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`UNITED STATES PATENT AND TRADEMARK OFFICE
`_______________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_____________
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`WATSON LABORATORIES, INC.
`Petitioner
`
`v.
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`UNITED THERAPEUTICS CORP.
`Patent Owner
`
`
`
`Patent No. 9,358,240
`Issue Date: June 7, 2016
`Patent No. 9,339,507
`Issue Date: May 17, 2016
`
`Title: TREPROSTINIL ADMINISTRATION BY INHALATION
`_______________
`
`Inter Partes Review No. 2017-01621
`Inter Partes Review No. 2017-01622
`____________________________________________________________
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`JOINT MOTION TO TERMINATE PROCEEDINGS
`PURSUANT TO 35 U.S.C. § 3171
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`
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`1 A word-for-word identical document is being filed in IPR2017-01621 and
`IPR2017-1622.
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`4812-6462-9872.1
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`
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`IPR2017-01621
`IPR2017-01622
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`Joint Motion to Terminate
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`As authorized in the Patent Trial and Appeal Board’s email dated August 14,
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`2018 and pursuant to 35 U.S.C. § 317(a) and 37 C.F.R. §§ 42.72 and 42.74, Patent
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`Owner and Petitioner jointly and respectfully request that the inter partes reviews
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`(IPR2017-01621 & IPR2017-01622) of U.S. Patent No. 9,358,240 (“the ’240
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`patent”) and U.S. Patent No. 9,339,507 (“the ’507 patent”) be terminated.
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`I.
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`Statement of Relief Requested
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`Pursuant to 35 U.S.C. § 317, 37 C.F.R. § 42.72, and 37 C.F.R. § 42.74, and
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`pursuant to the authorization to file this motion provided by the Board’s email to
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`the parties on August 14, 2018, Petitioner Watson Laboratories, Inc. and Patent
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`Owner United Therapeutics Corp. (collectively, the “Parties”) jointly request the
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`termination of the inter partes reviews of the ’240 patent and the ’507 patent in
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`their entirety as a result of settlement between the Parties.
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`The Parties have settled their dispute and executed a settlement agreement to
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`terminate these inter partes reviews. The Parties’ settlement agreement has been
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`made in writing, and a true and correct copy is being filed concurrently herewith as
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`Exhibit 2212 (“Settlement Agreement”). The Parties are also filing concurrently
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`herewith a joint request to treat the settlement agreement as business confidential
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`information and keep it separate from the files of the inter partes reviews and the
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`involved patents pursuant to 35 U.S.C. § 317(b) and 37 C.F.R. § 42.74(b) and (c).
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`4812-6462-9872.1
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`2
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`
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`IPR2017-01621
`IPR2017-01622
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`II.
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`
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`Joint Motion to Terminate
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`Statement of Facts
`Petitioner filed petitions requesting inter partes reviews of the ’240 patent
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`and the ’507 patent on June 21, 2017. On January 11, 2018, the Board instituted
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`review on claims 1-9 of the ’240 and claims 1-9 of the ’507 patent – in each case,
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`on a single ground. Patent Owner submitted its responses based on these
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`institution decisions on April 27, 2018. On April 30, 2018, the Board instituted
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`review on the remaining grounds in both proceedings. Patent Owner submitted
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`supplementary responses in both proceedings on July 11, 2018. On August 8,
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`2018, the Parties entered into a settlement agreement in which they agreed to
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`terminate these inter partes reviews. See Ex. 2212. Petitioner has not replied to
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`Patent Owner’s Responses, nor has Petitioner deposed Patent Owner’s Declarants.
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`The Board has not yet decided the merits of these pending proceedings.
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`III. Argument
`35 U.S.C. § 317(a) provides: “An inter partes review instituted under this
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`chapter shall be terminated with respect to any petitioner upon the joint request of
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`the petitioner and the patent owner, unless the Office has decided the merits of the
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`proceeding before the request for termination is filed.” 35 U.S.C. § 317(a).
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`Similarly, 37 C.F.R. § 42.72 provides that “[t]he Board may terminate a trial
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`without rendering a final written decision, where appropriate, including where the
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`4812-6462-9872.1
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`3
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`
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`IPR2017-01621
`IPR2017-01622
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`trial is consolidated with another proceeding or pursuant to a joint request under 35
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`Joint Motion to Terminate
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`
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`U.S.C. 317(a).”
