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`________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`________________
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`FRIENDFINDER NETWORKS INC., STREAMRAY INC., WMM, LLC,
`WMM HOLDINGS, LLC, AND MULTI MEDIA, LLC
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`Petitioners
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`v.
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`WAG ACQUISITION, LLC
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`Patent Owner
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`________________
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`Case IPR2017-00786
`Patent No. 8,122,141
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`Issue Date: February 21, 2012
`
`Title: STREAMING MEDIA BUFFERING SYSTEM
`________________
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`REPLY IN SUPPORT OF MOTION FOR JOINDER
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`
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`U.S. Patent No. 8,122,141; Case IPR2017-00786
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`I.
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`INTRODUCTION
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`Patent Owner’s sole argument against institution of Trial involving U.S.
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`Patent No. 8,122,141 (the “‘141 Patent”) and joinder of it with IPR2016-01238
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`(“the WebPower IPR”) is that the present Petition is a “second bite at the apple.”
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`Paper 8 at 1. This is incorrect because the Petition is not based on the prior IPR
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`(IPR2015-01037) given the main prior art references relied on here (Chen and
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`Carmel) are different than in the prior IPR (Hollfelder and Su). Put another way,
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`Petitioners copied verbatim the challenges presented in the WebPower IPR.
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`Patent Owner did not file a Preliminary Response for the present Petition.
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`Thus, Trial should be instituted at least for the same reasons as in the WebPower
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`IPR because the Petition is based on the same grounds and combinations of prior
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`art that the Board considered in deciding to institute the WebPower IPR. Paper 3
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`at 8-9.
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`The only issue before the Board then is whether to grant joinder, which is
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`evaluated under four factors. Id. at 8-9. In opposition, Patent Owner did not
`address any of the factors and Petitioners’ arguments. Id. at 7-12. Thus, it is
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`undisputed that no new substantive issues are introduced, and the present
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`proceeding will not impact the trial schedule. Id. at 9-10. Nor does Patent Owner
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`contest that joinder will promote efficiency. For example, it is more efficient now
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`for the Board to grant joinder and avoid parallel review at the district court given
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`the estoppel effect and the almost complete overlap of instituted and asserted
`claims. Id. at 8-9.
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`Accordingly, Trial should be instituted and joined with the WebPower IPR.
`1
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`U.S. Patent No. 8,122,141; Case IPR2017-00786
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`II.
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`JOINDER IS FAVORED, APPROPRIATE, AND EFFICIENT
`Patent Owner does not refute any of the four factors (also known as the Dell
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`factors) outlined by Petitioners in favor of joinder. Paper 3 at 8-9. This includes
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`that the present Petition does not introduce any new substantive issues as compared
`to the WebPower IPR. Id. at 9-10. Under these circumstances, the Board is
`“mindful of a policy preference for joining a party that does not present new
`issues.” Enzymotec Ltd. v. Neptune Techs & Bioresources, Inc. IPR2014-00556,
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`Paper 19 at 6 (July 9, 2014) (emphasis added). Joinder will also have no impact on
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`the trial schedule and briefing as well as discovery will be simplified. Paper 3 at
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`10. Patent Owner concedes this by failing to respond.
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`Efficiency further weighs heavily in favor of granting joinder. In the district
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`court actions, WAG has asserted against Petitioners claims 10, 14, 15, 17, 18, 19,
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`20, 21, and 24 of the ’141 Patent, while in the WebPower IPR the Board has
`instituted on claims 10-23 of the ’141 Patent. Id. at 8-9. Thus, it is more efficient
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`for Petitioners and Patent Owner to hash this out now at the Board than burden the
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`district court given Petitioners will be estopped at the district court on the grounds
`decided in the Final Written Decision in the WebPower IPR. Baker Hughes Inc. v.
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`Packers Plus Energy Servs, IPR2016-01506, Paper No. 19 at 10-11 (Feb. 9, 2017)
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`(“we seek to achieve finality of review at the Board and avoid parallel or serial
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`review at the district court”).
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`III. THE PETITION IS NOT A SECOND BITE
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`A “second bite at the apple” is when the petitioner uses a previous institution
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`decision as a “as a guide to remedy deficiencies in the earlier filed petition.”
`2
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`U.S. Patent No. 8,122,141; Case IPR2017-00786
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`Samsung Elec. Co., Ltd. V. Affinity Labs of Texas, LLC, IPR2015-00820, Paper 12
`at 4; see also LG Elecs. Inc. v. ATI Techs., IPR2015-01620, Paper 10 at 8. This is
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`not the case here. Petitioners did not use the prior institution decision to craft new
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`arguments – the arguments were crafted by WebPower. Nor could Petitioners have
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`the arguments (and supporting expert declaration) used in the WebPower IPR as
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`they did not exist until the WebPower IPR was filed.
`Oracle Corp. v. Crossroads Sys, Inc. IPR2015-00854, Paper No. 14 (Sept.
