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Paper 12
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`
`DYNACRAFT BSC, INC.,
`Petitioner,
`
`v.
`
`MATTEL, INC.,
`Patent Owner.
`
`
`Case IPR2018-00040
`Patent 7,487,850
`
`
`JOINT MOTION FOR TERMINATION
`
`

`

`Petitioner Dynacraft BCS, Inc. (“Petitioner”) and Patent Owner Mattel, Inc.
`
`(“Patent Owner”) jointly request termination of IPR2018-00040 (“IPR ’40”)
`
`directed to U.S. Patent No. 7,487,850 (“the ’850 patent”) under 35 U.S.C. § 317(a)
`
`and 37 C.F.R. § 42.72.
`
`On October 9, 2017, Petitioner filed four petitions for inter partes review of
`
`U.S. Patent No. 7,222,684 (“the ’684 patent”) (IPR2018-00038 (“IPR ’38”)), U.S.
`
`Patent No. 7,950,978 (“the ’978 patent”) (IPR2018-00039 (“IPR ’39”)), the ’850
`
`patent (IPR ’40), and U.S. Patent No. 7,621,543 (“the ’543 patent”) (IPR2018-
`
`00042 (“IPR ’42”)). On April 17, the Board instituted inter partes review in IPRs
`
`’38, ’39, and ’40 and denied institution in IPR ’42. No final written decision on
`
`the merits has been entered in IPRs ’38, ’39, and ’40. The Parties have settled all
`
`of their disputes relating to the ’684, ’978, ’850, and ’543 patents and reached an
`
`agreement to terminate IPRs ’38, ’39, and ’40.
`
`The Parties’ settlement agreement has been made in writing, and a true copy
`
`of it is being filed concurrently as Exhibit 1008. No other agreements, written or
`
`oral, exist between or among the Parties. The Parties jointly request that the
`
`settlement agreement be treated as business confidential information under 37
`
`C.F.R. § 42.74(c) and be kept separate from the files of the above captioned inter
`
`partes review proceeding under 35 U.S.C. § 317(b) and 37 C.F.R § 42.74(c). In
`
`

`

`view of that request, the settlement agreement has been filed for access by the
`
`“Parties and Board Only.”
`
`As stated in 35 U.S.C. § 317(a), because Petitioner and Patent Owner jointly
`
`request termination with respect to Petitioner, no estoppel under 35 U.S.C.
`
`§ 315(e) shall attach to Petitioner. As stated in 37 C.F.R. § 42.73(d)(3), because no
`
`adverse judgment has been entered as to Patent Owner, no estoppel shall attach to
`
`Patent Owner.
`
`
`I.
`
`Reasons Why Termination Is Appropriate
`
`Termination is proper under 35 U.S.C. § 317(a) because the Parties are
`
`jointly requesting termination and the Office has not yet “decided on the merits of
`
`the proceeding before the request for termination is filed.” Here, no decision on
`
`the merits has been made. Accordingly, the Parties are entitled to terminate this
`
`proceeding under § 317(a) upon their joint request.
`
`Concluding these proceedings at this early juncture as to all Parties promotes
`
`the Congressional goal of establishing a more efficient and streamlined patent
`
`system that limits unnecessary and counterproductive litigation costs. Permitting
`
`termination upon settlement provides increased certainty as to the outcome of these
`
`proceedings and helps promote settlement and create a timely, cost-effective
`
`alternative to litigation. See, “Changes to Implement Inter Partes Review
`
`Proceedings, Post-Grant Review Proceedings, and Transitional Program for
`
`2
`
`

`

`Covered Business Method Patents,” Final Rule, 77 Fed. Reg., no. 157, p. 48680
`
`(Tuesday, August 14, 2012).
`
`II.
`
` Related District Court Litigation and Status
`
`The ’684, ’978, ’850, and ’543 patents are the subject of concurrent
`
`litigation captioned Fisher-Price, Inc. v. Dynacraft BSC, Inc., Case No. 4:17-cv-
`
`03745-PJH in United States District Court for the Northern District of California
`
`(“the Litigation”). The Litigation has been settled by the Parties and has been
`
`dismissed with prejudice according to the terms of the settlement agreement.
`
`Respectfully submitted,
`
`/ Larry L. Saret/
`Larry L. Saret, Reg. No. 27,674
`Arthur Gollwitzer III
`MICHAEL BEST & FRIEDRICH LLP
`444 West Lake St., Suite 3200
`Chicago, Illinois 60606
`Tel: 312.222.0800
`Fax: 312.222.0818
`
`Attorneys for Petitioner
`
`Dated: July 30, 2018
`
`/ John R. Hutchins (with consent)/
`John R. Hutchins, Reg. No. 43,686
`BANNER & WITCOFF, LTD.
`1100 13th St, NW, Suite 1200
`Washington, DC 20005
`Tel: 202.824.3147
`Fax: 202.824.3001
`
`Attorney for Patent Owner
`
`3
`
`

`

`Certificate of Service
`
`Pursuant to 37 C.F.R. § 42.6, I hereby certify that a copy of the foregoing
`
`document was served by electronic mail upon the following:
`
`John R. Hutchins (Reg. No. 43,686)
`Lead Counsel for Patent Owner
`Banner & Witcoff, Ltd.
`1100 13th St, NW, Suite 1200
`Washington, DC 20005
`jhutchins@bannerwitcoff.com
`
`Attorney for Mattel, Inc.
`
`Dated: July 30, 2018
`
`/ Larry L. Saret /
`Larry L. Saret, Reg. No. 27,674
`
`4
`
`

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