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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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`DYNACRAFT BSC, INC.,
`Petitioner,
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`v.
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`MATTEL, INC.,
`Patent Owner.
`
`
`Case IPR2018-00040
`Patent 7,487,850
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`JOINT MOTION FOR TERMINATION
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`
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`Petitioner Dynacraft BCS, Inc. (“Petitioner”) and Patent Owner Mattel, Inc.
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`(“Patent Owner”) jointly request termination of IPR2018-00040 (“IPR ’40”)
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`directed to U.S. Patent No. 7,487,850 (“the ’850 patent”) under 35 U.S.C. § 317(a)
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`and 37 C.F.R. § 42.72.
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`On October 9, 2017, Petitioner filed four petitions for inter partes review of
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`U.S. Patent No. 7,222,684 (“the ’684 patent”) (IPR2018-00038 (“IPR ’38”)), U.S.
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`Patent No. 7,950,978 (“the ’978 patent”) (IPR2018-00039 (“IPR ’39”)), the ’850
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`patent (IPR ’40), and U.S. Patent No. 7,621,543 (“the ’543 patent”) (IPR2018-
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`00042 (“IPR ’42”)). On April 17, the Board instituted inter partes review in IPRs
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`’38, ’39, and ’40 and denied institution in IPR ’42. No final written decision on
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`the merits has been entered in IPRs ’38, ’39, and ’40. The Parties have settled all
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`of their disputes relating to the ’684, ’978, ’850, and ’543 patents and reached an
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`agreement to terminate IPRs ’38, ’39, and ’40.
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`The Parties’ settlement agreement has been made in writing, and a true copy
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`of it is being filed concurrently as Exhibit 1008. No other agreements, written or
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`oral, exist between or among the Parties. The Parties jointly request that the
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`settlement agreement be treated as business confidential information under 37
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`C.F.R. § 42.74(c) and be kept separate from the files of the above captioned inter
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`partes review proceeding under 35 U.S.C. § 317(b) and 37 C.F.R § 42.74(c). In
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`
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`view of that request, the settlement agreement has been filed for access by the
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`“Parties and Board Only.”
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`As stated in 35 U.S.C. § 317(a), because Petitioner and Patent Owner jointly
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`request termination with respect to Petitioner, no estoppel under 35 U.S.C.
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`§ 315(e) shall attach to Petitioner. As stated in 37 C.F.R. § 42.73(d)(3), because no
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`adverse judgment has been entered as to Patent Owner, no estoppel shall attach to
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`Patent Owner.
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`I.
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`Reasons Why Termination Is Appropriate
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`Termination is proper under 35 U.S.C. § 317(a) because the Parties are
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`jointly requesting termination and the Office has not yet “decided on the merits of
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`the proceeding before the request for termination is filed.” Here, no decision on
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`the merits has been made. Accordingly, the Parties are entitled to terminate this
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`proceeding under § 317(a) upon their joint request.
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`Concluding these proceedings at this early juncture as to all Parties promotes
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`the Congressional goal of establishing a more efficient and streamlined patent
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`system that limits unnecessary and counterproductive litigation costs. Permitting
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`termination upon settlement provides increased certainty as to the outcome of these
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`proceedings and helps promote settlement and create a timely, cost-effective
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`alternative to litigation. See, “Changes to Implement Inter Partes Review
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`Proceedings, Post-Grant Review Proceedings, and Transitional Program for
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`2
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`
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`Covered Business Method Patents,” Final Rule, 77 Fed. Reg., no. 157, p. 48680
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`(Tuesday, August 14, 2012).
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`II.
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` Related District Court Litigation and Status
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`The ’684, ’978, ’850, and ’543 patents are the subject of concurrent
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`litigation captioned Fisher-Price, Inc. v. Dynacraft BSC, Inc., Case No. 4:17-cv-
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`03745-PJH in United States District Court for the Northern District of California
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`(“the Litigation”). The Litigation has been settled by the Parties and has been
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`dismissed with prejudice according to the terms of the settlement agreement.
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`Respectfully submitted,
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`/ 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
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`Attorneys for Petitioner
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`Dated: July 30, 2018
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`/ 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
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`Attorney for Patent Owner
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`3
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`Certificate of Service
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`Pursuant to 37 C.F.R. § 42.6, I hereby certify that a copy of the foregoing
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`document was served by electronic mail upon the following:
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`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
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`Attorney for Mattel, Inc.
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`Dated: July 30, 2018
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`/ Larry L. Saret /
`Larry L. Saret, Reg. No. 27,674
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