`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
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`LG ELECTRONICS, INC.
`Petitioner
`v.
`FASTVDO LLC,
`Patent Owner
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`Patent No. 5,850,482
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`Inter Partes Review (IPR) No. _________
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`PETITIONER’S REQUEST FOR JOINDER WITH IPR2016-01203
`UNDER 35 U.S.C. 315(c) AND 37 C.F.R. §§ 42.22 AND 42.122(b)
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`TABLE OF CONTENTS
`Statement of Relief Requested ........................................................................ 1
`I.
`Statement of Material Facts ............................................................................. 4
`II.
`III. Statement of Reasons for Requested Relief .................................................... 5
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`A. Legal Standard ............................................................................................ 5
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`B. LGE’s Request for Joinder is Timely ......................................................... 6
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`C. Joinder is Appropriate ................................................................................. 6
`IV. CONCLUSION ................................................................................................ 9
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`TABLE OF AUTHORITIES
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`PTAB Page(s)
`Dell Inc. v. Network-1 Security Solutions, Inc., IPR2013-00385, Paper No. 17
`(July 29, 2013) ........................................................................................................... 6
`Enzymotec Ltd. v. Neptune Techs & Bioresources, Inc., IPR2014-00556, Paper No.
`19 (July 9, 2014) ........................................................................................................ 6
`Nintendo of America, Inc. and Nintendo Co., Ltd. v. Babbage Holdings, LLC,
`IPR2015-00568 Paper No. 12 (March 18, 2015). ...................................................... 3
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`FEDERAL STATUTES
`35 U.S.C. § 315(b) ..................................................................................................... 6
`35 U.S.C. § 315(c) ............................................................................................. 1, 5, 6
`35 U.S.C. § 316(a)(11) ............................................................................................... 8
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`FEDERAL REGULATIONS
`37 C.F.R. § 42.100(c) ................................................................................................. 8
`37 C.F.R. § 42.122(a) ................................................................................................. 5
`37 C.F.R. § 42.122(b) ........................................................................................ 1, 4, 6
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`ii
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`I. Statement of Relief Requested
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`Petitioner LG Electronics, Inc. (“LGE”) respectfully submits this Request
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`for Joinder together with its Petition for Inter Partes Review of U.S. Patent No.
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`5,850,482 (“Petition”). Pursuant to 35 U.S.C. § 315(c) and 37 C.F.R. § 42.122(b),
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`LGE requests inter partes review and joinder with the recently granted IPR in
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`Apple Inc. v FastVDO LLC Case IPR2016-01203 (the ‘1203 IPR) for the same
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`patent in which trial was instituted on the ‘1203 IPR petition on December 16,
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`2016.
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`LGE’s Petition in all material respects presents the same grounds as the
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`petition in the ‘1203 IPR – no new arguments, no new patent claims and no new
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`grounds of unpatentability are added by LGE’s Petition. Furthermore LGE accepts
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`all claim constructions made by the Board in the ‘1203 IPR.
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`LGE’s Request for Joinder and accompanying Petition are being filed within
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`one month of the decision instituting trial in the ‘1203 IPR, and are therefore
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`timely.
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`LGE is filing this petition and joinder Request to ensure that the trial is
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`completed in the event that the current petitioner in the ‘1203 IPR reach settlement
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`with the Patent Owner. Joinder is appropriate here because LGE’s Petition is
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`narrowly drafted to challenge the same claims of USP 5,850,482 (the “’482
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`Patent”) that were challenged in the ‘1203 IPR:
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`1. Claims 1–3, 5–14, 16, 17, 22–26, 28, and 29 of the ’482 patent as
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`unpatentable under 35 U.S.C. § 103 over Kato; and
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`2. Claims 1–3, 5–14, 16, 17, 22–26, 28, and 29 of the ’482 patent as
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`unpatentable under 35 U.S.C. § 103 over Fiala, Fazel, and Fazel ’622.
