`__________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`__________
`
`EMC CORPORATION, LENOVO (UNITED STATES) INC., and
`NETAPP, INC.,
`Petitioner,
`
`v.
`
`INTELLECTUAL VENTURES I, LLC,
`Patent Owner.
`__________
`
`Cases IPR2017-00374 and IPR2017-00439
`Patent 8,275,827 B2
`__________
`
`Record of Oral Hearing
`Held: March 5, 2018
`__________
`
`
`
`
`Before JEFFREY S. SMITH, GEORGIANNA W. BRADEN, and DANIEL
`J. GALLIGAN, Administrative Patent Judges.
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`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER:
`
`
`PETER M. DICHIARA, ESQ.
`MICHAEL SMITH, ESQ.
`Wilmer Cutler Pickering Hale and Dorr, LLP
`60 State Street
`Boston, Massachusetts 02109
`(617) 526-6466
`peter.dichiara@wilmerhale.com
`
`
`
`ON BEHALF OF THE PATENT OWNER:
`
`
`DANIEL BLOCK, ESQ.
`STEVE PAPPAS
`Sterne Kessler Goldstein Fox
`1100 New York Avenue, NW
`Washington, DC 20005
`(202) 371-2600
`dblock@skgf.com
`
`
`
`
`The above-entitled matter came on for hearing on Monday, March 5,
`
`2018, commencing at 12:00 p.m. at the U.S. Patent and Trademark Office,
`600 Dulany Street, Alexandria, Virginia.
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`P R O C E E D I N G S
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`JUDGE BRADEN: Good afternoon. We are convened here today
`for oral arguments in IPR 2017-00374 and IPR 2017-00439, both of which
`challenge U.S. Patent No. 8,275,827.
`I am Judge Braden. Also appearing remotely is Judge Galligan and
`our colleague in the room with you in Alexandria is Judge Smith.
`As Judge Galligan and I are appearing via video, we require
`counselors to speak directly into the microphone at the podium when talking
`and to identify specific slide numbers when referring to demonstratives.
`Each party today has 45 minutes total time to argue both cases.
`Petitioners, EMC Corporation, Lenovo (United States) Inc. and
`NetApp, Inc., have the ultimate burden of establishing unpatentability.
`Therefore, petitioners will open the hearing by presenting its case as
`presented in its petitions regarding the unalleged, sorry, regarding the
`alleged unpatentability of the challenge claims.
`Petitioners may reserve
`rebuttal time.
`Thereafter, patent owner, Intellectual Ventures LLC, will respond to
`petitioner's arguments. Petitioner then will go last and use any reserved
`rebuttal time to address arguments for either the grounds in either the
`petitions.
`Otherwise, the parties may use its allotted time to discuss the two
`cases in any order they choose. We ask, however, that you make it clear
`which case and which claims you are addressing.
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`In order to ensure clarity of the record, following the hearing, please
`provide the court reporter with a list of names and word spellings.
`Lastly, we ask that the parties hold any objections regarding party
`arguments until it is their time at the podium. To be clear, we will not take
`objections during a party's argument. You must wait until it is your turn at
`the podium to note any objections.
`I will maintain a clock and inform the parties when they have five
`minutes left. If possible, if we have a clock in the room running as well,
`we will try to do so.
`Now let's get started with appearances for both sides. We will start
`with petitioner.
`MR. DICHIARA: Good afternoon, Your Honor. My name is
`Peter Dichiara, and with me today is Michael Smith. And we will be
`presenting on behalf of the petitioners.
`I'll be focusing on the 374 IPR, and Mr. Smith will be focusing on
`the 439 IPR. And we'll have a clean handoff on that.
`JUDGE BRADEN: Very good. We appreciate that. Patent
`owner?
`MR. BLOCK: Good afternoon, Your Honor. Daniel Block from
`the law firm of Sterne, Kessler, Goldstein and Fox on behalf of patent
`owner, Intellectual Ventures.
`I'll be presenting both the 374 and 439 proceedings. With me today
`is Steve Pappas of Sterne, Kessler as well as James Hietala and Tim Seeley
`from Intellectual Ventures.
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`JUDGE BRADEN: Very good. Thank you, patent owner.
`Petitioner, do you wish to reserve any rebuttal time?