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`The Trial Practice Guide additionally counsels that “[t]here are strong public
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`policy reasons to favor settlement between the parties to proceeding” and that the
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`Board “expects that a proceeding will terminate after the filing of a settlement
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`agreement, unless the Board has already decided the merits of the proceeding. 35
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`U.S.C. 317(a), as amended, and 35 U.S.C. 327.” Office Patent Trial Practice
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`Guide, 77 Fed. Reg. 48,756, 48,768 (Aug. 14, 2012).
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`As noted in the Statement of Facts, oral argument has not yet occurred, nor
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`has Petitioner replied to the Patent Owner’s Responses or deposed Patent Owner’s
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`Declarants. Thus, the Board has not yet “decided the merits of the proceeding
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`before the request for termination is filed.” 35 U.S.C. § 317(a); 77 Fed. Reg. at
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`48,768 (“The Board expects that a proceeding will terminate after the filing of a
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`settlement agreement, unless the Board has already decided the merits of the
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`proceeding.”). Furthermore, Petitioner will not participate in further proceedings
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`should the inter partes reviews not be terminated. The Parties are unaware of any
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`other matter before the Board that would be affected by the outcome of this
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`proceeding.
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`As required by the Settlement Agreement, the Parties are dismissing all
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`other proceedings related to the challenged patents, i.e. United Therapeutics Corp.
`4
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`4812-6462-9872.1
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`
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`IPR2017-01621
`IPR2017-01622
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`v. Watson Laboratories, Inc., Civil Action No. 3:15cv-05723-PGS-LHG. Thus, no
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`Joint Motion to Terminate
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`
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`dispute remains between the Parties involving the ’240 patent and the ’507 patent.
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`Further, because the Board has yet to conduct an oral hearing and issue a
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`decision on the merits, termination of the entire proceeding would save the Board
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`significant administrative resources and limit unnecessary and counterproductive
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`litigation costs. Termination would also further AIA’s purpose of providing an
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`efficient and less costly alternative forum for patent disputes and its
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`encouragement for settlement.
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`Accordingly, the Parties respectfully request that the Board terminate the
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`inter partes reviews of the ’240 patent and the ’507 patent.
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`Dated: August 21, 2018
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`/Michael K. Nutter/
`
`Michael K. Nutter
`Registration No. 44,979
`
`Kurt A. Mathas
`
`WINSTON & STRAWN LLP
`35 W. Wacker Dr.
`Chicago, IL 60601
`
`Andrew R. Sommer
`Registration No. 53,932
`
`WINSTON & STRAWN LLP
`1700 K Street, N.W.
`Washington, DC 20006-3817
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`Respectfully submitted,
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`/Stephen B. Maebius/
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`Stephen B. Maebius
`Registration No. 35,264
`
`George E. Quillin
`Registration No. 32,792
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`Foley & Lardner LLP
`3000 K Street, N.W.
`Suite 600
`Washington, D.C. 20007
`
`Shaun R. Snader
`Registration No. 59,987
`
`United Therapeutics Corporation
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`4812-6462-9872.1
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`5
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`IPR2017-01621
`IPR2017-01622
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`Counsel for Petitioner
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`
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`Joint Motion to Terminate
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`1735 Connecticut Avenue, N.W.
`Second Floor
`Washington, DC 20009
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`Counsel for Patent Owner
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`4812-6462-9872.1
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`6
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`CERTIFICATE OF SERVICE
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`The undersigned certifies that a copy of the foregoing Joint Motion to
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`Terminate and accompanying Exhibit 2212 are being served on August 21, 2018,
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`by filing them through the PTAB E2E System as well as delivering copies via
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`email to the following counsel for the Petitioner:
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`Michael K. Nutter (Reg. No. 44,979)
`WINSTON & STRAWN LLP
`35 W. Wacker Dr.
`Chicago, IL 60601
`Email: mnutter@winston.com
`
`Andrew R. Sommer (Reg. No. 53,932)
`WINSTON & STRAWN LLP
`1700 K Street, N.W.
`Washington, DC 20006-3817
`Email: asommer@winston.com
`
`Kurt A. Mathas
`WINSTON & STRAWN LLP
`35 W. Wacker Dr.
`Chicago, IL 60601
`Email: kmathas@winston.com
`
`
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`4812-6462-9872.1
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`/Stephen B. Maebius/
`Stephen B. Maebius
`Registration No. 35,264
`
`George E. Quillin
`Registration No. 32,792
`
`Shaun R. Snader
`Registration No. 59,987
`
`Counsel for Patent Owner
`
`