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`Additionally, joinder will not adversely impact the trial schedule in the
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`‘1203 IPR, as:
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`a. LGE’s legal theories and claim charts are identical to the legal theories
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`and claim charts in the ‘1203 IPR;
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`b. LGE relies on the same expert declaration relied on by the existing
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`petitioner in the ‘1203 IPR;
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`c. No additional expert discovery will be required if joinder is allowed,
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`simplifying discovery;
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`d. LGE will adhere to all applicable deadlines set forth by the Scheduling
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`Order currently in place in the ‘1203 IPR;
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`e. LGE will coordinate with counsel for Apple in the ‘1203 IPR regarding
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`the consolidation of all filings and will not submit any separate filings
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`unless, after consultation with Apple, LGE needs to preserve a position
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`for the record, in which case LGE would limit any additional filing to
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`five (5) pages or less;
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`f. This procedure and continued cooperation of counsel will greatly
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`simplify briefing if the Board permits joinder;
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`g. LGE would be prejudiced if the Board denies the Request for joinder
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`because of the possibility that the petitioner will reach a settlement and
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`the patent owner can successfully move to terminate the proceedings
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`prior to the issuance of a final determination; and
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`h. Any additional costs incurred by the existing parties to the ‘1203 IPR
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`will be minor, particularly as balanced against the prejudice to LGE from
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`a denial of joinder.
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`The circumstances here are very similar to that present in Nintendo of
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`America, Inc. and Nintendo Co., Ltd. v. Babbage Holdings, LLC, IPR2015-00568,
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`wherein Nintendo filed a Motion to join with another petitioner challenging the
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`same patent, asserting the same ground on which the Board had just instituted an
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`IPR. In that joinder motion Nintendo also represented that it would take an
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`understudy role, unless and until all petitioners settled with the patent owner.
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`Although the patent owner later settled with the primary petitioner, the
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`Board allowed Nintendo to join, and instituted review. In evaluating the basis for
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`the grant of the joinder, the Board found that:
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`a.
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`Nintendo’s Request was timely filed to satisfy the requirement that
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`the request for joinder be filed no later than one month after the institution
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`date of the current proceeding (See 37 C.F.R. § 42.122(b));
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`b.
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`The Board also noted that the new petition was essentially the same as
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`the prior petition in grounds, prior art, expert testimony, and arguments
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`presented, with the lone exception being Nintendo’s acceptance and
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`adoption of the Board’s claim constructions already made in the proceeding.
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`II. Statement of Material Facts
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`1.
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`The ‘482 Patent is presently being asserted in the patent infringement
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`lawsuit FastVDO LLC v. LG Electronics, Inc. et al., Case No. 2:15-cv-
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`000923 originally filed in June 2015, by the Patent Owner against the
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`Petitioner in the United States District Court for the Eastern District of
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`Texas, and transferred to the Southern District of California, Case No. 3:16-
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`cv-00386, by order of February 11, 2016 where it is now pending (37 C.F.R.
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`§ 42.8(b)(2)). On October 5, 2016 FastVDO LLC v. LG Electronics
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`Mobilecomm U.S.A., Inc, Case 3:16-cv-02499-H-WVG was filed.
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`2.
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` On December 16, 2016 the Board granted Apple’s petition for review
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`of the following claims for the following grounds: Claims 1–3, 5–14, 16, 17,
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`22–26, 28, and 29 of the ’482 patent as unpatentable under 35 U.S.C. § 103
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`over Kato; and Claims 1–3, 5–14, 16, 17, 22–26, 28, and 29 of the ’482
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`patent as unpatentable under 35 U.S.C. § 103 over Fiala, Fazel, and Fazel
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`4
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`’622.
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`3.
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` On December 16, 2016 the Board also granted the petition for review
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`of different claims on different grounds for the ‘482 patent in the related IPR
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`matter of Microsoft Corporation, Microsoft Mobile Inc., Samsung
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`Electronics America, Inc., and Samsung Electronics Co. Ltd., Petitioner, v.
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`FastVDO LLC, Patent Owner, Case IPR2016-01179.
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`4.
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`On January 10, 2017 LGE requested from the Court to stay the
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`pending US Court litigation FastVDO v. LG Electronics et al. case, based on
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`the December 16, 2016 grants of these two IPRs challenging the ‘482 patent.