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`15, 2015) is instructive. There, the patent owner argued that Oracle was
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`attempting to address deficiencies in its earlier petition, and that the petition was
`“nothing more than a second bite at the apple .” Id. at 3. This is the identical
`argument that Patent Owner is making here (see Paper 8 at 4), and it was squarely
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`rejected by four judges. The Board held that Oracle “did not base the Petition on
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`the . . . [prior] IPR Petition, nor did it tailor the present Petition specifically to
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`address issues raised in the institution decision in that earlier case. Rather, it copied
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`verbatim the challenges presented in the . . . [instituted] IPR Petition[.]” Id. at 4.
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`The same is true here. Petitioners did not base the Petition on the prior
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`petition in IPR2015-01037 and did not tailor the Petition to address issues raised in
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`IPR2015-01037 because completely different primary references are relied on here
`(Chen and Carmel) as compared to the prior IPR (Hollfelder and Su). Compare
`IPR2017-00786, Paper 2, 5-6 with IPR2015-01037, Paper 2, at 3-4; Baker Hughes
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`Inc. v. Packers Plus Energy Servs, IPR2016-01506, Paper No. 19 at 8-9 n.6. (Feb.
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`9, 2017) (no “second bite at the apple” where “primary references are different”);
`Oxford Nanopore Techs. Ltd. v. Univ. of Washington, IPR2015-00057, Paper 10 at
`3
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`U.S. Patent No. 8,122,141; Case IPR2017-00786
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`20-21 (Apr. 27, 2015) (granting joinder over “second bite at the apple” argument
`because different prior art); Weatherford v. Packers Plus Energy Servs, Inc.,
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`IPR2016-01514, Paper No. 23 at 16-17 n.4 (Feb. 22, 2017) (no “multiple bites at
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`the invalidity apple” when only one reference different from the prior petition).
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`Rather, Petitioners substantively copied the petition drafted by WebPower.
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`Additionally, the Board in IPR2015-01037 found that Su was not established
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`to be prior art and did not reach the merits for any of the challenged claims but
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`one. IPR2015-01037, Paper 8 at 12. As such, the present Petition cannot be
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`considered a “second bite at the apple.” See e.g., CBM2014-00180, Paper 14 at 13
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`(“[W]e would not exercise our discretion to deny the Petition, given that the Board
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`did not reach the merits of the unpatentability arguments[.]”) (Jefferson, T.).
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`The cases cited by Patent Owner are not relevant to the question before the
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`Board. In two of those cases, joinder was denied because the earlier proceeding
`was no longer pending, in other words there could be no joinder. See IPR2016-
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`00414, Paper 16 at 5; IPR2015-00262, Paper 10 at 5. The remaining cases were
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`same party joinder issues in which the same party that filed the first petition sought
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`joinder of their second petition; the petitions sought to add grounds of patentability
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`and did not present substantively identical issues – none of which are present here.
`See IPR2015-01620, Paper 10 at 2, 9; IPR2015-00820, Paper 12 at 2; IPR2014-
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`00950, Paper 12 at 1, 2, 4-5; IPR2015-00760, Paper 14 at 3, 8. Even one case
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`cited by Patent Owner when the second petition presented identical issues and
`sought to join a proceeding brought by another party, joinder was granted. See
`Par Pharm. V. Novartis AG, IPR2016-01059, Paper 19 at 14.
`4
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`U.S. Patent No. 8,122,141; Case IPR2017-00786
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`IV. PETITIONERS WILL BE PREJUDICED WITHOUT JOINDER
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`A denial of joinder will prejudice Petitioners. Petitioners’ interests may not
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`be adequately protected in the WebPower IPR if WebPower settles with the Patent
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`Owner. Petitioners should be allowed to join in a proceeding affecting a patent
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`asserted against each of them in three separate district court litigations. Petitioners
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`otherwise would be forced to litigate the same prior art on the same claims in the
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`district court when those issues could be resolved in the first instance at the Board.
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`Granting joinder, on the other hand, will not unduly burden the Patent
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`Owner or Board; it will streamline the issues between the parties by ensuring that
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`IPR2016-01238 will reach a Final Decision; and it will estop Petitioners from
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`asserting those issues resolved in the Final Written Decision in the district court.
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`In sum, because joinder will not add any new substantive issues, not affect
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`the trial schedule, not burden Patent Owner, and improve efficiency, joinder is
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`appropriate.
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`Accordingly, Petitioners respectfully request joinder be granted.
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`Dated: February 27, 2017
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`Respectfully submitted,
`By: /Frank M. Gasparo/
`Frank M. Gasparo
`Registration No. 44,700
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`5
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`U.S. Patent No. 8,122,141; Case IPR2017-00786
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`CERTIFICATE OF SERVICE
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`I hereby certify that on February 27, 2017, I caused a true and correct copy
`of the foregoing materials:
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`• Reply in Support of Motion for Joinder
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`to be served via:
`
`Via Email
`
`Ernest D. Buff & Associates, LLC
`ebuff@edbuff.com
`231 Somerville Road
`Bedminster, NJ 07921
`
`Ronald Abramson
`ronald.abramson@lewisbaach.com
`Lewis Baach PLLC
`The Chrysler Building
`405 Lexington Avenue, 62nd Floor
`New York, NY 10174
`
`By: /Frank M. Gasparo/
`Frank M. Gasparo
`Registration No. 44,700
`Venable LLP
`Rockefeller Center
`1270 Avenue of the Americas
`Twenty-Fourth Floor
`New York, NY 10020
`
`6
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`