`MR. DICHIARA: Yes, we do, Your Honor.
`JUDGE BRADEN: How much?
`MR. DICHIARA: We'll see how it goes. We think it's probably
`going to be about 15 minutes.
`JUDGE BRADEN: All right. We'll note that. Thank you. All
`right petitioner, you may begin your arguments when ready.
`MR. DICHIARA: Good afternoon. May it please the Board, as I
`just mentioned, my name is Peter Dichiara, and with me today is Michael
`Smith from Wilmer Cutler Pickering Hale and Dorr.
`And we represent the petitioners and the two IPRs we're discussing
`this afternoon. With us today is Mr. Tom Brown from petitioner EMC.
`Turning to slide 2, we're here to discuss the 827 patent and why the
`challenged claims are unpatentable.
`And as we see in slide 3, the 827 patent concerns something known
`as the distributed storage system.
`As we explained in our papers -- this is one of the annotated figures -
`- from our petition, there are user devices shown in red on the left. The
`green entities on the bottom in the slide are called NAS client devices. The
`claim refers to them as selected distributed devices. And the blue entities
`in the slide are called data location libraries. And in the claims, they're
`referred to as location information.
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`And in short, the way the system operates is that those green entities
`are ordinary computers. But by software -- or via software, they're made to
`represent themselves as or mimic NAS devices, N-A-S. And they do this
`by making their otherwise underutilized storage available to the user devices
`connected to them on the network.
`Turning to slide 4, I have a portion of the file history on the screen
`which we think is some important context.
`As we explained in our papers, this patent was stuck in the patent
`office during normal prosecution for a long time, for about ten years.
`Patent Office wasn't finding anything distinctive until eventually the
`applicants narrowed the claims to recite the location information as we see
`here on the screen.
`And the reason why we think this is important is that, given this
`context, one might reasonably expect that it's the location information which
`was supposedly distinctive over the prior art.
`But as we know from the various papers in the IPRs, this isn't the
`case. In each IPR, the petitions primary references disclose the location
`information multiple times over. And in fact, the patent owner hasn't even
`attempted to dispute that fact.
`JUDGE BRADEN: All right. Well, given that case, can we go
`ahead and move to claim construction?
`MR. DICHIARA: Yes, Your Honor.
`JUDGE BRADEN: And specifically, I'd like you to focus on the
`representing limitation.
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`MR. DICHIARA: Certainly, Your Honor.
`JUDGE BRADEN: I understand, and I don't want to put words in
`patent owners' mouths, but I understand from their briefs that there's an
`argument regarding representing with a corresponding software-based NAS
`component that the selected distributed devices respectively comprise NAS
`devices having an available amount of storage resources.
`I understand their arguments to mean that the term "respectively" --
`which according to one of their exhibits -- is defined as individually and
`separately, meaning that for every NAS device, you have to have a separate
`representation of the distributed device.
`Explain to me petitioner's position, either why you don't agree and
`explicitly explain to me if we were to go with patent owner's construction,
`why would you argue that OceanStore would still render these claims
`obvious?
`MR. DICHIARA: Yes, Your Honor, happy to. So let me go to
`the claim construction first, and I think the slide that I want, I just need to
`jump to, is slide 13.
`And as we set forth in our papers, we feel OceanStore satisfies this
`claim limitation under any of the constructions. But focusing on patent
`owner's, we felt that the patent owner's construction was improper for two
`reasons. One of which is the one you just mentioned, Your Honor.
`So if we jump to slide 15, I think this is the --
`JUDGE BRADEN: Well, I understand their arguments mean when
`they say it's caused each selected distributive device to separately appear, as
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`you have on slide 13. But I believe that's based on the recitation of the
`word "respectively" in the claim.
`MR. DICHIARA: Correct, Your Honor, correct. That's --
`JUDGE BRADEN: Okay.
`MR. DICHIARA: -- their basis for it. In slide 15, we're trying to
`zone in on just that point about the each and the separate.
`We feel that the claim term is broad enough to cover something like
`that, but it's not limited to something just like that. We don't think that the
`spec demands this one-to-one correspondence that they seem to be insisting
`upon.
`
`JUDGE BRADEN: Okay. I find that interesting. So you say the
`spec doesn't demand it, but does the claim itself demand it?