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`5.
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`Concurrently with this Request for Joinder, LGE is filing a Petition
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`challenging all claims of the ‘482 Patent on the same grounds on which trial
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`was instituted in the ‘1203 IPR, relying on the same legal theories and
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`evidence.
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`III. Statement of Reasons for Requested Relief
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`A. Legal Standard
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`The Leahy-Smith America Invents Act (AIA) permits joinder of like review
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`proceedings, e.g. an inter partes review may be joined with another inter partes
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`review. 37 C.F.R. § 42.122(a). The Board has discretion to join parties to an
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`existing inter partes review. 35 U.S.C. § 315(c). In deciding whether to exercise its
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`discretion, the Board considers factors including: (1) the movant’s reasons why
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`joinder is appropriate; (2) whether the new petition presents any new grounds of
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`unpatentability; (3) what impact (if any) joinder would have on the trial schedule
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`for the existing review; and (4) how briefing and discovery may be simplified.
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`Dell Inc. v. Network-1 Security Solutions, Inc., IPR2013-00385, Paper No. 17 at 4
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`(July 29, 2013).
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`B. LGE’s Request for Joinder is Timely
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`The instant Petition and this Request for Joinder are timely under 35 U.S.C.
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`§ 315(c) and 37 C.F.R. § 42.122(b). While, as a general proposition, a petition for
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`inter partes review may not be filed more than one year after the date on which a
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`petitioner is served with a complaint alleging infringement of the patent-at-issue
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`(35 U.S.C. § 315(b)), the one year period does not apply when a petition for inter
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`partes review is accompanied by a Request for joinder filed within one month of
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`institution of the inter partes review for which joinder is requested. Id.; 37 C.F.R.
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`§ 42.122(b). This Request for Joinder and the accompanying Petition are timely,
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`as they are submitted within one month of the institution of trial in the ‘1203 IPR
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`on December 16, 2016.
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`C. Joinder is Appropriate
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`The PTAB has previously stated that it is “mindful of a policy preference for
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`joining a party that does not present new issues that might complicate or delay an
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`6
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`existing proceeding.” Enzymotec Ltd. v. Neptune Techs & Bioresources, Inc.,
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`IPR2014-00556, Paper No. 19 at 6 (July 9, 2014) (citing 157 CONG. REC. S1376
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`(daily ed. Mar. 8, 2011) (statement of Sen. Kyl) (“The Office anticipates that
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`joinder will be allowed as of right – if an inter partes review is instituted on the
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`basis of a petition, for example, a party that files an identical petition will be joined
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`to that proceeding, and thus allowed to file its own briefs and make its own
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`arguments.”). LGE’s Petition challenges the same patent claim on the same ground
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`on which trial in the ‘1203 IPR was instituted, and relies on the same legal theories
`and expert declaration relied on by the ‘1203 IPR petitioners. In support of its
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`Petition LGE has submitted the same Declaration of Dr. Andrew Lippmann,
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`previously submitted in support of the ‘1203 IPR petition, and relies on those
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`portions of the Lippmann Declaration that support inter partes review.
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`LGE is in communication with counsel for Apple, the ‘1203 IPR petitioner,
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`who we understand will not oppose this Request for Joinder, and LGE will abide
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`by the schedule of the parties, Apple and FastVDO, which are agreed to on all
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`briefing and discovery. No new claims and no new grounds will be added to the
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`proceedings as a result of the Board allowing joinder. Since it is redundant, it is
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`believed that the Patent Owner should not need or even exercise any meaningful
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`time commitment to prepare a Preliminary Patent Owner Response, if it chooses to
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`file one. Because LGE’s Petition is drafted solely to address the claims and
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`7
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`grounds upon which the ‘1203 IPR trial has been instituted, joinder will result in
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`no substantial additional cost to any party.
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`Joinder will not alter the trial schedule currently in place in the ‘1203 IPR
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`because both LGE and the existing ‘1203 IPR petitioner will address the same
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`prior art using the same expert, resulting in no additional expert discovery.
