completely silent as to customizing decrypted information, and neither
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`Chandra nor Nachbar, alone or in combination, show or suggest a shopping list is
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`included in the customized decrypted information. With respect to element (4), the
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`cipher algorithm for function C2 and C4, shown in Fig. 8 (Ex. 1041), is fixed and
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`Chandra only discusses identifying the proper key (e.g., CSK) to be decrypted, but
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`not choosing/identifying between a plurality of cipher algorithms. (Ex. 1041 at
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`26:15-44).
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`b. The Substitute Claims Are Patentable Over All Art Known To
`Patent Owner
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`The Substitute Claims all claim specific limitations not found in any prior art
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`of which Patent Owner is aware. The Substitute Claims, therefore, are not
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`anticipated by any prior art reference and are not rendered obvious by any
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`combination of prior art references because a determination of obviousness cannot
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`be based on a combination where certain specific components used in the
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`implementation of the combination are not found in the prior art at all. Abbott
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`Labs. v. Sandoz, Inc., 544 F.3d 1341, 1351 (Fed. Cir. 2008) ( “that each and every
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`claim limitation [must] be found present in the combination of the prior art
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`references before the [obviousness] analysis proceeds”); see also KSR
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`International Co. v. Teleflex Inc., 550 U.S. 398, 420-421 (2007); W.L. Gore &
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`Assoc., Inc. v. Garlock, Inc., 721