`MR. DICHIARA: Well, we think no, Your Honor. And we think
`the reason is this.
`If I can go back to slide 13 and show the actual claim language, it's
`talking about a set of selected distributed devices respectively comprising, I
`know I changed comprised to comprising, NAS devices.
`And what it's talking about, as we set forth in our opening papers, is
`really about the representing step. It's that via this software, the
`corresponding software-based NAS components, the selected distributed
`devices are going to be made to appear or mimic a set of NAS devices.
`That's something that's confirmed in the file of history.
`And so we feel that follows, both from having one set of devices, the
`selected distributed devices, and another set of devices, the NAS devices,
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`and that the respectively comprise is saying that these distributed devices, in
`essence, are or are becoming, or are being made to represent NAS devices.
`And what they focused on is just the word "respectively" and it's the
`correct dictionary definition. There's a lot of dictionary definitions that talk
`about "respectively".
`Some of them will say that to get their meaning that they're
`proposing, it's usually something where there are a set of two or more items
`corresponding to another set of two or more.
`So for example, Sally and Jane are 14 and 15, respectively, would be
`a way of saying, Sally is known to be 14 and Jane is 15.
`And they accuse of us of reading the word "respectively" out, and I
`don't think that's right at all.
`If you were to take the word "respectively" out of the claim and you
`just said this selective distributed devices comprise NAS devices, that would
`be saying the selected distributed devices include NAS devices. And that,
`in fact, would be reading this whole notion of representing out of the claim.
`What this claim element is talking about is having the selected
`distributed devices mimic NAS devices by virtue of their software.
`We feel it's broad enough to cover a one-to-one correspondence, but
`we don't think it's limited to a one-to-one correspondence.
`That's the nature of our dispute. And at the end of the day, it really
`doesn't matter because OceanStore should satisfy either way in our view.
`JUDGE BRADEN: All right. Explain that to me.
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`MR. DICHIARA: Okay. Would it make sense for me to talk
`about the other reasons we dispute their claim construction? I don't know
`if you want to --
`JUDGE BRADEN: No, I want to hear about why you believe that
`if we were to agree with their construction, why you believe that OceanStore
`would still read on this claim.
`MR. DICHIARA: Certainly. So let me jump to slide 14. Strike
`that. I don't mean 14. I think it is 15.
`So here's the construction. And as we explained in our papers, we
`didn't think the construction is right. But regardless, we think we satisfy.
`And one of the reasons is that the ’827 patent discloses several
`embodiments, one of which is known as a NAS fabric implementation.
`And in fact, it's that embodiment which is the one which specifically
`requires the location information that the claims were amended to include to
`get the case allowed in the first place.
`So we feel that the claim must cover that embodiment. We know
`through the Federal Circuit that they state that the claim construction should
`cover preferred embodiments. It's rarely, if ever, correct to exclude
`preferred embodiments.
`We think in this context, particularly in the case of the claim
`amendments, it certainly should be covering storage fabric implementations
`under any construction and --
`JUDGE BRADEN: Do you agree, however, that there's Federal
`Circuit case law that says not every claim must cover every embodiment?
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`MR. DICHIARA: That's correct, Your Honor. And I think that's
`actually captured in the Federal Circuit cases that I'm talking about.
`They don't say that there aren't exceptions. But you're going to
`have to really sort of show. As a guiding principal, you're trying to cover
`all of the embodiments and then try and explain away why something
`shouldn't be covered.
`So back to OceanStore on this. OceanStore -- I'm going to flip to a
`figure that's showing this well. If we go to slide 10. Michael, can you
`jump to 10 quickly, quicker than I can?
`What OceanStore has is -- I'm using the same color convention that
`we used for the ’827 patent. Its user devices connect to this ocean of
`storage. That's what you're seeing on the left. And on the right, you're
`seeing more detail about the way OceanStore is actually constructed.
`This is one of the figures showing one of the ways that data is
`located within this vast ocean of storage.
`And what they have are these various nodes -- N1, N2, N3 -- and
`each of those nodes is making its storage available to network-connected
`users.
`
`And turning to slide 12, this is from the patent owner response. I
`don't think there's anything controversial here. It's consistent with
`statements we've made. It's consistent with statements that the Board has
`made and the Decision Institute.
`NAS device in the patent is used broadly to refer to a device that's
`making its storage resources available to network-connected users.