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`Moreover, LGE has agreed to adhere to all applicable deadlines set forth in the
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`‘1203 IPR Scheduling Order and will coordinate with counsel for the ‘1203 IPR
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`petitioner to consolidate filings. Unless and until the ‘1203 petitioner settles with
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`the patent owner, LGE would:
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`a.
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`b.
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`Take an understudy role;
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`Not submit any separate filings unless after consultation with Apple
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`LGE needs to preserve a position for the record, in which case LGE would
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`limit any additional filing to five (5) pages or less;
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`c.
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`Accept the claim constructions;
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`d. Make no challenges to any additional claims; and
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`e.
`Raise no new grounds of unpatentability.
`Joinder should not unduly affect the Board’s ability to complete its review
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`and issue its final determination within the statutory time limits under 35 U.S.C. §
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`316(a)(11) and 37 C.F.R. § 42.100(c). Therefore, joinder will have no adverse
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`impact on the ‘1203 IPR Scheduling Order and the timing of the Board’s
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`8
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`determinations. LGE is filing this petition and joinder Request to ensure that the
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`trial is completed in the event that the current petitioners in the ‘1203 IPR reach
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`settlement with the Patent Owner. Given that the Patent Owner has settled with
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`other defendants, this is a significant concern. LGE would be prejudiced if the
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`Board denies the Request for joinder because LGE’s interests may not be
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`adequately represented in the ‘1203 IPR, in the event that Apple reaches a
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`settlement and successfully moves to terminate the proceedings prior to the
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`issuance of a final determination.
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`IV. Conclusion
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`For the foregoing reasons, LGE respectfully requests that the Board institute
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`its Petition for Inter Partes Review of the ‘482 patent and permit joinder in the
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`‘1203 proceeding.
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`Dated: January 13, 2017
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` Respectfully submitted,
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`/David N. Makous, Esq./
`David N. Makous
`Reg. No. 29,559
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`9
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`Certificate of Service (37 C.F.R. § 42.6(e)(4))
`I hereby certify that the attached PETITIONER’S REQUEST FOR
`JOINDER WITH IPR2016-01203 UNDER 35 U.S.C. 315(c) AND 37 C.F.R. §§
`42.22 AND 42.122(b) and supporting materials were served as of the below date
`by U.S. Express Mail, on the Patent Owner, FastVDO LLC at the correspondence
`address indicated for U.S. Patent No. 5,850,482:
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`Guy R Gosnell, Esq. Bell Seltzer Park and Gibson Post Office Drawer
`34009 Charlotte, NC 28234
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` I
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` further certify that the attached PETITIONER’S REQUEST FOR
`JOINDER WITH IPR2016-01203 UNDER 35 U.S.C. 315(c) AND 37 C.F.R. §§
`42.22 AND 42.122(b) and supporting materials were also served as of the below
`date by email upon present counsel in IPR 2016-01203 and FastVDO LLC v. LG
`Electronics, Inc. et al., Case No. 3:16-cv-00386 (S.D. Cal.):
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`- Counsel for FastVDO LLC in IPR 2016-01203: Wayne M. Helge, Walter
`D. Davis, Davidson, Berquist, Jackson & Gowdrey, LLP,
`whelge@dbjg.com, wdavis@dbjg.com
`- Counsel for Apple in IPR 2016-01203: David L. Fehrman, Martin M.
`Noonen, MORRISON & FOERSTER, LLP, dfehrman@mofo.com,
`moonnen@mofo.com
`- Counsel of record for Patent Owner FastVDO LLC in the pending case of
`FastVDO LLC v. LG Electronics Inc. et al., by email on Marc A. Fenster,
`Esq. (mfenster@raklaw.com) Reza Mirzaie, Esq. (rmirzaie@raklaw.com)
`Jeffrey Z.Y. Liao, Esq. (jliao@raklaw.com) Christian W. Conkle, Esq.
`(cconkle@raklaw.com) Russ August & Kabat 12424 Wilshire Boulevard,
`12th Floor Los Angeles, California 90025
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`Dated: January 13, 2017
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`By
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`//David N. Makous//
`David N. Makous
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