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`And that's precisely what you're seeing in slide 10. The nodes, their
`storage is available to the network-connected users.
`And consistent with slide 15, if we can jump, it's a situation in which
`a device is just like the patent, that distributed OceanStore devices are
`working cooperatively as NAS devices to form a storage fabric.
`OceanStore doesn't use the word "fabric". They use the word
`"ocean". But it's the same thing.
`So under any of the constructions, any possible construction that's
`going to be consistent with the notion that the claim should cover the
`embodiments which actually have location information, we feel OceanStore
`satisfies.
`JUDGE BRADEN: Okay. I want to make sure I understand
`figure 2 that you are discussing from OceanStore.
`The N1, N2, each of the nodes, those are separate nodes, correct?
`MR. DICHIARA: Right. They call them nodes or pool devices.
`JUDGE BRADEN: Yes, and are each of those nodes represented in
`OceanStore?
`MR. DICHIARA: Yes.
`JUDGE BRADEN: As a NAS?
`MR. DICHIARA: Yes, Your Honor, in multiple ways.
`The first way is just consistent with the terminology in slide 12. It's
`making its data storage resources available to network-connected users.
`That's one way.
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`Another way, if I may, let me jump to this slide right here. This is
`something that --
`JUDGE BRADEN: Which slide is that?
`MR. DICHIARA: I'm sorry, slide 14. I apologize, Your Honor.
`JUDGE BRADEN: Okay. Thank you.
`MR. DICHIARA: And this concerned one of the other reasons
`why we had an issue with their claim construction. But let me just focus on
`the lower blurb.
`This is right out of OceanStore. It's something that The Decision
`Institute discussed at page 14.
`In fact, the patent owner response, when it was just providing an
`overview of OceanStore, referred to it. And what goes on is that
`OceanStore works in this two-step approach.
`The first step is find the data. It could be any place in the ocean.
`You might be traveling from California to Washington D.C. If your data
`was still near California, OceanStore is going to find where the data exists.
`That's what goes on in the first phase.
`And the figure that we were just talking about, figure 2, is one of the
`ways. There's another figure, figure 3, which is another way where it
`finds the data.
`But once that data is found, OceanStore says, at that point, then you
`can route your messages directly to the destination.
`So if we go back to slide -- if I remember correctly -- 10, in this
`instance, N3 is holding the data.
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`So first, it's found. N3 raises its hand. It says, I have the data.
`And then the user can communicate directly to N3 and say, I would like that
`object.
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`There's no reason for it to use the resources of all the other nodes
`that were used in the finding step. You can route your messages directly.
`And again, this is something The Decision Institute said. This is
`something that the patent owner said when they were overviewing
`OceanStore. Perhaps they didn't realize it.
`But what this means is that user devices directly contact the nodes
`that actually hold the data. That's what is meant on slide 15 when it says
`that you can route the messages directly to the destination once they've been
`identified as such.
`JUDGE BRADEN: All right. Thank you, counselor.
`MR. DICHIARA: Given the time and to save time for my
`colleague, are there any other questions in OceanStore that you would like
`me to address at this point? If not, I'll save the time for rebuttal.
`JUDGE BRADEN: No, I think we understand your position. So
`we will note this time for your rebuttal. Thank you.
`MR. DICHIARA: Okay. So at this point, I'm just going to hand
`the baton to Mr. Smith who will present on Carter.
`MR. SMITH: Good afternoon, Your Honors. I will be presenting
`on Carter which is the primary reference for the 439 IPR. And I've now
`gone to slide 28 which is the first slide for our Carter presentation.
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`Like OceanStore and like the ’827 patent, Carter describes a system
`where you have a series of devices, of PCs that mimic NAS devices by
`making their storage resources available.
`What I'd like to do is provide a brief overview of Carter and then I'll
`get into the issues. But obviously, let me know if you have questions or
`would like me to jump to anything before then.
`So what I'm showing here on slide 29 is figure 1 from Carter. And
`we're using the same color coding that we've used earlier to annotate the
`system.
`So what you see is, in this case, it's showing four PCs. Though,
`obviously, there could be more in the system, each of them has a software
`component on it called a shared memory subsystem.
`So you can see all four of the devices each have their own software
`component. And what that software component does is it allows each PC
`to represent or mimic that it's a NAS device.
`So what we see in this example is the PC shown in green in the
`bottom right corner representing that it's a NAS device and making its
`storage available. And we see the PC in the top left corner annotated in red
`accessing that storage.
`So in this way, we have a collection of devices that each represent
`that they're NAS devices.
`Figure 11, which is another figure we discussed in our petition,
`shows another example of this process and shows it in a little bit more detail.
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`So here we're focusing just on two devices, and I've now moved on
`to slide 30.
`So what we see here on the left -- again, it's a device shown in green
`-- that is going to make it storage available to other devices in the system
`and in that way, represent or mimic a NAS device and a device, shown on
`the right in red, that will access that storage.
`And in this example, it's going to access the memory pitch 5 that's
`stored on the device on the left. And this also illustrates the location
`information shown in blue that's used to map to the location of that
`information on the device.
`So again, this shows just one device that's mimicking a NAS device,
`and you have other devices throughout the system that are doing the same.
`So you have multiple NAS devices.
`A second --
`JUDGE BRADEN: But I understand patent owner's arguments to
`be that Carter only has a single shared space, not individual NAS devices.
`MR. SMITH: I believe that is patent owner's argument, and that
`argument is incorrect. And it's incorrect for several reasons.
`So first is just on the substance. It's incorrect because, as we were
`talking about earlier, the parties agree that a NAS device is a device that
`makes its storage resources available to other computers.
`And if we go back to slide 30, that's exactly what these devices are
`doing. So each device in the system is mimicking or representing a NAS
`device by making its storage resources available.
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`JUDGE BRADEN: And is each one of these devices visible to a
`user on the system?
`MR. SMITH: So each of these devices, it is visible to a user on the
`system. And it is visible to a user on the system because it needs to
`represent to the system and to the software that runs on each of the user
`devices that it has storage available.
`And likewise when the users access the storage, they need to be able
`to follow through with the location information in order to access the data.
`JUDGE BRADEN: So I want to make sure I understand your
`position. So the whole visible to a user -- I believe that is the language
`used by -- let me get patent owner's proposed construction -- to cause each
`selected distributed device to separately appear to network-connected user
`devices as a dedicated NAS device.
`So the argument from petitioner is that as long as it's something that
`a user device can detect there is open space, then it is visible to the user
`device, correct?
`MR. SMITH: So our position is that -- well, so first off, I'll just
`note that so you did read their construction. What they have argued in their
`papers is that there is only a single NAS device, and they didn't specifically
`address how Carter appears to the individual users.
`But to get to your question, our position is that Carter does satisfy,
`even under their construction, because each of the devices in Carter will
`represent to the system and to the other devices that it has storage resources
`available.
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`JUDGE BRADEN: Very good. Thank you, counselor.
`MR. SMITH: So then just briefly going to slide 31, and this, I
`think, goes to a second point that not only does the system substantively
`have multiple NAS devices, that each represent that they have storage, but it
`also -- just like the NAS fabric in the 827 patent, the devices can cooperate.
`And they can cooperate in a few different ways.
`One way is to mimic what Carter refers to as virtual drives. So you
`can have multiple devices that will appear as the F: drive or the N: drive.
`So this is a second way in which they mimic multiple NAS devices.
`And then they also aggregate their storage just like the NAS fabric. So
`again, this is a point of similarity with the 827 patent.
`The patent owner, in their patent owner response, and we point this
`out in our reply, selectively quotes some of the language where we talk
`about the aggregate and refer to that as a NAS device.
`And as you'll see in the paper, those are taken out of context.
`Those are just showing the similarity with the NAS fabric and don't take
`away from the fact that each of the individual devices is still mimicking or
`representing a NAS device by making its storage available.
`So here, we have the five issues that the patent owner has raised in
`their patent owner response. We've covered the representing limitation.
`Are there other issues that the Board would like me to address during
`our time for Carter?
`JUDGE BRADEN: You have five minutes left until you start
`eating into your rebuttal time. But if you have time, briefly address the
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`assessing and the storage priority control. And I believe assessing is in
`claim 1 and 13 and storage priority control in dependent claims 9 and 21.
`MR. SMITH: Yes, so just to briefly touch on each of those. So
`now going to slide 40.
`So one of the things we talked about in our papers is that assessing
`and allocating are both basic memory functions when -- and that predate the
`’827 patent by decades.
`So when a device, whether it's a local storage or distributed storage
`wants to make memory available, it needs to assess what storage is available
`and then allocate that storage.
`In the ’827 patent, the claim itself doesn't say anything about how to
`assess. And Dr. Shenoy, going to slide 41, also admitted that the
`specification doesn't say anything about it.
`So in that context, going to slide 42, we have in Carter a very
`straightforward disclosure of assessing and allocating.
`So here, we see, first, you're going to determine the availability of
`resources such as hard disk space. So you're going to assess what resources
`are available, and then you will -- and in that sentence -- distribute those
`resources or allocate them. And the Board correctly recognized in its
`institution decision that Carter satisfies this.
`During the deposition, we asked Dr. Shenoy about this. We believe
`this is sufficient, so we asked a series of questions to just evaluate the weight
`that should be given his opinion and on slides 43 and 44, identified
`additional examples where he admitted that, on slide 43, Carter was
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`determining the free space available for allocation, slide 44, requesting the
`total available space. So we think this is more than sufficient to disclose
`assessing.
`Unless the Board has any questions, I'll move to the priority control.
`So now moving to slide 55, here we just are showing the storage
`priority control limitation.
`Moving to slide 56, Carter discloses storage priority control in
`several ways.
`One of them is it does hierarchical data management. It also
`performs load balancing and data distribution. And all of these memory
`management functions involve assessing priority.
`So you need to determine which devices are going to prioritize
`storing data on, which devices are not, whether you're going to store data
`closer to certain devices or father away, whether you're going to prioritize
`keeping space available on certain devices.
`The patent owner, in response, has argued that the claim has
`additional requirements. They say it requires things like privileges or other
`conditions and ranks privileges and priorities.
`That language doesn't appear in the claims or the patent, so we think
`that's incorrect. But regardless, the type of data management functions in
`Carter, such as the hierarchical data management and the load balancing, as
`Dr. Shenoy explains, those would involve looking at ranks, positions,
`privileges.
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`So again, to decide how to distribute the data within the data
`hierarchy, you need to set priorities and you need to look at how you're
`ranking the data, whether there are privileges involved with which devices
`are allowed to store data.
`So we think this satisfies either under the broadest reasonable
`interpretation or under the construction the patent owner has proposed.
`JUDGE BRADEN: Very good, counselor. Thank you, and I
`believe that you are just about out of time.
`MR. SMITH: Okay. I will reserve our remaining time for
`rebuttal. Thank you.
`JUDGE BRADEN: Thank you, counselor. Patent owner,
`whenever you are ready.
`MR. BLOCK: May it please the Board, my name is Daniel Block.
`As I mentioned earlier, I'm from the law firm of Sterne, Kessler, Goldstein
`and Fox. And I'm here on behalf of patent owner, Intellectual Ventures.
`So I was going to start today talking about the allocating limitation,
`but I know that there's been a lot of discussion about representing.
`So I thought it would make sense to start there, and I'm turning now
`to slide 17 of the 374 slides. And this just shows claim 1 from the ’827
`patent.
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`And as was discussed earlier, the claim requires representing that the
`selected distributed devices respectively -- i.e. each -- comprise NAS
`devices having an available amount of storage.
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`And there's been a lot of discussion today about whether or not
`OceanStore or whether or not Carter discloses this representation of each of
`the NAS devices.
`But I think there hasn't been a lot of discussion about the remaining
`part of that limitation, which is that it's not just that OceanStore or Carter
`need to represent that they are NAS devices. They need to represent that
`these NAS devices have an available amount of storage resources.
`And it's important to remember that there's no dispute among the
`parties -- and I'm turning now to 374, slide 19. There's no dispute between
`the parties that the claims require at least two NAS devices.
`So putting the two together, the claims require representing that
`there's at least two NAS devices that each have an available amount of
`storage resources.
`And the problem is that if we turn to OceanStore -- and I'm turning
`now to patent owner's slide 18 of the 374 proceeding. OceanStore just has
`a single device that's represented to the users.
`In other words, the way that OceanStore works is you connect to the
`OceanStore system and you just store data in the system in sort of this
`massive cloud of data.
`There's not two NAS devices. There's not even one